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
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          |Author:    |Gray                                                 |
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          |Version:   |2/19/2016    Introduced                              |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Felipe Lopez                                         |
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          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