BILL ANALYSIS
Bill No: AB
3073
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Dean Florez, Chair
2007-2008 Regular Session
Staff Analysis
AB 3073 Author: Governmental Organization
As Introduced: March 13, 2008
Hearing Date: June 24, 2008
Consultant: Chris Lindstrom
SUBJECT
Horse racing: racing days.
DESCRIPTION
AB 3073 allows a fair racing association to conduct racing
during a period when general fair activities are not being
conducted.
EXISTING LAW
Existing law authorizes the California Horse Racing Board
(CHRB) to regulate the various forms of horse racing
authorized in this state.
Existing law 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.
Existing law 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.
Existing law permits CHRB to allocate horse racing dates
for combined fair race meetings under the following
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conditions:
1) CHRB will only allocate combined fair race
meeting dates between July 1 and October 31; and,
2) The total combined number of dates shall not
exceed the total dates of the combined fair racing
associations in 1995.
Existing law permits 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.
Existing law authorizes 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.
Existing law requires CHRB or its subcommittees, to take
public testimony and make all determinations on the
allocation of racing dates during a public hearing.
BACKGROUND
Purpose of the bill. According to the author's office, 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
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economic condition of the horse racing 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.
Background. Historically, since the advent of parimutual
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 County
(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
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.
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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.
Arguments in support. 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/RELATED LEGISLATION
SB 561 (Margett), 2007-2008 Legislative Session . Increases
the number of weeks that a racing association may conduct
racing in the northern zone from 22 weeks to 35 weeks a
year. Increases the number of race days that may be
allocated to a fair from 14 days to 4 weeks a year and
removes the prohibition on racing outside of the period in
which general fair activities are operated. Increases the
allocation of dates for a combined fair horse racing
meeting from July 1 - October 31 to June 1 - October 31
each year and deletes the limit on the total combined
number of dates allocated for those meetings.
AB 2205 (Garrick), 2007-2008 Legislative Session . Allows
CHRB to authorize the Del Mar Fair to use allocations of
racing weeks from the central zone and conduct thoroughbred
racing at Del Mar race track throughout the year in the
event that Hollywood Park closes. (Set in this committee
on June 24, 2008)
AB 241 (Price), Chapter 594, Statutes of 2007 . Provides
that any racetrack in the central zone that conducted
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racing in 2007, but has since closed may continue to offer
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 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)
Thoroughbred Owners of California
OPPOSE: (As of June 20, 2008)
None on file.
FISCAL COMMITTEE: No.
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