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