BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 605
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          ASSEMBLY THIRD READING
          AB 605 (Portantino)
          As Introduced  February 25, 2009
          2/3 vote.  Appropriation

           GOVERNMENTAL ORGANIZATION 16-0  APPROPRIATIONS      16-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Price, Anderson, Chesbro, |Ayes:|De Leon, Nielsen,         |
          |     |Cook,                     |     |Ammiano,                  |
          |     |De Leon, Evans, Galgiani, |     |Charles Calderon, Davis,  |
          |     |Hall, Hill, Lieu,         |     |Duvall, Krekorian, Hall,  |
          |     |Mendoza, Nestande,        |     |Harkey, Miller,           |
          |     |Portantino, Torres,       |     |John A. Perez, Price,     |
          |     |Torrico, Tran             |     |Skinner, Solorio, Audra   |
          |     |                          |     |Strickland, Torlakson     |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Allows Thoroughbred horse racing results to be  
          included in proposition pari-mutuel pool wagers.  

           EXISTING LAW  :

          1)Provides that CHRB regulate the various forms of horse racing  
            authorized in this state.

          2)Requires various deductions and distributions to be made from  
            pari-mutuel pools as specified.

          3)Defines "conventional pari-mutuel pool" as the total wagers on  
            any horse or horses in a particular race to win, place, or  
            show.

          4)Defines "exotic pari-mutuel pool" as the total wagers on the  
            finishing position of two or more horses in a particular race,  
            such as a quinella or exacta wager, or on horses to win two or  
            more races, such as a daily double, pick six wagers, or on  
            other wagers approved by CHRB.

          5)Defines a "proposition pari-mutuel pool" as the total wagers  
            under the pari-mutuel system on propositions approved by the  
            board that are based on the results of a live Quarter horse or  








                                                                  AB 605
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            harness horse race or races.

          6)Permits CHRB, upon the request of the association or fair  
            accepting the wager, and the organization of participating  
            horsemen, to set the percentage deducted from the pari-mutuel   
                      pool for any new wager introduced after January 1,  
            2004, as specified.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, potential increase in revenue available to fund the  
          CHRB and the Kenneth L. Maddy Equine Analytical Laboratory at  
          the University of California, Davis due to increased wagering  
          opportunities.

           COMMENTS  :  According to the author, this bill will also allow an  
          association, which conducts Thoroughbred racing to offer,  
          "propositional wagering" on a thoroughbred race.  For instance,  
          this simplified form of betting would allow an individual to  
          choose between odd or even bets, "will" or "will not" wagers, or  
          head to head horse wagers.  Currently, Quarter horse and harness  
          racing associations can offer this type of wagering while  
          operating a live race meet in California on the respective  
          breeds.

          AB 605 will allow all segments of the industry to take advantage  
          of this new type of wager, and in the process, create the  
          potential for new revenue for California's horse racing industry  
          as well as new fans for the sport.

          Supporters indicate that propositional wagers are useful as a  
          marketing tool to increase public awareness of special events,  
          such as the Kentucky Derby, the Preakness Stakes, the Belmont  
          Stakes and the Breeders' Cup. 

          Incidentally, to date, CHRB has not approved any propositional  
          wagering for Quarter horse or harness races since the law was  
          instituted in 1996 and amended in 2005.  Supporters note that  
          this will change because Thoroughbred interests believe this  
          type of wager can be used to stimulate attendance and  
          participation in horse racing at the live track and satellite  
          facilities.

          This bill is somewhat identical to AB 315 (Wright) and AB 2753  
          (Strickland), which were both vetoed by the Governor during the  








                                                                  AB 605
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          1999-2000 legislative session.  
           
          Prior legislation  :  AB 834 (Jones), Chapter 119, Statutes of  
          2005, contained a provision, which allowed harness racing  
          results to be included in proposition pari-mutuel pool wagers.

          SB 1439 (Ayala), Chapter 551, Statutes of 1996.  Created a new  
          category of wager available at Quarter horse races called the  
          "propositional" wager.

           
          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531 


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