BILL ANALYSIS Ó AB 1295 Page 1 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. AB 1295 Page 2 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 AB 1295 Page 3 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 AB 1295 Page 4 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. AB 1295 Page 5 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 AB 1295 Page 6 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 AB 1295 Page 7