BILL ANALYSIS Ó
AB 1226
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1226 (Hall)
As Amended August 26, 2013
2/3 vote. Urgency
-----------------------------------------------------------------
|ASSEMBLY: |75-0 |(May 9, 2013) |SENATE: |37-0 |(September 3, |
| | | | | |2013) |
-----------------------------------------------------------------
Original Committee Reference: G.O.
SUMMARY : 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.
The Senate amendments :
1)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 paid exclusively by the owner and
not reimbursed by any other person or entity.
2)Add an urgency clause allowing this bill to take effect
immediately upon enactment.
EXISTING LAW :
1)Establishes 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.
2)Provides that jockeys must be licensed by CHRB.
3)Establishes the default riding fees for jockeys as a certain
percentage of the win purse, which is defined as the amount
paid the winning horse less the fees paid by the owner to
enter the horse in the race. Existing law also requires a
jockey who finishes second or third in a race in which the
AB 1226
Page 2
purse is $9,999 or less to be awarded a minimum amount, as
specified.
4)Requires 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.
AS PASSED BY THE ASSEMBLY , this bill established minimum jockey
fees in state law and defines gross purse (winnings) in a horse
race as the published amount of the purse prior to deductions.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This bill, as amended in the Senate is consistent
with Assembly actions.
Purpose of the bill : According to the author, current Horse
Racing Law establishes the CHRB which generally regulates horse
racing in the state, including establishing the minimum jockey
fee, that jockeys may earn if a horse they are riding finishes
first, second, or third in a race. CHRB Rule 1632, Jockey's
Riding Fee, provides a scale of jockey riding fees to be used in
the absence of a contract or special agreement. This scale
defines the pay earned by a jockey of the winning horse as 10%
of the Win Purse. For the purposes of CHRB Rule 1632 (d) Win
Purse is defined as the "the amount paid the winning horse less
the fees paid by the owner to enter the horse in the race."
The sponsor of this bill, the Jockeys' Guild states that under
Rule 1632 the "definition of Win Purse" results in less money
being paid to jockeys' when a race is won. The most extreme
example of this was when the winning jockey of the 2012
Breeder's Cup Classic, run in California, earned $10,000 less
than if the race been run at Churchill Downs in Kentucky. The
Jockeys' Guild estimates that their members received more than
$80,000 less in winnings from the 2012 Breeders' Cup races
because they were held in California. "While this represents a
small amount of money to owners and racetracks, it is a large
amount of money for our members."
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
AB 1226
Page 3
or entity besides the winning horse owner. This bill generally
applies to Breeders' Cup races and that organization's "Win &
You're In Series."
Background :
California jockeys are independent contractors : For purposes
other than workers' compensation insurance, jockeys are
independent contractors. California jockeys supply their own
equipment, choose which horses to ride, ride only those races
they elect to ride at race meets they select, and are allowed to
negotiate their own rate of compensation. (California Code of
Regulations, Title 4, Divisions 4, Rule 1632.)
The minimum wage that jockeys receive in a horse race is
established by the CHRB (per regulation) as a minimum riding
fee. Jockeys may earn additional compensation if the horse they
are racing is a winning mount, a second place mount, or a third
place mount.
According to the Jockeys' Guild, jockeys are generally not paid
for the time they work at the track in the morning while
exercising horses, but are paid a small mount fee of
approximately $50 for each losing mount in a race. Jockeys are
paid a percentage of the purse if the horse wins (10%), places
(5%), or shows (5%).
Who represents jockeys ? 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. Notable
Racing Hall of Fame members Eddie Arcaro and John Longden formed
the organization. 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. It 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.
Breeders' Cup Challenge 'Win & You're In' Series : The winning
horse in a Challenge Race receives automatic selection into the
AB 1226
Page 4
Championship race that corresponds with the division of the
Challenge Race won. A owner whose horse wins a Challenge Race
gets their starting fees (the total of pre-entry and 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 purse. In 2013, Breeders'
Cup will offer 67 automatic qualifying races for its 2013 World
Championships, including 48 grade or group 1 races around the
world. Breeders' Cup has scheduled 14 Challenge races in
California for a total value of $610,000 in paid entry fees for
race winners.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0002152