BILL ANALYSIS �
Bill No: SB
855
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
SB 855 Author: Kehoe
As Introduced: February 18, 2011
Hearing Date: April 12, 2011
Consultant: Art Terzakis
SUBJECT
State Race Track Leasing Commission
DESCRIPTION
SB 855 extends the sunset on the State Race Track Leasing
Commission from January 1, 2013 to January 1, 2023.
EXISTING LAW
Existing law establishes, until January 1, 2013, the State
Race Track Leasing Commission (SRTLC) which is composed of
the Secretary of Food and Agriculture, the Director of
Finance, the Director of General Services (DGS), 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 the 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 52 state
agricultural districts, with board members appointed by the
Governor. The Del Mar Fair is the 6th largest in the
United States and the largest fair in the California State
Fair system. The 22nd DAA oversees the Del Mar Fairgrounds
and Racetrack, Surfside Race Place, Horse Park Equestrian
SB 855 (Kehoe) continued
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Center and the Del Mar Golf Center.
The State Race Track Leasing Commission (SRTLC), as noted
above, is a six-member Commission, as specified, with
authority over leasing and contractual matters in the 22nd
DAA's administration of the Del Mar Racetrack.
The author's office notes that the SRTLC provides an
important link between 22nd DAA management and oversight of
the racetrack, including bonds currently totaling $50
million issued for capital construction. The State of
California, through the 22nd DAA owns the Fairgrounds and
Racetrack and is ultimately responsible for payment of the
bonds.
The Problem: The SRTLC is currently scheduled to sunset on
January 1, 2013.
The Solution: SB 855 would extend the sunset date of the
SRTLC by 10 years (from January 1, 2013 to January 1,
2023).
Staff Comments: Last year, the Joint Sunset Review
Committee identified the SRTLC as one of several entities
which would sunset January 1, 2013 (AB 2130 - Huber,
Chapter 670, Statutes of 2010). Additionally, SB 1
(Kehoe), currently pending in this Committee, would
authorize the sale of Del Mar Fairgrounds and the Racetrack
to the City of Del Mar. If SB 1 should become law, the
need for the extension of SRTLC would be moot because the
state would no longer have an interest in the property.
PRIOR/RELATED LEGISLATION
SB 1 (Kehoe) 2011-12 Session. Would authorize the sale of
Del Mar Fairgrounds to the City of Del Mar. (Pending in
this Committee)
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
SB 855 (Kehoe) continued
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to each designate a deputy of his/her office to act in
his/her place and stead on the SRTLC 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 DGS 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 April 8, 2011.
FISCAL COMMITTEE: Senate Appropriations Committee
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