BILL ANALYSIS Ó
AB 364
Page 1
Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
AB 364
(Gipson) - As Amended April 30, 2015
SUBJECT: Horse racing: out-of-state thoroughbred races: Belmont
Derby Invitational.
SUMMARY: Adds the "Belmont Derby Invitational" to the group of
stake races in Horse Racing Law which are exempt from the
50-race per day limit on imported races.
EXISTING LAW:
1)Provides that the California Horse Racing Board (CHRB) shall
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 Arlington Million, the Breeders' Cup, the
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Dubai Cup, the Arkansas Derby, the Apple Blossom Handicap 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.
FISCAL EFFECT: This bill is keyed non-fiscal by Legislative
Counsel.
COMMENTS:
Background : The $1.25-million Belmont Derby Invitational is an
American Thoroughbred horse race held annually in July at
Belmont Park in New York. The grade I race attracts and
showcases a strong international field for the 1 -mile turf
race. Notable entries in the Belmont Derby include Piet (3-time
race winner) and millionaire Thoroughbreds Ruhlmann (1988
winner), Subordination (1997 winner), and Artie Shiller (2004
winner).
The race is part of the internationally-themed Stars & Stripes
Racing Festival, also highlighted by the grade I $1 million
Belmont Oaks Invitational for 3-year-old fillies, the grade II
$500,000 Suburban Handicap, the grade III $500,000 Dwyer for
3-year-olds, the grade III $400,000 Belmont Sprint Championship,
and the grade III $150,000 Victory Ride for 3-year-old filly
sprinters.
Purpose of the bill : This measure provides that all races
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imported by a thoroughbred association or fair that are part of
the race card of the overall Belmont Derby Invitational 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 measure is intended to help
increase public interest and participation at California
racetracks and satellite wagering facilities. The satellite
importation of this historic and prestigious race will allow
California racetracks to remain competitive, increase the
wagering handle on this specific race day and will lead to
increased purses, racetrack revenue, and breeders' awards in
this state.
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 re-transmission 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 would not
have otherwise been able to place wagers on the live racing
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event.
Racetrack Attendance : Over the past 25 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/Related Legislation : AB 1295 (Gray) 2015-16 Session.
Would provide that the limitation of 50 imported races per day
does not apply to races imported into the combined central and
southern zones when there is live thoroughbred or fair racing
being conducted in those zones but no live thoroughbred or fair
racing is being conducted in the northern zone. (Pending in
Assembly policy committee)
AB 650 (Perea), 2015-16 Session. This bill adds the "Blue Grass
Stakes" to the group of stake races in Horse Racing Law which
are exempt from the 50-race per day limit on imported races.
(Pending in Assembly policy committee)
AB 2655 (Hall), Chapter 149, Statutes of 2014. Added the "Apple
Blossom Handicap" to the group of stake races in Horse Racing
Law which are exempt from the 50-race per day limit on imported
races.
AB 2693 (Governmental Organization), Chapter 350, Statutes of
2012. Among other things, added the "Arkansas Derby" to the
group of stake races in Horse Racing Law which are exempt from
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the 50-race per day limit on imported races.
AB 2520 (Hall), Chapter 347, Statutes of 2012. Increased the
number of races quarter or harness racing associations are
allowed to import for simulcast wagering purposes from 8 to 10
per day on live racing days.
AB 707 (Garrick), Chapter 84, Statutes of 2011. Increased 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), Chapter 141, Statutes of
2010. Added the "Arlington Million" to the list of imported
races not subject to the limitation of 32 races per day.
SB 899 (Denham), Chapter 279, Statutes of 2010. Deleted the
statewide cap on the number of out-of-country thoroughbred races
that a thoroughbred racing association or fair may import,
simulcast, and on which wagers may be accepted statewide in any
given year.
AB 136 (Silva), Chapter 221, Statutes of 2009. Deleted the
limitation on the total number of out-of-state or out-of-country
harness or quarter horse races that may be imported in a
calendar year by a harness or quarter horse racing association.
AB 763 (Chesbro), Chapter 122, Statutes of 2009. Authorized
the Humboldt County Fair to offer satellite wagering on eight
out-of-state races during the August days when the fair is
offering live racing, if specified conditions are met.
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SB 379 (Denham), Chapter 443, Statutes of 2007. Added the
"Dubai World Cup" to a specified day of races that would be
exempted from the 23-race day limit on imported races for
satellite wagering.
AB 241 (Price), Chapter 594, Statutes of 2007. Among other
things, authorized all fairs to operate a satellite wagering
facility off of the fairgrounds. In addition, authorized the
establishment of up to 45 "mini-satellite" wagering sites to be
operated by private industry throughout the state.
AB 765 (Evans), Chapter 613, Statutes of 2007. Among other
things, reauthorized horse racing's Advance Deposit Wagering
law, which was due to "sunset" on January 1, 2008.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
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Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531