BILL ANALYSIS
AB 1578
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CONCURRENCE IN SENATE AMENDMENTS
AB 1578 (Governmental Organization Committee)
As Amended July 23, 2009
Majority vote
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|ASSEMBLY: |73-0 |(May 14, 2009) |SENATE: |38-0 |(August 27, |
| | | | | |2009) |
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Original Committee Reference: G.O.
SUMMARY : Permits the official Thoroughbred registering agency
to distribute a specific portion of designed funds annually for
a California-bred bonus program. Specifically, this bill :
1)Permits the official registering agency to also distribute a
certain portion of those sums annually to the California-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.
2)Defines "certain claiming races" to mean Thoroughbred races in
the central and southern zone with a minimum claiming level of
$40,000 and Thoroughbred races in the northern zone with a
minimum claiming level of $20,000.
3)Requires the organization responsible for negotiating purse
agreements on behalf of Thoroughbred horsemen participating in
racing meetings to pay, from purse revenues generated, to the
California Thoroughbred Breeders Association (CTBA), for the
purpose of the California-bred bonus program for Cal-bred
horses in maiden allowance races, an amount not to exceed $2
million.
The Senate amendments :
1)Require the organization responsible for negotiating purse
agreements on behalf of Thoroughbred horsemen participating in
racing meetings to pay, from purse revenues generated, to the
official registering agency for the purpose of the
California-bred bonus program the same amount as the official
registering agency, not to exceed $2 million annually, as
specified.
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2)Define "certain claiming races" to mean thoroughbred races in
the central and southern zone with a minimum claiming level of
$40,000 and Thoroughbred races in the northern zone with a
minimum claiming level of $20,000.
EXISTING LAW :
1)Provides that the California Horse Racing Board regulate the
various forms of horse racing authorized in this state.
2)Requires any association conducting a race meeting that
includes Thoroughbred racing to deposit certain sums with the
official registering agency for Thoroughbred horses, and
requires that official registering agency to distribute a
portion of those sums annually to the California-bred race
fund for the promotion of California-bred races and for purses
for California Cup Day and other California-bred races, and to
the owner fund for owner premiums, as provided.
3)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.
AS PASSED BY THE ASSEMBLY , this bill permitted the official
Thoroughbred registering agency, the CTBA, to
distribute a specific portion of designated funds annually for a
California-bred (Cal-bred) bonus program.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . The author is carrying this bill on
behalf of CTBA. According to the sponsor, the purpose of this
bill is to allow the CTBA more discretion over existing dollars
allocated to restricted Cal-bred purses under current law. AB
1578 would allow the CTBA to shift a portion of existing dollars
to help fund the payment of bonuses to California-bred horses in
maiden allowance races in California. In essence, when a
California-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.
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The goal of this bill is to further increase the value of
California-breds and provide ample return and opportunities for
those breeding and/or purchasing yearlings or horses of racing
age. According to the CTBA, the owner of a registered
California-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 California-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 designed racing opportunities for
California-bred horses . Racetracks in California are required
by law to offer one race per day, which is restricted to
California-breds. Last year this amounted to 327 additional
racing opportunities and over $15 million in additional purses
for California-breds.
In addition, the California Legislature has declared its intent
that at least 10% of the total stakes purses paid at any race
meeting in California be paid on stakes races restricted to
registered California-breds. This amounted to over $5.4 million
in 2008.
In addition, in 2009, 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 California-bred races, the
supplement of purses for California-bred races and the creation
of new California-bred stakes.
What is a California-bred horse ? The definition of a
California-bred is as follows: A California-bred Thoroughbred
is a horse dropped in California after being conceived in
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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
California-bred.
Breeders Awards . A monetary award which is paid to the breeder
of a registered California-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 . A monetary award that is paid to the owner of a
registered California-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 California-bred get have won a
qualifying race or have finished first, second, or third in a
stakes race in the state or any graded stakes race within the
United States during the year.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0002367