BILL ANALYSIS
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THIRD READING
Bill No: AB 2205
Author: Garrick (R)
Amended: 6/19/08 in Senate
Vote: 21
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 : 75-0 (Passed on Consent), 5/15/08 - See
last page for vote
SUBJECT : Horse racing: racing weeks: allocations
SOURCE : Author
DIGEST : This bill authorizes the California Horse Racing
Board (CHRB) to allocate the dates formerly allocated to a
venue to other associations or fairs that conduct licensed
race meetings in 2008 in the southern or central zone in
accordance with specified requirements, including, among
others, that a certain agreed upon plan of allocation be
submitted annually to the CHRB and that the aggregate
racing weeks conducted in the southern and central zones do
not exceed the total aggregate racing weeks allocated, as
specified.
CONTINUED
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ANALYSIS : Existing law requires the CHRB to make
allocations of racing weeks, including simultaneous racing
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.
This bill provides that:
1.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.
2.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 the
unused dates from the central zone.
3.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.
4.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 CHRB, submit an agreed upon plan of
allocation that the CHRB may adopt.
5.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
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southern and central zones by current law.
Comments
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
currently anticipated 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 addresses 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
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 weeks than 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 (Los Angeles and San Diego
Counties) to get together and present a plan allocating
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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 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 one percent 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 Fairs and Exposition Fund for CHRB
administrative costs.
AB 2830 (Negrete McLeod), 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. (Died on Senate Inactive File)
SB 241 (Ayala), 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
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obligations resulting from track improvements. (Subject
matter provisions were amended out in the Assembly)
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 7/7/08)
California Thoroughbred Trainers
Golden Gate Fields
Santa Anita Park
Thoroughbred Owners of California
Los Angeles County Fair Association (Fairplex)\
Oak Tree Racing Association
22nd District Agricultural Association
ASSEMBLY FLOOR :
AYES: Adams, Aghazarian, Anderson, Arambula, Beall,
Benoit, Berg, Berryhill, Blakeslee, 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, Houston,
Huff, Huffman, Jeffries, Jones, Keene, Krekorian, La
Malfa, Laird, Leno, Levine, Lieber, Lieu, Ma, Maze,
Mendoza, Mullin, 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
NO VOTE RECORDED: Dymally, Garrick, Horton, Karnette, Soto
TSM:cm 7/8/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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