BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1226| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1226 Author: Hall (D) Amended: 4/8/13 in Assembly Vote: 21 SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 10-0, 6/25/13 AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, De León, Galgiani, Hernandez, Lieu, Padilla NO VOTE RECORDED: Correa SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 75-0, 5/9/13 (Consent)- See last page for vote SUBJECT : Horse racing: jockey riding fees SOURCE : Author DIGEST : This bill adds a new Section to Horse Racing Law that establishes minimum jockey fees in a race with a gross purse of more than $9,999. ANALYSIS : Existing law: 1. 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 absence of an agreement regarding riding fees to the contrary. Existing CONTINUED AB 1226 Page 2 law provides that jockeys must be licensed by the CHRB. 2. 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. 3. Provides, effective January 1, 2010, the minimum amount awarded to the jockey who finishes second or third in a race shall be increased by $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 $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. This bill adds a new Section to Horse Racing Law that establishes minimum jockey fees in a race with a gross purse of more than $9,999.00. Specifically, this bill: 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. Background California jockeys are independent contractors . Jockeys in CONTINUED AB 1226 Page 3 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 will be licensed as a jockey or apprentice jockey. No person who has never ridden in a race at a recognized meeting will 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 8/9/13) California Teamsters Jockeys' Guild ARGUMENTS IN SUPPORT : Proponents note that this bill conforms state 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 existing law is unfair to jockeys and effectively requires jockeys to subsidize the fees that owners pay. Proponents estimate that, in the 2012 CONTINUED AB 1226 Page 4 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). ASSEMBLY FLOOR : 75-0, 5/9/13 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer, Levine, Linder, Lowenthal, Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Torres, Wagner, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Donnelly, Holden, Logue, Waldron, Vacancy MW:d 8/12/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED