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