BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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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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