BILL ANALYSIS
SB 561
Page 1
Date of Hearing: July 9, 2008
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mark Leno, Chair
SB 561 (Margett) - As Amended: June 16, 2008
Policy Committee: Governmental
Organization Vote: 13 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill increases the number of live racing days that may be
allocated by the California Horse Racing Board (CHRB) to a
thoroughbred or fair racing association in the northern zone.
Specifically, this bill:
1)Increases from 22 to 35 the number of weeks that a licensed
association can conduct thoroughbred racing.
2)Expands the maximum period for racing allocated to a fair from
two weeks to four weeks each year and removes the prohibition
on racing outside of the period in which general fair
activities are conducted.
3)Authorizes combined fair horse racing meetings in the month of
June and deletes the limitation on the total combined number
of dates for combined fair horse racing meetings.
FISCAL EFFECT
Potential increase in state license fee revenues from increased
wagering opportunities.
COMMENTS
1)Purpose . According to the author, this bill will assist the
struggling horse racing industry by increasing the number of
days that horse races can be conducted. In addition, it allows
some flexibility in the northern racing zone, which will allow
SB 561
Page 2
other tracks to absorb the 100 days of racing currently
allocated to Bay Meadows, which is scheduled to close this
Fall.
2)Background . Historically, since the advent of pari-mutual
wagering in California in 1933, various fairs throughout the
state have been allocated racing dates by CHRB to be held in
conjunction with their fair dates. Currently, CHRB allocates
racing dates to nine fairs throughout California. Granting
additional flexibility to CHRB and the fairs relating to the
allocation of race dates is not a new concept. AB 3090
(Machado; Chapter 741, Statutes of 1996) allows CHRB to
allocate horse racing days for combined fair horse racing
meetings. For example, if the CHRB allocates the Solano County
Fair 10 days of racing and the California Exposition and State
Fair 12 days of racing, those two entities can combine their
allocated dates and operate 22 days of live racing at either
facility.
3)Racing at fairs . Today, eight fairs conduct live racing in
northern California. The northern California fair circuit
includes 87 days of thoroughbred and other breed racing at the
following fairs: San Joaquin County (Stockton); Alameda County
(Pleasanton); Solano County (Vallejo); Sonoma County (Santa
Rosa); San Mateo County (San Mateo); Humboldt County
(Ferndale); California Exposition and State Fair (Sacramento);
and the Big Fresno Fair (Fresno).
4)Related Legislation . AB 2205 (Garrick) allows the California
Horse Racing Board (CHRB) to authorize the Del Mar Fair (the
22nd District Agricultural Association) to use allocations of
racing weeks from the central zone and conduct thoroughbred
racing at Del Mar race track throughout the year, whether or
not those racing days coincide with an annual fair, so long as
the aggregate racing weeks conducted in the southern and
central zones do not exceed the total aggregate racing weeks
allocated. That bill is designed to allow flexibility to shift
the race days from Hollywood Park in the event that race track
closes. That bill is currently pending in the Senate
Appropriations Committee.
In the current session, SB 1635 (Negrete McLeod) eliminates
the ceiling on the total number of out-of-state thoroughbred
races that may be imported in a given year and increases the
number of races that may be imported daily from 23 to 40. That
SB 561
Page 3
bill is pending in this committee.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081