BILL ANALYSIS Bill No: SB 830 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Roderick D. Wright, Chair 2009-2010 Regular Session Staff Analysis SB 830 Author: Committee on Governmental Organization As Introduced: March 19, 2009 Hearing Date: April 28, 2009 Consultant: Chris Lindstrom SUBJECT Horse racing law: intent. DESCRIPTION Clarifies the policy purpose of Horse Racing Law, reflecting the changes made to the law pursuant to the enactment of SB 16xx (Chapter 12, Statutes of 2009-10 Second Extraordinary Session). 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: 1) Assuring protection of the public. 2) Encouraging agriculture and the breeding of horses in this state. 3) Supporting the network of California fairs. 4) Providing for maximum expansion of horse racing SB 830 (G.O. Committee) continued Page 2 opportunities in the public interest. 5) Providing uniformity of regulation for each type of horse racing. 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, SB 830 modifies the stated policy purpose of the Horse Racing Law to reflect the changes brought about by SB 16xx. PRIOR/RELATED LEGISLATION AB 840 (Garrick), 2009-2010 Legislative Session . Makes a technical change to the intent section of Horse Racing Law to specify that it is the intent to of the law to allow parimutuel wagering on horse races while ensuring the protection of the public. Pending in Assembly Rules Committee. SB 16xx (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. SUPPORT: None on file as of April 24, 2009. OPPOSE: None on file as of April 24, 2009. SB 830 (G.O. Committee) continued Page 3 FISCAL COMMITTEE: Senate Appropriations Committee **********