BILL ANALYSIS                                                                                                                                                                                                    






                                                       Bill No:  SB  
          561
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                           Senator Dean Florez, Chair
                           2007-2008 Regular Session
                                 Staff Analysis



          SB 561  Author:  Margett
          As Introduced:  February 22, 2007
          Hearing Date:  January 8, 2008
          Consultant:  Chris Lindstrom


                                     SUBJECT  

                Horse racing: pari-mutuel wagering: technology.

                                   DESCRIPTION
           
          SB 561 authorizes electronic terminal wagering to be used  
          in pari-mutuel wagering on horse racing.

                                   EXISTING LAW

           Article IV, Section 19(b) of the Constitution of the State  
          of California provides that the Legislature may provide for  
          the regulation of horse races and horse race meetings and  
          wagering on the results.

          Existing law provides that the California Horse Racing  
          Board (CHRB) regulate the various forms of horse racing  
          authorized in California.

          Existing law authorizes pari-mutuel wagering on horse  
          racing at or disseminated by licensed racing associations  
          and fairs.

          Existing law requires the pari-mutuel system of wagering on  
          horse racing to be operated only by a totalizator or other  
          equipment approved by the California Horse Racing Board  
          (CHRB).

                                    BACKGROUND




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          Purpose of the bill.  According to the author's office,  
          this bill makes a techincal change to update the law to  
          keep up with technology.  In addition, the sponsor  
          indicates that this bill may be used to make any statutory  
          changes necessary to implement AB 765 (Chapter 613,  
          Statutes of 2007) which reauthorized advanced deposit  
          wagering in California.


          Totalizator.  A totalizator is the name of the system which  
          runs pari-mutuel wagering, calculating payoff odds as  
          wagers are made and payouts once a race is complete.   
          Electronic terminals are used by pari-mutuel clerks to key  
          in wagers into the system and by customers who place bets  
          into the system directly or through a wagering hub.


                            PRIOR/RELATED LEGISLATION
           
          AB 765 (Evans), Chapter 613, Statutes of 2007.   
          Reauthorizes horse racings ADW law which allows customers  
          to deposit funds into an account in order to place wagers  
          online of over the telephone.  

          AB 471 (Hertzberg), Chapter 198, Statutes of 2001.   
          Authorizes CHRB to permit racing associations to accept  
          advanced deposit wagers in California.

          SB 2054 (GO), Chapter 1082, Statutes of 2000.  Authorizes  
          CHRB to allow by regulation any association or fair to  
          offer any form of pari-mutuel wagering that is recognized  
          and permitted by Association of Racing Commissioners  
          International.  

           SUPPORT:   

          Golden Gate Fields
          Santa Anita Racecourse

           OPPOSE:   None on file as of January 4, 2008.  

           FISCAL COMMITTEE:   Senate Appropriations Committee






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