BILL ANALYSIS
Bill No: AB
1949
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Dean Florez, Chair
2005-2006 Regular Session
Staff Analysis
AB 1949 Author: Jerome Horton
As Amended: June 19, 2006
Hearing Date: June 27, 2006
Consultant: Steve Hardy
SUBJECT
Horsemen's/women's Organizations
DESCRIPTION
1) AB 1949 would essentially, codify a negotiated
agreement between the Thoroughbred Owners of California
(TOC) and the California Thoroughbred Trainers (CTT) by
providing that the three owner-trainer representatives to
the TOC Board of Directors be appointed directly by both
groups as specified.
2) Extends described "sunset" provisions from January 1,
2008 until January 1, 2009.
PRIOR/RELATED LEGISLATION
AB 2619 (Strickland), Chapter 921, Statutes of 2002.
Allocated three positions on the board of directors of the
organization representing owners for persons holding
licenses as both owners and trainers, and for their spouses
who are licensed as owners, as specified, and makes related
and conforming changes.
AB 991 (Tucker), Chapter 62, Statutes of 1994. Provided
for separate owner and trainer organizations to represent
thoroughbred horsemen as specified.
EXISTING LAW
AB 1949 (Jerome Horton) continued
Page 2
1)Provides for the recognition of horsemen's organizations,
by the California Horse Racing Board (CHRB) including
organizations solely representing owners and
organizations solely representing trainers.
2) Provides that each organization, except for the
thoroughbred horsemen's and horsewomen' s organizations,
and except an organization that solely represents owners,
or solely represents trainers, shall provide for the
representation of owners and trainers on its board of
directors. Each thoroughbred horsemen's and horsewomen's
organization, except one that solely represents trainers,
shall provide for the representation of owners and
owner-trainers on its board.
3) Provides that the organization representing owners who
are also licensed as trainers, and their spouses who are
licensed as owners, shall comprise a class of
owner-trainers, which may elect 3 of its members to the
board of directors of the owner's organization, while all
other directors shall be owners and not owner-trainers.
4) Specifies that the board of the thoroughbred owners'
organization shall not exceed 15 members and all members
shall have equal standing. Existing law further provides
that the thoroughbred trainers' organization may appoint
3 persons who qualify as owner-trainers, to the board of
the thoroughbred owners' organization. Provides for the
provision to be repealed as of January 1, 2008.
5) Requires CHRB to annually review the budgets of
horsemen's organizations.
BACKGROUND
AB 2619 (Strickland), Chapter 921, Statutes of 2002,
allocated three positions on the board of directors of the
organization representing thoroughbred owners for persons
holding licenses as both owners and trainers, and for their
spouses who are licensed as owners, as specified.
AB 2619 resolved a long standing issue regarding the
eligibility of California Thoroughbred trainers, who are
also licensed as thoroughbred owners, and licensed owners
who are the spouse of a thoroughbred trainer, to serve on
the Board of Directors of the Thoroughbred Owners of
California (TOC). The California Thoroughbred Trainers
AB 1949 (Jerome Horton) continued
Page 3
Association (CTT) recognized that the thoroughbred owners
should have their own association, however a significant
number of trainers not only train racehorses but own a vast
majority of them as well.
The language contained in this bill was developed by the
two horsemen's organizations, as it provides that the Board
of Directors of the CTT and TOC shall appoint three (3)
mutually agreed upon individuals who qualify as members of
the class of owner-trainer to the board of directors of the
organization representing thoroughbred owners.
This bill further provides for an extension of the current
"sunset provision" by one year from January 1, 2008, until
January 1, 2009.
In 1994, AB 991 (Tucker, Ch. 62, Statutes of 1994) was
enacted which divided the horsemen organization into two
groups. The author of AB 991 believed that by having two
separate organizations, one representing owners, and the
other representing trainers, the respective interest of
both groups would be better served. An owner's
organization was formed under the name the Thoroughbred
Owners of California (TOC) and the trainers' organization
changed names from the California Horsemen's Benevolent
Protective Association, to the California Thoroughbred
Trainers (CTT). The TOC is generally responsible for
negotiating purse agreements, satellite simulcast
agreements, and other business agreements relating to the
conduct of racing that affects the racehorse owners. The
CTT is generally responsible for activities relating to the
backstretch and the welfare of backstretch employees and
administration of a Pension Fund.
SUPPORT: Thoroughbred Owners of California
California Thoroughbred Trainers
OPPOSE: None registered as of 6/23/06
FISCAL COMMITTEE: Senate Appropriations
**********
AB 1949 (Jerome Horton) continued
Page 4
SMH:bkh