BILL ANALYSIS Ó AB 1226 Page 1 Date of Hearing: May 1, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 1226 (Hall) - As Amended: April 8, 2013 Policy Committee: Governmental Organization Vote: 17 - 0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill establishes minimum jockey fees in state law and defines gross purse (winnings) in a horse race as the published amount of the purse prior to deductions. Specifically, this bill states that in a race with a gross purse of more than $9,999, all of the following shall apply: 1)A jockey whose horse finishes first shall be paid at least 10% of the first place winner's share of the gross purse. 2)A jockey whose horse finishes second shall be paid at least 5% of the second place winner's share of the gross purse. 3)A jockey whose horse finishes third shall be paid at least 5% of the third place winner's share of the gross purse. FISCAL EFFECT There are no significant costs associated with this legislation. COMMENTS 1)Rationale . Current Horse Racing Law requires that the California Horse Racing Board (CHRB) establish the minimum jockey fee that jockeys earn if a horse they are riding finishes first, second, or third. This bill, instead, establishes those minimums in state law by requiring that winning jockeys in a stakes race be paid a percentage of the gross purse. However, it does not prohibit the CHRB from increasing that minimum above the statutory minimums. AB 1226 Page 2 In addition, this bill will place into state statute the definition of gross purse as "the published amount of the purse before any deductions." The author hopes this will prevent the subtraction of entry fees from stakes race purses before calculating the 10% jockey fee. This change should result in an increase in California jockey fees for the winning horses in a stakes race. The owners' entry costs would no longer be subtracted from the Win Purse before the jockey fee is calculated. Jockeys in California are independent contractors for all purposes other than workers' compensation insurance. The jockeys supply their own equipment, choose which horses to ride, and in which races, and are allowed to negotiate their own rate of compensation. 2)Minimum Jockey Riding Fee . The minimum wage that jockeys receive in a horse race is established by the CHRB as a minimum riding fee. Jockeys negotiate their ultimate compensation with individual racehorse owners. Jockeys may also earn additional compensation based on the performance of the horse they are racing. According to the Jockeys' Guild, jockeys are generally not paid for exercising horses, but are paid a small mount fee of approximately $50 for each losing mount in a race. Beyond that, jockeys are paid a percentage of the purse if the horse wins. 3)Related Legislation . AB 649 (Ma), Chapter 43, Statutes of 2007, required specific, periodic increases to the minimum jockey riding fees established by the CHRB. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081