BILL NUMBER: SB 239 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 22, 1999
AMENDED IN SENATE MARCH 17, 1999
INTRODUCED BY Senator Perata
JANUARY 26, 1999
An act to add Article 8.7 (commencing with Section 19585) to
Chapter 4 of Division 8 of the Business and Professions Code,
relating to workers' compensation.
LEGISLATIVE COUNSEL'S DIGEST
SB 239, as amended, Perata. Workers' compensation: jockeys.
Existing workers' compensation law generally requires employers to
secure the payment of workers' compensation for injuries incurred by
their employees that arise out of or in the course of employment,
and defines "employer," "employee," and "independent contractor" for
these purposes.
This bill would authorize the establishment of a nonprofit public
benefit corporation to be known as the California Jockey Injury
Compensation Fund, which would be responsible for securing workers'
compensation insurance coverage on a blanket basis on behalf of all
licensed trainers for the benefit of all jockeys, apprentice jockeys,
exercise riders, and pony riders licensed by the California Horse
Racing Board and performing services at a facility recognized
and approved by the California Horse Racing Board . The bill
would require the fund to make this insurance coverage available and
in effect by January 1, 2001. The fund would be governed by a board
of directors, as specified, which would be required to submit a plan
of operation to the California Horse Racing Board for
approval.
This bill would prohibit the California Horse Racing Board from
renewing the license of any trainer that does not have in
place a policy of workers' compensation insurance
unless he or she has produced a certificate of workers' compensation
insurance coverage issued by the fund. The bill would also
provide that, for workers' compensation purposes only, licensed
trainers, any licensed owner reimbursing a trainer for the cost of
coverage, and the fund , shall individually and
collectively be considered the employers of licensed jockeys,
apprentice jockeys, exercise riders, and pony riders, and that
licensed jockeys, apprentice jockeys, exercise riders, and pony
riders shall be considered the employees of licensed trainers, any
licensed owner reimbursing a trainer for the cost of coverage, and
the fund. The bill would also authorize the board of directors, upon
approval by the California Horse Racing Board, to accept the
addition of other classifications of employees of licensed trainers
for the purpose of providing workers' compensation insurance coverage
at the beginning of each plan year .
The bill would enact other related provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 8.7 (commencing with Section 19585) is added to
Chapter 4 of Division 8 of the Business and Professions Code, to
read:
Article 8.7. California Jockey Injury Compensation Fund
19585. As used in this article, the following terms have the
following meanings:
(a) "Board of directors" means the board of directors of the fund.
(b) "Fund" means the California Jockey Injury Compensation Fund.
19585.1. There is authorized to be established a nonprofit
corporation to be known as the California Jockey Injury Compensation
Fund. The fund shall be subject to the provisions of this article
and the Nonprofit Public Benefit Corporation Law (Part 2 (commencing
with Section 5110) of Division 2 of Title 1 of the Corporations
Code), except that if there is a conflict between this article and
that law, this article shall prevail. The fund shall perform its
functions under the plan of operation established and approved under
this article and shall exercise its powers through a board of
directors established under this article.
19585.2. The board of directors shall consist of seven members,
who are to be constituted as follows: one member from northern
California and one member from southern California selected from a
recognized organization representing the majority of thoroughbred
trainers; one member selected from a recognized organization
representing the majority of quarter horse trainers; one member from
northern California and one member from southern California selected
from an organization representing the majority of thoroughbred
owners; one member selected from a recognized organization
representing the majority of quarter horse owners; and one member
selected from the organization certified by the board to represent
the majority of jockeys pursuant to subdivision (b) of Section
19612.9.
19585.3. For purposes of organizing the fund and filling
vacancies on the board, the boards of directors of the organizations
described in Section 19585.2 shall designate to the board their
selections for the board of directors. These initial members of the
board of directors shall serve as incorporators and shall take those
actions necessary to establish the fund under the Nonprofit Public
Benefit Corporation Law. The board may receive loans from any lawful
source to defray the cost of incorporation and establishment of the
fund. The board of directors shall serve staggered two-year terms.
Whenever a vacancy occurs, the board of directors may appoint a
temporary board member meeting the qualifications set forth in
Section 19585.2 to serve until a permanent member is appointed. In
no event shall the board of directors allow the number of members to
fall below that needed to constitute a quorum.
19585.4. The board of directors shall annually elect from its
members a chairperson, a vice chairperson, and other officers as
required by law. The vice chairperson shall act as the chairperson
in the absence of the chairperson. Each member of the board of
directors shall have equal voting rights. Members of the board of
directors shall serve without compensation for their services, but
shall be entitled to reimbursement for actual and necessary expenses
incurred in the performance of their official duties. Members of the
board of directors may engage in private employment or in a
profession or business, however, no member shall be engaged in a
business or occupation involving the sale of workers' compensation
insurance. The affirmative vote of four members of the board of
directors shall be necessary for the transaction of any business or
the exercise of any power or function of the fund. The board of
directors may delegate to one or more of its members, or to its
officers, agents, or employees, those powers and duties as it may
deem appropriate.
19585.5. The fund shall not contribute to, or otherwise support
or oppose, any ballot measure, political party, or candidate for
elective public office.
19585.6. The purpose of the fund shall be to secure workers'
compensation insurance coverage on a blanket basis on behalf of all
California licensed trainers through a system of competitive bidding
for the benefit of all licensed jockeys, apprentice jockeys, exercise
riders, and pony riders performing services at a facility
recognized and approved by the California Horse Racing Board .
Licensed trainers shall purchase workers' compensation insurance
exclusively through the fund. The board of directors of the fund
shall have the power, upon approval by the California Horse Racing
Board, to accept at the beginning of each plan year the
addition of other classifications of employees who are employed by
licensed trainers for the purpose of providing workers' compensation
insurance coverage.
19585.7. The board shall not renew the license of any
trainer unless he or she has in place a policy of workers'
compensation insurance issued pursuant to this article.
trainer unless he or she has produced a certificate of workers'
compensation insurance coverage issued by the fund in accordance with
this article. The board shall immediately suspend the license
of any trainer who fails to keep in effect the policy of workers'
compensation insurance required by this section. Every trainer shall
permit the fund, and its agents, officers, or
employees, and the insurer, to have access to financial
records necessary to ascertain the cost of providing workers'
compensation insurance coverage or to provide workers' compensation
insurance benefits as required by this article.
19585.8. In order to pay the costs of the insurance required by
this article and by the workers' compensation law, the fund shall
ascertain the total funding necessary and shall establish the premium
assessments that are to be paid annually by each licensed
trainer. The premiums to be paid by each trainer may take into
consideration the individual accident experience of trainers and
other factors normally considered in the determination of workers'
compensation insurance premiums. paid annually and
equally by each licensed trainer. The fund may award dividends or
awards to participants in the plan who promote safe working
conditions.
19585.9. The fund shall submit to the board a plan of operation
and any amendments thereto necessary or suitable to assure the fair,
reasonable, and equitable administration of the fund. The plan of
operation and any amendments thereto shall constitute the bylaws of
the fund. Amendments, if any, relating to premium assessments for
the subsequent year, other than deficiency assessments, shall be
submitted to the board no later than November 15 of each year. The
plan of operation and any amendments thereto shall become effective
upon approval by the board and shall be published in one or more
trade publications likely to be obtained by trainers and owners. If
the fund fails to submit a suitable plan of operation within 180 days
following the date this article becomes operative, or if at any time
thereafter the fund fails to submit suitable amendments to the plan,
the board shall, after notice and hearing, adopt any reasonable
rules that may be necessary or advisable to effectuate the provisions
of this article. Those rules shall continue in force unless
modified by the board or superseded by a plan submitted by the fund
that is approved by the board. The fund shall ensure that workers'
compensation insurance coverage is available and in effect by January
1, 2001.
19585.10. In addition to any other requirements of this article,
the plan shall do all of the following:
(a) Establish procedures for the handling of assets of the fund.
(b) Establish regular places and times for meetings of the board
of directors.
(c) Establish procedures for records to be kept of all financial
transactions of the fund, its agents, and the board of directors.
(d) Establish a formula for determining the appropriate amount of
premiums to be paid by trainers, any deficiency assessments, and
refunds of premiums to be made, as appropriate.
(e) Contain any additional provisions as the board or fund may
deem necessary or appropriate for the execution of the powers and
duties of the fund.
19585.11. The fund shall be subject to examination and regulation
by the board. The fund shall submit to the board, not later than
May 1 of each year, an audited financial statement for the preceding
calendar year in a form approved by the board, and a report of its
activities during the preceding calendar year.
19585.12. The fund shall purchase any insurance necessary to
protect any director, officer, or other representative from any
liability that may arise.
19585.13. Licensed trainers, any licensed owner who reimburses a
trainer for the cost of providing workers' compensation insurance
coverage, and the fund , shall individually and
collectively be considered the employer, within the meaning of
Section 3300 of the Labor Code, of all licensed jockeys, apprentice
jockeys, exercise riders, and pony riders. Licensed jockeys,
apprentice jockeys, exercise riders, and pony riders shall be
considered the employees, within the meaning of Section 3351 of the
Labor Code, of all licensed trainers, any licensed owner who
reimburses a trainer for the cost of providing workers' compensation
insurance coverage, and the fund, for the purpose of the securing of
workers' compensation coverage pursuant to this article. Nothing in
this article is intended to establish, nor shall be construed as
establishing, an employer-employee relationship for any other purpose
other than the securing of the workers' compensation insurance
coverage pursuant to this article.