BILL ANALYSIS Ó AB 2619 Page 1 Date of Hearing: April 20, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2619 (Gray) - As Introduced February 19, 2016 ----------------------------------------------------------------- |Policy |Governmental Organization |Vote:|18 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill 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 any out-of-state quarter horse stakes race outside the state with a purse equal to or greater than $100,000. FISCAL EFFECT: AB 2619 Page 2 Negligible fiscal impact. COMMENTS: 1)Purpose. According to the author, this bill would give California's quarter horse racing industry a marketing tool to increase on-track and off-track attendance and provide the industry with a mechanism to increase commissions, purses, and breeder's awards. 2)Background. 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, 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. In the late 1990's, California racetracks began importing additional races from out-of-state locations to provide California's horse racing patrons with the opportunity to wager on races offered by racetracks throughout the country. 3)Quarter horse racing around the country. Unlike thoroughbreds, which make up most professional racing and often race longer distances, quarter horses are bred to sprint short distances ranging from 220 to 870 yards. Quarter horse racing in AB 2619 Page 3 California is held exclusively at Los Alamitos racetrack. In 2015, Los Alamitos offered 150 nights of quarter-horse racing, and total handle was $244 million. According to the American Quarter Horse Association, there are scheduled quarter horse stakes races with purses equal or greater to $100,000 scheduled in Texas, New Mexico, and Oklahoma in 2016. 4)Related legislation. A number of recent bills have authorized the CHRB to allow racing associations to import additional races in order to boost purses and attendance. Those bills include: a) 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. b) 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. c) 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 2619 Page 4 d) 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. e) 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 races conducted on Kentucky Futurity day. f) 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. g) 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. Analysis Prepared by:Luke Reidenbach / APPR. / (916) 319-2081 AB 2619 Page 5