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