BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Senator Isadore Hall, III
                                        Chair
                                2015 - 2016  Regular 

          Bill No:           AB 1786          Hearing Date:    6/14/2016
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          |Author:    |Cooley                                               |
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          |Version:   |2/4/2016    Introduced                               |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Arthur Terzakis                                      |
          |           |                                                     |
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          SUBJECT: Horse racing:  the California Standardbred Sires Stakes  
          Program


            DIGEST:    This bill makes modest and clarifying changes to the  
          California Standardbred Sires Stakes Program to allow horses  
          bred in specified states but foaled in California to qualify for  
          entry to race in this state.   

          ANALYSIS:
          
          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  







          AB 1786 (Cooley)                                   Page 2 of ?
          
          
            Standardbred Sires Stakes Committee, at its discretion, for  
            two-year-old and three-year-old trotters and two-year-old and  
            three-year-old pacers, 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.


          This bill:

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

          2)Makes minor changes to requirements pertaining to the  
            scheduling of races for trotters, as specified, and deletes  
            the requirement that two- and three-year-old races be divided  
            into colt and filly divisions.

          3)Modifies the current manner of dividing the purse in  
            California Standardbred Sires Stakes races by providing that  
            the percentages shall be allocated for horses finishing in  
            first through fifth place, inclusive, regardless of the number  
            of starters in the race. 

          Background

          The California Standardbred Sires Stakes Committee (CSSSC) was  
          created 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 which are bred to run in harness races.   
          Harness racing is a form of horse racing in which the horses  
          race at a specific gait (a trot or a pace) pulling two-wheeled  
          carts called sulkies.  Currently, there is one harness racing  
          association licensed to operate a racing meeting in California  
          (run at Cal-Expo). 

          Purpose of AB 1786.  The author's office notes that in the late  
          19th Century, Sacramento was internationally famous for horse  
          breeding that took place within the boundaries of the Rancho Del  








          AB 1786 (Cooley)                                   Page 3 of ?
          
          
          Paso land grant located northeast of the City. Sacramento's time  
          as a renowned location for horse breeding has long past.  
          However, the names of streets, neighborhoods, and even schools  
          that remain to this day show evidence of the former success of  
          horse breeding in Sacramento. 

          The author's office also points out that ten years ago  
          Standardbreds raced over 120 days a year in California.  Today,  
          there are only 54 race days a year which has resulted in a  
          drastic reduction of jobs at racetracks and breeding farms.   
          This bill is designed to help boost the dwindling number of  
          Standardbred horses available to run in harness races in this  
          state and encourage more owners to race their horses in  
          California.  

          
          Prior/Related Legislation
          
          AB 280 (Silva, Chapter 98, Statutes of 2011) changed the  
          definition of a California-bred Standardbred horse by deleting  
          the requirement that the Standardbred foal be conceived in  
          California, as specified.  

          AB 2538 (Strickland, Chapter 278, Statutes of 2004) changed the  
          definition of a California-bred Standardbred horse for purposes  
          of the incentive awards program by deleting the requirement in  
          existing law that the mare drop the horse in California after  
          the conception.

          SB 738 (Karnette, Chapter 24, Statutes of 2003) modified the  
          definition of a California-bred Standardbred horse for purposes  
          of the incentive awards program, as specified. 

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          No


            SUPPORT:  

          California Harness Horseman's Association (co-source)
          Golden Bear Racing (co-source)

          OPPOSITION:

          None received








          AB 1786 (Cooley)                                   Page 4 of ?
          
          

          ARGUMENTS IN SUPPORT:   Writing in support, the California  
          Harness Horsemen's Association and Golden Bear Racing state, "In  
          the last decade, there has been a steep reduction 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 and in 2015 there were  
          only 15.  Breeders have left California for other states that  
          have slot machine revenues to supplement purse pools.  Under  
          this bill, the requirements for horses to qualify to race in  
          California Sires Stakes races would be modified to allow horses  
          bred elsewhere but foaled in California to qualify.  We believe  
          this will create an incentive that will help revive breeding of  
          Standardbred horses on California farms, attract more horses to  
          our state, increase the horse population in California, and add  
          race days to our calendar."