BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 2048|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 2048
          Author:   Silva (R)
          Amended:  4/9/08 in Assembly
          Vote:     27

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  9-0, 6/24/08
          AYES:  Florez, Battin, Denham, Harman, Negrete McLeod,  
            Padilla, Vincent, Wiggins, Yee
          NO VOTE RECORDED:  Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  72-1, 5/15/08 - See last page for vote


           SUBJECT  :    Horse racing:  harness or quarter horse races:   
          out-of-state 
                      or out-of-country

           SOURCE  :     Los Alamitos Quarter Horse Racing Association


           DIGEST  :    This bill increases the amount of races a  
          harness and quarter horse racing association may import in  
          live racing days from six to eight races.

           ANALYSIS :    Existing law authorizes the California Horse  
          Racing Board (CHRB) to regulate the various forms of horse  
          racing authorized in the state.

          Existing law authorizes a licensed harness racing  
          association that is conducting a live racing meeting in  
                                                           CONTINUED





                                                               AB 2048
                                                                Page  
          2

          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.

          Existing law 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.

          Existing law provides that 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 other harness or quarter  
          horse races, if specified conditions are met, including  
          that the association conducts at least seven live races and  
          imports not more than six races on live racing days, as  
          specified.

          Existing law 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 places.

          Existing law 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 fairs is conducting live racing,  
          including days on which there is no live racing being  
          conducted by the association or fair.

          Existing law 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 conditions.

          Existing law 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  







                                                               AB 2048
                                                                Page  
          3

          Invitational.

          This bill:

          1.Increases the amount of races a harness or 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 CHRB and the horsemen's  
            organization contracting with the association, as  
            specified.

           Comments

           Under existing 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, allows a harness or Quarter Horse  
          racing association to increase 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 of 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 the modest increase  
          in overall wagering activity.  This bill also helped this  
          industry offset a continued reduction in on-track wagering  
          activity.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/4/08)







                                                               AB 2048
                                                                Page  
          4


          Los Alamitos Quarter Horse Racing Association (source)
          Los Alamitos Race Course

           ARGUMENTS IN SUPPORT  :    According to the sponsor of this  
          bill, the Los Alamitos Quarter Horse Racing Association,  
          the 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.


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Aghazarian, Arambula, Beall, Benoit, Berg,  
            Berryhill, Brownley, Caballero, Charles Calderon, Carter,  
            Cook, Coto, Davis, De La Torre, De Leon, DeSaulnier,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fuentes,  
            Fuller, Furutani, Gaines, Galgiani, Garcia, Hancock,  
            Hayashi, Hernandez, Horton, Houston, Huff, Huffman,  
            Jeffries, Jones, Keene, Krekorian, La Malfa, Laird, Leno,  
            Levine, Lieu, Ma, Maze, Mendoza, Nakanishi, Nava, Niello,  
            Nunez, Parra, Plescia, Portantino, Price, Sharon Runner,  
            Ruskin, Salas, Saldana, Silva, Smyth, Solorio, Spitzer,  
            Strickland, Swanson, Torrico, Tran, Villines, Walters,  
            Wolk, Bass
          NOES:  Anderson
          NO VOTE RECORDED:  Blakeslee, Dymally, Garrick, Karnette,  
            Lieber, Mullin, Soto


          TSM:cm  8/4/08   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****