BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1226|
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THIRD READING
Bill No: AB 1226
Author: Hall (D)
Amended: 8/26/13 in Senate
Vote: 27- Urgency
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
requiring the California Horse Racing Board (CHRB) not to permit
any portion of any entry, nomination, or other fee paid by any
owner to be deducted from a jockey riding fee unless the entry,
nomination, or other fee is paid exclusively by the owner and
not reimbursed by any other person or entity.
Senate Floor Amendments of 8/26/13 delete the provisions
establishing minimum jockey fees and instead make it explicit
that the CHRB shall not permit any portion of an entry,
nomination, or other fee paid by an owner to be deducted from a
jockey riding fee unless the entry, nomination, or other fee is
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paid exclusively by the owner and not reimbursed by any other
person or entity. Also adds an urgency clause.
ANALYSIS :
Existing law:
1. Vests, under the Horse Racing Law, the administration of
horse racing with the CHRB and requires CHRB to set minimum
jockey riding fees.
2. Prohibits the paymaster of a racing association or racing
fair from disbursing any sum from a jockey's compensation to
any person other than the jockey, except as specified.
3. Specifies that a violation of the Horse Racing Law, where no
other penalty is expressed, is a misdemeanor.
This bill adds a new Section to Horse Racing Law that requires
the CHRB not to permit any portion of an entry, nomination, or
other fee paid by an owner to be deducted from a jockey riding
fee unless the entry, nomination, or other fee is paid
exclusively by the owner and not reimbursed by any other person
or entity.
Background
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.
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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.
Win & You're In Series . The winning horse in a "challenge race"
receives automatic selection into the championship race that
corresponds with the division of the challenge race won. An
owner whose horse wins a challenge race gets their starting fees
(the total of pre-entry fees) paid for by the Breeders' Cup,
provided the horse is Breeders' Cup-nominated. The pre-entry
fee is 1% of the purse and the entry fee to race is also 1% of
the pure. In 2013, the Breeders' Cup will offer 67 automatic
qualifying races for its 2013 World Championships, including 48
"grade" or "group 1" races around the world. The Breeders' Cup
has scheduled 14 challenge races in California for a total of
$610,000 in paid entry fees for race winners.
Comments
According to the Senate Governmental Organization Committee,
this bill essentially allows a winning jockey in California to
get paid their fair share of a winning purse if any entry,
nomination, or other fee has been paid for by any other person
or entity besides the winning horse owner. This bill generally
applies to Breeders' Cup races and that organization's "Win &
You're In Series."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/28/13)
California Teamsters
Jockeys' Guild
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ARGUMENTS IN SUPPORT : The Jockeys' Guild states, "AB 1226
would clarify that jockey riding fees (the percentage of the
purse that a jockey is paid for a winning mount) should not be
reduced to reimburse owners for certain fees they pay unless the
owner actually paid the fee. This corrects a problem that arose
in last year's Breeder's Cup race, in which jockey fees were
reduced even though the owners did not pay the fees. This
amounted to a windfall for owners and was very unfair. AB 1226
will remedy that problem."
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 8/28/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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