BILL ANALYSIS Ó
AB 1303
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1303 (Hall)
As Amended February 13, 2014
2/3 vote. Urgency
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|ASSEMBLY: |75-0 |(May 9, 2013) |SENATE: |32-0 |(March 6, |
| | | | | |2014) |
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Original Committee Reference: G.O.
SUMMARY : Allows, as an urgency measure, a racing association to
enter into an agreement to operate a live race meet at a fair in
the northern zone provided the California Horse Racing Board
(CHRB) grants approval. The bill also 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. In addition, requires a racing association or fair to
inform patrons, through the official program, of the takeout
being applied to the handle for the racing meeting.
The Senate amendments :
1)Grant 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)Extend 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.
3)Add an urgency clause to allow the provisions to take effect
immediately upon enactment.
AS PASSED BY THE ASSEMBLY , this bill required a racing
association or fair to inform patrons, through the official
program, of the takeout being applied to the handle for the
racing meeting.
AB 1303
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FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This bill was substantially amended in the Senate.
Background : 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 or 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 Arcadia, California, 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.
The author's office points out that 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 (Fair) located in the town of Pleasanton.
The Fair 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 Fields and Oak Tree
a reason to look favorably upon a possible long-term partnership
where both parties can benefit.
Purpose of the bill : This bill is an urgency measure in order
to facilitate Oak Tree's possible lease agreement with the
AB 1303
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Alameda County Fair for the 2014 summer racing season scheduled
from June 19, 2014, to July 6, 2014.
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."
Additionally, this bill provides for the immediate restoration
of the authority granted to thoroughbred racing associations in
the northern zone to deduct up to 4% of the in-state satellite
wagering handle to off-set simulcasting expenses.
Prior legislation : SB 398 (Galgiani) of 2013. 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 California's 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.
This bill was vetoed by the governor with the following message:
"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."
SB 1072 (Ron Calderon), Chapter 283, Statutes of 2010. The bill
made substantive changes and additions to California's Horse
Racing Law. One of additions requires thoroughbred racing
associations and fairs to deduct (Takeout) an additional amount
of the total handle on exotic wagering (e.g., exacta, trifecta,
and superfecta) for purse augmentation.
AB 1575 (Governmental Organization Committee), Chapter 650,
Statutes of 2009. Among other things, allows the CHRB to
increase the amount set aside under existing law for simulcast
operating expenses for a thoroughbred race meet in the northern
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zone and in the central and southern zones from 2.5% to up to
4%.
SB 517 (Florez), Chapter 636, Statutes of 2009. Allows a
thoroughbred association or fair, subject to CHRB, to alter the
amount deducted from horse racing wagering. Allows the
distribution of funds from the amount deducted to be modified or
redirected, subject to the approval of CHRB.
Analysis Prepared by : Eric Johnson / G.O. / (916) 319-2531
FN: 0003053