BILL ANALYSIS
AB 3073
Page 1
Date of Hearing: April 23, 2008
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Alberto Torrico, Chairman
AB 3073 (Governmental Organization Committee) - As Introduced:
March 13, 3008
SUBJECT : Horse racing: racing days.
SUMMARY : Allows a fair racing association to conducted racing
during a period when general fair activities are not being
conducted.
EXISTING LAW :
1)Provides that CHRB regulate the various forms of horse racing
authorized in this state.
2)Allows CHRB to allocate a maximum of 14 days of horse racing
to any fair association in the northern zone. The racing
dates shall be days during the period in which general fair
activities are conducted.
3)Provides that any fair racing association that conducted
racing in the central or southern zone prior to January 1,
1980, shall be entitled to be allocated up to three weeks of
racing. The racing dates shall be days during the period in
which general fair activities are conducted.
4)Permits CHRB to allocate horse racing dates for combined fair
race meetings under the following conditions:
a) CHRB will only allocate combined fair race meeting dates
between July 1 and October 31; and,
b) The total combined number of dates shall not exceed the
total dates of the combined fair racing associations in
1995.
1)Permits, pursuant to AB 2338 (Papan), Chapter 1063, Statutes
of 2002, the San Mateo County Fair to conduct a live racing
meeting in the northern zone at another site within or outside
San Mateo County if its present site, Bay Meadows, closes.
2)Authorizes, pursuant to AB 2554 (Thomson), Chapter 874,
AB 3073
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Statues of 2002, CHRB to permit the Solano County Fair to
conduct live racing meetings at another site within or outside
Solano County, if the site of its 2002 racing meeting is no
longer available for horse racing in any subsequent year.
3)Requires CHRB or its subcommittees, to take public testimony
and make all determinations on the allocation of racing dates
during a public hearing.
FISCAL EFFECT : None.
COMMENTS :
Background :
Historically, since the advent of pari-mutual wagering in
California in 1933, various fairs throughout the state have been
allocated racing dates by CHRB to be held in conjunction with
their fair dates. The Legislature established that any fair is
eligible to apply to CHRB for racing dates. For more than 70
years, the California fair circuit has displayed the sport of
horse racing to communities throughout the state and contributed
to the agribusiness economy.
Currently, CHRB allocates racing dates to nine fairs throughout
California. Granting additional flexibility to CHRB and the
fairs relating to the allocation of race dates is not a new
concept. AB 3090 (Machado), Chapter 741, Statutes of 1996,
allows CHRB to allocate horse racing days for combined fair
horse racing meetings. For example, if the CHRB allocates the
Solano County Fair 10 days of racing and the California
Exposition and State Fair 12 days of racing, those two entities
can combine their allocated dates and operate 22 days of live
racing at either facility.
Racing at fairs : Today, nine fairs conduct live racing in
California during the run of its fair. The California fair
circuit includes 93 days of Thoroughbred and other breed racing
at the following fairs: San Joaquin County (Stockton); Alameda
County (Pleasanton); Solano County (Vallejo); Sonoma County
(Santa Rosa); San Mateo County (San Mateo); Humboldt County
(Ferndale); California Exposition and State Fair (Sacramento)
Fresno (Fresno); and, the Los Angeles County Fair (Pomona).
The announced closure of Bay Meadows at the end of 2008
accelerates the need to improve northern California's fair
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racetracks. However, most fair racing facilities are in need of
maintenance and improvement to their facilities in order to
provide a high quality product for its racing fans and
participants.
The Alameda County Fair states, "As seen at Bay Meadows, the
private ownership model of racetracks is rapidly eroding. When
the value of the land for commercial development exceeds the
profits generated by horse racing, privately owned racetracks
are being sold so that private corporations can return profits
to their investors. "
Over the years, the above-mentioned fairs have invested in the
improvement of its facilities. However, time has proven that no
one fair can adequately raise the money necessary to replace,
build, or maintain the facilities needed for a state of the art
race meet.
Purpose of this bill : According to the author, in view of the
prevailing economic condition of horse racing in California, it
might be worthwhile for CHRB to grant fairs greater flexibility
to conduct live horse racing activities in the state.
Currently, a fair must operate live racing dates during the time
the fair is operating. If enacted, this bill would allow CHRB
to allocate racing dates to a fair even if the fair is not
conducting any type of fair activities.
The author believes that a fair association must be able to
offer a schedule of live horse racing that best supports the
community interests and the financial self-sufficiency of the
fair. The author believes that the optimal schedule might
include dark days in the week where "general" fair activities
are not offered and/or days leading up to the start of the fair
or days after the fair concluded.
The author additionally states that there is an abundance of
testimony in the legislative record regarding the economic
condition of the horseracing industry, and specifically, the
direct impact on the allocation of race dates for the fairs.
The Division of Fairs and Expositions within the Department of
Food and Agriculture completed an overall analysis of live horse
racing at fairs and concluded among other things, that the
activity is extremely important to a fairs financial viability.
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Supporters note this bill will improve racing at California's
fairs and improve California racing by supporting tracks in
northern California such that they can host prominent races and
entertain today's horseracing enthusiasts. Supporters further
note that fairs in the state need greater flexibility in race
dates because it will enhance the overall quality of live racing
in the northern and southern racing zones.
Prior legislation :
AB 765 (Evans), Chapter 613, Statutes of 2007, in addition to
reauthorizing Advance Deposit Wagering, the bill allowed 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.
REGISTERED SUPPORT / OPPOSITION :
Support
Thoroughbred Owners of California
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531