BILL ANALYSIS �
AB 1347
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Date of Hearing: April 24, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Hall III, Isadore, Chair
AB 1347 (Gray) - As Amended: April 16, 2013
SUBJECT : Horse racing
SUMMARY : Adds the Wood Memorial to the group of stake races
in Horse Racing Law which are exempt from the 50-race per Day
limit on imported races, as defined. In addition, extends a
sunset date from July 1, 2014 to January 1, 2019, related to a
private statewide marketing organization to market and promote
thoroughbred and fair horse racing in California.
EXISTING LAW :
1) Grants the California Horse Racing Board (CHRB) the
authority to regulate the various forms of horse racing
authorized in this state.
2) Limits the number of races that may be imported by
associations and fairs to no more than 50 races per day on days
when live Thoroughbred or fair racing is being conducted in this
state, with specified exceptions.
3) Exempts from that 50-race per day limit races imported that
are part of the race card of certain prominent races, including
the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the
Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes,
the Breeders' Cup, the Dubai Cup, or the Haskell Invitational.
4) Authorizes Thoroughbred racing associations or fairs to
distribute the audiovisual signal and accept wagers on the
results of out-of-state and international Thoroughbred races
during the calendar period the association or fair is conducting
live racing, including days on which there is no live racing
being conducted by the association or fair.
5) Extends the sunset date from January 1, 2014 to January 1,
2019, in existing law relating to a private statewide marketing
organization to market and promote thoroughbred and fair horse
racing in California, as described.
FISCAL EFFECT : Unknown.
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COMMENTS :
Background :
Wood Memorial Stakes : The Wood Memorial Stakes is a Grade 1
stakes race for three-year-old thoroughbreds, located at the
Aqueduct Racetrack in Queens, New York. Each April, this
prestigious race acts as a major prep for three-year-old horses
with eleven winners having gone on to victory in the Kentucky
Derby, four of whom captured the Triple Crown. The race is
shown on the NBC Sports Network.
Purpose of the bill : This measure provides that all races
imported by a Thoroughbred association or fair that are part of
the race card of the overall Wood Memorial day would be exempted
from the 50-race per day limit as defined in current law. Over
the years, this law has been amended to allow specific notable
races to be imported outside of this cap for promotional and
financial reasons.
The author's office notes that this bill will help increase the
wagering handle on this specific day (Wood Memorial Stakes)
which will lead to increased purses, racetrack revenue, and
breeders' awards in California. Purses are important to
California's racing industry because they provide revenue to
horse owners for their racing operations and to breeders through
an increase in the value of their breeding stock. The author's
office states "California's racing industry has found that it's
much easier to make a big day bigger relative to their marketing
efforts rather than trying to increase attendance on a typical
Wednesday or Thursday." The author's office believes that AB
562 will also provide the racing industry a marketing tool to
increase on-track and off-track attendance on this designated
day because racing fans will want to wager on all the races from
the host track of the prestigious Wood Memorial horse race.
The bill also extends the sunset date from January 1, 2014 to
January 1, 2019, for provisions relating to a private statewide
marketing organization (California Marketing Committee) to
market and promote thoroughbred and fair horse racing in
California. Supporters of this extension note, that there is
enough history and documentation on the books to extend the
"sunset" for another five years. The CMC through attrition has
shown that they're able to make fiscally responsible business
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decisions to market and promote California's racing industry.
Satellite Wagering : Satellite wagering via an off-track
facility has been legal in California since 1985. It was
authorized at a time when California racetracks were beginning
to experience declining attendance and handle figures. The
industry believed that making the product easier to access not
only would expose and market horse racing to potential
customers, but also would make it more convenient for the
existing patrons to wager more often.
Simulcasting : Simulcasting is the process of transmitting the
audio and video signal of a live racing performance from one
facility to a satellite for retransmission to other locations or
venues where pari-mutuel wagering is permitted. Simulcasting
provides racetracks with the opportunity to increase revenues by
exporting their live racing content to as many wagering
locations as possible, such as other racetracks, fair satellite
facilities and Indian casinos. Revenues are increased because
simulcasting provides racetracks that export their live content
with additional customers in multiple locations who otherwise
would not have been able to place wagers on the live racing
event.
Racetrack Attendance : Over the past 20 years the industry has
witnessed a general decline in the number of people attending
and wagering at live horse racetracks in California due to a
number of factors, including increased competition from other
forms of gaming, unwillingness of customers to travel a
significant distance to racetracks and the availability of
off-track wagering. The declining attendance at live horse
racing events has prompted racetracks to rely on revenues from
in-state and out-of-state satellite wagering and account
wagering.
Prior legislation : AB 707 (Garrick) 2011-12 Session. An
urgency measure, increases from 32 to 50, the limitation on the
total number of out-of-state Thoroughbred races that may be
imported per day by a Thoroughbred association or fair that is
conducting a live race meet with approval by the CHRB.
AB 2790 (Committee on Governmental Organization) Chapter 141,
Statutes of 2010. Added the Arlington Million to the group of
specific stake races which are exempt from the 32-race per day
limit on imported races.
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SB 1072 (Ron Calderon), Chapter 283, Statutes of 2010. Among
its provisions, extended the sunset date from January 1, 2011 to
January 1, 2014, in existing law relating to a private statewide
marketing organization to market and promote Thoroughbred and
fair horse racing in California, as defined.
SB 766 (Negrete McLeod), Chapter 616, Statutes of 2009. Allows
uncommitted surplus funds in the CMC Fund or the horse racing
Workers' Compensation Fund, to be reallocated to any other fund
or account created pursuant to the Horse Racing Law.
AB 3074 (Committee on Governmental Organization) Chapter 510,
Statutes of 2008. Among other things, increased from 23 to 32,
the limitation on the total number of out-of-state Thoroughbred
races that may be imported per day by a thoroughbred association
or fair that is conducting a live race meet.
AB 1736 (Committee on Governmental Organization) Chapter 444,
Statutes of 2007. Added the "Travers Stakes" to the group of
specific stake races which are exempt from the 23-race per day
limit on imported races.
AB 2164 (Plescia), Chapter 80, Statutes of 2004. Extended a
sunset date from July 1, 2004 to January 1, 2006, related to a
private statewide marketing organization (CMC) to market and
promote Thoroughbred and fair horse racing in California.
AB 509 (Jerome Horton) Chapter 235, Statutes of 2004. Allowed
a Thoroughbred or fair association to distribute the audiovisual
signal and accept wagers on the results of out-of-country
Thoroughbred races during the calendar period the association or
fair is conducting a race meeting under specified conditions.
REGISTERED SUPPORT / OPPOSITION :
Support
California Authority of Racing Fairs
Opposition
None on file
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Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531