Posted on 01/22/2004 5:06:06 PM PST by calcowgirl
ARCADIA, Calif. - Gov. Arnold Schwarzenegger vetoed legislation on Thursday that would have increased the takeout on exotic wagers for races in California to help cover the soaring costs of workers' compensation policies held by horsemen.
Racing officials said Schwarzenegger's veto was a major setback for an industry that is facing high operating costs in California and losing horsemen and horses to circuits in other states.
The legislation, which sailed through the State Assembly and Senate with little opposition, was vetoed because the governor feared it could conflict with his long-term plans to reform the state's beleaguered workers' compensation system, racing officials said.
"Somehow this distracts from workers' compensation reforms he wants to pursue," said Jack Liebau, the president of Magna's three California tracks - Bay Meadows, Golden Gate Fields, and Santa Anita.
"This is extremely disappointing. The adverse impact it will have is hard to measure. It's a crushing blow."
Racing officials learned of the veto during the California Horse Racing Board meeting at Arcadia City Hall. Since the bill passed the Assembly on Jan. 12, racing officials were confident the bill would be signed by Schwarzenegger and did not feel it would affect the governor's larger strategy to reduce workers' compensation costs.
Reducing workers' compensation costs were part the platform that helped Schwarzenegger win election in the recall of Gray Davis last October.
Schwarzenegger's plan would increase benefits, reduce administration costs, and develop anti-fraud programs, racing officials said.
Schwarzenegger is trying to have his initiative placed on the ballot for the March 2 presidential primary election, but it could be postponed until the November presidential election.
If Schwarzenegger's measure were approved by voters in November, it would not take effect until July 2005, according to Liebau. The takeout bill would have taken effect 30 days after passing.
"I think there is a misunderstanding of the impact this bill would have on his program," said John Van de Kamp, the president of the Thoroughbred Owners of California. "I think we can try again because it's so important. This is an industry trying to take care of itself."
The takeout bill, sponsored by Assemblyman Jerome Horton (D-Inglewood), would have raised the takeout on all bets other than win, place, and show from 20.18 to 20.68 percent. The bill was designed to generate $10 million in revenue to pay insurance costs.
Rod Blonien, an attorney who represents racing interests in Sacramento, said the bill could be refiled in the next month. He said it was unlikely it would need considerable review at the committee level since it was approved by the Senate by a vote of 31-4 last September and by a vote of 78-0 by the Assembly.
"We'll get up there as soon as we can," said Rick Baedeker, Hollywood Park president. "I think there is a misunderstanding of how important this has been to the industry."
Schwarzenegger Vetoes Workers' Comp Takeout Bill
by Jack Shinar 1/22/04
California Gov. Arnold Schwarzenegger Thursday vetoed horseracing legislation that would have increased the takeout percentage on exotic wagers to help offset the costs of workers' compensation insurance to horsemen.
According to California Horse Racing Board commissioner Marie Moretti, the governor rejected the bill, Assembly Bill 900, which would have raised the takeout on all wagers other than win, place or show from 20.18% to 20.68%, because he wants the state legislature to deliver a comprehensive workers' compensation bill by March 1. She said Schwarzenegger is opposed to "gut and amend" legislation as well, feeling the emergency measure failed to receive a full venting process.
"We're very disappointed," said John Van de Kamp, president of the Thoroughbred Owners of California. "It is an extemely important piece of legislation to racing. The governor objected to certain aspects of it. We'll be back with a sleeker bill."
Horsemen estimated that the legislation would have raised $10 million annually to help offset workers' comp costs.
Van de Kamp said he has already consulted with John Garamendi, the state's insurance commissioner, who supports the horseracing's efforts. He said Garamendi plans to talk to Schwarzenegger about a follow-up attempt to get legislative relief.
"We're trying to save an industry," he said. "We'll try to get a new bill to the governor as quickly as possible."
The legislation sailed through the California Senate by a 31-4 vote in September and got unanimous endorsement from the state Assembly earlier this month.
Even so, Moretti said she though an override of the veto was unlikely.
"Not on something like this," she said. "If the (workers' compensation) reform package doesn't come forward, he indicated he would entertain the bill again."
Please refresh my age ravaged memory. Van de Kamp was a ________ in Sacramento and Sir Grey appointed him to this cushy job in _____.
JOHN K. VAN DE KAMP
President of TOC & General CounselJohn Van de Kamp, formerly California's Attorney General and Los Angeles County's District Attorney, was engaged to serve as TOC's President and General Counsel effective April 1, 1996.
Mr. Van de Kamp has had a long distinguished career in public service. After graduating from Stanford Law School in 1959, he worked in the Los Angeles U.S. Attorney's Office and served as U.S. Attorney in 1965-66 before going to Washington, D.C., where he became Director of the Executive Office of U.S. Attorneys in the Justice Department. In 1971, Mr. Van de Kamp was appointed the Central District's first Federal Public Defender in Los Angeles. In 1975, he was appointed Los Angeles County District Attorney and was subsequently elected twice. There he established many programs such as the office's first Victim Assistance, Career Criminal, and Vertical Prosecution programs.
He was elected California's Attorney General in 1982 and re-elected in 1986. There he created the Public Rights Division and implemented the CAL-ID Computerized Fingerprint Program. After an unsuccessful run for the Governor's Office in 1990, he left office in 1991 and joined the law firm of Dewey Ballantine as a partner. Mr. Van de Kamp is actively involved with a number of organizations. He serves on the Board of Directors of United Airlines, Lawry's Restaurants Inc., and the L.A. Conservation Corp. He was elected to California's State Bar Board of Governors in 2001.
As TOC's President, Mr. Van de Kamp is responsible for TOC staff effort, negotiates on behalf of owners with California's racetracks, lobbies for racing in the State Capitol, and serves as TOC's primary spokesman. He is TOC's representative on the National Thoroughbred Racing Association (NTRA) Board.
The legislature tried to raise taxes and Schwarzenegger said no.
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