BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 830
                                                                  Page  1

          Date of Hearing:   July 8, 2009

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                                 Joe Coto, Chairman
             SB 830 (Committee on G.O.) - As Introduced:  March 19, 2009

           SENATE VOTE  :   36-0
           
          SUBJECT  :   Horse racing law: intent.

           SUMMARY  :   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.  Specifically,  this bill  :

          1)Deletes "supporting, the network of California fairs" from the  
            intent of existing law.

           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  :   









                                                                  SB 830
                                                                  Page  2

          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 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 Legislation  :  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. 

           Related legislation .  AB 1575 (Governmental Organization  
          Committee) of 2009, makes numerous technical, clarifying, and  
          conforming changes in order to update and condense where  
          possible, current horse racing statutes found in the Business  
          and Professions Code.  Pending in Senate G.O. Committee.   

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file
           
          Opposition 
           
          None on file


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