BILL ANALYSIS �
AB 1347
Page 1
Date of Hearing: May 8, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1347 (Gray) - As Amended: April 16, 2013
Policy Committee: Governmental
Organization Vote: 16 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill adds the Wood Memorial to the group of stake races in
California Horse Racing Law that are exempt from the 50-race per
day limit on imported races. In addition, this bill extends the
operation of the California Marketing Committee (CMC) and its
related funding from July 1, 2014, to January 1, 2019.
FISCAL EFFECT
1)Funding for the CMC comes from the instate off-track wagering
handle. Of the amount wagered, .4% is provided to the CMC for
marketing horse racing in the state. In 2013, the CMC will
receive approximately $1.8 million for marketing. Extending
the sunset would result in continuing the annual redirection
of the handle.
2)Potential increase in revenue available to fund the California
Horse Racing Board, the oversight of California's network of
state fairs, and the Kenneth L. Maddy Equine Analytical
Chemistry Laboratory at the University of California, Davis
due to increased wagering opportunities associated with the
Wood Memorial.
3)Negligible nonreimbursable local law enforcement costs.
COMMENTS
1)Purpose . This measure makes all races imported by a
thoroughbred association or fair that are part of the race
card of the overall Wood Memorial day exempt from the 50-race
per day limit as defined in current law. Over the years, this
AB 1347
Page 2
law has been amended to allow specific notable races to be
imported outside of this cap for promotional and financial
reasons.
The author notes 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 bill also extends the sunset date from January 1, 2014 to
January 1, 2019, for provisions relating to CMC marketing and
promotion 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.
2)This bill conflicts with AB 1074 (Atkins) , which removes the
sunset date for the CMC. That bill is currently pending on
this committee's suspense file.
3)Statewide Marketing Organization . SB 27 (Maddy), Statutes of
1998, created a private statewide marketing organization for
thoroughbred and fair racing funded by .4% of the instate
off-track (satellite wagering) handle. The funds generated
from this portion of the takeout are used for marketing
California horse racing throughout the state.
CMC is generally responsible for promoting horse racing in the
state by developing and implementing a marketing plan to
increase on-track and off-track attendance throughout the
state. An underlying assumption of the CMC's Marketing Plan
is that it is easier to capture a new fan through an on-track
experience than through an off-track visitation to a satellite
wagering facility.
In 2003, the CMC received approximately $6.1 million to
support its marketing efforts but due to reduced handle
revenue, it was reduced to approximately $1.8 million for
2013. Current law provides the CMC must annually submit to
the CHRB a statewide marketing and promotion plan for
thoroughbred and fair horse racing that encompasses all
geographical zones in the state, including the manner in which
funds were expended in the implementation of the plan for the
AB 1347
Page 3
previous calendar year.
4)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 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.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081