BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 763|
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THIRD READING
Bill No: AB 763
Author: Chesbro (D), et al
Amended: 6/2/09 in Senate
Vote: 27 - Urgency
SENATE GOVERNMENTAL ORG. COMMITTEE : 9-0, 6/9/09
AYES: Wright, Harman, Benoit, Calderon, Denham, Negrete
McLeod, Padilla, Wiggins, Yee
NO VOTE RECORDED: Florez, Oropeza, Wyland, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 78-0, 5/11/09 - See last page for vote
SUBJECT : Horse racing: Humboldt County Fair
SOURCE : Humboldt County Fair Association
DIGEST : This bill allows the Humboldt County Fair to
import and accept wagers on up to eight races per day from
out-of-state locations and allows the Del Mar Thoroughbred
Club to import and accept wagers on an additional eight
races per day from out-of-state locations during the period
that the Humboldt County Fair is conducting a live race
meet.
ANALYSIS : Existing law provides that the California
Horse Racing Board (CHRB) regulate the various forms of
horse racing authorized in this state.
CONTINUED
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Existing law 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.
Existing law 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.
Existing law authorizes a thoroughbred racing association
or fair to import out-of-country races during the calendar
period the association or fair is conducting a race
meeting. Limits the total number of out-of-country
thoroughbred races on which wagers are allowed to be
accepted statewide in any given year to no more than the
number of out-of-country races that were imported and on
which wagers were accepted in 1998. Provides that wagering
on these races may occur without the consent of the
horsemen/horsewomen participating in the meet.
Existing law 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.
Existing law 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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This bill:
1. Provides that, in addition to the authorization to
accept wagers on out-of-state and out-of-country races
authorized by current law, during calendar periods when
a thoroughbred association or fair in the northern zone
and the Humboldt County Fair (HCF) simultaneously
conduct live race meetings, HCF and a thoroughbred
association in the southern zone when conducting a live
race meeting and only on days in which live races are
being run, may accept wagers on the results of not more
than eight out-of-state thoroughbred horse races, if all
of the following conditions are met:
A. HCF conducts at least six live races; and,
B. HCF and the thoroughbred association in the
southern zone accept wagers only on out-of-state
thoroughbred races that commence before 4:30 p.m.,
Pacific Standard Time.
2. Allows HCF to contract with the thoroughbred association
or fair in the southern zone to distribute the signal
statewide on its behalf.
3. Becomes effective immediately upon enactment in order to
alleviate economic uncertainty for HCF, preserve jobs,
ensure that live horse racing continues in Humboldt
County each year, and for this act to apply to the 2009
racing season.
Background
The bill's sponsor, the Humboldt County Fair Association,
is a nonprofit organization that has served as the
management arm of the annual HCF in Ferndale for 114 years.
Horse racing has been an integral and essential part of
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
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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 allows 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 races 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 gives 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, thereby providing a mechanism to
increase track commissions and purses while operating a
live race meet.
NOTE: Please refer to the Senate Governmental
Organization Committee analysis for additional
background information.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/22/09)
Humboldt County Fair Association (source)
California Authority of Racing Fairs
Del Mar Thoroughbred Club
Humboldt County Board of Supervisors
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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, Nava, Nestande, Niello, Nielsen, John A.
Perez, V. Manuel Perez, Portantino, Price, Salas,
Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Villines, Bass
NO VOTE RECORDED: Ruskin, Yamada
TSM:mw 6/22/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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