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:  8/19/08 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  :  76-0, 5/1/08 - See last page for vote


           SUBJECT  :    Horse racing

           SOURCE  :     Author


           DIGEST  :    This bill allows a fair racing association to  
          conduct racing during a period when general fair activities  
          are not being conducted.  This bill adds trainers to the  
          list of parties whom a person may not influence, induce, or  
          conspire with to affect race results.  This bill exempts  
          recognized vitamins or supplemental feeds approved by or in  
          compliance with the rules and regulations of the California  
          Horse Racing Board, and makes other technical and  
          nonsubstantive changes.

           Senate Floor Amendments  of 8/13/08 add trainers to the list  
          of parties who a person may not influence, induce, or  
                                                           CONTINUED





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          conspire with to affect race results through the  
          administration of drugs, among other things.  In addition,  
          the amendments exclude from the definition of drugs  
          recognized vitamins or supplemental feeds approved by or in  
          compliance with the rules and regulations or policies of  
          the California Horse Racing Board.

           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  
          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.







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          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.

          This bill adds trainers to the list of parties with whom it  
          is illegal to conspire to affect race results.  Trainers  
          care for and prepare horses for the horse race events.   
          Some horse racing enthusiasts say that a horse is only as  
          good as its trainer.  This anecdotal comment highlights the  
          important role a trainer plays in the day-to-day care and  
          preparation of horses for racing.  As such, it seems  
          reasonable that trainers are expressly added to the list of  
          parties with whom it is illegal to conspire to affect race  
          results.

          This bill also excludes from the definition of drugs  
          recognized vitamins or supplemental feeds approved by or in  
          compliance with the rules and regulations or policies of  
          CHRB rather than those that are approved by the  
          veterinarian representing CHRB.

          This bill adds the definition of "California-sired horse"  
          to the list of horses allowed to participate in a  
          California-bred race, and requires every licensee  
          conducting a horse racing meeting to, each racing day,  
          provide for the running of at least one race limited to  
          California-bred horses and California-sired horses, to be  
          known as the "California-bred race," as specified.

          This bill provides that a "California-sired horse" is a  
          thoroughbred that was conceived in California by a  
          registered California stallion.  A California-sired horse  
          is only eligible for entry in races restricted to  
          California-bred or California-sired horses and is not  
          eligible for any breeder or owner awards.
           
          Comments  







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          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 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  







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          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,  
          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.:  Yes    
          Local:  Yes







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           SUPPORT  :   (Verified  8/19/08)

          Thoroughbred Owners of California


           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  8/19/08   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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