BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2592|
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THIRD READING
Bill No: AB 2592
Author: Chesbro (D) and Levine (D)
Amended: 4/28/14 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 6-3, 6/24/14
AYES: Correa, De Le�n, Hernandez, Lieu, Padilla, Torres
NOES: Berryhill, Cannella, Vidak
NO VOTE RECORDED: Galgiani, Vacancy
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
ASSEMBLY FLOOR : 73-0, 5/23/14 (Consent) - See last page for
vote
SUBJECT : California Horse Racing Board: fair horse racing
calendar: economic analysis
SOURCE : Author
DIGEST : This bill adds a new provision to California Horse
Racing Law that requires the California Horse Racing Board
(CHRB) to complete an economic analysis when it receives a
proposal to make a "substantial change" to the number of days a
fair conducts horse racing or to the weeks in the horse racing
calendar allocated to that fair to conduct a live race meet.
ANALYSIS :
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Existing law:
1. Provides CHRB with the authority to allocate racing weeks to
an applicant pursuant to the provisions of the California
Horse Racing Law and to specify such racing days, dates and
hours for horse racing meetings as will be in the public
interest. Provides that CHRB shall make allocation for
racing weeks, including simultaneous racing between zones, as
it deems appropriate.
2. Limits the allocation of dates for mixed breed meetings and
combined fair horse racing meetings to between June 1 and
October 31. Provides that the maximum number of racing weeks
that may be allocated to a fair shall be four weeks each
year, and requires CHRB to take public testimony and make all
determinations on the allocation of racing dates during a
public hearing. Stipulates that nothing in California Horse
Racing Law shall be deemed to diminish the authority of CHRB
to establish racing dates.
3. 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. Requires that the mixed
breed meetings be conducted by an entity other than Cal-Expo
(the California Exposition and State Fair), as specified, and
that the meeting encourage the racing of emerging breeds of
horses.
This bill:
1. Requires CHRB, when it receives a proposal to make a
substantial change to the number of days a fair conducts
races or to the weeks in the horse racing calendar allocated
to that fair, to conduct an economic analysis of the
proposal's effect on those fairs whose horse racing calendar
would be impacted.
2. Defines "substantial change" to mean any change within the
fair horse racing calendar that changes the allocation of
racing dates to that fair by more than three days from the
prior year's horse racing dates.
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3. Stipulates that the economic analysis must include, but not
be limited to, all of the following: (a) the financial loss
or gain to each fair impacted by the proposed fair horse
racing calendar changes and the effect on admissions,
concessions and sponsorships; (b) jobs created or lost; (c)
availability of seasonal workers; (d) impact on agricultural
education programs; and (e) financial consequences on the
community at large.
4. Requires CHRB to consider all proposed alternative racing
dates based on the economic analysis referenced above before
CHRB votes on the proposal or any alternative option to the
original proposal.
5. Makes technical and code maintenance changes to Section
19530 of California Horse Racing Law.
Comments
The authors note that when CHRB proposes significant changes in
the live fair horse racing schedule there is no independent
economic analysis conducted of those proposals. Thus, CHRB
members must make decisions without clear knowledge of the
potential financial impact to those fairs and their communities.
According to the authors, this bill has been introduced as a
result of a recent experience that they (Assemblymembers Chesbro
and Levine) had with CHRB regarding a proposal to move the
Sonoma and Humboldt fairs' 2015 horse racing schedule one week
later in the racing calendar. The proposed change would have
resulted in the final week of the fair overlapping with the
first week of the new school year. Both fairs strongly believed
that the proposed change would have impacted the profitability
and viability of their respective fairs. The authors state that
CHRB did not have sufficient information available to make an
informed decision because little, if any, data relative to the
fiscal impact of this change on the fairs was provided to CHRB
by its staff.
The authors maintain that this bill ensures that CHRB is fully
aware of the financial implications of any future decisions
relating to fair race date allocations.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
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Local: No
According to the Senate Appropriations Committee, unknown,
potential costs of $96,000 to CHRB if two economic analyses are
required annually (General Fund).
CHRB estimates costs of $48,000 to contract out for the
performance of one economic impact analysis. If two analyses
were conducted each year, costs will be $96,000. CHRB has
indicated there could be up to seven analyses required each year
resulting in costs of $336,000 as oftentimes the shifting of one
fair's racing dates affects one or more other fairs.
SUPPORT : (Verified 8/13/14)
California Thoroughbred Trainers
Sonoma County Fair
OPPOSITION : (Verified 8/13/14)
California Authority of Racing Fairs
Los Alamitos Race Course
Los Angeles County Fair Association
Oak Tree Racing Association
Pacific Coast Quarter Horse Racing Association
ARGUMENTS IN SUPPORT : The Sonoma County Fair states, "AB 2592
will be key element to the longevity and success of California's
horse racing Fairs. The commissioners who serve on the CHRB
have a wealth of knowledge about the horse racing industry, but
may not always have the Fair industry experience to comprehend
the economic impact their decisions have on a single Fair or the
entire Fair family. These economic factors not only affect the
few days or weeks of racing that a Fair offers, but
significantly impact local stakeholders, fairgoers, and the
viability of a Fair organization. By requiring the CHRB to
complete an independent, non-biased economic analysis of a
potential racing date change that will impact one Fair or
multiple Fairs, AB 2592 will provide the CHRB a more thorough
understanding of any changes made based on their decisions."
ARGUMENTS IN OPPOSITION : Opponents claim that the racing
industry is already an over regulated and economically stressed
industry and that CHRB will be compelled to pass along these
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additional costs of a study at a time when the industry can
least afford it. Opponents also contend that this bill is
unnecessary because it has been introduced as a result of an
isolated incident involving certain county fairs and a ruling by
CHRB.
ASSEMBLY FLOOR : 73-0, 5/23/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonta, Bradford, Brown, Buchanan, Ian Calderon,
Campos, Chau, Ch�vez, Chesbro, Conway, Cooley, Dababneh,
Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,
Gray, Grove, Hagman, Hall, Holden, Jones, Jones-Sawyer,
Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor,
Medina, Mullin, Muratsuchi, Nazarian, Olsen, Pan, Patterson,
Perea, John A. P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Bonilla, Harkey, Roger Hern�ndez, Melendez,
Nestande, V. Manuel P�rez, Vacancy
MW:k 8/15/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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