BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 136
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          Date of Hearing:   April 1, 2009

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                               Curren Price, Chairman
                     AB 136 (Silva) - As Amended:  March 23, 2009
           
          SUBJECT  :   Horse racing: harness racing: imported harness or  
          quarter horse races.

           SUMMARY  :  Allows the California Horse Racing Board (CHRB) to  
          allocate 52 weeks of harness racing in the northern zone, at one  
          or more racetracks or fairs.  In addition, the bill deletes the  
          limitation regarding the total number of harness or quarter  
          horse races, which may be imported in a calendar year by a  
          Quarter Horse or harness racing association.  Specifically,  this  
          bill  :  

          1)Authorizes the board to allocate 52 weeks of harness racing in  
            the northern zone, at one or more racetracks or fairs.  The  
            bill further provides that any provision of the Horse Racing  
            Law that pertains to harness racing at the California  
            Exposition and State Fair in Sacramento shall also apply to  
            harness racing, which is conducted at any other racing venue  
            in the northern zone.

          2)Deletes that limitation regarding the total number of harness  
            or quarter horse races imported in a calendar year. 

           EXISTING LAW  :

          1)Provides that CHRB regulate the various forms of horse racing  
            authorized in this state.

          2)Provides that the CHRB shall have the authority to allocate  
            racing weeks and provides that the maximum number of racing  
            weeks that may be allocated for harness racing, other than at  
            fairs, in the northern zone is 25 weeks per year.

          3)Provides that the maximum number of racing weeks that may be  
            allocated to a fair shall be 4 weeks each year, except as  
            provided, including that the board may allocate additional  
            weeks of harness racing to the California Exposition and State  
            Fair in Sacramento or its lessee, to be raced at that fair.

          4)Provides CHRB is authorized to permit a harness or quarter  








                                                                  AB 136
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            horse association conducting a race meeting to accept wagers  
            on the results of up to eight (8) out-of-state or  
            out-of-country harness or quarter horse races per day, if  
            specified conditions are met.  If only one breed is being  
            raced on a given day, the racing association conducting live  
            racing may import those races that would otherwise be  
            simulcast by the association that is not racing, as specified.

          5)Provides the total number of harness or quarter horse races  
            imported in a calendar year may not exceed the number of night  
            races imported in 1998 after 5:30 p.m.

          6)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. 



           FISCAL EFFECT :   Unknown

           COMMENTS  :   

          The author is carrying this bill to ensure that harness racing  
          continues to be run in California for years and generations to  
          come while taking into consideration the current proposal for an  
          NBA arena at the California Exposition and State Fair (Cal Expo)  
          in Sacramento which would eliminate the racetrack where racing  
          is conducted.  Cal Expo has been the site of harness racing  
          meetings since the early 1970s.  Currently, Cal Expo is the sole  
          operator of live harness racing in California.  

          If harness racing were to cease operations in the state more  
          than 500 horsemen - including about 100 who live on track -  
          would find themselves without a place to work.  The author notes  
          that it is vital to the interests of the harness racing industry  
          to continue racing in California on a year-round basis.  The  
          author believes this bill will ensure that harness horsemen will  
          have less uncertainty in the years to come relating to where  
          they might race and who might operate the meet.  The author  
          states this bill is essential to the long-term stability of the  
          harness racing industry in California.  









                                                                  AB 136
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          The sponsor of this bill, the California Harness Horsemen's  
          Association, notes this bill is critical to the harness horsemen  
          and horsewomen and their families.  This bill will alleviate  
          uncertainty in the racing schedule, save jobs, and make it less  
          likely that these hard working people will be faced with the  
          unknown relating to where they will race or be forced to take an  
          extended vacation because there are gaps in the annual racing  
          schedule.  It has been reported that officials from the  
          California Harness Horsemen's Association have had talks with  
          representatives from The Big Fresno Fair and the San Joaquin  
          County Fair about the potential of operating a race meet at  
          either one or both of those facilities at some time in the  
          racing calendar.

          A second provision of this bill deals with language which  
          inadvertently should have been deleted in AB 2048 (Silva) of  
          2008, Chapter 439, Statutes of 2008.  That bill allowed a  
          harness and Quarter Horse racing association to import an  
          additional two races (6 to 8) on live racing days from  
          out-of-state and out-of-country locations.  This bill will  
          codify existing law pertaining to the current limitation  
          regarding the total number of harness or quarter horse races  
          imported in a calendar year.  By deleting this provision, the  
          full intent of AB 2048 (Silva) will be realized.
           
          Prior legislation  .

          AB 2048 (Silva) of 2008, Chapter 439, Statutes of 2008, allowed  
          a harness and Quarter Horse racing association to import not  
          more than eight races on live racing days. 

          AB 834 (Jones), Chapter 119, Statutes of 2005.  Authorized the  
          CHRB to allocate additional weeks of harness racing to the  
          California Exposition and State Fair (Cal Expo) to be raced at  
          and operated by the fair.  Permits harness racing results to be  
          included in proposition pari-mutuel pool wagers.

          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.

          SB 2035 (Karnette), Chapter 268, Statutes of 2002, allows a  








                                                                  AB 136
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          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.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Harness Horsemen
          Los Alamitos Race Course (sponsor)
          Pacific Coast Quarter Horse Racing Association

           Opposition 
           
          California Coalition Against Gambling Expansion
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531