BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1303|
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THIRD READING
Bill No: AB 1303
Author: Hall (D)
Amended: 2/13/14 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 8-0, 3/4/14
AYES: Correa, Berryhill, Cannella, De León, Galgiani,
Hernandez, Torres, Vidak
NO VOTE RECORDED: Lieu, Padilla, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Horse racing: northern zone: fairs: satellite
wagering
SOURCE : Oak Tree Racing Association
DIGEST : This bill allows a racing association to enter into
an agreement to operate a live race meet at a fair (Alameda
County Fair) in the northern zone provided the California Horse
Racing Board (CHRB) grants approval. Additionally, it extends
by three years an existing sunset date to allow a thoroughbred
racing association in the northern zone to deduct up to 4% of
the in-state satellite wagering handle to off-set simulcast
operating expenses.
ANALYSIS :
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Existing law:
1. Provides that the Legislature may provide for the regulation
of horse races and horse race meetings and wagering on the
results. (Article IV, Section 19(b) of the California
Constitution)
2. Grants the CHRB the authority to regulate the various forms
of horse racing authorized in this state.
3. Requires that the total percentage deducted from wagers at
satellite wagering facilities in the northern zone be the
same as deductions for wagers at the racetrack where the
racing meeting is being conducted.
4. Requires, until December 31, 2013, an amount not to exceed
4% of the in-state satellite wagering handle be distributed
to a specified organization formed to operate the audio
visual signal system, with the consent of the racing
association, the organization representing the horsemen
participating in the meeting and the CHRB, and, beginning
January 1, 2014, provides for a distribution for those
purposes in accordance with a revised method of calculation.
This bill allows a racing association to enter into an agreement
to operate a live race meet at a fair (Alameda County Fair) in
the northern zone provided CHRB grants approval. Additionally,
it extends by three years an existing sunset date to allow a
thoroughbred racing association in the northern zone to deduct
up to 4% of the in-state satellite wagering handle to off-set
simulcast operating expenses.
Specifically, this bill:
1. Grants the CHRB the authority to allocate racing days to a
fair in the northern zone to be conducted by the fair or, at
the request of the fair, the CHRB may license a racing
association that was licensed to conduct racing meetings in
California prior to 2010 to conduct live horse racing at the
fair during the dates allocated to the fair by the CHRB.
2. Requires the live horse racing days, whether conducted by
the fair or the racing association contracting with the fair,
to be subject to the same provisions of law as are presently
applicable to a fair race meeting in the northern zone.
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3. Extends an existing sunset date in Horse Racing Law relative
to certain authorized deductions by a thoroughbred racing
association in the northern zone from the in-state satellite
wagering handle for simulcast operating expenses, from
December 31, 2013 to December 31, 2016.
Background
Purpose of this bill . According to the author's office, this
bill is intended to allow Oak Tree Racing Association to enter
into a public/private partnership with the Alameda County Fair
to operate its summer horse racing meet in Pleasanton,
California.
Oak Tree is a not-for-profit racing association which was
founded in 1969. The association was formed after a group of
southern California horsemen convinced a reluctant Santa Anita
Park management that there was a very good reason to offer a
quality live horse racing meet in the autumn of the year,
especially if it was a meet run by horse owners who would
dedicate the profits to equine veterinary research and assorted
racing charities.
Oak Tree generally ran their race meet in September/October, and
at one time was considered one of the finest race meetings in
the country. During its live race meet, Oak Tree would host a
series of races for California bred horses, led by the
California Cup Classic. In addition, Oak Tree hosted the
Breeders' Cup at Santa Anita Park in 1986, 1993, 2003, 2008 and
2009. However, there has not been an Oak Tree race meeting in
California since 2010, because the association's agreement with
Santa Anita Park was terminated. Oak Tree is essentially a
racing association without a racetrack to operate its annual
race meet.
Since last being licensed by the CHRB, the Oak Tree board has
cast its sights to northern California, where live horse racing
is conducted year round by Golden Gate Fields and at county and
state fairs.
The Oak Tree board has had discussions with various racing
interests in northern California and has determined that one
possible location to rekindle their past history may be at the
Alameda County Fair located in the town of Pleasanton. The Fair
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traditionally kicks off the northern California racing fair
circuit each summer with dates in late June and early July.
Pleasanton stays open year-round for training as well, giving
local horsemen an alternative to Golden Gate and Oak Tree a
reason to look favorably upon a possible long-term partnership
where both parties can benefit.
Comments
According to the author, "Declining daily attendance at
California's race tracks has led to diminished on-track betting
revenue which in turn has led to smaller purses and reduced
income for the horsemen involved. AB 1303 will provide the
industry with a mechanism to increase track commissions, purses,
and breeder's awards for the participants in this agribusiness.
This bill is intended to preserve jobs and assure that live
horse racing remains economically viable in northern
California."
Prior Legislation
SB 398 (Galgiani, 2013-14 Session) which was vetoed by Governor
Brown, would have allowed revenue raised by racing associations
from their charity racing days to be used to fund a non-profit
corporation or trust that supports a recognized fair or the
network of California fairs. In addition, the bill would have
extended a sunset date in Horse Racing Law from December 31,
2013 until December 31, 2016, to allow a thoroughbred racing
association in the northern zone to deduct up to 4% of the
in-state satellite wagering handle for simulcast operating
expenses, as specified. The Governor's veto message stated,
"Under current law any nonprofit organization engaged in
charitable, benevolent or civic activities - including one
supporting fairs - may benefit from revenues generated from
horseracing charity days. Thus, it is not clear why a separate
designation is needed."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 3/4/14)
Oak Tree Racing Association (source)
Alameda County Fair
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California Authority of Racing Fairs
MW:ke 3/4/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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