BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1421|
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THIRD READING
Bill No: AB 1421
Author: Assembly Governmental Organization Committee
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 12-0, 6/14/11
AYES: Wright, Anderson, Calderon, Cannella, Corbett, De
Le�n, Evans, Hernandez, Padilla, Strickland, Wyland, Yee
NO VOTE RECORDED: Berryhill
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 75-0, 5/26/11 - See last page for vote
SUBJECT : Harness racing organizations
SOURCE : Author
DIGEST : 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, and (2) requires that a
copy of the completed audit be forwarded to the CHRB within
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45 days of its receipt by the organization.
ANALYSIS : Existing Horse Racing Law governs, among other
types of horse races, harness horse racing, in which horses
that meet specified criteria are harnessed to a sulky or
similar vehicle and raced at either the trotting or pacing
gait.
Existing law :
1.Vests jurisdiction and supervision over all horse racing
meetings, including harness races, in this state with the
CHRB.
2.Requires, until January 1, 2014, the harness racing
association and the organization representing harness
horsemen and horsewomen to form an organization to which
certain funds, that may be deducted from the total amount
handled in conventional pari-mutuel pools of harness
races, are distributed for purposes of reducing the
workers' compensation insurance costs for trainers who
are racing horses at the applicable harness racing
association meet, as specified.
Background
Currently, the Thoroughbred and quarter horse industry must
adhere to reporting and audit requirements in order to
receive workers' compensation insurance funds. This bill
simply establishes a similar requirement for harness
racing. This bill intends to give the CHRB needed fiscal
information to ensure that the designated harness racing
workers' compensation funds are being properly utilized and
disbursed to reduce workers' compensation insurance
premiums for harness trainers in the state.
Over the years, the California racing industry has been
hampered by the escalating cost of workers' compensation
insurance. Specifically, high costs have caused horses and
trainers to leave this state and have also discouraged
owners and trainers from bringing horses into California to
race. AB 701 (J. Horton), Chapter 40, Statutes of 2004,
was enacted to provide the harness racing industry with
some workers' compensation relief through the
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redistribution of one percent of the pari-mutuel handle
(conventional wagers) on live harness races run in
California. The funds generated from AB 701 have been used
to reduce the workers' compensation insurance costs for
trainers at the harness racing association meets. Even
with recent comprehensive workers' compensation relief, the
California horse racing industry is still faced with rates
which are excessive compared to other states, which conduct
live harness racing.
Prior/Related Legislation
AB 701 (Price) Chapter 430, Statutes of 2008, extends 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, provides
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.
AB 2103 (Plescia) Chapter 443, Statutes of 2008, extends
the sunset date, from January 1, 2009, to January 1, 2014,
on a deduction from pari-mutuel wagering on Thoroughbred
horse racing in order to defray the costs of workers'
compensation insurance.
AB 701 (Horton) Chapter 40, Statutes of 2004, makes changes
to existing Horse Racing Law which prescribes the amount
deducted from the pari-mutuel pools, as specified, in order
to reduce workers' compensation costs within the California
horse racing industry.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR :
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AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Carter,
Chesbro, Conway, Cook, Dickinson, Donnelly, Eng, Feuer,
Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani,
Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall,
Harkey, Hayashi, Roger Hern�ndez, Hill, Huber, Hueso,
Huffman, Jeffries, Knight, Lara, Logue, Bonnie Lowenthal,
Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell,
Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel
P�rez, Portantino, Silva, Skinner, Smyth, Solorio,
Swanson, Torres, Valadao, Wagner, Wieckowski, Williams,
Yamada, John A. P�rez
NO VOTE RECORDED: Campos, Cedillo, Davis, Gorell, Jones
PQ:do 8/26/11 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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