BILL ANALYSIS
AB 1575
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1575 (Governmental Organization Committee)
As Amended September 4, 2009
2/3 vote
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|ASSEMBLY: | |(May 26, 2009) |SENATE: |34-2 |(September 14, 2009) |
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(vote not relevant)
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|COMMITTEE VOTE: |14-0 |(October 26, 2009) |RECOMMENDATION: |Concur |
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Original Committee Reference: G.O.
SUMMARY : Authorizes the California Horse Racing Board (CHRB) to
increase the amount set aside under current law for simulcast
operating expenses for a Thoroughbred race meet in the northern
zone and in the central and southern zones from 2.5% to up to 4%.
Revises the manner in which supplemental purses are distributed
between the 22nd District Agricultural Association and Los Angeles
County Fair. Furthermore, it cleans-up a provision of SB 16 X2
(Ashburn), Chapter 12, Statutes of 2009-10 Second Extraordinary
Session, which alleviated the horse racing industry of its
obligation to fund the fairs from license fees. Adds outriders to
the definition of horse racing officials, thus requiring them to be
licensed as racing officials, and clarifies the requirements for
oral examinations of stewards and veterinarians by CHRB.
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 three members of CHRB, while oral
examinations for official veterinarians shall be conducted by a
panel of not less than one member of CHRB, the equine medical
director, and the Executive Director of the CHRB.
3)Allows a northern, central and southern Thoroughbred association,
subject to the approval of the CHRB to increase the amount set
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aside under current law for simulcast operating expenses from
2.5% to up to 4% under specified conditions.
4)Revises the manner in which supplemental purses are distributed
and received by racing fairs in the County of Los Angeles (Los
Angeles County Fair) from wagering on Thoroughbred horse racing
conducted at the 22nd District Agricultural Association (Del Mar
Thoroughbred Club). The existing supplemental purse
distribution, specified under current law will now be paid
directly to the Los Angeles County Fair not appropriated by the
California Department of Food and Agriculture (CDFA).
5)Modifies the stated policy purpose of the SB 16 X2 by stating
that from all revenues transferred and deposited in the Fairs and
Exposition Fund (F&E Fund), an amount up to $1.1 million may be
allocated by the Secretary of CDFA to supplement purses at fairs
who conduct a live horse race meet as mandated under current law.
The Senate amendments :
1)Provide for Thoroughbred meetings in the northern, central, and
southern zones, from January 1, 2010, until December 31, 2013, no
more than 4% of the amount handled by a satellite wagering
facility on conventional and exotic wagers, can be distributed to
a specified organization for operating expenses with the mutual
consent of the racing association, horsemen's organization, and
the board, as specified. The bill would require the distribution
to revert on January 1, 2014, to that in existing law.
2)Revise the manner in which supplemental purses are distributed
and received by racing fairs in the County of Los Angeles from
wagering on thoroughbred horse racing conducted at the 22nd
District Agricultural Association.
3)Modify the stated policy purpose of the SBX2 16 by stating that
from all revenues transferred and deposited in the F&E Fund, an
amount up to $1.1 million may be allocated by the Secretary of
CDFA to supplement purses at fairs who conduct a live horse race
meet as mandated under current law.
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
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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. 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.
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 participate in oral examinations for
specified positions. These two amendments were put forth by the
CHRB.
AB 1575 also cleans-up a provision relating to SB 16 X2, which
authorized the appropriation of $32 million a year from the state's
General Fund (GF) to support the fairs. SB 16 X2 relieved the
horse racing industry of its obligation to fund the fairs from
license fees assessed on horse racing wagers.
This bill modifies SB 16 X2 by stating that, from all revenues
transferred and deposited in the F&E Fund, an amount up to $1.1
million may be allocated by the Secretary of CDFA to supplement
purses at fairs that conduct a live horse race meet in northern
zone as provided for under current law. The author states that
increasing owner purses has proven to be critical in the effort to
encourage the breeding and owning of racehorses in California.
Racing fairs in the northern zone have experienced increasing
attendance and handle due to the improved quality of their racing
programs.
This bill also revises the manner in which supplemental purses are
distributed and received by the Los Angeles County Fair (LACF).
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The existing supplemental purse distribution, established under
current law, will now be paid directly by the Del Mar Thoroughbred
Club to the LACF and will not appropriated by the Department of
Food and Agriculture.
Furthermore, AB 1575 allows a northern, central and southern
California Thoroughbred association, subject to the approval of the
CHRB, to increase the amount set aside under current law for
simulcast operating expenses from 2.5% to up to 4% under specified
conditions.
Prior legislation . SB 16 X2 provides, among other things, that
beginning on July 1, 2009, and annually thereafter, $32 million
shall be appropriated from the state's GF and paid into the F&E
Fund for the financial support of the network of California fairs.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0003461