BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1792|
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CONSENT
Bill No: AB 1792
Author: Silva (R)
Amended: 6/22/10 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 6/29/10
AYES: Wright, Harman, Calderon, Florez, Negrete McLeod,
Padilla, Price, Yee
NO VOTE RECORDED: Denham, Oropeza, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 76-0, 5/13/10 - See last page for vote
SUBJECT : Horse racing: license fee reduction: quarter
horse racing
SOURCE : Pacific Coast Quarter Horse Racing Association
DIGEST : This bill increases from two-and-one-half
percent to three percent, the amount of the takeout that
the Quarter Horse Racing Association can redirect for
California breeders' awards.
ANALYSIS : Existing law authorizes parimutuel wagering on
horse racing at or disseminated by licensed racing
associations and fairs. Racing was legalized through
constitutional amendment in 1933. The California Horse
Racing Board (CHRB) has complete jurisdiction and
CONTINUED
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supervision over all racing activities to the State of
California.
Existing law 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.
Existing law 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.
Existing law 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, two-and-one-half percent of the
amount of the reduction is required to be deposited with
the official registering agency and distributed as
provided.
Comments
According to the sponsor, the Pacific Coast Quarter Horse
Racing Association (PCQHRA), this bill is necessary to
address a specific section of current law enacted in 2009
(SB 16 X2 [Ashburn], Chapter 12, Statutes of 2009 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
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Fund assuming the fair funding obligation) be distributed
to the official registering agencies for the specific
breeds of horses which race in California.
Currently, two-and-one-half percent is set aside for the
quarter horse registering agency, the PCQHRA. This bill
seeks to increase the amount from two-and-one-half percent
to three percent. The three percent 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 bill has
no financial relationship to the General Fund.
Prior/Related Legislation
SB 16xx (Ashburn) Chapter 12, Statutes of 2009-10 Second
Extraordinary Session, 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/2/10)
Pacific Coast Quarter Horse Racing Association (source)
Los Alamitos Race Course
ARGUMENTS IN SUPPORT : The sponsor of the bill, the
Pacific Coast Quarter Horse Racing Association writes, "AB
1792 is a technical clean-up bill to SB2X 16 which was
signed into law last year. SB2X 16 initially provided the
license fee reduction "savings" be split 48.75% each for
commissions and purses with 2.5% to breeders for quarter
horses. All other breeds were split 48.5% each to purses
and commissions and 3.0% to breeders. Since then, with the
approval of the CHRB, we have been using 3.0% to conform to
the other breeds. AB 1792 simply codifies the change into
law."
ASSEMBLY FLOOR :
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AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Bradford, Brownley, Buchanan, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,
Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue,
Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava,
Nestande, Niello, Nielsen, V. Manuel Perez, Portantino,
Ruskin, Salas, Saldana, Silva, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Villines, Yamada, John A. Perez
NO VOTE RECORDED: Caballero, Norby, Skinner, Vacancy
TSM:do 8/4/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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