Increases the maximum fine from $5,000 to $20,000, that can be imposed by the racing and wagering board for violations relating to horse racing

Section 2: Amends the Racing, Pari-mutuel, and Breeding Law section 310 to increase the fines that may be imposed by the Board for violations of such law related to harness racing from $5,000 to $20,000.

Section 3: Amends the Racing, Pari-mutuel, and Breeding Law section 410 to increase the fines that may be imposed by the Board for violations of such law related to quarter horse racing from $5,000 to $20,000.

Section 4: Amends the Racing, Pari-mutuel, and Breeding Law section 1005 to increase the fines that may be imposed by the Board for violations of such law related to simulcasting of racing signals from $5,000 to $20,000.

Existing law

Under existing law, the Board may impose fines of no more than $5,000 for a violation of the Racing & Wagering Law.

Justification

The Board needs the authority to impose heavier fines to ensure that all racing licensees adhere to the Racing Law. The current fines were first set at $5,000 53 years ago in 1953. In 1953, the United States had just ended the Korean War, Ike was sworn in as President, Joe DiMaggio had retired from baseball two years earlier, Mickey Mantle and Willie Mays had their rookie year two years earlier, and Gary Carter, a NY Mets catcher, was born one year later in 1954.

The value of a dollar in 1953 is now worth 13 cents in 2006 dollars. The fines, in 1953 dollars, have been substantially reduced in real terms due to the cost of inflation. $5,000 in fines (in 1953 dollars) would now be $ 38,500 in 2006 dollars if the fines had kept up with the rate of inflation. This bill merely increases the maximum fines from $ 5,000 to $ 20,000 not $ 38,500 as would be the case if the fines were to equal the real value of such fines in 1953 dollars.

Presently, the low fine limits have little deterrent affect to stop individuals from administering performance enhancing drugs to horses or committing other violations of the Racing Law. Further, with the advent of cell phones, video cameras and other telecommunications technology, banning a trainer from the race course grounds no longer effectively punishes or removes such a individual from participating in the conduct of horse racing or advising his or her employees on how to prepare a horse prior to a race. While the Board might be able to subpoena telephone records of a sanctioned individual to determine if such person was improperly in communication with his or her racing staff at the track, such an enforcement tactic is both expensive and impinges on individual civil liberties. Increasing the fine structure is a much more effective way to ensure that violations of the Racing Law do not occur and encourage racing licensees to comply with the law.

Legislative history

S.6983 of 2006

Fiscal implications

None.

Local fiscal implications

None.

Effective date

Immediate.