BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Tom Torlakson, Chairman

                                           2103 (Plescia)
          
          Hearing Date:  7/14/08          Amended: 4/23/08
          Consultant:  Maureen Ortiz      Policy Vote: G. O. 9-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:    AB 2103 extends the sunset from January 1, 2009  
          to January 1, 2014 on an existing workers' compensation program  
          for thoroughbred horse racing.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2008-09      2009-10       2010-11     Fund
                                                                  
          CHRB admin expenses                -----------minor,  
          absorbable------------           General
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 
          
          The organization formed to administer the program is required to  
          report annually to the California Horse Racing Board (CHRB) with  
          respect to the expenditure and distribution of funds, and will  
          also obtain an independent audit of fund generation and  
          distribution.  A copy of that audit will also be forwarded to  
          the CHRB for review.  According to CHRB, costs for reviewing  
          these reports are minor.  The actual program costs are industry  
          supported as they are all paid out of the handle which would  
          otherwise be distributed to owners and purses.

          AB 701 (J. Horton), Chapter 40 Statutes of 2004 established a  
          program whereby 0.5% of the pari-mutuel handle on exotic wagers  
          for thoroughbred associations and fairs was deducted and  
          deposited into a separate account used to defray the costs of  
          workers' compensation insurance.  Specifically, the funds are  
          used to supplement insurance premiums, and any funds not used in  
          any year may be carried forward to the subsequent year, or can  
          be used to reimburse racing associations for the actual cost of  
          health and safety programs, research or safety equipment, or  
          making capital improvements that are designed to prevent  
          workplace accidents.











          Since the passage of AB 701, the industry established the  
          California Horsemen's Safety Alliance (CHSA) to administer the  
          program which has been extremely successful and has reduced  
          workers' compensation costs by 70%.  CHSA established industry  
          safety training programs, treatment oversight programs, return  
          to work programs, and safety equipment research programs which  
          reduced the number of accidents and costs of resulting claims.

          AB 2103 will extend the workers' compensation program for an  
          additional five years.