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)
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|COMMITTEE VOTE: |11-0 |(August 30, 2008) |RECOMMENDATION: |concur |
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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
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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.
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
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specific wagers for designated racing 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
revenue if their signal distributor (the San Mateo Fair) ceases to
operate, by shifting the signal distribution to another in-state
racing entity.
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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: 0007738