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