BILL ANALYSIS Ó
AB 1295
Page 1
ASSEMBLY THIRD READING
AB
1295 (Gray)
As Introduced February 27, 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: 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.
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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
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
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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: None. This bill is keyed non-fiscal by the
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 in southern California when no
live thoroughbred or fair racing is occurring in northern
California.
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.
Purses are important to California's racing industry because they
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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.
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 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.
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Related legislation: AB 650 (Perea) of the current legislative
session. 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 on the Assembly floor)
SB 187 (Hall) of the current legislative session. 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.
(Assembly Rules Committee)
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 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
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.
SB 899 (Denham), Chapter 279, Statutes of 2010. Deleted the
statewide cap on the number of out-of-country thoroughbred races
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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
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: 0000332
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