BILL ANALYSIS Ó
Bill No: SB
305
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
SB 305 Author: Calderon
As Introduced: February 14, 2011
Hearing Date: April 12, 2011
Consultant: Art Terzakis
SUBJECT
Horse Racing: minisatellite facilities
DESCRIPTION
SB 305 modifies a provision of Horse Racing Law that
currently requires the California Horse Racing Board (CHRB)
to license minisatellite facilities for two years and
instead directs the CHRB to license such facilities for up
to five years . Specifically, SB 305:
1. Requires the CHRB to license minisatellite
facilities for up to five years.
2. Deletes obsolete language that requires the CHRB to
adopt emergency regulations to implement minisatellite
wagering facilities on or before April 1, 2008.
EXISTING LAW
Existing law provides for the California Horse Racing Board
(CHRB) which regulates the various forms of horse racing
authorized in this state.
Existing law authorizes the CHRB to permit licensed racing
associations and fairs to operate satellite-wagering
facilities on their grounds, as specified.
Existing law authorizes the CHRB to approve the
establishment of 15 mini-satellite wagering sites in each
zone (for a total of 45) and defines "minisatellite
SB 305 (Calderon) continued
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wagering site" to mean a location where satellite wagering
may be conducted, with the approval of the CHRB, provided
that the wagering occurs in an area that is restricted to
those who are 21 years of age or older.
Existing law requires the CHRB to issue a license to a
mini-satellite facility for two years, and then review the
operation and the size of the handle, and determine if it
is in the best interest of horse racing to relicense the
facility or, in the alternative, license another
mini-satellite facility that might generate a greater
handle.
Existing law provides that if there are more than 15
applications for mini-satellite wagering facilities in any
zone, the CHRB shall determine which facilities will
generate the largest handle, and give priority to the
approval of those facilities.
Existing law specifies that no mini-satellite site may be
located within 20 miles of a race track, a satellite
wagering facility, or a tribal casino that has a satellite
wagering facility without the consent of each facility
within that 20-mile radius.
BACKGROUND
History: California has allowed off-track betting in
satellite wagering facilities located at fairs and racing
associations throughout the state for well over 25 years.
Satellite wagering was authorized at a time when California
racetracks were beginning to experience declining
attendance and handle figures. The industry believed that
making the product easier to access would expose and market
horse racing to potential customers and also make it far
more convenient for existing patrons to wager more often.
Currently, there are 34 satellite-wagering facilities in
California located at live race tracks, fair grounds and
Indian casinos. In addition, seven state-designated or
county fairs have received statutory authority to locate
additional satellite-wagering facilities off the respective
fairgrounds but within the boundaries of the fair district.
To date, only the Fresno County Fair has exercised this
authority by leasing space in a card-club in downtown
Fresno (Fresno Club One).
SB 305 (Calderon) continued
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In 2007, AB 241 (Price) was enacted to authorize the
creation of 15 "minisatellites" in each racing zone for a
total of 45. The stated intent of this legislation was to
make the sport of horse racing even more accessible to
potential California bettors and to increase the handle -
the amount wagered on horse races. To date, only two
mini-satellites have been opened and licensed statewide
(one is located at the California Commerce Club in the City
of Commerce, the other is located at the OC Tavern Grill
and Sports Bar in San Clemente).
Purpose of SB 305: As noted above, current law requires
the CHRB to issue a license to a mini-satellite facility
for two years, and then review the operation and the size
of the handle, and determine if it is in the best interest
of horse racing to relicense the facility or, in the
alternative, license another mini-satellite facility that
might generate a greater handle.
According to the author's office, this measure is simply
intended to streamline current law with respect to the
licensing of minisatellite facilities by requiring the CHRB
to issue such licenses for a period up to five years rather
than two years. The author's office believes that the
current two year license timeframe may act as a
disincentive to individuals seeking to invest in or expand
existing minisatellite facilities.
PRIOR/RELATED LEGISLATION
AB 270 (Perea) 2011-12 Session. Would create an exception
to Horse Racing Law by authorizing a satellite wagering
facility, located on a fairground, to elect not to be
subject to the requirements related to a satellite facility
supervisor if the board of directors of the fair, after a
public hearing, deems those requirements to be not
economically feasible. (Pending on Assembly floor)
SB 1439 (Price) of 2010. Would have decreased the exclusion
zone in which a "minisatellite" horse racing wagering
facility can be situated in proximity to an existing horse
racing satellite wagering facility or live horse racing
race track from a 20 to 15 mile radius. (Failed passage on
Senate floor)
AB 2215 (Fuentes), Chapter 255, Statutes of 2010. Among
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other things, authorized a minisatellite wagering facility
to enter into an agreement with an advance deposit wagering
(ADW) provider to accept and facilitate the placement of
any wager at its facility that a California resident could
make through that ADW provider.
AB 246 (Price), Chapter 226, Statutes of 2009. Authorized
a quarter horse association and a harness racing
association to deduct up to 2 percent more from the total
amount wagered in the pari-mutuel pool for any type of
wager, and, specified how the funds shall be distributed to
eligible satellite wagering facilities, owners purses and
racetrack commissions
AB 241 (Price), Chapter 594, Statutes of 2007. Authorized
all fairs to operate a satellite wagering facility off of
the fair grounds. Also, authorized the establishment of up
to 45 mini-satellite wagering sites to be operated by
private industry throughout California.
AB 1286 (Richardson) Chapter 202, Statutes of 2007 .
Allowed the Alameda County Fair and the Los Angeles County
Fair (Fairplex) to obtain authorization to operate new
satellite wagering facilities off of their fair grounds
under certain conditions.
SB 677 (Murray) 2005-06 Session. Would have authorized the
establishment of seven additional satellite wagering
facilities around the state. (Died Assembly Inactive File)
SB 1096 (Dutton) Chapter 1096, Statutes of 2005.
Authorized the National Orange Show (San Bernardino County)
to operate a second satellite-wagering operation within its
fair district boundaries.
AB 401 (J. Horton) Chapter 556, Statutes of 2003.
Permitted CalExpo, with the approval of the Department of
Food and Agriculture and CHRB, to operate a satellite
wagering facility within the boundaries of CalExpo in
addition to any facility otherwise authorized under current
law.
SB 14 (Maddy), Chapter 1273, Statues of 1987. Expanded
satellite wagering statewide.
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SUPPORT: As of April 8, 2011:
California Commerce Club
OPPOSE: None on file as of April 8, 2011.
FISCAL COMMITTEE: Senate Appropriations
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