BILL ANALYSIS Ó AB 280 Page 1 Date of Hearing: May 11, 2011 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Isadore Hall, Chair AB 280 (Silva) - As Amended: March 14, 2011 SUBJECT : Horse racing: California-bred horses and parimutuel tickets. SUMMARY : Changes the definition of a California-bred standardbred horse to delete the requirement that the standardbred foal be conceived in California, as specified. Specifically, this bill : 1) Revises the definition of a California-bred standardbred horse to delete the requirement that the standardbred foal be conceived in California, in order to qualify for the California Standardbred Sires Stakes Program (CSSSP) 2) Deletes the requirement that base purses for each set of races be equal for all two-year-old and three-year-old races regardless of sex and gait, including the exception described above requiring a minimum base purse of 75% of the original base purse if divisions are raced, and instead require that all base purses for each set of races conducted during any given year at any race meeting be determined by the California Standardbred Sires Stakes Committee (CSSSC). 3) Makes a technical, non-substantive change to a provision relating to altering or counterfeiting, or attempting to alter or counterfeit, any pari-mutuel ticket. EXISTING LAW : 1) Provides the California Horse Racing Board (CHRB) is responsible for adopting rules and regulations for the protection of the public and the control of horse racing and pari-mutuel wagering, as well as enforcing all laws, rules, and regulations dealing with horse racing and pari-mutuel wagering. 2) Establishes a CSSSP for standardbred horses, including harness horses, bred in this state. 3) Defines a "California-bred standardbred horse" as a standardbred foal conceived in California by a stallion AB 280 Page 2 registered with the CSSSP. 4) Requires that CSSP races be scheduled for 2-year-old and 3-year-old trotters and 2-year-old and 3-year-old pacers at the discretion of the CSSSC, except as specified. 5) Requires that base purses for each set of races, as defined, conducted during any given year at any race meeting be determined by the committee and requires that those purses be equal for all 2-year-old and 3-year-old races regardless of sex and gait, except that, if divisions are raced, the base purse for each division shall be no less than 75% of the original base purse and, if elimination heats are raced, the base purse shall be determined by the CSSSC. 6) Prohibits any person from altering or counterfeiting, or attempting to alter or counterfeit, any pari-mutuel ticket. FISCAL EFFECT : This bill has been keyed non-fiscal by Legislative Counsel. COMMENTS : Purpose of the bill : The sponsor of this measure, the California Harness Horsemen's Association, points out that the California Legislature created the California Standardbred Sires Stakes Committee (CSSSC) in 1977 to "encourage agriculture and the breeding of horses in California." In short, the CSSSC's purpose is to provide financial incentives for the breeding and development of standardbred racehorses. In 2010, over $800,000 was distributed in purse awards to owners, trainers, drivers, breeders and sire owners of horses placing first through fifth in all stakes races. The sponsor states a change to the current definition of a Cal-bred standardbred is necessary due to the decline in the number of standardbred sires in California. The decline of the harness racing industry has resulted in fewer stallions standing in California for breeding purposes. The CSSP was established before artificial insemination (AI) was permitted for breeding standardbred horses in California. Now AI is permitted. AI has had far-reaching effects: the ability to breed a stallion to a larger number of mares and the strengthening of the speed and power of the modern standardbred AB 280 Page 3 horse. The sponsor states, this bill allows for the CSSSP to adjust to economic and industry changes, by allowing a foal which is the product of AI, to be eligible for the Sire Stakes series races, purses and awards even if the standardbred foal was not conceived in California. Furthermore, the bill would also delete the requirement that base purses for each set of CSSSP races be equal for all two-year-old and three-year-old races regardless of sex and gait of the horse, as defined. The base purses will now be determined by the CSSSC. By law, the CSSSC provides oversight and administration of the Sires Stakes Fund and all related Sires Stakes programs including the California Stallion Register, Sires Stakes eligibility and staked generations, Sires Stakes series races, purses and awards. Lastly, AB 280 makes a technical, non-substantive change to a provision of current law relating to altering or counterfeiting, or attempting to alter or counterfeit, any pari-mutuel ticket Prior legislation : AB 2538 (Strickland), Chapter 278, Statutes of 2004. Changed the definition of a California standardbred horse for these purposes to a standardbred foal conceived in California by a stallion registered with the California Standardbred Sire Stakes Program, deleting the requirements in existing law that the mare drop the horse in California after the conception. SB 738 (Karnette), Chapter 24, Statutes of 2003. Defines a "California bred standardbred horse" as a standardbred foal dropped by a mare in California after being conceived in California by a stallion registered with the California Standardbred Sires Stakes Program (CSSSP). REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file AB 280 Page 4 Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531