BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 819
          Author:   Senate Governmental Organization Committee
          Amended:  9/6/13
          Vote:     27 - Urgency

           
           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE :  9-0, 4/23/13
          AYES:  Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,  
            De León, Hernandez, Lieu
          NO VOTE RECORDED:  Galgiani, Padilla

           SENATE FLOOR  :  37-0, 4/29/13 (Consent)  
          AYES:  Anderson, Beall, Berryhill, Block, Calderon, Cannella,  
            Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,  
            Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff,  
            Jackson, Knight, Lara, Leno, Lieu, Monning, Nielsen, Padilla,  
            Pavley, Price, Roth, Steinberg, Walters, Wolk, Wright, Wyland,  
            Yee
          NO VOTE RECORDED:  Liu, Vacancy, Vacancy

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Horse racing:  Breeders Cup World Championship  
          series:  
                      payment of purses

           SOURCE  :     Author


           DIGEST  :    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  
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          those funds to include the "payment of purses in Breeders' Cup  
          World Championship races."  

           Assembly Amendments  (1) authorize the CHRB to allow parimutuel  
          wagering on one nonthoroughbred race on the day that Breeders'  
          Cup races are run at a host venue in California; and (2) expand  
          specific reporting requirements relative to the payment of  
          purses for Breeders' Cup races run in California.

           ANALYSIS  :    

          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 for the distribution of funds collected from wagers  
            on horse racing in California.  In years that the Breeders'  
            Cup World 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.

          3.Specifies that a violation of Horse Racing Law is a  
            misdemeanor.

          This bill:

          1.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 World  
            Championship races."  

          2.Expands specific reporting requirements relative to the  
            payment of purses for Breeders' Cup races run in California.

          3.Permits CHRB to allow parimutuel wagering on Breeders' Cup  
            races to be run at the host venue and on one nonthoroughbred  
            race specified in the host venue's license application  
            approved by CHRB; and provides that amounts deducted and  
            distributed from wagering on nonthoroughbred races will be  
            treated as if the wagers were placed on a thoroughbred race.

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           Background
           
          Currently, Horse Racing Law 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.  
           
           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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  9/12/13)

          Breeders' Cup Limited

           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.  This proposal is intended to help California attract the  

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          world's 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.


          MW:nl  9/12/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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