BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 364|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AB 364
Author: Gipson (D)
Amended: 9/3/15 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SENATE GOVERNMENTAL ORG. COMMITTEE: 10-0, 5/10/16
AYES: Hall, Berryhill, Block, Galgiani, Glazer, Hernandez,
Hill, Lara, McGuire, Vidak
NO VOTE RECORDED: Bates, Gaines, Hueso
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Horse racing: advance deposit wagering
SOURCE: The Jockeys Guild
DIGEST: This bill clarifies that a jockey is automatically
enrolled in the existing jockeys retirement plan system when he
or she applies for and receives a license by the California
Horse Racing Board (CHRB) to race in California.
ANALYSIS:
Existing law:
1)Authorizes advance deposit wagering (ADW) to be conducted,
with the approval of the CHRB and requires the CHRB to develop
and adopt rules to license and regulate all phases of
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operation of ADW.
2)Authorizes a racing association, a fair, a satellite wagering
facility, or a minisatellite wagering facility to enter into
an agreement with an ADW provider to accept and facilitate the
placement of any wager at its facility that a California
resident could make through that ADW provider.
3)Requires that amounts distributed under ADW provisions be
proportionally reduced by an amount equal to 0.00295
multiplied by the amount handled on advance deposit wagers
originating in California for each racing meeting, except for
harness racing meetings, provided that the amount of this
reduction not exceed $2,000,000. The method used to calculate
the reduction in proportionate share must be approved by the
CHRB and deducted and distributed in specified amounts,
including 50% of the money to the CHRB to establish and
administer jointly with the organization certified as the
majority representative of California-licensed jockeys, a
defined contribution retirement plan for California-licensed
jockeys who retired from racing on or after January 1, 2009.
This bill:
1)Provides that a person becomes a participant in the jockeys'
retirement plan when he or she is licensed as a jockey in
California.
2)Contains an urgency clause, to take effect immediately.
3)Makes minor code maintenance changes.
Background
According to the author's office, the purpose of the bill is "to
ensure that a jockey shall become a participant in the existing
retirement plan when he or she is licensed by the CHRB to be a
jockey in California. By streamlining the jockey retirement
plan within the licensing process, this bill will ensure that
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every jockey receives his or her fair share of earned benefits."
A portion of the revenue generated by ADW is deposited into a
trust jointly managed by the Jockeys' Guild and the CHRB. All
licensed California jockeys are eligible to participate in the
plan and a contribution is made for every race that a jockey
rides. The pension fund has no unfunded liability, as it is a
defined contribution plan - it is similar to a 401K plan. Each
jockey has an individual account, which becomes active after
riding in their first horse race in California. When a jockey
retires, he or she receives an annuity purchased with the
balance in their particular account, which pays them a monthly
benefit. The funds are invested by the trustees and the
contributions and earnings are annually allocated to each jockey
on a per race basis. The current balance in the jockey pension
plan is approximately $4.7 million.
Related/Prior Legislation
AB 1539 (Governmental Organization Committee, 2015) is similar
to AB 364. (Died in Assembly Appropriations Committee)
AB 1226 (Hall, Chapter 434, Statutes of 2013) required 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.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT: (Verified 6/14/16)
The Jockeys' Guild (source)
OPPOSITION: (Verified 6/14/16)
None received
ARGUMENTS IN SUPPORT: Writing in support, the Jockeys' Guild
states, "Since many jockeys work in several states or
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periodically in California, as a practical matter, if jockeys
are not enrolled in the retirement plan when they are licensed,
it may be impossible to find them to get them to sign enrollment
forms. This bill will insure that no jockeys fall through the
cracks and inadvertently lose their benefits subjecting the
State of California to potential liability."
Prepared by:Arthur Terzakis / G.O. / (916) 651-1530
6/15/16 17:24:42
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