BILL ANALYSIS
AB 1289
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1289 (Price)
As Amended August 22, 2008
Majority vote
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|ASSEMBLY: | |(June 5, 2007) |SENATE: |38-0 |(August 29, |
| | | | | |2008) |
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(vote not relevant)
Original Committee Reference: G.O.
SUMMARY : Makes a technical change to horse racing law relating
to the distribution of proceeds during that time of the year
when the racing dates between the Humboldt County Fair and San
Mateo County Fair overlap. Extends the sunset date on a program
to provide an additional take-out from wagers for defraying
workers' compensation insurance premiums for the harness racing
industry.
The Senate amendments :
1)Allow the Humboldt County Fair to continue to receive and
split satellite-wagering revenues when their signal
distributor, Bay Meadows, ceases to operate live racing. The
revenue split will now occur between the fair and another
racing association or fair.
2)Extend the sunset date, from January 1, 2009, to January 1,
2014, which authorizes a harness racing association, upon
approval of the organization representing harness horsemen and
horsewomen, to deduct an additional 1% from the conventional
pari-mutuel pools of harness races for workers' compensation
costs of trainers, as specified.
EXISTING LAW :
1)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.
AB 1289
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2)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.
3)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
4)Authorizes, until January 1, 2009, upon approval of the
organization representing harness horsemen and horsewomen, a
separate deduction of 1% from the exotic pari-mutuel pools of
horse races to help defray workers' compensation costs.
AS PASSED BY THE ASSEMBLY , this bill extended the sunset
provision relating to Advance Deposit Wagering (ADW) from
January 1, 2008, to January 1, 2011. Added a requirement that
employees who operate and administer ADW on a daily basis shall
work in California
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : According to the author, 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 the Humboldt County Fair to
continue to receive and split satellite-wagering revenues when
their signal distributor, Bay Meadows, ceases to operate live
racing in August 2008. The revenue split will now occur between
the Humboldt County Fair and another racing association or fair.
In addition, this bill extends the sunset date from January 1,
2009, to January 1, 2014, for a program, which provides
additional relief to harness racing trainers by defraying
workers' compensation insurance premiums. AB 701 (Jerome
Horton), Chapter 40, Statutes of 2004, provides the horse racing
industry with some relief through the redistribution of the
pari-mutuel handle on specific wagers for designated racing
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associations. AB 701 contained a January 1, 2009, sunset date.
AB 2103 (Plescia) of 2008 which is in enrollment, extends the
sunset date for workers' compensation relief from 2009 to 2014
for the Thoroughbred and Quarter Horse industry in California.
Unfortunately, the harness racing industry was omitted from that
sunset date extension. AB 1289 corrects that error.
The California horse racing industry's program to offset the
workers' compensation costs for trainers has been highly
successful. Industry rates have declined by over 70%, which has
helped to prevent the exodus of trainers and horses from
California. Furthermore, the California Harness Horsemen's
Association (CHHA) has established industry safety training
programs, treatment oversight programs, return to work programs,
and safety equipment research programs, which have drastically
reduced the number of accidents and the cost of resulting
claims.
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 "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 handle from wagers made on
out-of-zone, out-of-state, and out-of-country races. The
monies paid to the Humboldt County Fair come from license fee
revenues. From the remaining amount, 50% is retained by San
Mateo Fair to be distributed equally as commission and purses,
and 50% shall be paid to the state as a license fee. The
survival of many fair racing operations is dependent on income
generated from simulcast wagering. This bill allows Humboldt to
continue its racing meet 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 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
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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 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 1% 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.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0007661