BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 855|
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                                 THIRD READING


          Bill No:  SB 855
          Author:   Kehoe (D)
          Amended:  5/5/11
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  13-0, 4/12/11
          AYES:  Wright, Anderson, Berryhill, Calderon, Cannella, 
            Corbett, De Le�n, Evans, Hernandez, Padilla, Strickland, 
            Wyland, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  9-0, 5/2/11
          AYES:  Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, 
            Price, Runner, Steinberg


           SUBJECT  :    State Race Track Leasing Commission

           SOURCE  :     Author


           DIGEST  :    This bill extends the sunset on the State Race 
          Track Leasing Commission (SRTLC) from January 1, 2013 to 
          January 1, 2018.

           ANALYSIS  :    Existing law establishes, until January 1, 
          2013, the 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 
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          agreements for the use of specified property owned or 
          controlled by the 22nd DAA.

          This bill extends the sunset on the SRTLC from January 1, 
          2013 to 
          January 1, 2018.

           Prior/Related Legislation
           
          SB 1 (Kehoe), 2011-12 Session, authorizes the sale of Del 
          Mar Fairgrounds to the City of Del Mar.  (The bill is 
          pending in Senate Governmental Organization 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.  (The bill passed 
          the Senate Floor with a vote of 36-0.)

          SB 1321 (Kehoe), 2009-10 Session, would have authorized the 
          Director of DGS 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 SRTLC with respect to the 
          exercise of statutory powers and duties of the commission.  
          The bill was vetoed - Governor Schwarzenegger'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."  (The bill 
          passed the Senate Floor with a vote of 24-8.)

          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.  The bill was held in Senate 
          Rules Committee.  (The bill died in Senate Rules 
          Committee.)
           
          SB 282 (Cox), Chapter 293, Statutes of 2007, authorizes 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 

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          maintenance projects, revitalization of existing facilities 
          and new facility construction at the Cal Expo site.

           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), 2011-12 Session, authorizes 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

                         Fiscal Impact (in thousands)

           Major Provisions      2011-12     2012-13     2013-14     Fund  

          Sunset extension    Minor, if any, cost annuallyGeneral/
                                                            
          Special*

          * Department of Food and Agriculture Fund, Service 
          Revolving Fund

           SUPPORT  :   (Verified  5/5/11)

          Del Mar Thoroughbred Club

           ARGUMENTS IN SUPPORT  :    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.    


          PQ:kc  5/5/11   Senate Floor Analyses 

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                         SUPPORT/OPPOSITION:  SEE ABOVE

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