SENATE RULES COMMITTEE Office of Senate Floor Analyses 1020 N Street, Suite 524 (916) 651-1520 Fax: (916) 327-4478 AB 280 CONSENT Bill No: Author: Amended: Vote: AB 280 Silva (R) 3/14/11 in Assembly 21 SENATE GOVERNMENTAL ORGANIZATION COMM: 13-0, 06/28/11 AYES: Wright, Anderson, Berryhill, Calderon, Cannella, Corbett, De León, Evans, Hernandez, Padilla, Strickland, Wyland, Yee ASSEMBLY FLOOR: 78-0, 05/19/11 (Consent) - See last page for vote SUBJECT: Horse racing: California-bred horses and parimutuel tickets SOURCE: Los Alamitos Race Course DIGEST: This bill 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 bill: (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 two-year-old and three-year-old races regardless of sex and gait, including the exception requiring a minimum base purse of 75 percent 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), and (3) makes a technical, non-substantive change to a provision relating to altering or counterfeiting, or attempting to alter or counterfeit, any parimutuel ticket. CONTINUED AB 280 Page 2 ANALYSIS: 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. Existing law requires that CSSP races be scheduled for 2-year-old and 3year-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 3year-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 percent of the original base purse and, if elimination heats are raced, the base purse shall be determined by the CSSSC. Existing law prohibits any person from altering or counterfeiting, or attempting to alter or counterfeit, any parimutuel ticket. This bill 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 bill: 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 CSSSP. 2. Deletes the requirement that base purses for each set of races be equal for all two-year-old and three-year-old races regardless of sex and gait, including the exception requiring a minimum base purse of 75 percent 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 CSSSC. CONTINUED AB 280 Page 3 3. Makes a technical, non-substantive change to a provision relating to altering or counterfeiting, or attempting to alter or counterfeit, any parimutuel ticket. Prior Legislation AB 1578 (Governmental Organization Committee), Chapter 550, Statutes of 2009, among other things, required 15 percent 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 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 CSSSP. FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No SUPPORT: (Verified 6/29/11) Los Alamitos Race Course (source) California Harness Horsemen’s Association Standard Sires Stakes Program ARGUMENTS IN SUPPORT: Supporters state that the California Legislature created 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. Supporters claim that a change to the current definition of a Cal-bred standardbred is necessary due to the decline in the number of standardbred CONTINUED AB 280 Page 4 sires in California. The decline of the harness racing industry has resulted in fewer stallions standing in California for breeding purposes. Supporters note 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. Supporters state that this bill 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, this bill would make necessary changes to the statutes governing the base purse in order to grant the Sire Stakes Committee more flexibility. ASSEMBLY FLOOR: 78-0, 05/19/11 (Consent) AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Alejo, Gorell PQ:nl 6/29/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****