BILL ANALYSIS
AB 763
Page 1
ASSEMBLY THIRD READING
AB 763 (Chesbro)
As Introduced February 26, 2009
Majority vote
GOVERNMENTAL ORGANIZATION 19-0APPROPRIATIONS 16-0
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|Ayes:|Price, Anderson, Chesbro, |Ayes:|De Leon, Nielsen, |
| |Cook, Coto, De Leon, | |Ammiano, |
| |Evans, Galgiani, Hall, | |Charles Calderon, Davis, |
| |Hill, Jeffries, Lieu, | |Duvall, Fuentes, Hall, |
| |Mendoza, Nestande, | |Harkey, Miller, |
| |Portantino, Silva, | | John A. Perez, Price, |
| |Torres, Torrico, Tran | |Skinner, Solorio, Audra |
| | | |Strickland, Torlakson |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Allows the Humboldt County Fair (HCF) to import and
accept wagers on up to eight races per day from out-of-state
locations, as specified. In addition, allows a Thoroughbred
association in the southern zone to import and accept wagers on
an additional eight races from out-of-state locations during the
period that HCF is conducting a live race meet, as defined.
Specifically, this bill :
1)Provides that during calendar periods when a thoroughbred
association or fair in the northern zone and the HCF
simultaneously conduct live race meetings, the HCF and a
Thoroughbred association in the southern zone when conducting
a live race meeting may accept wagers on the result of
out-of-state Thoroughbred horse races, if all of the following
conditions are met:
a) Specifies that the HCF conducts at least six live races;
and, the fair and the Thoroughbred association in the
southern zone import not more than eight out-of-state races
on those days during a racing meeting when live races are
being run;
b) Provides the HCF and Thoroughbred association in the
southern zone shall accept wagers on out-of-state
Thoroughbred races commencing before 4:30 p.m., Pacific
AB 763
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Standard Time, without the consent of an association that
is then conducting a live racing meeting in this state;
and,
c) Provides the HCF may contract with the Thoroughbred
association or fair in the southern zone to distribute the
signal statewide on its behalf, as defined.
EXISTING LAW :
1)Provides that the California Horse Racing Board (CHRB)
regulate the various forms of horse racing authorized in this
state.
2)Limits the number of races that may be imported by a
Thoroughbred association or fair to no more than 32 races per
day on days when live Thoroughbred or fair racing is being
conducted in this state, with specified exceptions. Provides
that wagering on these races may occur without the consent of
the horsemen/women participating in the meet, and without
regard to the amount of purses involved with the races.
3)Exempts from that 32-race per day limit races imported that
are part of the race card of certain prominent races,
including the Kentucky Derby, the Kentucky Oaks, the Preakness
Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the
Breeders' Cup, the Travers Stakes, or the Haskell
Invitational.
4)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.
5)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.
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FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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 : The sponsor of this bill, the Humboldt County Fair
Association, a non-profit organization that has provided the
management arm of the annual HCF in Ferndale for 114 years.
Horse racing has been an integral and essential part of the HCF
since its inception in 1896. Due to recent and dramatic changes
in horse racing, however, the fair faces the very real
possibility of losing this important activity.
HCF states, "The new revenues generated from this bill would be
essential to our bottom-line and would provide the basis for
continuing with the great tradition of horse racing at the fair
to be enjoyed by generations to come." HCF further states that
revenues derived from this bill will not only support the fair
but the breeding, owning and racing of California horses and
mules while supplementing the existing breeding incentive
programs. This bill will allow the HCF to import up to eight
out-of-state races, which is similar to the right held by
harness or quarter horse associations while operating a CHRB
sanctioned live racing meet.
After a record-breaking meet in 2007, when total handle exceeded
$4.2 million, HCF finished 2008 with total handle of $3.6
million. One reason for the decline was a decrease in the
number of horse racing at the fair meet. HCF had a difficult
time drawing horses from northern California's limited supply
because they operate at the same time as another fair. There
were 442 runners for the 2008 meet, compared to 504 in 2007.
This trend is common for all live horse racing meets in
California.
This bill will give the HCF a marketing tool to increase
on-track and off-track attendance because quality races from an
out-of-state location would be able to be offered to their
wagering patrons to offset less live races and overall wagering
opportunities. Bottom line, this bill will give the HCF a
mechanism to increase track commissions and purses while
operating a live race meet.
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Background. In the late 1990's, California racetracks began
importing additional races from out-of-state and out-of-country
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 the betting
patron, even though overall wagering in California is in
decline. In general, allowing wagering on races from
out-of-state locations has helped the industry offset a
continued reduction in on-track wagering activity and a
diminishing horse population.
Under current law, a Thoroughbred racing associations or fair is
allowed to distribute the audiovisual signal and accept wagers
on the results of out-of-state (up to 32 per day) and
international Thoroughbred races (unlimited) during the calendar
period the association or fair is conducting live racing,
including days on which there is no live racing being conducted
by the association or fair. Current law also allows harness or
quarter horse associations conducting a live race meet to accept
wagers (up to eight per day) on the results of out-of-state and
out-of-country races, if specified conditions are met.
The HCF though has not been able to import additional races as
other racing associations in California have been allowed to do
and in essence have lost out on the opportunity to generate
additional revenues for the fair and horsemen.
Live fair racing in northern California. 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 seven fairs in
northern California. The northern California fair circuit
includes 69 days of Thoroughbred and other breed racing on the
grounds of the following fairs: San Joaquin County (Stockton);
Alameda County (Pleasanton); Solano County (Vallejo); Sonoma
County (Santa Rosa); Humboldt County (Ferndale); California
Exposition and State Fair (Sacramento); and, the Big Fresno Fair
(Fresno).
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Related legislation. AB 136 (Silva) of 2009, deletes that
limitation regarding the total number
of harness or quarter horse races imported in a calendar year
relating to out-of-state and out-of-country race importation.
Prior legislation. AB 3074 (Governmental Organization
Committee), Chapter 510, Statutes of 2008, increased from 23 to
32, the limitation on the total number of out-of-state
Thoroughbred races that may be imported per day by a
Thoroughbred association or fair that is conducting a live race
meet.
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 : Eric Johnson / G. O. / (916) 319-2531
FN: 0000430