BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1289|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 1289
Author: Price (D)
Amended: 6/18/08 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 9-0, 6/24/08
AYES: Florez, Battin, Denham, Harman, Negrete McLeod,
Padilla, Vincent, Wiggins, Yee
NO VOTE RECORDED: Wyland
ASSEMBLY FLOOR : Not relevant
SUBJECT : Fairs: wagering: out-of-zone, out-of-state,
and out-of-
country races
SOURCE : Author
DIGEST : This bill makes clarifying changes to existing
law governing the distribution of proceeds relating to the
overlap of racing dates between the Humboldt County Fair
and the San Mateo County Fair. This bill makes other
clarifying changes concerning the satellite wagering
distribution and these fairs.
ANALYSIS : 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-county wagers consistent with the restrictions
CONTINUED
AB 1289
Page
2
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
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.
This bill:
1.Makes a technical change to the horse racing law dealing
with the distribution of proceeds with regards to overlap
of racing dates between the Humboldt County Fair and the
San Mateo County Fair.
2.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.
Comments
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 allows
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
AB 1289
Page
3
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 percent of the license fees generated from the
out-of-zone, out-of-state, or out-of-country handle. From
the remaining amount, 50 percent shall be retained by San
Mateo to be distributed equally as commission and purses,
and 50 percent 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 2338 (Papan), Chapter 1063, Statutes of 2002 . Allows
the California Horse Racing Board (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
the CHRB to reallocate the San Mateo County Fair's racing
AB 1289
Page
4
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/26/08)
Humboldt County Fair
TSM:cm 6/26/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****