BILL ANALYSIS
AB 2201
Page 1
ASSEMBLY THIRD READING
AB 2201 (Coto)
As Amended April 15, 2010
Majority vote
GOVERNMENTAL ORGANIZATION 22-0APPROPRIATIONS 17-0
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|Ayes:|Coto, Anderson, |Ayes:|Fuentes, Conway, Ammiano, |
| |Blakeslee, Chesbro, Cook, | |Bradford, |
| |Bradford, Evans, | |Charles Calderon, Coto, |
| |Galgiani, Hall, | |Davis, De Leon, Hall, |
| |Hernandez, Hill, | |Harkey, Miller, Nielsen, |
| |Jeffries, | |Norby, Skinner, Solorio, |
| |Charles Calderon, Ma, | |Torlakson, Torrico |
| |Mendoza, Nestande, V. | | |
| |Manuel Perez, Portantino, | | |
| |Silva, Torres, Torrico, | | |
| |Tran | | |
|-----+--------------------------+-----+---------------------------|
| | | | |
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SUMMARY : Authorizes 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, as specified.
EXISTING LAW :
1)Provides that CHRB regulate the various forms of horse racing
authorized in this state.
2)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, Kentucky
Futurity the Hambletonian, or the North American Cup.
3)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
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horse Racing Challenge.
4)Authorizes the inclusion of wagers authorized pursuant to this
section in the pari-mutuel pools of the out-of-state
association that conducts the races on which the wagers are
placed.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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 :
Purpose of the bill : 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
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.
AB 2201 will give the California harness racing industry a
marketing tool to increase on-track and off-track attendance on
this specific day. This bill will also provide the industry
with a mechanism to increase track commissions, purses, and
breeder's awards.
Background : Harness racing is a form of horse-racing in which
standardbred horses race in a specified gait, either trotting or
a faster gait called pacing. The driver sits in a two-wheeled
cart pulled by the horse. In California, harness racing is held
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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.
California horse racing in decline : California's horse racing
industry is struggling to generate new fans and horse owners.
The industry is also being threatened by the escalating costs of
doing business in California, including, but not limited to,
workers' compensation insurance costs and declining foal crops.
There has been a general decline in the number of people
attending and wagering at live horse racetracks in California
due to a number of factors, including increased competition from
other forms of gaming, unwillingness of customers to travel a
significant distance to racetracks and the availability of
off-track wagering and phone/Internet wagering.
There are large questions that need to be answered in
California's racing industry relating to its future. The
industry is in the process of identifying what the possibilities
are and deciding which ones are realistic and which ones are
unrealistic.
Prior legislation : AB 3074 (Governmental Organization
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 : Eric Johnson / G. O. / (916) 319-2531
FN: 0004218