BILL ANALYSIS Ó
AB 1226
Page 1
Date of Hearing: April 10, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Hall III, Isadore, Chair
AB 1226 (Hall) - As Amended: April 8, 2013
SUBJECT : Horse racing: jockey riding fees.
SUMMARY : Defines gross purse as the published amount of the
purse before any deductions. Specifically, this bill :
1) States In a race with a gross purse of more than nine
thousand nine hundred ninety-nine dollars ($9,999), all of the
following shall apply:
a) A jockey whose horse finishes first in a race shall be
paid at least 10 percent of the first place winner's share of
the gross purse.
b) A jockey whose horse finishes second in a race shall be
paid at least 5 percent of the second place winner's share of
the gross purse.
c) A jockey whose horse finishes third in a race shall be
paid at least 5 percent of the third place winner's share of the
gross purse.
2) Defines "gross purse" as the published amount of the purse
before any deductions.
EXISTING LAW :
1) Establishes California Horse Racing Board (CHRB) which
generally regulates horse racing in the state, including setting
riding fees for jockeys that apply in the absence of an
agreement regarding riding fees to the contrary.
2) Provides that jockeys must be licensed by CHRB.
3) Establishes the default riding fees for jockeys as a certain
percentage of the win purse, which is defined as the amount paid
the winning horse less the fees paid by the owner to enter the
horse in the race. Existing law also requires a jockey who
finishes 2nd or 3rd in a race in which the purse is $9,999 or
less to be awarded a minimum amount, as specified.
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4) Requires CHRB to establish safety standards governing the
racetracks, equipment, medical services, and other facilities to
ensure the safety of horses, riders, and workers at the
racetrack.
FISCAL EFFECT : Unknown.
COMMENTS :
Purpose of the bill : According to the author, current Horse
Racing Law establishes the California Horse Racing Board (CHRB)
which generally regulates horse racing in the state, including
establishing the minimum jockey fee, that jockeys may earn if a
horse they are riding finishes first, second, or third in a
race. CHRB Rule 1632, Jockey's Riding Fee, provides a scale of
jockey riding fees to be used in the absence of a contract or
special agreement. This scale defines the pay earned by a
jockey of the winning horse as ten percent of the Win Purse.
For the purposes of CHRB Rule 1632 (d) Win Purse is defined as
the "the amount paid the winning horse less the fees paid by the
owner to enter the horse in the race."
This bill will add to Horse Racing Law the definition of Win
Purse to "the amount paid to a winning horse." This would
prevent the subtraction of entry fees from stakes race purses
before calculating the ten percent jockey fee. This bill would
result in an increase in California jockey fees for the winning
horse in a stakes race. The owners' entry costs would no longer
be subtracted from the Win Purse before the jockey fee is
calculated.
The sponsor of this bill, the Jockeys' Guild states that under
Rule 1632 the "definition of Win Purse" results in less money
being paid to jockeys' when a race is won. The most extreme
example of this was when the winning jockey of the 2012
Breeder's Cup Classic, run in California, earned $10,000 less
than if the race been run at Churchill Downs in Kentucky. The
Jockeys' Guild estimates that their members received more than
$80,000 less in winnings from the 2012 Breeders' Cup races
because they were held in California. "While this represents a
small amount of money to owners and racetracks, it is a large
amount of money for our members."
California jockeys are independent contractors : For purposes
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other than workers' compensation insurance, jockeys are
independent contractors. California jockeys supply their own
equipment, choose which horses to ride, ride only those races
they elect to ride at race meets they select, and are allowed to
negotiate their own rate of compensation. (California Code of
Regulations, Title 4, Divisions 4, Rule 1632.)
The minimum wage that jockeys receive in a horse race is
established by the CHRB (per regulation) as a minimum riding
fee. Jockeys may earn additional compensation if the horse they
are racing is a winning mount, a second place mount, or a third
place mount.
According to the Jockeys' Guild, jockeys are generally not paid
for the time they work at the track in the morning while
exercising horses, but are paid a small mount fee of
approximately $50 for each losing mount in a race. Jockeys are
paid a percentage of the purse if the horse wins (10 percent),
places (five percent), or shows (five percent).
Qualifications to be a jockey : Under CHRB rules, no person
under 16 years of age shall be granted a jockey's license nor a
license as apprentice jockey. No person whose riding weight at
the time of application exceeds 125 pounds shall be licensed as
a jockey or apprentice jockey. No person who has never ridden
in a race at a recognized meeting shall be granted a license as
jockey or apprentice jockey; provided, however, that upon the
recommendation of the stewards CHRB may issue a temporary
license to or otherwise grant permission to such person for the
purpose of riding in not more than four races to establish the
qualifications and ability of such person for the license.
Who represents jockeys ? The Jockeys' Guild, Inc. is an American
labor union, representing thoroughbred horse racing and American
quarter horse professional jockeys. More than 60 years ago, the
Jockeys' Guild was born out of meetings among riders that once
were conducted in secret for fear of repercussions from
unsympathetic horse owners and racetrack management. Notable
Racing Hall of Fame members Eddie Arcaro and John Longden formed
the organization. The origin of the organization was to assist
injured and disabled riders. The Guild represents more than
1,100 active and retired jockeys in North America. It has been
instrumental in attaining a wide range of benefits to improve
conditions for jockeys, including health and medical benefits,
workers' compensation, a uniform mount fee scale, on-track
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ambulances, safer starting gates, safety rails, and other
important concessions.
A dangerous sport : Horse racing is the only sport where an
ambulance follows the athletes as they are participating. The
potential for injury to a rider who is slightly over 100 pounds
in a field of unpredictable, tightly packed, 1,000+ pound horses
going about 40 miles per hour is very real. An accident can
occur in an instant that changes a jockey's life forever.
Horses kick, buck, bite, jump shadows, and duck or bolt suddenly
for no apparent reason. Great riders have been killed while
riding at California racetracks, including: George Woolf, Jackie
Westrope, Alvaro Pineda, and Juan Gonzalez. Almost every jockey
riding today has broken bones and has had a brush with death.
Some of them return from their injuries to ride again, while
others have been permanently disabled.
Breeders' Cup Challenge 'Win & You're In' Series : The winning
horse in a Challenge Race receives automatic selection into the
Championship race that corresponds with the division of the
Challenge Race won. A owner whose horse wins a Challenge Race
gets their starting fees (the total of pre-entry and entry fees)
paid for by the Breeders' Cup, provided the horse is Breeders'
Cup-nominated. The pre-entry fee is 1% of the purse and the
entry fee to race is also 1% of the purse. In 2013, Breeders'
Cup will offer 67 automatic qualifying races for its 2013 World
Championships, including 48 grade or group I races around the
world. Breeders' Cup has scheduled 14 Challenge races in
California for a total value of $610,000 in paid entry fees for
race winners.
Prior legislation : SB 1486 (Committee on Governmental
Organization), Chapter 127, Statutes of 2010. Deleted obsolete
findings of the Legislature with regards to professional jockey
fees.
AB 649 (Ma), Chapter 43, Statutes of 2007. Establishes in state
law a pay scale for the minimum jockey riding fees by the CHRB.
REGISTERED SUPPORT / OPPOSITION :
Support
Jockeys' Guild
California Teamsters Public Affairs Council
AB 1226
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Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531