BILL ANALYSIS                                                                                                                                                                                                    






                                                       Bill No:  AB  
          3074
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                           Senator Dean Florez, Chair
                           2007-2008 Regular Session
                                 Staff Analysis



          AB 3074  Author:  Governmental Organization
          As Introduced:  March 13, 2008
          Hearing Date:  June 24, 2008
          Consultant:  Chris Lindstrom


                                     SUBJECT  

                           Horse racing: racing days.
                                   
                                   DESCRIPTION
           
          AB 3074 authorizes 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.

                                   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 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.

          Existing law 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  




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          day as the American Quarter Horse Racing Challenge. 

          Existing law authorizes Thoroughbred racing associations or  
          fairs to distribute the audiovisual signal and accept  
          wagers on the 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.

          Existing law 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.

          Existing law 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.

                                    BACKGROUND
           
          Purpose of the bill.  According to the author's office,  
          this bill will give the California harness racing industry  
          a marketing tool to increase on-track and off-track  
          attendance on the day that the Kentucky Futurity is run.   
          Further, the author's office contends that the bill will  
          provide the industry with a mechanism to increase track  
          commissions, purses, breeder's awards, and state license  
          fees.  

          Background.  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 in law.  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. 





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                            PRIOR/RELATED LEGISLATION
           
           AB 2048 (Silva), 2007-2008 Legislative Session  .  Allows a  
          harness and Quarter Horse racing association to import not  
          more than eight races on live racing days.  (In this  
          committee on June 24, 2008)
          
          AB 1736 (Governmental Organization), Chapter 444, Statutes  
          of 2007  .  Adds the Travers Stakes to the group of specific  
          stake races which are 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.

           SUPPORT:   (As of June 20, 2008)





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          None on file.
           
          OPPOSE:   (As of June 20, 2008)

          None on file.

           FISCAL COMMITTEE:   Senate Appropriations Committee


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