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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