BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1295


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          Date of Hearing:  May 6, 2015


                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION


                                  Adam Gray, Chair


          AB 1295  
          (Gray) - As Introduced February 27, 2015


          SUBJECT:  Horse racing:  out-of-state thoroughbred races:   
          limitation exception


          SUMMARY:  Provides that the limitation of 50 imported races per  
          day does not apply to races imported into the combined central  
          and southern zones when there is live Thoroughbred or fair  
          racing being conducted in those zones but no live thoroughbred  
          or fair racing is being conducted in the northern zone.


          EXISTING LAW:  


          1)  Grants the California Horse Racing Board (CHRB) the  
          authority to regulate the various forms of horse racing  
          authorized in this state.





          2)  Authorizes a thoroughbred racing association or fair to  
          distribute the audiovisual signal and accept wagers on the  
          results of out-of-state Thoroughbred races conducted in the  
          United States during the calendar period the association or fair  








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          is conducting a race meeting, including days on which there is  
          no live racing being conducted by the association or fair,  
          defined.





          3)  Provides that the total number of Thoroughbred races  
          imported by associations or fairs on a statewide basis under  
          these provisions are required to not exceed 50 per day on days  
          when live Thoroughbred or fair racing is being conducted in the  
          state, with the exception of prescribed races, including races  
          imported into the combined central and southern zones when there  
          is no live Thoroughbred or fair racing being conducted in the  
          combined central and southern zones.





          4)  Exempts from that 50-race per day limit races imported that  
          are part of the race card of certain prominent races, including  
          the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the  
          Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes,  
          the Breeders' Cup, the Dubai Cup, or the Haskell Invitational.





          5)  Authorizes Thoroughbred racing associations or fairs to  
          distribute the audiovisual signal and accept wagers on the  
          results of out-of-state and international Thoroughbred races  
          during the calendar period the association or fair is conducting  
          live racing, including days on which there is no live racing  
          being conducted by the association or fair.










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          FISCAL EFFECT:  This bill is keyed non-fiscal by Legislative  
          Counsel.


          COMMENTS:  


           Purpose of the bill  :  Current law limits the number of races  
          that may be imported by a Thoroughbred association or fair to no  
          more than 50 races per day on days when live Thoroughbred or  
          fair racing is being conducted in this state, with specified  
          exceptions.





          This bill is intended to help increase the wagering handle for  
          California's daytime race meets when no live Thoroughbred or  
          fair racing is occurring in northern California.  The goal of  
          this bill is to increase purses, racetrack revenue, and  
          breeders' awards in California.   





          Purses are important to California's racing industry because  
          they provide revenue to horse owners for their racing operations  
          and to breeders through an increase in the value of their  
          breeding stock.  When fewer live races are run and/or imported  
          into California for wagering, less money is generated for these  
          two funds. 











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          The author states this bill will provide live Thoroughbred or  
          fair race meets with a marketing tool to increase on-track and  
          off-track attendance on the aforementioned days.  These extra  
          imported races will give patrons the opportunity to wager on  
          more races to offset the lack of live racing in northern  
          California.  





           Satellite Wagering  :  Satellite wagering via an off-track  
          facility has been legal in California since 1985.  It 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 not  
          only would expose and market horse racing to potential  
          customers, but also would make it more convenient for the  
          existing patrons to wager more often.


           Simulcasting  :  Simulcasting is the process of transmitting the  
          audio and video signal of a live racing performance from one  
          facility to a satellite for re-transmission to other locations  
          or venues where pari-mutuel wagering is permitted.  Simulcasting  
          provides racetracks with the opportunity to increase revenues by  
          exporting their live racing content to as many wagering  
          locations as possible, such as other racetracks, fair satellite  
          facilities and Indian casinos.  Revenues are increased because  
          simulcasting provides racetracks that export their live content  
          with additional customers in multiple locations who would not  
          have otherwise been able to place wagers on the live racing  
          event.


           Racetrack Attendance  :  Over the past 25 years, the industry has  
          witnessed a general decline in the number of people attending  








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          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. 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. 


           Related legislation  :  AB 650 (Perea) of 2015.  Would exempt from  
          the 50-imported race per day limitation, races imported that are  
          part of the race card of the Blue Grass Stakes.  (Pending in  
          Assembly G.O. Committee)


          SB 187 (Hall) of 2015.  Adds the "Wood Memorial" to the group of  
          stake races in Horse Racing Law which are exempt from the  
          50-race per day limit on imported races.  (Senate Floor -  
          Consent calendar)





           Prior legislation  :  AB 2655 (Hall), Chapter 149, Statutes of  
          2014.  Added the "Apple Blossom Handicap" to the group of stake  
          races in Horse Racing Law which are exempt from the 50-race per  
          day limit on imported races.


          AB 2693 (Governmental Organization), Chapter 350, Statutes of  
          2012.  Among other things, added the "Arkansas Derby" to the  
          group of stake races in Horse Racing Law which are exempt from  
          the 50-race per day limit on imported races.


          AB 2520 (Hall), Chapter 347, Statutes of 2012.  Increased the  
          number of races quarter or harness racing associations are  








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          allowed to import for simulcast wagering purposes from 8 to 10  
          per day on live racing days.  


          AB 707 (Garrick), Chapter 84, Statutes of 2011.  Increased from  
          32 to 50, the limitation on the total number of out-of-state  
          thoroughbred races that may be imported per day by a  
          thoroughbred association or fair that is conducting a live race  
          meet with approval by the CHRB.  
          
          SB 899 (Denham), Chapter 279, Statutes of 2010.  Deleted the  
          statewide cap on the number of out-of-country thoroughbred races  
          that a thoroughbred racing association or fair may import,  
          simulcast, and on which wagers may be accepted statewide in any  
          given year.  


          AB 136 (Silva), Chapter 221, Statutes of 2009.  Deleted the  
          limitation on the total number of out-of-state or out-of-country  
          harness or quarter horse races that may be imported in a  
          calendar year by a harness or quarter horse racing association.   



          AB 763 (Chesbro), Chapter 122, Statutes of 2009.   Authorized  
          the Humboldt County Fair to offer satellite wagering on eight  
          out-of-state races during the August days when the fair is  
          offering live racing, if specified conditions are met. 


           AB 3074 (Governmental Organization), Chapter 508, Statutes of  
          2008.   Authorized the CHRB to allow harness racing tracks to  
          accept wagers during the Kentucky Futurity and increased from 23  
          to 32 the total number of thoroughbred races that may be  
          imported statewide for satellite wagering by associations or  
          fairs. 


          SB 379 (Denham), Chapter 443, Statutes of 2007.   Added the  








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          "Dubai World Cup" to a specified day of races that would be  
          exempted from the 23-race day limit on imported races for  
          satellite wagering. 


          AB 765 (Evans), Chapter 613, Statutes of 2007.   Among other  
          things, reauthorized horse racing's Advance Deposit Wagering  
          law, which was due to "sunset" on January 1, 2008.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file




          Opposition




          None on file


          Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531















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