BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2693| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING 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 CONTINUED AB 2693 Page 2 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. CONTINUED AB 2693 Page 3 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, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, CONTINUED AB 2693 Page 4 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:nd 7/3/12 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED