BILL ANALYSIS �
SB 305
Page 1
Date of Hearing: July 6, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 305 (Calderon) - As Introduced: February 14, 2011
Policy Committee: Governmental
Organization Vote: 17 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill extends the current limit on mini-satellite
horseracing facility licenses from two years to up to five
years.
FISCAL EFFECT
There are no significant costs for the California Horse Racing
Board (CHRB) associated with this legislation.
COMMENTS
1)Rationale . 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 licensing
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.
2)Background . AB 241 (Price; Chapter 594, Statutes of 2007) was
enacted in 2008 to authorize the creation of 15
mini-satellites in each racing zone for a total of 45. The
SB 305
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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).
3)Satellite wagering . Satellite wagering via an off-track
facility has been legal in California since 1985. It 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 not
only would expose and market horse racing to potential
customers, but also would make it more convenient for the
existing patrons to wager more often. Mini-satellite
facilities can be opened in card clubs, sports bars, or other
appropriate entertainment venues.
Essentially, a mini-satellite includes a betting window for
betting on races and televisions that provide live video feeds
of horse races. As noted above, there are only two licensed
facilities in the state, one in a card club and the other in a
sports bar. However, current law states 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.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081