BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 605|
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                                 THIRD READING


          Bill No:  AB 605
          Author:   Portantino (D)
          Amended:  As introduced
          Vote:     27

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  10-0, 7/8/09
          AYES:  Wright, Harman, Benoit, Calderon, Denham, Florez,  
            Negrete McLeod, Padilla, Price, Yee
          NO VOTE RECORDED:  Oropeza, Wiggins, Wyland
           
          SENATE APPROPRIATIONS COMMITTEE  : Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  76-1, 5/21/09 - See last page for vote


           SUBJECT  :    Horse racing:  proposition parimutuel pool  
          wagers

           SOURCE  :     Golden Gate Fields
                      Santa Anita Park


           DIGEST  :    This bill allows thoroughbred horse racing  
          results to be included in proposition parimutuel pool  
          wagers.  

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

          Existing law requires various deductions and distributions  
          to be made from parimutuel pools, as specified.
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                                                                AB 605
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          Existing law defines "conventional parimutuel pool" as the  
          total wagers on any horse or horses in a particular race to  
          win, place, or show.

          Existing law defines "exotic pari-mutuel pool" as the total  
          wagers on the finishing position of two or more horses in a  
          particular race, such as a quinella or exacta wager, or on  
          horses to win two or more races, such as a daily double,  
          pick six wagers, or on other wagers approved by CHRB.

          Existing law defines a "proposition parimutuel pool" as the  
          total wagers under the parimutuel system on propositions  
          approved by CHRB that are based on the results of a live  
          quarter horse or harness horse race or races.

          Existing law permits CHRB, upon the request of the  
          association or fair accepting the wager, and the  
          organization of participating horsemen, to set the  
          percentage deducted from the parimutuel pool for any new  
          wager introduced after January 1, 2004, as specified.

           Comments
          
           According to the author, this bill will allow an  
          association which conducts thoroughbred racing to offer  
          "propositional wagering" on thoroughbred races.  For  
          instance, this simplified form of betting would allow an  
          individual to choose between odd or even bets, "will" or  
          "will not" wagers, head-to-head horse or "match" wagers, on  
          any conventional, exotic or other wager.  Currently, the  
          law authorizes quarter horse and harness racing  
          associations to offer this type of wagering while operating  
          a live race meet in California on the respective breeds,  
          subject to CHRB approval.

          This bill allows all segments of the industry to take  
          advantage of this type of wager, and in the process, create  
          the potential for new revenue for California's horse racing  
          industry as well as new fans for the sport.

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








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           SUPPORT  :   (Verified  8/18/09)

          Golden Gate Fields (co-source)
          Santa Anita Park (co-source)
          Magna Entertainment Corporation


           ARGUMENTS IN SUPPORT  :    Supporters indicate that  
          propositional wagers are useful as a marketing tool to  
          increase public awareness of special events, such as the  
          Kentucky Derby, the Preakness Stakes, the Belmont Stakes  
          and the Breeders' Cup. 


           ASSEMBLY FLOOR  :
          AYES:  Adams, Ammiano, 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, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,  
            Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,  
            Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,  
            Miller, Monning, Nestande, Niello, Nielsen, John A.  
            Perez, V. Manuel Perez, Portantino, Price, Salas, Silva,  
            Skinner, Smyth, Solorio, Audra Strickland, Swanson,  
            Torlakson, Torres, Torrico, Tran, Villines, Bass
          NOES:  Ruskin
          NO VOTE RECORDED:  Nava, Saldana, Yamada


          TSM:mw  8/18/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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