BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 721
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          Date of Hearing:   June 12, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 721 (Padilla) - As Amended:  June 9, 2014

          Policy Committee:                              Governmental  
          Organization Vote:                            16-0

          Urgency:     Yes                  State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill makes the following changes to the Horse Racing Law:

          1)Authorizes the Los Angeles County Fair, subject to approval  
            from the California Horse Racing Board (CHRB), to conduct live  
            races at another licensed thoroughbred racing facility in Los  
            Angeles County or the southern zone (which includes Orange  
            County), and allows the fair to contract for the operation and  
            management of those races.

          2)Clarifies that the CHRB may not allocate racing dates to a  
            thoroughbred racing association in the central or southern  
            zones if a fair racing association is conducting racing in  
            either zone on the same dates.

          3)Expands the definition of "propositional parimutuel pool,"  
            which relates to the total propositional wagering (i.e.,  
            wagering on events other than the outcome of the race), to  
            include thoroughbred racing in addition to quarter horse and  
            harness racing.

          4)Makes other technical changes and deletes obsolete references.

           FISCAL EFFECT  

          Minor and absorbable costs to CHRB.

           COMMENTS  

          1)  Purpose.   This bill would allow the Los Angeles County Fair to  
            conduct race meets at the Los Alamitos Race Course in Orange  








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            County.  The fair contends the racing facilities at Fairplex  
            in Pomona are in poor condition, while the expanded and  
            renovated facilities at Los Alamitos provide a more desirable  
            venue for thoroughbred racing and training.  The fair argues  
            holding future races at Los Alamitos will help preserve horse  
            racing jobs and ensure live horse racing remains economically  
            viable in Southern California.

            The author also notes that expanding propositional wagering to  
            include thoroughbred races may help increase public awareness  
            of special events, such as the Breeders' Cup, Kentucky Derby,  
            and the other Triple Crown races.

          2)  Los Angeles County Fair and Los Alamitos.   For more than 70  
            years, Fairplex has been the horse racing facility for the  
            fair.  In April 2014, the fair announced its intention to  
            transfer its 2014 live racing dates, contingent upon CHRB  
            approval, to Los Alamitos.  This bill will allow the CHRB to  
            grant approval to the fair to run an 11-day meet in 2014 from  
            September 5-21 at Los Alamitos.

            Los Alamitos was granted thoroughbred dates in 2014 as part of  
            the racing industry's response to the closure of Hollywood  
            Park.  Other dates previously held by Hollywood Park were  
            awarded to Del Mar and Santa Anita.  The track was previously  
            approved for five weeks of racing - two weeks in July and  
            three weeks in December.  The additional dates transferred  
            from the Los Angeles County Fair would be bring the total to  
            eight weeks of live horse racing at Los Alamitos in 2014.

            In anticipation of the additional racing following the  
            Hollywood Park closure, Los Alamitos expanded its main oval  
            from five furlongs to nearly a mile and is making grandstand  
            renovations for its races in July.  The track is also in the  
            process of adding stalls on the backstretch to accommodate  
            additional horses.  Together with temporary stalls, the  
            facility could host as many as 900 horses during the running  
            of meets.


           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081 












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