BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Isadore Hall, III Chair 2015 - 2016 Regular Bill No: AB 2619 Hearing Date: 6/28/2016 ----------------------------------------------------------------- |Author: |Gray | |-----------+-----------------------------------------------------| |Version: |2/19/2016 Introduced | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Felipe Lopez | | | | ----------------------------------------------------------------- SUBJECT: Horse racing: quarter horse races DIGEST: 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 a quarter horse stakes race with a purse equal to or greater than $100,000. ANALYSIS: Existing law: 1)Provides that 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 purpose 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)Authorized a licensed quarter horse racing association that is 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. AB 2619 (Gray) Page 2 of ? 4)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. This bill allows 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. Background 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, 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). AB 2619 (Gray) Page 3 of ? Prior/Related Legislation AB 558 (Low, Chapter 3, Statutes of 2016) provided that CHRB may authorize a racing association licensed to conduct a Thoroughbred race meet to include up to six non-Thoroughbred races per calendar year pursuant to specified conditions. SB 819 (Committee on Governmental Organization, Chapter 438, Statutes of 2013) provided, among other things, that CHRB may authorize pari-mutuel wagering on Breeders' Cup races to be run at the host venue and on one non-thoroughbred race, as specified. AB 897 (Chapter 225, Statutes of 2011) authorized 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 association conducts the Texas Classic Futurity and Remington Park Futurity. 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. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No SUPPORT: None received OPPOSITION: None received