BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1578|
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THIRD READING
Bill No: AB 1578
Author: Assembly Governmental Organization Committee
Amended: 7/23/09 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 11-0, 7/8/09
AYES: Wright, Harman, Benoit, Calderon, Denham, Florez,
Negrete McLeod, Padilla, Price , Wyland, Yee
NO VOTE RECORDED: Oropeza, Wiggins
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0 (Consent), 5/14/09 - See last page
for vote
SUBJECT : Horse racing: thoroughbred racing:
California-bred bonus
program
SOURCE : California Thoroughbred Breeders Association
DIGEST : This bill requires the official thoroughbred
registering agency, the California Thoroughbred Breeders
Association, to distribute a specific portion of designated
funds annually for a California-bred bonus program.
Senate Floor Amendments of 7/23/09 (1) provide that the
Thoroughbred Owners of California will, pursuant to an
agreement reached with the California Thoroughbred Breeders
Association, provide matching funds from purses, not to
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AB 1578
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exceed $2 million per year, to fund Cal-bred incentive
awards, and (2) make a technical change to the existing
definition of "certain claiming races" to replace the
existing formula with an actual dollar amount, namely,
claiming races with a minimum claiming level of $40,000 in
the central and southern zones, and claiming racing with a
minimum claiming level of $20,000 in the northern zone.
ANALYSIS : Existing law provides that the California
Horse Racing Board (CHRB) 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, which is the California Thoroughbred
Breeders Association (CTBA), and requires the CTBA to
distribute a portion of those sums annually to the Cal-bred
race fund for the promotion of the Cal-bred races and for
purses for California Cup Day and other Cal-bred races, and
to the owner funds for owner premium, 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.
This bill:
1. Requires the CTBA to distribute a certain portion of
those sums annually to the Cal-bred bonus program, which
would be required to be administered by the CTBA, for
payment of bonuses to California-bred horses in maiden
allowance races in California.
2. Requires the Thoroughbred Owners of California (TOC),
pursuant to an agreement with CTBA, to provide matching
funds from purses to pay owner's bonuses for winning
maiden allowance races. Caps that the maximum amount
the TOC will pay in matching funds for the maiden
allowance bonus program at $2 million, annually.
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3. Makes technical and clarifying changes to the definition
of "certain claiming races" to replace the existing
formula with an actual dollar amount, namely, claiming
races with a minimum claiming level of $40,000 in the
central and southern zones, and claiming races with a
minimum claiming level of $20,000 in the northern zone.
Comments
According to the sponsor, the CTBA, the purpose of this
bill is to provide CTBA more discretion over existing
dollars allocated to restricted Cal-bred purses under
current law. The bill allows 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's office states that 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.
(Please refer to the Senate Governmental Organization
Committee analysis for further background information)
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 7/23/09)
California Thoroughbred Breeders Association (source)
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ASSEMBLY FLOOR :
AYES: Adams, Anderson, Arambula, Beall, Bill Berryhill,
Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuller, Furutani, Galgiani, Gilmore, Hagman, Hall,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Silva, Skinner,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Ammiano, Fuentes, Gaines, Garrick,
Saldana, Smyth, Bass
TSM:cm 8/19/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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