BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1575
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          ASSEMBLY THIRD READING
          AB 1575 (Governmental Organization Committee)
          As Introduced  March 23, 2009
          Majority vote 

           GOVERNMENTAL ORGANIZATION   16-0APPROPRIATIONS      16-0        
           
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          |Ayes:|Price, Anderson, Chesbro, |Ayes:|De Leon, Nielsen,         |
          |     |Cook,    De Leon, Evans,  |     |Ammiano,                  |
          |     |Galgiani, Hall, Hill,     |     |Charles Calderon, Davis,  |
          |     |Lieu, Mendoza,  Nestande, |     |Duvall, Krekorian, Hall,  |
          |     |Portantino, Torres,       |     |Harkey, Miller,           |
          |     |Torrico, Tran             |     |John A. Perez, Price,     |
          |     |                          |     |Skinner, Solorio, Audra   |
          |     |                          |     |Strickland, Torlakson     |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :   Makes numerous technical, clarifying, and conforming  
          changes in order to update and condense where possible, current  
          horse racing statutes found in the Business and Professions  
          Code.  Specifically,  this bill  :  

          1)Includes outriders in the definition of racing officials thus  
            requiring them to be licensed, as specified. 

          2)Provides that oral examinations for stewards shall be  
            conducted by a panel of not less than 3 members of the board,  
            while oral examinations for official veterinarians shall be  
            conducted by a panel of not less than one member of the board,  
            the equine medical director, and the executive director of the  
            CHRB. 

           EXISTING LAW :

          1)Provides that CHRB regulate the various forms of horse racing  
            authorized in this state.

          2)Provides under the Horse Racing Law, for the operation of live  
            horse racing in this state and for wagering thereon, and for  
            the operation of satellite wagering facilities, subject to  
            regulation and oversight by the CHRB, as specified.









                                                                  AB 1575
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          3)Defines "racing official" as the starter, timer, paddock  
            judge, horseshoe inspector, horse identifier, official  
            veterinarian, racing veterinarian, associate judge, placing  
            judge, patrol judge, clerk of scales, clerk of the course, and  
            any other person acting as an official at any horse racing  
            meeting.

          4)Provides that every steward and racing official shall be  
            licensed and subject to both written and oral examinations, as  
            specified. "Racing official" is defined to include official  
            veterinarians. In general, persons who participate in a horse  
            race without proper licensure are guilty of a misdemeanor.

           FISCAL EFFECT  :   There are no significant costs for CHRB  
          associated with changing the make-up of the oral licensing  
          examination panel for veterinarians.  Increased licensing  
          revenue for CHRB associated with adding outriders to the  
          definition of horse racing officials.  Licenses for those  
          officials are $150 for a three year license. Formerly the  
          outriders' licensing costs were $75 for a three year license.

           COMMENTS  :  AB 1575 is a Governmental Organization Committee bill  
          that makes numerous technical, clarifying, and conforming  
          changes in order to update and condense where possible, current  
          horse racing statutes found in the Business and Professions Code  
          (Section 19400 et seq.).  The bill also takes into consideration  
          current practices and procedures of the CHRB to ensure   
          protection of the wagering public while providing uniformity of  
          regulation for each type of horse racing conducted in  
          California.

          The language contained is this bill was put forth by the CHRB. 

          Under current law, a person who works in the barn area or on the  
          racetrack must be licensed by the CHRB.  A racing official is  
          generally described as a person who has contact and/or  
          interaction with the Board of Stewards on racing matters.  Since  
          an outrider maintains close contact and takes direction from the  
          stewards via a hand held radio each day, these individuals  
          should  be treated as an official for purposes of licensure.

          The bill also contains language relating to oral examinations  
          for stewards and official veterinarians.  The stated amendment  
          will ensure that appropriate representatives from the CHRB  








                                                                  AB 1575
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          participate in oral examinations for specified positions.

          Additionally, SBX2 16 (Ashburn), Chapter 12, Statutes of 2009-10  
          Second Extraordinary Session, shifted the horse racing  
          industry's obligation to fund the network of California Fairs  
          from license fees imposed on horse racing wagers to the General  
          Fund (GF).  The bill provided various measures of economic  
          stimulus for the horse racing industry.  The bill also contained  
          numerous technical, clarifying and conforming changes to horse  
          racing codes, which might need to be clarified and/or  
          streamlined in this bill. 

           Related legislation  .  AB 840 (Garrick), of the 2009-2010  
          legislative session, makes a technical change to the intent  
          section of Horse Racing Law to specify that it is the intent to  
          of the law to allow pari-mutuel wagering on horse races while  
          ensuring the protection of the public.  Pending in Assembly  
          Rules Committee.
           
          Prior legislation  .  SB 16 X2 (Ashburn), Chapter 12, Statutes of  
          2009-10 Second Extraordinary Session, provides among other  
          things, that beginning on July 1, 2009, and annually thereafter,  
          thirty-two million ($32,000,000) shall be appropriated from the  
          state's General Fund and paid into the Fair and Exposition Fund  
          for the financial support of the network of California fairs.  

          SB 2054 (Senate Governmental Organization Committee), Chapter  
          1082, Statutes of 2000,  amended the Horse Racing Law by  
          deleting obsolete provisions, correcting erroneous and outdated  
          cross-references, and making numerous other technical,  
          nonsubstantive changes.
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531

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