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Home My WebLink AboutItem 2c: Discussion & Direction about CA Horse Racing Board's decision about Oak Tree Racing Association and related issues at Santa Anita Race TrackSTAFF REPORT Development Services Department DATE: September 21, 2010 TO: Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director SUBJECT: REPORT, DISCUSSION, AND DIRECTION REGARDING RECENT DECISIONS BY THE CALIFORNIA HORSE RACING BOARD REGARDING THE OAK TREE RACING ASSOCIATION AND RELATED ISSUES AT SANTA ANITA RACE TRACK. Recommendation: Provide Direction SUMMARY At the August 19, 2010 meeting of the California Horse Racing Board (CHRB), the Board denied an application by Oak Tree Racing Association to run the Oak Tree racing meet at Santa Anita Park. This action officially ended a 41 year history of the Oak Tree meet being held in Arcadia. The decision followed a series of previous actions and statements made by the CHRB, the owner of Santa Anita Park (MI Developments or MID), and the Oak Tree Racing Association as to where the Oak Tree dates would be run. It now appears clear that the 2010 Oak Tree Race meeting will be held at Hollywood Park with the potential of future years being held at either Hollywood Park or Del Mar. There are significant short and long term impacts to the City or Arcadia from this decision. In a related issue, MID has appeared several times in front of the CHRB requesting "deregulation" of the horse racing industry in California and more flexibility in how race dates are allocated and run in the State. The owner has also declared that a new dirt racing surface will be installed at Santa Anita in the near future, ending three tumultuous years with the current synthetic racing surface that was mandated in 2006 by the CHRB. Finally, MID has submitted an application to the CHRB for additional race dates to be run whenever the owner wants to run them. In light of all of these events, this report suggests that the City Council weigh in on the situation by sending a letter to the CHRB regarding the future of racing at Santa Anita Park. BACKGROUND The Oak Tree Racing Association has held a fall racing meeting at Santa Anita Park for the last 41 years. This meet is one of the most prestigious horse racing meets in the country and Oak Tree has hosted the Breeders' Cup five times during their tenure at Santa Anita. According to Oak Tree's own materials, the Association is a not - for - profit, non - dividend paying group of California owners and breeders whose directors serve without compensation as Members of the Corporation. Over time, it has had a lease agreement with Los Angeles Turf Club, operator of Santa Anita Park. Oak Tree has long been known for its support of local and regional charities. According to the website, "during its 41 years of dedication to the cause of "Horsemen Helping Horsemen," Oak Tree has contributed more than $26 million to projects benefiting the racing industry". Some of the local community organizations benefiting from Oak Tree grants include American Red Cross Disaster Relief Fund, Arcadia Mounted Police Unit, California Philharmonic, Fairplex Child Development Foundation, Hillsides Home for Children, Holy Angels School, Methodist Hospital Foundation and Panda Charitable Foundation. In March of 2009, the owner of Santa Anita Race Track, Frank Stronach and Magna Entertainment Corporation (MEC), declared bankruptcy. After a long bidding and evaluation process, a newly formed entity headed by Stronach, MI Developments (MID), became the owner of the track in April of 2010. Shortly thereafter, MID announced that it had voided the existing leases of the Oak Tree Racing Association and Caruso Affiliated, who had been a partner with MEC in the Shops at Santa Anita project. Reacting to this, the City Council sent a letter to Mr. Stronach outlining the City's concerns with these actions. The decision by MID set in motion the following series of actions by the CHRB, MID, and Oak Tree: • May 22 — The CHRB, reacting to the voided lease, awards Oak Tree's race dates to Oak Tree (not Santa Anita) and allows them to negotiate with other southern California tracks to run their meet. Oak Tree negotiates with Hollywood Park and Del Mar and appears to have a deal with Hollywood Park. • June 22 — The CHRB hears nearly 5 hours of testimony from Mr. Stronach and many others on Stronach's "plans for horse racing ". At the end of the meeting, Stronach agrees to let Oak Tree run their dates at Santa Anita "for one more year" and the CHRB agrees. Stronach also says that Santa Anita will install a new racing surface after April 2011. • August 18 — Stronach tells a group of horse owners and trainers that MID will install a dirt racing surface and that it will be installed before the end of 2010. • August 19 — The CHRB rejects Oak Tree's application to run dates at Santa Anita, citing disagreements between owners and trainers as to the safety of the racetrack based on comments made by a track expert. This is despite the fact that the equine medical director for the CHRB, Dr. Rick Arthur, and track maintenance supervisor Rich Tedesco testified that the track is fine and will be CHRB and Oak Tree September 21, 2010 — Page 2 ready for Oak Tree and statistics that show the recently concluded meet was the safest meet in California in the last year. As a result, Oak Tree begins negotiations again with Hollywood Park to run their 2010 dates. It is perplexing that concerns over the Santa Anita racing surface would be raised so close to a time when a decision on the Oak Tree meet was imminent. The Santa Anita regular meet ended on April 18, and if there were concerns why were they not addressed by the CHRB at that time? • September 3 — An announcement is made by Oak Tree that they have a deal to run their dates in both 2010 and 2011 at Hollywood Park (the CHRB has yet to approve the 2011 race dates). DISCUSSION The CHRB is made up of seven (7) individuals appointed directly by the Governor. The charge of the CHRB is to develop rules and regulations for the protection of the public related to horse racing and parimutuel wagering. This includes reviewing health and safety of all aspects of racing related to horses, jockeys, and track workers. The CHRB also can adjudicate problems that arise and they are responsible for the licensing of all racing associations and those participating in a horse race meeting. Finally, the CHRB is tasked with allocating racing dates throughout the State based on State laws limiting how those dates are divided. Attachment A to this staff report includes a list of the current CHRB members as well as selections of the relevant State law that governs their work. Section 19420 -19447 of the Business and Professions Code provides general administration and enforcement regulations and Section 19530 -19535 covers racing days and weeks (see attachment). The recent action of the CHRB and the uncertainty of the future home of Oak Tree have significant ramifications for the City of Arcadia. These ramifications are not only direct financial impacts to the City this year, but they include long term financial implications as well as land use ramifications that call into question the ability of Santa Anita to continue operations in the future. It is estimated that the loss of Oak Tree in 2010 will lead to a direct loss of approximately $185,000 to the City as a result of the City's lost share of on -track handle. Revenue from concessions and other sales may equate to another $20,000 or $30,000. Much more significant, however, is the impact to many small businesses, restaurants and hotels that rely on the racetrack for much of their revenue. These impacts are difficult to quantify but it is clear from discussions with hotel managers and restaurant managers that the impacts could be grave. These numbers and this discussion do not include the Breeders' Cup, which has been held at Santa Anita Park five times, including the last two years in 2008 and 2009. Santa Anita remains the best venue on the west coast to hold such a wonderful event in terms of its history, its capacity, the weather, and its setting. City staff has worked diligently to ensure that the attendees' experience has been second to none at these events. The Breeders' Cup is a wonderful way to show off the City, the region and the State to the sports world. CHRB and Oak Tree September 21, 2010 — Page 3 There is no question that racing at Santa Anita, and throughout the State, has seen its economic impact lessen significantly. In some of racing's best years in the late 1980's the revenue to the City of Arcadia from handle was more than $2.3 million per year. The City's economic consultant has run a present value analysis on this revenue and, for example, in the 1987 -1988 fiscal year, revenue from Santa Anita was $2.35 million which represents a present value in 2009 dollars of $4.26 million. For purposes of comparison, the 2009 -2010 fiscal year revenue is approximately $900,000. Much of this loss in revenue can be attributed to off -track wagering and computer -based wagering and some must be attributed to a loss of interest in the sport. Compounding this loss of financial viability, the value of Santa Anita Park became more clear through the recent MEC bankruptcy. The majority of the bidders that emerged through this process were developers. The 304 acre Santa Anita property is one of the most valuable parcels in the Los Angeles region. This value is clearly not driven by its potential as a horse racing track. Bidders asked many questions about land uses that would be permitted and /or desired by the City. The answer from City staff was always consistent: that the City remains committed to horse racing and wants to see Santa Anita continue to operate as a horse racing venue but that the City understands that some development is needed to keep the racing operations solvent. The City's General Plan is clear on this point; horse racing should remain on the majority of the site with the southern 85 acres devoted to a commercial entertainment use that can be synergistic with the racetrack. To this end, the City approved the Shops at Santa Anita project in 2007 which has been tied up in litigation ever since. Without this development, and without the race days that Oak Tree provided, this parcel becomes less and less able to support horse racing alone. Although the City has disagreed with many of the recent decisions of MID, including the voiding of the leases with Oak Tree and the Shops at Santa Anita, it must be viewed as a positive thing that MID has committed to spending more than $6 million to install a new dirt surface at the track and is interested in establishing creative bets and other methods to attract patrons and handle. Further, MID has submitted an application to the CHRB to receive 140 days of racing over the calendar year, with no restrictions as to when those dates can be run. Some of the MID proposals, particularly the allocation of additional race dates, will require changes in State legislation. While the City understands a truly competitive model of allowing racetracks to run simultaneous dates is likely not practical based on the availability of horses, it also seems apparent that the current model of restricting the owner of Santa Anita from racing for only four months a year is obsolete, and offers very little incentive to continue horse racing at Santa Anita. It is important that the CHRB understand that having no racing at Santa Anita from April until the end of December is not good for the City, the region, or the sport. There are simply not many individuals or owners willing and able to make active financial contributions to the sport right now. The owners of Hollywood Park have an approved project to redevelop the Inglewood site. They are essentially holding the rest of the industry in the State in limbo by not moving forward with this project due to the poor CHRB and Oak Tree September 21, 2010 — Page 4 economy. Viable race tracks such as Del Mar and Santa Anita cannot plan ahead with this uncertainty lingering. If the dates associated with Oak Tree are provided to another track over the long term, and no dates are reallocated to Santa Anita, the crown jewel of racing in the State may not be able to continue over time. To this end, the staff suggests drafting a letter to the CHRB outlining these concerns and requesting collective and cooperative action moving forward. A draft copy of such a letter is included as Attachment B. FISCAL IMPACT Not applicable. RECOMMENDATION Provide direction. APPROVED: J7o - t..Q -PcM.r,.aJ Attachment A: Attachment B: Donald Penman, City Manager California Horse Racing Board members and relevant laws Draft letter to California Horse Racing Board related to race dates CHRB and Oak Tree September 21, 2010 — Page 5 1.a111unna nurse 1CAC111g 13udru - rivaru 01 1/1rel:t0r5 California Home ATTACHMENT A C�h�P�14R1'iia Horse Racing Board 10 10109ffl9rWy ite 300, (Sacramento, California 95825 Indus o, (g tecis 63 -600 Fax: (916) 263 -6042 Board of Direct P Calendars Board Members Board Meeting p Statisticallnfortaaard of Directors Publications Horse Racing Law Horse Racing Rules License Search Administra. Hearings Compints & Accusat Stewards' Minutes Job Opportunities Download Forms Comments to CHRB Webcasts Public Records Act 1 Keith Brackpool - Chairman 1010 Hurley Way, Suite 300 Sacramento, CA 95825 Phone (916) 263 -6000, Fax (916) 263 -6042 e -mail: KBrackpool@gmail.com Slate of California r agc I 1.11"P Monday, September 13. 2010 Search t: California Horse. Racing Board http://chrb.ca.gov/board_members.htm 9/13/2010 California Horse Racing Board - Board of Directors rage L oI 4 David Israel - Vice Chairman 9507 Santa Monica Blvd., Suite 212 Beverly Hills, CA 90210 Phone (916) 263 -6000 disraelchrb @yahoo.com Jerome S. Moss - Member 421 N. Beverly Drive, Suite 260 Beverly Hills, CA 90210 Phone (310) 271 -8866, Fax (310) 271 -2288 Bo Derek - Member 1010 Hurley Way, Suite 300 Sacramento, CA 95825 Phone (916) 263 -6000, Fax. (916) 263 -6042 http: / /chrb.ca.gov/board_members.htm 9/13/2010 Laiilorrna norse tcacing mare - tsoara or 1Jlreclors John C. Harris - Member Harris Farms 23300 West Oakland Avenue Coalinga, CA 93210 Phone (559) 884 -2477, Fax (559) 884 -2267 ]ohnHarris ©HarrisFarms.com Jesse H. Choper - Member University of California School of Law - Boalt Hall Berkeley, CA 94720 Phone (510) 642 -0339, Fax (510) 643 -2673 e -mail: ichoDer ©law.berkeley.edu rage J 01 4 4 http://chrb.ca.gov/board_members.htm 9/13/2010 U111U1111Q JIUI 1\QG111g DUt11LL - DUdIU Lit 1111 G1:W1J http://chrb.ca.gov/board_members.htm Richard A. Rosenberg - Member 1010 Hurley Way, Suite 300 Sacramento, CA 95825 Phone (916) 263 -6000, Fax (916) 263 -6042 e -mail: rosenberaltd@ yahoo.com EXECUTIVE OFFICE Kirk E. Breed - Executive Director 1010 Hurley Way, Suite 300 Sacramento, CA 95825 Phone (916) 263 -6000, Fax (916) 263 -6042 e -mail: KEBreedAchrb.ca.gov CHRB Home I CHRB Search I Return to Top I Conditions of Use I Privacy Policy Page Last Updated : 6/8/2010 9:58:45 AM Send Comments or Questions to : Webmaster 9/13/2010 LA Lodes (bpc:1942U -1944 /) rage 1 of o BUSINESS AND PROFESSIONS CODE SECTION 19420 -19447 19420. Jurisdiction and supervision over meetings in this State where horse races with wagering on their results are held or conducted, and over all persons or things having to do with the operation of such meetings, is vested in the California Horse Racing Board. 19421. The board consists of seven members, appointed by the Governor. Each member shall hold office for a term of four years, commencing at the expiration of the previous term. The term of the members of the board in office on January 1, 1959, shall expire as follows: one member July 26, 1959, one member July 26, 1960, and one member July 26, 1961. The terms shall expire in the same relative order as to each member as the term for which he holds office on January 1, 1959. The term of the members appointed pursuant to amendments made to this section during the 1977 -1978 legislative session shall expire as follows: one on January 1, 1979 and one on January 1, 1982. The term of the members appointed pursuant to amendments made to this section during the 1979 -80 Regular Session of the Legislature shall expire as follows: one on January 1, 1982, and one on January 1, 1984. Any vacancy shall be filled by the Governor for the unexpired term. Each member shall be eligible for reappointment in the discretion of the Governor. 19422. Each member of the board shall have been a resident of this State for two years next preceding his appointment. 19423. A person is disqualified from membership on the board if the person, the person's spouse or any dependent child thereof: (a) Holds a financial interest in any horse racing track. (b) Holds a financial interest or position of management with any business entity which conducts parimutuel horse racing. (c) Holds a financial interest in a management or concession contract with any business entity which conducts parimutuel horse racing. 19424. No board member is disqualified from receiving a share of any purse awarded him as the result of any horse race as an owner of a horse or as a breeder of a California -bred horse. 19424.5. In order to permit the full participation of horsemen and http: / /www.leginfo .ca.gov /cgi- bin/displaycode? section =bpc &group= 19001- 20000 &file =1... 8/30/2010 l A Loxes (bpc:1942U -1 944 /) horsewomen who may be appointed to the board, the Legislature declares that the appointment of such persons is intended to represent and further the interests of horse owners and breeders pursuant to Section 19401, and that such representation and furtherance will ultimately serve the public interest. Accordingly the Legislature finds racehorse owners and breeders are tantamount to and constitute the public generally within the meaning of Section 87103 of the Government Code. 19425. The members of the board shall receive a per diem of one hundred dollars ($100) for each day spent in attendance at meetings scheduled by the chairperson of the board for the purpose of fulfilling the duties of the board pursuant to this chapter, and shall be reimbursed for traveling and other expenses necessarily incurred in the performance of official duties. Notwithstanding any other provision of law, any member of the board who is also a member of, and is entitled to receive the benefits from, the Legislators' Retirement System may elect to forego the compensation provided by this section and, if the compensation is foregone, the member shall not have his or her retirement benefits reduced and shall not be required to be reinstated into the retirement system. 19426. The Governor may remove any board member for incompetence, neglect of duty or corruption upon first giving him a copy of the charges against him and an opportunity to be heard. 19427. The board shall appoint such employees as may be necessary to carry out the provisions of this chapter. 19428. The board shall appoint an executive director who shall receive the annual salary established by the board and approved by the Department of Personnel Administration. The executive director shall be the board's executive officer and shall carry out and execute the duties as specified by law and by the board. 19429. A person is disqualified from employment by the board if the person, the person's spouse, or any dependent child thereof: (a) Holds a financial interest in a horserace track. (b) Holds a financial interest or position of management with an entity that conducts parimutuel horseracing. (c) Holds a financial interest in a management or concession contract with a business entity that conducts parimutuel horseracing. 19430. The salaries of the executive director, and other employees of the board, the per diem allowance of members of the board, and the necessary traveling and other expenses of the executive director and members of the board, shall be paid monthly by the Treasurer on the warrant of the Controller and the certification of the chairperson of the board out of the money appropriated for that purpose. rage . uio http: / /www.leginfo. ca. gov /cgi- bin/displaycode ?section =bpc &group = 19001- 20000 &file =1... 8/30/2010 CA Codes (bpc:19420- 1944'/) ?age 3 01 b 19431. The board shall establish and maintain a general office for the transaction of its business in Sacramento. The board may establish any branch office for the transaction of its business at a place to be determined by it, and may hold meetings at any other place within the state when the interests of the public may be better served. A public record of every vote shall be maintained at the board's general office. At least four members of the board shall concur in the taking of any official action or in the exercise of any of the board's duties, powers, or functions. 19432. The executive director shall keep a full and true record of all proceedings of the board, preserve at the board's general office all books, documents, and papers of the board, prepare for service such notices and other papers as may be required of him or her by the board, and perform such other duties as the board may prescribe. 19433. The board may visit, investigate, and place expert accountants and such other persons as it may deem necessary in the office, track, or other place of business of any licensee for the purpose of satisfying itself that its rules and regulations are strictly complied with. 19434. The board may require that the books and financial or other statements of any person licensed under this chapter shall be kept in any manner which to the board may seem best. 19435. The board, its executive director, or the stewards, may issue subpoenas for the attendance of witnesses or the production of any records, books, memoranda, documents, or other papers or things, as is necessary to enable any of them to effectually discharge their duties, and may administer oaths or affirmations as necessary in connection therewith. 19436. Any person subpoenaed who fails to appear at the time and place specified in answer to the subpoena and to bring any papers or things specified in the subpoena, or who upon such appearance, refuses to testify, or produce such records or things, is guilty of a misdemeanor. 19437. Any person who testifies falsely under oath in any proceeding before, or any investigation by the board, its executive http: / /www.leginfo. ca. gov /cgi- bin/displaycode? section =bpc &group= 19001- 20000 &file =1... 8/30/2010 CA Codes (bpc:1942U -1944 /) Page 4 of 6 director, or the stewards, is guilty of a felony and shall be punished in the same manner prescribed by the Penal Code for the punishment of perjury. 19439. In lieu of requiring an affidavit or other sworn statement in any application or other paper or document required to be filed with it, the board may require a certification thereof under the penalty of perjury, in such form as the board may prescribe. Any person who willfully makes and subscribes any such certificate which is materially false in any particular is guilty of a felony, and shall be punished in the manner prescribed by the Penal Code for the punishment of perjury. 19440. (a) The board shall have all powers necessary and proper to enable it to carry out fully and effectually the purposes of this chapter. Responsibilities of the board shall include, but not be limited to, all of the following: (1) Adopting rules and regulations for the protection of the public and the control of horse racing and parimutuel wagering. (2) Administration and enforcement of all laws, rules, and regulations affecting horse racing and parimutuel wagering. (3) Adjudication of controversies arising from the enforcement of those laws and regulations dealing with horse racing and parimutuel wagering. (4) Licensing of each racing association and all persons, other than the public at large, who participate in a horse racing meeting with parimutuel wagering. (5) Allocation of racing dates to qualified associations in accordance with law. (b) The board may delegate to stewards appointed pursuant to Article 5 (commencing with Section 19510) any of its powers and duties that are necessary to carry out fully and effectuate the purposes of this chapter. 19440.5. An annual audit shall be conducted of the financial books and records of the horsemen's organizations, including any subsidiaries of the horsemen's organizations, by a nationally recognized accounting firm as follows: (a) With respect to pension funds received by those organizations pursuant to Sections 19533, 19613, and 19613.1, the audit shall be conducted within 90 days of the close of the fund's business year. The audit shall cover the period of time since the last audit, and a copy thereof shall be filed with the board, and the Senate and Assembly Committees on Governmental Organization. (b) With respect to administrative funds and welfare funds received pursuant to Sections 19533, 19606.5, 19613, and 19641, the audit shall be conducted within 90 days of the close of the fund's business year. The audit shall cover the period of time since the last audit, and a copy thereof shall be filed with the board, and the Senate and Assembly Committees on Governmental Organization. (c) The horsemen's organizations shall bear the cost of the audit. http: / /www.leginfo.ca. gov /cgi- bin/displaycode? section =bpc &group = 19001- 20000 &file =1... 8/30/2010 LA Uoaes (bpc:1942U- 1944 19441. The board shall annually make a full report to the Governor and the Legislature of its proceedings and the state of the business of horse racing for the preceding fiscal year, on or before January 31, and shall embody therein any recommendations deemed needed for improved functioning of the horse racing laws. 19441.2. In its annual report required under Section 19441, the board shall include a tabulation of injuries, fatalities, and comparative accident rates for all racing and training venues within its jurisdiction. The report shall also include recommendations concerning the worker safety impacts of improvements in racetrack design, jockey equipment, racing procedures, and track and facility maintenance. 19442.2. The board shall, if possible, designate at least one steward at each track where a horse racing meeting is conducted who is a former jockey or at least one steward at each track where a harness meeting is conducted who is a former driver. 19443. The Attorney General and every district attorney shall enforce this chapter in their capacities as law enforcement officers. 19444. In performing its responsibilities pursuant to this chapter, the board may do the following: (a) Pay membership fees, join, and participate in the affairs of associations having for their purpose the interchange of information relating to racing law enforcement, the licensing of horse racing participants, the registration of race horses, and subjects relating to the duties of the board. (b) Tabulate, analyze, and publish statistical information based upon parimutuel handles, attendance, distribution of parimutuel proceeds among fees, commissions, purses, and awards, and upon the breeding and production of race horses or other information relating to parimutuel wagering. (c) Conduct research to determine more fully the cause and prevention of horse racing accidents, the effects of drug substances on the race horses, and the means for detection of foreign drug substances. 19446.1. Notwithstanding any other provision of law, a veterinarian shall not administer medications to any horse entered in the same race in which a horse is entered which he or she owns or trains. In addition to any penalty provided for by this chapter or any other law, a violation of this section by any licensed veterinarian shall be grounds for denial, revocation, or suspension of a license or imposition of a fine pursuant to Section 4883 and the veterinarian shall be subject to disciplinary action pursuant to Article 4 (commencing with Section 4875) of Chapter 11 of Division 2. r age Juio http: / /www.leginfo .ca.gov /cgi- bin/displaycode? section =bpc &group = 19001- 20000 &file =1... 8/30/2010 l✓ ✓V - ll✓'TV BUSINESS AND PROFESSIONS CODE SECTION 19530 -19540 19530. The board shall have the authority to allocate racing weeks to an applicant or applicants pursuant to the provisions of this article and Article 6.5 (commencing with Section 19540) and to specify such racing days, dates, and hours for horse racing meetings as will be in the public interest, and will subserve the purposes of this chapter. The decision of the board as to such racing days, dates, and hours shall be subject to change, limitation or restriction only by the board. No municipality or county shall adopt or enforce any ordinance or regulation which has or may have the effect of directly or indirectly regulating, limiting or restricting the racing days and dates of horse racing meetings. 19530.5. For the purposes of this article there shall be three geographical zones which shall be designated (a) the "southern zone," which shall consist of the Counties of Imperial, Orange, Riverside, and San Diego; (b) the "central zone," which shall consist of the Counties of Kern, Los Angeles, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura; and (c) the "northern zone," which shall consist of the remaining counties in the state. 19531. The board shall make allocations of racing weeks, including simultaneous racing between zones, as it deems appropriate. The maximum number of racing weeks that may be allocated for horse racing other than at fairs, shall be as follows: (a) For thoroughbred racing: 44 weeks per year in the northern zone; 42 weeks per year in the central zone; and seven weeks per year in the southern zone. (b) For harness racing: 25 weeks per year in the northern zone. (c) For quarter horse racing: 25 weeks per year in the northern zone. (d) For harness racing and quarter horse racing: a total of 77 weeks per year in the combined central and southern zones. (e) In its written application for a license, an applicant shall state the time of day, consistent with this chapter, during which it will conduct its racing meeting, and particularly the first race starting time for the various racing days. After receiving a license, a licensee shall not change the first race starting time without securing prior approval of the board. (f) Notwithstanding this section or any other provision in this chapter, the board shall not allocate dates to a thoroughbred association in the central zone for the purpose of conducting racing during daytime hours if a thoroughbred racing association is conducting racing in the southern zone on the same date during daytime hours. 19531.1. Notwithstanding any other provision of law, the board shall not allocate racing dates to a private thoroughbred racing http: / /www. leginfo. c a. gov /cgi- bin/di sp layc ode? section =bpc &group = 19001- 20000& fi le =1... 8/30/2010 VC1 I.VLLVJ 17JJ V"17J''V) association in the central or southern zone for the purpose of conducting thoroughbred racing during daytime or nighttime hours if a fair racing association is conducting racing in the central zone on the same dates and if that fair is obligated to make payments on a capital expense loan incurred for the purpose of improving its facilities for horse racing. 19532. (a) Any association licensed to conduct thoroughbred racing in h northern zone may receive no more than 35 weeks of that racing. (b) Any association licensed to conduct thoroughbred racing in the entral zone may receive no more than 17 weeks of that racing, except that any association which conducts a split meeting may receive up to 20 weeks of that racing. No more than one such split meeting may be licensed in any one year. (c) This section and Section 19531 shall not operate to deprive any association of any weeks of racing granted during 1980. (d) This section and Section 19531 shall not operate to deprive the California State Fair and Exposition of any weeks of racing granted during the previous calendar year, and the board may continue to allocate those weeks of racing to the California Exposition and State Fair or any lessee thereof. (e) Nothing in subdivision (d) is a limitation on the board allocating racing weeks to any private racing association as a lessee of the California Exposition and State Fair racetrack facility pursuant to Sections 19531 and 19532. 19532.1. (a) Notwithstanding any other provision of law, excluding venues under construction for the purpose of expanded year -round stabling and training for thoroughbred race horses, if a venue used for thoroughbred racing by an association or racing fair licensed to conduct thoroughbred racing in the central zone in 2008 is not available for racing in 2009 or thereafter, the dates formerly allocated to that venue shall be available for allocation by the board to licensed associations or racing fairs in the southern or central zone. (b) Upon allocation of dates pursuant to this section, no association or racing fair licensed to conduct thoroughbred racing in the southern or central zones may receive more than 25 weeks of thoroughbred racing when aggregated among the combined southern and central zones. (c) Notwithstanding subdivisions (a) and (b), the aggregate allocation of racing weeks conducted in the southern and central zones shall not exceed the total aggregate racing weeks permitted to be run in the southern and central zones by Section 19531. 19532.2. Notwithstanding any other provision of law, commencing July 1, 2010, if a racetrack located in the central zone is not available for use by a thoroughbred association that was licensed by the board to conduct a live race meet at that racetrack in 2009, the board shall be authorized to allocate racing dates to that association to be operated at a racetrack in the central zone or southern zone for racing in 2010, or thereafter, in accordance with the rules and regulations of the California Horse Racing Board, rage L010 http: / /www.leginfo. ca.gov /cgi- bin/disp laycode? section =bpc &group = 19001- 20000 &file =1... 8/30/2010 l i Loaes kopc:1JDiU- 1JD4u) provided however, that the number of racing dates allocated pursuant to this section does not exceed the number of racing dates that became unavailable at the central zone racetrack. 19533. (a) Any license granted to an association other than a fair shall be only for one type of racing, thoroughbred, harness, or quarter horse racing as the case may be, except that the board may authorize the entering of thoroughbred and Appaloosa horses in quarter horse races at a distance not exceeding five furlongs at quarter horse meetings, mixed breed meetings, and fair meetings. If the board authorizes the entering of thoroughbred or Appaloosa horses in quarter horse races, the following conditions shall be met: (1) Any race written for participation by quarter horses, Appaloosas, and thoroughbreds shall be written as quarter horse preferred. (2) The number of races written as quarter horse preferred at a distance exceeding 870 yards shall not exceed more than three races per program without the consent of the quarter horse horsemen's organization contracting with the association. (3) More than one -half of the races on any program shall be for quarter horses at a distance not to exceed 550 yards, unless the consent of the quarter horse horsemen's organization is received. (4) Mixed races with Appaloosa and quarter horses may only be written with the consent of the quarter horse horsemen's organization contracting with the association. (5) Thoroughbreds shall constitute less than half the number of horses in these races although an exception may be granted on a race -to -race basis with the consent of the quarter horse horsemen's organization contracting with the association. (b) The association that conducts the meeting shall pay to a thoroughbred trainers' organization an amount for a pension plan for backstretch personnel to be administered by that trainers' organization equivalent to 1 percent of the amount available to thoroughbred horses for purses. The remainder of the portion shall be distributed as purses. Any redistributable money paid to the board pursuant to Section 19641, which is paid to a welfare fund established by a horsemen's organization from races with both thoroughbred and quarter horses, shall be divided pro rata between the two welfare funds based on the number of thoroughbreds and quarter horses in the race. (c) (1) Notwithstanding any other provision of law, any association licensed to conduct quarter horse racing may apply to the board for, and the board shall grant, authority to conduct thoroughbred racing as part of its racing program if all of the following conditions are met: (A) The thoroughbred races are for a claiming price of not more than five thousand dollars ($5,000), and at a distance of four and one -half furlongs or less. The races may not be stakes, allowance races, or maiden allowance races. (B) More than one -half of the races on any program shall be for quarter horses at a distance not to exceed 550 yards, unless the consent of the quarter horse horsemen's organization is received. (C) The consent of the quarter horse horsemen's organization contracting with the association is obtained with respect to the inclusion of thoroughbred racing. (2) The quarter horse racing association conducting thoroughbred racing pursuant to this subdivision shall pay to a quarter horse horsemen's organization the amount specified in subdivision (e) of rage s or b http: / /www.leginfo.ca. gov /cgi- bin/displaycode? section =bpc &group= 19001- 20000 &file =1... 8/30/2010 LA ewes knpc:1 ..1U -Pi) U) Section 19613, and an amount for a pension plan for backstretch personnel to be administered by a thoroughbred trainers' organization equivalent to 1 percent of the amount available to thoroughbred horses for purses. The remainder of the portion shall be distributed as purses. The quarter horse racing association shall also deduct the appropriate amount to comply with subdivision (a) of Section 19617.2 for distribution to the thoroughbred official registering agency. 19533.5. (a) Notwithstanding Section 19533, the board may authorize the following mixed breed racing: (1) An association licensed to conduct a quarter horse meeting to include Appaloosa races and Arabian races with the consent of the quarter horse horsemen's organization contracting with the association with respect to the conduct of the racing meeting. (2) A race between a quarter horse and a thoroughbred horse at a thoroughbred meeting with the consent of the thoroughbred horsemen's organization contracting with the association with respect to the conduct of the racing meeting. (b) Notwithstanding Section 19533, an association licensed to conduct quarter horse racing or a fair may conduct races that include paint horses racing with quarter horses or Appaloosa horses in the same race. When paint horses race with quarter horses, the consent of the organization that represents quarter horse horsemen and horsewomen shall first be obtained. A quarter horse association may write a race for paint horses only to replace an Appaloosa or Arabian race without increasing the average number of races run per race day with the consent of the organization representing the quarter horse men and women. (c) A quarter horse race with seven or more entries shall not be replaced by a race that includes paint horses, without the consent of the organization that represents quarter horse horsemen and horsewomen. (d) Notwithstanding any other provision of law, any quarter horse racing association or fair conducting barrel racing, paint horse racing, show jump racing, or steeplechase racing shall pay to the quarter horsemen's organization the amount specified in Section 19613 for purposes of representing the horsemen and horsewomen conducting these races. 19533.6. Notwithstanding Section 19533, the board may authorize any racing association licensed to conduct a live quarter horse racing meeting to also conduct mule racing at that racing meeting, subject to the following conditions: (a) Mule races may only be conducted when a fair is not licensed to conduct live races with parimutuel wagering. (b) The consent of the quarter horse horsemen's organization contracting with the association shall be obtained with respect to the inclusion of mule racing. (c) The majority of the races conducted on any given racing day shall be quarter horse races. (d) A quarter horse association may conduct mule races provided that the total number of Arabian and mule races run in a year do not exceed the total number of Arabian races run in the state in 2001. (e) An Arabian race with seven or more entries shall not be replaced by mule race, without the consent of the organization that represents Arabian horsemen and horsewomen. rage 4 +ui0 http: / /www.leginfo .ca.gov /cgi- bin/displaycode ?section =bpc &group = 19001- 20000 &file =1... 8/30/2010 LA uoues Vpc:1 1 rags J V.I. v 19535. (a) Notwithstanding any other provision of law, at the time the board allocates racing weeks, it shall determine the number of useable stalls that each association or fair shall make available and maintain in order to conduct the racing meeting. The minimum number of stalls may be at the site of the racing meeting or at board- approved offsite locations. (b) With respect to racing meetings conducted in the northern zone, the association or fair conducting the meeting shall provide all stabling required by the board pursuant to subdivision (a) without cost to participating horsemen. Offsite stabling shall be at a board approved facility or facilities selected by the association or fair, with the agreement of the organization representing horsemen participating at the meeting. If there is a disagreement between the association or fair and the organization representing the majority of horsemen participating at the meeting with respect to the selection of offsite stabling facilities, the board, at the request of the association or fair or the organization representing the majority of horsemen participating at the meeting, shall promptly determine the board - approved facility or facilities at which offsite stabling shall be made available. The organization representing horsemen participating at the meeting and the association or fair shall mutually agree on the criteria and selection of horses that may use stalls required pursuant to this section. With respect to northern zone thoroughbred meetings only, the association shall also provide, at the option of the horse owner, vanning of participating racehorses from any board - approved offsite stabling facility in the northern zone. Fairs may provide, subject to the availability of funds pursuant to Sections 19607, 19607.1, 19607.2, and 19607.3, at the option of the horse owner, vanning of participating racehorses from any board - approved offsite stabling facility. (c) With respect to racing meetings conducted in the central or southern zones, all costs associated with the maintenance of the useable stalls for the racing meeting shall be borne by the association or fair conducting the meeting, and, with respect to useable stalls at an offsite location, the association or fair may be required, by order of the board, to bear the costs of vanning from the offsite location to the racing meeting. However, with respect to any racing association in the central or southern zone that conducted a racing meeting in 1986, if the number of useable stalls made available onsite by a racing association during a racing meeting is less than 95 percent of the number of useable stalls made available onsite by that racing association during its 1986 racing meeting, the racing association shall reimburse the facility providing offsite stabling for the difference in cost between the actual number of useable stalls made available and 95 percent of the useable stalls made available in 1986. The racing association shall, in addition, reimburse the owner for vanning to the onsite location with respect to those horses stabled at an offsite location necessitated by the failure of a racing association to maintain 95 percent of the useable stalls made available by that racing association during its 1986 racing meeting. 19540. In order to encourage and develop the racing of all horses in California, regardless of breed, whenever a fair conducts a http: / /www.leginfo .ca.gov /cgi- bin/displaycode? section =bpc &group = 19001- 20000 &file =1... 8/30/2010 ti wuca � opc.i>✓ ✓v - 12J tV program of horse races on which there is parimutuel wagering, the fair, so far as practicable, shall provide a program of racing that includes thoroughbred racing, quarter horse racing, Arabian racing, and Appaloosa racing, if a sufficient number of horses is available to provide competition in one or more races. i ubv v va v http: / /www.leginfo. c a. gov /c gi- bin/di splaycode? section =bpc &group = 19001- 20000 &file =1... 8/30/2010 City of Arcadia Office of the City Council Peter M. Amundson Mayor Gary A. Kovacic Mayor Pro tempore Roger Chandler Council Member Robert C. Harbicht Council Member Mickey Segal Council Member 240 West Huntington Drive Post Office Box 60021 Arcadia, CA 91066 -6021 (626) 574 -5403 (626) 446 -5729 Fax www.ci.arcadia.ca.us September 21, 2010 ATTACHMENT B Chairman Keith Brackpool California Horse Racing Board 1010 Hurley Way, Suite 300 Sacramento, CA 95825 RE: RACING DATES AT SANTA ANITA PARK Dear Chairman Brackpool and Members of the CHRB: This letter is in response to the recent series of decisions concerning the Oak Tree Racing Association and how this impacts Santa Anita Park and the City of Arcadia. The City has followed these events with growing disappointment and concern as to the short and long term impacts to horse racing in this region. As you know, this recent decision on Oak Tree follows years of problems and issues at Santa Anita Park that have impacted horse racing, including well documented problems with the mandated synthetic surface, the bankruptcy of Magna Entertainment Corporation and the recent statements and decisions made by new owner MI Developments. The City was very discouraged with the recent decision by MID to void the lease of Oak Tree and a letter was sent to Mr. Frank Stronach outlining our concerns. The City has enjoyed a positive relationship with Oak Tree for more than 41 years and has embraced Oak Tree as a valued partner in the community. The City has partnered with Oak Tree in the hosting of five successful Breeders' Cups over the years, including the last two years. Thus, while the City has not always agreed with Mr. Stronach on decisions concerning Santa Anita Park, it does appear that the recent commitment to installing a new dirt racing surface at a cost of over $6 million and requested additional race dates are signs that Mr. Stronach is committed to horse racing. This is a commitment that we value highly given the recent bidding process through the MEC bankruptcy. It was clear during the bankruptcy process that the vast majority of the bidders for Santa Anita Park were developers. It is difficult to find a 300+ acre site in the Los Angeles regional area so attractive for development. This puts Santa Anita at great risk to remain a horse racing venue, and we are concerned that something similar to what has happened at Hollywood Park could happen in Arcadia. The current decision to move Oak Tree's dates to Hollywood Park, and the recent announcement that future dates may be held at Hollywood Park or Del Mar, would create a lack of racing at Santa Anita from April through December each year. This not only has a significant impact on the City of Arcadia and the many businesses that rely on the Race Track, but it has an impact on the sport as Hollywood Park's crowds and purses are much less than what Santa Anita can deliver and Del Mar is restricted in terms of the facilities and amenities it can offer over an extended racing season. Racing Dates at Santa Anita Park September 21, 2010 Page 2 We understand that the charge of the CHRB is, first and foremost, the safety of the horses and the regulation of the sport. We also understand that the CHRB works within the State law outlined in the Business and Professions Code which limits racing weeks throughout the State. However, we understand that MID has an application in to the CHRB that would expand racing dates at Santa Anita and not necessarily limit when these dates could be run. While we do not know all of the ramifications of such a proposal, the underlying point is that the current model of allocating racing dates, and the law underlying this allocation, needs to be reviewed. Race dates need to be allocated to the tracks that can use them. Hollywood Park has been approved for a development by the City of Inglewood for years now, yet each six months they announce they will continue running horses to dwindling crowds. If the State was in a better economic situation, the Hollywood Park grandstand would be demolished and homes and commercial buildings would be under construction. This situation at Hollywood Park is keeping the rest of the sport in limbo with no apparent ramifications. The City of Arcadia is committed to horse racing at Santa Anita, and it appears MID is too, yet it is apparent from the recent bankruptcy process that there are few individuals or ownership groups equally committed. We urge the CHRB to take leadership on the issue of racing dates and develop a plan that provides dates to Santa Anita Park that will allow Santa Anita to continue to be the jewel of racing in the State. There is no organization better positioned to take a leadership position to change this state law than the CHRB and it is clear that the model of horse racing that this law was originally designed to regulate is not the present reality. Thank you for you consideration and we are available to meet with you or discuss these matters with the Board at any time. Thank you very much for your time and interest. Sincerely, 0 /? 4 p st Peter M. Amu Mayor CC: Arcadia City Council Don Penman, City Manager Jason Kruckeberg, Assistant City Manager