BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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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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