California Governor Arnold Schwarzenegger has signed a bill into law that will allow racing secretaries to include horses conceived in California in races previously restricted to horses foaled in the state.

The California Thoroughbred Breeders Association and the Thoroughbred Owners of California supported the bill.

"This bill will assist in increasing the inventory to fill California-bred races, provide added incentive to breed to a California stallion and provide a safer means of shipping horses both from and back to California for breeding purposes, as now the new-born foal will not be subjected to shipping across country with the mare, as it can be born at the destination of the next breeding," said Doug Burge, general manager of the CTBA.

Registered California-sired horses will only have entry in California-bred races; they will not be eligible for breeder or owner awards.