BILL NUMBER:  AB 2490
  VETOED	DATE: 09/30/2010




To the Members of the California State Assembly:

I am returning Assembly Bill 2490 without my signature.

This bill is unnecessary because there is no evidence to demonstrate
that a problem exists.  In my view, the bill risks reducing the
competitive market for workers' compensation California now enjoys
due to our reforms.  The broad language in the bill leaves open the
potential for costly regulatory interpretation that will impact the
cost of workers' compensation insurance.  The high deductable
contract negotiations the bill seeks to impact are conducted by
sophisticated participants on both sides of the table that are well
versed in all aspects of workers' compensation and other insurance
products.  Therefore, I am not convinced the issue addressed by the
bill will result in keeping workers' compensation costs down which is
the most significant concern to California employers.

For these reasons I am unable to sign the bill.

Sincerely,



Arnold Schwarzenegger