BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2048
                                                                  Page  1

          Date of Hearing:   April 30, 2008

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

                    AB 2048 (Silva) - As Amended:  April 9, 2008 

          Policy Committee:                              Governmental  
          Organization Vote:                            11 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill increases the number of out-of-state or out-of-country  
          races that can be imported by a harness or quarter horse  
          association during a live meet from six to eight each day. 

           FISCAL EFFECT  


          Potential increase in state license fee revenues from increased  
          wagering opportunities. 


           COMMENTS  

           1)Rationale  . The sponsors of the bill, the Los Alamitos Quarter  
            Horse Racing Association, hope that increasing the number of  
            wagering opportunities during their live meets will provide  
            them with additional revenue that can be used to support the  
            breeding, owning and racing of harness and Quarter Horses and  
            allow them to expand their existing breeding incentives  
            program.

           2)Background  . 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 betting patrons,  
            as evidenced by modest increases in overall wagering activity.  








                                                                  AB 2048
                                                                  Page  2

            This has also helped the industry offset a continued reduction  
            in on-track wagering activity. 

           3)Harness racing  is a form of horse-racing in which  
            standard-bred horses race in a specified gait, either trotting  
            or a faster gait called pacing. The jockey sits in a  
            two-wheeled cart pulled by the horse. In California, harness  
            racing is held exclusively at Cal Expo in Sacramento.  For  
            2008, the harness racing meets are scheduled from December 21,  
            2007 to July 31, 2008 and from September 10, 2008 to December  
            20, 2008. 

           4)Quarter horse racing  in California is held exclusively at Los  
            Alamitos race track.  Unlike thoroughbreds, which make up most  
            professional racing and often race longer distances, quarter  
            horses are bred to sprint short distances ranging from 220 to  
            870 yards. The Los Alamitos meet lasts virtually all year long  
            with the 2008 meet lasting from December 27, 2007 until  
            December 21, 2008.
           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081