1776 Tribute Road, Suite 205 Sacramento, CA 95815 Office: 916.927.7223 Fax: 916.263.3341 www.calfairs.com AGENDA CALIFORNIA AUTHORITY OF RACING FAIRS BOARD OF DIRECTORS MEETING JOHN ALKIRE, CHAIR 12:30 P.M., TUESDAY, APRIL 3, 2012 Notice is hereby given that a meeting of the California Authority of Racing Fairs’ Board of Directors will commence at 12:30 p.m., Tuesday, April 3, 2012. The meeting will be held in Sacramento. AGENDA I. Date, time and location of next meeting: May 1, 2012 II. Approval of minutes. III. Report, discussion and action, if any, on Legislative program for 2012 and beyond. IV. Report, discussion and action, if any, on extension to Totalisator contract. V. Report on 2012 Horsemen’s Agreements. VI. Report and discussion on preparation of and deadlines for CHRB racing license applications. VII. Report, discussion and action, if any, on CARF Track Safety and Maintenance Program. VIII. Historical report: Jumbo Tron at Fair racetracks. IX. Financials X. Executive Director’s Report CALIFORNIA AUTHORITY OF RACING FAIRS 1776 Tribute Road, Suite 205 Sacramento, CA 95815 Office: 916.927.7223 Fax: 916.263.3341 www.calfairs.com NOTICE CALIFORNIA AUTHORITY OF RACING FAIRS BOARD OF DIRECTORS MEETING JOHN ALKIRE, CHAIR 12:30 P.M., TUESDAY, APRIL 3, 2012 VIA TELECONFERENCE Notice is hereby given that a meeting of the California Authority of Racing Fairs’ Board of Directors will commence at 12:30 p.m., Tuesday, April 3, 2012. The meeting will be held at the CARF Conference Room located at 1776 Tribute Road, Sacramento, California 95815. CARF Board of Directors Meeting Toll Free Dial In Number: (800) 791-2345 Participant Code: 83711 # Via Teleconference The Public and members of the California Authority of Racing Fairs Board of Directors may participate from the following locations: Alameda County Fair National Orange Show Solano County Fair 4501 Pleasanton Avenue 689 South E Street 900 Fairgrounds Drive Pleasanton, CA 94566 San Bernardino, CA 92408 Vallejo, CA 94589 Antelope Valley Fair Riverside National Date Festival Sonoma County Fair 2551 West Ave. H, Suite 102 46-350 Arabia Street 1350 Bennett Valley Road Lancaster, CA 93536 Indio, CA 92201 Santa Rosa, CA 95404 The Big Fresno Fair San Bernardino Co. Fair Southern CA Fair 1121 S. Chance Avenue 14800 Seventh Street 18700 Lake Perris Dr. Fresno, CA 93702 Victorville, CA 92395 Perris, CA 92570 California State Fair San Joaquin Fair Stanislaus County 1600 Exposition Blvd. 1658 S. Airport Way 900 North Broadway Sacramento, CA 95815 Stockton, CA 95206 Turlock, CA 95380 Humboldt County Fair Shasta District Fair Tulare County Fair 1250 5th Street 1890 Briggs Street 215 Martin Luther King Ferndale, CA 95536 Anderson, CA 96007 Tulare, CA 93274 Kern County Fair Monterey County Fair Ventura County Fair 1142 South P Street 2004 Fairground Road 10 West Harbor Blvd Bakersfield, CA 93307 Monterey, CA 93940 Ventura, CA 93001-2706 CALIFORNIA AUTHORITY OF RACING FAIRS II. II. CALIFORNIA AUTHORITY OF RACING FAIRS Board of Directors Tuesday, March 6, 2012 MINUTES A teleconference meeting of the California Authority of Racing Fairs Board of Directors was held at 12:30 P.M., Tuesday, March 6, 2012. The meeting was hosted at the California Authority of Racing Fairs Board Room, 1776 Tribute Road, Sacramento, California, 95815. CARF Board Members joining: John Alkire, Norb Bartosik and Rick Pickering. Joining by conference call: Chris Borovansky, Dan Jacobs, Mike Paluszak and Kelly Violini. Staff and Guests joining: Christopher Korby, Larry Swartzlander, Heather Haviland, Tom Doutrich, Amelia White, Raechelle Gibbons, Rebecca Desmond and Richard Lewis. Joining by conference call: Louie Brown. Agenda Item 1 – Date, Time and Location of Next Meeting. The next CARF Board of Directors meeting is scheduled for April 3, 2012 in Sacramento. Agenda Item 2 – Approval of Minutes. Ms. Violini approved the minutes as presented. Mr. Pickering second, unanimously approved. Agenda Item 3 – Report, Discussion and Action, if any, on Legislative Program for 2012 and Beyond. Mr. Brown reported that all bills have been introduced for the 2012 legislative session. On Feb. 23 and 24 alone, more than 1,100 bills were introduced, many of which are spot bills. Legislative staff is in the process of reviewing 20 bills that have been identified as racing/gaming related. Staff will provide recommended positions as the bills are reviewed. Both CARF sponsored bills were introduced. SB 1227, authored by Senator Gloria Negrete McLeod, provides license fee relief to live racing Fairs. Senator Tom Berryhill authored SB 1418 which will eliminate date restrictions for combined race meets at Fairs. The Internet gaming bill SB 1463 by Senators Wright and Steinberg will ultimately be the vehicle for discussions regarding Internet poker. The bill’s language is currently very broad and covers all Internet gaming and stipulates a license fee of $35 million with unlimited licenses from a limited pool of entities (casinos, card rooms, ADW providers and owners/horsemen’s organizations). The racing industry is working together closely to determine the correct approach moving forward. Right now, the industry seems to be leaning toward an oppose position simply because so much of the language needs to be reworked. ( 1 ) The WFA CFA governance bill, AB 2345 (Ma), was introduced as a spot bill with intent language. Stakeholders will be meeting soon to discuss the language that should be used once the bill is eligible to be amended. Mr. Korby stated that he has reviewed SB 1463 and sees little in the bill that Fairs or the Racing Industry can support. Fairs are not mentioned in the bill and many of the conditions that the racing industry was requesting were not met. Mr. Korby requested Board approval to express opposition to the bill at a time that he and Mr. Brown would deem appropriate. Mr. Pickering moved that Mr. Korby and Mr. Brown, in alliance with the racing industry, take an opposed position regarding the current language in SB 1463. Mr. Bartosik seconded, unanimously approved. Mr. Pickering stated that there was interest in forming a meeting between WFA, CFA and CARF to discuss the 2012 legislative cycle and determine areas of joint support and opposition. Mr. Alkire thanked Mr. Pickering for heading up that effort. Agenda Item 4 – Report on CMC Report to CHRB. Mr. Korby reported that the California Marketing Committee (CMC) Report to the CHRB, prepared in the CARF offices on behald of CMC, is included in the meeting packets. In the past, the CHRB has requested a full annual report from the CMC which has never truly been furnished. Mr. Korby stated that as Co-Chair of the CMC he felt an obligation to provide the CHRB Directors with a comprehensive report that is entirely transparent and details the projects that CMC funds on behalf of horse racing. The report was well received by CMC Directors and CHRB Commissioners. Agenda Item 5 – Financials. Mr. Korby reported that financials are included in the meeting packet. Mr. Korby reported that Rick Wood is currently on leave from CFSA. CARF has a long- standing relationship outsourcing accounting functions to CFSA and Mr. Korby is working with CFSA staff to ensure that CARF’s accounts are whole and that financial oversight and accounting administration needs are met moving forward. Mr. Jacobs stated that the Finance Committee is in the process of reviewing accounting policies and controls that pertain to the agency to ensure that CARF’s accounting functions are operationally correct. Agenda Item 6 – Executive Director’s Report. No report. Respectfully submitted, Heather Haviland ( 2 ) III. CA Authority of Racing Fairs Legislative Report - Last 10 Days 3/23/2012 AB 2518 (Hall) Gambling: Gambling Control Act. (I-02/24/2012 html pdf) Status: 03/19/2012-Referred to Com. on G.O. Current Location: 03/19/2012-A G.O. Digest: The Gambling Control Act provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the California Gambling Control Commission. Existing law authorizes the commission, for any cause deemed reasonable by the commission, to deny any application for a license, permit, or approval, to limit, condition, or restrict any license, permit, or approval, or to impose any fine upon any person licensed or approved. For purposes of the act, existing law defines applicant as any person who has applied for, or is about to apply for, a state gambling license, or other licenses, permits, or approvals, as specified. This bill would revise the definition of "applicant" to no longer include any person who is about to apply for a state gambling license, or other licenses, permits, or approvals, as specified. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. Laws: An act to amend Section 19805 of the Business and Professions Code, relating to gambling. History: Mar. 19 Referred to Com. on G.O. Feb. 27 Read first time. Feb. 26 From printer. May be heard in committee March 27. Feb. 24 Introduced. To print. Organization CARF AB 2520 (Hall) Horse racing: harness or quarter horses. (I-02/24/2012 html pdf) Status: 03/19/2012-Referred to Com. on G.O. Current Location: 03/19/2012-A G.O. Digest: Under existing law, the California Board of Horse Racing may authorize a harness or quarter horse association conducting a horse race to accept wagers on the results of out-of- state, out-of-country, and other designated harness or quarter horse races, if specified conditions are met, including that the association conducts at least 7 live races and imports not more than 8 races on live racing days. This bill would revise that provision to instead permit the association to import not more than 10 races on live racing days.