Politics Leaves Horse- Racing Bills at the Gate

The horse-racing industry and its unions are perennial players in California politics, even if the legislation they push rarely shows up on the radar screen of the state’s press corps.

Track owners and horse breeders filled legislative campaign coffers with tens of thousands of dollars in the last election cycle to encourage the passage of 20 industry-backed bills introduced into the Legislature in 1997.

But it was muddy going for the industry this year; all but four of the horse-racing bills stalled. A labor fight between betting clerks and track owners is cited as the major obstacle to passage of many of the industry’s top-priority measures.

Assemblyman Edward Vincent (D-Inglewood), whose district includes track and casino operator Hollywood Park Inc., has called a Capitol summit on Dec. 15. The select Assembly committee on the industry, which he chairs, will meet to air the issues with the goal of brokering a compromise between the two groups.

At the heart of the dispute is the expansion of satellite wagering. Track owners are eager to open new satellite wagering outposts across the state to attract business from those who may not want to spend an afternoon at the track. They argue that the expansion of satellite wagering is necessary to compete with other states that permit wagering over the phone and over the Internet.

Union leaders, however, want to make sure that the new betting posts are staffed by union workers rather than automated machines. Track owners argue that manual labor has become too costly in the increasingly competitive field.

“It’s a money issue--jobs against machines,” said Aaron Read, a lobbyist for the Bay Meadows Operating Co., which runs a San Mateo racetrack. “But if we just sit back while other states place bets over the Internet, that adversely impacts California. In that scenario, everybody loses. We have to stop that hemorrhaging.”

Workers have also felt the pinch, said Jim Sanzaro, president of Service Employees International Union Local 280, which represents more than 2,000 industry clerks. He said there has been a 40% reduction in track staff over the last four years.

Unions and track owners are both big-time campaign donors and their issues quickly attract the attention of lawmakers. Because of the political clout of both groups, it is nearly impossible to get a horse-racing bill through the Legislature without an accord between them.

In 1996, for example, the Legislature passed a $10-million tax break for racetrack owners, but only after labor leaders gave their blessing.

Any expansion of satellite betting would require changes in state law. Unions have used their clout in Sacramento to successfully block the pending measures.

“People listen to the unions,” said Vincent aide Sedrick Spencer. “You can’t get anything through without the unions’ support.”

HOT BILLS

* Classifying Hazardous Wastes

Bottom Line: Requires the state to adopt federal hazardous waste standards for classifying dangerous chemicals. California’s hazardous waste regulations, the most stringent in the nation, were adopted before the federal government had a similar classification system in place.

Status: The bill is intended to streamline state and federal laws and won’t result in the addition or removal of any chemicals identified as dangerous by the state. The measure passed easily in the Assembly and Senate and was signed into law by Gov. Pete Wilson in August.

Next Step: Takes effect Jan. 1.

Details: AB 256 author Jim Cunneen (R-Cupertino) can be reached at (916) 445-7644.

* Park Donations

Bottom Line: This bill is intended to jump-start the acquisition program of the state Parks and Recreation Department by offering a tax credit for land donations to the parks system. The bill would grant donors a tax credit of up to 55% of the value of the donated property.

Chances: The bill stalled in the Senate this year amid concerns that the tax credit would come from state general funds designated for park maintenance and infrastructure needs.

Next Step: The bill will be taken up next year when the Legislature reconvenes.

Details: SB 87 author Jack O’ Connell (D-Carpinteria) can be reached at (916) 445-5405.