Assembly Standing Committee on Governmental Organization

Test, test. Having consulted with the Vice Chair, we're going to go ahead and begin as a subcommittee. I will skip over all the housekeeping items because there is no connection at this point in time. We're going to start as a subcommittee for the bill heard today. There'll be an opportunity for two witnesses in support and two witnesses in opposition. Each will have two minutes of testimony. With that, we'll begin. Sergeants, please call the absent Members.

Again, noticing the absence of a quorum, we'll begin as a subcommittee. And I think we have an author. Okay, no problem. Thank you. We'll begin a subcommittee whenever you're ready to present, sir.

Thank you, Mr. Chair. I first like to thank you and your Committee staff for all of your work on this bill, and of course, your support as a co-author.

Thank you.

AB 1074 is a fair compromise that will keep Golden Gate Fields open until July 1st, 2024, after which monies generated in the north will be split proportionately among racing associations and fairs in the central and southern zones when racing is not taking place in the north. This statutory change will ensure that all horse racing stakeholders will have the opportunity to benefit from host fees generated in Northern California. Horse racing has a long and successful history in California.

The oldest one mile track in America is located at the Alameda County Fair. Eleven Santa Anita Derby wins have gone off as winning in the Kentucky Derby and the Del Mar Host, the most successful means... of Californians, supports local fairgrounds, contributes tax revenues to local governments, and serves as another model work for farm safety.

Buttons on it means you're heard here and on TV.

Thank you, and we'll hear from the two witnesses in support of.

Mr. Chair and Members of the Committee, Louie Brown here today on behalf of the California Authority of Racing Fairs. As the author stated, appreciate the support of the Committee consultant's work and on your behalf, Mr. Chair, for help bringing this compromise together, which is really in the best interest of racing in the State of California. What this bill does is it provides us some additional time in the north to prepare for a transition as Golden Gate Fields moves and closes permanently.

This will give the fairs, the horsemen, the trainers, the breeders, and our employees the opportunity to create a successful transition plan when we're not running in the north, those monies that are wagered will then be sent to the south so that we can support the industry in the south and vice versa. This is really a good compromise in the best interest of the State of California, our horse racing industry, and we ask for an aye vote. Thank you.

Mr. Chairman and Members, Scott Wetch, on behalf of the Stronach Group, the Los Angeles Turf Club, and its affiliated entity, the Pacific Racing Association. As you all are well aware and cited in the analysis, unfortunately, my client has had to make the very difficult decision to cease racing at Golden Gate Fields. It was a decision that was not made lightly. But the economics of Golden Gate Fields has just not panned out for a number of years and has operated at a loss.

In the coming months, the California Horse Racing Board will decide really the future of racing in Northern California as well as the entire state for that matter. What this Bill AB 1074 accomplishes is that in the event that the CHRB is not successful in finding a home for the dates that will now--the racing dates that will no longer be operated at Golden Gate fields--if they don't successfully find enough venues, fairs in Northern California to absorb those dates, this bill ensures that all the wagers, the appropriate wagers, are continued to be collected and that they continue to be dispersed so that all of the entities within horse racing that rely on those funds from the CHRB itself, all the equine safety, the breeders, the tracks themselves, the purses for the races, the workers' comp system, the pensions for the workers who work at each of our tracks--this will ensure that those wagers continue to not only be collected, but to be dispersed pursuant to what the statute requires.

Without this bill, that wouldn't be able to be possible. So that's why this is just a very much needed urgency measure and we appreciate the author and we urge and aye vote. Thank you.

Thank you. Now we'll go to opposition main witnesses if there are any. Hearing and seen none, we're going to go ahead to public support in the room or if there's opposition, just line up and name, organization, and position only.

Good afternoon. Justin Fanslau on behalf of Del Mar Thoroughbred Club and the Thoroughbred Owners of California, in support.

Good evening. Jason Bryant on behalf of the California Thoroughbred Breeders Association. We're in support of the bill. Thank you.

Nico Molina on behalf of the California Thoroughbred Trainers, in support. Thank you.

Thank you. Any questions from Committee Members? Yes?

I believe we had some discussions about this in my office some time back and I think that I recollect that the Fresno Fairgrounds will be involved in this in some way, right? We'll absorb some of these race dates?

Potentially. What's the go/no-go decision on that?

Potentially.

So, as Mr. Wetch said, the Horse Racing Board will be the final arbiter of the dates. What will happen over the course of the next few months is that the interests in Northern California, the fairs, the horsemen, the trainers, the breeders are going to get together to determine what a calendar in Northern California could look like and what venues we can use for those. And as you know, Mr. Patterson, the Fresno Fair has a long history and has a very successful meet.

Are we considered Northern or Southern? We're in the northern?

Basically everything north, for the most part, everything north of the Tehachapi's is Northern California and then Central and Southern is in the southern part of California, as we would describe.

I've had conversations with our Fair Board. A lot of these guys have been by my friends forever. I'm going to be very supportive of this, and I sure hope that we get those dates.

Assemblymember, there's many factors that the CHRB will look at. The financial viability of whatever the proposals are, the facilities, the capabilities of absorbing how many of those dates. As Louie said, this is something will be hashed out through the industry, through the CHRB.

And will the fairgrounds be involved in those discussions?

Yeah. Oh, yes.

Okay, great. Thank you. Appreciate that.

Oh, we're waiting for--let me look--two more Members and then we'll be fine there. Any other Committee Members who might have questions? No. I'll invite the author to close.

I just respectfully ask your aye vote.

Thank you. And maybe the sergeants can call the absent Member so we can establish a quorum. Thank you for your presentations. We will take up the bill when we have a quorum.

Miguel? Miguel, Low and Gibson Members Lounge.

I support Valencia.

I know that. You stay there. We'll go get them.

Okay. Wait, I need to turn this off. We're establishing a quorum. Madam Secretary, please call the roll.

On the quorum, Santiago?

Here.

Santiago, here. Lackey?

Here.

Lackey, here. Aguiar-Curry? Here. Aguilar-Curry, here. Berman? Bryan? Cervantes? Dahle? Here. Dahle, here. Davies? Here. Davies, here. Garcia? Gipson? Jones-Sawyer? Low? Mathis? Here. Mathis, here. McCarty? Here. McCarty, here. McKinnor? Patterson? Here. Patterson, here. Quirk-Silva? Here. Quirk-Silva, here. Ramos?

Here.

Ramos, here. Rubio? Here. Rubio, here. Ta? Here. Ta, here. Valencia? Here. Valencia, here. Villapudua? We have a quorum.

Thank you. We had one item that was heard: AB 1074. It's pending a first and a second. Ms. Davies was the first and then Mr. Patterson, I believe, was the second. If I got that wrong, I apologize to everyone. Let's go ahead and vote on it, Madam Secretary.

AB 1074, Alanis. The motion is to concur in Senate amendments. Santiago? Aye. Santiago, aye. Lackey? Aye. Lackey, aye. Aguiar-Curry?Aye. Aguiar-Curry, aye. Berman? Bryan? Cervantes? Dahle? Aye. Dahle, aye. Davies? Aye. Davies, aye. Garcia? Gipson? Jones-Sawyer? Low? Mathis? Aye. Mathis, aye. McCarty? Aye. McCarty, aye.

McKinnor? Patterson? Aye. Patterson, aye. Quirk-Silva? Aye. Quirk-Silva, aye. Ramos? Aye. Ramos, aye. Rubio? Aye. Rubio, aye. Ta? Aye. Ta, aye. Valencia? Yes. Valencia, yes. Villapudua? We'll leave it open for additional Members to add on.

There was a first and a second on AB 1074.

AB 1074 opening the roll for Assemblymember Cervantes. Aye. Cervantes, aye.

Thank you. Madam Secretary?

AB 1074 opening the roll for Assemblymember Berman? Aye. Berman, aye. Assemblymember Low? Aye. Low, aye.

We'll leave this open for another few minutes. Some Members can come up here if they'd like to add. Madam Secretary.

AB 1074 opening the roll for Assemblymember Jones-Sawyer. Jones-Sawyer? Here. Jones-Sawyer, here.

On AB 1074, Mr. Sawyer? Aye.

Jones-Sawyer, aye. For Assemblymember Gipson on AB 1074?

Here and aye.

Gipson, here. Gipson, aye.

Thank you. We are adjourning the GO Committee. Hold on.

AB 1074 is out with 18 aye votes and no no votes.

Correct. We're adjourning the GO Committee, and now it's official.

Perfect. Alright. Good work, Team GO.

You guys are the best. Thanks.