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

                                   **********