COMMITTEES CALL TO ORDER GOOD
MORNING DUE TO ONGOING COVERT
PRECAUTIONS MASTER RECORD FOR
ALL INDIVIDUALS IN THE HEARING
AND THROUGHOUT CAPITOL GROUNDS
YOU CAN TESTIFY IN PERSON BY
TELEPHONE OR REMOTE TESTIMONY
STATION OUTSIDE OF THE CAPITAL.
YOU CAN TESTIFIED US USING THE
NUMBERS TO CALL EIGHT SEVEN
SEVEN. SIX NINE TWO EIGHT NINE
FIVE SEVEN AND THE ACCESS CODE
IS. ONE THREE ONE FIVE FOUR TWO
ZERO TWO. THIS NUMBER CAN BE
FOUND ON THE COMMITTEE'S
WEBSITE IS DISPLAYED ON YOUR
SCREENS. FOR THOSE CALLING IN
PLEASE MAKE YOURSELF WHILE THE
QUEUES WHILE IN THE QUEUE TO
ELIMINATE BACKGROUND NOISE.
THERE WILL BE AN OPPORTUNITY
FOR TWO WITNESSES IN SUPPORT
AND TWO WITNESSES IN
OPPOSITION. TO EACH TO EACH
PROVIDE TWO MINUTES TWO MINUTES
OF TESTIMONY. FOR ADDITIONAL
WITNESSES CG ANNUALLY PLACE
IN THE QUEUE UNTIL YOUR
OPPORTUNITY TO PROVIDE PUBLIC
COMMENT. SUPPORT OPPOSITION
WILL BE ALTERNATED. AND WHEN
IT'S YOUR OPPORTUNITY TO
PROVIDE COMMENT PRESS ONE THEN
ZERO. IN ON MUTE YOURSELF TO
SPEAK IT. IN ORDER TO SPEAK.
PLEASE BE BRIEF INCLUDE ANY
COMMENTS YOUR NAME ORGANIZATION
AND POSITION. WITH THAT WE WILL
BEGIN IT. WE'RE WAITING FOR
ONE. WELL SO WE WILL START AS
THE- SUBCOMMITTEE FOR THIS
HEARING UNTIL WE GET A QUORUM.
MISTER COOPER. YOU MAY HAVE THE
FLOOR ON ELEVEN SEVENTY THREE A
GOOD MORNING MISTER CHAIR IN MY
HOT. YOU HEAR ME. CAN YOU HEAR
ME NOW. GOOD MORNING MR
CHAIRMAN BURST WHEN AB ELEVEN
SEVENTY THREE PASSES COMMITTEE
MISTER COOPER LET ME INTERRUPT
CHILDREN GO FOR THE CORNELL.
MATT SURGERY PLEASE CALL THE
ROLL. FRAZIER BUT HERE BIGELOW
PRESENT AGUIAR-CURRY. BERMAN.
BRIAN. COOPER BROTHER DAVIES
GIPSON AB SORRY DALY. GALLAGHER
GARCIA GIPSON JONES SAWYER
LACKEY LOW MATHIS HERE QUICK
SILVA. RAMOS RIVAS. RUBIO HERE
SALAS RESIDENTS SMITH HERE TO
RECORD WELL CAN MISTER COOPER
PLEASE NOTE THE BILL. WELL AB
ELEVEN THIRTY THREE PASSES
COMMITTEE THE BILL ADDRESS
EXPANDING THE NUMBER OF
THOROUGHBRED HORSE RACING. IN
THE SENATE I MOVE THE BILL TO
REMOVE THE THOROUGHBRED RACING
PROVISION AND INSTEAD ADDRESS
THE PROCESS FOR DETERMINING
COMPENSATION PAID THE LICENSE
ACCOUNT WAGERING SERVICE
PROVIDERS. FOR PROCESSING
WAITERS ALIVE COURSE RACES
INCLUDES AN ARBITRATION CLAUSE
FOR RESOLVING DISPUTES. AB
ELEVEN SEVENTY THREE WOULD
CLARIFY THAT THE DECISION OF
THE ARBITRATOR IS NOT FINAL AND
BINDING BROTHER SAID TO ISSUE
REVIEW. AND WHAT AT A STANDARD
FOR THE ARBITRATOR TO PLAN
REACHING HIS OR HER DECISION.
THIS PROVISION WAS SUGGESTED BY
THE ATTORNEY GENERAL TO THE
CALIFORNIA HORSE RACING BOARD.
THE BILL ALSO MODIFY THE RATE
OF COMPENSATION TO BE PAID BY
THE COMPANY PROCESSING THE
WAGERS DURING THE ARBITRATION
IN ANY SUBSEQUENT COURT
CHALLENGES. FOR THE SUCH
INTERMARRY OF COMPENSATION IS
FAIR TO ALL PARTIES. I WOULDN'T
SAY WITH ME TODAY IS THE SCOTT
LET. YES MISTER CHAIRMAN A
MEMBER SCOTT WHICH ON BEHALF OF
THE LOS ANGELES TURF CLUB THE
PACIFIC RACING ASSOCIATION
SANTA ANITA PARK IN GOLDEN GATE
FIELDS. MEMBERS MAKE NO
MISTAKE. AB ELEVEN SEVENTY
THREE IS ABOUT PROTECTING
CALIFORNIA'S HORSE RACING
INDUSTRY. AND ITS THOUSANDS OF
UNIONIZED WORKERS FROM BEING
TAKEN ADVANTAGE OF BY OUT OF
STATE INTERNET ADVANCE DEPOSIT
WAGERING COMPANIES. SINCE
EIGHTY W. WAS FIRST AUTHORIZED
IN TWO THOUSAND AND TWO SECTION
NINETEEN SIX OH FOUR HAS
PROVIDED CALIFORNIA HORSE
RACING ENTITIES WHO ARE NOT
SIGNATORY TO AN EIGHTY W. HUB
AGREEMENT. THE RIGHT TO TRIGGER
BINDING ARBITRATION IF A
PAYMENT DISPUTE ARISES. IN TWO
THOUSAND AND TWENTY WITH THE
COVERT PANDEMIC THE PERCENTAGE
OF WAGERS MADE THROUGH ADW
SKYROCKETED. CONSEQUENTLY THE
CONTRACTS IN PLACE DID NOT
FAIRLY COMPENSATE ALL
PARTICIPANTS WITHIN THE
CALIFORNIA HORSE RACING
INDUSTRY. AS A RESULT THE
ARBITRATION PROVISION WAS
APPROPRIATELY TRIGGER.
UNFORTUNATELY ONE OUT OF STATE
EIGHTY W. PROVIDER ATTEMPTING
TO HANG ON TO THEIR WINDFALL
PROFITS SUED TO OVERTURN THE
CALIFORNIA STATUTE ON TO
CONSTITUTIONAL GROUNDS. THAT
THE STATUTE FAILED TO PROVIDE
DUE PROCESS BY NOT PROVIDING
ARBITRATORS WE STANDARDS TO
BASE A DECISION. AND SECONDLY
IT DID NOT AFFORD PARTIES ARE
RIGHT TO JUDICIAL REVIEW OF THE
ARBITRATOR'S DECISION. AB
ELEVEN SEVENTY THREE REMEDIES
THESE TWO LEGAL QUESTIONS.
WITHOUT AB ELEVEN SEVENTY THREE
BECOMING LAW THE CALIFORNIA
INDUSTRY AND ITS WORKERS WILL
CONTINUE TO BE AT THE MERCY OF
OUT OF STATE COMPANIES WHOSE
ONLY INTEREST IS EXTRACTING AS
MUCH PROFIT FROM CALIFORNIA AS
POSSIBLE I WOULD URGE YOU TO
VOTE THANK YOU. THANK YOU
MISTER WHICH THE MOVE ON TO
MISTER HAVE YOU LEAVE
MODERATORS MISTER OF YOU'LL BE
ON THE LINE PLEASE. THANK YOU
MISTER CHAIR MEMBERS GREG
ANNUALLY THE PRESS THOROUGHBRED
OWNERS OF CALIFORNIA. I
REPRESENT SEVEN THOUSAND MEN
AND WOMEN WHO OWNED
THOROUGHBRED RACEHORSES IN THIS
GREAT STATE. THIS BILL IS A
TECHNICAL FIX AS MR WEBB JUST
TESTIFIED WHEN THE THOROUGHBRED
OWNERS OF CALIFORNIA SOUGHT TO
EXERCISE THE ARBITRATION RIGHTS
THAT ARE IN THE STATE IN THE
HORSERACING LAW. CHURCHILL
DOWNS FILED A FEDERAL LAWSUIT
SAYING THAT THE THERE ARE
ASPECTS OF THE LAW IN
PARTICULAR THAT THE ARBITRATION
STANDARD WAS NOT REVIEWABLE BY
A COURT THAT MADE IT
UNCONSTITUTIONAL WE ATTEMPTED
TO HAVE THE STATE ATTORNEY
GENERAL WAY AND THEIR ADVICE TO
US WHICH I BELIEVE IS IN THE
RECORD. IS THAT HOW WE SHOULD
GO AHEAD AND I'M AMEND THE
STATUTES SUCH THAT THE FINAL
ARBITRATION DECISION WAS IN
FACT REVIEWABLE BY A COURT OF
LAW IN ADDITION TO MORE CLEARLY
SPECIFIED STANDARD THE
ARBITRATION BUT A BUTTERFLY
WHICH IS BEEN DONE- INTENDED
SPELL. WE ARE TO PASSAGE THANK
YOU VERY MUCH. THANK YOU SIR.
SO WHAT WILL NOW MOVE ON TO IS
THE OPPOSITION WE HAVE A LISTED
IS- JOHN NORWOOD. CHAIRMAN
MEMBERS JOHN NORWOOD ON BEHALF
OF CHURCHILL DOWNS- WE'RE
OPPOSED TO THE BILL ROBISON YOU
HAVE NO OBJECTION TO THE
PROVISIONS OF THE BILL THAT
PROVIDE FOR JUDICIAL REVIEW.
HAS INDICATED THAT WAS RAISED
IN OUR LAWSUIT HOWEVER WE
QUESTION THE OTHER AMENDMENTS
BECAUSE WE BELIEVE THAT THOSE
AMENDMENTS SKEW THE PROCESS IN
THE FAVOR OF THE INTERVENOR.
UNDER CURRENT LAW- THERE'S A
CERTAIN PRESUMPTION GIVEN TO
THE RATE OF PAY THAT IS BECAUSE
SHE'S IN THE HAVE A GREAT NOT
BECAUSE IT WAS THE GOSHEN ARM'S
LENGTH WITH IT WITH A TRACK.
WITH THIS BILL DOES IS CHANGE
DURING DURING THE PENDENCY OF
THE ARBITRATION COURT CHANGES
THAT NUMBER- FROM THE WHAT'S
BEING WHAT WAS ALLOWED IN THE
HAVE AREEMENT TO AN AVERAGE
BETWEEN WHAT WAS STATED IN THE
AGREEMENT AND WHAT THE
INTERVENOR ONCE WE THINK
THAT'S- PREJUDICES- THE
ARBITRATOR. AND PUTS IN THEIR
MIND THAT SOMETHING LESS IS
WARRANTED ONE THAT MAY NOT BE
THE CASE AT ALL ACTUALLY IN
THIS CASE THE- AMOUNT THAT WAS-
BEEN AT THE RETURN HAVE
AGREEMENT RATE WAS WHICH IS
TRADITIONALLY BEEN CHARGED- IN
ADDITION THIS BILL TRIES TO SET
FORTH A STANDARD FOR THE
ARBITRATOR LOOK AT. AND IN
FAIRNESS THAT WAS AN ISSUE
RAISED IN OUR LAWSUIT. HOWEVER-
THE STANDARD THIS PUT IN THEIR
BASE LOOKS AT CAL. FAN AND THE
RATE- EIGHTY W. PROVIDERS ARE
BEING PAID IN CALIFORNIA-
TRADITIONALLY CHURCHILL DOWNS
HAS BEEN ABLE TO NEGOTIATE. A
HIGHER RATE BASICALLY BECAUSE
THEY HAVE A BETTER PRODUCT- SO
THE WAY THIS STANDARD WORKS.
ESSENTIALLY IS THAT NOW IN
ARBITRATION BILL THEIR PRODUCT
IS VIEWED THE SAME AS A SUB
STANDARD PRODUCT THE STRUGGLE A
LOWER RATE- LASTLY. I THINK THE
IDEA OF THE STATUTE ALL ALONG
WAS TO PROVIDE THAT IF THERE
WAS AN ISSUE WITH ARBITRATION
AGREEMENT. THAT INTERFERE COULD
COME IN AND- NO BECAUSE A
PROCESS TO GO THROUGH COUNTERED
AGREEMENT THERE. THE WAY THE
STATURE ACTUALLY WORKS OUT I
THINK THIS IS THE FIRST TIME
IT'S EVER BEEN USED IN FIFTEEN
YEARS- ON THE BOOKS IS THAT-
YOU CAN HAVE A SITUATION WHERE-
AS AN ART OF WITH THE RATE
BEING PAID WAS THE SAME IT'S
ALWAYS BEEN PAID. THERE'S NO
REALLY ISSUE AT ALL BUT YOU CAN
HAVE AN INTERVENOR THAT FOR
INSTANCE- YOU KNOW DOESN'T LIKE
SOMETHING ELSE YOU'RE DOING IN
THE MARKET PLACE. AND SO TO
MESS WITH YOU THEY WANTED THEY
BASICALLY BECAUSE AN
INTERVENTION IN THIS AND
THREATEN AN INTERVENTION THAT'S
IN FACT WHAT KIND OF WHAT
HAPPENED. IN THIS SITUATION I
DON'T THINK THAT'S WHAT THE
STATUTE WAS INTENDED TO DO. YOU
KNOW- IN THE- IN THE END- I
THINK ONE OF THE WITNESSES
EXPERT WITNESSES IN THE SENATE
SAID. THIS BILL BUT ON THE- ARE
THE STATUES BROWN THE BOOKS FOR
FIFTEEN YEARS AND PRINT FAIR AT
ALL. WELL THAT'S THE CASE THEN
OTHER THAN CHANGING THE- APPEAL
ISSUE WHY ARE WE MAKING THESE
OTHER CHANGES. AND WHY ARE YOU
MAKING THESE CHANGES. IN THE
PROCESS OF A GUT AND AMEND
WHERE YOU LIMIT. A FULL DEBATE
WHEN EVERYBODY KNEW. THIS WAS
IT THERE WAS AN ISSUE WITH THE
CONSTITUTIONALITY OF THE
SECTION WAY BEFORE. THE AG'S
OPINION IN MARCH. SO THERE IS
NO REASON AT ALL WHY THIS BILL
COULDN'T GOT THROUGH THE
REGULAR PROSTOR WHAT I'M ASK
YOU TO WRAP UP PLEASE. THANK
YOU. ANY MEMBERS OF- IN THE
AUDIENCE WHO WERE IN-
INTERESTED IN ADDRESSING THE
COMMITTEE IN OPPOSITION TO THE
BILL. SEEING NONE WILL GO TO
THE MODERATOR MODERATOR DO WE
HAVE ANY OTHER MEMBERS OF THE
PUBLIC AND THEY WERE INTERESTED
IN OF COMMENTING ON SUPPORT FOR
THE BILL. IN LAYS GERMAN IF YOU
WISH TO MAKE A COMMENT PLEASE
PRESS ONE ZERO AT THIS TIME.
AND JUST SMALL ALTOGETHER.
GIVEN THE LINE NUMBERS. OKAY.
WE'LL GO TO LINE THIRTEEN
PLEASE GO AHEAD. GOOD MORNING
MR MEMBERS JUST CONTENT BLOG
REPRESENT THE CORPORATE
ANDERSON CALIFORNIA AND I ALSO
REPRESENT DEL MAR THOROUGHBRED
CLUB WORDS SUPPORTER JR I FELT
THANK YOU. THANK YOU NEXT COLOR
MODERATE. SURE WE HAVE NO ONE
ELSE THANK YOU AT THIS TIME.
OKAY MARIA THANK YOU SO COULD
YOU WILL ALSO MOVE OVER TO THE
OPPOSITION AND CHECK
PROPOSITIONS FOR- THIS BILL
PLEASE. ZERO ONE IF YOU HAVE
OPPOSITION TO AB ONE ELEVEN
SEVENTY THREE PLEASE PRESS ONE
ZERO AT THIS TIME. JUST A
MOMENT WHILE WE GATHER THE LINE
NUMBER. AND WE'LL GO TO LINE
TWELVE PLEASE GO AHEAD. HI GOOD
MORNING CHAIRPERSON COMMITTEE
THE MISSION A LASSEN I'M MY
FASTER QUE MONTANA I'M JUST
CALLING BECAUSE AS TO OPPOSED
BECAUSE THEY THINK THAT THIS
BILL NEEDS- TO BE FURTHER
READING AND- AND WE DO YOU BE
LOOKED AT. AGAIN BEFORE-
EVERYBODY VOTES ON LEGISLATION
THAT NEEDS TO BE.
CONSTITUTIONALLY ADDRESS. THANK
YOU THANK YOU ANY OTHER CALLS
MODERATOR IN OPPOSITION. WE
HAVE NO ONE ELSE INTO IT THIS
TIME STRENGTH YOU THANK YOU
MODERATE SO WE'LL MOVE TO THE
COMMITTEE ANY QUESTIONS OF THE
CHURCH OF THE COMMITTEE. OF THE
AUTHOR. OPEN THE REMOTE
TESTIMONY STATION IT LET ME ASK
IF THERE'S ANYBODY IN THE
REMOTE TESTIMONY STATION- FOR-
IS WORTHY OF HIS BILL. SEEN
HEARING NONE ANY COVERS THE
PUBLIC IN THE REMOTE TESTIMONY
STATION THERE WERE IN
OPPOSITION OF THE AUTHORS BILL.
SEEING AND HEARING NONE WILL
MOVE ON TO WIN- MISTER COOPER
WHICH I CLOSED YESTERDAY- OF
ALL THINK ALL THIS IS FOR THE
TESTIMONY. I WANT TO NOTE ALL
MEMBERS THE CALIFORNIA HORSE
RACING INDUSTRY SUPPORT THIS
LEGISLATION. THE ONLY
OPPOSITION FROM OUT OF STATE
CHURCHILL DOWNS WHO FOLDER ONLY
RACE TRACK THE ONLY CALIFORNIA
OVER A DECADE AGO. CHURCHILL
DOWNS AS OPPOSED TO THE BILL
HOWEVER WHEN THE AUTHOR TRIED
TO WORK WITH THE NEW MONUMENTS
HE WAS TOLD THAT EVEN IF THE
YOU TOOK YOUR PROPOSED MEN'S
THERE WAS STILL. SU STRIKE DOWN
A STATUTE THEY DO NOT BELIEVE
CALIFORNIA SHOULD INTERFERE
WITH THEIR COMPENSATION GIVEN
THEIR POSITION. IT MADE NO
SENSE TO TAKE THEIR AND
AMENDMENTS ARE STRICTLY A THREE
I HAVE A- THANK YOU MISTER
COOPER- THANK YOU FOR THIS
FORWARD AND THANKS ALL MEMBERS
FOR BEING HERE TODAY AND I
APPRECIATE YOU BEING HERE. ARE
YOU UP YOU HAVE TO DO PASS FOR
ME- RECOMMENDATION AND WE'LL
MOVE ON TO THE- COMMITTEE VOTE.
THE RECOMMENDATION IS THAT
SENTIMENTS BE CONCURRED IN.
FRAZIER HI FRAZIER AYE BIGELOW
AYE BIGELOW AYE AGUIAR-CURRY.
AGUIAR-CURRY AYE BERMAN BERMAN
I BRIAN HI BRIAN I COOPER
COOPER IDEALLY DALY AYE DAVIES.
DAVIES I GARCIA. GIPSON BOB
GIBSON I JONES SAWYER FIVE
JONES SAWYER HI LACKEY. BLACKIE
I LOW. LOW AYE MATHIS MATHIS
AYE PORK SILVA. KIRK SILVA I
RAMOS RAMOS I REQUEST. RUBIO
FIVE RUBIO AYE SALAS. SALAS I
SMITH. SMITH HI EIGHTEEN THE
BILL HAS EIGHTEEN WILL LEAVE
THE ROLE OF GROPING FOR TIME
PERIOD- I JUST WANT TO DO A
LITTLE HOUSEKEEPING MOTION WAS
FROM MATHIS AND SECONDED BY A
GIPSON JUST TO MAKE SURE THAT
WE WERE VERY CLEAR THANK YOU
LANCASTER ROAD COOPER. I. ALL
RIGHT AND THEN LET ME JUST
COMMITTEE. YEAH WORDPRESS. I
DON'T THIS IS MY FRIEND. YEAH.
DID FORTY SEVEN YEAH YEAH.
THREE IT WAS A NEVER REMAIN. SO
WHAT IT DOES IS IT BRINGS
GOVERNOR. YEAH GARCIA. THE
SERGEANTS CAN YOU HAVE A COLD
AND PUT INTO RIVAS AND GARCIA
PLEASE TO SEE IF THEY CAN MAKE
IT UP HERE FOR THE VOTE. THANK
YOU. BECAUSE. YEAH OF LATE LAST
YEAR YEAH ARE AND REALLY. YEAH.
POST OFFICE YEAH- HERE'S OUR
YEARS OF THE SPECULATIVE.
PRESIDENT OKAY ALLOW THEM TO.
BUILDING WELL. YEAH BUT THE-
YEAH. THIS IS. SEVEN YEAH YEAH.
YEAH THAT'S WHAT I WAS DOUBLES
HELLO OKAY FOR YOU I KNOW
THAT'S A LOT OF LIKE. WATER YOU
GUYS. OKAY HERE'S A- OF. YEAH I
MEAN THOSE ARE- YEAH NOT VERY A
RESERVE WHICH. OKAY THE NUMBER
OF. WELL YEAH YOU MUST HAVE A
POSITION. BUT I WITH REALLY.
ASSEMBLY MEMBER. ADULT. YEAH.
YEAH YES THEY ARE PART OF THE
SITE. THAT'S RIGHT. YEAH. THE
ADMISSION MISSION. OKAY OKAY.
YEAH.
YEAH- THIS IS. YEAH OF
COURSE. YEAH. BUT I SO KIND OF
HOLDING IT OPEN FOR YOU KNOW
CERTAIN. AB ELEVEN SEVENTY
THREE THE RECOMMENDATION IS
THAT SENATE AMENDMENTS TO BE
CONCURRED IN REVERSE. RIVAS I.
ALL. LEGISLATIVE BUSINESS
BEFORE THE ASSEMBLY JUMPED OVER
MIDDLE COMMITTEE IS NOW
COMPLETE WE ARE JOINED.