BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 280|
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                                    CONSENT


          Bill No:  AB 280
          Author:   Silva (R)
          Amended:  3/14/11 in Assembly
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMM  :  13-0, 06/28/11
          AYES:  Wright, Anderson, Berryhill, Calderon, Cannella, 
            Corbett, De León, Evans, Hernandez, Padilla, Strickland, 
            Wyland, Yee

           ASSEMBLY FLOOR  :  78-0, 05/19/11 (Consent) - See last page 
            for vote


           SUBJECT  :    Horse racing:  California-bred horses and 
          parimutuel tickets

           SOURCE  :     Los Alamitos Race Course


           DIGEST  :    This bill 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 bill:  (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 percent of the 
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          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), and (3) makes a technical, 
          non-substantive change to a provision relating to altering 
          or counterfeiting, or attempting to alter or counterfeit, 
          any parimutuel ticket.  

           ANALYSIS  :    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.  

          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 percent of the original base purse 
          and, if elimination heats are raced, the base purse shall 
          be determined by the CSSSC.  

          Existing law prohibits any person from altering or 
          counterfeiting, or attempting to alter or counterfeit, any 
          parimutuel ticket. 

          This bill 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 

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          racing events.  Specifically, this bill:

          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 
            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 percent 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 CSSSC. 

          3.Makes a technical, non-substantive change to a provision 
            relating to altering or counterfeiting, or attempting to 
            alter or counterfeit, any parimutuel ticket.  

           Prior Legislation
           
          AB 1578 (Governmental Organization Committee), Chapter 550, 
          Statutes of 2009, among other things, required 15 percent 
          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 
          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 CSSSP.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   

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          Local:  No

           SUPPORT  :   (Verified  6/29/11)

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

           ARGUMENTS IN SUPPORT  :    Supporters state that the 
          California Legislature created 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.

          Supporters claim 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.

          Supporters note 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.  

          Supporters state that this bill 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, this bill would 
          make necessary changes to the statutes governing the base 
          purse in order to grant the Sire Stakes Committee more 
          flexibility.  



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           ASSEMBLY FLOOR  :  78-0, 05/19/11 (Consent) 
          AYES:  Achadjian, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, 
            Hagman, Halderman, Hall, Harkey, Hayashi, Roger 
            Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, 
            Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, 
            Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, 
            Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, 
            Portantino, Silva, Skinner, Smyth, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, 
            John A. Pérez
          NO VOTE RECORDED:  Alejo, Gorell


          PQ:nl  6/29/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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