The Skinny on the Preakness Bill 4/09

Much hoopla is being made by the media over an end-of-session bill by Governor Martin O'Malley to "save" the Preakness.

In rapid-fire succession, the bill was filed, both chambers voted to allow a "late-filed" bill, both Rules Committees waived the bill onto a standing committee, and a hearing was scheduled within 22 hours of the bill introduction (a joint hearing of Senate and House members at 9 a.m. tomorrow morning). 

A rush job?  Yes.  Late-filed bills are always a blow to legislative transparency.  Over the long run, they frequently backfire.

Why the rush?  No politician wants the departure of a sports franchise or the loss of a major sporting event to occur on their watch.  Last month's 25th anniversary of the moving of the Baltimore Colts out of Maryland was a grim reminder to elected officials that scorned sports fans bear grudges for many years (and they typically are voters).  The images of the Mayflower moving vans stir high emotions even 25 years later (click here).

What does the bill do?  It purports to give the State the abililty to exercise eminent domain to buy Pimlico Race Course, Laurel Park, Bowie Race Course, Maryland Jockey Club, Laurel Racing Association and any copyright, trademark and/or intellectual property associated with the Preakness and its trophy, the Woodlawn Vase.

What does the bill really do?  Nothing much, except it allows the State to posture.  The properties are all in bankruptcy court.  Federal law preempts any state law.  The bill is worthless because the power rests entirely in the federal bankruptcy proceeding.

Doesn't the state already have a right of first refusal?  Yes - but that also is state law.  Federal law trumps state law.  The Attorney General has hired attorneys to represent the state in the bankruptcy proceeding and they have argued that the right of first refusal should be recognized, but that is entirely up to the bankrupcty judge.  The federal judge can totally ignore the state's position.

Then what is this bill about?  It is all about appearances.  Just in case the worst happens and the Mayflower vans run off with the Woodlawn vase - the Governor can always blame someone else (typically the prior Administration gets the blame).  He can always say he introduced legislation and fought like a tiger.  Whether the constituents buy that story is another matter.

Is there a better option?  Yes, the Governor should apply for a bidder's number and attend the bankruptcy auction to bid for the State.