BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2048
                                                                  Page  1

          Date of Hearing:   April 16, 2008

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Alberto Torrico, Chairman
                     AB 2048 (Silva) - As Amended:  April 9, 2008
           
          SUBJECT  :   Horse racing:  harness or quarter horse races:  
          out-of-state or out-of-country.

           SUMMARY  :   Increases the amount of races a harness and quarter  
          horse racing association may import on live racing days from 6  
          to 8 races.   Specifically,  this bill  :

          1)Increases the amount of races a harness and quarter horse  
            racing association may import (out-of-state or out-of-country)  
            on live racing days from six to eight races.

          2)Provides the harness or quarter horse association shall get  
            approval from the California Horse Racing Board (CHRB) and the  
            horsemen's organization contracting with the association, as  
            specified.

           EXISTING LAW :

          1)Provides that the California Horse Racing Board (CHRB)  
            regulate the various forms of horse racing authorized in this  
            state.

          2)Authorizes a licensed harness racing association that is  
            conducting a live racing meeting in this state to accept  
            wagers on the full card of races conducted by another racing  
            association on the day that other association conducts the  
            Breeder's Crown Stakes, the Meadowlands Pace, the  
            Hambletonian, or the North American Cup.

          3)Authorizes 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. 

          4)Provides CHRB is authorized to permit a harness or quarter  
            horse association conducting a race meeting to accept wagers  
            on the results of out-of-state, out-of-country, and sometimes  








                                                                  AB 2048
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            other harness or quarter horse races, if specified conditions  
            are met, including that the association conducts at least 7  
            live races and imports not more than 6 races on live racing  
            days, as specified.

          5)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.

          6)Authorizes thoroughbred racing associations or fairs to  
            distribute the audiovisual signal and accept wagers on the  
            results of certain out-of-state and international thoroughbred  
            races during the calendar period the association or fair is  
            conducting live racing, including days on which there is no  
            live racing being conducted by the association or fair.

          7)Limits the number of races that may be imported by  
            associations and fairs to no more than 23 races per day on  
            days when live thoroughbred or fair racing is being conducted  
            in this state, with specified exceptions.

          8)Exempts from that 23-race per day limit races imported that  
            are part of the race card of certain prominent races,  
            including the Kentucky Derby, the Kentucky Oaks, the Preakness  
            Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the  
            Breeders' Cup, or the Haskell Invitational.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :  

          The sponsor of this bill, Los Alamitos Quarter Racing  
          Association believes that revenues derived from this bill will  
          help to support the breeding, owning and racing of California  
          harness and Quarter Horses and supplement the existing breeding  
          incentive programs.

          Under present law, there is a limit on the number of imported  
          races that can be simulcast for wagering purposes by licensed  
          harness and Quarter Horse racing associations.  This bill, if  
          enacted, would allow a harness or Quarter Horse racing  
          association to increases the amount of races each association  
          may import on live racing days from six to eight races.  These  
          additional races will give more flexibility in scheduling  
          simulcast races, while not exceeding the cap on the number or  








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          simulcast races statutorily permitted to take place each year.

          In the late 1990's, California racetracks began importing  
          additional races from out-of-state locations to provide  
          California's horse racing patrons with the opportunity to wager  
          on quality races offered by racetracks throughout the country.   
          Since the introduction of this practice (which, incidentally is  
          authorized in many other states that likewise allow pari-mutuel  
          wagering on horse races), wagering on these out-of-state races  
          has been well received by the betting             patron, as  
          evidenced by modest increases in overall wagering activity.   
          This has also helped the industry offset a continued reduction  
          in on-track wagering activity.

           Related legislation  .  AB 3074 (Governmental Organization  
          Committee ) of 2008, authorizes the CHRB to permit a California  
          harness racing association conducting a live racing meeting to  
          accept wagers on the full card of races conducted by another  
          racing association on the day that other association conducts  
          the Kentucky Futurity.  (In Assembly G.O. Committee) 

           Prior legislation  .  AB 1736 (Assembly Committee on Governmental  
          Organization), Chapter   444, Statutes of 2007. adds the  
          "Travers Stakes" to the group of specific stake races which are  
          exempt from the 23-race per day limit on imported races, as  
          specified.

          SB 379 (Denham), Chapter 443, Statutes of 2007, adds the Dubai  
          World Cup race to a specified list of races that would be  
          exempted from the 23 race per day limit on imported races for  
          satellite wagering in California.

          SB 2035 (Karnette), Chapter 268, Statutes of 2002, allows a  
          harness or Quarter Horse racing association to "bank" up to two  
          out-of-state or out-of-county imported races on a specific race  
          day, and then add those races to another race day's importation  
          schedule.

          SB 590 (Perata), Chapter 936, Statutes of 2001, authorized  
          thoroughbred racing associations and fairs in the northern  
          racing zone to increase the number of imported racing simulcasts  
          available to be wagered upon if the CHRB reduces the number of  
          live racing days.

          SB 1183 (Margett), Chapter 232, Statutes of 2004. authorizes a  








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          harness racing association that is conducting a live race  
          meeting to accept wagers on the full card of races conducted by  
          another racing association on the day the other racing  
          association conducts the Breeder's Crown Stakes, the Meadowlands  
          Pace, the Hambletonian or the North American Cup.

          AB 509 (J. Horton), Chapter 235, Statutes of 2004, allows a  
          thoroughbred or fair association to distribute the audiovisual  
          signal and accept wagers on the results of out-of-country  
          thoroughbred races during the calendar period the association or  
          fair is conducting a race meeting under specified conditions.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Los Alamitos Race Course

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531