BILL ANALYSIS �
SB 1418
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Date of Hearing: June 20, 2012
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 1418 (Berryhill) - As Amended: March 26, 2012
SENATE VOTE : 35-0
SUBJECT : Horse racing: mixed breed meetings
SUMMARY : Would allow the California Horse Racing Board (CHRB)
to allocate race dates for combined fair horse racing meetings
and/or for mixed breed meetings at any time throughout the year,
as defined. Specifically, this bill :
1) Deletes the current calendar period restriction (only
between June 1 and October 31) during which the California Horse
Racing Board (CHRB) may allocate combined fair horse racing
meetings thus allowing the CHRB greater flexibility in
allocation of racing dates.
2) Deletes the requirement that the mixed breed meetings be
conducted by an entity other than the California Exposition and
State Fair (Cal-Expo) and that the mixed breed meetings
encourage the racing of emerging breeds of horses.
EXISTING LAW :
1) Grants the CHRB the authority to regulate the various forms
of horse racing authorized in this state.
2) Authorizes the CHRB to allocate racing weeks to an applicant
and to specify the racing days, dates, and hours for horse
racing meetings as will be in the public interest and will serve
the purposes of the law.
3) Limits the allocation of dates for mixed breed meetings and
combined fair horse racing meetings to between June 1 and
October 31.
4) Prohibits the allocation of days for a mixed breed meeting
or a combined fair horse racing meeting during the month of June
at Cal-Expo if a standardbred meeting is being conducted at that
facility during that month.
5) Requires that the mixed breed meetings be conducted by an
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entity other than Cal-Expo as specified, and that the meeting
encourage the racing of emerging breeds of horses.
6) Limits a central or southern fair to no more than three
weeks of racing.
7) Defines "racing days" as days on which a licensed racing
association or fair is authorized by the board to conduct horse
racing.
FISCAL EFFECT : Unknown.
COMMENTS :
According to the author's office, the CHRB is currently
authorized to allocate dates and make other decisions it finds
are in the best interest of the racing industry. According to
the author's office, this measure is simply intended to delete
existing restrictions and grant the CHRB greater flexibility in
providing combined fair horse racing meets, provided the
industry comes forth with such a proposal. The California
Authority of Racing Fairs, and proponents, believe that
restricting the dates of such events takes authority away from
the CHRB.
Background : 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 advance deposit wagering.
The declining attendance at live horse racing events has
prompted racetracks to rely on revenues from in-state and
out-of-state satellite wagering and account wagering.
Considering all of this, the CHRB must begin to look at race
date alternatives should a licensed California racetrack decide
to cease live racing operations due to the general declining
economics within the business.
There is an abundance of testimony in the legislative record
regarding the economic condition of the horseracing industry,
and specifically, the direct impact on the allocation of race
dates. 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
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are and deciding which ones are realistic and which ones are
unrealistic.
Historically, since the advent of pari-mutual wagering in
California in 1933, various fairs throughout the state have been
allocated racing dates by CHRB to be held in conjunction with
their fair dates.
The State's fair circuit generally consists of the following
fairs conducting approximately 80 plus days of racing: San
Joaquin County (Stockton), Alameda County (Pleasanton), Sonoma
County (Santa Rosa), Humboldt County (Ferndale), Fresno County
(Fresno), the California State Fair (Sacramento) and the Los
Angeles County Fair (Pomona). In addition to live fair racing
meet at Cal-Expo (Sacramento), a harness (Standard-bred) racing
meet is conducted at various times of the year at the facility.
Following the demolition of Bay Meadows in 2008, which was
adjacent to the San Mateo County Fairgrounds and used by the
fair to run its live horse racing meet, San Mateo's race dates
have been allocated to Golden Gate Fields. The Solano County
Fair no longer conducts live racing as their dates were split
between the Alameda and Sonoma County Fairs for which Solano
receives compensation.
Related legislation : SB 1227 (Negrete McLeod) 2011-12 Session.
Would modify a provision of Horse Racing Law which currently
provides for a 1% deduction from wagers at fair racing meets for
deposit into the Fair and Exposition Fund (F&E Fund) for
specified purposes and instead diverts the distribution of the
1% license fee equally between the fair that conducted the
racing meet (as commissions) and to the horsemen and horsewomen
who participated in the racing meet (as purses). (Pending in
Assembly G.O. Committee Committee)
Prior legislation : SB 561 (Margett) Chapter 380, Statutes of
2008. Among other things, granted greater flexibility to the
CHRB in allocating racing dates in Northern California in
response to the closure of Bay Meadows race track.
AB 2205 (Garrick) Chapter 448, Statutes of 2008. Allowed the
Del Mar Fairgrounds to use allocations of racing weeks from the
central zone and to conduct thoroughbred racing throughout the
year.
AB 3073 (Governmental Organization) Chapter 509, Statutes of
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2008. Among other things, deleted the requirement in existing
law that horse racing days at fairs be during the period in
which general fair activities are conducted.
AB 3090 (Machado) Chapter 741, Statutes of 1996. Authorized the
CHRB to allocate combined fair horseracing meeting between July
1 and October 31, the traditional summer fair racing dates.
REGISTERED SUPPORT / OPPOSITION :
Support
California Authority of Racing Fairs
The Big Fresno Fair
Sonoma County Fair
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531