BILL ANALYSIS
  


   
  
  
  

  
  
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|SENATE RULES COMMITTEE            |                   SB 228|  
|Office of Senate Floor Analyses   |                         |  
|1020 N Street, Suite 524          |                         |  
|(916) 445-6614         Fax: (916) |                         |  
|327-4478                          |                         |  
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{u   
                             u}   
                       THIRD READING  
                                
  
Bill No:  SB 228  
Author:   Perata (D)  
Amended:  4/6/99  
Vote:     21  
  
    
{u SENATE GOVERNMENTAL ORG. COMMITTEE u} :  12-0, 4/13/99  
AYES:  Baca, Burton, Chesbro, Dunn, Hughes, Johannessen,
  Karnette, Knight, Lewis, O'Connell, Johnson, Perata  
  
  
{u SUBJECT u} :    Racing associations:  operation of gambling
establishment  
  
{u SOURCE u} :     Ladbroke/Pacific Racing Association  
  
  
{u DIGEST u} :    This bill, with respect to Alameda County,
allows a publicly traded racing association or a qualified
racing association to operate only one gambling
establishment if certain conditions are met.  
  
{u ANALYSIS u} :    Current law authorizes a publicly traded
racing association or a qualified racing association to
operate one gambling establishment located on the same
premises as the association's racetrack.  
  
The author is carrying this bill on behalf of
Ladbroke/Pacific Racing Association.  Ladbroke/PRA
presently conducts horseracing at Golden Gate Fields, and
owns Casino San Pablo.  
  
Casino San Pablo is a $40 million, 60-table card club
located in the City of San Pablo approximately 10 miles
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from Ladbroke's thoroughbred racetrack at Golden Gate
Fields.  The Casino employs approximately 500 persons and
last year generated $2.7 million in license fees to the
City of San Pablo.  
  
Ladbroke's wholly-owned subsidiary, Pacific Racing
Association, (PRA) currently owns Casino San Pablo and
provides most of its non-gaming services such as food and
beverage, security, facility maintenance, and parking.
However, under current law PRA is entitled to operate a
club only if it is located on its racetrack premises,
otherwise they must contract with an independent third
party, in this case SF Casino management, to operate the
gaming tables.  At Casino San Pablo, this arrangement has
not worked well with revenues declining sharply due to
differences in management styles and disputes over how to
improve and market the club.  The sponsor believes that
this bifurcated management lacks accountability, and makes
it difficult for patrons and law enforcement to determine
who is responsible for club operations.  
  
This bill, with respect to Alameda County, allows a
publicly traded racing association or a qualified racing
association to operate only one gambling establishment
under the following conditions:  
  
1.The gambling establishment is located within 10 air miles
  of the association's racetrack.  
  
2.The racing association held an ownership interest in the
  real property of the gambling establishment as of
  December 31, 1998.  
  
3.Controlled gambling was lawfully conducted at the
  gambling establishment on or before December 31, 1998.  
  
{u Prior Legislation  
  
SB 100 (Maddy) Chapter 387, Statutes of 1995 u} .  Among its
provisions, enacted a "Sunset" date of January 1, 1999
pertaining to the operation of one card club on the
premises of a publicly traded corporation licensed to
conduct horseracing and simulcast wagering.  
  
  
  
  

  
  
  
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{u SB 8 (Lockyer) Chapter 867, Statutes of 1997 u} .  Legislation
that repealed the Gaming Registration Act and enacted in
its place the Gambling Control Act of 1997 to provide for
the regulation and control of gambling clubs in California.
Among SB 8's provision was the repeal of a January 1, 1999
"sunset" date relating to the operation of one gambling
club located on the same premises as the entity's racetrack
by a publicly traded racing association or a qualified
racing association. {u   
u}   
{u FISCAL EFFECT u} :    Appropriation:  No   Fiscal Com.:  No
Local:  No  
  
  
{u SUPPORT u} :   (Verified  4/13/99)  
  
Ladbroke/Pacific Racing Association (source)  
  
{u ARGUMENTS IN SUPPORT u} :    The sponsor states that, if
enacted, this bill would not expand gambling or authorize
any new card clubs.  Its only effect would be to permit a
PRA to operate Casino San Pablo, an existing card club that
it already owns, under the above described conditions.  
  
  
TSM:cm  4/27/99   Senate Floor Analyses   
  
               SUPPORT/OPPOSITION:  SEE ABOVE  
  
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