BILL ANALYSIS Ó
SB 819
Page 1
Date of Hearing: September 11, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 819 (Governmental Organization Committee) - As Amended:
September 6, 2013
Policy Committee: Governmental
Organization Vote: 16 - 0
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill 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. In addition, this bill authorizes the California Horse
Racing Board (CHRB) to allow pari-mutuel wagering on one
non-thoroughbred race on the day that Breeders' Cup races are
run at a host venue in California.
FISCAL EFFECT
1)There are no significant state costs associated with this
legislation.
2)In 2012, a similar diversion shifted over $1.4 million of the
handle generated by the Breeders' Cup to the promotion and
marketing of the Breeders' Cup Championship. Without that
redirection, the money would have otherwise gone toward the
funding of purses for overnight races (i.e. races where horses
can be entered 72 hours or less before the race). Presumably,
under this bill, a similar amount would be diverted to market
the event and/or augment the size of the purses specifically
provided for the Breeders' Cup races.
COMMENTS
1)Purpose . Currently, Horse Racing Law requires a thoroughbred
racing association (in this case, Santa Anita) hosting the
Breeders' Cup to set-aside and make available certain money
SB 819
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generated from the 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.
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.
2)2014 Breeders' Cup . 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.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081