BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1074|
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THIRD READING
Bill No: AB 1074
Author: Atkins (D)
Amended: 8/26/13 in Senate
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 10-0, 6/25/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, De León,
Galgiani, Hernandez, Lieu, Padilla
NO VOTE RECORDED: Correa
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 77-0, 5/29/13 - See last page for vote
SUBJECT : Horse racing: thoroughbred racing
SOURCE : Author
DIGEST : This bill extends the sunset date by one year for the
statewide marketing organization that is responsible for
marketing and promoting thoroughbred and fair horse racing and
also makes adjustments to existing Horse Racing Law to pave the
way for the California Horse Racing Board (CHRB) to adjust
racing dates in the central and southern zones in order to
address the scheduling issues resulting from the impending
closure of Hollywood Park racetrack.
Senate Floor Amendments of 8/26/13 authorize the CHRB to
allocate a maximum of five weeks per year to a thoroughbred
racing association to conduct thoroughbred racing at a racetrack
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on the southern zone that was not used to conduct a thoroughbred
race meeting in the southern zone prior to 2012.
ANALYSIS :
Existing law:
1.Provides, under the Horse Racing Law, that the CHRB regulate
the various forms of horse racing authorized in this state.
2.Authorizes, until January 1, 2014, thoroughbred racing
associations, fairs, and the organization responsible for
contracting with thoroughbred racing associations and fairs
with respect to the conduct of racing meetings, to form a
private, statewide marketing organization to market and
promote thoroughbred and fair horse racing. If a marketing
organization is formed, existing law requires an amount not to
exceed 0.25% of the total amount handled by each satellite
wagering facility to be distributed to the marketing
organization, and imposes certain requirements on the
marketing organization, including that the marketing
organization annually submit certain information to the CHRB.
3.Provides the CHRB with the authority to allocate racing weeks
to an applicant pursuant to the provisions of the Horse Racing
Law and to specify such racing days, dates, and hours for
horse racing meetings as will be in the public interest.
4.States the CHRB shall make allocations for racing weeks,
including simultaneous racing between zones as it deems
appropriate. The maximum number of racing weeks that may be
allocated for horse racing other than at fairs, are as
follows: (a) for thoroughbred racing: 44 weeks per year in
the northern zone, 42 weeks per year in the central zone, and
seven weeks per year in the southern zone; (b) for harness
racing: 25 weeks per year in the northern zone; (c) for
quarter horse racing: 25 weeks per year in the northern zone;
and (d) for harness racing and quarter horse racing: a total
of 77 weeks per year in the combined central and southern
zones.
5.Prohibits the CHRB from allocating dates to a thoroughbred
association (a) in the central zone for the purpose of
conducting racing during daytime hours, and (b) in the
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southern zone for conducting racing on the same date during
daytime hours.
6.Specifies that (a) any association licensed to conduct
thoroughbred racing in the northern zone may receive no more
than 35 weeks of that racing, and (b) any association licensed
to conduct thoroughbred racing in the central zone may receive
no more than 17 weeks of that racing, except that any
association which conducts a split meeting may receive up to
20 weeks of that racing. No more than one such split meeting
may be licensed in any one year.
7.Provides the maximum number of racing weeks that may be
allocated to a fair shall be for four weeks each, except under
specified conditions.
This bill extends the sunset date by one year for the statewide
marketing organization that is responsible for marketing and
promoting thoroughbred and fair horse racing and also makes
adjustments to existing Horse Racing Law to pave the way for the
CHRB to adjust racing dates in the central and southern zones in
order to address the scheduling issues resulting from the
impending closure of Hollywood Park racetrack. Specifically,
this bill:
1.Extends the sunset date on the statewide marketing
organization for one year (from January 1, 2014 to January 1,
2015).
2.Provides that the CHRB may allocate 49 racing weeks per year
in the combined central zone and southern zones.
3.Requires the CHRB, from the weeks available in the combined
central and southern zones, to allocate a minimum of seven
weeks per year to a thoroughbred racing association to conduct
thoroughbred racing at a racetrack that was used to conduct a
thoroughbred race meeting in the southern zone prior to 2012.
(Applicable to Del Mar racetrack for purposes of preserving
its traditional racing dates.)
4.Requires the CHRB, from the weeks available in the combined
central and southern zones, to allocate a minimum of 25 weeks
per year to a thoroughbred racing association to conduct
thoroughbred racing at a racetrack that was used to conduct a
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thoroughbred race meeting in the central zone prior to 2012.
(Applicable to Santa Anita racetrack for purposes of
preserving its traditional racing dates.)
5.Prohibits the CHRB from allocating dates to a thoroughbred
association in the southern zone for the purpose of conducting
racing if a thoroughbred racing association is conducting
racing in the central zone on the same date during daytime
hours.
6.Prohibits the allocation of racing dates to a thoroughbred
association in the central zone for the purpose of conducting
racing if a thoroughbred racing association is conducting
racing in the southern zone on the same date during daytime
hours.
7.Allows the CHRB from the weeks available in the combined
central and southern zones, to allocate a maximum of five
weeks per year to a thoroughbred racing association to conduct
thoroughbred racing at a racetrack in the southern zone that
was not used to conduct a thoroughbred race meeting in the
southern zone prior to 2012.
8.Deletes obsolete provisions of existing Horse Racing Law.
Background
On May 9, 2013, the CHRB was notified that Hollywood Park Land
Company, as well as its affiliated racing associations, would
not be requesting the CHRB to allocate any 2014 racing dates at
Hollywood Park racetrack in Inglewood. Thus, after 75 years of
horse racing, 2013 will be the final year of live racing,
training and stabling at Hollywood Park - one of America's
premier racing and historic racing venues that hosted Seabiscuit
and the first Breeders' Cup. In this regard, the last day of
"live" racing at Hollywood Park will be December 22, 2013. The
Hollywood Park stable area is expected to close by the end of
the year. Although the closure of Hollywood Park was long
expected, it did surprise many folks in the national racing
industry. From an economic point of view, the land now has a
higher and better use and the track's 260-acre footprint will be
turned into 3,000 new housing units, including single-family
townhomes and condos; 25 acres of parkland, including a 10-acre
central park; and a retail and entertainment district, anchored
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by a movie theatre, office space, and a 300-room hotel. It is
the second major California racetrack to close since 2008, when
Bay Meadows racetrack in San Mateo was shuttered after 74 years
of racing to make way for a similar development.
The racing map in California is divided into three zones:
northern, central, and southern. For the purposes of
thoroughbred racing, Santa Anita and Hollywood Park are in the
central zone. Del Mar is in the southern zone and Golden Gate
Fields is in the northern zone. This bill combines the central
and southern zones for purposes of the allocation of racing
dates.
At its May 23, 2013 meeting, the CHRB responded to the closure
of Hollywood Park racetrack and allocated racing dates for 2014
and 2015. Along with the standard fall meet at Santa Anita and
the summer meet at Del Mar, the CHRB voted unanimously to award
Santa Anita an extended season from December 26, 2013 through
July 6, 2014. The CHRB also allocated a five-week fall meet at
Del Mar that would run November 5 through December 7. Similar
dates were assigned for 2015.
Specifically, the 2014 dates the CHRB settled on are as follows:
Santa Anita (December 26, 2013 through July 6); Del Mar (July
16 through September 3); Fairplex Park (LA County Fair)
(September 4-23); Santa Anita (September 25 through November 2);
and Del Mar (November 5 through December 7).
The 2015 dates are as follows: Santa Anita (December 26, 2014
through July 5); Del Mar (July 15 through September 7); Fairplex
(September 10- 25); Santa Anita (September 26 through October
25); and Del Mar (October 28 through December 6). The shortened
2015 Fairplex is contingent on the selection of Santa Anita to
host the 2015 Breeders' Cup.
Marketing program . SB 27 (Maddy, Chapter 335, Statutes of
1998), among its provisions, created a private statewide
marketing organization for thoroughbred and fair racing that is
funded by 0.4% of the in-state off-track handle. The funds
generated from this distribution are used to market California
horse racing on a statewide basis. The California Marketing
Committee is generally responsible for promoting horse racing in
the state by developing and implementing a marketing plan that
will increase on-track and off-track attendance throughout the
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state.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/27/13)
California Thoroughbred Breeders Association
Del Mar Fairgrounds
Del Mar Thoroughbred Club
Oak Tree Racing Association
Thoroughbred Owners of California
ARGUMENTS IN SUPPORT : According to the author's office, this
bill is intended to give the CHRB and the racing industry the
maximum flexibility to adjust California's racing calendar to
meet the reality of Hollywood Park's closure - it grants the
CHRB the flexibility to allocate thoroughbred racing dates in
the central and southern zones, while preserving the traditional
seven weeks of racing at Del Mar and a minimum of 25 weeks of
racing at Santa Anita. This bill extends the sunset date on
California's statewide horse racing marketing program until
2015.
ASSEMBLY FLOOR : 77-0, 5/29/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,
Jones, Jones-Sawyer, Levine, Logue, Lowenthal, Maienschein,
Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,
Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,
V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Holden, Linder, Vacancy
MW:ej 8/27/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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