BILL ANALYSIS
AB 856
Page 1
Date of Hearing: April 25, 2001
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Paul Koretz, Chair
AB 856 (Wesson) - As Introduced: February 22, 2001
SUBJECT : Horse racing.
SUMMARY : Establishes a legal framework for collective
bargaining for racetrack backstretch employees. Requires
trainers to maintain certified payroll records, and establishes
a payroll audit program by the Labor Commissioner. Establishes
a program to adopt and enforce standards for housing provided to
backstretch employees at licensed racetracks. Specifically, this
bill :
1)Establishes a system for collective bargaining for racetrack
backstretch, based on the Legislatures findings, among others,
that the National Labor Relations Board has formally declined
to assert jurisdiction over horse racing.
2)Provides that California Horse Racing Board (Board) shall
oversee the conduct of a union recognition procedure for
backstretch employees, as specified.
3)Provides for the right to organize. Prohibits organizations
of trainers or horsemen from using funds from pari-mutuel
wagering to advocate any position with respect to
unionization. Prohibits coercion and retaliation by employers
and employees. Provides a union reasonable access, as
specified, to backstretch employees.
4)Requires the Board to provide the union a list, as specified,
of backstretch employees. Establishes a procedure for a labor
union to request Board recognition as the exclusive bargaining
agent for backstretch employees upon collection of signed
cards from a majority of the workers in a defined bargaining
unit. When a union claims to represent a majority of the
employees in such a unit, a neutral party must be selected by
the Board to validate the employee authorization cards
submitted by the union. Upon the validation of these cards,
the Board must recognize that union as the collective
bargaining agent for those workers.
5)Establishes a procedure for the Board to conduct an election
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among employer trainers for the selection of an agent to
represent the interests of the trainers in a multiemployer
agreement. Establishes a procedure for a trainer to opt out
of a multi-employer bargaining procedure, but if a majority of
his/her employees indicate a desire to join a union, the
trainer must bargain in good faith. If less than a majority
of the trainers' workers express a desire to join a union, the
trainer is not subject to the bargaining order, but the
workers have one year to get a majority of the employees to
sign union authorization cards.
6)The bill provides for a decertification process for employees
that no longer desire to be represented by the union.
7)Allows for a labor union and organization of trainers or
horsemen to enter into a mutually acceptable agreement that
may substitute for the provisions of this bill. This bill,
however, does not require that parties enter into any labor
agreement, provided each party is negotiating in a good faith
effort to reach an agreement.
8)Authorizes the Board to require the parties to submit to
binding arbitration, or to contract with state mediation and
conciliation services relating to this issue, in the event of
an impasse in labor negotiations.
9)Requires the Board to provide that labor agreements under
these provisions are binding upon every applicable licensee.
Provides that a horseman or trainer who has a separate
agreement with the union shall not be required to be a party
to a multiemployer collective bargaining agreement.
10)Requires the Labor Commissioner (Commissioner) to notify the
Board of any labor violations by a licensee committed during
the course of such licensed activity, and includes labor law
violations as a condition that may be considered by the Board
in the suspension or revocation of a license.
11)Requires trainers to keep accurate payroll records of their
employees that would be available for review by the
Commissioner and the employee, as specified. Except for
trainers covered by a collective bargaining agreement, the
Board must require, as a condition of licensure, that copies
of certified payroll records be filed with the Board.
Requires the Commissioner to establish a program to audit
these records at least once every three years to ensure
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compliance.
12)Requires the Board to develop housing standards that protect
the health and safety and general welfare of the backstretch
workers living at the racetrack and the horses in their care.
Prohibits the Board from licensing racing associations to
conduct a race meeting until an inspection has taken place to
ensure compliance with the housing requirements. Requires an
annual inspection is required to be conducted by Board in
conjunction with either the Department of Housing and
Community Development or the appropriate local housing
authority.
13)Provides that when a statewide majority of backstretch
workers choose to be represented by a union, either the
horsemen owners or trainers, where appropriate, must submit a
plan to the Board for the administration of the existing
pension program by a joint labor-management committee. This
bill additionally requires the existing health and welfare
fund board to be expanded to include two holders of
backstretch employee licenses, or, if there is a union, two
union representatives.
14) Redirects an additional 30 % of charity racing day proceeds
to be distributed to charities associated with the horse
racing industry.
EXISTING LAW
1)Provides that the National Labor Relations Board (NLRB) has
declined jurisdiction over the horse racing industry.
2)Establishes the Commissioner as Chief of the Division of Labor
Standards Enforcement in California, with specified duties to
enforce laws regarding wages, hours, and working conditions of
employees.
3)Requires the Board to license and regulate horseracing
industry in California, and requires the licensure of various
persons and entities associated with this industry.
4)Imposes specified requirements on the operation of racetracks
and backstretch facilities, and establishes pension funds and
welfare funds for the benefit of backstretch personnel and
horsemen.
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FISCAL EFFECT : Unknown
COMMENTS :
1)This bill establishes a program to permit backstretch workers
to participate in collective bargaining, and enacts new
provisions to improve enforcement of labor laws and housing
conditions for backstretch workers.
2)The Los Angeles Times, and other media, reported in 2000 on
widespread labor law violations and substandard housing
conditions for racetrack backstretch workers. This
Committee, along with the Committee on Governmental
Organization, held a joint informational hearing on these
issues. The Labor Commissioner and other witnesses
corroborated the media reports of labor law violations and
substandard housing conditions.
3)AB 2760 (Wesson) from 2000 contained identical language to
this bill. However, AB 2760 also contained an authorization
for account wagering on the internet. AB 2760 passed, but
was vetoed by the Governor who stated: "This bill would amend
current statute to allow Internet and telephone wagering on
horse races and add various provisions to govern those
activities. The bill would also provide new protections for
racetrack "backstretch" employees including badly needed
standards for living conditions such as housing, establishment
of a health and welfare fund, and the right to organize for
collective bargaining purposes. If this bill contained only
the backstretch provisions, I would sign it. However, I
cannot support the provisions lifting the State ban on
Internet and telephone wagering." AB 2760 was the product of
extensive negotiations involving labor organizations, racing
associations, owners and trainers.
4)Backstretch workers are not presently represented by a union,
nor are they afforded any of the protections accorded by both
the National Labor Relations Act and the state Agricultural
Relations Act. Backstretch workers are generally employees
of trainers who take care of the horses, and are classified as
grooms, exercise riders, and hotwalkers. It is estimated that
there are approximately 3,500 backstretch workers employed at
California's racetracks.
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5)Supporters state that AB 856 will improve labor and housing
conditions for backstretch workers at California racetracks.
It provides for a fair and equitable system of card-check
recognition for union representation of backstretch workers.
It also provides for trainers to keep certified payroll
records, as is required of public works contractors. It
provides that pensions and health and welfare funds now
existing in the industry will be managed in accordance with
applicable federal laws. For too long these low paid
immigrant workers have been hidden from the public view and
ignored by state and local agencies.
6)Opponents argue that this bill could place an excessive burden
on California's racing industry by potentially making it more
costly for trainers and owners to train and own horses in
California. The trainers' organization notes that they were
neutral on last year's AB 2760 due to the inclusion of the
account wagering authorization, which would have produced
additional wagering revenues for the various segments of the
racing industry. Opponents also contend that the majority
card check means of organizing, as opposed to an election,
unfairly favors a union in any such organizing campaign.
Opponents also object to the provisions in the bill that place
additional payroll reporting and auditing requirements on
trainers that are not subject to a collective bargaining
agreement.
7)Opponents have also raised concerns about the propriety of
requiring the Board to provide the union a list of
backstretch employees, that includes information relating to
license type, employer, addresses and telephone numbers, and
location of employment. Supporters state that similar
procedures are followed under collective bargaining statutes
including the National Labor Relations Act and the
Agricultural Labor Relations Act.
REGISTERED SUPPORT / OPPOSITION :
Support
California Labor Federation, AFL-CIO
California Teamsters Public Affairs Council
Jockey's Guild
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Opposition
Bay Meadows
California Thoroughbred Breeders Association
California Thoroughbred Trainers
Golden Gate Fields
Santa Anita Park
Thoroughbred Owners of California
Analysis Prepared by : Ralph Lightstone / L. & E. / (916)
319-2091