BILL ANALYSIS                                                                                                                                                                                                    Ó



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          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