SB 165: Highways: surplus nonresidential property.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2018-08-20
Existing law authorizes the Department of Transportation to acquire real property for state highway purposes and specifies various procedures to be followed by the department when it determines that real property acquired for state highway purposes is no longer necessary for those purposes.
Existing law declares the intent of the Legislature to preserve, upgrade, and expand the supply of current housing to persons or families of low or moderate income through the sale of specified surplus residential property. Existing law requires an agency of the state disposing of surplus residential property to do so in accordance with specified priorities and procedures, including that priority to purchase be given to tenants that are former owners or are persons or families of low or moderate income. Existing law requires tenants in good standing who legally occupy nonresidential properties to be given priority to purchase the property at fair market value.
Existing law, until January 1, 2020, prohibits the Department of Transportation from increasing the rent of tenants who reside in surplus residential property located within the State Route 710 corridor in the County of Los Angeles and who participate in the Affordable Rent Program administered by the department.
This bill would, until January 1, 2022, also prohibit the Department of Transportation from increasing the rent of a tenant that legally occupies a surplus nonresidential property located within the State Route 710 corridor in the County of Los Angeles and that is a nonprofit organization.
(1)Existing law, the Horse Racing Law, requires, until January 1, 2018, any racing association, including a fair, that conducts thoroughbred racing to pay to the owners organization contracting with the association with respect to the conduct of thoroughbred racing an additional 13/4% of the portion required to be deducted for purses for a national marketing program, as specified. A violation of the Horse Racing Law is a crime.This bill would extend the operation of those provisions to January 1, 2022.(2)By extending the operation of requirements under the Horse Racing Law, the violation of which would be a crime, the bill would create new crimes and would thereby impose a state-mandated local program.(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.(1)Existing law, the Horse Racing Law, requires, until January 1, 2018, any racing association, including a fair, that conducts thoroughbred racing to pay to the owners organization contracting with the association with respect to the conduct of thoroughbred racing an additional 13/4% of the portion required to be deducted for purses for a national marketing program, as specified. A violation of the Horse Racing Law is a crime.
This bill would extend the operation of those provisions to January 1, 2022.
(2)By extending the operation of requirements under the Horse Racing Law, the violation of which would be a crime, the bill would create new crimes and would thereby impose a state-mandated local program.
(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(a)The Department of Transportation shall not increase the rent of a tenant that rents, leases, or otherwise legally occupies a surplus nonresidential property located within the State Route 710 corridor in the County of Los Angeles and that is a nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code including the Arlington Garden, the Ronald McDonald House, the Cottage Co-op Nursery, the Sequoyah School, the Waverly School and Garden, and the Pasadena Avenue Community Garden.
(b)This section shall remain in effect only until January 1, 2022, and as of that date is repealed.
SECTION 1.Section 19613.05 of the Business and Professions Code is amended to read:19613.05.(a)Any association, including a fair, that conducts thoroughbred racing shall pay to the owners organization, contracting with the association with respect to the conduct of thoroughbred racing, an additional 13/4 percent of the portion deducted for purses, required by Section 19613, for a national marketing program. These funds shall be used exclusively for the promotion of thoroughbred racing in conjunction with a national thoroughbred racing marketing program. Funds that may not be needed for this effort shall be returned to the purse pool at the racing associations where these funds were raised in direct proportion to the amount in which they were initially raised. The owners organization shall file a report with the board and the respective Senate and Assembly Committees on Governmental Organization, accounting for the receipt and expenditure of these funds on an annual basis. The board of directors of the owners organization shall have the discretion to select the national marketing organization that shall be the recipient of these funds. If the board of directors of the owners organization decides at any time not to contribute to the national marketing organization, notice shall be given promptly to the respective racing association or associations and the 13/4 percent deduction shall cease until the owners organization decides otherwise.(b)This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.(a)Any association, including a fair, that conducts thoroughbred racing shall pay to the owners organization, contracting with the association with respect to the conduct of thoroughbred racing, an additional 13/4 percent of the portion deducted for purses, required by Section 19613, for a national marketing program. These funds shall be used exclusively for the promotion of thoroughbred racing in conjunction with a national thoroughbred racing marketing program. Funds that may not be needed for this effort shall be returned to the purse pool at the racing associations where these funds were raised in direct proportion to the amount in which they were initially raised. The owners organization shall file a report with the board and the respective Senate and Assembly Committees on Governmental Organization, accounting for the receipt and expenditure of these funds on an annual basis. The board of directors of the owners organization shall have the discretion to select the national marketing organization that shall be the recipient of these funds. If the board of directors of the owners organization decides at any time not to contribute to the national marketing organization, notice shall be given promptly to the respective racing association or associations and the 13/4 percent deduction shall cease until the owners organization decides otherwise.
(b)This section shall remain in effect only until January 1, 2018, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2018, 2022, deletes or extends that date.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
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Date
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Status
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|---|---|
| Aug 23, 2018 | August 23 set for first hearing canceled at the request of author. |
| Aug 20, 2018 | Re-referred to Com. on TRANS. pursuant to Assembly Rule 77.2. |
| Aug 20, 2018 | Ordered to third reading. |
| Aug 14, 2018 | From inactive file. |
| Aug 13, 2018 | Notice of intention to remove from inactive file given by Assembly Member Calderon. |
| Aug 21, 2017 | From consent calendar on motion of Assembly Member Calderon. |
| Jul 20, 2017 | Read second time. Ordered to consent calendar. |
| Jul 19, 2017 | From committee: Do pass. Ordered to consent calendar. (Ayes 16. Noes 0.) (July 19). |
| Jun 22, 2017 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 17. Noes 0.) (June 21). Re-referred to Com. on APPR. |
| May 18, 2017 | Referred to Com. on G.O. |
| Apr 6, 2017 | In Assembly. Read first time. Held at Desk. |
| Apr 6, 2017 | Read third time. Passed. (Ayes 39. Noes 0. Page 643.) Ordered to the Assembly. |
| Apr 4, 2017 | Read second time. Ordered to consent calendar. |
| Apr 3, 2017 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| Mar 24, 2017 | Set for hearing April 3. |
| Mar 14, 2017 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 11. Noes 0. Page 362.) (March 14). Re-referred to Com. on APPR. |
| Feb 16, 2017 | Set for hearing March 14. |
| Feb 2, 2017 | Referred to Com. on G.O. |
| Jan 20, 2017 | From printer. May be acted upon on or after February 19. |
| Jan 19, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
|
Description
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Location
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Votes
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|---|---|---|---|---|
| Jul 19, 2017 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
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| Jun 21, 2017 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Governmental Organization |
Passed |
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| Apr 6, 2017 | Consent Calendar 2nd SB165 Portantino | Senate Floor |
Passed |
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| Mar 14, 2017 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governmental Organization |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| California Thoroughbred Breeders Association | ** Support | Jun 20, 2017 |
| Thoroughbred Owners Of California | ** Support | Jun 20, 2017 |
SENATE THIRD READING
STR Bill Id:SB 165
Author:(Portantino)
As Introduced Ver:August 20, 2018
Majority vote
SENATE VOTE: 39-0
Committee | Votes | Ayes | Noes |
Governmental Organization | 17-0 | Gray, Bigelow, Aguiar-Curry, Bocanegra, Brough, Cooley, Cooper, Daly, Gallagher, Gipson, Gloria, Kiley, Levine, Low, Rubio, Salas, Waldron | |
Appropriations | 16-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, Quirk, Chau, Eggman, Fong, Friedman, Eduardo Garcia, McCarty, Muratsuchi, Obernolte, Reyes |
SUMMARY: Restricts the California Department of Transportation (Caltrans), until January 1, 2022, from increasing the rent for a nonprofit organization that legally occupies a surplus nonresidential property located within the State Route (SR) 710 corridor in Los Angeles County.
EXISTING LAW:
- Identifies the California state highway system through a description of segments of the state's regional and interregional roads that Caltrans owns and operates.
- Provides that, whenever Caltrans determines that any real property acquired for highway purposes is no longer necessary, it may sell or exchange the property upon terms, standards, and conditions established by the California Transportation Commission (CTC).
- Establishes priorities and procedures for the disposition of surplus residential properties in the SR 710 corridor.
- Expedites the sale of surplus residential properties in the cities of Los Angeles, South Pasadena, and Pasadena that do not fall within the boundaries of any alternate route being considered in the North Route 710 Project Draft Environmental Impact Report/Environmental Impact Statement.
FISCAL EFFECT: Unknown.
COMMENTS: For decades, Caltrans has proposed extending SR 710 to close a roughly 4.5-mile unconstructed gap in the freeway between SR 10 and SR 710 in Pasadena. This gap affects the cities of Alhambra, Pasadena, South Pasadena, and a portion of Los Angeles. The project has been in the planning stage since 1953 for a variety of reasons related to the federal environmental review process. Caltrans currently owns over 400 homes within the original surface route corridor, most of which are occupied by tenants for whom Caltrans serves as landlord.
In December 2016, Caltrans announced its plans to sell 42 of the SR 710 corridor properties and outlined future plans to sell many, if not all, of the remaining properties. In spring 2017, the Los Angeles County Metropolitan Transportation Authority voted unanimously to withdraw its support and funding for a proposed tunnel connecting the SR 710 and SR 210 freeways.
According to the author, "In the wake of Metropolitan Transportation Authority's vote to kill the SR 710 tunnel, the sale of the SR 710 properties are the next big piece of the puzzle that needs to fall into place. These properties include both residential and nonresidential commercial properties. Tenants of these properties have been concerned for years that rising rents would drive them out of becoming owners. Last year, I authored SB 400 which protects tenants in the affordable rent program administered by Caltrans from rent increases. In the months that followed the enactment of SB 400, I learned that nonprofits along the SR 710 corridor were also experiencing rent increases. In today's economic climate nonprofits have been struggling with how to provide much needed no-cost or low-cost services to vulnerable populations all the while paying costs to provide those services. Nonprofits are an essential thread in the fabric of our communities. This bill looks to ensure that nonprofits in the SR 710 corridor can afford to continue to provide much needed services without having to worry about rent increases. For me, the fair thing to do is to freeze rents and continue to help facilitate the sale of the properties as quickly and efficiently as possible."
Committee Comment: This bill is not without precedent. Last year, Senator Portantino authored and Governor Brown signed SB 400 (Portantino), Chapter 568, Statutes of 2017, which prohibits Caltrans from increasing the rent of a tenant who resides in a surplus residential property located within the SR 710 corridor and participates in Caltrans' Affordable Rent Program. While both SB 400 and this bill have noble aims – to avoid pricing low-income and nonprofit tenants out of their leases – it is also important that the state recover its costs in administering its property management responsibilities. This bill, similar to SB 400, sunsets in a relatively short time and therefore shouldn't significantly impact Caltrans' revenues. The precedent set by both bills, however, could have far-reaching impacts were it to be applied to the thousands of parcels Caltrans maintains statewide.
Analysis Prepared by: Eric Thronson / TRANS. / (916) 319-2093 FN: 0004177
SENATE THIRD READING
STR Bill Id:SB 165
Author:(Portantino)
As Introduced Ver:January 19, 2017
Majority vote
SENATE VOTE: 39-0
Committee | Votes | Ayes | Noes |
Governmental Organization | 17-0 | Gray, Bigelow, Aguiar-Curry, Bocanegra, Brough, Cooley, Cooper, Daly, Gallagher, Gipson, Gloria, Kiley, Levine, Low, Rubio, Salas, Waldron | |
Appropriations | 16-0 | Gonzalez Fletcher, Bigelow, Bloom, Bocanegra, Bonta, Brough, Quirk, Chau, Eggman, Fong, Friedman, Eduardo Garcia, McCarty, Muratsuchi, Obernolte, Reyes |
SUMMARY: Would extend the sunset date, from January 1, 2018 to January 1, 2022, of the requirement that a racing association that conducts thoroughbred racing pay a specified amount from owners' purses to support a national marketing program.
EXISTING LAW:
- Provides, under California Constitution, Article IV, Section 19(b), that the Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results.
- Provides that the intent of California's Horse Racing Law is to allow pari-mutuel wagering on horse racing while:
- Assuring protection of the public;
- Encouraging agriculture and the breeding of horses in this state;
- Supporting the network of California fairs;
- Providing for maximum expansion of horse racing opportunities in the public interest; and,
- Providing uniformity of regulation for each type of horse racing.
- Requires, until January 1, 2018, that any racing association, including fairs, which conduct thoroughbred racing to pay an additional 1.75% of the portion of the takeout distributed as owners' purses to the owners' organization contracting with the association for the purpose of promoting thoroughbred racing in conjunction with a national thoroughbred racing marketing program.
- Stipulates that any funds not used for this purpose be returned to the respective purse pools of the racing association from where the contributions originated.
- Authorizes the board of directors of the owners' organization to select the national marketing organization used for this program, and whether or not their funding for the program should continue.
- Requires the owners' organization to file an annual report with the California Horse Racing Board (CHRB) and the Governmental Organization Committees of both the Senate and the Assembly to account for the receipt and expenditure of these funds.
FISCAL EFFECT: Unknown.
COMMENTS:
Purpose of the bill: According to the author's office, "The popularity of horse racing as both a sport and industry has suffered, due to the industry's inability to expand its market share and attract new customers. Moreover, the industry has experienced difficulty competing with other more popular forms of gambling, such as those games offered by the state lottery, card clubs and casino gambling in Nevada or Indian reservations. In 1998 to help address this decline, thoroughbred racing interests from across the country formed the National Thoroughbred Racing Association (NTRA)."
This bill addresses the state's participation in the NTRA, which is intended to increase interest in horse racing through national marketing and advertising. The legal authority for the Thoroughbred Owners of California (TOC) to participate in the NTRA is set to expire on January 1, 2018. The TOC serves as the CHRB-recognized representative of horse owners on matters pertaining to purse contracts, simulcast agreements, and legislative initiatives. The organization strives to improve and increase representation of horse owners in the day-to-day business activities of racing.
The National Thoroughbred Racing Association: The NTRA is a broad-based coalition of more than 100 horse racing interests and thousands of individual stakeholders consisting of horseplayers, racetrack operators, owners, breeders, trainers and affiliated horse racing associations, charged with increasing the popularity, welfare and integrity of Thoroughbred racing through consensus-based leadership, legislative advocacy, safety and integrity initiatives, fan engagement and corporate partner development. Funding for this program comes from racing interests outside of the state, as well as California's Thoroughbred racing associations.
Historically, the NTRA has been supported by most of California's racetracks and racing fairs. The NTRA is served by a board of directors that includes a representative from the TOC. In 2016, California thoroughbred owners', through the TOC, paid approximately $140,119 to the NTRA to increase the popularity, welfare and integrity of Thoroughbred racing through consensus-based leadership, legislative advocacy, safety and integrity initiatives, fan engagement and corporate partner development.
Prior legislation: AB 2765 (Committee on Governmental Organization), Chapter 430, Statutes of 2014. Among other things, reauthorized, until January 1, 2018, California's participation in the NTRA marketing program and extended the sunset date from January 1, 2015, to January 1, 2019, for the statewide marketing organization.
AB 2792 (Committee on Governmental Organization), Chapter 272, Statutes of 2010. Among other things, extended the sunset date, from January 1, 2011, to January 1, 2014, on California's participation in the NTRA.
AB 1736 (Committee on Governmental Organization), Chapter 444, Statutes of 2007. Among other things, extended the sunset date on California's participation in the NTRA and the statewide marketing organization.
AB 2502 (Wyland), Chapter 90, Statutes of 2002. Extended the sunset date until January 1, 2008, on California's participation in the NTRA.
SB 103 (Maddy) Chapter 10, Statutes of 1998. Authorized, until January 1, 2004, the thoroughbred racing associations and fairs to set aside some money from purses for the purpose of joining the NTRA.
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0004002
Date of Hearing: July 19, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 165
Author:(Portantino) – As Introduced Ver:January 19, 2017
Policy Committee: | Governmental Organization | Vote: | 17 - 0 |
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill extends the sunset date, from January 1, 2018 to January 1, 2022, of the requirement that a racing association that conducts thoroughbred racing pay a specified amount from owners’ purses to support a national marketing program.
FISCAL EFFECT:
No additional state costs.
COMMENTS:
- Background and Purpose. The National Thoroughbred Racing Association (Association) is a coalition of horse racing interests and individual stakeholders, including racetrack operators, owners, breeders, and trainers. The Association is charged with increasing the popularity and promoting the integrity of Thoroughbred racing. Under existing state law, the legal authority for California thoroughbred owners to participate in the Association through dedicated funding is set to expire on January 1, 2018. According to the author, SB 165 will continue to allow the Association to support and promote California thoroughbred racing.
- Previous Legislation. The authority for California thoroughbred owners to participate in the Association has been repeatedly extended. SB 2013 (Maddy), Chapter 10, Statutes of 1998, authorized until January 1, 2004 participation in the Association. AB 2502 (Wyland), Chapter 90, Statutes of 2002, extended the authority until January 1, 2009. AB 1736 (Committee on Governmental Organization), Chapter 444, Statutes of 2008, extended the sunset once again to January 1, 2011, and AB 2782 (Committee on Governmental Organization) Chapter 272, Statutes of 2010, extended it until January 1, 2014. Finally, the most recent legislation was AB 2765 (Committee on Governmental Organization), Chapter 430, Statutes of 2014, which extended the sunset to January 1, 2018.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: June 21, 2017
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
SBPCA Bill Id:SB 165
Author:(Portantino) – As Introduced Ver:January 19, 2017
SENATE VOTE: 39-0
SUBJECT: Horse racing: national thoroughbred racing marketing program
SUMMARY: Extends the sunset date from January 1, 2018, to January 1, 2022, that requires any racing association or fair that conducts Thoroughbred racing to pay a specified amount from owner’s purses to help fund a national marketing program to promote Thoroughbred racing, as specified.
EXISTING LAW:
- Provides, under Article IV, Section 19(b) of the Constitution of the State of California, that the Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results.
- Provides that the intent of California's Horse Racing Law is to allow pari-mutuel wagering on horse racing while:
- Assuring protection of the public;
- Encouraging agriculture and the breeding of horses in this state;
- Supporting the network of California fairs;
- Providing for maximum expansion of horse racing opportunities in the public interest; and,
- Providing uniformity of regulation for each type of horse racing.
- Requires, until January 1, 2018, that any racing association, including fairs, which conduct thoroughbred racing to pay an additional 1.75% of the portion of the takeout distributed as owners' purses to the owners' organization contracting with the association for the purpose of promoting thoroughbred racing in conjunction with a national thoroughbred racing marketing program.
- Stipulates that any funds not used for this purpose be returned to the respective purse pools of the racing association from where the contributions originated.
- Authorizes the board of directors of the owners' organization to select the national marketing organization used for this program, and whether or not their funding for the program should continue.
- Requires the owners' organization to file an annual report with the CHRB and the Governmental Organization Committees of both the Senate and the Assembly to account for the receipt and expenditure of these funds.
FISCAL EFFECT: Unknown.
COMMENTS:
Purpose of the bill: According to the author’s office, “The popularity of horse racing as both a sport and industry has suffered, due to the industry’s inability to expand its market share and attract new customers. Moreover, the industry has experienced difficulty competing with other more popular forms of gambling, such as those games offered by the state lottery, card clubs and casino gambling in Nevada or Indian reservations. In 1998 to help address this decline, thoroughbred racing interests from across the country formed the National Thoroughbred Racing Association (NTRA)."
This bill addresses the state’s participation in the NTRA, which is intended to increase interest in horse racing through national marketing and advertising. The legal authority for the Thoroughbred Owners of California (TOC) to participate in the NTRA is set to expire on January 1, 2018. The TOC serves as the CHRB-recognized representative of horse owners on matters pertaining to purse contracts, simulcast agreements, and legislative initiatives. The organization strives to improve and increase representation of horse owners in the day-to-day business activities of racing.
The National Thoroughbred Racing Association: The NTRA is a broad-based coalition of more than 100 horse racing interests and thousands of individual stakeholders consisting of horseplayers, racetrack operators, owners, breeders, trainers and affiliated horse racing associations, charged with increasing the popularity, welfare and integrity of Thoroughbred racing through consensus-based leadership, legislative advocacy, safety and integrity initiatives, fan engagement and corporate partner development. Funding for this program comes from racing interests outside of the state, as well as California's Thoroughbred racing associations.
Historically, the NTRA has been supported by most of California’s racetracks and racing fairs. The NTRA is served by a board of directors that includes a representative from the TOC. In 2016, California thoroughbred owners’, through the TOC, paid approximately $140,119 to the NTRA to increase the popularity, welfare and integrity of Thoroughbred racing through consensus-based leadership, legislative advocacy, safety and integrity initiatives, fan engagement and corporate partner development.
Prior legislation: AB 2765 (Committee on Governmental Organization), Chapter 430, Statutes of 2014. Among other things, reauthorized, until January 1, 2018, California’s participation in the NTRA marketing program and extended the sunset date from January 1, 2015, to January 1, 2019, for the statewide marketing organization.
AB 2792 (Committee on Governmental Organization), Chapter 272, Statutes of 2010. Among other things, extended the sunset date, from January 1, 2011, to January 1, 2014, on California's participation in the NTRA.
AB 1736 (Committee on Governmental Organization), Chapter 444, Statutes of 2007. Among other things, extended the sunset date on California's participation in the NTRA and the statewide marketing organization.
AB 2502 (Wyland), Chapter 90, Statutes of 2002. Extended the sunset date until January 1, 2008, on California's participation in the NTRA.
SB 103 (Maddy, Chapter 10, Statutes of 1998). Authorized, until January 1, 2004, the thoroughbred racing associations and fairs to set aside some money from purses for the purpose of joining the NTRA.
REGISTERED SUPPORT / OPPOSITION:
Support
California Thoroughbred Breeders Association
Thoroughbred Owners of California
Opposition
None one file
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
CONSENT
Bill No: SB 165
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 11-0, 3/14/17
AYES: Glazer, Bradford, Cannella, Dodd, Galgiani, Hill, Hueso, Lara, Mendoza, Portantino, Vidak
NO VOTE RECORDED: Berryhill, Gaines
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SOURCE: Thoroughbred Owners of California
DIGEST: This bill extends the sunset date from January 1, 2018, to January 1, 2022, that requires any racing association or fair that conducts thoroughbred racing to pay a specified amount from owner’s purses to help fund a national marketing program.
ANALYSIS:
Existing law:
- Provides that the California Horse Racing Board (CHRB) regulates the various forms of horse racing authorized in this state.
- Requires, until January 1, 2018, that any racing association, including fairs, which conduct thoroughbred racing to pay an additional 1.75% of the portion of the takeout distributed as owners' purses to the owners' organization contracting with the association for the purpose of promoting thoroughbred racing in conjunction with a national thoroughbred racing marketing program.
- Stipulates that any funds not used for this purpose be returned to the respective purse pools of the racing association from where the contributions originated.
- Requires the owners' organization to file an annual report with the CHRB and the Governmental Organization Committees of both the Senate and the Assembly to account for the receipt and expenditure of these funds.
- Authorizes the board of directors of the owners' organization to select the national marketing organization used for this program, and whether or not their funding for the program should continue.
This bill extends the sunset date until January 1, 2022, on a provision requiring any racing association or fair that conducts thoroughbred racing to pay an additional 1.75% from owners' purses to help fund a national marketing program for the purpose of promoting thoroughbred racing.
Background
Purpose of the bill. According to the author’s office, “The popularity of horse racing as both a sport and industry has suffered, due to the industry’s inability to expand its market share and attract new customers. Moreover, the industry has experienced difficulty competing with other more popular forms of gambling, such as those games offered by the state lottery, card clubs and casino gambling in Nevada or Indian reservations. In 1998, to help address this decline, thoroughbred racing interests from across the country formed the National Thoroughbred Racing Association (NTRA).”
This bill addresses the state’s participation in the NTRA, which is intended to increase interest in horse racing through national marketing and advertising. The California thoroughbred owners’ legal authority to participate in the NTRA is set to expire on January 1, 2018.
The National Thoroughbred Racing Association. The NTRA is a broad-based coalition of more than 100 horse racing interests and thousands of individual stakeholders consisting of horseplayers, racetrack operators, owners, breeders, trainers and affiliated horse racing associations. The primary objective of NTRA is to develop and implement a comprehensive marketing strategy. Funding for this program comes from racing interests outside of the state, as well as California's thoroughbred racing associations. The state’s participation in the NTRA is intended to benefit California by promoting racing on a national level.
Historically, the NTRA has been supported by most of California’s racetracks and racing fairs. The NTRA is served by a board of directors that includes a representative from the Thoroughbred Owners of California (TOC). In 2015, California thoroughbred owners’, through the TOC, paid approximately $158,784.00 to the NTRA for the purpose of marketing horse racing. Similarly, in 2016, $140,119.00 was paid to the NTRA by the TOC.
Related/Prior Legislation
AB 2765 (Committee on Governmental Organization, Chapter 430, Statutes of 2014) among other things, reauthorized, until January 1, 2018, California’s participation in the NTRA marketing program and extended the sunset date from January 1, 2015, to January 1, 2019, for the statewide marketing organization.
AB 1074 (Atkins, Chapter 428, Statutes of 2013) extended the sunset date on the statewide marketing organization for one year from January 1, 2014, to January 1, 2015.
AB 2792 (Committee on Governmental Organization, Chapter 272, Statutes of 2010) among other things, extended the sunset date, from January 1, 2011, to January 1, 2014, on California's participation in the NTRA.
AB 1736 (Committee on Governmental Organization, Chapter 444, Statutes of 2007) among other things, extended the sunset date on California's participation in the NTRA and the statewide marketing organization.
AB 2502 (Wyland, Chapter 90, Statutes of 2002) extended the sunset date until January 1, 2008, on California's participation in the NTRA.
SB 27 (Maddy, Chapter 335, Statutes of 1998) among other things, created a private statewide marketing organization for thoroughbred and fair racing that is funded by .4% of the in-state off-track handle. The funds generated from this distribution are used to market California horse racing on a statewide basis.
SB 103 (Maddy, Chapter 10, Statutes of 1998) authorized, until January 1, 2004, the thoroughbred racing associations and fairs to set aside some money from purses for the purpose of joining the NTRA.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Thoroughbred Owners of California (source)
California Thoroughbred Breeders Association
None received
ARGUMENTS IN SUPPORT: Supporters believe that extension of the program is a vital investment in the future of California horse racing and will provide California thoroughbred owners with the continued ability to take a proactive role in promoting racing on a national level.
4/5/17 14:56:28
**** END ****
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Steven Glazer
Chair
2017 - 2018 Regular
Bill No: 165 Hearing Date: 3/14/2017
Author: | |||
Version: | 1/19/2017 Introduced | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Naomi Padron | ||
SUBJECT: Horse racing: national thoroughbred racing marketing program.
DIGEST: This bill extends the sunset date from January 1, 2018, to January 1, 2022, that requires any racing association or fair that conducts thoroughbred racing to pay a specified amount from owner’s purses to help fund a national marketing program.
ANALYSIS:
Existing law:
- Provides that the California Horse Racing Board (CHRB) regulates the various forms of horse racing authorized in this State.
- Requires, until January 1, 2018, that any racing association, including fairs, which conduct thoroughbred racing to pay an additional 1.75% of the portion of the takeout distributed as owners' purses to the owners' organization contracting with the association for the purpose of promoting thoroughbred racing in conjunction with a national thoroughbred racing marketing program.
- Stipulates that any funds not used for this purpose be returned to the respective purse pools of the racing association from where the contributions originated.
- Requires the owners' organization to file an annual report with the CHRB and the Governmental Organization Committees of both the Senate and the Assembly to account for the receipt and expenditure of these funds.
- Authorizes the board of directors of the owners' organization to select the national marketing organization used for this program, and whether or not their funding for the program should continue.
This bill extends the sunset date until January 1, 2022, on a provision requiring any racing association or fair that conducts thoroughbred racing to pay an additional 1.75% from owners' purses to help fund a national marketing program for the purpose of promoting thoroughbred racing.
Background
Purpose of the bill. According to the author’s office, “The popularity of horse racing as both a sport and industry has suffered, due to the industry’s inability to expand its market share and attract new customers. Moreover, the industry has experienced difficulty competing with other more popular forms of gambling, such as those games offered by the state lottery, card clubs and casino gambling in Nevada or Indian reservations. In 1998, to help address this decline, thoroughbred racing interests from across the country formed the National Thoroughbred Racing Association (NTRA).”
This bill addresses the state’s participation in the NTRA, which is intended to increase interest in horse racing through national marketing and advertising. The California thoroughbred owners’ legal authority to participate in the NTRA is set to expire on January 1, 2018.
The National Thoroughbred Racing Association. The NTRA is a broad-based coalition of more than 100 horse racing interests and thousands of individual stakeholders consisting of horseplayers, racetrack operators, owners, breeders, trainers and affiliated horse racing associations. The primary objective of NTRA is to develop and implement a comprehensive marketing strategy. Funding for this program comes from racing interests outside of the state, as well as California's thoroughbred racing associations. The state’s participation in the NTRA is intended to benefit California by promoting racing on a national level.
Historically, the NTRA has been supported by most of California’s racetracks and racing fairs. The NTRA is served by a board of directors that includes a representative from the Thoroughbred Owners of California (TOC). In 2015, California thoroughbred owners’, through the TOC, paid approximately $158,784.00 to the NTRA for the purpose of marketing horse racing. Similarly, in 2016, $140,119.00 was paid to the NTRA by the TOC.
Prior/Related Legislation
AB 2765 (Committee on Governmental Organization, Chapter 430, Statutes of 2014) among other things, reauthorized, until January 1, 2018, California’s participation in the NTRA marketing program and extended the sunset date from January 1, 2015, to January 1, 2019, for the statewide marketing organization.
AB 1074 (Atkins, Chapter 428, Statutes of 2013) extended the sunset date on the statewide marketing organization for one year from January 1, 2014, to January 1, 2015.
AB 2792 (Committee on Governmental Organization, Chapter 272, Statutes of 2010) among other things, extended the sunset date, from January 1, 2011, to January 1, 2014, on California's participation in the NTRA.
AB 1736 (Committee on Governmental Organization, Chapter 444, Statutes of 2007) among other things, extended the sunset date on California's participation in the NTRA and the statewide marketing organization.
AB 2502 (Wyland, Chapter 90, Statutes of 2002) extended the sunset date until January 1, 2008, on California's participation in the NTRA.
SB 27 (Maddy, Chapter 335, Statutes of 1998) among other things, created a private statewide marketing organization for thoroughbred and fair racing that is funded by .4% of the in-state off-track handle. The funds generated from this distribution are used to market California horse racing on a statewide basis.
SB 103 (Maddy, Chapter 10, Statutes of 1998) authorized, until January 1, 2004, the thoroughbred racing associations and fairs to set aside some money from purses for the purpose of joining the NTRA.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
SUPPORT:
Thoroughbred Owners of California (Source)
California Thoroughbred Breeders Association
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: Supporters believe that extension of the program is a vital investment in the future of California horse racing and will provide California thoroughbred owners with the continued ability to take a proactive role in promoting racing on a national level.
Bill Author
Bill Co-Author(s):