BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 897
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          ASSEMBLY THIRD READING
          AB 897 (Hall)
          As Introduced  February 17, 2011
          Majority vote 

           GOVERNMENTAL ORGANIZATION   15-0APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hall, Nestande, Atkins,   |Ayes:|Fuentes, Harkey,          |
          |     |Block, Blumenfield,       |     |Blumenfield, Bradford,    |
          |     |Chesbro, Cook, Valadao,   |     |Charles Calderon, Campos, |
          |     |Gatto, Hill, Ma, Perea,   |     |Davis, Donnelly, Gatto,   |
          |     |V. Manuel Pérez, Silva,   |     |Hall, Hill, Lara,         |
          |     |Torres                    |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Allows a quarter horse racing association to offer 
          wagering on specific live races that are run in another state on 
          a designated day.  Specifically,  this bill  :  

          1) Permits the California Horse Racing Board (CHRB) to authorize 
          a licensed quarter horse racing association that is conducting a 
          live racing meeting to accept wagers on the full card of races 
          conducted by another racing association on the day that other 
          association conducts the Texas Classic Futurity and Remington 
          Park Futurity, as specified.

           EXISTING LAW  :

          1)Provides that CHRB regulate the various forms of horse racing 
            authorized in this state.

          2)Authorizes a licensed quarter horse racing association that is 
            conducting a live racing meeting in this state to accept 
            wagers on races conducted by the racing association that 
            conducts the American Quarter Horse Racing Challenge, if the 
            races are conducted on the same day as the American Quarter 
            Horse Racing Challenge. 

          3)Permits a harness or Quarter Horse association conducting a 
            race meeting to accept wagers on the results of out-of-state, 
            out-of-country, and sometimes other harness or Quarter Horse 
            races, if specified conditions are met, including that the 








                                                                  AB 897
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            association conducts at least seven live races and imports not 
            more than eight races on live racing days, as specified.

          4)Authorizes the inclusion of wagers in the pari-mutuel pools of 
            the out-of-state association that conducts the races on which 
            the wagers are placed.
           
          FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, potential increase in revenue available to fund the 
          CHRB and the Kenneth L. Maddy Equine Analytical Chemistry 
          Laboratory at the University of California, Davis due to 
          increased wagering opportunities.
           
          COMMENTS  :  

           Purpose of the bill  :  This bill will allow the quarter horse 
          racing association in California to import all of the races 
          conducted on the day of the Texas Classic Futurity and the 
          Remington         Park Futurity irrespective of the eight-race 
          day limit.  The author intends for this bill to give the 
          California quarter horse racing industry a marketing tool to 
          increase on-track and off-track attendance on this specific day. 
           As a result of the increased attendance, the author hopes this 
          bill will provide the industry with a mechanism to increase 
          track commissions, purses, and breeder's awards.
           
          Background  :  In the late 1990s, California racetracks began 
          importing additional races from out-of-state locations to 
          provide California's horse racing patrons with the opportunity 
          to wager on quality races offered by racetracks throughout the 
          country.  Since the introduction of this practice (which, 
          incidentally is authorized in many other states that likewise 
          allow pari-mutuel wagering on horse races), wagering on these 
          out-of-state races has been well received by the betting patron, 
          as evidenced by modest increases in overall wagering activity.  
          This has also helped the industry offset a continued reduction 
          in on-track wagering activity.

          Quarter Horse racing in California is held exclusively at Los 
          Alamitos racetrack.  Unlike Thoroughbreds, which make up most 
          professional racing and often race longer distances, Quarter 
          Horses are bred to sprint short distances ranging from 220 to 
          870 yards.  The Los Alamitos meet operates all year long with 
          the 2011 meet running from January 1, 2011, until December 18, 








                                                                  AB 897
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          2011.
           
          Prior legislation  :  AB 2201 (Coto), Chapter 253, Statutes of 
          2010, authorized CHRB to permit a California harness racing 
          association to accept wagers on the full card of races conducted 
          by another racing association on the date of the "Cane Pace."

          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 
          Futurity day.

          AB 2048 (Silva) Chapter 439, Statutes of 2008, among other 
          things, allowed harness and quarter horse racing associations 
          and fairs to offer wagering on eight harness or quarter horse 
          races broadcast by satellite on each day live races are run. 

          SB 1183 (Margett) Chapter 232, Statutes of 2004, authorized a 
          harness association to import the full cards of races held by 
          the association hosting the Breeder's Crown Stakes, the 
          Meadowlands Pace, the Hambletonian, or the North American Cup on 
          the days that those races are being run. 
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531 


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