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