BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Senator Isadore Hall, III
                                        Chair
                                2015 - 2016  Regular 

          Bill No:           AB 558           Hearing Date:    2/23/2016
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          |Author:    |Low                                                  |
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          |Version:   |2/10/2016                                            |
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          |Urgency:   |Yes                    |Fiscal:      |Yes             |
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          |Consultant:|Arthur Terzakis                                      |
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          SUBJECT: Horse racing:  nonthoroughbred races


            DIGEST:    This bill provides that the California Horse Racing  
          Board (CHRB) may authorize a racing association licensed to  
          conduct a thoroughbred racing meet to include up to six  
          nonthoroughbred races per calendar year pursuant to specified  
          conditions.
           
           ANALYSIS:
          
          Existing law:
          
          1)Provides that the CHRB shall regulate the various forms of  
            horse racing authorized in this state.

          2)Requires that any license granted to an association other than  
            a fair is only for one type of racing, thoroughbred, harness,  
            or quarter horse racing, as the case may be, except that the  
            CHRB may authorize the entering of thoroughbred and Appaloosa  
            horses in quarter horse races at a distance not exceeding 5  
            furlongs at quarter horse meetings, mixed breed meetings, and  
            fair meetings under specified conditions. 

          3)Provides that the CHRB may authorize mixed breed racing that  
            sanctions, among other things, either an association to  
            conduct a quarter horse meeting to include Appaloosa races and  
            Arabian races with the consent of the quarter horse horsemen's  
            organization or a race between a quarter horse and a  







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            thoroughbred horse at a thoroughbred meeting with the consent  
            of the thoroughbred horsemen's organization, if each contracts  
            with the association with respect to the conduct of the racing  
            meeting.

          This bill:

          1)Provides that the CHRB may authorize a licensed thoroughbred  
            racing association to conduct up to six nonthoroughbred races  
            per calendar year with the consent of the organization  
            representing thoroughbred horsemen and horsewomen.

          2)Makes it explicit that a nonthoroughbred race shall not be  
            held when a fair in the northern zone is conducting a race  
            meet without that fair's consent.

          3)Requires amounts from those wagers to be deducted and  
            distributed as if the wagers were placed on a thoroughbred  
            race.

          4)Makes minor code maintenance changes, as specified.

          5)Contains an urgency clause, to take effect immediately.

          Background

          Purpose of AB 558.  Current law provides for many different  
          types of horse racing, including flat racing, jump racing,  
          harness racing, and endurance racing.  Each type of racing has  
          different breeds that excel in a specific type of race and  
          generally, entry in such races is restricted to certain breeds.

          The author's office states "that Arabian horses are widely known  
          for being the oldest purebred horse in the world and were  
          originally bred for war.  Today the Arabian horse is primarily  
          used in endurance flat racing.  On tracks around the world,  
          these swift and magnificent purebred Arabians are capturing the  
          attention and imagination of a large and growing racing public."

          The author's office also notes that there are over 653,000  
          purebred Arabian horses in the United States with five states  
          offering limited Arabian horse racing.   Specifically, the  
          author's office references Churchill Downs and Keeneland (both  
          of which are in Kentucky) and Pimlico Racecourse in Maryland  
          which host grade I Arabian events as part of major race  








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          programs.

          The author's office points out that racing in California was  
          legalized via a constitutional amendment in 1933 and since that  
          time thoroughbred and quarter horses have been allowed to race  
          in virtually all flat races offered in the state while Arabians  
          have been restricted to race dates at fairs.  This bill is  
          intended to permit racing associations that conduct thoroughbred  
          races to organize a limited number of races per year for other  
          breeds, such as Arabian horses.  Additionally, the author's  
          office contends that this bill contains an urgency clause to  
          help facilitate a tentative promotional and marketing agreement  
          that the Los Angeles Turf Club has reached with Arabian horse  
          racing interests to showcase Arabian horses over the Santa Anita  
          Derby weekend (April 9 & 10).

          Staff comments.  As currently drafted, this bill empowers the  
          CHRB to authorize a racing association that conducts a  
          thoroughbred racing meet to include up to six nonthoroughbred  
          races per calendar year pursuant to specified conditions.  A  
          nonthoroughbred could include, Arabian, quarter horse,  
          Appaloosa, harness, etc.  If the purpose of this bill is to  
          promote Arabian horses at race meets in California the author  
          may wish to define "nonthoroughbred" to mean Arabian.  

          Prior/Related Legislation
          
          SB 819 (Committee on Governmental Organization, Chapter 438,  
          Statutes of 2013) among other things, provided that the CHRB may  
          authorize pari-mutuel wagering on Breeders' Cup races to be run  
          at the host venue and on one nonthoroughbred race, as specified.

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          Yes


            SUPPORT:  

          Los Angeles Turf Club (Source)
          California Thoroughbred Breeders Association
          Golden Gate Fields
          Thoroughbred Owners of California

          OPPOSITION:









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          None received