BILL ANALYSIS


   
  
  
  
  
  
  
                                             Bill No:  AB
493  
  
       SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION  
                 Senator Don Perata, Chair  
                 1999-2000 Regular Session  
                       Staff Analysis  
  
  
  
AB 493  Author:  Floyd  
As Amended:  June 24, 1999  
Hearing Date:  July 13, 1999  
Consultant: Steve Hardy  
  
  
                          {u SUBJECT u}   
      Horseracing:  Quarter Horse Racing Associations  
  
                        {u DESCRIPTION  
u}   
1.  AB 493 requires any quarter horse or fair racing
  association conducting barrel racing, show jumping
  racing, or steeplechase racing, to pay to the quarter
  horsemen/women's organization 3% of the purse amounts for
  purposes of representing the horsemen/women conducting
  these races.  
  
2.  Deletes the requirement that a quarter horse
  association pay a specified 8% license fee to the state,
  and instead provides that these funds be deposited with
  an official registering agency to be distributed for the
  purpose of described breeder awards.   
  
3.  Provides that  any association, including a fair,
  conducting quarter horse racing will deduct 1% from
  purses to pay to the horsemen's organization contracting
  with the association with respect to the conduct of
  quarter horse racing meetings, for a specified local,
  regional, or national marketing program.    
  
4.  Provides that funds not needed for this purpose will be
  returned to purses, and the horsemen's organization will
  file a specified report with the California Horse Racing
  Board, and both the Senate and Assembly Governmental
  Organization Committees.  
  
  

  
AB 493 (Floyd) continued
Page 2  
  
  
  
  
5.  The horsemen's organization will have the discretion to
  select which marketing organization will receive these
  monies, and also allows the horsemen's organization to
  choose not to make this contribution if they give prompt
  notice to the respective racing association.   
  
{u   
                 PRIOR/RELATED LEGISLATION  
u}   
{u AB 422 (Floyd) 1998 Session. u}  Contained similar provisions
related to the 8% license fee reduction.  (Vetoed by
Governor)  
  
                        {u EXISTING LAW  
u}   
a)  Allows the California State Fair and Exposition, a
  county fair, or a district agricultural association fair
  to provide a program of mixed breed racing that includes
  thoroughbred racing, harness racing, quarter horse
  racing, Arabian racing, Paint racing, Appaloosa racing,
  steeplechase races, barrel races, and show jumping races
  whenever it conducts a program of parimutuel wagering.    
  
b)  Allows all recognized breeds of horses to compete in
  barrel races, show jumping races and steeplechase races.
  Parimutuel wagering may be conducted on these races at
  any public or private racing facility approved and
  licensed by the California Horse Racing Board (CHRB).  
  
c)  Requires racing associations or fairs to pay specified
  amounts to owner's organizations for administrative
  expenses and services rendered in representing the owners
  of the respective breeds participating in the race
  meeting.  
  
d)  Provides for certain license fees to be paid to the
  state related to racing associations in this state
  authorizing betting systems located outside this state to
  accept wagers on a race or races conducted or
  disseminated outside of California.  
  
e)  Requires that any association conducting thoroughbred
  racing will pay to an owners' organization, a certain
  percentage of the amount deducted for purses, for payment
  to a national marketing program, as specified.    
  
  

  
AB 493 (Floyd) continued
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                              {u   
                         BACKGROUND  
u}   
According to the Pacific Coast Quarter Horse Racing
Association (PCQHRA), the purpose of this measure is to
promote and stimulate the production of non-breed specific
horse racing in California in order to broaden and extend
the use of California race horses and develop a new market
for the racing industry.  PCQHRA notes that barrel, show
jumping, and steeplechase racing have been eligible for
parimutuel wagering at all racing venues since 1990.
However, to date, no racing association has offered these
races to the betting public.  Instead, PCQHRA contends the
racing associations and fairs have continued to promote
traditional or flat racing of all breeds of horses, even
adding mule races to mixed meets held at fairs.  
  
  
PCQHRA claims that the 1% amount in this measure obligated
to the National Thoroughbred Racing Association for a
national marketing program,  is equivalent to the 1.75%
deduction currently taken from purses for thoroughbreds
participating in the same program  
  
The author maintains that the current national
organizations involved in representing these types of
breeds are not organized to promote wagering in California
on these races.  AB 493 seeks to remedy the situation by
authorizing the quarter horse racing owner's organization
to represent these owners.  The author believes that every
effort must be made to attempt to stimulate interest in all
types of horse racing to attract new fans to a sport that
continues to experience stagnant market growth.    
  
  
  
{u SUPPORT: u}  Pacific Coast Quarter Horse Racing Association  
  
{u OPPOSE: u}     None registered as of 7/9/99  
  
{u FISCAL COMMITTEE: u}  Senate Appropriations  
  
  
  
                         **********  
  
  
  

  
AB 493 (Floyd) continued
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SMH:bjw