BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1499 (Evans)
Hearing Date: 6/29/2009 Amended: As Introduced
Consultant: Maureen Ortiz Policy Vote: GO 9-0
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BILL SUMMARY: AB 1499, an urgency measure, reauthorizes a
workers' compensation program for horse races other than
thoroughbred races until January 1, 2014.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
CHRB admin expenses --------------minor,
absorbable---------------- General
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STAFF COMMENTS:
AB 1499 reauthorizes a fair to deduct an additional 0.5% of the
total amount handled for non-thoroughbred races at fairs (mules,
appaloosas, quarter horses and Arabians) to defray workers'
compensation insurance costs for trainers and owners. The entire
costs of the workers' compensation program 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. 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 may be
used to reimburse racing associations for the actual cost of
health and safety programs, research or safety equipment, or for
making capital improvements that are designed to prevent
workplace accidents. The provisions of AB 701 contained a sunset
of January 1, 2009, and an authorization to extend the program
for non-thoroughbred races at fairs had not been enacted. AB
1499 will provide the continuation of the workers' compensation
program for these particular races.
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 has established
industry safety training programs, treatment oversight programs,
return to work programs, and safety equipment research programs
which have significantly reduced the number of accidents and the
costs of resulting claims.
AB 2103 (Plescia, Chapter 443, 2008) extended the sunset on the
workers' compensation program for thoroughbred races from
January 1, 2009 to January 1, 2014.