BILL ANALYSIS Ó Bill No: SB 1418 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Roderick D. Wright, Chair 2011-2012 Regular Session Staff Analysis SB 1418 Author: Berryhill As Amended: March 26, 2012 Hearing Date: April 10, 2012 Consultant: Art Terzakis SUBJECT Horse Racing DESCRIPTION SB 1418 makes the following substantive changes in California Horse Racing Law: 1.Deletes the current calendar period restriction (only between June 1 and October 31) during which the California Horse Racing Board (CHRB) may allocate combined fair horse racing meetings thus allowing the CHRB greater flexibility in allocation of racing dates. 2.Also, deletes the requirement that the mixed breed meetings be conducted by an entity other than the California Exposition and State Fair (Cal-Expo) and that the mixed breed meetings encourage the racing of emerging breeds of horses. EXISTING LAW Article IV, Section 19(b) of the Constitution of the State of California provides that the Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results. Existing law grants the California Horse Racing Board (CHRB) the authority to regulate the various forms of horse racing authorized in this state. ÝBusiness and Professions Code 19420, et al] SB 1418 (Berryhill) continued Page 2 Existing law authorizes the CHRB to allocate racing weeks to an applicant and to specify the racing days, dates, and hours for horse racing meetings as will be in the public interest and will serve the purposes of the law. Existing law limits the allocation of dates for mixed breed meetings and combined fair horse racing meetings to between June 1 and October 31. ÝB & P Code 19549.1(a)] Existing law prohibits the allocation of days for a mixed breed meeting or a combined fair horse racing meeting during the month of June at Cal-Expo if a standardbred meeting is being conducted at that facility during that month. ÝB & P Code 19549.1(b)] Existing law also requires that the mixed breed meetings be conducted by an entity other than Cal-Expo as specified, and that the meeting encourage the racing of emerging breeds of horses. ÝB & P Code 19549.1(b)] BACKGROUND Purpose of SB 1418: The author's office notes that the CHRB is currently authorized to allocate dates and make other decisions it finds are in the best interest of the racing industry. According to the author's office, this measure is simply intended to delete existing restrictions and grant the CHRB greater flexibility in providing combined fair horse racing meets, provided the industry comes forth with such a proposal. The sponsor, the California Authority of Racing Fairs (CARF), and proponents, believe that restricting the dates of such events takes authority away from the CHRB. Comments: The State's fair circuit generally consists of the following fairs conducting approximately 90+ days of racing: San Joaquin County (Stockton), Alameda County (Pleasanton), Solano County (Vallejo), Sonoma County (Santa Rosa), San Mateo County (San Mateo), Humboldt County (Ferndale), Fresno County (Fresno), and the Los Angeles County Fair (Pomona). In addition to mixed-breed meets at Cal-Expo (Sacramento), a harness (Standard-bred) racing meet is conducted at various times of the year at the Cal-Expo facility. Following the demolition of Bay Meadows in 2008, which was adjacent to the San Mateo County Fairgrounds and used by the fair to run its live horse SB 1418 (Berryhill) continued Page 3 racing meet, San Mateo's dates have been run at Golden Gate Fields in Albany. Solano's dates have been split between Alameda County and Sonoma County for which Solano receives compensation. PRIOR/RELATED LEGISLATION SB 1227 (Negrete McLeod) 2011-12 Session. Would modify a provision of Horse Racing Law which currently provides for a 1% deduction from wagers at fair racing meets for deposit into the Fair and Exposition Fund (F&E Fund) for specified purposes and instead diverts the distribution of the 1% license fee equally between the fair that conducted the racing meet (as commissions) and to the horsemen and horsewomen who participated in the racing meet (as purses). (Pending in Senate Appropriations Committee) SB 561 (Margett) Chapter 380, Statutes of 2008. Among other things, granted greater flexibility to the CHRB in allocating racing dates in Northern California in response to the closure of Bay Meadows race track. AB 2205 (Garrick) Chapter 448, Statutes of 2008. Allowed the Del Mar Fairgrounds to use allocations of racing weeks from the central zone and to conduct thoroughbred racing throughout the year. AB 3073 (Governmental Organization) Chapter 509, Statutes of 2008. Among other things, deleted the requirement in existing law that horse racing days at fairs be during the period in which general fair activities are conducted. AB 3090 (Machado) Chapter 741, Statutes of 1996. Authorized the CHRB to allocate combined fair horseracing meeting between July 1 and October 31, the traditional summer fair racing dates. SUPPORT: As of April 6, 2012: California Authority of Racing Fairs (sponsor) The Big Fresno Fair Sonoma County Fair OPPOSE: None on file as of April 6, 2012. FISCAL COMMITTEE: Senate Appropriations Committee SB 1418 (Berryhill) continued Page 4 **********