BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 897|
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                                    CONSENT


          Bill No:  AB 897
          Author:   Hall (D)
          Amended:  As introduced
          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

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  72-0, 05/12/11 - See last page for vote


           SUBJECT  :    Horse racing:  quarter horse racing

           SOURCE  :     Author


           DIGEST  :    This bill 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.

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

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          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 
          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.

          This bill 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.

           Prior Legislation
           
          AB 2201 (Coto), Chapter 253, Statutes of 2010, authorized 
          the California Horse Racing Board 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 (Governmental Organization Committee), 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 (Governmental Organization Committee), 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 

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          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. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  8/15/11)

          Los Alamitos Racetrack

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          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 bill allows a quarter horse racing association in 
          California to import all of the races conducted on Texas 
          Classic Futurity and Remington Park Futurity day, 

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          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.


           ASSEMBLY FLOOR  :  72-0, 05/12/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth 
            Gaines, Galgiani, Gatto, Gordon, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, 
            Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, 
            Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Mitchell, 
            Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, 
            Perea, V. Manuel Pérez, Silva, Skinner, Smyth, Solorio, 
            Swanson, Valadao, Wagner, Wieckowski, Williams, John A. 
            Pérez
          NO VOTE RECORDED:  Cedillo, Eng, Garrick, Gorell, Mansoor, 
            Portantino, Torres, Yamada


          PQ:nl  8/16/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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