BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2414|
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THIRD READING
Bill No: AB 2414
Author: John A. Perez (D)
Amended: 8/17/10 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 6/29/10
AYES: Wright, Harman, Calderon, Florez, Negrete McLeod,
Padilla, Price, Yee
NO VOTE RECORDED: Denham, Oropeza, Wyland
SENATE APPROPRIATIONS COMMITTEE : 11-0, 8/12/10
AYES: Kehoe, Ashburn, Alquist, Corbett, Emmerson, Leno,
Price, Walters, Wolk, Wyland, Yee
ASSEMBLY FLOOR : 74-1, 6/1/10 - See last page for vote
SUBJECT : Horse racing: thoroughbred racing: Breeders
Cup: wagering
SOURCE : Author
DIGEST : This bill authorizes the thoroughbred racing
industry to use monies from horse racing wagering pools to
promote the Breeders Cup, in order that California might be
considered the permanent home of this championship series
of races.
ANALYSIS :
Existing law
CONTINUED
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1. Authorizes a thoroughbred association or fair, subject
to approval by California Horse Racing Board (CHRB), to
deduct from the pari-mutuel pool for any type of wager,
a specified percentage for the meeting of the
thoroughbred association or fair that accepts the wager.
2. Authorizes racing associations, fairs, and the
Thoroughbred Owners of California (TOC) to form a
private statewide marketing organization to market and
promote thoroughbred and fair horse racing. The
California Marketing Committee (CMC) is generally
responsible for promoting horse racing in the state by
developing and implementing a marketing plan that will
increase on-track and off-track attendance throughout
the state. The CMC is required to submit an annual
marketing and promotion plan to the CHRB. These
provisions sunset on January 1, 2011.
3. Provides for the California Travel & Tourism Commission
(CTTC). The CTTC is a not-for-profit, 501(C)(6)
corporation formed in 1998 to work jointly with the
State of California's Division of Tourism to implement
the annual Marketing Plan, which promotes California as
a travel destination. While these two partners (CTTC
and Division of Tourism) are separate legal entities,
they are commonly referred to jointly as California
Tourism.
This bill:
1. Makes various legislative findings relative to the
economic importance of the Breeders' Cup Championship
series and declares that it is not only the desire of
the Legislature to encourage the organization operating
this prestigious international event to make California
its permanent home but also the intent of the
Legislature to provide substantial support toward that
endeavor.
2. Allows a thoroughbred association hosting the Breeders'
Cup races, upon approval of the CHRB and with written
agreement of the thoroughbred association and the
horsemen's organization for the meeting of the
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thoroughbred association accepting the wager to deduct
from the total handle (wagering pools) during the days
when Breeders' Cup races are being run, an amount of not
less than 10 percent nor more than 25 percent.
3. Stipulates that the private, statewide marketing
organization formed pursuant to existing law to market
and promote thoroughbred and fair horse racing, shall
enter into an agreement, in consultation and cooperation
with the California Tourism Commission, with the
organization that operates the Breeders' Cup
Championship series to sponsor and promote the Breeders'
Cup Championship series of races.
4. Stipulates that the agreement must provide a minimum of
$2,000,000 annually in support of the organization
operating the Breeders' Cup Championship series and to
promote the Breeders' Cup Championship series.
5. Provides that the CHRB may require that a percentage of
the takeout (funds from horse racing wagering pools)
that is attributable to the Breeders' Cup races that
otherwise would not have been generated absent the
Breeders' Cup races be made available to support the
private horse racing marketing organization.
Comments
According to the author's office, this bill intends to
encourage the Breeders' Cup to consider locating its series
of championship races on a permanent basis in California.
The State of California is in competition with the states
of Kentucky and New York 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. The Breeders' Cup
Championship series of races were held in California in
2008 and 2009 and generated significant revenue and tourism
for the State.
The author's office notes 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
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racing industry in this state remains an important segment
of the economy, generating by some estimates almost 50,000
jobs. Locating the Breeders Cup on a permanent basis in
California would generate $60 million in economic output
and create over 500 direct and indirect jobs, according to
the Los Angeles Economic Development Corporation's estimate
in relation to the 2009 Breeders' Cup that was held at
Santa Anita racetrack.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee analysis:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12
2012-13 Fund
Marketing program-----------$2,000 annually------------
Special*
Admin expenses
------------------minor---------------- General
*California Marketing Committee Fund
SUPPORT : (Verified 8/17/10)
California Horse Racing Board
California-Nevada Conference of Operating Engineers
California Teamsters Public Affairs Council
Del Mar Thoroughbred Club
Golden Gate Fields Racetrack
Fairplex: Los Angeles County Fair
Oak Tree Racing Association
Santa Anita Racetrack
The Jockeys' Guild
UNITE-HERE
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill
Berryhill, Blakeslee, Block, Blumenfield, Bradford,
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Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Emmerson, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,
Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, V. Manuel Perez, Portantino, Ruskin,
Salas, Saldana, Silva, Skinner, Smyth, Solorio, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, John A. Perez
NOES: Norby
NO VOTE RECORDED: Tom Berryhill, Eng, Audra Strickland,
Yamada, Vacancy
TSM:do 8/17/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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