NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7731B
SPONSOR: Pretlow TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law and the workers' compensation law, in relation to the New
York Jockey Injury Compensation Fund, Inc.
PURPOSE:
This bill would allow The New York Jockey Injury Compensation Fund,
Inc., upon the approval of the New York State Gaming Commission, to
elect to meet its workers' compensation insurance obligations through a
form of self-insurance. This bill also would allow The New York State
Gaming Commission, to expand the mandate of the New York Jockey Injury
Compensation Fund, Inc. to secure workers' compensation insurance cover-
age for licensed employees of licensed trainers, individuals, who are
licensed and perform services for a trainer in connection with the
training of a horse on the backstretch.
SUMMARY OF PROVISIONS:
Section 1 of this bill amends Racing, Pari-mutuel Wagering and Breeding
Law 221 (6) to authorize the New York State Gaming Commission Fund,
Inc., upon the approval of the New York State Gaming Commission, to
elect to self-insure its workers' compensation insurance obligations.
Section 1 of this bill also amends Racing, Pari-mutuel Wagering and
Breeding Law 221 (6) and (7), as well as several sections of the New
York State Workers' Compensation Law to authorize The New York Jockey
Injury Compensation Fund, Inc., upon the approval of the New York State
Gaming Commission, to expand the mandate of The New York Jockey Injury
Compensation Fund, Inc. to elect to secure workers' compensation insur-
ance coverage for licensed employees of licensed trainers in addition to
jockeys, apprentice jockeys and exercise persons. The term "licensed
employees of licensed trainers" shall be defined to mean assistant
trainers, foremen, watchmen and stable employees, including grooms, and
hot walkers
JUSTIFICATION:
In July 1990, the Legislature created The New York Jockey Compensation
Fund, Inc. to provide workers' compensation insurance for jockeys,
apprentice jockeys and exercise persons, all licensed by the New York
State Gaming Commission (formerly the New York State Racing and Wagering
Board)in an efficient manner at low cost. Since 2007, due to significant
statutory increases in indemnity payments, the cost to The New York
Jockey Injury Compensation Fund, Inc. of obtaining workers' compensation
insurance has almost quadrupled. This bill will grant The New York Jock-
ey Injury Compensation Fund, Inc. the option to elect a form of self-in-
surance to meet its workers' compensation insurance obligations if, in
the opinion of the New York Jockey Injury Compensation Fund., self-in-
suring would enable it to do so at a lower cost than procuring a policy
in the market. The ability to self-insure has been statutorily granted
to the New York Black Car Operators' Injury Compensation Fund, Inc.
pursuant to Executive Law 160-ii, albeit without the need to submit
proof of financial ability or posting securities or other credit as was
the case with the New York Black Car Operators' Injury Compensation
Fund, Inc.
This bill would give the New York Jockey Injury Compensation Fund, Inc.,
upon the approval of the New York State Gaming Commission, the option to
elect to expand the mandate of The New York Jockey Injury Compensation
Fund, Inc. to secure workers' compensation insurance coverage persons.
Licensed employees of licensed trainers, like jockeys, apprentice jock-
eys and exercise are licensed under article two or four of the racing,
pari-mutuel wagering and breeding law and subject to the jurisdiction of
the New York State Gaming Commission.
At present, licensed employees of licensed trainers are covered by the
workers' compensation policy of their respective trainers which results,
for example, in an exercise rider and hot walker who work together for
the same trainer at the track being covered by different workers'
compensation policies. Therefore, the ability to expand the scope of The
New York Jockey Injury Compensation Fund, Inc. to secure workers'
compensation insurance coverage for licensed employees of licensed
trainers could make coverage more efficient. Potentially expanding the
number of individuals covered by The New York Jockey Injury Compensation
Fund, Inc. should also improve The New York Jockey Injury Compensation
Fund, Inc.'s bargaining power when it seeks to procure a policy at a
lower cost in the commercial market.
FISCAL IMPLICATIONS:
None to the State
EFFECTIVE DATE:
This act shall take effect immediately, provided for in Section 2 of
this bill.
