BILL ANALYSIS Ó
AB 2619
Page 1
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