BILL ANALYSIS Ó AB 1786 Page 1 Date of Hearing: April 20, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1786 (Cooley) - As Introduced February 4, 2016 ----------------------------------------------------------------- |Policy |Governmental Organization |Vote:|18 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill modifies the requirements 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, Maine, or the Province of Alberta, Canada. AB 1786 Page 2 2)Changes the requirement that races be scheduled for both two-year-old and three-year-old trotters to a requirement that races be scheduled for either two-year-old or three-year-old trotters. 3)Deletes the requirement that two- and three-year-old races be divided into colt and filly divisions. 4)Establishes the percentages to be allocated for horses finishing in first through fifth place, inclusive, regardless of the number of starters in the race. FISCAL EFFECT: Negligible fiscal impact. COMMENTS: 1)Background. Existing law provides incentives for the breeding and owning of California-bred horses. The California Standardbred Sires Stakes Committee (CSSSC) is a non-profit public benefit corporation that administers the Standardbred Breeders Program (Program). The Program is funded from the breakage at harness race meets and an additional one percent takeout on all exotic wagering at harness race meets. In FY 2014-15, the Program generated approximately $225,000. AB 1786 Page 3 While the Program provides financial incentives for the breeding and development of Standardbred horses, there has nevertheless been a steep decline in the number of Standardbred foals born in California. In 2015, there were just 15 Standardbred foals born, compared to 190 born in 2004. According to the sponsor of the bill, the California Harness Horsemen's Association, this decline can be attributed to breeders leaving California for other states that have slot machine revenues to supplement purse pools. 2)Purpose. According to supporters, AB 1786 is will help support 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. Analysis Prepared by:Luke Reidenbach / APPR. / (916) 319-2081