BILL ANALYSIS Ó
AB 364
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB
364 (Gipson)
As Amended September 3, 2015
2/3 vote. Urgency
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|ASSEMBLY: | |(May 22, 2015) |SENATE: |38-0 |(August 1, 2016) |
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(Vote not relevant)
Original Committee Reference: G.O.
SUMMARY: 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.
The Senate amendments delete the Assembly version of this bill,
and instead:
1)Provide that a person becomes a participant in the jockeys'
retirement plan when he or she is licensed as a jockey in
California.
2)Make minor code maintenance changes.
AB 364
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3)Contain an urgency clause, to take effect immediately.
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
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.
AS PASSED BY THE ASSEMBLY, this bill added the "Belmont Derby
Invitational" to the group of stake races in Horse Racing Law
which are exempt from the 50-race per day limit on imported
races.
AB 364
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FISCAL EFFECT: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS:
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
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.
In support: Writing in support, the Jockeys' Guild states,
"Since many jockeys work in several states or 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."
AB 364
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There is no opposition on file.
Prior Legislation: AB 1539 (Governmental Organization
Committee) of 2015 is similar to this bill. (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.
Analysis Prepared by:
Eric Johnson / G.O. / (916) 319-2531 FN:
0003606