BILL ANALYSIS
AB 2205
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Date of Hearing: April 16, 2008
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Alberto Torrico, Chairman
AB 2205 (Garrick) - As Amended: April 2, 2008
SUBJECT: Horse racing: racing weeks: 22nd District
Agricultural Association.
SUMMARY : Allows the California Horse Racing Board (CHRB) to
authorize the Del Mar Fair to use allocations of racing weeks
from the central zone and conduct thoroughbred racing throughout
the year. Specifically, this bill :
1)Allows the CHRB to authorize the 22nd District Agricultural
Association (Del Mar Fair) to use allocations of racing weeks
from the central zone and conduct thoroughbred racing
throughout the year, whether or not those racing days coincide
with an annual fair, so long as the aggregate racing weeks
conducted in the southern and central zones do not exceed the
total aggregate racing weeks allocated, as specified.
EXISTING LAW :
1)Provides the CHRB regulate the various forms of horse racing
authorized in this state.
2)Provides that CHRB has the authority to allocate racing dates
for horse racing meetings, as it deems appropriate in the
public's interest.
3)Provides with respect to Thoroughbred racing, that no more
than 44 weeks may be allocated in the northern zone, 42 weeks
in the central zone and seven weeks per year in the southern
zone (Del Mar Thoroughbred Club). Limits a northern racing
fair to no more than 14 days of racing per year and a central
or southern fair to no more than three weeks of racing.
4)Defines "racing days" as days on which a licensed racing
association or fair is authorized by the board to conduct
horse racing.
5)Defines "racing weeks" as seven consecutive days during which
a licensed racing association or fair is authorized by the
CHRB to conduct horseracing for a minimum of five racing days.
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6)Provides that any racetrack in the central zone that conducted
racing in 2007, but has since closed may continue to operate a
satellite wagering. If the racetrack site is no longer
available for use as a satellite wagering facility, then the
owner of the racetrack may conduct satellite racing at another
location within that city, subject to approval of CHRB, as
specified.
FISCAL EFFECT : Unknown.
COMMENTS :
Purpose of the bill . According to the author, this bill might
end up being an important component to the stability and future
growth of the California horseracing industry.
Under current law, the southern racing zone is permitted to
conduct thoroughbred racing for a total of 7 weeks each year
(Del Mar Thoroughbred Club). The central racing zone is
permitted to conduct thoroughbred racing for a total of 42 weeks
each year (Santa Anita Park and Hollywood Park). In the event
of a track closure in the central racing zone, there is no
flexibility in current law that would allow a track in the
southern racing zone to absorb some of those lost thoroughbred
racing weeks. AB 2205 would allow the CHRB to allocate
thoroughbred racing in the southern racing zone beyond the 7
weeks authorized under current law, as long as the aggregate
number of thoroughbred racing weeks in the central and southern
racing zones do not exceed 49 weeks.
In support, the Thoroughbred Owners of California (TOC) writes,
"the goal of this bill is to mitigate disruption to the
California horseracing economy and jobs in the event an existing
racetrack shuts down. This bill provides strategic flexibility
to allow racing and training at the Del Mar racetrack any time
during the existing year-round calendar, without increasing the
total number of racing weeks."
Background . There has been a general decline in the number of
people attending and wagering at live horse racetracks in
California due to a number of factors, including increased
competition from other forms of gaming, unwillingness of
customers to travel a significant distance to racetracks and the
availability of off-track wagering. The declining attendance at
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live horse racing events has prompted racetracks to rely on
revenues from in-state and out-of-state satellite wagering and
account wagering. Considering all of this, the CHRB must begin
to look at race date alternatives should a licensed California
racetrack decide to cease live racing operations due to the
general declining economics within the business.
Hollywood Park racetrack in Inglewood, which is owned by the Bay
Meadows Land Company, has made it clear they want "help from the
state Legislature in the form of slot machines or video lottery
terminals to keep captive bettors at the track. If that does
not happen, the owner warned the track could be torn down and
replaced by commercial and real estate development in the
future.
There are large questions that need to be answered in
California's racing industry relating to its future (race dates
and stabling of horses). The industry is in the process of
identifying what the possibilities are and deciding which ones
are realistic and which ones are unrealistic.
The 22nd District Agricultural Association Fairgrounds, an
agency of the State of California, owns and operates the
fairgrounds. Its staff organizes four major annual events,
including the annual San Diego County Fair, and runs Surfside
Race Place, the year-round satellite horse racing facility. The
Del Mar Thoroughbred Club leases the facilities for its live
Thoroughbred meet each summer (43 days). Each year, hundreds of
consumer and trade promoters rent the fairgrounds facilities for
home and garden shows, dog shows, antique fairs, sports shows,
music festivals and much more. No tax dollars are used; the
fair is entirely self-supporting.
Committee amendment . The following amendment should be included
into the bill, to stay consistent with recent legislative
action: On page 2 line 4 after "law" insert: in the event a
venue used for thoroughbred racing by an association licensed to
conduct thoroughbred racing in the central zone in 2008 is not
available for racing in 2009 or thereafter,
Prior legislation .
AB 241 (Price), Chapter 594, Statutes of 2007, provides that any
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racetrack in the central zone that conducted racing in 2007, but
has since closed may continue to operate a satellite wagering.
If the racetrack site is no longer available for use as a
satellite wagering facility, then the owner of the racetrack may
conduct satellite racing at another location within that city,
subject to approval of CHRB, as specified.
AB 765 (Evans), Chapter 613, Statutes of 2007, provides that a
fair, combination of fairs, or an association conducting racing
at a fair, may, with CHRB approval, deduct an additional 1% from
its handle, to be used for maintenance and improvements at a
fair's racetrack inclosure, as specified.
SB 1227 (Soto), Chapter 918, Statutes of 2004, allows the Los
Angeles County Fair Association (LACFA/Fairplex) to retain any
increases above the 2004 level of the license fees for payment
of a capital expense loan. Any portion of the license fees in
excess of the loan payment amount will be deposited into the F&E
Fund for CHRB administrative costs.
SB 281 (Ayala) of the 1997-98 Session would have prohibited the
CHRB from allocating racing dates to a private thoroughbred
racing association if a fair racing association in the same zone
is
conducting racing and the fair has outstanding debt obligations
resulting from track improvements. (Gutted and amended in the
Assembly)
AB 2830 (Negrete McLeod) of the 2001-02 Session would have
allowed LACF to continue operating its satellite wagering
facility, should the fair decide to move its live racing meeting
as specified. (Gutted and amended in the Assembly)
REGISTERED SUPPORT / OPPOSITION :
Support
California Thoroughbred Trainers
Golden Gate Fields
Santa Anita Park
Thoroughbred Owners of California
Opposition
None on file
AB 2205
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Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531