BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 1523 (Strickland) - Retired Race Horses.
Amended: May 21, 2012 Policy Vote: GO 12-0
Urgency: No Mandate: No
Hearing Date: May 24, 2012 Consultant: Maureen Ortiz
SUSPENSE FILE.
Bill Summary: SB 1523 requires the California Horse Racing Board
(CHRB) to establish a program for the rehabilitation and
retraining of California race horses.
Fiscal Impact: Loss of revenue of approximately $550,000
(General Fund) annually as follows:
Redirection of approximately $125,000 in fines and
penalties annually from the General Fund to the Fund for
Retired California Race Horses.
Redirection of approximately $425,000 annually in license
fee revenue from the CHRB to the Fund for Retired California
Race Horses.
Background: In 1987 the California Correctional Center (CCC), a
minimum security facility at Susanville, operated a "certified
90 day horse gentling program" for wild horses as one of the
CCC's vocational programs. After the program, the horses became
candidates for the periodic public horse adoptions held at the
prison.
In 2007, the CHRB approved a voluntary purse deduction of 0.3%
to fund The California Retirement Management Account (CARMA).
CARMA is a 501(c)(3) nonprofit organization that distributes
monies to California facilities that provide rehabilitation
services to retired thoroughbreds. Although revenue was
estimated at $200,000 annually, contributions to this account
are voluntary and insufficient to retrain the estimated 1,500
horses that are retired from California racetracks each year.
Race horses are trained as yearlings and the focus is running
and getting ready for a race. A rehabilitation period is
necessary to acclimate these horses to a life style that does
not revolve around racing. In addition, the horses often need
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to be weaned off of a diet of high energy grains and sometimes
even need to undergo a detoxification period before they are
compatible for adoption.
Proposed Law: SB 1523 requires the CHRB to establish a program
for the rehabilitation and retraining of California race horses
as follows:
a) Provides that the program will be developed by the board
and administered by a nonprofit organization.
b) Requires the CHRB to approve the nonprofit organization.
c) Creates the Fund for Retired California Race Horses
(RCRH), and continuously appropriates the money in that
fund.
d) Provides that 50% of the revenue from penalties and
fines that are currently imposed by the stewards of a horse
race meeting will be deposited into the Fund for Retired
California Race Horses, instead of the General Fund.
e) Provides that 50% of the revenues from fees currently
paid to the CHRB for occupational licenses will be
deposited into the RCRH Fund.
f) Requires the CHRB to adopt regulations for the
management and distributions of money in the new fund.
g) Requires the nonprofit organization to submit a budget
for the ensuing calendar year at the board's November
meeting each year, and to file quarterly financial
statements with the board.
SB 1523 requires a match of private donations before funds can
be allocated, requires the CHRB to identify a 501(c)(3)
organization to receive the donations, and make participation by
the Department of Corrections and Rehabilitation optional.
Staff Comments: Existing law requires persons who participate in
horse racing, including horse owners, jockeys drivers,
apprentices, grooms, and valets to be licensed by the board and
to pay license fees to the CHRB. SB 1523 will redirect 50% of
that fee revenue from the CHRB to the Fund for Retired
California Race Horses.
Recommended Amendments: Staff recommends the continuous
appropriation in the Fund for Retired California Race Horses be
deleted in order to provide the Legislature with continued
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oversight of the moneys in the fund through the annual Budget
Act.