BILL ANALYSIS
AB 1949
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1949 (Jerome Horton)
As Amended June 19, 2006
Majority vote
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|ASSEMBLY: |75-0 |(May 11, 2006) |SENATE: |37-0 |(August 10, |
| | | | | |2006) |
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Original Committee Reference: G.O.
SUMMARY : Codifies 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 by mutual agreement as specified and extends described
"sunset" provisions from January 1, 2007, until January 1, 2009.
Specifically, this bill :
1)Requires that the Board of Directors (Board) for CTT and TOC
to appoint three mutually agreed upon persons who qualify as
owner-trainers to the Board of TOC.
2)Extends "sunset" provisions in effect until January 1, 2009.
The Senate amendments :
1)Extend the "sunset" date from 2008 to 2009.
2)Make a clarifying change.
EXISTING LAW :
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. Each Thoroughbred
horsemen's and horsewomen's organization, except one that
AB 1949
Page 2
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 TOC, while all
other directors shall be owners and not owner-trainers.
4)Specifies that the Board of TOC shall not exceed 15 members
and all members shall have equal standing. Provides that the
CTT may appoint three persons who qualify as owner-trainers,
to the Board of TOC. Provides for the provision to be
repealed as of January 1, 2007.
5)Requires CHRB to annually review the budgets of horsemen's
organizations.
FISCAL EFFECT : None
AS PASSED BY THE ASSEMBLY , this bill required that the Board of
CTT and TOC to appoint three mutually agreed upon persons who
qualify as owner-trainers to the Board of TOC. Provides for
this provision to be repealed on January 1, 2008.
FISCAL EFFECT : None
COMMENTS :
Purpose of this bill: This bill extends the "sunset" on a
previous bill that was chaptered in 2002. 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 TOC.
The 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.
AB 1949
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The language contained in this bill, was developed by the two
horsemen's organizations, as it provides that the Board of CTT
and TOC shall appoint three mutually agreed upon individuals who
qualify as members of the class of owner-trainer to the Board of
TOC.
This bill further provides for an extension of the current
"sunset provision" by one year.
Background: 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, trainers,
the respective interest of both groups would be better served.
An owners organization was formed (TOC) and the trainers'
organization changed names from the California Horsemen's
Benevolent Protective Association to 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 legislation: AB 2619 (Strickland), Chapter 921, Statutes
of 2002, allocated three positions on the Board of TOC 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.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0015936