BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    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  
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             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  

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          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  

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          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

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