BILL ANALYSIS                                                                                                                                                                                                    



                                                                           
           AB 2792
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2792 (Governmental Organization Committee)
          As Amended  August 20, 2010
          Majority vote
           
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          |ASSEMBLY:  |62-0 |(May 28, 2010)  |SENATE: |35-0 |(August 25,    |
          |           |     |                |        |     |2010)          |
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           Original Committee Reference:    G.O.  

           SUMMARY  :  Extends the sunset date, by three years, on  
          California's participation in the National Thoroughbred Racing  
          Association (NTRA) and changes the stallion award definitions in  
          Horse Racing Law to allow California stallions to be vested for  
          their years of service       regardless if the stallion later  
          leaves the state.  Provides technical clean-up to Horse Racing  
          Law to ensure the law reflects changes made through the  
          enactment of SB 16X2 (Ashburn), Chapter 12, Statutes of   
          2009-10, Second Extraordinary Session.

           The Senate amendments  :

          1)Extend the sunset date on California's participation in the  
            National Thoroughbred Racing Association (NTRA) from January  
            1, 2011, to January 1, 2014.

          2)Change the stallion award eligibility definitions in Horse  
            Racing Law to allow California stallions to be vested for  
            their years of service regardless if the stallion later leaves  
            the state, as specified.

          3)State that "eligible thoroughbred stallion" means a  
            Thoroughbred stallion that was continuously present in this  
            state from February 1 to June 15, inclusive, of the year 2010  
            or any subsequent calendar year in which he stood at stud and  
            fathered the participant in the race.  If a sire dies in this  
            state in the year 2010 or any subsequent year and stood his  
            last season at stud in this state, or was standing at stud in  
            this state on the date of his death in the year 2010 or any  
            subsequent year, he shall thereafter continue to be considered  
            an eligible thoroughbred stallion regarding a race participant  
            fathered by him in that season.








                                                                           
           AB 2792
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           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,

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

          1)Authorizes California Thoroughbred owners to deduct a portion  
            of their purse pools to participate in the "national  
            marketing" association, the NTRA.  This provision expires on  
            January 1, 2011.

          2)Provides that an "eligible Thoroughbred stallion" means a  
            Thoroughbred stallion that was continuously present in this  
            state during certain dates of the calendar year in which the  
            qualifying race was conducted or if the sire left this state  
            after June 15 of the year in which the qualifying race was  
            conducted, during certain dates of the following calendar  
            year. 

          3)Provides that if a sire dies in this state and stood his last  
            season at stud in this state, he shall thereafter continue to  
            be considered an "eligible Thoroughbred stallion."  

          4)Provides that a Thoroughbred stallion shall be considered an  
            eligible Thoroughbred stallion only if its owner has filed a  
            claim for stallion award on or before February 15 of the  








                                                                           
           AB 2792
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            calendar year immediately following the calendar year for  
            which awards are being distributed and is registered with the  
            official registering agency.  

          5)Provides that a "stallion owner" means the person who is the  
            owner of the eligible Thoroughbred stallion as of December 31  
            of the calendar year in which that sire's foals had eligible  
            earnings or the person who owned the eligible sire on the date  
            that the stallion died.  

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

           COMMENTS  :  This bill extends the sunset date on California's  
          participation in the NTRA.  Participation in the NTRA is  
          intended to increase interest in horse racing through national  
          marketing and advertising.  California Thoroughbred owners'  
          legal authority to participate in the NTRA expires on January 1,  
          2011.  This bill extends that date until January 1, 2014.

          This bill changes the stallion award eligibility definitions in  
          Horse Racing Law to allow California stallions to be vested for  
          their years of service regardless if the stallion later leaves  
          the state.  The revision of the stallion award definitions will  
          reward stallion owners for the years that their stallion stood  
          in the state, and allow for greater flexibility to later move  
          the horse without penalty.  This flexibility will provide a  
          further incentive for top stallions to come to California.    

          The bill is also a clean-up measure to SB 16X2 (Ashburn),  
          Chapter 12, Statutes of 2009-10, Second Extraordinary Session,  
          which among other things, provided that beginning on July 1,  
          2009, and annually thereafter, $32 million 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.  This bill modifies the stated policy purpose  
          of the Horse Racing Law to reflect the changes brought about by  
          SB 16X2.

          Prior legislation:  SB 16 X2 (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  
          General Fund and paid into the Fair and Exposition Fund for the  








                                                                           
           AB 2792
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          financial support of the network of California fairs. 

          SB 1072 (Ron Calderon) of 2010, extends the sunset date from  
          January 1, 2011, to January 1, 2014, in existing law relating to  
          a private statewide marketing organization to market and promote  
          thoroughbred and fair horse racing in California, as described.   
          (Pending on Assembly Floor)

          AB 1736 (Governmental Organization Committee), Chapter 444,  
          Statutes of 2007, extended the sunset date from January 1, 2008,  
          to January 1, 2011, in existing law, which allows any racing  
          association or fair that conducts thoroughbred racing to pay to  
          the owners 'organization a certain portion of the purses for a  
          national marketing program, as specified.

          AB 1578 (Governmental Organization Committee), Chapter 550,  
          Statutes of 2009, permited the official Thoroughbred registering  
          agency to distribute a specific portion of designed funds  
          annually for a California-bred bonus program.  

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


          FN: 0006758