BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2693|
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                                    CONSENT


          Bill No:  AB 2693
          Author:   Assembly Governmental Organization Committee
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMM.  :  13-0, 6/26/12
          AYES:  Wright, Anderson, Berryhill, Calderon, Cannella, 
            Corbett, De León, Evans, Hernandez, Padilla, Walters, 
            Wyland, Yee

           ASSEMBLY FLOOR  :  73-0, 5/10/12 (Consent) - See last page 
            for vote


           SUBJECT  :    Horse racing:  Arkansas Derby

           SOURCE  :     Author


           DIGEST  :    This bill adds the Arkansas Derby to the group 
          of stake races in Horse Racing Law which are exempt from 
          the 50-race per day limit on imported races, as defined. 

           ANALYSIS  :    Existing law:

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

          2.Limits the number of races that may be imported by 
            associations and fairs to no more than 50 races per day 
            on days when live Thoroughbred or fair racing is being 
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            conducted in this state, with specified exceptions. 

          3.Exempts from that 50 race per day limit races imported 
            that are part of the race card of certain prominent 
            races, including the Kentucky Derby, the Kentucky Oaks, 
            the Preakness Stakes, the Belmont Stakes, the Jockey Club 
            Gold Cup, the Travers Stakes, the Breeders' Cup, the 
            Dubai Cup, or the Haskell Invitational. 

          4.Authorizes Thoroughbred racing associations or fairs to 
            distribute the audiovisual signal and accept wagers on 
            the results of out-of-state and international 
            Thoroughbred races during the calendar period the 
            association or fair is conducting live racing, including 
            days on which there is no live racing being conducted by 
            the association or fair. 

           Background
           
          The author's office notes that this bill will help increase 
          the wagering handle on this specific day (Arkansas Derby) 
          which will lead to increased purses, racetrack revenue, and 
          breeders' awards in California.  Purses are important to 
          California's racing industry because they provide revenue 
          to horse owners for their racing operations and to breeders 
          through an increase in the value of their breeding stock. 

          The author's office states "California's racing industry 
          has found that it's much easier to make a big day bigger 
          relative to their marketing efforts rather than trying to 
          increase attendance on a typical Wednesday or Thursday."  
          The author's office believes that this bill also provides 
          the racing industry a marketing tool to increase on-track 
          and off-track attendance on this designated day because 
          racing fans will want to wager on all the races from the 
          host track of the prestigious Arkansas Derby horse race. 

           Arkansas Derby  .  The Arkansas Derby is a Grade 1 stakes 
          race for three-year-old thoroughbreds, which is held 
          annually at Oaklawn Park in Hot Springs, Arkansas.  Each 
          April, this prestigious race acts as a major prep for 
          three-year-old horses with two winners having gone on to 
          victory in the Kentucky Derby.  The race is shown each year 
          on ESPN. 

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           Prior/Related Legislation
           
          AB 2790 (Assembly Governmental Organization Committee), 
          Chapter 141, Statutes of 2010, adds 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 (Assembly Governmental Organization Committee), 
          Chapter 510, Statutes of 2008, among other things, 
          increases 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. 

          AB 1736 (Assembly Governmental Organization Committee), 
          Chapter 444, Statutes of 2007, adds the "Travers Stakes" to 
          the group of specific stake races which are exempt from the 
          23-race per day limit on imported races. 

          SB 379 (Denham), Chapter 443, Statutes of 2007, adds the 
          Dubai World Cup race to a specified list of races exempt 
          from the 23-race per day limit on imported races for 
          satellite wagering in California. 

          AB 509 (Jerome Horton), Chapter 235, Statutes of 2004, 
          allows a Thoroughbred or fair association to distribute the 
          audiovisual signal and accept wagers on the results of 
          out-of-country Thoroughbred races during the calendar 
          period the association or fair is conducting a race meeting 
          under specified conditions. 

          SB 590 (Perata), Chapter 936, Statutes of 2001, authorizes 
          Thoroughbred racing associations and fairs in the northern 
          racing zone to increase the number of imported racing 
          simulcasts available to be wagered upon if the CHRB reduces 
          the number of live racing days. 

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


           ASSEMBLY FLOOR  :  73-0, 5/10/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 

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


          DLW:n  6/27/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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