BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 3074
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          ASSEMBLY THIRD READING
          AB 3074 (Governmental Organization Committee)
          As Introduced March 13, 2008
          2/3 vote

           GOVERNMENTAL ORGANIZATION 11-0  APPROPRIATIONS      16-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Torrico, Plescia, Davis,  |Ayes:|Leno, Walters, Caballero, |
          |     |De Leon, Jeffries,        |     |Davis, DeSaulnier,        |
          |     |Levine, Mendoza,          |     |Emmerson, Furutani,       |
          |     |Portantino, Price, Silva, |     |Huffman, Karnette, La     |
          |     |Tran                      |     |Malfa, Lieu, Ma,          |
          |     |                          |     |Nakanishi, Nava, Sharon   |
          |     |                          |     |Runner, Solorio           |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorize the California Horse Racing Board (CHRB) to  
          permit a California harness racing association to accept wagers  
          on the full card of races conducted by another racing  
          association on the date of the Kentucky Futurity, as specified.

           EXISTING LAW  :

          1)Provides that CHRB regulate the various forms of horse racing  
            authorized in this state.

          2)Authorizes a licensed harness racing association that is  
            conducting a live racing meeting in this state to accept  
            wagers on the full card of races conducted by another racing  
            association on the day that other association conducts the  
            Breeder's Crown Stakes, the Meadowlands Pace, the  
            Hambletonian, or the North American Cup.

          3)Authorizes a licensed Quarter Horse racing association that is  
            conducting a live racing meeting in this state to accept  
            wagers on races conducted by the racing association that  
            conducts the American Quarter Horse Racing Challenge, if the  
            races are conducted on the same day as the American Quarter  
            Horse Racing Challenge. 

          4)Authorizes Thoroughbred racing associations or fairs to  
            distribute the audiovisual signal and accept wagers on the  








                                                                 AB 3074
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            results of certain out-of-state and international Thoroughbred  
            races during the calendar period the association or fair is  
            conducting live racing, including days on which there is no  
            live racing being conducted by the association or fair.

          5)Limits the number of races that may be imported by  
            associations and fairs to no more than 23 races per day on  
            days when live Thoroughbred or fair racing is being conducted  
            in this state, with specified exceptions.

          6)Exempts from that 23-race per day limit races imported that  
            are part of the race card of certain prominent races,  
            including the Kentucky Derby, the Kentucky Oaks, the Preakness  
            Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the  
            Breeders' Cup, or the Haskell Invitational.

           FISCAL EFFECT  :   Potential increase in state license fee  
          revenues from increased wagering opportunities.

           COMMENTS  :  This bill will allow a harness racing association in  
          California to import all of the races conducted on Kentucky  
          Futurity day, irrespective of the six-race day limit.  The  
          Kentucky Futurity is a stakes race for three-year-old trotters,  
          held annually at The Red Mile in Lexington, Kentucky since 1893.  
           It is part of the Triple Crown of Harness Racing for Trotters.   
          It is one of the few events in the sport that uses the  
          traditional format in which a horse must win two heats to take  
          home the trophy.  Winning the Kentucky Futurity has never been  
          only about money, it has also been about the prestige and  
          tradition associated with the race. 

          This bill will give the California harness racing industry a  
          marketing tool to increase on-track and off-track attendance on  
          that specific day.  This bill will also provide the industry  
          with a mechanism to increase track commissions, purses,  
          breeder's awards, and state license fees.  

          Related legislation:  AB 2812 (Silva) of 2008, allows a harness  
          and Quarter Horse racing association to import not more than  
          eight races on live racing days.  (Assembly Third Reading)

          Prior legislation:  AB 1736 (Assembly Committee on Governmental  
          Organization), Chapter   444, Statutes of 2007, adds the  
          "Travers Stakes" to the group of specific stake races which are  








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          exempt from the 23-race per day limit on imported races, as  
          specified.

          SB 379 (Denham), Chapter 443, Statutes of 2007, adds the Dubai  
          World Cup race to a specified list of races that would be  
          exempted from the 23-race per day limit on imported races for  
          satellite wagering in California.

          SB 2035 (Karnette), Chapter 268, Statutes of 2002, allows a  
          harness or Quarter Horse racing association to "bank" up to two  
          out-of-state or out-of-county imported races on a specific race  
          day, and then add those races to another race day's importation  
          schedule.

          SB 590 (Perata), Chapter 936, Statutes of 2001, authorizes  
          Thoroughbred racing associations and fairs in the northern  
          racing zone to increase the number of imported racing simulcasts  
          available to be wagered upon if the CHRB reduces the number of  
          live racing days.

          SB 1183 (Margett), Chapter 232, Statutes of 2004, authorizes a  
          harness racing association that is conducting a live race  
          meeting to accept wagers on the full card of races conducted by  
          another racing association on the day the other racing  
          association conducts the Breeder's Crown Stakes, the Meadowlands  
          Pace, the Hambletonian or the North American Cup.

          AB 509 (Jerome Horton), Chapter 235, Statutes of 2004, allows a  
          Thoroughbred or fair association to distribute the audiovisual  
          signal and accept wagers on the results of out-of-country  
          Thoroughbred races during the calendar period the association or  
          fair is conducting a race meeting under specified conditions.
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531 



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