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: | |(May 9, 2013) |SENATE: |32-0 |(March 6, 2014) |
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(vote not relevant)
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|COMMITTEE VOTE: |16-0 |(March 13, 2014) |RECOMMENDATION: |concur |
|(G.O.) | | | | |
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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.
AB 1303
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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.
FISCAL EFFECT : According to the Senate Appropriations Committee,
pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS :
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
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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 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,
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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 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: 0003067