BILL ANALYSIS Ó
AB 707
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 707 (Garrick)
As Amended June 23, 2011
2/3 vote. Urgency
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|ASSEMBLY: |72-0 |(May 27, 2011) |SENATE: |33-0 |(July 1, 2011) |
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Original Committee Reference: G.O.
SUMMARY : This urgency measure, increases from 32 to 50, the
limitation on the total number of out-of-state Thoroughbred
races that may be imported per day by a Thoroughbred association
or fair that is conducting a live race meet with approval by the
California Horse Racing Board (CHRB).
The Senate amendments :
1) Provide that a total of 50 out-of-state Thoroughbred races
may be imported per day by a Thoroughbred association or fair
that is conducting a live race meet with approval by CHRB, as
specified.
2) Add an urgency clause.
EXISTING LAW :
1)Provides that CHRB regulate the various forms of horse racing
authorized in this state.
2)Limits the number of races that may be imported by
associations and fairs to no more than 32 races per day on
days when live Thoroughbred or fair racing is being conducted
in this state, with specified exceptions.
Exempts from that 32-race per day limit races imported that
are part of the race card of certain prominent races,
including the Kentucky Derby, the Kentucky Oaks, the Preakness
Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the
Travers Stakes, the Breeders' Cup, the Dubai Cup, or the
Haskell Invitational.
3)Authorizes Thoroughbred racing associations or fairs to
distribute the audiovisual signal and accept wagers on the
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results of out-of-state and international Thoroughbred races
during the calendar period the association or fair is
conducting live racing, including days on which there is no
live racing being conducted by the association or fair.
FISCAL EFFECT : This bill has been keyed non-fiscal by the
Legislative Counsel.
COMMENTS : This bill is consistent with Assembly actions. The
amendments simply reduces from 60 to 50 relating to the
limitation on the total number of out-of-state Thoroughbred
races that may be imported per day by a Thoroughbred association
or fair that is conducting a live race meet with approval by
CHRB. In addition, an urgency clause has been added.
Purpose of the bill : The scale and scope of horse racing is
governed by statute. Any attempt to expand its market requires
legislative action. The California Legislature has attempted to
address the racing industry's long-term viability through a
number of legislative efforts to expand the exposure of horse
racing to the general public and enhance horse racing's
marketability.
This bill increases the number of out-of-state races on which
Thoroughbred and fair racing associations may simulcast and
accept wagers on each day from 32 to 50. The author states by
allowing Thoroughbred and fair racing associations to
import more out-of-state races, it will give the horse racing
industry a marketing tool and leverage with racetracks outside
of this state. Presently, due to specific importation
restrictions, Thoroughbred and fair racing associations are
sending their signal to out-of-state locations, but are not able
to receive the maximum rate for their live racing product.
However, if these racing associations were able to accept more
out-of-state races under some type of reciprocity agreement, a
majority of the money wagered between the two markets would stay
in this state for track commissions, purses, and breeders'
awards.
This measure will also give the industry a marketing tool to
increase on-track and off-track attendance because more quality
races from out-of-state locations would be offered to their
wagering patrons on a daily basis.
Satellite wagering : Satellite wagering via an off-track
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facility has been legal in California since 1985. It was
authorized at a time when California racetracks were beginning
to experience declining attendance and handle figures. The
industry believed that making the product easier to access not
only would expose and market horse racing to potential
customers, but also would make it more convenient for the
existing patrons to wager more often.
Simulcasting : Simulcasting is the process of transmitting the
audio and video signal of a live racing performance from one
facility to a satellite for retransmission to other locations or
venues where pari-mutuel wagering is permitted. Simulcasting
provides racetracks with the opportunity to increase revenues by
exporting their live racing content to as many wagering
locations as possible, such as other racetracks, fair satellite
facilities and Indian casinos. Revenues are increased because
simulcasting provides racetracks that export their live content
with additional customers in multiple locations who would not
have otherwise been able to place wagers on the live racing
event.
Racetrack attendance : There has been a general decline in the
number of people attending and wagering at live horse racetracks
in California due to a number of factors, including increased
competition from other forms of gaming, unwillingness of
customers to travel a significant distance to racetracks and the
availability of off-track wagering. The declining attendance at
live horse racing events has prompted racetracks to rely on
revenues from in-state and out-of-state satellite wagering and
account wagering.
Prior legislation : AB 2790 (Governmental Organization
Committee), Chapter 141, Statutes of 2010, adds races that are
part of the race card of the Arlington Million to the list of
imported races not subject to the limitation of 32 races per
day.
SB 899 (Denham), Chapter 279, Statutes of 2010, deletes the
statewide cap on the number of out-of-country Thoroughbred races
that a Thoroughbred racing association or fair may import,
simulcast and on which wagers may be accepted.
AB 3074 (Governmental Organization Committee), Chapter 510,
Statutes of 2008, allows a harness racing association in
California to import all of the races conducted on Kentucky
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Futurity day, irrespective of the six-race day limit in law and
increases, from 23 to 32, the limitation on the total number of
out-of-state Thoroughbred races that may be imported per day by
a Thoroughbred association or fair that is conducting a live
race meet.
AB 1736 (Governmental Organization Committee), Chapter 444,
Statutes of 2007, adds the "Travers Stakes" to the group of
specific stake races which are exempt from the 23-race per day
limit on imported races, as specified.
SB 379 (Denham), Chapter 443, Statutes of 2007, adds the Dubai
World Cup race to a specified list of races that would be
exempted from the 23-race per day limit on imported races for
satellite wagering in California.
SB 590 (Perata), Chapter 936, Statutes of 2001, authorizes
Thoroughbred racing associations and fairs in the northern
racing zone to increase the number of imported racing simulcasts
available to be wagered upon if the CHRB reduces the number
of live racing days.
AB 509 (Jerome Horton), Chapter 235, Statutes of 2004, allows a
Thoroughbred or fair association to distribute the audiovisual
signal and accept wagers on the results of out-of-country
Thoroughbred races during the calendar period the association
or fair is conducting a race meeting under specified conditions.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0001469