BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 1 (Kehoe)
          
          Hearing Date: 1/17/2012         Amended: 1/4/2012
          Consultant: Bob Franzoia        Policy Vote: G O 10-0
          _________________________________________________________________
          ____
          BILL SUMMARY: SB 1 would delete the repeal date of the State 
          Race Track Leasing Commission, thereby indefinitely extending 
          the existence of the commission. Existing law repeals the 
          commission on January 1, 2013. 
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2012-13      2013-14       2014-15     Fund
           Deletion of commission Minor, if any, costs annually        
          General/
          repeal date                                             Special*
                                                                      
          * Department of Food and Agriculture Fund, Service Revolving 
          Fund
          _________________________________________________________________
          ____

          STAFF COMMENTS: Existing law establishes the State Race Track 
          Leasing Commission and authorizes the commission to enter into 
          leases or other agreements for the use of the Del Mar Race Track 
          and any other property owned or controlled by the 22nd District 
          Agricultural Association that the commission deems necessary to 
          provide horse racing at Del Mar Race Track. 

          The commission is comprised of the Secretary of Food and 
          Agriculture, the Director of Finance, the Director of General 
          Services, and three persons appointed by the Governor who are 
          members of the 22nd District Agricultural Association (DAA) 
          Board of Directors.  The commission oversees the lease agreement 
          between the 22nd DAA and the Del Mar Thoroughbred Club (club).  
          The commission serves as the pass through for horse racing 
          revenues from the club and the 22nd DAA which includes lease 
          payments to the 22nd DAA and racing revenues to the Race Track 
          Authority (authority). The authority, a joint powers authority, 
          uses the racing revenues to service bonds on the race track and 
          fund capital improvements.   Because the authority's founding 








          SB 1 (Kehoe)
          Page 1


          documents provide that the authority shall remain in existence 
          until the bonds are paid in full, elimination of the commission 
          prior to the bonds maturity may create legal and logistical 
          issues and potentially violate bond covenants. 

          There is no specific budget item for, or appropriation to, the 
          commission.  In essence, commission member expenses are absorbed 
          by the relevant department funds.

          The Department of General Services Service Revolving Fund 
          contains four functions:
          (1) Payments: the processing of invoices and travel expense 
          claims for the fund and various special funds.
          (2) Disbursements: the distribution of payroll for the 
          department and the various boards and commissions, depositing 
          and recording cash receipts and preparing and distributing 
          checks and claim schedules.     
          (3) Receivables: the preparation and distribution of invoice 
          billings and collections.
          (4) Accounting and Reports: the maintenance of accounting 
          records for the fund and the preparation of quarterly and 
          year-end statements. The department also maintains the 
          accounting records for special funds, prepares quarterly and 
          year-end financial statements, prepares the monthly income and 
          expense statement, and acts as account representatives to the 
          department office offices.