BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2619


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          Date of Hearing:  April 20, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


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


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          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:








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          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  








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            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."










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             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














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