BILL ANALYSIS �
Bill No: AB
2005
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
AB 2005 Author: Chesbro
As Amended: April 24, 2014
Hearing Date: June 24, 2014
Consultant: Art Terzakis
SUBJECT
California Horse Racing Board: membership
DESCRIPTION
AB 2005 expands the membership of the California Horse
Racing Board (CHRB) from 7 to 11 members by adding 4
members of the Legislature (2 appointed by the Senate
Committee on Rules and 2 appointed by the Speaker of the
Assembly) as non-voting, ex-officio members. Specifically,
this measure:
1)Expands the membership of the CHRB from 7 to 11 members
by adding 4 members of the Legislature as non-voting,
ex-officio members.
2)Specifies that 2 members will appointed by the Senate
Committee on Rules, of which one member must be from a
legislative district in the northern zone and one member
from a district in the southern zone. Also, provides
that the Speaker of the Assembly shall appoint 2 members,
one from a legislative district in the northern zone and
one member from a district in the central zone.
3)Stipulates that legislative members appointed to the CHRB
shall: (a) serve a term of no more than 2 years, with no
limit on the number of terms that may be served; (b) be
ineligible to serve on CHRB subcommittees; and, (c) not
receive per diem or reimbursement for traveling or other
expenses from the CHRB.
4)In addition, this measure strikes obsolete provisions of
AB 2005 (Chesbro) continued
Page 2
Horse Racing Law and makes other technical, clarifying
and code maintenance changes.
EXISTING LAW
Article IV, Section 19(b) of the Constitution of the State
of California stipulates that the Legislature may provide
for the regulation of horse races and horse race meetings
and wagering on the results.
Existing law provides that the expressed intent of the
"Horse Racing Law" is to allow parimutuel wagering on horse
races, while: (a) assuring protection of the public; (b)
encouraging agriculture and the breeding of horses in this
state; (c) providing for maximum expansion of horse racing
opportunities in the public interest; and, (d) providing
uniformity of regulation for each type of horse racing.
Existing law provides for a CHRB consisting of 7-members
appointed by the Governor. The mission of the CHRB is to
ensure the integrity, viability, and safety of the state's
horse racing industry by regulating parimutuel wagering for
the protection of the public, promoting horse racing,
breeding, and wagering opportunities, and fostering safe
racing through the development and enforcement of track
safety standards and regulations for the health and welfare
of all participants.
Existing law provides that each CHRB member shall hold
office for a term of 4 years and each member is eligible
for reappointment in the discretion of the Governor. Also,
any vacancy must be filled by the Governor for the
unexpired term. Additionally, each member of the CHRB is
entitled to receive a per diem of $100 dollars for each day
spent in attendance at official meetings and be reimbursed
for travel and other expenses necessarily incurred in the
performance of official duties.
BACKGROUND
Purpose of AB 2005: According to the author's office, this
measure is intended to allow more legislative participation
and oversight of the CHRB. Currently, all board members
are appointed by the Governor, and make decisions that
significantly affect local communities through the
allocation of racing dates. The author's office indicates
AB 2005 (Chesbro) continued
Page 3
that there are numerous boards and commissions throughout
the state that have members of the Legislature serving on
them. The author's office believes it makes perfectly good
sense that the Legislature have a greater role in the CHRB
decision-making process since decisions are made at the
CHRB that impact their districts.
Arguments in Opposition: Opponents note that the CHRB has
done an excellent job overseeing the industry for decades
and that a major change in the CHRB's structure at this
time is unwarranted. Opponents contend that this measure
is also unnecessary because it has been introduced as a
result of an isolated incident involving certain county
fairs and a ruling issued by the CHRB.
PRIOR/RELATED LEGISLATION
AB 2592 (Chesbro), 2013-14 Session. Would add a new
provision to California Horse Racing Law that requires the
CHRB to complete an economic analysis when it receives a
proposal to make a "substantial change" to the number of
days a fair conducts horse racing or to the weeks in the
horse racing calendar allocated to that fair to conduct a
live race meet. (Pending in this committee)
AB 2637 (Hall), 2013-14 Session. Among other things, would
delete an outdated cross-reference in law which allows the
CHRB to annually allocate a maximum of 28 racing days to
any county fair in the northern zone which did not conduct
horse racing prior to January 1, 1985. (Pending in this
committee)
SB 863 (Yee), 2007-08 Session. Would have prohibited more
than 3 members of the CHRB who are licensed to participate
in the horse racing industry from serving on the CHRB at
the same time. Also, would have required the CHRB to
promulgate and adopt regulations regarding conflicts of
interest and ethics for the CHRB. (Gutted and amended on
Assembly Floor to become a parks funding bill for Half Moon
Bay)
SR 14 (Yee), 2007-08 Session. Urged that Chairman Richard
Shapiro tender his resignation from the CHRB as soon as
possible to allow the CHRB to move forward with new
leadership and direction. (Held in Senate Rules Committee)
AB 2005 (Chesbro) continued
Page 4
AB 1752 (Levine), 2005-06 Session. Would have required the
CHRB to promulgate and adopt regulations regarding member
conflicts of interest and to develop a code of ethics for
all CHRB members, as specified. (Gutted and amended on
Senate Floor to become a water law measure)
AB 531 (Levine), 2005-06 Session. Among other things,
would have eliminated the exception for interested owners
and breeders that allows them to serve on the CHRB, and
would have prohibited any person from serving on the CHRB
if they have a financial interest in horse racing. (Died
in Assembly G.O. Committee)
Proposition 3 of 1933. Legalized parimutuel wagering on
horse racing in California.
SUPPORT: None on file as of June 20, 2014.
OPPOSE: As of June 20, 2014:
California Authority of Racing Fairs
Los Alamitos Race Course
Los Angeles County Fair
Oak Tree Racing
Pacific Coast Quarter Horse Racing Association
FISCAL COMMITTEE: Senate Appropriations Committee
**********