BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 6, 2016


                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION


                                  Adam Gray, Chair


          AB 2619  
          (Gray) - As Introduced February 19, 2016


          SUBJECT:  Horse racing:  quarter horse races


          SUMMARY:    Allows the California Horse Racing Board (CHRB) to  
          authorize a licensed quarter horse racing association that is  
          conducting a live racing meeting in this state to accept wagers  
          on a quarter horse stakes race with a purse equal to or greater  
          than $100,000. 


          EXISTING LAW:  


          1)Provides that California Horse Racing Board (CHRB) shall  
            regulate the various forms of horse racing authorized in this  
            state.  



          2)Provides that CHRB shall have all powers necessary to carry  
            out the purposes of the Horse Racing Law, such as adopting  
            rules and regulations to protect the public, allocating dates  
            for and controlling horse racing and pari-mutuel wagering, and  
            enforcing all rules and regulations.

          3)Authorizes a licensed quarter horse racing association that is  








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            conducting a live racing meeting in this state to accept  
            wagers on races conducted by the racing association that  
            conducts the American Quarter Horse Racing Challenge, if the  
            races are conducted on the same day as the American Quarter  
            Horse Racing Challenge.

          4)Permits a harness or Quarter Horse association conducting a  
            race meeting to accept wagers on the results of out-of-state,  
            out-of-country, and sometimes other harness or Quarter Horse  
            races, if specified conditions are met, including that the  
            association conducts at least seven live races and imports not  
            more than eight races on live racing days, as specified.

          5)Authorizes the inclusion of wagers in the pari-mutuel pools of  
            the out-of-state association that conducts the races on which  
            the wagers are placed.



          FISCAL EFFECT:  Unknown


          COMMENTS:  


           Purpose of the bill  :  The author's office notes that over the  
          years existing law has been amended to allow specific notable  
          races to be imported outside of an eight-race per day limit, as  
          defined in current law.  This has been done for scheduling,  
          promotional and financial reasons.  





          Additionally, the author's office points out that there has been  
          a general decline in the number of people attending and wagering  
          at live horse tracks in California due to a number of factors,  
          including increased competition from other forms of gaming,  








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          unwillingness of customers to travel a significant distance to  
          racetracks and the availability of off-track wagering.  This  
          decline in 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.





          This measure would allow a quarter horse racing association in  
          California to import and accept wagers on a quarter horse stakes  
          race from across the country with a purse equal to or greater  
          than $100,000.  





          The author's office believes this measure will give California's  
          quarter horse racing industry a marketing tool to increase  
          on-track and off-track attendance on a specific day and provide  
          the industry with a mechanism to increase track commissions,  
          purses, and breeder's awards.  Purses provide revenues directly  
          to horsemen (owners and trainers) through winnings of their  
          horses; purses also indirectly provide revenues to breeders.   
          Statistical data analysis has shown that as purses increase the  
          expected price of a buying a horse increases leading to an  
          increase in the supply of foals, yearlings and associated  
          bloodstock (mares and stallions).


           Prior legislation  :  AB 897 (Hall), Chapter 225, Statutes of  
          2011.  Authorized the CHRB to permit a licensed California  
          quarter horse racing association that is conducting a live  
          racing meeting to accept wagers on the full card of races  
          conducted by another racing association on the date that other  
          association conducts the Texas Classic Futurity and Remington  
          Park Futurity.








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          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.    





          AB 2201 (Coto) Chapter 253, Statutes of 2010.   Authorized the  
          CHRB to permit a California harness racing association to accept  
          wagers on the full card of races conducted by another racing  
          association on the date of the "Cane Pace."





          AB 2790 (Committee on Governmental Organization) Chapter 141,  
          Statutes of 2010.  Added the Arlington Million to the group of  
          specific stake races which are exempt from the 32-race per day  
          limit on imported races.





          AB 3074 (Committee on Governmental Organization) Chapter 510,  
          Statutes of 2008.  Among other things, increased from 23 to 32,  
          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.  Also, allowed a  
          harness racing association in California to import all of the  








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          races conducted on Kentucky Futurity day.





          AB 2048 (Silva) Chapter 439, Statutes of 2008.   Among other  
          things, allowed harness and quarter horse racing associations  
          and fairs to offer wagering on eight harness or quarter horse  
          races broadcast by satellite on each day live races are run. 





          SB 1183 (Margett) Chapter 232, Statutes of 2004.  Authorized a  
          harness association to import the full cards of races held by  
          the association hosting the Breeder's Crown Stakes, the  
          Meadowlands Pace, the Hambletonian, or the North American Cup on  
          the days that those races are being run.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file




          Opposition


          None on file








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