BILL ANALYSIS �
AB 1421
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Date of Hearing: May 18, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1421 (Committee on Governmental Organization) - As
Introduced: March 21, 2011
Policy Committee: Governmental
Organization Vote: 17 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the organization formed by the Harness Racing
Association and the harness racing horsemen and horsewomen to
oversee workers compensation insurance to obtain an independent
audit of their workers compensation fund expenditures.
Specifically, this bill:
1)Requires the designated organization to account to the
California Horse Racing Board (CHRB) on or before August 1 of
each year with respect to the distribution of harness racing
workers' compensation funds received during the immediately
preceding fiscal year and to obtain an independent audit of
those funds.
2)Requires that a copy of the completed audit be forwarded to
the CHRB within 45 days of its receipt by the organization.
FISCAL EFFECT
There are no significant costs for the CHRB associated with this
legislation.
COMMENTS
1)Purpose . This reporting and audit requirement currently exists
for the Thoroughbred and quarter horse racing industry. This
bill establishes that same requirement for harness racing. AB
1421 is intended to give CHRB needed fiscal information to
ensure that the designated harness racing workers compensation
funds are being properly utilized and disbursed to reduce
AB 1421
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workers' compensation insurance premiums for harness trainers
in the state.
2)Prior legislation : AB 701 (Price; Chapter 430, Statutes of
2008) extended the sunset date (until January 1, 2014) on a
program to provide an additional take-out from wagers for
defraying workers' compensation insurance premiums for the
harness racing industry.
AB 813 (Portantino; Chapter 19, Statutes of 2008) provided
that, with respect to harness meetings, if there are funds
unexpended in the horse racing promotion account, those funds
may be expended for other purposes with the consent of the
horsemen and the racing association to benefit the horsemen,
or the racing association, or both, pursuant to their
agreement.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081