BILL ANALYSIS
AB 1792
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Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1792 (Silva) - As Introduced: February 10, 2010
Policy Committee: Governmental
Organization Vote: 21 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill increases, from 2.5% to 3%, the amount of the takeout
that the quarter horse racing association can redirect for
California breeders' awards.
FISCAL EFFECT
Because SB 16 X2 (Ashburn; Chapter 12, Statutes of 2009-10
Second Extraordinary Session) eliminated licensing fees and
revised the state's laws surrounding funding for the California
Horseracing Board (CHRB) this bill will have no impact on the
funding that is available for CHRB and the Kenneth L. Maddy
Equine Analytical Chemistry Laboratory at the University of
California, Davis. Instead, the change in the amount from 2.5%
to 3% merely shifts funding from purses and commissions to
California breeders' awards.
COMMENTS
1)Purpose . Current law allows thoroughbred associations to
redirect 3% of the takeout toward California breeders' awards.
This bill would allow for the same redirection of the takeout
for the quarter horse racing association. This amount would
come from the association commissions and horsemen's purses,
not from funding for the CHRB, as noted above.
2)The Impact of SB 16 XX on CHRB Funding . 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, $32 million shall be appropriated
from the state's General Fund and paid into the Fair and
AB 1792
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Exposition Fund for the financial support of the network of
California fairs.
In addition, this legislation states that all racing
associations and fairs, including all breeds of racing, shall
participate in funding the board in accordance with a formula
devised by the board in consultation with the industry. The
legislation further states that the baseline funding for the
board and equine drug testing program in the first fiscal year
after the enactment of this section shall be the amount
approved in the 2008-09 Budget Act. Any changes to that
funding level need to be approved by the Legislature.
Because language states that CHRB will devise a formula to
establish determine their funding, there are no longer any
statutory licensing fees payable to the state to fund the
board.
3)Background . California horse racing law establishes the amount
that may be deducted (the takeout) from the pari-mutuel
wagering pools of horse races in the state. The takeout is
the amount deducted from wagers before winnings are paid out
to bettors. The takeout may be used for specific purposes, as
defined by law, such as license fees, enforcement fees, owners
purses, racing association commissions, marketing, workers'
compensation, and vanning and stabling, among others.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081