BILL ANALYSIS
AB 3074
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 3074 (Governmental Organization Committee)
As Amended August 18, 2008
2/3 vote
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|ASSEMBLY: |70-2 |(May 15, 2008) |SENATE: |34-0 |(August 25, 2008) |
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SUMMARY: 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 and increases,
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 is conducting a live
race meet.
The Senate amendments :
1)Increases, 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 is conducting a
live race meet with approval by the California Horse Racing
Board (CHRB).
2)Eliminates the ceiling on the total number of out-of-state
Thoroughbred races that may be imported in a given year.
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)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. Exempts from that
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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.
4)Provides that wagering on these races may occur without the
consent of the horsemen/women participating in the meet, and
without regard to the amount of purses involved with the
races, so long as the total number of thoroughbred races on
which wagers are accepted in any given year does not exceed
the total number of Thoroughbred races imported in 1998.
5)Authorizes Thoroughbred racing associations or fairs to
distribute the audiovisual signal and accept wagers on the
results of 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.
FISCAL EFFECT : According to the Senate Committee analysis,
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 also increase the number of out-of-state races on
which Thoroughbred and fair racing associations may simulcast
and accept wagers on each day from 23 to 32. Allowing an
association or fair to import more out-of-state races will give
California racetracks more leverage with tracks outside of the
state. Presently, due to the 23 limitation, California
Thoroughbred and fair tracks are sending their signal to
out-of-state locations, which generates little revenue for
purses and commissions. If California Thoroughbred or fair
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meets were able to accept more out-of-state races under some
type of reciprocity agreement, a majority of the money wagered
in California would stay in the state for commissions, purses,
breeder's awards, and state license fees.
AB 3074 will give California Horse Racing Industry a marketing
tool to increase on-track and off-track attendance because more
quality races from out-of-state locations would be able to be
offered to their wagering patrons. This bill will also give the
industry 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 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.
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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
FN: 0007385