BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2792
                                                                  Page  1

          AB 2792 (Committee on Governmental Organization)
          As Introduced  March 17, 2010
          Majority vote 

          |Ayes:|Coto, Anderson,           |Ayes:|Fuentes, Ammiano,         |
          |     |Blakeslee, Chesbro, Cook, |     |Bradford, Coto, Davis,    |
          |     |Bradford, Evans,          |     |Hill, Hall, Skinner,      |
          |     |Galgiani, Hall,           |     |Solorio, Torlakson,       |
          |     |Hernandez, Hill,          |     |Torrico                   |
          |     |Charles Calderon, Ma,     |     |                          |
          |     |Mendoza, Nestande, V.     |     |                          |
          |     |Manuel Perez, Portantino, |     |                          |
          |     |Silva, Torres Torrico,    |     |                          |
          |     |Tran                      |     |                          |
          |     |                          |     |                          |
           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)Provides, under Article IV, Section 19(b) of the Constitution  
            of the State of California, 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; and,


                                                                  AB 2792
                                                                  Page  2

             e)   Providing uniformity of regulation for each type of  
               horse racing.

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, there are no costs associated with this legislation.

           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,  
          relieving the state's General Fund (GF) 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  

          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 GF 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.   
          Specifically, this bill removes the language which states that  
          pari-mutuel wagering on horse racing is intended to support the  
          network of California fairs. 

          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, $32 million shall be appropriated from the state's  
          GF and paid into the Fair and Exposition Fund for the financial  
          support of the network of California fairs. 

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531 

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