BILL ANALYSIS
Bill No: SB
1072
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 1072 Author: Calderon
As Amended: August 30, 2010
Hearing Date: August 31, 2010
Consultant: Arthur Terzakis
SUBJECT
Horse Racing Law
DESCRIPTION
SB 1072 makes the following substantive changes and
additions to California's Horse Racing Law: (1) requires
thoroughbred racing associations and fairs to deduct an
additional amount of the total handle on exotic wagering
(e.g., exacta, trifecta, superfecta) for purse
augmentation; (2) authorizes the California Horse Racing
Board (CHRB) to license entities to operate "exchange
wagering" systems, as defined, that accept exchange wagers
from individuals residing either within or outside of this
state on horse races run in California or other states and
makes it explicit that exchange wagering shall not become
operative until May 1, 2012 ; (3) requires each exchange
wagering licensee to annually distribute a specified amount
of exchange wagering revenue to the existing jockey health
and benefit welfare fund; (4) authorizes the thoroughbred
racing industry to use monies from horse racing wagering
pools to promote the Breeders' Cup, in order that
California might be considered the permanent home of this
championship series of races; (5) extends the sunset, from
January 1, 2011 to January 1, 2014, on provisions that
authorize racing associations and fairs that conduct
thoroughbred racing to pay to the owners' organization a
certain portion of the purses for a statewide marketing
program, as specified, to increase interest in horse
racing; and (6) provides that an amount not to exceed 0.05%
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of the total amount handled by each satellite wagering
facility shall be distributed to the nonprofit organization
designated by the CHRB for the purpose of maintaining a
database of horse racing information, as defined.
Specifically, this measure:
1. Makes various legislative findings relative to the
economic importance of the Breeders' Cup Championship
series and declares that it is not only the desire of the
Legislature to encourage the organization operating this
prestigious international event to make California its
permanent home but also the intent of the Legislature to
provide substantial support towards that endeavor.
2. Also, makes additional findings and declarations
relative to the fact that California has one of the
lowest "takeouts" on wagering and concern that horse
owners are not bringing their horses to California
because of lower purses and horses are leaving the state
in order to compete for higher purses.
3. Provides that every thoroughbred racing association or
fair that conducts a live race meet shall deduct an
additional 2% of the total amount handled on exotic
wagers requiring the selection of two wagering interests
(e.g., exactas, quinellas) and 3% of the total amount
handled on exotic wagers requiring the selection of three
or more wagering interests (e.g., trifectas,
superfectas). (The additional takeout is intended to
augment purses.)
4. Provides that any thoroughbred association or fair that
authorizes betting systems located outside of this state
to accept wagers on a race shall retain from the total
amount received from the out-of-state betting system,
less certain deductions made pursuant to existing
provisions of law, the incremental amount received as a
result of the 2% or 3% takeout referenced above on exotic
wagers required by this measure, for distribution as
overnight purses.
5. Grants the CHRB the authority to postpone or revoke
implementation of the takeout increase, as specified.
6. Adds a new Article (Article 9.1) to the Horse Racing
Law authorizing "exchange wagering" and declares that the
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Legislature has determined that the CHRB is best suited
to oversee, license, and regulate exchange wagering in
California. Also, declares legislative intent to promote
the economic future of the horse racing industry in
California and to foster the potential for increased
commerce, employment and recreational opportunities by
authorizing exchange wagering.
7. Defines a host of new terms, as specified, for purposes
of exchange wagering including the term "exchange
wagering" which means a form of parimutuel wagering in
which two or more persons place identically opposing
wagers in a given market.
8. Stipulates that exchange wagering shall only be
conducted by an exchange wagering licensee pursuant to a
valid exchange wagering license issued by the CHRB.
Also, provides that no exchange wagering licensee may
accept wagers prior to 05/01/2012.
9. Makes it explicit that no exchange wagering licensee
shall accept exchange wagers on races conducted in
California from a resident of California or a resident of
a jurisdiction outside California, or conducted outside
California from a resident of California, unless an
exchange wagering agreement, as defined, exists allowing
such wagers. Additionally, exchange wagering must be
conducted pursuant to and in compliance with the federal
Interstate Horseracing Act of 1978.
10. Defines "exchange wagering agreement" to mean a written
agreement by and among the applicable exchange wagering
licensee, the applicable racing association or racing
fair conducting live racing in this state and the
horsemen's organization responsible for negotiating purse
agreements for the breed on which exchange wagers are
accepted, provided that the terms and conditions for the
permitted use of signal by the exchange wagering
licensee, and the compensation to the applicable racing
association or racing fair and the horsemen's
organization include certain specified provisions.
11. Requires the CHRB to promulgate rules and regulations
governing the conditions under which exchange wagering
may be conducted, including requiring an annual audit of
an exchange wagering licensee. Also, would allow exchange
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wagers to be submitted and accepted by licensed exchange
wagering systems in the same manner as is currently
provided for Advanced Deposit Wagers (e.g., in person,
telephone, or Internet).
12. Requires the CHRB, prior to promulgating rules and
regulations under which exchange wagering may be
conducted, to consider studies or comments submitted by
interested parties on the impact of exchange wagering on
parimutuel wagering and the economics of the State's
horse racing industry to assist the board in developing
rules, regulations and conditions for exchange wagering
that are in the best interest of the public and the
industry.
13. Provides that only persons 18 years of age or older
could establish exchange wagering accounts and requires
the CHRB to approve security policies and safeguards to
ensure player protections, age verification and location.
14. Directs the CHRB to adopt rules prohibiting any owner,
trainer, jockey, or stable employee from placing an
exchange wager on any horse owned, trained, or ridden by
any of those individuals.
15. Includes language (similar to Advance Deposit Wagering
law) relative to supporting the contracting rights of
parimutuel clerks that have been displaced due to the
increased automation of the wagering process, in addition
to a specific distribution to the existing jockey health
and benefit welfare fund.
16. Provides that monies that would have been otherwise
distributed to a purse account from the increased takeout
on Breeders' Cup day(s) shall be available for the
purpose of promoting and sponsoring the Breeders' Cup.
17. Also, requires the host track of the Breeders' Cup to
enter into a written agreement with the Breeders' Cup,
LTD, in consultation and cooperation with the California
Tourism Commission and the statewide marketing
organization relative to the manner in which the funds
set aside to support and promote the Breeders' Cup are to
be expended.
18. Furthermore, requires that a written report be made to
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the CHRB detailing the manner in which the set aside
funds were utilized to promote and support the Breeders'
Cup.
19. Extends the sunset, from January 1, 2011 to January 1,
2014, on provisions that authorize racing associations
and fairs that conduct thoroughbred racing to pay to the
owners' organization a certain portion of the purses for
a statewide marketing program, as specified, to increase
interest in horse racing.
20. Requires the statewide marketing plan for horse racing
to be presented (rather than submitted) to the Horse
Racing Board at the CHRB's November meeting. Also,
requires the written plan be submitted to the board by
November 1st of each year.
21. Changes the distribution amount that would normally be
available for commissions and purses, from 0.4% to an
amount not to exceed 0.25% of the total amount handled by
each satellite wagering facility which is then
distributed to the marketing organization, as specified.
22. Provides that an initial amount of 0.05% of the total
amount handled by each satellite wagering facility shall
be distributed to the nonprofit organization designated
by the CHRB for the purpose of maintaining a database of
horse racing information as defined.
23. Requires the marketing organization, on a quarterly
basis, to submit to the CHRB a report accounting for all
receipts and expenditures of the promotion funds during
the previous three months.
24. Deletes obsolete language regarding workers'
compensation responsibilities associated with the
statewide marketing association.
EXISTING LAW
Article IV, Section 19(b) of the Constitution of the State
of California provides that the Legislature may provide for
the regulation of horse races and horse race meetings and
wagering on the results.
Existing law provides that the California Horse Racing
Board (CHRB) shall regulate the various forms of horse
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racing authorized in this state.
Existing law provides that "parimutuel wagering" is a form
of wagering in which bettors either purchase tickets of
various denominations, or issue wagering instructions
leading to the placement of wagers, on the outcome of one
or more horse races. When the outcome of the race or races
has been declared official, the association distributes the
total wagers comprising each pool, less the amounts
retained for purposes specified in this chapter, to winning
bettors.
Existing law requires racing associations to pay out
certain percentages of the total amount wagered and of the
portion deducted from the parimutuel pool (i.e., the
takeout), for state license fees, owner purses, racing
association commissions, and breeding incentive programs.
The amounts vary depending upon the type of breed bet upon
(Thoroughbred, Quarter Horse, harness, etc.), the type of
bet made (e.g., conventional or exotic), and whether the
wager was made on-track or at a satellite wagering
facility.
Existing law authorizes a Thoroughbred association or fair,
at the joint request of the association or fair and the
organization representing the horsemen, and subject to
approval of CHRB, to deduct from the parimutuel pool for
any type of wager, an amount of 10% to 25%, inclusive, of
the total amount handled for the meeting of the
thoroughbred association or fair that accepts the wager.
Existing law allows the distribution of funds from the
amount deducted to be modified or redirected, subject to
the approval of CHRB, as specified.
Existing law permits CHRB to set the deduction for any new
type of wager introduced after January 1, 2004, in an
amount of not less than 10% nor more than 30% at the joint
request of an association or fair and the horsemen's
organization.
Existing law authorizes a quarter horse association,
subject to approval by the CHRB, and a harness racing
association to deduct up to two percent more from the total
amount wagered in the parimutuel pool for any type of
wager, and, specifies how the funds shall be distributed to
eligible satellite wagering facilities, owners' purses and
racetrack commissions.
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Existing law provides that unclaimed refunds from horse
racing are to be distributed to an organization that is
responsible for negotiating business agreements on behalf
of horsemen, to be held in trust for the purpose of
negotiating an agreement with a jockey's organization to
provide health and welfare benefits to California licensed
jockeys. Existing law requires that the funds held in
trust shall not exceed $450,000.
Existing law authorizes racing associations, fairs, and the
Thoroughbred Owners of California (TOC) to form a private
statewide marketing organization to market and promote
thoroughbred and fair horse racing. The California
Marketing Committee (CMC) is generally responsible for
promoting horse racing in the state by developing and
implementing a marketing plan that will increase on-track
and off-track attendance throughout the state. The CMC is
required to submit an annual marketing and promotion plan
to the California Horse Racing Board (CHRB). These
provisions sunset as of January 1, 2011.
Existing law provides for the California Travel & Tourism
Commission (CTTC). The CTTC is a not-for-profit, 501(C)(6)
corporation formed in 1998 to work jointly with the State
of California's Division of Tourism to implement the annual
Marketing Plan, which promotes California as a travel
destination. While these two partners (CTTC and Division of
Tourism) are separate legal entities, they are commonly
referred to jointly as California Tourism.
BACKGROUND
Takeout Rate Component : The "takeout" is the amount
deducted from wagers before winnings are paid out to
bettors. The state, racetracks, breeders, and horsemen
through purses, receive a distribution from the takeout.
Currently, California's takeout rate on Thoroughbred races
is 15.43% for win, place, and show wagers, and 20.68% for
other types of wagers (i.e., Exacta, Trifecta, and Pick-6).
Over the last couple of years, there has been a movement
within the racing industry in other states to have greater
flexibility to either lower or increase the takeout. For
instance, Keeneland Racetrack in Kentucky and Saratoga in
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New York lowered their takeout structure while the Maryland
Jockey Club increased their parimutuel takeout. The
various racing jurisdictions experienced varied results
after altering the takeout.
Many within the racing industry have a view that moderating
takeout rates on specific pools might stimulate handle as
well as overall revenue for purses. Today's racing
customer is not just a local resident who comes to a
California racetrack but a patron sitting in a simulcast
facility in another state with a wide choice of tracks to
wager on. Ultimately, racing's patrons drive the
parimutuel market and their response to an increased or
decreased takeout on any type of wager will determine the
rate of takeout. Many within the racing industry have a
view that moderating takeout rates on specific pools might
stimulate handle as well as overall revenue for purses.
AB 1308 (Torrico), Chapter 410, Statutes of 2007, gave a
racing association and the owners' organization
flexibility, subject to CHRB approval, to set takeout rates
at an amount of not less than 10% nor more than 25% from
the parimutuel pool for any type of wager. AB 1308
provided the horse racing industry with greater flexibility
to make adjustments to the takeout.
This measure would expand on the concept contained in AB
1308 by directing the increased takeout (2% - 3%) directly
to purses which benefits owners, trainers, and jockeys.
This measure is intended to allow greater flexibility to
direct the distribution of funds generated by a takeout
increase to an area with the greatest economic benefit for
the industry. This measure is also intended to enable the
California racing industry to increase its competitiveness
by establishing purses more consistent with purses in other
major racing states (e.g., New York, Pennsylvania, West
Virginia, Delaware, Iowa, Indiana, Louisiana, New Mexico,
and Florida) that benefit from the operation of slot
machines and video lottery terminals, which are prohibited
at California racetracks. Even with an increase in the
takeout rate, California would still rank among the top
twenty lowest takeout structures on specific exotic wagers
in the country. Proponents indicate that the increased
takeout revenue would be focused on an agreed upon strategy
for stabilizing industry operations.
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SB 1072 would allow the CHRB to postpone and/or revoke the
implementation of the takeout increase, as defined, if the
board determines that the incremental amount received from
out-of-state betting systems is insufficient to achieve the
objective.
Takeout Rate Comparisons : Currently, California has one of
the lowest takeouts on rates on exotic wagering (20.68%) in
the nation. Del Mar Thoroughbred Club, Santa Anita Park,
Hollywood Park, and Golden Gate Fields rank in the top ten
nationally for offering the lowest takeout rate on exotic
wagers.
Examples of a higher takeout rate (Thoroughbreds) for an
exotic wager (Trifecta) would be Fair Grounds in Louisiana
at 25%, Monmouth Park in New Jersey at 25%, Pimilco in
Maryland at 25.75%, Belmont Park and Saratoga Park in New
York at 26%, and Penn National in Pennsylvania at 31%
compared to California at 20.68%.
Even with the takeout increase as proposed, California will
still be in the middle-tier for its takeout on exotic
wagers compared to other racing prominent jurisdictions
across the country.
Deteriorating Status of the Horse Racing Industry in
California : The California horse racing industry's
long-term health is threatened by a combination of factors,
including competition from racing in other states, other
forms of gaming within California, racetrack bankruptcies
and the potential for higher return from development than
operating revenues. As resources shrink, the industry is
experiencing deficits in virtually every one of its revenue
sources. Traditional take out, allocation and distribution
formulas are no longer able to sustain ongoing operations.
As the value of racing operations declines, track ownership
is struggling to maximize shareholders' return on the
investment and tempted by alternative uses of the property
that yield higher returns. Consequently, the racing
industry is suffering unprecedented instability and capital
flight. Tens of thousands of industry jobs are in
immediate jeopardy, along with breeding farms and precious
open space in urban centers throughout California. Also at
risk is a substantial amount of local and state revenue
generated both directly and indirectly by the industry.
Exchange Wagering Component: This measure would
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additionally authorize the CHRB to license entities to
operate exchange wagering systems that accept "exchange
wagers" from individuals residing either within or outside
of this state on horse races run in California or in other
states, so long as the process is conducted in compliance
with the federal Interstate Horseracing Act. Exchange
wagering is defined as a means of parimutuel wagering in
which two or more persons place identically opposing wagers
on a horse race. SB 1072 would require exchange wagering
agreements to be entered into by the exchange wagering
licensee, the applicable racing association or fair
conducting live racing in the state, and the horsemen's
organization representing the particular breed currently
racing at the meet, and that provides for the contractual
terms and conditions specifying the use of the racing
signal and the compensation returned to the respective
parties to the agreement, audit terms and conditions, and
contractual remedies.
Exchange wagering on horse racing is currently permitted in
England, where it has been reported to have contributed to
a double-digit increase in wagering handle as well as
helping to appeal to a different segment of the betting
public that generally did not gravitate to conventional
parimutuel wagering opportunities. Similar legislation has
been introduced and is moving through the New Jersey State
Legislature as well.
Wagering on horse races in California is conducted using
the "parimutuel method" in which bettors are betting
against each other, with no other entity having an interest
or stake in the outcome of the race.
In traditional parimutuel wagering, each bettor selects the
horse or horses they choose to wager on an outcome (how
those individual horses will finish in a race - Win, Place,
and Show wagering) or the order of finish for multiple
numbers of horses (exotic wagers such as exacta, trifecta,
superfecta), and the amount which they desire to wager. The
odds on any particular horse are determined by the total
amount bet on the race by the individual bettors. The bets
made are pooled together and the parimutuel operator is
responsible for paying the winning bets from that pool.
In parimutuel "exchange wagering" (which involves bettors
betting against each other, with no other entity having an
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interest or stake in the outcome of the race), each bettor
again selects a horse, an outcome, and the amount the
bettor desires to wager. Another bettor can match that
wager, choosing to wager the opposite of the original
wager. For example, if bettor "A" thinks a horse will win
a race and would like to wager $2 to win on that horse at
1-1 odds, bettor "B" can match the wager for $2 at 1-1 odds
if bettor B has the opinion that the horse will not win the
race. When wagers are matched, they are pooled together
and the parimutuel exchange wagering operator is
responsible for paying the winning bettors out of the pool
(just as is the case in all other forms of parimutuel
wagering on horse races in California.) Parimutuel
exchange wagering is limited to win, place and show
wagering.
The racing industry derives revenue from traditional
parimutuel wagering from a "takeout" or "commission" that
is charged on every wager placed in the pool, and from
parimutuel exchange wagering from a "commission" that is
charged only on a bettor's net winnings on a particular
race. In either case, those revenues are shared among the
horse owners (purses), the race tracks and the provider of
the parimutuel wagering service.
Breeders' Cup Component: This measure is also intended to
encourage the Breeders' Cup to consider locating its series
of championship races on a permanent basis in California.
The State of California is in competition with the states
of Kentucky and New York to be the permanent home of the
Breeders' Cup, which is actively looking at a permanent
host location as a potential option as part of its ongoing
strategic planning initiative. The Breeders' Cup
Championship series of races were held in California in
2008 and 2009 and generated significant revenue and tourism
for the State.
It is a well known fact that the California horse racing
industry is in distress and has lost favor with the public,
primarily due to competition with other forms of gambling
and declining popularity of its own product. Yet the horse
racing industry in this state remains an important segment
of the economy, generating by some estimates almost 50,000
jobs. It is the author's belief that locating the Breeders'
Cup on a permanent basis in California would generate $60
million in economic output and create over 500 direct and
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Page 12
indirect jobs, according to the Los Angeles Economic
Development Corporation's estimate in relation to the 2009
Breeders' Cup that was held at Santa Anita racetrack. To
that end, this measure would stipulate that the monies that
would have otherwise been distributed to a purse account
from the increased takeout on Breeders' Cup day(s) shall be
available for the purpose of promoting and sponsoring the
Breeders' Cup.
Marketing Program Component: SB 27 (Maddy), Chapter 335,
Statutes of 1998, among its provision, created a private
statewide marketing organization for thoroughbred and fair
racing that is funded by 0.4 percent of the instate
off-track handle. The funds generated from this
distribution are used to market California horse racing on
a statewide basis. The California Marketing Committee
(CMC) is generally responsible for promoting horse racing
in the state by developing and implementing a marketing
plan that will increase on-track and off-track attendance
throughout the state. An underlying assumption of the
CMC's Marketing Plan is that it is far easier to capture a
new fan through an on-track visitation to a satellite
wagering facility.
In 2003, the CMC received approximately $6.1 million to
support its marketing efforts but due to handle declines it
has been reduced to approximately $4 million in 2010.
Current law provides that the CMC must annually submit to
the CHRB a statewide marketing and promotion plan for
thoroughbred and fair horse racing that encompasses all
geographical zones in the state, including the manner in
which funds were expended in the implementation of the plan
for the previous calendar year. Additionally, the 2010 CMC
budget redirects a portion of its marketing and advertising
funds to enhance purses on major racing days, such as the
Santa Anita Handicap, Hollywood Gold Cup, and Pacific
Classic. The CMC will expire after this year due to a
sunset provision in the law unless there is legislation to
extend it.
AB 1736 (Governmental Organization), Chapter 444, Statutes
of 2007, extended the sunset to January 1, 2011. SB 1072
will extend the sunset of the program until January 1,
2014. Additionally, SB 1072 makes various modifications to
the manner in which the marketing organization may expend
its revenue. Furthermore, SB 1072 contains language which
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Page 13
provides an amount not to exceed 0.05% of the total amount
handled by each satellite wagering facility shall be
distributed to the non-profit organization [the California
Horse Racing Information Management System, Inc (CHRIMS)]
designated by the CHRB for the purpose of maintaining a
database of horse racing information, as defined.
Proponents indicate that the original funding for the
development of CHRIMS was provided by un-cashed vouchers
[AB 1418 (Tucker), Chapter 311, Statutes of 1994]. As
account wagering has proliferated and on-track and
off-track wagering have experienced severe declines in
handle due to economic conditions the revenues from
vouchers have declined dramatically. CHRIMS has filled the
funding gap through the deferral of equipment and software
upgrades, direct industry surcharges and through the
development of outside revenues from services provided to
customers in other states. However, voucher revenues have
continued to decline and are projected to decline by
$125,000 in 2010. In addition, CHRIMS must repay capital
equipment financing provided by Oak Tree Racing Association
which was used to replace equipment on the verge of failure
and replace revenues from services previously provided to
the CMC for its player rewards and database marketing
efforts. Proponents contend that this measure will help
ensure that CHRIMS remains a valuable technology and
marketing tool for California's horse racing industry.
Arguments in Support: Proponents contend that SB 1072 is
about self-reliance, re-investing in California for growth,
and protecting jobs for the future. Proponents claim this
measure would potentially increase purses by $25 million or
more annually thereby placing California's purse structure
on a competitive basis with other states. Proponents also
argue that the higher purses will help increase field size
and provide increased handle. Furthermore, proponents
believe there are adequate safeguards (checks and balances)
in this measure to ensure that implementation of "exchange
wagering" will benefit California's horse racing industry.
Arguments in Opposition: Opponents are generally
supportive of the provisions in this measure pertaining to
the increase in the takeout on specified wagers as well as
the provisions intended to improve California's ability to
attract the Breeders' Cup World Championships however
SB 1072 (Calderon) continued
Page 14
opponents have expressed concern with the provisions
authorizing "exchange wagering." Opponents state that
"exchange wagering actually allows bettors using the
Internet to place bets that a horse will lose, rather than
win. This is fraught with danger and threatens the very
integrity of horse racing in our state which is a
multi-billion dollar industry, providing tens of thousands
of jobs. This also has the potential of actually reducing
on-track activity and could negatively impact jobs in the
future." Opponents believe that exchange wagering is a
major policy change in horse racing law that warrants major
study and discussion prior to adoption by the Legislature.
Staff Comments: As noted above, "exchange wagering" is a
form of gambling in which two or more persons place
directly opposing wagers on the outcome of horse races and
"sporting events." Typically, exchange wagering allows a
better to "back" or wager on a selected horse to win, with
another bettor "laying" or wagering on that same horse not
to win. A back and a lay become matched when a bettor lays
at the same price at which another bettor backs that same
outcome, with the amount subject to the lay being
proportionately commensurate to the amount subject to the
back. Exchange wagering allows the bettor to name his/her
own odds in the hopes of luring a match.
While the potential for positive industry effects is
present with exchange wagering, so too is the prospect for
disaster. Some within the industry believe that exchange
wagering may cannibalize traditional parimutuel wagering
and actually leave less money in the system for those
responsible for putting on the show, (e.g., owners,
breeders and racetracks), thus placing the future of horse
racing in jeopardy.
PRIOR/RELATED LEGISLATION
AB 2414 (Perez) 2009-10 Session. Would sunset the exchange
wagering provisions of SB 1072 (Calderon) on May 1, 2016.
(Pending in Senate Rules Committee)
SB 16xx (Ashburn), Chapter 12, Statutes of 2009-10 Second
Extraordinary Session. Among other things, provided that
beginning on July 1, 2009, and annually thereafter,
thirty-two million ($32,000,000) shall be appropriated from
the state's General Fund and paid into the Fair and
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Page 15
Exposition Fund for the financial support of the network of
California fairs.
SB 766 (Negrete McLeod) Chapter 766, Statutes of 2009.
Authorized the CHRB to shift money around from various
funds, including the marketing funds, which are in surplus,
to others that are in deficit, such as the Vanning and
Stabling Account.
SB 517 (Florez) Chapter 636, Statutes of 2009. Allowed a
thoroughbred association or fair, subject to the approval
of the CHRB, to alter the amount deducted from horse racing
wagering. Also, allowed the distribution of funds from the
amount deducted to be modified or redirected, subject to
the approval of CHRB.
AB 246 (Price) Chapter 226, Statutes of 2009. Authorized a
quarter horse associations, subject to approval by the
CHRB, and a harness racing association to deduct up to two
percent more from the total amount wagered in the
parimutuel pool for any type of wager, and, specified how
the funds shall be distributed to eligible satellite
wagering facilities, owners' purses and racetrack
commissions.
AB 1499 (Evans) Chapter 151, Statutes of 2009.
Reauthorized a fair to deduct an additional 0.5 percent of
the total amount handled in exotic parimutuel pools of
races for any breed, other than races solely for
thoroughbreds, to defray workers' compensation insurance
costs for trainers and owners who race at an applicable
fair.
AB 1308 (Torrico) Chapter 410, Statutes of 2007.
Authorized a Thoroughbred association or fair and the
horsemen's organization, subject to approval by CHRB, to
deduct an amount of not less than 10% nor more than 25%
from the parimutuel pool for any type of wager.
AB 1736 (Governmental Organization) Chapter 444, Statutes
of 2007. Among other things, extended the sunset on
provisions to enable racing associations and fairs to fund
taking part in the statewide horse racing marketing
program.
AB 765 (Evans) Chapter 613, Statutes of 2007.
SB 1072 (Calderon) continued
Page 16
Reauthorized horse racing's Advance Deposit Wagering law,
which was due to "sunset" on January 1, 2008, as specified.
In addition, provided that a fair, combination of fairs,
or an association conducting racing at a fair, may, with
CHRB approval, deduct an additional 1% from its handle, to
be used for maintenance and improvements at a fair's
racetrack inclosure, as specified.
AB 2164 (Plescia) Chapter 80, Statutes of 2004. Extended
the sunset on provisions to enable racing associations and
fairs to fund taking part in the statewide horse racing
marketing program to 2006.
AB 388 (Strickland) Chapter 174, Statutes of 2003.
Authorized CHRB to set the deduction for any new type of
wager introduced after January 1, 2004, in an amount of not
less than 10 percent nor more than 30 percent at the joint
request of an association or fair and the horsemen's
organization.
AB 2931 (Horton) Chapter 922, Statutes of 2002. Authorized
the racing associations to use funds earmarked for the CMC
for use in developing a program to off-set workers'
compensation rates for horse trainers in the state.
AB 2869 (Horton) Chapter 924, Statutes of 2002. Allowed
CHRB to authorize a racing association and the organization
representing horsemen to reduce the portion deducted from
the parimutuel pool for purses and commissions, provided
that the change only affected funds available for purses
and commissions.
AB 2502 (Wyland) Chapter 90, Statutes of 2002. Extended
the sunset on provisions to enable racing associations and
fairs to fund taking part in the National Thoroughbred
Racing Association (NTRA) to increase interest in horse
racing.
AB 471 (Hertzberg) Chapter 198, Statutes of 2001. Allowed
a California resident to wager on races (including most
out-of-state racetracks) using the phone, Internet or other
electronic media.
SB 27 (Maddy) Chapter 335, Statutes of 1998. Among other
things, granted major license fee relief ($40 million
annually) and limited out-of-state full-card simulcasting.
SB 1072 (Calderon) continued
Page 17
Also, created the CMC that is funded by 0.4 percent of the
in-state off-track handle.
SB 103 (Maddy) Chapter 10, Statutes of 1998. Provided for
California's involvement in the NTRA by permitting
thoroughbred owners to (pay to) take part in a national
marketing program to increase interest in horse racing.
SUPPORT : As of August 31, 2010:
California Authority of Racing Fairs
California Horse Racing Board
California Teamsters Public Affairs Council
California Thoroughbred Breeders Association
Del Mar Thoroughbred
Hollywood Park
Jockeys Guild
Los Angeles County Fair
Service Employees International Union
Thoroughbred Owners of California
TVG
UNITE HERE
OPPOSE : As of August 31, 2010:
California Thoroughbred Trainers
Churchill Downs Incorporated (Twin Spires, YouBet, and
United Tote)
California Coalition Against Gambling Expansion (CCAGE)
FISCAL COMMITTEE: Senate Appropriations Committee
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