BILL ANALYSIS Ó
AB 1295
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Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
AB 1295
(Gray) - As Introduced February 27, 2015
SUBJECT: Horse racing: out-of-state thoroughbred races:
limitation exception
SUMMARY: 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.
EXISTING LAW:
1) Grants the California Horse Racing Board (CHRB) the
authority to regulate the various forms of horse racing
authorized in this state.
2) Authorizes a thoroughbred racing association or fair to
distribute the audiovisual signal and accept wagers on the
results of out-of-state Thoroughbred races conducted in the
United States during the calendar period the association or fair
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is conducting a race meeting, including days on which there is
no live racing being conducted by the association or fair,
defined.
3) Provides that the total number of Thoroughbred races
imported by associations or fairs on a statewide basis under
these provisions are required to not exceed 50 per day on days
when live Thoroughbred or fair racing is being conducted in the
state, with the exception of prescribed races, including races
imported into the combined central and southern zones when there
is no live Thoroughbred or fair racing being conducted in the
combined central and southern zones.
4) 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 Breeders' Cup, the Dubai Cup, or the Haskell Invitational.
5) 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.
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FISCAL EFFECT: This bill is keyed non-fiscal by Legislative
Counsel.
COMMENTS:
Purpose of the bill : Current law limits the number of races
that may be imported by a Thoroughbred association or fair 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.
This bill is intended to help increase the wagering handle for
California's daytime race meets when no live Thoroughbred or
fair racing is occurring in northern California. The goal of
this bill is to increase purses, racetrack revenue, and
breeders' awards in California.
Purses are important to California's racing industry because
they provide revenue to horse owners for their racing operations
and to breeders through an increase in the value of their
breeding stock. When fewer live races are run and/or imported
into California for wagering, less money is generated for these
two funds.
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The author states this bill will provide live Thoroughbred or
fair race meets with a marketing tool to increase on-track and
off-track attendance on the aforementioned days. These extra
imported races will give patrons the opportunity to wager on
more races to offset the lack of live racing in northern
California.
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
event.
Racetrack Attendance : Over the past 25 years, the industry has
witnessed a general decline in the number of people attending
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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.
Related legislation : AB 650 (Perea) of 2015. Would exempt from
the 50-imported race per day limitation, races imported that are
part of the race card of the Blue Grass Stakes. (Pending in
Assembly G.O. Committee)
SB 187 (Hall) of 2015. Adds the "Wood Memorial" to the group of
stake races in Horse Racing Law which are exempt from the
50-race per day limit on imported races. (Senate Floor -
Consent calendar)
Prior legislation : 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
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
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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.
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), 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
imported statewide for satellite wagering by associations or
fairs.
SB 379 (Denham), Chapter 443, Statutes of 2007. Added the
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"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.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531
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