BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 3074|
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                                 THIRD READING


          Bill No:  AB 3074
          Author:   Assembly Governmental Organization Committee
          Amended:  8/18/08 in Senate
          Vote:     27

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  : 9-0, 06/24/08
          AYES: Florez, Battin, Denham, Harman, Negrete McLeod,  
            Padilla, Vincent, Wiggins, Yee
          NO VOTE RECORDED: Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  : 70-2, 05/15/08 - See last page for vote


           SUBJECT  :    Horse racing

           SOURCE  :     Author


           DIGEST  :    This bill authorizes the California Horse Racing  
          Board 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.

           Senate Floor Amendments  of 8/18/08 eliminate the ceiling on  
          the total number of out-of-state thoroughbred races that  
          may be imported in a given year.  In addition, the  
          amendments increase, from 23 to 32, the limitation on the  
          total number of out-of-state thoroughbred races that may be  
          imported per day by a thoroughbred association or fair that  
                                                           CONTINUED





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          is conducting a live race meet.

           ANALYSIS  :    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  
          day as the American Quarter Horse Racing Challenge.

          Existing law authorizes Thoroughbred racing association 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 living 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 for 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.

          This bill allows 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  







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          Kentucky Futurity is a stakes race for three-year-0ld  
          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.

          Existing law authorizes a thoroughbred racing association  
          or fair to distribute the audiovisual signal and accept  
          wagers on the results of out-of-state thoroughbred races  
          conducted in the United States during the calendar period  
          the association or fair is conducting a race meeting,  
          including days on which there is no live racing being  
          conducted by the association or fair, without the consent  
          of the organization that represents horsemen participating  
          in the race meeting and without regard to the amount of  
          purse, provided however, that the total number of  
          thoroughbred races on which wagers are accepted statewide  
          in any given year does not exceed the total number of  
          thoroughbred races on which wagers were accepted in 1998.   
          Existing law also provides, subject to exceptions, that the  
          total number of thoroughbred races imported by associations  
          or fairs on a statewide basis under these provisions not  
          exceed 23 days on days when live thoroughbred or fair  
          racing is being conducted in the state.

          This bill deletes the restriction limiting the total number  
          of thoroughbred races on which wagers are accepted  
          statewide in any given year to a number not exceeding the  
          total in 1998, as specified.  The bill also provides that,  
          subject to exceptions, the total number of thoroughbred  
          races imported by associations or fairs on a statewide  
          basis under these provisions shall not exceed 32 per day on  
          days when live thoroughbred or fair racing is being  
          conducted in the state.

           Comments

          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  







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          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.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          ASSEMBLY FLOOR  : 
          AYES:  Adams, Aghazarian, Arambula, Beall, Benoit, Berg,  
            Berryhill, Brownley, Caballero, Carter, Cook, Coto,  
            Davis, De La Torre, De Leon, DeSaulnier, DeVore, Duvall,  
            Emmerson, Eng, Evans, Feuer, Fuentes, Fuller, Furutani,  
            Galgiani, Garcia, Hancock, Hayashi, Hernandez, Horton,  
            Houston, Huff, Huffman, Jeffries, Jones, Keene,  
            Krekorian, La Malfa, Laird, Leno, Levine, Lieu, Ma, Maze,  
            Mendoza, Nakanishi, Nava, Niello, Nunez, Parra, Plescia,  
            Portantino, Price, Sharon Runner, Ruskin, Salas, Saldana,  
            Silva, Smyth, Solorio, Spitzer, Strickland, Swanson,  
            Torrico, Tran, Villines, Walters, Wolk, Bass
          NOES: Anderson, Gaines
          NO VOTE RECORDED: Blakeslee, Charles Calderon, Dymally,  
            Garrick, Karnette, Lieber, Mullin, Soto


          TSM:cm  8/19/08   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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