BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1499
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                 AB 1499 (Evans) - As Introduced:  February 27, 2009 

          Policy Committee:                              Governmental  
          Organization Vote:                            16 - 0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill allows a fair to deduct an additional 0.5% of the  
          total amount handled in exotic pari-mutuel pools of races for  
          any breed, other than races solely for thoroughbreds, to defray  
          the costs of workers' compensation insurance costs for trainer  
          and owners.  This bill sunsets this provision on January 1,  
          2014.  In addition, this legislation contains an urgency. 

           FISCAL EFFECT  

          The money placed in this fund comes from the pari-mutuel handle,  
          proceeds that would be paid to the owners of winning horses and  
          successful bettors.  Therefore, there is no impact on the  
          funding levels for the California Horse Racing Board and the  
          Kenneth L. Maddy Equine Analytical Laboratory at the University  
          of California, Davis.

           COMMENTS  

           1)Purpose  . This bill is intended as clean-up to AB 2103  
            (Plescia; Chapter 443, Statutes of 2008) which extended the  
            sunset for the authority for horsemen to deduct 0.5% of the  
            total amount handled horseracing to help defray the costs of  
            providing workers compensation. The bill limited the sunset  
            extension to races involving thoroughbreds and did include not  
            the other breeds (mules, appaloosas, and Arabians) that race  
            on the northern California Summer Fair Circuit. This bill  
            would ensure that a portion of the handle from those races  
            continues to be included in the fund.

           2)Background  . In 2004, AB 701 (J. Horton; Chapter 40, Statutes  








                                                                  AB 1499
                                                                  Page  2

            of 2004) was enacted to provide the horse racing industry with  
            some workers' compensation relief through the redistribution  
            of 0.5% of the pari-mutuel handle on exotic wagers (exactas,  
            trifectas, pick six) for thoroughbred associations and live  
            racing fairs.

            The funds generated from AB 701 are used to defray the costs  
            of workers' compensation insurance incurred by those involved  
            in horse racing in the state. Supplemental premiums are paid  
            using the funds generated by the take-out from the handle in  
            order to reduce rates paid by trainers and owners of horses.  

            Since the passage of AB 701, the industry established the  
            California Horsemen's Safety Alliance (CHSA) to administer the  
            program that 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 that reduced the number of  
            accidents and the costs of resulting claims.


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081