BILL ANALYSIS
AB 2205
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2205 (Garrick)
As Amended August 14, 2008
Majority vote
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|ASSEMBLY: |75-0 |(May 15, 2008) |SENATE: |28-1 |(August 20, |
| | | | | |2008) |
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Original Committee Reference: G.O.
SUMMARY : Authorizes the California Horse Racing Board (CHRB)
to allocate dates to licensed associations or racing fairs in
the southern or central zone 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.
The Senate amendments provide that:
1)Excluding venues under construction for the purpose of
expanded year-round stabling and training for Thoroughbred
race horses, 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, the dates formerly allocated to that
venue shall be available for allocation by the board to
licensed associations or racing fairs in the southern or
central zone.
2)Upon allocation of dates pursuant to this section, 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 when aggregated among the
combined southern and central zones.
3)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, as defined.
EXISTING LAW :
1)Provides that CHRB regulate the various forms of horse racing
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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.
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.
AS PASSED BY THE ASSEMBLY , this bill allowed the CHRB to
authorize the Del Mar Fair (the 22nd District Agricultural
Association) to use allocations of racing weeks from the central
zone and conduct Thoroughbred racing at Del Mar race
track 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.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This bill, as amended in the Senate is consistent
with Assembly actions.
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Purpose of the bill : According to the author, this bill is
designed to provide the CHRB with the means to reallocate racing
dates in the event that Hollywood Park shuts down, as currently
anticipated after the summer 2009 meet. The bill addresses
concerns raised by various members of the horse racing industry,
and is designed to protect the existing dates for the various
racing associations and fairs, while also giving the industry
more flexibility in terms of annually developing a dates
allocation proposal, which must then be approved by CHRB.
If 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 and adding a turf course, in order to host a full season
of "major-league" racing.
Supporter's note that racing facilities at Santa Anita Park
cannot physically 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.
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
live horse racing events has prompted racetracks to rely on
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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.
Prior 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.
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
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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)
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0007433