BILL ANALYSIS
AB 1792
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1792 (Silva)
As Amended June 22, 2010
Majority vote
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|ASSEMBLY: |76-0 |(May 13, 2010) |SENATE: |33-0 |(August 5, |
| | | | | |2010) |
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Original Committee Reference: G.O.
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 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.
The Senate amendments make technical and clarifying amendments
to the bill.
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
AB 1792
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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.
AS PASSED BY THE ASSEMBLY , this bill is consistent with Assembly
actions.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, because SB 16 X2 eliminated licensing fees and
revised the state's laws surrounding funding for 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.
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) dealing with incentives for Cal-bred Quarter
Horses.
SB16 X2 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 provides, among other things, that
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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 Exposition Fund for the financial support of
the network of California fairs.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0005565