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For Immediate
Release
8/12/08
Orie, Fumo Propose Revisions to Gaming Act
HARRISBURG, August 12, 2008 – Two state Senators have developed bipartisan
legislation that would make several important amendments to Pennsylvania's 2004
slot machine gambling law, including prohibiting outside income by Gaming
Control Board members, expanding the prohibition on campaign contributions from
casino interests, and increasing public disclosure of previously confidential
information supplied by license applicants.
Vince Fumo (D-Philadelphia) and Jane C. Orie (R-Allegheny) plan to introduce
the bill in time for it to be considered when the Senate returns to session in
September. Fumo was an early supporter of legalizing slot machines and was one
of the chief authors of the legislation to do so. Orie opposed the expansion of
gambling in the state.
"We disagreed on the overall public policy merits of the legalizing of slots,
but we agree now that the experience of the past several years compels us to
make changes," Orie said.
"The past two years have highlighted several unintentional deficiencies
of the existing law. We created a new industry in this state and adopted the
best practices that we could find from other states, but the law was not perfect
and we can improve upon it," Fumo said.
The proposed legislation would make Gaming Control Board members full time,
and ineligible for outside income. They are already paid a salary reflective of
the full-time nature of the position – $150,000 per year for the chairman and
$145,000 for the other six members.
Fumo and Orie said the intensity and complexity of the work argue for it
being a full-time job, and the need to prevent actual or perceived conflicts of
interest suggests a need for prohibiting outside employment.
Another key provision would clarify the limited nature of confidentiality of
information about license applicants. Although the existing Gaming Act contains
a narrow definition of confidential information, the Board has taken a very
broad interpretation of this provision and has deemed all information provided
by an applicant to be confidential. This bill would open up all information that
is not specifically designated as confidential, such as trade secrets or
personal medical and financial data about applicants.
Fumo and Orie also propose to eliminate the section of the law that gives
jurisdiction over all slots license appeals and slots-related zoning appeals
directly to the Supreme Court. Intended to expedite appeals that may have
delayed the opening of the casinos, it has had the effect of eliminating the
important appellate record that is typically created at the Commonwealth Court
level.
Another measure within the bill expands the ban on campaign contributions
from licensed casino operators to those who have registered with the Gaming
Board as "licensed casino representatives." This would prevent casino operators
from making contributions indirectly through paid lobbyists.
All of these provisions would create greater public confidence in
Pennsylvania's Gaming Act and Gaming Control Board," Orie said. "That confidence
has been shaken recently, and we must restore the complete integrity of the
process in the public eye."
The bill would also require the two casinos licensed for Philadelphia to
obtain authorization from the General Assembly, and to compensate the taxpayers
of Pennsylvania for the use of public land before they are allowed to commence
gambling operations. Currently, the two licensed casinos plan construction on
land that is partially within the river bed of the Delaware River. To date, they
have not sought a grant of these riparian rights from the Commonwealth.
Among the other amendments in the Fumo/Orie proposal, the bill would:
- Require a two-thirds Senate confirmation of all future members of the
Gaming Board.
- Require oral hearings with the right of cross examination for all
matters before the Board.
- Prevent an applicant from borrowing the initial $50 million license fee
and require a surety bond from the licensee when the licensee is also the
developer of the project.
- Require disclosure and posting on the Internet of information concerning
the true identity of the controlling interest in a gaming facility.
- Require the Board to adopt regulations, in addition to those already in
place, maintaining the separation of prosecutorial and adjudicatory
functions.
- Authorize and encourage the Board to seek the advice of the Ethics
Commission and the Attorney General on ethics and related issues.
- Prohibit Gaming Board officials from gaining employment in gaming-related fields for two years.
"We have learned a lot in the four years since we passed the original law. We
have casinos that are running smoothly and have been very successful in
generating revenue that is reducing taxes for our citizens. But we have also
encountered some problems, and it is critical that we correct them now while
Pennsylvania's gaming industry is still young," Fumo said.
CONTACT:
Senator Orie, Lee Derr (717) 787-6538
Senator Fumo, Gary Tuma (717) 787-5602
Memo from Senators Orie and Fumo to All Senators
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