Bill No: AB 280 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Roderick D. Wright, Chair 2011-2012 Regular Session Staff Analysis AB 280 Author: Silva As Amended: March 14, 2011 Hearing Date: June 28, 2011 Consultant: Art Terzakis SUBJECT Horse Racing DESCRIPTION AB 280 modifies the definition of a California-bred standardbred horse and revises an existing provision of Horse Racing Law pertaining to the base purse in specified racing events. Specifically, this measure: 1. Revises the definition of a California-bred standardbred horse by deleting the requirement that the standardbred foal be conceived in California, in order to qualify for the California Standardbred Sires Stakes Program (CSSSP) 2. Deletes the requirement that base purses for each set of races be equal for all twoyear-old and three-year-old races regardless of sex and gait, including the exception requiring a minimum base purse of 75% of the original base purse if divisions are raced, and instead simply requires that all base purses for each set of races conducted during any given year at any race meeting be determined by the California Standardbred Sires Stakes Committee (CSSSC). 3. Also, makes a technical, non-substantive change to a provision relating to altering or counterfeiting, or attempting to alter or counterfeit, any parimutuel ticket. EXISTING LAW Existing law provides that the California Horse Racing Board (CHRB) is responsible for adopting rules and regulations for the protection of the public and the control of horse racing and parimutuel wagering, as well as enforcing all laws, rules, and regulations dealing with horse racing and parimutuel wagering. Existing law defines a "California-bred standardbred horse" as a standardbred foal conceived in California by a stallion registered with the CSSSP. Additionally, existing law establishes a CSSSP for standardbred horses, including harness horses, bred in this state. (Business & Professions Code Section 19406) AB 280 (Silva) continued Page 2 Existing law requires that CSSP races be scheduled for 2-year-old and 3-year-old trotters and 2-year-old and 3-year-old pacers at the discretion of the CSSSC, except as specified. Existing law requires that base purses for each set of races, as defined, conducted during any given year at any race meeting be determined by the committee and requires that those purses be equal for all 2-year-old and 3-year-old races regardless of sex and gait, except that, if divisions are raced, the base purse for each division shall be no less than 75% of the original base purse and, if elimination heats are raced, the base purse shall be determined by the CSSSC. (Business & Professions Code Section 19619) Existing law prohibits any person from altering or counterfeiting, or attempting to alter or counterfeit, any parimutuel ticket. (Business & Professions Code Section 19666) BACKGROUND Purpose of AB 280: The sponsor of this measure, Los Alamitos Race Course, points out that the California Legislature created the California Standardbred Sires Stakes Committee (CSSSC) in 1977 to “encourage agriculture and the breeding of horses in California.” In short, the CSSSC’s purpose is to provide financial incentives for the breeding and development of standardbred racehorses. In 2010, over $800,000 was distributed in purse awards to owners, trainers, drivers, breeders and sire owners of horses placing first through fifth in all stakes races. The sponsor claims that a change to the current definition of a Cal-bred standardbred is necessary due to the decline in the number of standardbred sires in California. The decline of the harness racing industry has resulted in fewer stallions standing in California for breeding purposes. The sponsor notes that the CSSSP was established before artificial insemination was permitted for breeding standardbred horses in California. Now that artificial insemination is allowed it has had far-reaching effects relative to the ability to breed a stallion to a larger number of mares and the strengthening of the speed and power of the modern standardbred horse. The sponsor states that AB 280 is intended to allow the CSSSP to adjust to economic and industry changes, by permitting a foal which is the product of artificial insemination, to be eligible for the Sire Stakes series races, purses and awards even if the standardbred foal was not conceived in California. Additionally, AB 280 would make necessary changes to the statutes governing the base purse in order to grant the Sire Stakes Committee more flexibility. PRIOR/RELATED LEGISLATION AB 1578 (Governmental Organization Committee) Chapter 550, Statutes of 2009. Among other things, required 15% of the funds remaining after specified deductions from conventional and exotic parimutuel wagering pools resulting from thoroughbred wagers made in California to be used for the payment of bonuses to California-bred horses in maiden allowance races in California. AB 280 (Silva) continued Page 3 AB 2538 (Strickland) Chapter 278, Statutes of 2004. Changed the definition of a California standardbred horse for these purposes to a standardbred foal conceived in California by a stallion registered with the California Standardbred Sire Stakes Program, deleting the requirements in existing law that the mare drop the horse in California after the conception. SB 738 (Karnette) Chapter 24, Statutes of 2003. Defined a "California bred standardbred horse" as a standardbred foal dropped by a mare in California after being conceived in California by a stallion registered with the California Standardbred Sires Stakes Program (CSSSP). SUPPORT: As of June 24, 2011: Los Alamitos Race Course (sponsor) California Harness Horsemen’s Association Standard Sires Stakes Program OPPOSE: None on file as of June 24, 2011. FISCAL COMMITTEE: No. **********