BILL ANALYSIS Bill No: AB 2201 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Roderick D. Wright, Chair 2009-2010 Regular Session Staff Analysis AB 2201 Author: Coto As Amended: April 15, 2010 Hearing Date: June 29, 2010 Consultant: Art Terzakis SUBJECT Horse Racing: harness racing: the Cane Pace DESCRIPTION AB 2201 authorizes the California Horse Racing Board (CHRB) to permit a California harness racing association to accept wagers on the full card of races conducted by another racing association on the date of the "Cane Pace." EXISTING LAW Existing law grants the CHRB the authority to regulate the various forms of horse racing authorized in this state. Existing law authorizes a licensed harness racing association that is conducting a live racing meeting in this state to accept wagers on the full card of races conducted by another racing association on the day that other association conducts the Breeder's Crown Stakes, the Meadowlands Pace, Kentucky Futurity the Hambletonian, or the North American Cup. Existing law authorizes a licensed quarter horse racing association that is conducting a live racing meeting in this state to accept wagers on races conducted by the racing association that conducts the American Quarter Horse Racing Challenge, if the races are conducted on the same day as the American Quarter Horse Racing Challenge. AB 2201 (Coto) continued Page 2 Existing law authorizes the inclusion of wagers authorized pursuant to this section in the pari-mutuel pools of the out-of-state association that conducts the races on which the wagers are placed. BACKGROUND Purpose of AB 2201: This measure will allow a harness racing association in California to import all of the races conducted on Cane Pace day, irrespective of the six-race day limit. The Cane Pace is a harness horse race run annually since 1955. In 1956 the race joined with the Little Brown Jug and the Messenger Stakes to become the first leg in the Triple Crown of Harness Racing for Pacers. Since 1998, the race has been held at the Freehold Raceway in Freehold Borough, New Jersey. Established in 1853, Freehold Raceway is the oldest half-mile racetrack in the United States. AB 2201 is intended to provide the California harness racing industry a marketing tool to increase on-track and off-track attendance on this specific day. This measure is also intended to provide the industry with a mechanism to increase track commissions, purses, and breeder's awards. Harness Racing: Harness racing is a form of horse-racing in which standardbred horses race in a specified gait, either trotting or a faster gait called pacing. The driver sits in a two-wheeled cart pulled by the horse. In California, harness racing is held exclusively at Cal Expo in Sacramento. For 2010, the harness racing meets are scheduled from December 26, 2009 to June 19, 2010 and from August 13, 2010 to December 18, 2010. PRIOR/RELATED LEGISLATION AB 136 (Silva) Chapter 221, Statutes of 2009. Provided for the northern California harness racing industry relief from the limitation on the number of harness races that may be imported into California annually for satellite simulcast while retaining the per-day restriction. SB 1635 (Negrete McLeod) 2007-08 Session. Would have lifted the cap on the number of races that can be imported into California for satellite wagering purposes from 23 to 40 per day. (Died in Assembly Appropriations Committee) AB 2201 (Coto) continued Page 3 AB 2048 (Silva) Chapter 439, Statutes of 2008. Among other things, allowed harness and quarter horse racing associations and fairs to offer wagering on eight harness or quarter horse races broadcast by satellite on each day live races are run. AB 3074 (Government Organization) Chapter 510, Statutes of 2008. Among other things, authorized the CHRB to allow harness racing tracks to accept wagers during the Kentucky Futurity. Also, increased from 23 to 32 the total number of thoroughbred races that may be imported statewide for satellite wagering by associations or fairs and deleted the statewide limitation on satellite wagering at the total number of thoroughbred races on which wagers were accepted in 1998. SB 379 (Denham) Chapter 443, Statutes of 2007. Added the "Dubai World Cup" to a specified day of races that would be exempted from the 23-race day limit on imported races for satellite wagering. AB 241 (Price) Chapter 594, Statutes of 2007. Among other things, authorized all fairs to operate a satellite wagering facility off of the fair grounds. In addition, authorized the establishment of up to 45 "mini-satellite" wagering sites to be operated by private industry throughout the state. AB 1736 (Governmental Organization) Chapter 444, Statutes of 2007. Added the "Travers Stakes" to a specified day of races that would be exempted from the 23-race day limit on imported races for satellite wagering. AB 509 (Jerome Horton) Chapter 235, Statutes of 2004. Allowed a thoroughbred racing association or fair to import the audiovisual signal, and accept wagers on, the results of out-of-country thoroughbred races. SB 1183 (Margett) Chapter 232, Statutes of 2004 . Provided Harness and Quarter Horse racing parity with the Thoroughbreds by authorizing them to import the full cards of races held by the association hosting the Breeder's Crown Stakes, the Meadowlands Pace, the Hambletonian, or the North American Cup on the days that those races are being run. AB 2201 (Coto) continued Page 4 SB 27 (Maddy) Chapter 335, Statutes of 1998. Among other things, authorized wagering on the results of out-of-state thoroughbred races provided that the total number accepted statewide in any given year does not exceed the total number of thoroughbred races on which wagers were accepted in 1998. Also, capped the total number of thoroughbred races imported at 23 per day. SUPPORT: California Harness Horsemen OPPOSE: None on file as of June 25, 2010. FISCAL COMMITTEE: Senate Appropriations Committee **********