BILL ANALYSIS
Bill No: AB
2205
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Dean Florez, Chair
2007-2008 Regular Session
Staff Analysis
AB 2205 Author: Garrick
As Amended: June 19, 2008
Hearing Date: June 20, 2008
Consultant: Chris Lindstrom
SUBJECT
Horse racing: racing weeks: 22nd District Agricultural
Association.
DESCRIPTION
AB 2205 provides that, in the event a thoroughbred racing
venue in the central zone in 2008 is not available for
racing in 2009 or thereafter, the dates formerly allocated
to that venue shall be available for allocation to other
associations or fairs.
The bill provides that the associations and fairs that
conducted licensed race meetings in 2008 in the southern or
central zone may conduct additional racing using an
allocation of those unused dates from the central zone.
The bill provides that absent its consent to accept a
lesser allocation, an association or fair that conducted
licensed race meetings in 2008 in the southern or central
zone shall be entitled to an allocation of not less than
the dates allocated to it during 2007 or 2008, whichever is
greater.
The bill provides that an association or fair continuing to
conduct racing in 2009 and beyond, together with the
organization representing thoroughbred horsemen, shall
annually, on a date set by the board, submit an agreed upon
plan of allocation that the CHRB may adopt.
AB 2205 (Garrick) continued
Page 2
The bill provides that the aggregate allocation of racing
weeks conducted in the southern and central zones shall not
exceed the total aggregate racing weeks permitted to be run
in the southern and central zones by current law.
EXISTING LAW
Existing law requires the CHRB to make allocations of
racing weeks, including simultaneous racing between zones,
as it deems appropriate.
Existing law specifies that the maximum number of racing
weeks that may be allocated for horse racing other than at
fairs, shall be 42 weeks of thoroughbred racing per year in
the central zone; and seven weeks per year in the southern
zone (Del Mar).
Existing law provides that the southern zone consists of
the Counties of Imperial, Orange, Riverside, and San Diego.
The central zone consists of the Counties of Kern, Los
Angeles, San Bernardino, San Luis Obispo, Santa Barbara,
and Ventura.
BACKGROUND
Purpose of the bill. According to the author's office,
this bill is designed to provide the CHRB with the
flexibility to reallocate racing dates in the event that
Hollywood Park shuts down, as is threatened after the
summer 2009 meet. This bill allows Del Mar to potentially
receive additional dates (on top of their seven-week meet)
as long as the aggregate number of weeks in the southern
and central zones does not exceed 49 weeks.
Background. The bill address concerns raised by some
members of the horse racing industry, and are aimed at
protecting the existing dates for the various racing
associations and fairs, while also giving the industry a
little more flexibility autonomy in terms of annually
coming up with an allocation proposal, which must then be
approved by CHRB.
When Hollywood Park closes, other tracks in Southern
California will have to pick up the dates traditionally run
at Hollywood. However, the industry faces several
AB 2205 (Garrick) continued
Page 3
logistical and legal problems as it seeks to adjust to the
loss of a major, world-class racing facility. Under
current law, Del Mar is restricted to seven weeks of
racing. Fairplex (Los Angeles County Fair) is restricted
to three weeks. Complicating matters, Fairplex may need to
undertake major renovations and improvements, including
replacing its existing oval with a mile track, in order to
host a full season of "major-league" racing.
Many argue that the Santa Anita Park racing facilities
physically cannot handle running all of its dates, the Oak
Tree Racing Association's dates as well as Hollywood's
dates. If Fairplex has to close down for an extended
period to make these modifications, coupled with the
existing restriction on the number of week that can be run
at Del Mar, the Santa Anita facilities may be overwhelmed.
This bill allows the racing associations and fairs in the
central and southern zones (LA and San Diego Counties) to
get together and present a plan allocating racing dates to
the remaining facilities that takes into account the
logistical problems of losing a major venue. It provides
the flexibility to distribute the racing weeks
notwithstanding length of meet restrictions or the need to
shuffle things up to allow for the improvements to be made
at Fairplex. At the same time, it protects the remaining
facilities by guaranteeing them at least the same number of
weeks they were authorized to run in 2008 in perpetuity.
PRIOR/RELATED LEGISLATION
AB 241 (Price), Chapter 594, Statutes of 2007. 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.
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.
AB 2205 (Garrick) continued
Page 4
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 Fairs & Exposition Fund for CHRB
administrative costs.
AB 2830 (Negrete McLeod), 2001-2002 Legislative 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)
SB 281 (Ayala), 1997-1998 Legislative 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)
SUPPORT: (As of June 20, 2008)
California Thoroughbred Trainers
Golden Gate Fields
Santa Anita Park
Thoroughbred Owners of California
OPPOSE: (As of June 20, 2008)
None on file.
FISCAL COMMITTEE: Senate Appropriations Committee
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