BILL ANALYSIS
Bill No:
AB 856
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Edward Vincent, Chair
2001-2002 Regular Session
Staff Analysis
AB 856 Author: Wesson
As Amended: July 2, 2001
Hearing Date: July 3, 2001
Consultant: Steve Hardy
SUBJECT
Horse Racing: Backstretch Employees
DESCRIPTION
AB 856 would state findings and declarations of the
Legislature regarding the employment rights of racetrack
backstretch employees and the conduct of a union
representation election and related issues as follows:
1. Finds and declares individual workers have full freedom
regarding the terms and conditions of their employment,
and the intent of the Legislature to establish an orderly
procedure for backstretch employees to exercise their
statutory rights to organize a labor union.
2. Requires the California Horse Racing Board (CHRB) to
oversee the conduct of a union recognition election under
the following conditions:
a) Provides that trainers can choose to be part of a
multiple employer bargaining unit, or negotiate
individually with the union after the election. No
neutrality agreement is required, but coercion and
threats as specified, are prohibited.
b) The union will collect cards, needing a 30%
showing to request an election, and further will have
described rights to access backstretch employees
covered by this act.
AB 856 (Wesson) continued
Page 2
c) Requires the CHRB to provide the union with a
list of all backstretch workers once the union has
acquired the signatures of at least 125 backstretch
employees as specified.
d) Provides that an election be conducted by the
California State Mediation and Conciliation Service
(CSMCS), once the union makes a 30% showing of signed
cards. If a majority of the trainer's employees vote
in favor of the union, then the trainer is required to
bargain with the union as specified.
e) Any disputes about the conduct of the election
will be submitted to arbitration by an arbitrator
mutually agreeable to the parties, with hearings to be
held within 72 hours of written notice to the parties.
The arbitration panel will be selected by the
Executive Director of the CHRB from names submitted by
the CSMCS. The arbitrator will have authority to
order any remedies described, and either party may
bring an action in state court to enforce the
arbitrator's decision, and be entitled to recover
reasonable fees or costs as specified.
3. Nothing in the above provisions will prevent a labor
union and an organization of horsemen or trainers, from
entering into a mutually acceptable agreement that can
substitute for the requirements of those provisions.
Also, nothing in the act requires parties to enter into
any labor agreement.
4. Requires the CHRB to provide that labor agreements
reached under this act are binding upon all applicable
horsemen or trainers, with no horseman or trainer
required to be a party to a multiyear collective
bargaining agreement as specified.
5. Allows the CHRB to establish reasonable rules for
representatives of unions to meet backstretch workers
during working and nonworking hours as, described.
6. Requires the labor Commissioner to notify the CHRB of
Labor Code violation findings, when committed by a person
AB 856 (Wesson) continued
Page 3
licensed pursuant to this act as specified.
7. Requires the CHRB to adopt emergency regulations in
accordance with the Administrative Procedure Act, to
establish standards as described, governing employee
housing provided to backstretch personnel at licensed
racetracks. These emergency regulations will be replaced
by permanent regulations within 18 months of their
adoption. Every racing association must be in compliance
with these housing standards by January 1, 2003.
8. Provides that as of January 1, 2003, the CHRB in
conjunction with the Department of Housing and Community
Development, and either a local housing authority or
local environmental health authority, will annually
inspect the living conditions of backstretch employee
housing to ensure compliance with CHRB standards. No
license to conduct racing will be issued to a racing
association, unless the CHRB has inspected existing
housing conditions on the racetrack's backstretch and
determined that the track is in compliance.
9. Requires each trainer to keep accurate payroll records
as described.
10. These payroll records will be certified and available
at the principal office of the trainer for inspection at
reasonable hours as specified.
11. The CHRB, except as noted, will require as a condition
of issuing or renewing a trainer's license, that a copy
of all payroll records noted above, be filed with the
CHRB as described.
12. Provides that the pension plan for backstretch
personnel will be administered by a joint
labor-management committee as specified, with one-half of
the representatives being members of labor organizations
who are the exclusive bargaining representative for
backstretch employees, and one-half will be
representatives of the trainer's organizations. The CHRB
AB 856 (Wesson) continued
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will appoint a representative from bona fide labor
organizations having an expertise in administration in
union pension plans in the absence of exclusive
bargaining representatives for backstretch employees.
13. Provides that the health and welfare fund for
backstretch personnel will be administered by a board
consisting of two representatives of backstretch
personnel, appointed by the labor organizations
representing these employees, and two representatives of
the trainer's organizations. The CHRB will, in the
absence of backstretch representatives from exclusive
bargaining units, appoint representatives from bona fide
labor organizations having expertise in welfare fund
administration.
14.Increases from 20% to 50%, the amount allowed to be
contributed from charity racing days directly to
charities associated with the horse racing industry.
15.Provides that provisions of this act are severable as
specified.
16. Contains a cost disclaimer clause.
AB 856 (Wesson) continued
Page 5
PRIOR LEGISLATION
AB 2760 (Wesson) 1999 2000 Session. Almost identical
measure to this bill. (Vetoed by the Governor)
EXISTING LAW
Existing law authorizes wagering on the result of live and
simulcast horse races, subject to the regulation and
oversight of the California Horse Racing Board, and
requires the licensure of various persons and entities
associated with this industry.
Existing law also imposes specified requirements on the
operations for race tracks, backstretch facilities,
stabling and vanning services, and establishes pension
funds and welfare funds for the benefit of backstretch
personnel and horsemen/women.
Existing law provides that no license to conduct a horse
racing meeting will be issued unless the track has been
inspected and approved by, the CHRB as to specified
racetrack safety standards within 30 days prior to the date
of application.
BACKGROUND
The author's office reports that the California horse
racing industry is comprised of horse owners, breeders,
trainers, racing associations and their employees, county
fairs and district agricultural associations, as well as
the bettors/fans, and the State of California. These
parties are linked through the parimutuel pool, which
represents the total amount of money wagered on a horse
race (Handle), and is the primary source of funding for the
industry.
Wagering on horse racing was approved by constitutional
amendment in 1933, principally as a means to generate
income for the state and to fund safety and maintenance
projects at California's state and local fairgrounds. In
1999, approximately $44 million in license fees was
budgeted to support the operations of the California Horse
AB 856 (Wesson) continued
Page 6
Racing Board (CHRB) and the Division of Fairs and
Expositions within the Department of Food and Agriculture
for the benefit of 81 county and agricultural fairs located
throughout the State.
By some estimates, the racing industry employs upwards of
50,000 people, with many of them at California racetracks
during the time that live racing is running. Racetracks
are multi-faceted operations that feature various
employment categories, most of which are represented by
unions.
"Backstretch" workers are not presently represented by a
union, and generally are employees of trainers that take
care of the horses, and consist of grooms, exercise riders,
and hotwalkers. It is estimated that there are
approximately 3,500 backstretch workers employed at
California's racetracks, who must be licensed by the CHRB.
In many cases, backstretch employees have been permitted to
stay in equipment or "tack" rooms adjacent to stables.
Backstretch workers often live in the backstretch to be
near the horses not only to wash them down after a race,
but also to act quickly if a sudden illness or other health
problem should occur to these most valuable investments.
Backstretch conditions for both housing and health
conditions vary from track to track. Bay Meadows and
Hollywood Park have dormitories at their facilities, while
most of the other tracks use stables and tack rooms to
house the workers.
CHRB regulations require the establishment of a charitable
corporation to administer a welfare fund for the benefit of
backstretch personnel. The California Thoroughbred
Horsemen's Foundation (CTHF) has been established to
provide welfare benefits to individuals working in
occupations directly related to the care of thoroughbred
horses. The categories, programs, and activities for which
welfare funds may be expended include health care services,
medical and health assistance, emergency financial
assistance, and educational and recreational activities.
Last year, a series of newspaper articles called attention
to the working and living conditions of backstretch
employees, suggesting that some of these workers are not
being properly compensated regarding minimum wage and
AB 856 (Wesson) continued
Page 7
overtime payments, as well as living in tack rooms not
designed for residency.
Supporters believe that for many years, the California
horse racing industry has enjoyed broad exemptions from
basic housing and labor laws. Unfortunately, these
exemptions have resulted in substandard living and working
conditions for many workers. AB 471 directly addresses
this issue by providing labor and housing law reforms that
will give backstretch workers the protections they need.
SUPPORT: Service Employees International Union
Del Mar Thoroughbred Club
Oak Tree Racing Association
California Teamsters Public Affairs Council
Hotel Employees, Restaurant Employees
International Union
Bay Meadows Racing Association
Los Angeles Turf Club, at Santa
Anita
Golden Gate Fields Racing
Association
Jockeys' Guild
OPPOSE: None registered as of 6/29/01
FISCAL COMMITTEE: Senate Appropriations
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