BILL ANALYSIS                                                                                                                                                                                                    Ó






                                                       Bill No:  AB 
          280
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2011-2012 Regular Session
                                 Staff Analysis


          
          AB 280  Author:  Silva
          As Amended:  March 14, 2011
          Hearing Date:  June 28, 2011
          Consultant:  Art Terzakis

                                         
                                    SUBJECT  
                                  Horse Racing

                                   DESCRIPTION
           
          AB 280 modifies the definition of a California-bred 
          standardbred horse and revises an existing provision of 
          Horse Racing Law pertaining to the base purse in specified 
          racing events. Specifically, this measure:

             1.   Revises the definition of a California-bred 
               standardbred horse by deleting 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 requiring a minimum base purse 
               of 75% of the original base purse if divisions are 
               raced, and instead simply requires 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.   Also, makes a technical, non-substantive change to 
               a provision relating to altering or counterfeiting, or 
               attempting to alter or counterfeit, any parimutuel 




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               ticket.  

                                   EXISTING LAW

           Existing law provides that 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 parimutuel wagering, as well as 
          enforcing all laws, rules, and regulations dealing with 
          horse racing and parimutuel wagering.

          Existing law defines a "California-bred standardbred horse" 
          as a standardbred foal conceived  in California  by a 
          stallion registered with the CSSSP.   Additionally, 
          existing law establishes a CSSSP for standardbred horses, 
          including harness horses, bred in this state.  (Business & 
          Professions Code Section 19406)

          Existing law 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. 
          Existing law 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.  (Business & Professions Code 
          Section 19619)

          Existing law prohibits any person from altering or 
          counterfeiting, or attempting to alter or counterfeit, any 
          parimutuel ticket.  (Business & Professions Code Section 
          19666)

                                    BACKGROUND
           
           Purpose of AB 280  :  The sponsor of this measure, Los 
          Alamitos Race Course, 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 




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          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 claims that 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 sponsor notes that the CSSSP was established before 
          artificial insemination was permitted for breeding 
          standardbred horses in California.  Now that artificial 
          insemination is allowed it has had far-reaching effects 
          relative to the ability to breed a stallion to a larger 
          number of mares and the strengthening of the speed and 
          power of the modern standardbred horse.  

          The sponsor states that AB 280 is intended to allow the 
          CSSSP to adjust to economic and industry changes, by 
          permitting a foal which is the product of artificial 
          insemination, to be eligible for the Sire Stakes series 
          races, purses and awards even if the standardbred foal was 
          not conceived in California.  Additionally, AB 280 would 
          make necessary changes to the statutes governing the base 
          purse in order to grant the Sire Stakes Committee more 
          flexibility.  
                                         
                           PRIOR/RELATED LEGISLATION
           
           AB 1578 (Governmental Organization Committee) Chapter 550, 
          Statutes of 2009.   Among other things, required 15% of the 
          funds remaining after specified deductions from 
          conventional and exotic parimutuel wagering pools resulting 
          from thoroughbred wagers made in California to be used for 
          the payment of bonuses to California-bred horses in maiden 
          allowance races in California.
           
          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 




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          after the conception.

           SB 738 (Karnette) Chapter 24, Statutes of 2003.   Defined 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).

           SUPPORT:   As of June 24, 2011:

          Los Alamitos Race Course (sponsor)
          California Harness Horsemen's Association
          Standard Sires Stakes Program

           OPPOSE:   None on file as of June 24, 2011.

           FISCAL COMMITTEE:   No.

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