BILL ANALYSIS �
AB 1347
Page 1
ASSEMBLY THIRD READING
AB 1347 (Gray)
As Amended May 24, 2013
Majority vote
GOVERNMENTAL ORGANIZATION 16-0 APPROPRIATIONS 17-0
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|Ayes:|Hall, Nestande, Bigelow, |Ayes:|Gatto, Harkey, Bigelow, |
| |Chesbro, Cooley, Gray, | |Bocanegra, Bradford, Ian |
| |Hagman, | |Calderon, Campos, |
| |Roger Hern�ndez, Jones, | |Donnelly, Eggman, Gomez, |
| |Jones-Sawyer, Levine, | |Hall, Ammiano, Linder, |
| |Medina, Perea, V. Manuel | |Pan, Quirk, Wagner, Weber |
| |P�rez, Torres, Waldron | | |
| | | | |
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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.
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
AB 1347
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live racing being conducted by the association or fair.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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.
COMMENTS :
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 this
bill 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.
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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), Chapter 84, Statutes of
2011. 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 (Governmental Organization Committee), 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.
AB 1347
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AB 3074 (Governmental Organization Committee), 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 (Governmental Organization Committee), 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 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.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0000933