BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1295


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          ASSEMBLY THIRD READING


          AB  
          1295 (Gray)


          As Introduced  February 27, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |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          |                   |
          |                |      |                       |                   |
          |                |      |                       |                   |
           ------------------------------------------------------------------- 


          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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