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]





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          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 




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          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





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