BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1949|
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CONSENT
Bill No: AB 1949
Author: Jerome Horton (D)
Amended: 6/19/06 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 9-0, 6/27/06
AYES: Florez, Denham, Battin, Chesbro, Margett,
McClintock, Romero, Soto, Vincent
ASSEMBLY FLOOR : 75-0, 5/11/06 - See last page for vote
SUBJECT : Horse racing
SOURCE : Author
DIGEST : This bill codifies a negotiated agreement
between the Thoroughbred Owners of California (TOC) and the
California Thoroughbred Trainers by providing that the
three owner-trainer representatives to the TOC Board of
Directors be appointed directly by both groups as specified
and extends described "sunset" provisions from January 1,
2008 until January 1, 2009.
ANALYSIS :
Existing law:
1.Provides for the recognition of horsemen's organizations,
by the California Horse Racing Board (CHRB) including
organizations solely representing owners and
CONTINUED
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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 three 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provision to be repealed as of January 1, 2008.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.
Comments
According to the Senate Governmental Organization Committee
analysis, AB 2619 (Strickland), Chapter 921, Statutes of
2002, 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
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
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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), Chapter 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 TOC and the
trainers' organization changed names from the California
Horsemen's Benevolent Protective Association, to the 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.
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
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Local: No
SUPPORT : (Verified 6/28/06)
Thoroughbred Owners of California
California Thoroughbred Trainers
ASSEMBLY FLOOR :
AYES: Aghazarian, Arambula, Baca, Bass, Berg, Bermudez,
Blakeslee, Bogh, Calderon, Canciamilla, Chan, Chavez,
Chu, Cogdill, Cohn, Coto, Daucher, De La Torre, DeVore,
Dymally, Emmerson, Evans, Frommer, Garcia, Hancock,
Harman, Haynes, Jerome Horton, Shirley Horton, Houston,
Huff, Jones, Karnette, Keene, Klehs, La Malfa, La Suer,
Laird, Leno, Levine, Lieber, Lieu, Liu, Matthews, Maze,
McCarthy, Montanez, Mountjoy, Mullin, Nakanishi, Nation,
Nava, Negrete McLeod, Niello, Oropeza, Parra, Pavley,
Plescia, Richman, Ridley-Thomas, Sharon Runner, Ruskin,
Salinas, Spitzer, Strickland, Torrico, Tran, Umberg,
Vargas, Villines, Walters, Wolk, Wyland, Yee, Nunez
NO VOTE RECORDED: Benoit, Goldberg, Koretz, Leslie,
Saldana
TSM:nl 6/28/06 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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