BILL ANALYSIS
Bill No: AB
1289
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Dean Florez, Chair
2007-2008 Regular Session
Staff Analysis
AB 1289 Author: Price
As Amended: June 18, 2008
Hearing Date: June 24, 2008
Consultant: Chris Lindstrom
SUBJECT
Fairs: wagering: out-of-zone, out-of-state, and
out-of-country
DESCRIPTION
AB 1289 makes a technical change to the horse racing law
dealing with the distribution of proceeds with regards to
overlap of racing dates between Humboldt County Fair and
San Mateo County Fair.
AB 1289 allows the San Mateo County Fair, or other fair or
racing association with overlapping racing dates with the
Humboldt County Fair, to continue to receive and split
satellite wagering revenue when their signal distributor,
Bay Meadows, ceases to operate.
EXISTING LAW
Existing law authorizes any other fair or thoroughbred
association which is running concurrently to the Humboldt
County Fair, to distribute the satellite signal and accept
out-of-zone, out-of-state and out-of-country wagers
consistent with the restrictions currently imposed on the
San Mateo County Fair in this circumstance.
Existing law authorizes the San Mateo County Fair to
operate a satellite wagering facility on the fairgrounds or
on leased premises in San Mateo County, if the racing
AB 1289 (Price) continued
Page 2
association licensed in the year 2002 to conduct
thoroughbred race meetings at Bay Meadows is not so
licensed in any subsequent year.
Existing law specifies that if the racing association
licensed in the year 2002 to conduct a thoroughbred racing
meeting there is not licensed to do so in any subsequent
year, the fair could conduct its racing dates at a facility
operated by a thoroughbred racing association or fair
licensed to conduct a meeting in the northern zone.
AB 1289 (Price) continued
Page 3
BACKGROUND
Purpose of the bill. According to the author's office,
under current law, the Humboldt and San Mateo County fairs
share a satellite signal of horse racing. The law allows
wagers to be accepted and revenue to be shared. This bill
will allow whatever fair or racing association takes over
the San Mateo dates and the Humboldt County Fair to
continue to receive and split satellite wagering revenue
when their signal distributor, Bay Meadows, ceases to
operate.
Background. Each year when the Humboldt and San Mateo
County Fairs concurrently hold race meets, the San Mateo
County Fair is authorized to distribute the Humboldt County
satellite signal and accept wagers (this is known as the
"overlap"). Current law provides that only one simulcast
host is authorized in a racing zone at any one time. Both
Bay Meadows and Humboldt are in the Northern Zone.
As part of the overlap, San Mateo is required to give
Humboldt .75% of the license fees generated from the
out-of-zone, out-of-state, or out-of-country handle. From
the remaining amount, 50% shall be retained by San Mateo to
be distributed equally as commissions and purses, and 50%
shall be paid to the state as a license fee. This is, in
essence, the commission that Humboldt gets for the wagering
made on its races via simulcast.
For nearly 60 years, the San Mateo County Fair has been
operating its racing meet at the Bay Meadows facility
because the fairgrounds and Bay Meadows enclosure are
adjacent to each other. They share the same satellite
wagering facility.
Humboldt County has been conducting a racing meet for well
over a century. It is one of the oldest in the fair
circuit. Simulcast racing is a major part of the racing
industry. The survival of many fair racing operations is
dependent on income generated from simulcast wagering.
This bill allows Humboldt to continue its racing meets and
offer its patrons the opportunities to watch and wager on
simulcast races, as well.
PRIOR/RELATED LEGISLATION
AB 1289 (Price) continued
Page 4
AB 2338 (Papan), Chapter 1063, Statutes of 2002 . Allows the
CHRB to preserve the San Mateo County Fair's satellite
wagering facility should Bay Meadows cease to exist.
AB 672 (Strom-Martin), Chapter 27, Statutes of 2001 .
Permits the Humboldt County Fair to continue to receive
satellite wagering revenue if their signal distributor (the
San Mateo Fair) ceases to operate, by shifting the signal
distribution to another in-state racing entity.
AB 762 (Papan), Chapter 848, Statutes of 2001 . Authorizes
CHRB to reallocate the San Mateo County Fair's racing dates
to another racing facility (whether another fair or private
facility) when Bay Meadows becomes unavailable for racing.
AB 2011 (Hauser), Chapter 219, Statutes of 1996 . Provides
that three-fourths of one-percent of the out-of-zone
wagering handle generated by the San Mateo County Fair
shall be allocated to the Humboldt County Fair rather than
be paid to the state as a license fee.
AB 3090 (Machado), Chapter 741, Statutes of 1996 . Provides
CHRB with the authority to grant combined racing dates at
fair meets with the anticipation that Bay Meadows would be
closing.
SUPPORT: (As of June 20, 2008)
Humboldt County Fair
OPPOSE: (As of June 20, 2008)
None on file.
FISCAL COMMITTEE: No.
**********
AB 1289 (Price) continued
Page 5