BILL ANALYSIS
Bill No: AB
1578
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 1578 Author: Committee on Governmental Organization
As Introduced: March 23, 2009
Hearing Date: July 8, 2009
Consultant: Chris Lindstrom
SUBJECT
Horse racing: thoroughbred racing: California-bred bonus
program.
DESCRIPTION
AB 1578 permits the official thoroughbred registering
agency, the California Thoroughbred Breeders Association
(CTBA), to distribute a specific portion of designated
funds annually for a California-bred (Cal-bred) bonus
program.
Specifically, the bill permits the official registering
agency to distribute a certain portion of those sums
annually to the Cal-bred bonus program, which would be
required to be administered by the official registering
agency, for payment of bonuses to California-bred horses in
maiden allowance races in California.
EXISTING LAW
Existing law provides that the California Horse Racing
Board regulate the various forms of horse racing authorized
in this state.
Existing law requires any association conducting a race
meeting that includes thoroughbred racing to deposit
certain sums with the official registering agency for
thoroughbreds, CTBA, and requires CTBA to distribute a
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portion of those sums annually to the Cal-bred race fund
for the promotion of Cal-bred races and for purses for
California Cup Day and other Cal-bred races, and to the
owner fund for owner premiums, as provided.
Existing law provides that a "California-sired horse" is a
thoroughbred that was conceived in California by a
registered California stallion. A California-sired horse
is only eligible for entry in races restricted to
California-bred or California-sired horses and is not
eligible for any breeder or owner awards.
BACKGROUND
Purpose of the bill. According to the sponsor, CTBA, the
purpose of this bill is to provide CTBA more discretion
over existing dollars allocated to restricted Cal-bred
purses under current law. AB 1578 would allow CTBA to
shift a portion of existing dollars to help fund the
payment of bonuses to Cal-bred horses in maiden allowance
races in California. In essence, when a Cal-bred horse
wins its first career race, the owner of that horse will
receive an amount in addition to the stated purse if the
race meets a specific race classification.
The goal of this bill is to further increase the value of
Cal-breds and provide ample return and opportunities for
those breeding and/or purchasing yearlings or horses of
racing age. According to CTBA, the owner of a registered
Cal-bred maiden will be paid a $20,000 owner's bonus for
winning a maiden allowance race in Southern California and
a $10,000 owner's bonus for winning a maiden allowance race
in Northern California.
The author states this bill will assist in building larger
inventory of horses to fill Cal-bred races. It provides an
incentive to breed registered California stallions for
racing and breeding in California, which will benefit both
California racing and agriculture.
Background. In California, there are designated racing
opportunities for California-bred horses . Racetracks in
California are required by law to offer one race per day,
which is restricted to Cal-breds. Last year this amounted
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to 327 additional racing opportunities and over $15 million
in additional purses for Cal-breds.
In addition, the California Legislature has declared its
intent that at least 10 percent of the total stakes purses
paid at any race meeting in California be paid on stakes
races restricted to registered Cal-breds. This amounted to
over $5.4 million in 2008.
In addition, in 2008, California Cup XX was held at Santa
Anita Park during the Oak Tree Racing Association meeting
on Saturday, October 3. Total purses for this special
10-race stakes program exclusively for Cal-breds was $1.325
million. Part of the funding for California Cup XX came
from the incentive award category, the California-bred Race
Fund. Ten percent of the total incentive award monies were
used for this category, with the monies funding the
promotion of Cal-bred races, the supplement of purses for
Cal-bred races and the creation of new Cal-bred stakes.
What is a California-bred (Cal-bred) horse ? The definition
of a Cal-bred is as follows: A Cal-bred thoroughbred is a
horse dropped in California after being conceived in
California, or any thoroughbred foal dropped by a mare in
California if the mare remains in California to be next
bred to a thoroughbred stallion standing in the state. If
the mare cannot be bred for two successive seasons, but
remains in California during that period, her foal will be
considered a Cal-bred.
Breeders Awards . A breeder's award is a monetary award
which is paid to the breeder of a registered Cal-bred
thoroughbred finishing first, second or third in any race
run in California and any graded stakes races conducted
within the United States.
Owners Awards . An owner's award is a monetary award that
is paid to the owner of a registered Cal-bred thoroughbred
horse that runs in qualifying races in California.
Stallion Awards . In order to stimulate the acquisition in
California of nationally prominent stallions, and retain
high caliber California stallions, monetary awards are paid
annually to the owners of registered California stallions
whose California conceived or Cal-bred offspring have won a
qualifying race or have finished first, second, or third in
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continuedPage 4
a stakes race in the state or any graded stakes race within
the United States during the year.
PRIOR/RELATED LEGISLATION
AB 3073 (Governmental Organization Committee), Chapter 509,
Statutes of 2008 . Allows California-sired horses to be
included within the special races designated for
California-bred horses, as specified.
SB 1465 (Costa), Chapter 145, Statutes of 2002 . Authorizes
CTBA to shift funds from the Cal-bred Stakes Fund to a new
pool to support the "Sunshine Millions" series of stakes
races featuring California and Florida-bred horses.
SB 20 (Maddy), Chapter 2, Statutes of 1997 . Clarified and
redefined purses, breeder awards, owner premiums and
stallion awards for Cal-bred horses.
SB 1373 (Maddy), Chapter 393, Statutes of 1996 . Provides
that a Cal-bred winner of a qualifying race will earn
either a 10 or 20% bonus depending on whether the horse was
conceived by a registered thoroughbred stallion.
SUPPORT: As of July 6, 2008.
California Thoroughbred Breeders Association
OPPOSE: None on file as of July 6, 2009.
FISCAL COMMITTEE: No.
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