BILL ANALYSIS                                                                                                                                                                                                    Ó






                                                       Bill No:  AB 
          897
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2011-2012 Regular Session
                                 Staff Analysis


          AB 897  Author:  Hall
          As Introduced:  February 17, 2011
          Hearing Date:  June 28, 2011
          Consultant:  Art Terzakis


                                     SUBJECT  
                       Horse Racing: quarter horse racing

                                   DESCRIPTION
           
          AB 897 authorizes the California Horse Racing Board to 
          permit a licensed California 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 date that other 
          association conducts the Texas Classic Futurity and 
          Remington Park Futurity.

                                   EXISTING LAW

           Existing law grants the California Horse Racing Board 
          (CHRB) the authority to regulate the various forms of horse 
          racing authorized in this state.

          Existing law 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. 

          Existing law 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 association conducts at least seven 




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          live races and imports not more than eight races on live 
          racing days, as specified.

          Existing law 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.

                                    BACKGROUND
           
           Purpose of AB 897  :  The author's office notes that over the 
          years existing law has been amended to allow specific 
          notable races to be imported outside of an eight-race per 
          day limit, as defined in current law.  This has been done 
          for scheduling, promotional and financial reasons.  
          Additionally, the author's office points out that there has 
          been a general decline in the number of people attending 
          and wagering at live horse tracks 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.  This decline in 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.

          This measure would allow a quarter horse racing association 
          in California to import all of the races conducted on Texas 
          Classic Futurity and Remington Park Futurity day, 
          irrespective of the eight race day limit.  The Texas 
          Classic Futurity, run at Lone Star Park at Grand Prairie, 
          carries a total purse (including two consolation races) of 
          $1 million.  The Texas Classic Futurity is the richest race 
          in Texas and third richest Quarter Horse race in the world, 
          only behind the All American Futurity and Los Alamitos 
          Million.

          The author's office believes this measure will give 
          California's quarter horse racing industry a marketing tool 
          to increase on-track and off-track attendance on this 
          specific day and provide the industry with a mechanism to 
          increase track commissions, purses, and breeder's awards.

                            PRIOR/RELATED LEGISLATION
           
           AB 562 (Hall) 2011-12 Session.   Would add the Wood Memorial 
          to the group of stake races in Horse Racing Law which are 




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          exempt from the 32-race per day limit on imported races, as 
          defined.  (Pending in this Committee)
           
            AB 707 (Garrick) 2011-12 Session.   Would increase from 32 
          to 60, 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 CHRB.  (Pending in this 
          Committee)
           
          AB 2201 (Coto) Chapter 253, Statutes of 2010.    Authorized 
          the 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 2790 (Committee on Governmental Organization) Chapter 
          141, Statutes of 2010.   Added the Arlington Million to the 
          group of specific stake races which are exempt from the 
          32-race per day limit on imported races.
           
          AB 3074 (Committee on Governmental Organization) Chapter 
          510, Statutes of 2008.   Among other things, increased 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.  Also, allowed 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. 

           SUPPORT:   As of June 24, 2011:

          Los Alamitos Racetrack





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

           FISCAL COMMITTEE:   Senate Appropriations Committee

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