BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1786


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          Date of Hearing:   April 6, 2016


                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION


                                  Adam Gray, Chair


          AB 1786  
          (Cooley) - As Introduced February 4, 2016


          SUBJECT:  Horse racing:  the California Standardbred Sires  
          Stakes Program


          SUMMARY:  Modifies the requirements for Standardbred horses  
          eligible to race in the California Standardbred Sires Stakes  
          Program.  Specifically, this bill:  


          1)  Expands eligibility to race in the California Standardbred  
          Sires Stakes Program to include the offspring of registered  
          Standardbred stallions standing in Iowa, Wisconsin, Minnesota,  
          Michigan, or Maine, or the Province of Alberta, Canada.


          2)  Requires that races be scheduled for two-year-old or  
          three-year-old trotters and would delete the requirement that  
          two- and three-year-old races be divided into colt and filly  
          divisions.


          3)  Establishes the percentages to be allocated for horses  
          finishing in first through fifth place, inclusive, regardless of  
          the number of starters in the race.










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          4)  Makes conforming changes.


          EXISTING LAW:  


          1)  Provides that the California Horse Racing Board (CHRB) is  
          responsible for adopting rules and regulations for the  
          protection of the public and the control of horse racing and  
          pari-mutuel wagering, as well as enforcing all laws, rules, and  
          regulations dealing with horse racing and pari-mutuel wagering.


          2)  Establishes the California Standardbred Sires Stakes Program  
          for Standardbred horses bred in California, and provides that an  
          offspring of a registered California Standardbred stallion  
          standing in California during an entire breeding season is  
          eligible to race in the program.





          3)  Requires the CHRB to set a schedule of races for the program  
          in accordance with specified requirements, including, among  
          other things, that races be scheduled by the California  
          Standardbred Sires Stakes Committee, at its discretion, for  
          two-year-old and three-year-old trotters, as specified, and that  
          two- and three-year-old races be divided into colt and filly  
          divisions.





          4)  Establishes the manner of dividing the purse in California  
          Standardbred sires stakes races, and sets forth the percentages  
          to be allocated for horses placing in the race based on the  
          number of participating starters in a race.








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          FISCAL EFFECT:  Unknown.


          COMMENTS:  


          Purpose of the bill:  The sponsor of this measure, the  
          California Harness Horsemen's Association, points out that the  
          California Legislature created the California Standardbred Sires  
          Stakes Committee (CSSSC) in 1977 to "encourage agriculture and  
          the breeding of horses in California." In short, the CSSSC's  
          purpose is to provide financial incentives for the breeding and  
          development of Standardbred racehorses.  In FY 2014-15, the  
          Standardbred Breeders Program generated approximately $225,000.   
          By law, the CSSSC provides oversight and administration of the  
          Sires Stakes Fund and all related Sires Stakes programs  
          including the California Stallion Register, Sires Stakes  
          eligibility and staked generations, Sires Stakes series races,  
          purses and awards. 


          According to the sponsor, in the last decade, there has been a  
          steep decline in the number of Standardbred foals - which are  
          used exclusively in harness racing - born in California. In 2004  
          there were 190 Standardbred foals born in California but only 15  
          in 2015.  Breeders have left California for other states that  
          have slot machine revenues to supplement purse pools.


          The sponsor notes that the shrinking Standardbred breeding  
          industry in California has significantly contributed to a  
          decline of racehorses and a resulting loss of jobs on both  
          breeding farms and racetracks.  In 2006, Standardbreds raced  
          over 120 days a year at racetracks in California.  Today there  








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          are only 54 live race days a year, resulting in staffing  
          reductions of 50% or more.


          Under this measure, the requirements for Standardbred horses to  
          qualify to race in California Sire Stakes races would be  
          modified to allow horses bred in specified states but foaled in  
          California to qualify for entry to race.  


          Supporters state that this bill will create an incentive that  
          will help revive the overall breeding of Standardbred horses on  
          California farms, attract more horses to California, increase  
          the overall horse population, and add more live racing days to  
          the annual calendar.


           Prior Legislation  :  AB 280 (Silva), Chapter 98, Statutes of  
          2011.  Changed the definition of a California-bred Standardbred  
          horse to delete the requirement that the Standardbred foal be  
          conceived in California, as specified.  





          AB 1578 (Governmental Organization Committee), Chapter 550,  
          Statutes of 2009.  Among other things, required 15 percent of  
          the funds remaining after specified deductions from conventional  
          and exotic pari-mutuel wagering pools resulting from  
          Thoroughbred wagers made in California to be used for the  
          payment of bonuses to California-bred horses in maiden allowance  
          races in California.





          AB 2538 (Strickland), Chapter 278, Statutes of 2004, changed the  








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          definition of a California Standardbred horse for these purposes  
          to a Standardbred foal conceived in California by a stallion  
          registered with the California Standardbred Sire Stakes Program,  
          deleting the requirements in existing law that the mare drop the  
          horse in California after the conception.





          SB 738 (Karnette), Chapter 24, Statutes of 2003, defined a  
          "California bred Standardbred horse" as a Standardbred foal  
          dropped by a mare in California after being conceived in  
          California by a stallion registered with CSSSP.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Harness Horseman's Association 


          Golden Bear Racing




          Opposition


          None on file











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          Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531