Chamber to Join Foes of Prop. 70

The California Chamber of Commerce is preparing to raise money to oppose a November initiative that would authorize unlimited casino expansion on Indian reservations.

Chamber President Allan Zaremberg said Thursday that he was creating an anti-Proposition 70 campaign committee, called Stop Unlimited Casinos, to help Gov. Arnold Schwarzenegger’s effort to defeat the measure.

Zaremberg wants to raise money from an array of donors, including trade groups that represent road-builders, contractors and engineers who will benefit from its defeat. He also hopes that building-trade unions will join the effort.

Five tribes aligned with Schwarzenegger agreed earlier this year to finance a $1-billion bond earmarked for transportation projects as part of a deal that allows those tribes to expand their casinos. But the deal conflicts with Proposition 70, and the state’s plan to use the $1-billion bond to pay for transportation projects hinges on the initiative’s failure, the Schwarzenegger administration has said.

As a result, road-builders could be among the losers if the measure wins voter approval Nov. 2.

The chamber decided to act after conferring with Schwarzenegger’s political aides, Zaremberg said. He intends to raise upward of $1 million.

“In order to have a credible campaign, you need those kinds of resources,” he said.

Schwarzenegger has a committee to oppose Proposition 70 and Proposition 68, an initiative that could end the tribes’ monopoly on Nevada-style gambling by allowing racetracks and card rooms to install slot machines.

Two Southern California tribes have spent $22.5 million to promote Proposition 70, and other tribes are spending heavily to defeat Proposition 68. But no group with money had yet targeted Proposition 70 for defeat, and the governor had reported raising less than $1 million against it.

“There are certain people, organizations and associations who want to make sure Proposition 70 is defeated, and the governor’s committee might not be the right vehicle for them,” Zaremberg said. “We know that, so we set up a separate committee.”

The chamber has proven that it can raise millions in short periods of time. Zaremberg said the chamber would accept money from any tribes that oppose the initiative, though most tribes either support Proposition 70 or are neutral.

The governor has a policy of rejecting money from tribes, and generally refuses money from trade associations.

Marty Wilson, one of Schwarzenegger’s top political aides, said he spoke with Zaremberg about the campaign, and that the governor would “welcome” the chamber’s effort. But he said the governor has no control over the chamber’s campaign.

“The chamber came to its own conclusion,” Wilson said. “Clearly, they may be in a position to take funds that the governor will not take.”

Gene Raper, manager of the Yes-on-70 campaign, contends that the initiative would provide more money to the state than the Schwarzenegger deals. He derided the chamber’s effort, saying: “The governor bought off the transportation companies and their unions by promising them money he’ll get from gaming.”