BILL ANALYSIS Ó
Bill No: AB
2520
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
AB 2520 Author: Hall
As Introduced: February 24, 2012
Hearing Date: June 12, 2012
Consultant: Art Terzakis
SUBJECT
Horse Racing
DESCRIPTION
AB 2520 increases the number of races quarter or harness
racing associations are allowed to import for simulcast
wagering purposes from 8 to 10 per day on live racing days.
EXISTING LAW
Existing law provides that the California Horse Racing
Board (CHRB) shall regulate the various forms of horse
racing authorized in this state.
Existing law grants the CHRB the authority to permit a
harness or quarter horse association conducting a race
meeting to accept wagers on the results of up to eight
out-of-state or out-of-country harness or quarter horse
races per day, if specified conditions are met. If only
one breed is being raced on a given day, the racing
association conducting live racing may import those races
that would otherwise be simulcast by the association that
is not racing, as specified.
Existing law provides that no quarter horse or harness
racing association shall accept wagers on out-of-state or
out-of-country quarter horse or harness races commencing
before 5:30 p.m., Pacific Standard Time, without the
consent of any thoroughbred association or fair that is
AB 2520 (Hall) continued
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then conducting a live racing meeting 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, Texas Classic Futurity and Remington Park
Futurity, if the races are conducted on the same day as the
featured race.
Existing law authorizes a licensed harness racing
association that is conducting a live racing meeting in
this state to accept wagers on the full card of races
conducted by another racing association on the day that
other association conducts the Breeder's Crown Stakes, the
Meadowlands Pace, Cane Pace, Kentucky Futurity, the
Hambletonian, or the North American Cup.
BACKGROUND
In the late 1990's, 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.
Purpose of AB 2520 : Over the years, there has been a
noticeable decline in the number of people attending and
participating in live horse racing events in California.
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 to
compensate for losses at their live horse racing events.
Current law however restricts the number of quarter horse
or harness races that can be imported via satellite to
eight races per day by the respective racing association.
The author's office argues that by allowing each breed to
import an additional two races per day this measure will
AB 2520 (Hall) continued
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enable each racing association to import a full card of
races from an out-of-state location. Los Alamitos Race
Course and Sacramento Cal Expo are the only racetracks that
conduct harness racing and quarter horse racing meets.
The author's office believes that this measure will provide
the quarter and harness racing industry an additional
marketing tool to help increase on-track and off-track
attendance and wagering handle throughout California. AB
2520 is also intended to provide those breeds with a
mechanism to increase track commissions, purses, and
breeder's awards.
PRIOR/RELATED LEGISLATION
AB 136 (Silva) Chapter 221, Statutes of 2009. Deleted the
limitation on the total number of out-of-state or
out-of-country harness or quarter horse races that may be
imported in a calendar year by a harness or quarter horse
racing association.
AB 763 (Chesbro) Chapter 122, Statutes of 2009.
Authorized the Humboldt County Fair to offer satellite
wagering on eight out-of-state races during the August days
when the fair is offering live racing, if specified
conditions are met.
AB 2048 (Silva) Chapter 439, Statutes of 2008. Among other
things, increased by two (from six to eight) the number of
races that a harness and quarter horse racing association
could import on live racing days from out-of-state and
out-of-country locations.
SB 1183 (Margett) Chapter 232, Statutes of 2004.
Authorized a harness racing association that is conducting
a live race meeting to accept wagers on the full card of
races conducted by another racing association on the day
the other racing association conducts the Breeder's Crown
Stakes, the Meadowlands Pace, the Hambletonian or the North
American Cup.
SB 2035 (Karnette) Chapter 268, Statutes of 2002. Allowed
a harness or quarter horse racing association to "bank" up
to two out-of-state or out-of-county imported races on a
specific race day, and then add those races to another race
day's importation schedule.
AB 2520 (Hall) continued
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SUPPORT: None on file as of June 8, 2012.
OPPOSE: None on file as of June 8, 2012.
FISCAL COMMITTEE: Senate Appropriations Committee
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