BILL ANALYSIS
AB 856
Page 1
Date of Hearing: May 16, 2001
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Carole Migden, Chairwoman
AB 856 (Wesson) - As Amended: April 30, 2001
Policy Committee: Governmental
Organization Vote: 12-4
Labor and Employment 4-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill:
1)Establishes a system for collective bargaining for racetrack
backstretch employees and directs the California Horse Racing
Board (CHRB) to oversee a union recognition procedure.
2)Requires the Labor Commissioner to notify the CHRB of any
labor violations by a licensee and includes such violations as
a condition that may be considered in the suspension or
revocation of a license.
3)Requires trainers to keep accurate payroll records of their
employees that would be available for review by the
commissioner and the employee, as specified, and requires the
commissioner to establish a program to audit trainers' payroll
records to ensure compliance with the Labor Code and
applicable wage orders. All trainers are to be audited within
the first four years after the measure take effects, and at
least 15 percent are to be audited annually thereafter.
4)Requires the CHRB 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.
5)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, and requires
an annual inspection by the board in conjunction with either
the Department of Housing and Community Development or the
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appropriate local housing authority.
6)Authorizes the board to assess a fee on racing associations to
cover the costs of the housing inspections.
FISCAL EFFECT
1)The Department of Industrial Relations will incur General Fund
costs of around $250,000 annually to perform the audits in the
initial four years and annual costs of around $150,000
thereafter.
2)The CHRB will incur one-time costs of about $30,000 to update
its computer system in order to maintain required information
on backstretch employees.
3)The CHRB will incur ongoing costs of about $85,000 for the
employee housing inspections. These costs could be offset by
fees if the board elects to impose the fee.
COMMENTS
1)Background . "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.
2)Purpose . In response to a series of media reports that
detailed labor violations and substandard housing conditions
at California's racetracks, the author and supporters of this
bill developed this proposal to address a number of issues
affecting the California racing industry. The media reports
suggested that some of these workers are not being properly
compensated regarding minimum wage and overtime payments, and
often live in equipment rooms not designed for residency.
These reports have been confirmed by the Labor Commissioner
and housing inspectors.
3)Prior Legislation . Last year, AB 2760 (Wesson) contained
identical language, but also contained an authorization for
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account wagering, which was intended to help the state's
racing industry capture wagering revenue lost to out-of-state
and offshore betting systems. The governor vetoed that bill,
objecting to the expanded wagering provisions. The governor
stated, however, that he would sign a bill that contained only
the backstretch provisions.
4)Opposition . The associations of trainers, breeders, and
owners are opposed to the bill. 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.
Analysis Prepared by : Chuck Nicol / APPR. / (916)319-2081