BILL ANALYSIS Ó
SB 819
Page 1
SENATE THIRD READING
SB 819 (Governmental Organization Committee)
As Introduced March 14, 2013
Majority vote
SENATE VOTE :37-0
GOVERNMENTAL ORGANIZATION 16-0
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|Ayes:|Hall, Nestande, Bigelow, | | |
| |Campos, Chesbro, Cooley, | | |
| |Gray, Hagman, Roger | | |
| |Hernández, Jones, | | |
| |Jones-Sawyer, Medina, | | |
| |Perea, | | |
| |V. Manuel Pérez, Salas, | | |
| |Waldron | | |
| | | | |
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SUMMARY : 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 :
1)Provides that the California Horse Racing Board (CHRB) shall
regulate the various forms of horse racing authorized in this
state.
2)Provides that every Thoroughbred racing association or fair
that conducts a live race meet shall deduct an additional 2%
of the total amount handled on exotic wagers requiring the
selection of two wagering interests (e.g., exactas, quinellas)
and 3% of the total amount handled on exotic wagers requiring
the selection of three or more wagering interests (e.g.,
trifectas, superfectas). (The additional takeout is intended
to augment purses.)
3)Provides 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
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promoting and sponsoring the Breeders' Cup.
4)Requires 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. Requires that a written report be
made to the CHRB detailing the manner in which the set aside
funds were utilized to promote and support the Breeders' Cup.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS :
Background :
The Breeders' Cup : The Breeders' Cup has established itself as
the season-ending championship of Thoroughbred racing. Since
the inaugural races in 1984, the Breeders' Cup has grown from a
seven-race, $10 million day, to a 15-race, $27 million two-day
event which attracts the best horses, trainers, and jockeys from
across the globe.
The 2013 Breeders' Cup will be held on Friday, November 1 and
Saturday, November 2 at Santa Anita Park in Southern California,
and the marquee $5 million Breeders' Cup Classic will be
broadcast in prime time on the East Coast. This year's event
will be the seventh time that Santa Anita has been picked to
host the event and the second time that the track has been
selected to host consecutive editions (2012/2013). At the 2012
Breeders' Cup, more than 90,000 fans attended Santa Anita Park
over the two-days of championship racing.
The Breeders' Cup has been staged at 10 different race tracks,
including Woodbine Racetrack in Toronto, Canada. The most
frequent venues have been Churchill Downs in Kentucky, Santa
Anita in California, and Belmont Park in New York.
The purses for the races are funded by worldwide nomination fees
from the industry's Thoroughbred breeders. In addition, horses
are able to earn automatic starting positions into championship
races through the Breeders' Cup Challenge, a series of 68 stakes
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races held worldwide. The winning Thoroughbred race horses of
these races earn an automatic bid to the Breeders' Cup World
Championships.
The Breeders' Cup Board of Directors directs the affairs of
Breeders' Cup Limited, a 501(c)(6) organization. There are 13
Directors on the Breeders' Cup Board. Directors are elected by
the Breeders' Cup Members, a body of 48 individuals, 39 of whom
are elected by the Breeders' Cup nominators.
Purpose of the bill : Currently, Horse Racing Law (Section
19605.74 of the Business and Professions Code) requires a
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. This bill
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 bill is 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.
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.
The State of California is in competition with several other
states each year to be the host 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.
Santa Anita was selected as the 2013 host over Churchill Downs
in Kentucky and Monmouth Park in New Jersey.
According to a study by Los Angeles County Economic Development
Corporation, the Breeders' Cup generated in excess of $60
million in economic impact in the Los Angeles area in both 2008
and 2009.
This proposal is intended to help California attract the world's
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best horses, trainers and owners to participate in the Breeders'
Cup World Championships and make California an attractive site
for future editions of the richest two-days in sports.
Hot Off the Press : On June 10, 2013, the Breeders' Cup
announced that Santa Anita Park was once again selected as the
site for the 2014 Breeders' Cup World Championships. The 31st
Breeders' Cup will be held on October 31 and November 1, 2014.
The 2014 running of the Breeders' Cup World Championships marks
the 11th time that the event will be held in Southern California
and the eighth time that Santa Anita Park will host the
Breeders' Cup.
Prior legislation : SB 1072 (Ron 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.
AB 1736 (Governmental Organization Committee), Chapter 444,
Statutes of 2007. Extended "sunset" provisions in current law
relating to the marketing of the California Horse Racing
Industry.
SB 103 (Maddy), Chapter 10, Statutes of 1998. Required any
association, including fairs, that conducts thoroughbred racing
to pay to the owners' organization contracting with the
association an additional percentage for a national marketing
program, as specified, to promote thoroughbred racing unless the
owners' organization chooses not to contribute to the program.
SB 27 (Maddy), Chapter 335, Statutes of 1998. Among its
provision, created a private statewide marketing organization
for thoroughbred and fair racing that is funded by .4% of the
instate off-track handle. The funds generated from this
distribution are used to market California horse racing on a
statewide basis. California Marketing Committee is generally
responsible for promoting horse racing in the state by
developing and implementing a marketing plan that will increase
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on-track and off-track attendance throughout the state.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0002012