BILL ANALYSIS Ó AB 897 Page 1 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 Page 2 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 Page 3 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 FN: 0000537