wrongway, did of course go the rightway and in CA, a scratch at this point in time gets the favorite. Here is the CHRB rule:

"(d) If a wagering interest in any of the Pick (n) races is scratched, or is designated to run for purse only in accordance with Rule 1974 of this article, the association may substitute the favorite for the scratched or designated wagering interest, determined by total amounts wagered in the win pool at the close of wagering on that race, or allow patrons the option of selecting an alternate wagering interest. The favorite or alternate wagering interest shall be substituted for the scratched wagering interest, or horse designated to run for purse only, for all purposes. If the association elects to substitute the favorite and the win pool total is identical for two or more horses, the horse with the lowest program number is used."

The confusion comes in where other jurisdictions give a consolation payout with a scratch in the sequence while others just go to the favorite. The option of having an alternate selection in each leg is legal and use used for a time period in CA, but from understanding that opens up the system to errors, some of which might be past posting or other things. I think they blamed part of the quick pick software error that was brought to light when Big Brown won the Derby from post 20 and the guy that bought $1300 worth of $1 quick pick superfecta tickets did not have any #20's on his ticket from the 5200 combinations on using the alternatives in the multirace wagers. They got rid of both initially, but have bought back the quick picks, but not the use of alternatives in multirace betting.