BILL ANALYSIS Ó
Bill No: AB
1226
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
AB 1226 Author: Hall
As Amended: April 8, 2013
Hearing Date: June 25, 2013
Consultant: Art Terzakis
SUBJECT
Horse Racing: jockey riding fees
DESCRIPTION
AB 1226 adds a new Section to Horse Racing Law that
establishes minimum jockey fees in a race with a gross
purse of more than nine thousand nine hundred ninety-nine
dollars ($9,999.00). Specifically, this measure:
1)Provides that in a race with a gross purse of more than
$9,999 all of the following shall apply:
a) A jockey whose horse finishes first shall be paid
at least 10% of the first place winner's share of the
gross purse.
b) A jockey whose horse finishes second shall be paid
at least 5% of the second place winner's share of the
gross purse.
c) A jockey whose horse finishes third shall be paid
at least 5% of the third place winner's share of the
gross purse.
2)Defines "gross purse" to mean the published amount of the
purse before any deductions.
EXISTING LAW
Existing law establishes the California Horse Racing Board
(CHRB) which generally regulates horse racing in the state,
including setting riding fees for jockeys that apply in the
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absence of an agreement regarding riding fees to the
contrary. Existing law provides that jockeys must be
licensed by the CHRB.
Existing law requires the 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.
Existing law provides, effective January 1, 2010, the
minimum amount awarded to the jockey who finishes second or
third in a race shall be increased by ten dollars ($10)
over the amount required to be paid on December 31, 2009.
Effective January 1, 2012, the minimum amount awarded to
the jockey who finishes second or third in a race shall be
increased by five dollars ($5) over the amount required to
be paid on December 31, 2011.
Existing law pertaining to the minimum amount awarded to
jockeys finishing second or third applies to races in which
the purse is $9,999 or less.
BACKGROUND
Purpose of AB 1226: Currently, Horse Racing Law requires
that the CHRB establish the minimum jockey fee that jockeys
earn if a horse they are riding finishes first, second, or
third. This measure, instead, would establish those
minimums in statute by requiring that winning jockeys in a
stakes race be paid a percentage, as specified, of the
gross purse. However, it does not prohibit the CHRB from
increasing that minimum above the statutory minimums. In
addition, this measure would define in statute the term
"gross purse" for purposes of this new Section of law.
This change is expected to result in an increase in
California jockey fees for the winning horses in a stakes
race. Additionally, the owners' entry costs would no
longer be subtracted from the Win Purse before the jockey
fee is calculated.
Arguments in Support: Proponents note that this measure
would conform California law to the standard in most other
racing states by requiring that the fees paid to jockeys
whose horses finish first, second or third be a percentage
of the listed purse amount. Proponents contend that
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existing law is unfair to jockeys and effectively requires
jockeys to subsidize the fees that owners pay. Proponents
estimate that, in the 2012 Breeders' Cup race, held at
Santa Anita Racetrack, jockeys received over $80,000 less
in winnings than they did when the race was run in Kentucky
(Churchill Downs).
California Jockeys are Independent Contractors : 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.
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.
Qualifications to be a Jockey : Under CHRB rules, no person
under 16 years of age shall be granted neither a jockey's
license nor a license as an 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, the 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.
Staff Comments: Horse racing is a dangerous sport and 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, duck or bolt
suddenly for no apparent reason. Over the years, numerous
riders have been killed while riding at California
racetracks. Almost every jockey riding today has had
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broken bones and a brush with death - some of whom return
from injuries to ride again, while others have been
permanently disabled.
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.
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 and 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 ambulances, safer starting gates,
safety rails, and other important concessions.
PRIOR/RELATED LEGISLATION
AB 1423 (Governmental Organization), 2013-14 Session.
Would correct an oversight in existing Horse Racing Law
governing the distribution of funds from advanced deposit
wagering for harness racing by the California Exposition
and State Fair (Cal Expo) and add clarity with respect to
the time-frame for distribution of exchange wagering
revenues that provide health and welfare benefits to
jockeys and their dependents. (Pending in this Committee)
AB 649 (Ma), Chapter 605, Statutes of 2007. Established
in Horse Racing Law, a pay scale for the minimum jockey
riding fees by the CHRB.
AB 1180 (Torrico), Chapter 329, Statutes of 2005. Among
other things, established various procedures, requirements,
and standards for jockeys who are licensed by the CHRB to
ride racehorses at racetracks throughout the state.
.
AB 701 (Jerome Horton), Chapter 40, Statutes of 2004.
Among other things, generated new funds to be used to
defray the costs of workers' compensation insurance
incurred in connection with the horse racing industry by
increasing the amount of the take-out by one-half of 1%
percent in order to fund the payment.
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SUPPORT: As of June 21, 2013:
California Teamsters
Jockeys' Guild
OPPOSE: None on file as of June 21, 2013.
FISCAL COMMITTEE: Senate Appropriations Committee
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