BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 364| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 364 Author: Gipson (D) Amended: 4/30/15 in Assembly Vote: 21 SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 7/14/15 AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Runner, Vidak ASSEMBLY FLOOR: 75-0, 5/22/15 - See last page for vote SUBJECT: Horse racing: out-of-state thoroughbred races: Belmont Derby Invitational SOURCE: Author DIGEST: This bill adds the "Belmont Derby Invitational" to the group of races in Horse Racing Law which are exempt from the 50-race per day limit on imported races. ANALYSIS: 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 AB 364 Page 2 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 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. This bill adds the "Belmont Derby Invitational" to the group of races in Horse Racing Law which are exempt from the 50-race per day limit on imported races. Background Belmont Derby Invitational. The $1.25 million Belmont Derby Invitational (formerly known as the Jamaica Handicap) 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 past entries include Piet (a three time race winner) and millionaire thoroughbreds Ruhlmann (1988 winner), Subordination (1997 winner), and Artie Schiller (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 three year-old fillies, the grade II $500,000 Suburban Handicap, the grade III $500,000 Dwyer for three year-olds, the grade III $400,000 Belmont Sprint Championship, and the grade III $150,000 Victory Ride for three year-old filly sprinters. Purpose of AB 364. This bill provides that all races imported by a thoroughbred association or fair that are part of the race card of the overall Belmont Derby Invitational will 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 AB 364 Page 3 races to be imported outside of this cap for promotional and financial reasons. The author's office notes that this bill 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 parimutuel 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 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 AB 364 Page 4 wagering. Prior/Related Legislation SB 187 (Hall, 2015) adds the "Wood Memorial" to the group of stakes races in Horse Racing Law which are exempt from the 50-race per day limit on imported races. AB 650 (Perea, 2015) adds the full card of races originating from Keeneland Racecourse in Lexington, Kentucky, on "Blue Grass Stakes" day, to the group of stakes races in Horse Racing Law which are exempt from the 50-race per day limit on imported races. AB 2655 (Hall, Chapter 149, Statutes of 2014) added the "Apple Blossom Handicap" to the group of stakes races in Horse Racing Law which are exempt from the 50-race per day limit on imported races. FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No SUPPORT: (Verified 7/14/15) None received OPPOSITION: (Verified 7/14/15) None received ASSEMBLY FLOOR: 75-0, 5/22/15 AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, Patterson, Perea, AB 364 Page 5 Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Alejo, O'Donnell, Olsen, Waldron, Weber Prepared by:Arthur Terzakis / G.O. / (916) 651-1530 7/15/15 15:08:54 **** END ****