BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: SB 1
Author: Kehoe (D)
Amended: 1/4/12
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 10-0, 1/10/12
AYES: Wright, Anderson, Berryhill, Cannella, Corbett, De
Le�n, Evans, Hernandez, Padilla, Yee
NO VOTE RECORDED: Calderon, Strickland, Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-0, 1/17/12
AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley,
Steinberg
NO VOTE RECORDED: Price, Runner
SUBJECT : State Race Track Leasing Commission
SOURCE : Author
DIGEST : This bill 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.
ANALYSIS : Existing law 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
CONTINUED
SB 1
Page
2
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.
This bill 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.
Comments
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 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.
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
CONTINUED
SB 1
Page
3
covenants. Thus, this bill 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 bill 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 the Department of General Services and the
Secretary of Food and Agriculture to 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)
CONTINUED
SB 1
Page
4
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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
SUPPORT : (Verified 1/18/12)
Del Mar Thoroughbred Club
PQ:do 1/18/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED