BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 136
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 136 (Silva) - As Amended:  April 29, 2009 

          Policy Committee:                              Governmental  
          Organization Vote:                            19 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill deletes the limitation regarding the number of harness  
          or quarter horse races that may be imported in a calendar year  
          by a quarter horse or harness racing association. 

           FISCAL EFFECT
           

          Potential increase in revenue available to fund the CHRB and the  
          Kenneth L. Maddy Equine Analytical Laboratory at the University  
          of California, Davis due to increased wagering opportunities. 


           COMMENTS  

           1)Rationale  .  This bill provides clean up to AB 2048 (Silva;  
            Chapter 439, Statutes of 2008).  That bill allowed a harness  
            and Quarter Horse racing association to import an additional  
            two races, from six to eight, on live racing days from  
            out-of-state and out-of-country locations. Under current law,  
            however, there is a limitation on the number of races that can  
            be imported annually, which prohibits harness and quarter  
            horse racing from taking advantage of the additional two races  
            per day allowed in AB 2048. By removing that annual  
            limitation, this bill allows AB 2048 to be fully implemented. 

           2)Harness racing  is a form of horse-racing in which  
            standard-bred horses race in a specified gait, either trotting  
            or a faster gait called pacing. The jockey sits in a  
            two-wheeled cart pulled by the horse. In California, harness  
            racing is held exclusively at Cal Expo in Sacramento.  For  








                                                                  AB 136
                                                                  Page  2

            2008, the harness racing meets were scheduled from December  
            21, 2007 to July 31, 2008 and from September 10, 2008 to  
            December 20, 2008. 

           3)Quarter horse racing  in California is held exclusively at Los  
            Alamitos race track.  Unlike thoroughbreds, which make up most  
            professional racing and often race longer distances, quarter  
            horses are bred to sprint short distances ranging from 220 to  
            870 yards. The Los Alamitos meet lasts virtually all year long  
            with the 2008 meet lasting from December 27, 2007 until  
            December 21, 2008.

           4)Background  . In the late 1990's, California racetracks began  
            importing additional races from out-of-state locations to  
            provide California's horse racing patrons with the opportunity  
            to wager on quality races offered by racetracks throughout the  
            country. Since the introduction of this practice (which,  
            incidentally is authorized in many other states that likewise  
            allow pari-mutuel wagering on horse races), wagering on these  
            out-of-state races has been well received by betting patrons,  
            as evidenced by modest increases in overall wagering activity.  
            This has also helped the industry offset a continued reduction  
            in on-track wagering activity. 

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



           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081