Existing law requires that a recreational vehicle dealer being issued a temporary branch license for selling new recreational vehicles at a show submit certain documentation to the Department of Motor Vehicles, including, for example, a manufacturers written authorization for the sale specifying the dates and location of the show. Existing law imposes certain requirements if 9 or fewer dealers are participating in the show, including that the show is 50 miles or more from the dealers established place of business, and that promotional materials include the name and established place of business of each participating dealer. Existing law excepts from those requirements, a recreational vehicle dealer participating in an annual show sponsored by a national trade association of recreational vehicle manufacturers, if the show is located in a county with a population of 6,000,000 or more persons.

This bill would recast those provisions to except a recreational vehicle dealer being issued a temporary branch license from those requirements if the show is located in a county with a population of 9,000,000 or more persons, or at a location within 30 miles from the prior approved location of the show, and at least 10 manufacturers are participating in the show.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law requires that a recreational vehicle dealer being issued a temporary branch license for selling new recreational vehicles at a show submit certain documentation to the Department of Motor Vehicles, including, for example, a manufacturers written authorization for the sale specifying the dates and location of the show. Existing law imposes certain requirements if 9 or fewer dealers are participating in the show, including that the show is 50 miles or more from the dealers established place of business, and that promotional materials include the name and established place of business of each participating dealer. Existing law excepts from those requirements, a recreational vehicle dealer participating in an annual show sponsored by a national trade association of recreational vehicle manufacturers, if the show is located in a county with a population of 6,000,000 or more persons.

This bill would recast those provisions to except a recreational vehicle dealer being issued a temporary branch license from those requirements if the show is located in a county with a population of 9,000,000 or more persons, or at a location within 30 miles from the prior approved location of the show, and at least 10 manufacturers are participating in the show.

This bill would declare that it is to take effect immediately as an urgency statute.

The Horse Racing Law 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 is conducting a race meeting, including days on which there is no live racing being conducted by the association or fair, without the consent of the organization that represents horsemen and horsewomen participating in the race meeting and without regard to the amount of purses. Under that law, 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 that are part of the race card of the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million, the Breeders Cup, the Dubai World Cup, the Arkansas Derby, the Apple Blossom Handicap, or the Haskell Invitational.

This bill would exempt from the 50 imported race per day limitation, races imported that are part of the race card of the Florida Derby.

CONCURRENCE IN SENATE AMENDMENTS

CSA2 Bill Id:AB 2330

Author:(Bigelow)

As Amended Ver:August 8, 2018

2/3 vote. Urgency

(vote not relevant)

(TRANS.)

Original Committee Reference: TRANS.

SUMMARY: Extends the exemption for a recreational vehicle (RV) temporary branch license to include locations within 30 miles of a previous annual show sponsored by a national trade association of RVs and lowers the limit of dealers participating in that show from 25 manufacturers to 10 manufacturers.

The Senate amendments delete the assembly version of the bill and instead:

1. Extend the exemption for a recreational vehicle (RV) temporary branch license to include locations within 30 miles of a previous annual show sponsored by a national trade association of RVs.
2. Lower the limit of dealers participating in that show from 25 manufacturers to 10 manufacturers.
3. Add an urgency clause.

EXISTING LAW:

1. Requires a RV dealer that wishes to sell new RVs at a trade show to apply for a temporary branch license issued by the Department of Motor Vehicles (DMV) and submit certain documentation including but not limited to the dates and location of the RV trade show.
2. For RV trade shows that include nine or fewer dealers, imposes certain requirements including the show is 50 miles or more from the dealer's established place of business and that promotional materials include the name and established place of business for each participating dealer.
3. Provides exemptions from the abovementioned requirements for a RV dealer that participates in an annual show sponsored by a national trade association, as specified, if the show is located in a county with a population of six million or more persons.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state cost.

COMMENTS:

Purpose: According to the author, "AB 2330 modernizes a Vehicle Code section relating to trade shows of national RV manufacturers and adds flexibility in order to relocate a long-standing large RV trade show. Relocation of the show will enhance the ability of manufacturers and dealers to offer products to consumers, with attendant tax benefits to local governments."

Background: SB 325 (Russell), Chapter 923, Statutes of 1995, created a temporary branch license for RV shows. At the time, the California Recreational Vehicle Association was concerned about pop up RV shows that were undermining established RV businesses and were harming consumers by limiting their ability to find the dealer who sold them the vehicle in the case that the vehicle needed repairs or was a lemon. SB 325 only allows participation in a show if the location of the show was 50 miles or less from the dealer's established place of business and nine or fewer dealers were participating in the show. A show with 10 or more dealers can only occur if all 10 dealer's locations or branches are 50 miles away from their established show.

An unintended consequence of the passage of SB 325 resulted in restricting an annual trade show from the RV industry at the Pomona Fairplex in Los Angeles County. As a result, SB 1057 (Mountjoy), Chapter 339, Statutes of 1997, created an exemption for the temporary branch license if the dealers were participating in an annual show sponsored by a national trade association and the show was located in a county with a population of six million individuals (at the time and still only applies to Los Angeles County), and has at least 25 manufacturers participating in the show.

The California RV Show is now in its 66th year and is the largest RV trade show on the west coast. This year's show will feature 1,300 RV models. The RV Industry Association, which puts on the national trade show, believes that the planned configuration changes at the Pomona Fairplex property make the site unsuitable for future shows and that the show can grow and more effectively serve consumers in a new, larger facility. They believe they have found that facility at the Auto Club Speedway, which is 21 miles away from the Pomona Fairplex and is located in San Bernardino County. The amendments being made to this bill would allow the show to relocate to San Bernardino, and once that occurs, allow them to move the show back to Los Angeles County or any location within 30 miles of the Auto Club Speedway.

This bill has an urgency clause, stating that is necessary to take immediate effect in order to avoid interruption to commercial sale of recreational vehicles and the resulting effects on the economy.

Analysis Prepared by: David Sforza / TRANS. / (916) 319-2093 FN: 0005130

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2330

Author:(Bigelow)

As Amended Ver:August 8, 2018

2/3 vote. Urgency

Original Committee Reference: TRANS.

SUMMARY: Extends the exemption for a recreational vehicle (RV) temporary branch license to include locations within 30 miles of a previous annual show sponsored by a national trade association of RVs and lowers the limit of dealers participating in that show from 25 manufacturers to 10 manufacturers.

The Senate amendments delete the assembly version of the bill and instead:

1. Extend the exemption for a recreational vehicle (RV) temporary branch license to include locations within 30 miles of a previous annual show sponsored by a national trade association of RVs.
2. Lower the limit of dealers participating in that show from 25 manufacturers to 10 manufacturers.
3. Add an urgency clause.

EXISTING LAW:

1. Requires a RV dealer that wishes to sell new RVs at a trade show to apply for a temporary branch license issued by the Department of Motor Vehicles (DMV) and submit certain documentation including but not limited to the dates and location of the RV trade show.
2. For RV trade shows that include nine or fewer dealers, imposes certain requirements including the show is 50 miles or more from the dealer's established place of business and that promotional materials include the name and established place of business for each participating dealer.
3. Provides exemptions from the abovementioned requirements for a RV dealer that participates in an annual show sponsored by a national trade association, as specified, if the show is located in a county with a population of six million or more persons.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state cost.

COMMENTS:

Purpose: According to the author, "AB 2330 modernizes a Vehicle Code section relating to trade shows of national RV manufacturers and adds flexibility in order to relocate a long-standing large RV trade show. Relocation of the show will enhance the ability of manufacturers and dealers to offer products to consumers, with attendant tax benefits to local governments."

Background: SB 325 (Russell), Chapter 923, Statutes of 1995, created a temporary branch license for RV shows. At the time, the California Recreational Vehicle Association was concerned about pop up RV shows that were undermining established RV businesses and were harming consumers by limiting their ability to find the dealer who sold them the vehicle in the case that the vehicle needed repairs or was a lemon. SB 325 only allows participation in a show if the location of the show was 50 miles or less from the dealer's established place of business and nine or fewer dealers were participating in the show. A show with 10 or more dealers can only occur if all 10 dealer's locations or branches are 50 miles away from their established show.

An unintended consequence of the passage of SB 325 resulted in restricting an annual trade show from the RV industry at the Pomona Fairplex in Los Angeles County. As a result, SB 1057 (Mountjoy), Chapter 339, Statutes of 1997, created an exemption for the temporary branch license if the dealers were participating in an annual show sponsored by a national trade association and the show was located in a county with a population of 6 million individuals (at the time and still only applies to Los Angeles County), and has at least 25 manufacturers participating in the show.

The California RV Show is now in its 66th year and is the largest RV trade show on the west coast. This year's show will feature 1,300 RV models. The RV Industry Association, which puts on the national trade show, believes that the planned configuration changes at the Pomona Fairplex property make the site unsuitable for future shows and that the show can grow and more effectively serve consumers in a new, larger facility. They believe they have found that facility at the Auto Club Speedway, which is 21 miles away from the Pomona Fairplex and is located in San Bernardino County. The amendments being made to this bill would allow the show to relocate to San Bernardino, and once that occurs, allow them to move the show back to Los Angeles County or any location within 30 miles of the Auto Club Speedway.

This bill has an urgency clause, stating that is necessary to take immediate effect in order to avoid interruption to commercial sale of recreational vehicles and the resulting effects on the economy.

Analysis Prepared by: David Sforza / TRANS. / (916) 319-2093 FN: 0004272

 THIRD READING  

Bill No: AB 2330

Author:

:

Vote:

PRIOR VOTES NOT RELEVANT

SENATE TRANS. & HOUSING COMMITTEE: 13-0, 8/14/18 (Pursuant to Senate Rule 29.10)

AYES: Beall, Cannella, Allen, Dodd, Gaines, Galgiani, McGuire, Morrell, Roth, Skinner, Vidak, Wieckowski, Wiener

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT:

SOURCE: Recreational Vehicle Industry Association

DIGEST:

This bill, an urgency measure, recasts certain provisions related to recreational vehicle (RV) trade shows, as specified.

ANALYSIS:

Existing law:

1. Requires a RV dealer that applies for a temporary branch license issued by the Department of Motor Vehicles to sell new RVs at a trade show to submit certain documentation including but not limited to the dates and location of the RV trade show.
2. Imposes, for RV trade shows that includes nine or fewer dealers, certain requirements including the show is 50 miles or more from the dealer’s established place of business and that promotional materials include the name and established place of business for each participating dealer.
3. Provides exemptions from the abovementioned requirements for a RV dealer that participates in an annual show sponsored by a national trade association, as specified, if the show is located in a county with a population of six million or more persons.

This bill:

1. Allows a national RV trade show to be held in a county with nine million or more persons or at a location that is within 30 miles from the prior approved location and further recasts the abovementioned exemptions for a RV dealer participating in a national trade show.
2. Specifies that least 10 RV manufactures must also participate in the show.

Comments

1. Purpose. According to the author, “AB 2330 modernizes a Vehicle Code section relating to trade shows of national RV manufacturers and adds flexibility in order to relocate a long-standing large RV trade show. Relocation of the show will enhance the ability of manufacturers and dealers to offer products to consumers, with attendant tax benefits to local governments.”
2. RVs and RV trade shows. According to the RV Industry Association, two main categories of RVs exists:
3. Motorhomes, which are motorized RVs; and,
4. Towables, which are towed behind the car, van, or pickup truck.

Prices for new RVs typically range between $6,000-$22,000 for folding camping trailers; $8,000-$95,000 for conventional travel trailers; and $18,000-$160,000 for fifth wheel trailers. The RV Industry Association further notes that according to a 2015 economic impact analysis, the RV industry generates an estimated $50 billion in economic output throughout the United States. The RV industry includes more than 22,000 businesses, provides nearly 300,000 jobs, and paid wages of $15.8 billion in 2015. The Association notes more RVs are manufactured in the U.S. than in the entire world combined.

RV trade shows are held throughout the United States. RV shows provide customers the opportunity to shop through hundreds, and many times, thousands of RVs in one location. For example, the 2018 California RV show will feature 1,300 RV models of all types. At these trade shows, customers have the opportunity to compare vehicles and directly purchase an RV without having to travel to various dealerships.

1. California national RV trade show. Currently, existing law limits a national RV trade show from being held in any county besides Los Angeles. The provisions specified in this bill revise existing requirements to allow a national RV trade show to be held in a location no further than 30 miles from the location where the California RV trade show is typically held — the Pomona Fairplex. The author notes that if this bill is enacted, these changes will permit a long-standing national RV trade show to be moved from its present location in Los Angeles County to the Auto Club Speedway in San Bernardino County, a distance of some 21 miles. The author further notes these changes are necessary because planned configuration changes on the Pomona Fairplex property has convinced the owner of the national trade show, the Recreational Vehicle Industry Association, that the show can grow and more effectively serve consumers in a new, larger facility. If enacted, it is the intent of the Association to move the trade show to the Auto Club Speedway in Fall 2019.
2. 29.10 (c) referral. This bill was substantially amended on August 8, 2018, and referred to the Senate Transportation and Housing Committee pursuant to Senate Rule 29.10 (c). The prior version of this bill addressed policy matters as they relate to horse racing and was heard in the Senate Governmental Organization Committee. The contents of the August 8th version of this bill as they relate to RV trade shows have not been heard by the Senate Transportation and Housing Committee. Pursuant to Senate Rule 29.10 (c) this bill may be heard however cannot be amended in the Senate Transportation and Housing Committee.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified: 8/20/18)

Recreational Vehicle Industry Association (source)

OPPOSITION: (Verified: 8/20/18)

None received

ASSEMBLY FLOOR: 73-0, 5/10/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Travis Allen, Cooley, Friedman, Cristina Garcia, Obernolte

Prepared by:

8/20/18 16:25:22

**** END ****

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2017 - 2018 Regular

Bill No: Hearing Date: 8/14/2018

SUBJECT: Recreational vehicle dealers: temporary branch licenses.

DIGEST: This urgency bill recasts certain provisions related to recreational vehicle (RV) trade shows, as specified.

ANALYSIS:

Existing law:

1. Requires a recreational vehicle dealer that applies for a temporary branch license issued by the Department of Motor Vehicles (DMV) to sell new recreational vehicles at a trade show to submit certain documentation including but not limited to the dates and location of the recreational vehicle trade show.
2. For recreational vehicle trade shows that includes nine or fewer dealers, imposes certain requirements including the show is 50 miles or more from the dealer’s established place of business and that promotional materials include the name and established place of business for each participating dealer.
3. Provides exemptions from the abovementioned requirements for a recreational vehicle dealer that participates in an annual show sponsored by a national trade association, as specified, if the show is located in a county with a population of six million or more persons.

This urgency Bill:

1. Allows a national RV trade show to be held in a county with nine million or more persons or at a location that is within 30 miles from the prior approved location and further recasts the abovementioned exemptions for a recreational vehicle dealer participating in a national trade show.
2. Additionally specifies that least 10 recreational vehicle manufactures must also participate in the show.

COMMENTS

1. Purpose. According to the author, “AB 2330 modernizes a Vehicle Code section relating to trade shows of national RV manufacturers and adds flexibility in order to relocate a long-standing large RV trade show. Relocation of the show will enhance the ability of manufacturers and dealers to offer products to consumers, with attendant tax benefits to local governments.”
2. RVs and RV trade shows. According to the RV Industry Association, two main categories of RVs exists:
3. Motorhomes, which are motorized recreational vehicles; and,
4. Towables, which are towed behind the car, van, or pickup truck.

Prices for new RVs typically range between $6,000-$22,000 for folding camping trailers; $8,000-$95,000 for conventional travel trailers; and $18,000-$160,000 for fifth wheel trailers. The RV Industry Association further notes that according to a 2015 economic impact analysis, the RV industry generates an estimated $50 billion in economic output throughout the United States. The RV industry includes more than 22,000 businesses, provides nearly 300,000 jobs, and paid wages of $15.8 billion in 2015. The Association notes more RVs are manufactured in the U.S. than in the entire world combined.

RV trade shows are held throughout the United States. RV shows provide customers the opportunity to shop through hundreds, and many times, thousands of RVs in one location. For example, the 2018 California RV show will feature 1,300 RV models of all types. At these trade shows, customers have the opportunity to compare vehicles and directly purchase an RV without having to travel to various dealerships.

1. California National RV Trade Show. Currently, existing law limits a national RV trade show from being held in any county besides Los Angeles. The provisions specified in this bill revise existing requirements to allow a national RV trade show to be held in a location no further than 30 miles from the location where the California RV trade show is typically held — the Pomona Fairplex. The author notes that if this bill is enacted, these changes will permit a long-standing national RV trade show to be moved from its present location in Los Angeles County to the Auto Club Speedway in San Bernardino County, a distance of some 21 miles. The author further notes these changes are necessary because planned configuration changes on the Pomona Fairplex property has convinced the owner of the national trade show, the Recreational Vehicle Industry Association, that the show can grow and more effectively serve consumers in a new, larger facility. If enacted, it is the intent of the Association to move the trade show to the Auto Club Speedway in Fall 2019.
   
2. 29.10 (c) referral. This bill was substantially amended on August 8, 2018 and referred to this committee pursuant to rule 29.10 (c). The prior version of this bill addressed policy matters as they relate to horse racing and was heard in the Senate Governmental Organization Committee. The contents of the August 8^th version of this bill as they relate to RV trade shows have not been heard by this policy committee. Pursuant to rule 29.10 (c) this bill may be heard however cannot be amended in this policy committee.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

August 8, 2018.)

SUPPORT:

None received.

OPPOSITION:

None received.

-- END --

 THIRD READING 

Bill No: AB 2330

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 10-0, 6/12/18

AYES: Dodd, Wilk, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Portantino, Vidak

NO VOTE RECORDED: Bradford, Lara

ASSEMBLY FLOOR: 73-0, 5/10/18 (Consent) - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill adds the “Florida Derby” to the group of stake races which are exempt from the 50-race per day limit on imported races in California.

ANALYSIS:

Existing law:

1. Provides, under Article IV, Section 19(b) of the Constitution of the State of California, that the Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results.
2. Grants the California Horse Racing Board the authority to regulate the various forms of horse racing authorized in this state.
3. 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.
4. Limits the number of races that may be imported by associations and fairs 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.
5. 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 Arlington Million, the Breeders’ Cup, the Dubai Cup, the Arkansas Derby, the Apple Blossom Handicap, or the Haskell Invitational.

This bill adds the “Florida Derby” to the group of stake races which are exempt from the 50-race per day limit on imported races in California.

Comments

Purpose of the bill. According to the author, “there have been at least 18 Florida Derby winners who have gone on to win the Triple Crown Classics (Kentucky Derby, Preakness Stakes, and Belmont Stakes). Many view the Florida Derby, an American Thoroughbred horse race, as a respected prep race for the Kentucky Derby. This measure simply adds races part of the raced card of the Florida Derby to the list of races exempt from the 50 imported races per day limit.”

Satellite wagering. Satellite wagering via an off-track facility has been legal in California since the 1980s 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 30 years, the horse racing industry has witnessed a general decline in the number of people attending and wagering at live tracks 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.

The Florida Derby. The Florida Derby is an American Thoroughbred horse race for three-year-old horses held annually in April at Gulfstream Park in Hallandale Beach, Florida. The Florida Derby was first run in 1952. The Florida Derby is biggest race day of the year in South Florida, the race is a showcase of the world's best horses and jockeys. The Florida Derby’s reputation as the most prolific prep for the spring classics was only strengthened by the 2016 and 2017 victories by Nyquist and Always Dreaming, who went on to victory in the Kentucky Derby.

Related/Prior Legislation

AB 2270 (McCarty, 2018) authorizes wagering on a nightly program of out-of-country harness racing from a single racetrack, regardless of the number of races offered, if specified conditions are met. (Pending in the Senate Governmental Organization Committee)

AB 2739 (Gray, 2018) adds the “Whitney Stakes” to the group of stake races which are exempt from the 50-race per day limit on imported races in California. (Pending in the Senate Governmental Organization Committee)

ACA 119 (Hornblower, Resolution Chapter 101, Statutes of 1933) placed Proposition 3 on the June 1933 ballot, which was approved by the voters and authorized the Legislature to provide for the regulation of horse races and horse race meetings and wagering on the results thereof.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 8/8/18)

None received

OPPOSITION: (Verified 8/8/18)

None received

ASSEMBLY FLOOR: 73-0, 5/10/18

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Travis Allen, Cooley, Friedman, Cristina Garcia, Obernolte

Prepared by:

8/8/18 11:26:00

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2017 - 2018 Regular

Bill No: AB Hearing Date: 6/12/2018

SUBJECT:

DIGEST: This bill adds the “Florida Derby” to the group of stake races which are exempt from the 50-race per day limit on imported races in California.

ANALYSIS:

Existing law:

1. Article IV, Section 19(b) of the Constitution of the State of California provides that the Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results.
2. Grants the California Horse Racing Board (CHRB) the authority to regulate the various forms of horse racing authorized in this state.
3. 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.
4. Limits the number of races that may be imported by associations and fairs 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.
5. 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 Arlington Million, the Breeders’ Cup, the Dubai Cup, the Arkansas Derby, the Apple Blossom Handicap, or the Haskell Invitational.

This bill adds the “Florida Derby” to the group of stake races which are exempt from the 50-race per day limit on imported races in California.

Background

Purpose of the bill. According to the author, “there have been at least 18 Florida Derby winners who have gone on to win the Triple Crown Classics (Kentucky Derby, Preakness Stakes, and Belmont Stakes). Many view the Florida Derby, an American Thoroughbred horse race, as a respected prep race for the Kentucky Derby. This measure simply adds races part of the raced card of the Florida Derby to the list of races exempt from the 50 imported races per day limit.”

Satellite wagering. Satellite wagering via an off-track facility has been legal in California since the 1980s 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 30 years, the horse racing industry has witnessed a general decline in the number of people attending and wagering at live tracks 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.

The Florida Derby. The Florida Derby is an American Thoroughbred horse race for three-year-old horses held annually in April at Gulfstream Park in Hallandale Beach, Florida. The Florida Derby was first run in 1952. The Florida Derby is biggest race day of the year in South Florida, the race is a showcase of the world's best horses and jockeys. The Florida Derby’s reputation as the most prolific prep for the spring classics was only strengthened by the 2016 and 2017 victories by Nyquist and Always Dreaming, who went on to victory in the Kentucky Derby.

Prior/Related Legislation

AB 2270 (McCarty, 2018) authorizes wagering on a nightly program of out-of-country harness racing from a single racetrack, regardless of the number of races offered, if specified conditions are met. (Pending in the Senate Governmental Organization Committee)

AB 2739 (Gray, 2018) adds the “Whitney Stakes” to the group of stake races which are exempt from the 50-race per day limit on imported races in California. (Pending in the Senate Governmental Organization Committee)

AB 1167 (Gray, 2017) allows CHRB to authorize a licensed quarter horse racing association that is conducting a live racing meeting in this state to accept wagers on a quarter horse stakes race with a purse equal to or greater than $100,000. (Pending on the Senate Inactive File)

AB 558 (Low, Chapter 3, Statutes of 2016) provided that the CHRB may authorize a racing association licensed to conduct a thoroughbred race meet to include up to six non-thoroughbred races per calendar year, pursuant to specified conditions.

AB 897 (Hall, Chapter 225, Statutes of 2011) authorized the CHRB to permit a licensed California quarter horse racing association that is conducting a live racing meeting to accept wagers on the full card of races conducted by another racing association on the date that other association conducts the Texas Classic Futurity and Remington Park Futurity.

ACA 119 (Hornblower, Resolution Chapter 101, Statutes of 1933) placed Proposition 3 on the June 1933 ballot, which was approved by the voters and authorized the Legislature to provide for the regulation of horse races and horse race meetings and wagering on the results thereof.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT:

None received

OPPOSITION:

None received

Date of Hearing: May 2, 2018

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

ABPCA Bill Id:AB 2330 (

Author:Bigelow) – As Introduced Ver:February 13, 2018

SUBJECT: Horse racing: out-of-state thoroughbred races: Florida Derby

SUMMARY: This bill adds the “Florida Derby" to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

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) Limits the number of races that may be imported by associations and fairs 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.

3) 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 Arlington Million, the Breeders’ Cup, the Dubai World Cup, the Arkansas Derby, the Apple Blossom Handicap, or the Haskell Invitational.

4) 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.

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

COMMENTS:

Purpose of this bill. The Florida Derby is an American Thoroughbred horse race for three-year-old horses held annually in April at Gulfstream Park in Hallandale Beach, Florida. The Florida Derby was first run in 1952. The Florida Derby is biggest race day of the year in South Florida, the race is a showcase of the world's best horses and jockeys. The Florida Derby’s reputation as the most prolific prep for the spring classics was only strengthened by the 2016 and 2017 victories by Nyquist and Always Dreaming, who went on to victory in the Kentucky Derby.

AB 2330 provides that all races imported by a thoroughbred association or fair that are part of the race card of the overall Florida Derby day would be exempted from the 50-race per day limit, as defined in current law. Over the years, this law has been amended to allow specific notable races to be imported outside of this cap for promotional and financial reasons.

The author’s office notes that this measure is intended to help increase public interest and participation at California racetracks and satellite wagering facilities. The satellite importation of this historic and prestigious race will allow California racetracks to remain competitive, increase the wagering handle on this specific race day and will lead to increased purses, racetrack revenue, and breeders' awards in this state.

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 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 2739 (Gray) of 2018. Would add the “Whitney Stakes" to the group of stake races in Horse Racing Law which are exempt from the 50-race per day limit on imported races.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

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