BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2520
                                                                  Page  1

          Date of Hearing:   May 2, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2520 (Hall) - As Introduced:  February 24, 2012 

          Policy Committee:                              Governmental 
          Organization Vote:                            15 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill increases, from eight to 10, the amount of races a 
          harness and quarter horse racing association may import 
          (out-of-state or out-of-country) on live racing days.

           FISCAL EFFECT  

          Potential minor 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  

           1)Purpose  . Current law restricts the number of quarter horse 
            and/or harness races that can be imported via satellite to 
            eight races per day by the respective racing association.  By 
            allowing each breed to import an additional two races per day 
            it will enable each racing association to import a full card 
            of races from an out-of-state location

            The author hopes this measure will give California's quarter 
            horse and harness racing industry a marketing tool to increase 
            on-track and off-track attendance and wagering handle.  If 
            this increase results in additional wagering, this bill could 
            provide those breeds with a mechanism to increase track 
            commissions, 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 








                                                                  AB 2520
                                                                  Page  2

            two-wheeled cart pulled by the horse. In California, harness 
            racing is held exclusively at Cal Expo in Sacramento.  For 
            2011-12, the harness racing meets are scheduled from December 
            26, 2011 to June 30, 2012. 

           3)Quarter horse racing  in California is held exclusively at Los 
            Alamitos race track.  Unlike thoroughbreds, which make up most 
            professional racing and often race longer distances, quarter 
            horses are bred to sprint short distances ranging from 220 to 
            870 yards. The Los Alamitos meet lasts virtually all year long 
            with the 2011-12 meet lasting from December 30, 2011 until 
            December 23, 2012.

           4)Background  . In the late 1990's, California racetracks began 
            importing additional races from out-of-state 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 betting patrons, 
            as evidenced by modest increases in overall wagering activity. 
            This has also helped the industry offset a continued reduction 
            in on-track wagering activity. 

           5)Related Legislation  . AB 136 (Silva), Chapter 221, Statutes of 
            2009 deletes the limitation on the total number of 
            out-of-state or out-of-country harness or quarter horse races 
            that may be imported in a calendar year by a harness or 
            quarter horse racing association.  

            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  :    Julie Salley-Gray / APPR. / (916) 
          319-2081