BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 136|
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                                 THIRD READING


          Bill No:  AB 136
          Author:   Silva (R)
          Amended:  6/1/09 in Senate
          Vote:     27 - Urgency

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  9-0, 6/23/09
          AYES:  Wright, Harman, Benoit, Denham, Negrete McLeod,  
            Oropeza, Padilla, Price, Wiggins
          NO VOTE RECORDED:  Calderon, Florez, Wyland, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  72-0, 5/14/09 - See last page for vote


           SUBJECT  :    Horse racing:  cloned horses:  imported harness  
          or quarter 
                        horse races

           SOURCE  :     Los Alamitos Race Course


           DIGEST  :    This bill adds a new section to Horse Racing Law  
          to prohibit the racing of cloned horses or the offspring of  
          cloned horses regardless of whether any breed association  
          has registered the horse.  This bill also deletes the  
          limitation on the total number of out-of-state or  
          out-of-country harness or quarter horse races that may be  
          imported in a calendar year by a harness or quarter horse  
          racing association.

           ANALYSIS  :    
                                                           CONTINUED





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          Existing law:

          1. Provides that the California Horse Racing Board (CHRB)  
             regulate the various forms of horse racing authorized in  
             this state.

          2. Provides CHRB is authorized to permit a harness or  
             quarter horse association conducting a race meeting to  
             accept wagers on the results of up to eight 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.

          3. 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.

          4. 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.

          5. 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.

          6. Recognizes the Jockey Club of New York as the official  
             registering agency for Thoroughbred horses.

           Background
           
          In general, in order for a horse to compete in a horse race  
          in California, the horse must be registered by the  
          respective breed registry (thoroughbreds, quarter horses,  
          or standard breeds (harness racing)), must be owned and  







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          trained by persons whose licenses are in good standing with  
          CHRB, and the horse must meet the conditions of the race.   
          Currently, none of the breed registries for horses allows  
          cloned horses to be registered.  

          On March 9, 2009, the American Quarter Horse Association  
          Board of Directors voted that action on a member proposal  
          to approve the registration of foals produced by cloning  
          will be delayed until the 2010 the American Quarter Horse  
          Association (AQHA) Annual Convention.  In the interim, the  
          board recommended the appointment of a task force to  
          continue to seek information and input from informed  
          sources regarding cloning, and to conduct further study of,  
          among other things, parentage verification issues, the  
          implications of cloning on the registration process,  
          sentiment of the general membership, the impact of cloning  
          with respect to genetic diseases, and to continue the  
          effort to educate the general membership regarding cloning  
          and its potential effect on the breed, the Association and  
          its members.  Rule 227(a) of the AQHA Official Handbook, a  
          rule that became effective in 2004, provides that American  
          Quarter Horses produced by any cloning process are not  
          eligible for registration.

          In addition, AB 2048 (Silva), Chapter 439, Statutes of  
          2008, increased by two (from six to eight) the number of  
          races that a harness and quarter horse racing association  
          could import on live racing days from out-of-state and  
          out-of-country locations.  Under current law, however,  
          there is a limitation on the total 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 is intended to allow the intent of AB  
          2048 to be fully implemented.

          FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  7/6/09)

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







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          Thoroughbred Owners of California

           OPPOSITION  :    (Verified  7/6/09)

          Biotechnology Industry Organization
          California Coalition Against Gambling Expansion
          Geron Corporation
          Vessels Stallion Farm

           ARGUMENTS IN SUPPORT  :    According to Los Alamito Race  
          Course, the sponsor of this bill, "It is important to  
          maintain the ethical integrity of horse racing in  
          California.  Although no cloned horses actually run in  
          California, banning the racing of cloned horses or their  
          offspring will perpetuate the purity of the "sport of  
          kings".  The Pacific Coast Quarter Horse Racing Association  
          argues that this bill is necessary for the following  
          reasons:  (1) parents of a cloned foal cannot be verified.   
          When a foal is born you can not verify if the sire was the  
          actual horse or a cloned offspring.  The industry is  
          defined on being able to determine the parents; (2)  
          protecting the integrity of racing and the betting pools  
          would be impossible because you would not have sufficient  
          information regarding the parents of the racing horse; (3)  
          eggs are harvested from expired mares.  Up to 200 eggs may  
          be used but out of that number only one or two embryos will  
          mature.  There is no way of knowing which mare's egg the  
          embryo came from or the exact genetic material.  This will  
          have a negative impact on the gene pool; (4) the economics  
          of the industry would be greatly affected.  An individual  
          selling a yearling prospect could pull cells, harvest them,  
          and be in direct competition with the individual who  
          purchased the horse.  A stallion owner may clone his  
          stallion and extract semen from the clone and sell it as  
          the original.  There is no way of determining the  
          difference between them which would be very destructive to  
          the economic structure of our industry; and (5) through the  
          natural breeding process our product has improved.  Cloning  
          would be a reverse process by using horses from the past  
          and not moving forward and expanding the gene pool.

           ARGUMENTS IN OPPOSITION  :    Vessels Stallion Farm writes,  
          "the decisions related to the registration of cloned horses  
          should be left up to the breed registries, such as AQHA,  







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          Jockey Club (for Thoroughbreds) and others.  The AQHA  
          currently has a rule in place that does not allow the  
          registry of a cloned horse.  If you cannot register a  
          horse, you cannot race him.  As a member of the Stud Book  
          and Registration Committee with the AQHA, we are currently  
          studying this and should come up with a decision at our  
          next convention in Florida in March 2010.  Currently, it is  
          Mr. Vessels' belief that the rule will not be changed from  
          its current form."

          The Biotechnology Industry Organization (BIO) argues that  
          "this bill is unprecedented, unnecessary and fiscally  
          irresponsible.

          "For over 70 years, the horse racing registration process  
          has primarily been left to private associations.  This  
          would be the first bill, and thus the only statutory  
          language, which specifically prohibits a method of  
          husbandry.  We can see no compelling reason for either the  
          Legislature or the horse racing industry to make such a  
          radical paradigm shift at this time.

          "Currently, none of the three primary registration  
          organizations register cloned horses.  Thus, cloned horses  
          cannot race in thoroughbred, quarter horse or harness  
          racing.  This bill prohibits a practice that is already  
          prohibited.  While BIO certainly disagrees with the  
          positions taken by these organizations we nonetheless  
          respect their autonomy.  We also think that any future  
          developments and changes in breeding practices should be  
          handled by the organizations that were specifically  
          designed to address these questions.  This process has been  
          successful for multiple decades and should be allowed to  
          continue."  
           
           ASSEMBLY FLOOR  : 
          AYES:  Adams, Anderson, Arambula, Beall, Bill Berryhill,  
            Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,  
            Duvall, Emmerson, Evans, Feuer, Fletcher, Fong, Fuller,  
            Furutani, Galgiani, Garrick, Gilmore, Hagman, Hall,  
            Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,  
            Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie  







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            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, John A. Perez, V. Manuel Perez,  
            Portantino, Price, Ruskin, Salas, Silva, Skinner,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines
          NO VOTE RECORDED:  Ammiano, Eng, Fuentes, Gaines, Saldana,  
            Smyth, Yamada, Bass


          TSM:do  7/6/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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