BILL ANALYSIS �
SB 305
Page 1
SENATE THIRD READING
SB 305 (Ron Calderon)
As Introduced February 14, 2011
Majority vote
SENATE VOTE :40-0
GOVERNMENTAL ORGANIZATION 17-0APPROPRIATIONS 16-0
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|Ayes:|Hall, Nestande, Atkins, |Ayes:|Fuentes, Harkey, |
| |Block, Blumenfield, | |Blumenfield, Bradford, |
| |Chesbro, Cook, Galgiani, | |Charles Calderon, Campos, |
| |Garrick, Gatto, Hill, | |Donnelly, Gatto, Hall, |
| |Jeffries, Ma, Perea, V. | |Hill, Lara, Mitchell, |
| |Manuel P�rez, Silva, | |Nielsen, Norby, Solorio, |
| |Torres | |Wagner |
| | | | |
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SUMMARY : Modifies a provision of Horse Racing Law that
currently requires the California Horse Racing Board (CHRB) to
license minisatellite 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 minisatellite facilities for up
to five years.
2)Deletes obsolete language that requires the CHRB to adopt
emergency regulations to implement minisatellite 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
minisatellite wagering sites in each zone (for a total of 45)
and defines "minisatellite wagering site" to mean a location
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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 minisatellite
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 minisatellite facility that might
generate a greater handle.
5)Provides that if there are more than 15 applications for
minisatellite 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 minisatellite 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 : According to the Assembly Appropriations
Committee, there are no significant costs for the CHRB
associated with this legislation.
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, fairgrounds 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).
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In 2007, AB 241 (Price), Chapter 594, Statutes of 2007, was
enacted to authorize the creation of 15 "minisatellites" 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
minisatellites 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).
Purpose of the bill : According to the author, current law
requires the CHRB to issue a license to a minisatellite 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 minisatellite facility that might generate a greater
handle.
According to the author, this measure is simply intended to
streamline current law with respect to the licensing of
minisatellite facilities by requiring the CHRB to issue such
licenses for a period up to five years rather than two years.
The author believes that the current two year license timeframe
may act as a disincentive to individuals seeking to invest in or
expand existing minisatellite facilities.
Prior/related legislation : AB 270 (Perea) of 2011. 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 on the Senate Floor)
SB 1439 (Price) of 2010. Would have decreased the exclusion
zone in which a "minisatellite" 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 minisatellite wagering facility to enter
into an agreement with an advance deposit wagering (ADW)
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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% 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
fairs to operate a satellite wagering facility off of the fair
grounds. Also, authorized the establishment of up to 45
minisatellite wagering sites to be operated by private industry
throughout California.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0001698