BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2205|
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THIRD READING
Bill No: AB 2205
Author: Garrick (R)
Amended: 8/14/08 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 racing fairs that conduct
licensed race meetings in 2008 in the southern or central
zone in accordance with specified requirements, as
specified.
Senate Floor Amendments of 8/14/08 clarify that no
thoroughbred racing association or racing fair shall
receive more than 25 race weeks per year, authorizes the
Los Angeles County Fair Association (Fairplex) to remain
CONTINUED
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eligible for additional race dates even if it has to close
for a short time to make infrastructure improvements to
become a first rate thoroughbred racing facility, re-states
existing law that the allocation of race dates in the
central and southern zones shall be made by the CHRB, and
deletes the requirement that a thoroughbred racing
association, racing fair, and the Thoroughbred Owners of
California meet annually to develop a race date allocation
plan that may be adopted by CHRB.
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:
1.Authorizes the CHRB, if a venue used for thoroughbred
racing by an association or racing fair licensed to
conduct thoroughbred racing in the central zone in 2008
is not available for racing in 2009 or thereafter, to
allocate the dates formerly allocated to that venue to
licensed associations or racing fairs in the southern or
central zone.
2.Provides that, upon allocation of dates pursuant to these
provisions, no association or racing fair licensed to
conduct thoroughbred racing in the southern or central
zones may receive more than 25 weeks of thoroughbred
racing in the combined southern and central zones.
3.Prohibits the aggregate allocation of racing weeks
conducted in the southern and central zones from
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exceeding the total aggregate racing weeks permitted to
be run in those zones, as specified.
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
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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 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
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zone is conducting racing and the fair has outstanding debt
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 8/18/08)
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 8/18/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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