BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 819| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 CONTINUED SB 819 Page 2 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. CONTINUED SB 819 Page 3 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 CONTINUED SB 819 Page 4 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 **** END **** CONTINUED