BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 3073|
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THIRD READING
Bill No: AB 3073
Author: Assembly Governmental Organization Committee
Amended: As introduced
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
ASSEMBLY FLOOR : 76-0, 5/1/08 - See last page for vote
SUBJECT : Horse racing: racing days
SOURCE : Author
DIGEST : This bill allows a fair racing association to
conduct racing during a period when general fair activities
are not being conducted.
ANALYSIS : 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
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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
conditions:
1. CHRB will only allocate combined fair race meeting dates
between July 1 and October 31.
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.
This bill deletes the requirement that the racing days be
during the period in which general fair activities are
conducted, thereby, allowing a fair racing association to
conduct racing during a period when general fair activities
are not being conducted.
Comments
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.
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Currently, a fair must operate live racing dates during the
time the fair is operating. If enacted, this bill allows
CHRB to allocate racing dates to a fair even if the fair is
not conducting any type of fair activities.
The author's office 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's office 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's office additionally states that there is an
abundance of testimony in the legislative record regarding
the 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 parimutuel 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
CHRB allocates the Solano County Fair 10 days of racing and
the California Exposition and State Fair 12 days of racing,
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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.
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.
NOTE: Please refer to the Senate Governmental
Organization Committee analysis for related
legislation.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/26/08)
Thoroughbred Owners of California
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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.
ASSEMBLY FLOOR :
AYES: Adams, Aghazarian, Anderson, Arambula, Bass, Beall,
Benoit, Berg, Berryhill, Blakeslee, Brownley, Caballero,
Charles Calderon, Carter, Cook, Coto, Davis, De La Torre,
De Leon, DeSaulnier, DeVore, Duvall, Dymally, Emmerson,
Eng, Evans, Feuer, Fuentes, Fuller, Furutani, Gaines,
Galgiani, Garcia, Garrick, Hancock, Hayashi, Hernandez,
Horton, Houston, Huff, Huffman, Jeffries, Jones,
Karnette, Keene, La Malfa, Laird, Leno, Lieber, Lieu, Ma,
Maze, Mendoza, Mullin, Nakanishi, Nava, Niello, Parra,
Plescia, Portantino, Price, Ruskin, Salas, Saldana,
Silva, Smyth, Solorio, Spitzer, Strickland, Swanson,
Torrico, Tran, Villines, Walters, Wolk, Nunez
NO VOTE RECORDED: Krekorian, Levine, Sharon Runner, Soto
TSM:mw 7/1/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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