BILL ANALYSIS �
Bill No: SB 1
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
SB 1 Author: Kehoe
As Amended: January 4, 2012
Hearing Date: January 10, 2012
Consultant: Art Terzakis
SUBJECT
State Race Track Leasing Commission
DESCRIPTION
SB 1 deletes the January 1, 2013 sunset date of the State Race
Track Leasing Commission which oversees leases and other
agreements for the use of the Del Mar Race Track located on the
grounds of the Del Mar Fairgrounds.
EXISTING LAW
Existing law (Section 4351 of the Food & Agriculture Code)
establishes, until January 1, 2013, the State Race Track Leasing
Commission which is composed of the Secretary of Food and
Agriculture, the Director of Finance, the Director of General
Services, and three other individuals, appointed by the
Governor, who are members of the Board of Directors of the 22nd
District Agricultural Association (22nd DAA) - Del Mar
Fairgrounds. Existing law grants the Commission the authority to
enter into leases and agreements for use of specified property
owned or controlled by the 22nd DAA.
BACKGROUND
The 22nd DAA is a state entity that operates the approximately
400-acre Del Mar Fairgrounds and Racetrack located primarily in
the City of Del Mar with a portion in the City of San Diego.
The 22nd DAA is one of 54 state agricultural districts, with
board members appointed by the Governor. The 22nd DAA oversees
the Del Mar Fairgrounds and Racetrack, Surfside Race Place,
Horse Park Equestrian Center and the Del Mar Golf Center.
The State Race Track Leasing Commission, as noted above, is a
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six-member body, as specified, with authority over leasing and
contractual matters in the 22nd DAA's administration of the Del
Mar Racetrack. Specifically, the Commission oversees the lease
agreement between the 22nd DAA and the Del Mar Thoroughbred
Club. The Commission serves as the pass through for horse
racing revenues from the Club and the 22nd DAA and racing
revenues to the Race Track Authority. The Authority uses the
racing revenues to service bonds on the race track and fund
capital improvements. The State of California, through the 22nd
DAA owns the Fairgrounds and Racetrack and is ultimately
responsible for payment of the bonds.
Purpose of SB 1: The Race Track Authority is a Joint Powers
entity consisting of the 22nd DAA and the Commission - the
documents which created the Authority provide that it shall
remain in existence until the bonds are paid in full. The
author's office has been informed that elimination of the
Commission prior to the bonds maturing in 2025 would at the very
least create legal and logistical issues that would have to be
resolved and most likely violate the bond covenants. Thus, this
measure proposes to eliminate the existing January 1, 2013
sunset date of the Commission and make it a permanent entity.
PRIOR/RELATED LEGISLATION
SB 855 (Kehoe) 2011-12 Session. Would have extended the sunset
on the State Race Track Leasing Commission from January 1, 2013
to January 1, 2018. (This measure was gutted in the Assembly
and used for other purposes.)
AB 656 (Huber) 2011-12 Session. Among other things, proposed to
abolish certain state entities and also delete the January 1,
2013 sunset date of the State Race Track Leasing Commission.
(Vetoed by Governor Brown on the basis that it delegated to a
legislative committee sole discretion on whether and, for how
long, certain commissions should exist.)
AB 2130 (Huber) Chapter 670, Statutes of 2010. Among other
things, imposed a sunset date of January 1, 2013, on the State
Race Track Leasing Commission, the Capitol Area Committee, the
Continuing Care Advisory Committee, and the California
Recreational Trails Committee.
SB 1321 (Kehoe) 2009-10 Session. Would have authorized the
Director of DGS and the Secretary of Food and Agriculture to
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each designate a deputy of his/her office to act in his/her
place and stead on the State Race Track Leasing Commission with
respect to the exercise of statutory powers and duties of the
commission. (Vetoed - the Governor's message stated "this bill
diminishes the statutory powers of each respective
department/agency represented on this board by giving their
delegates all powers, duties and authority originally deemed for
these department heads.")
AB 181 (Saldana) 2009-10 Session. Among other things, would
have authorized the City of Del Mar to enter into an agreement
with the Department of General Services to purchase all of the
real property that comprises the 22nd DAA and any related
personal property for $120 million. (Held in Senate Rules
Committee)
SB 282 (Cox) Chapter 293, Statutes of 2007. Authorized the
formation of a joint powers entity, the State Fair Leasing
Authority, with the authority to obtain long-range financing to
fund infrastructure improvements, deferred maintenance projects,
revitalization of existing facilities and new facility
construction at the Cal Expo site.
SUPPORT: Del Mar Thoroughbred Club
OPPOSE: None on file as of January 6, 2012.
DUAL REFERRAL: Senate Committee on Rules
FISCAL COMMITTEE: Senate Appropriations Committee