BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 305|
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CONSENT
Bill No: SB 305
Author: Calderon (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 13-0, 4/12/11
AYES: Wright, Anderson, Berryhill, Calderon, Cannella,
Corbett, De León, Evans, Hernandez, Padilla, Strickland,
Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Satellite wagering: minisatellite facilities
SOURCE : California Commerce Club
DIGEST : This bill 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.
ANALYSIS :
Existing law :
1. Provides for the CHRB which regulates the various forms
of horse racing authorized in this state.
2. Authorizes the CHRB to permit licensed racing
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associations and fairs to operate satellite-wagering
facilities on their grounds, as specified.
3. Authorizes the CHRB to approve the establishment of 15
mini-satellite wagering sites in each zone (for a total
of 45) and defines "minisatellite 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.
4. 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.
5. 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.
6. 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.
This bill modifies a provision of Horse Racing Law that
currently requires the CHRB to license minisatellite
facilities for two years and instead directs the CHRB to
license such facilities for up to five years.
Specifically, this bill:
Requires the CHRB to license minisatellite
facilities for up to five years.
Deletes obsolete language that requires the CHRB to
adopt emergency regulations to implement minisatellite
wagering facilities on or before April 1, 2008.
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Prior/Related Legislation
AB 270 (Perea), of 2011-12 Session, creates 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.
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
the Senate Floor)
AB 2215 (Fuentes), Chapter 255, Statutes of 2010, among
other things, authorizes 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, authorizes a
quarter horse association and a harness racing association
to deduct up to two 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, authorizes
all fairs to operate a satellite wagering facility off of
the fairgrounds, and authorizes 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, allows
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.
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SB 677 (Murray), 2005-06 Session would have authorized the
establishment of seven additional satellite wagering
facilities around the state. (Died on the Assembly
Inactive File)
SB 1096 (Dutton), Chapter 1096, Statutes of 2005,
authorizes 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, permits
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, Statutes of 1987, expands
satellite wagering statewide.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/2/11)
California Commerce Club
ARGUMENTS IN SUPPORT : According to the author's office,
this bill intends 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.
PQ:do 5/3/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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