BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1418
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  SB 1418 (Berryhill) - As Amended:  March 26, 2012 

          Policy Committee:                              Governmental 
          Organization Vote:                            17 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill removes the restriction that the California Horse 
          Racing Board (CHRB) may only allocate race dates for combined 
          fair horse racing meetings and for mixed breed meetings between 
          the months of June and October and instead allows those race 
          meetings any time throughout the year.  In addition, this bill 
          allows mixed breed meetings and combined fair meetings to be 
          held at the California State Exposition and State Fair (Cal 
          Expo) race track, with the exception of the month of June, if a 
          standardbred meeting is being held at Cal Expo during that time. 


           FISCAL EFFECT  

          Potential increase in revenue available to fund the CHRB, the 
          oversight of California's network of state fairs, and the 
          Kenneth L. Maddy Equine Analytical Chemistry Laboratory at the 
          University of California, Davis due to increased wagering 
          opportunities. 

           COMMENTS  

           1)Purpose  . 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 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, assert that restricting the dates of such events 
            takes authority away from the CHRB.








                                                                  SB 1418
                                                                  Page  2


           2)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.



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