BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 650|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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CONSENT
Bill No: AB 650
Author: Perea (D)
Introduced:2/24/15
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/9/15
AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer,
Hernandez, Hill, Hueso, Lara, McGuire, Runner, Vidak
ASSEMBLY FLOOR: 80-0, 5/14/15 - See last page for vote
SUBJECT: Horse racing: out-of-state thoroughbred races: Blue
Grass Stakes.
SOURCE: Author
DIGEST: This bill 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.
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.
AB 650
Page 2
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.
This bill adds the "Blue Grass Stakes " to the group of stakes
races in Horse Racing Law which are exempt from the 50-race per
day limit on imported races.
Background
Blue Grass Stakes. The Blue Grass Stakes, currently known as the
Toyota Blue Grass Stakes due to sponsorship by the Toyota Motor
Corporation, is an American Grade 1 horse race for 3-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 thoroughbred racing
industry. First run at the Kentucky Association track in
Lexington in 1911, the Blue Grass Stakes has, from its
inception, served as an important prep race for the Kentucky
Derby. The race is run at a distance of nine furlongs (1-1/8
miles) on dirt.
Purpose of AB 650. 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.
AB 650
Page 3
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
wagering.
AB 650
Page 4
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 1295 (Gray, 2015) provides 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.
AB 364 (Gipson, 2015) 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.
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 6/9/15)
California Authority of Racing Fairs
OPPOSITION: (Verified 6/9/15)
None received
ASSEMBLY FLOOR: 80-0, 5/14/15
AYES: Achadjian, Alejo, 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,
AB 650
Page 5
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
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