BILL ANALYSIS �
SB 305
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Date of Hearing: June 22, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 305 (Calderon) - As Introduced: February 14, 2011
SENATE VOTE : 40-0
SUBJECT : Satellite wagering: mini-satellite facilities.
SUMMARY : Modifies a provision of Horse Racing Law that
currently requires the California Horse Racing Board (CHRB) to
license mini-satellite facilities for two years and instead
directs the CHRB to license such facilities for up to five
years. Specifically, this bill :
1) Requires the CHRB to license mini-satellite facilities for up
to five years.
2) Deletes obsolete language that requires the CHRB to adopt
emergency regulations to implement mini-satellite wagering
facilities on or before April 1, 2008.
EXISTING LAW :
1) Provides for CHRB which regulates the various forms of horse
racing authorized in this state.
2) Authorizes the CHRB to permit licensed racing associations
and fairs to operate satellite-wagering facilities on their
grounds, as specified.
3) Authorizes the CHRB to approve the establishment of 15
mini-satellite wagering sites in each zone (for a total
of 45) and defines "mini-satellite wagering site" to mean a
location where satellite wagering may be conducted, with the
approval of the CHRB, provided that the wagering occurs in an
area that is restricted to those who are 21 years of age or
older.
4) Requires the CHRB to issue a license to a mini-satellite
facility for two years, and then review the operation and the
size of the handle, and determine if it is in the best interest
of horse racing to relicense the facility or, in the
alternative, license another mini-satellite facility that might
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generate a greater handle.
5) Provides that if there are more than 15 applications for
mini-satellite wagering facilities in any zone, the CHRB shall
determine which facilities will generate the largest handle, and
give priority to the approval of those facilities.
6) Specifies that no mini-satellite site may be located within
20 miles of a race track, a satellite wagering facility,
or a tribal casino that has a satellite wagering facility
without the consent of each facility within that 20-mile radius.
FISCAL EFFECT : Unknown.
COMMENTS :
California has allowed off-track betting in satellite wagering
facilities located at fairs and racing associations throughout
the state for well over 25 years. Satellite wagering was
authorized at a time when California racetracks were beginning
to experience declining attendance and handle figures. The
industry believed that making the product easier to access would
expose and market horse racing to potential customers and also
make it far more convenient for existing patrons to wager more
often.
Currently, there are 34 satellite-wagering facilities in
California located at live race tracks, fair grounds and Indian
casinos. In addition, seven state-designated or county fairs
have received statutory authority to locate additional
satellite-wagering facilities off the respective fairgrounds but
within the boundaries of the fair district. To date, only the
Fresno County Fair has exercised this authority by leasing space
in a card-club in downtown Fresno (Fresno Club One).
In 2007, AB 241 (Price) was enacted to authorize the creation of
15 "mini-satellites" in each racing zone for a total of 45. The
stated intent of this legislation was to make the sport of horse
racing even more accessible to potential California bettors and
to increase the handle - the amount wagered on horse races. To
date, only two mini-satellites have been opened and licensed
statewide (one is located at the California Commerce Club in the
City of Commerce, the other is located at the OC Tavern Grill
and Sports Bar in San Clemente).
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Purpose of the bill : According to the author, current law
requires the CHRB to issue a license to a mini-satellite
facility for two years, and then review the operation and the
size of the handle, and determine if it is in the best interest
of horse racing to relicense the facility or, in the
alternative, license another mini-satellite facility that might
generate a greater handle.
According to the author's office, this measure is simply
intended to streamline current law with respect to the licensing
of mini-satellite facilities by requiring the CHRB to issue such
licenses for a period up to five years rather than two years.
The author's office believes that the current two year license
timeframe may act as a disincentive to individuals seeking to
invest in or expand existing mini-satellite facilities.
Prior/Related Legislation : AB 270 (Perea) 2011-12 Session.
Would create an exception to Horse Racing Law by authorizing a
satellite wagering facility, located on a fairground, to elect
not to be subject to the requirements related to a satellite
facility supervisor if the board of directors of the fair, after
a public hearing, deems those requirements to be not
economically feasible. (Pending in Senate G.O Committee)
SB 1439 (Price) of 2010. Would have decreased the exclusion
zone in which a "mini-satellite" horse racing wagering facility
can be situated in proximity to an existing horse racing
satellite wagering facility or live horse racing race track from
a 20 to 15 mile radius. (Failed passage on Senate floor)
AB 2215 (Fuentes), Chapter 255, Statutes of 2010. Among other
things, authorized a mini-satellite wagering facility to enter
into an agreement with an advance deposit wagering (ADW)
provider to accept and facilitate the placement of any wager at
its facility that a California resident could make through that
ADW provider.
AB 246 (Price), Chapter 226, Statutes of 2009. Authorized a
quarter horse association and a harness racing association to
deduct up to 2 percent more from the total amount wagered in the
pari-mutuel pool for any type of wager, and, specified how the
funds shall be distributed to eligible satellite
wagering facilities, owners purses and racetrack commissions
AB 241 (Price), Chapter 594, Statutes of 2007. Authorized all
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fairs to operate a satellite wagering facility off of the fair
grounds. Also, authorized the establishment of up to 45
mini-satellite wagering sites to be operated by private industry
throughout California.
REGISTERED SUPPORT / OPPOSITION :
Support
Commerce Club
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531