BILL ANALYSIS
AB 2201
Page 1
Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2201 (Coto) - As Amended: April 15, 2010
Policy Committee: Governmental
Organization Vote: 22 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill would authorize the California Horse Racing Board
(CHRB) to permit a California harness racing association to
accept wagers on the full card of races conducted by another
racing association on the date of the Cane Pace.
FISCAL EFFECT
Potential increase in revenue available to fund the CHRB and the
Kenneth L. Maddy Equine Analytical Chemistry Laboratory at the
University of California, Davis due to increased wagering
opportunities. However, the CHRB is not required under current
law to provide the Legislature with the funding formula for the
board, and CHRB considers its funding formula a confidential
matter between the racing industry and the board. Thus, it is
unknown whether an increase in racing revenue would impact these
two state entities or increase the revenue available in the
Horse Racing Fund.
COMMENTS
1)Rationale . This bill will allow a harness racing association
in California to import all of the races conducted on Cane
Pace day, irrespective of the six-race day limit. The author
intends for this bill to give the California harness racing
industry a marketing tool to increase on-track and off-track
attendance on this specific day. As a result of the increased
attendance, the author hopes this bill will provide the
industry with a mechanism to increase track commissions,
AB 2201
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purses, and breeder's awards.
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
2010, the harness racing meets are scheduled from December 26,
2009 to June 19, 2010 and from August 13, 2010 to December 18,
2010.
3)The Cane Pace . The Cane Pace is a harness horse race run
annually since 1955. In 1956 the race joined with the Little
Brown Jug and the Messenger Stakes to become the first leg in
the Triple Crown of Harness Racing for Pacers. Since 1998,
the race is held at the Freehold Raceway in Freehold Borough,
New Jersey. Established in 1853, Freehold Raceway is the
oldest half-mile racetrack in the United States.
4)The Impact of SB 16 XX on CHRB Funding . SB 16 XX (Ashburn;
Chapter 12, Statutes of 2009-10 Second Extraordinary Session)
provides among other things, that beginning on July 1, 2009,
and annually thereafter, $32 million shall be appropriated
from the state's General Fund and paid into the Fair and
Exposition Fund for the financial support of the network of
California fairs.
In addition, this legislation states that all racing
associations and fairs including all breeds of racing shall
participate in the funding of the board in accordance with a
formula devised by the board in consultation with the
industry. The legislation further states that the baseline
funding for the board and equine drug testing program in the
first fiscal year after the enactment of this section shall be
the amount approved in the 2008-09 Budget Act. Any changes to
that funding level need to be approved by the Legislature.
Because SB 16 XX states that CHRB develop a funding formula to
maintain its baseline funding, but does not require CHRB
provide that formula to the Legislature, it is difficult to
determine whether bills that may increase or decrease wagering
pool or change the takeout will have an impact on the funding
for either the CHRB or the Maddy Laboratory.
5)Related Legislation . AB 3074 (Governmental Organization
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Committee; Chapter 510, Statutes of 2008) allows a harness
racing association in California to import all of the races
conducted on Kentucky Futurity day, irrespective of the
six-race day limit in law and increases, 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.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081