BILL ANALYSIS Bill No: AB 2792 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Roderick D. Wright, Chair 2009-2010 Regular Session Staff Analysis AB 2792 Author: Committee on Governmental Organization As Introduced: March 17, 2010 Hearing Date: June 29, 2010 Consultant: Art Terzakis SUBJECT Horse Racing Law: intent DESCRIPTION AB 2792 provides technical clean-up to Horse Racing Law to ensure the law reflects changes made through the enactment of SB 16 XX (Ashburn, Chapter 12, Statutes of 2009). EXISTING LAW 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. Existing law provides that the intent of California's Horse Racing Law is to allow parimutuel wagering on horse racing while: Assuring protection of the public. Encouraging agriculture and the breeding of horses in this state. Supporting the network of California fairs. Providing for maximum expansion of horse racing opportunities in the public interest. AB 2792 (Committee on Governmental Organization) continuedPage 2 Providing uniformity of regulation for each type of horse racing. Existing law requires all licenses granted under the Horse Racing Law to, among other things, contain such conditions as are deemed necessary or desirable by the California Horse Racing Board (CHRB) for the purposes of the Horse Racing Law. BACKGROUND In 1933, California voters passed a constitutional amendment authorizing parimutuel 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 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 SB 16xx. SB 16xx authorizes 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. As such, AB 2792 would modify the stated policy purpose of the Horse Racing Law to reflect the changes brought about by SB 16xx. PRIOR/RELATED LEGISLATION SB 16xx (Ashburn) Chapter 12, Statutes of 2009 Second Extraordinary Session . Among other things, provided 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. SB 830 (Committee on Governmental Organization) 2009-10 Session. Nearly identical to AB 2792 of 2009-10 Session. (Gutted in Assembly Appropriations Committee) SUPPORT: None on file as of June 25, 2010. AB 2792 (Committee on Governmental Organization) continuedPage 3 OPPOSE: None on file as of June 25, 2010. FISCAL COMMITTEE: Senate Appropriations Committee **********