BILL ANALYSIS Ó
AB 650
Page 1
ASSEMBLY THIRD READING
AB
650 (Perea)
As Introduced February 24, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+----------------------+--------------------|
|Governmental |18-0 |Gray, Linder, | |
|Organization | |Achadjian, Alejo, | |
| | |Bigelow, Cooley, | |
| | |Cooper, Daly, Eduardo | |
| | |Garcia, Gipson, Roger | |
| | |Hernández, | |
| | |Jones-Sawyer, Levine, | |
| | |Mayes, Perea, Salas, | |
| | |Waldron, Wilk | |
| | | | |
| | | | |
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SUMMARY: 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.
EXISTING LAW:
1)Provides that the California Horse Racing Board (CHRB) shall
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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 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: Unknown. This bill is keyed non-fiscal by
Legislative Counsel.
COMMENTS:
Purpose of this bill: The Blue Grass Stakes, currently the Toyota
Blue Grass Stakes due to sponsorship by the Toyota Motor
Corporation, is an American Grade one horse race for
three-year-old thoroughbreds held annually in April at Keeneland
Racecourse in Lexington, Kentucky. The race is named for the
Bluegrass Region of Kentucky, characterized by grass having
bluish-green culms, which is known as the "heart" of the
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thoroughbred racing industry. First run at the Kentucky
Association track in Lexington in 1911, the Blue Grass has, from
its inception, served as an important prep race for the Kentucky
Derby.
This bill provides that all races imported by a thoroughbred
association or fair that are part of the race card of the overall
Blue Grass Stakes 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
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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 wagering.
Prior/Related Legislation: AB 1295 (Gray) of the current
legislative 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 on the Assembly floor)
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 Committee), 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 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
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to import for simulcast wagering purposes from eight 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 Committee), 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.
AB 3074 (Governmental Organization Committee), Chapter 508,
Statutes of 2008. Authorized the CHRB to allow harness racing
tracks to accept wagers during the Kentucky Futurity and increased
from 23 to 32 the total number of thoroughbred races that may be
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imported statewide for satellite wagering by associations or
fairs.
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 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.
Analysis Prepared by:
Eric Johnson / G.O. / (916) 319-2531 FN: 0000331