BILL ANALYSIS
AB 1792
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Date of Hearing: April 21, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
AB 1792 (Silva) - As Introduced: February 10, 2010
SUBJECT : Horse racing: quarter horse racing.
SUMMARY : Increases the amount from 2.5% to 3% that the
official registering agency for quarter horses receives for
breeders' awards in California. The increased amount will be
paid from license fees which are no longer paid to the General
Fund (SB 16 X2 (Ashburn), Chapter 12, Statutes of 2009-10 Second
Extraordinary Session). Specifically, this bill :
1)Increases to 3% the amount of the license fee reduction for
quarter horse racing that is to be deposited with the official
registering agency for distribution.
EXISTING LAW :
1)Provides that California Horse Racing Board (CHRB) regulate
the various forms of horse racing authorized in this state.
2)Provides under the Horse Racing Law, for the operation of live
horse racing in this state and for wagering thereon, and for
the operation of satellite wagering facilities, subject to
regulation and oversight by the CHRB, as specified.
3)Provides that, notwithstanding any other law and in lieu of
any license fee payable to the state prescribed for or
referred to in specified provisions of the Horse Racing Law,
any association or fair that conducts a racing meeting shall
pay its proportional amount, as determined by the formula
devised by the CHRB in consultation with the industry, as a
license fee to the state to fund the board and the equine drug
testing program, as provided.
4)Provides that the license fee reductions resulting from these
provisions, after payments to fund the board and the equine
drug testing program, shall be distributed as specified for
thoroughbred racing, quarter horse racing, harness racing, and
all other breeds. For quarter horse racing, 2.5% of the
amount of the reduction is required to be deposited with the
official registering agency and distributed as provided.
AB 1792
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FISCAL EFFECT : Unknown.
COMMENTS :
Purpose of the bill : According to the sponsor, the Pacific
Coast Quarter Horse Racing Association (PCQHRA), this bill is
necessary to address a specific section of current law chaptered
in 2010 (SB 16 X2 (Ashburn), Chapter 12, Statutes of 2009-10
Second Extraordinary Session) dealing with incentives for
Cal-bred quarter horses.
SB16 X2 (Ashburn) shifted the horse racing industry's obligation
($40 million) to fund state and county fairs from licensing
fees, paid by the associations or fairs while operating live
race meets into the General Fund. One component of the bill
required that a specific percentage of the license fee reduction
(resulting from the General Fund assuming the fair funding
obligation) be distributed to the official registering agencies
for the specific breeds of horses which race in California.
Currently, 2.5% is set aside for the quarter horse registering
agency, the PCQHRA. This measure seeks to increase the amount
from 2.5% to 3%. The 3% will conform to the amount of money
which is paid to the thoroughbred breeders' organization for the
same license fee reduction in 2009. The increased deposit will
help to incentivize breeding and racing of quarter horses within
California. This measure has no financial relationship to the
General Fund.
Prior legislation : SB 16 X2 (Ashburn), Chapter 12, Statutes of
2009-10 Second Extraordinary Session, provides among other
things, 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.
REGISTERED SUPPORT / OPPOSITION :
Support
Los Alamitos Race Course
Pacific Coast Quarter Horse Racing Association
Opposition
AB 1792
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None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531