BILL ANALYSIS Ó
Bill No: SB
819
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
SB 819 Author: Committee on Governmental Organization
As Introduced: March 14, 2013
Hearing Date: April 23, 2013
Consultant: Art Terzakis
SUBJECT
Breeders' Cup World Championship Series: payment of purses
DESCRIPTION
SB 819 modifies an existing provision of Horse Racing Law
that requires certain purse account funds be used to
promote and support the Breeders' Cup by expanding the use
of those funds to include the "payment of purses in
Breeders' Cup Championship races."
EXISTING LAW
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.
Existing law provides that the California Horse Racing
Board (CHRB) shall regulate the various forms of horse
racing authorized in this state.
Existing law generally provides for the distribution of
funds collected from wagers on horse racing in California.
In years that the Breeders' Cup Championship series is
conducted at a race meeting in California, the law requires
that specified amounts that would have otherwise been
distributed to a purse account be made available to promote
and sponsor the Breeders' Cup.
BACKGROUND
SB 819 (Committee on Governmental Organization)
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Purpose of SB 819: Currently, Horse Racing Law (Section
19605.74 of the Business and Professions Code) requires the
thoroughbred racing association (in this case, Santa Anita)
hosting the Breeders' Cup to set-aside and make available
certain monies generated from handle on days during which
Breeders' Cup races are conducted in California for the
purpose of "promoting and supporting" the Breeders' Cup.
SB 819 would specify that promoting and supporting the
Breeders' Cup includes the "payment of purses in Breeders'
Cup Championship races" as a purpose of the funds. This
measure is simply intended to improve the business climate
for horse racing in California and to encourage the
organization operating this prestigious international event
to make California its permanent home.
Arguments in Support: Proponents reference the fact that
the first ever Breeders' Cup was held at Hollywood Park
racetrack in 1984 and from that day forward California has
played an important role in establishing the Breeders' Cup
as the culmination of the thoroughbred-racing season and
the multi-million dollar world renowned event it is today.
Santa Anita racetrack hosted nearly 90,000 fans during the
2012 Breeders' Cup World Championships. Santa Anita will
also be hosting the 2013 Breeders' Cup Championships which
will mark the 10th time that the Breeders' Cup has been
held in the Golden State.
Comments: It is a well-known fact that the California
horse racing industry is in distress and has lost favor
with the public, primarily due to competition with other
forms of gambling and declining popularity of its own
product. Yet the horse racing industry in this state
remains an important segment of the economy, generating by
some estimates almost 50,000 jobs.
The State of California is in competition with several
other states to be the permanent home of the Breeders' Cup,
which is actively looking at a permanent host location as a
potential option as part of its ongoing strategic planning
initiative. Experts within the industry believe that
locating the Breeders' Cup on a permanent basis in
California would generate $60 million in economic output
and create hundreds of direct and indirect jobs.
This proposal is intended to help California attract the
world's best horses, trainers and owners to participate in
the Breeders' Cup World Championships and make California
SB 819 (Committee on Governmental Organization)
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an attractive site for future editions of the richest two
days in sports.
PRIOR/RELATED LEGISLATION
SB 1072 (R. Calderon), Chapter 238, Statutes of 2010.
Among other things, authorized the CHRB to license entities
to operate "exchange wagering" systems, as defined, which
accept exchange wagers from individuals residing either
within or outside of this state on horse races run in
California or other states. Also, provided that monies
that would have been otherwise distributed to a purse
account from the increased takeout on Breeders' Cup day(s)
shall be available for the purpose of promoting and
sponsoring the Breeders' Cup. Additionally, required the
host track of the Breeders' Cup to enter into a written
agreement with the Breeders' Cup, LTD, in consultation and
cooperation with the California Tourism Commission and the
statewide marketing organization relative to the manner in
which the funds set aside to support and promote the
Breeders' Cup are to be expended.
SUPPORT: As of April 19, 2013:
Breeders' Cup Limited
OPPOSE: None on file as of April 19, 2013.
FISCAL COMMITTEE: No.
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