BILL ANALYSIS AB 2792 Page 1 Date of Hearing: April 21, 2010 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Joe Coto, Chair AB 2792 (Governmental Organization Committee) - As Introduced: March 17, 2010 SUBJECT : Horse racing law intent: licenses. SUMMARY : Clarifies the policy purpose of Horse Racing Law, reflecting the changes made to the law pursuant to the enactment of SBX2 16 (Ashburn), Chapter 12, Statutes of 2009 Second Extraordinary Session. EXISTING LAW : 1)Article IV, Section 19(b) of the Constitution of the State of California provides that the Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results. 2)Provides that the intent of California's Horse Racing Law is to allow pari-mutuel wagering on horse racing while: a) Assuring protection of the public. b) Encouraging agriculture and the breeding of horses in this state. c) Supporting the network of California fairs. d) Providing for maximum expansion of horse racing opportunities in the public interest. e) Providing uniformity of regulation for each type of horse racing. FISCAL EFFECT : Unknown. COMMENTS : In 1933, California voters passed a constitutional amendment authorizing pari-mutuel wagering on horse racing. The commitment to use a percentage of the wagers to establish a continuous funding source for the fairs, while at the same time, AB 2792 Page 2 relieving the state's General Fund of the funding burden became socially and politically palatable in 1933 as the country began to pull itself up by the bootstraps from the Great Depression. For more than 75 years, this relationship existed between horse racing and the fairs until the enactment of SBX2 16. The bill authorized the appropriation of $32 million a year from the state's General Fund in support of the fairs and relieves the horse racing industry of its obligation to fund the fairs from license fees assessed on horse racing wagers. This measure modifies the stated policy purpose of the Horse Racing Law to reflect the changes brought about by SBX2 16. Prior Legislation : SBX2 16 (Ashburn), Chapter 12, Statutes of 2009-10 Second Extraordinary Session. Among other things, provides that beginning on July 1, 2009, and annually thereafter, thirty-two million ($32,000,000) shall be appropriated from the state's General Fund and paid into the Fair and Exposition Fund for the financial support of the network of California fairs. Related legislation : SB 830 (Senate Governmental Organization Committee) of 2009. Clarifies the policy purpose of Horse Racing Law, reflecting the changes made to the law pursuant to the enactment of SB 16XX (Ashburn), Chapter 12, Statutes of 2009 Second Extraordinary Session. Pending on the Assembly floor. REGISTERED SUPPORT / OPPOSITION : Support None on file Opposition None on file Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531