PA approves houses slots bill

HARRISBURG - The state House of Representatives yesterday prolonged its squabble with the Senate over a bill intended to strengthen regulation and enforcement of Pennsylvania's slot-machine industry, approving changes and sending it back to the Senate.
The unanimous vote kept the bill from going to Gov. Rendell. It also continued a volley between chambers that has lasted for much of the last year over how to fix problems identified by critics of the state's two-year-old gambling law, with one chamber often dropping pet provisions written by the other.
House Majority Leader Sam Smith (R., Jefferson) said he sympathized with colleagues who were dissatisfied with the Senate's version, but warned that further revisions could scuttle passage of a final bill before the legislative session ends Nov. 30.
"There's a limit to how many times we can bounce this ball back and forth across this building," Smith said. "If we amend this bill, this bill then will be sitting in the Senate in the lame-duck session, and at that juncture, all bets are off... as to whether or not we will actually be able to get a very solid reform bill in front of this governor this session."
Senate leaders were reviewing their options and expected to announce a plan today, said Erik Arneson, chief of staff to Senate Majority Leader David J. Brightbill (R., Lebanon).
The Senate passed its version of the gambling-law revisions during a marathon session that stretched from Monday to early yesterday as members rushed to complete major business and adjourned until after the Nov. 7 election. With just two weeks remaining, legislators were eager to return to their districts to campaign in a volatile election year.
Both houses have agreed to changes that would require the state Attorney General's Office to form a gambling-crimes unit, wipe out a requirement that slot-machine manufacturers sell through an in-state distributor, and delete language in the current law that allows public officials to directly own up to 1 percent of a gambling interest.
The House did not change a provision of the Senate bill that would force casino developers to follow local zoning procedures, including in Philadelphia, and allow zoning appeals to go to the state Supreme Court. In a bill passed in March, the House had introduced a clause eliminating local zoning control for casinos in Philadelphia.
But the two chambers have disagreed over many other provisions. The version the House approved includes provisions not endorsed by the Senate, such as banning campaign contributions from applicants for horse racetrack licenses and requiring casinos to comply with local ordinances banning indoor smoking.
The House version also allows the legislature, rather than the state, to decide whether to transfer state-owned riverbed property rights to casinos.
The law, which was passed in July 2004, legalized up to 61,000 slot machines at 14 sites.

Zoning battles!

ZONING CONTROL FOR two local casinos has been a high-stakes game of political ping-pong paddled between Harrisburg powerhouses for more than two years.
As the game wears on, long and lofty serves are supplanted by short and vicious strokes.
Last month, the state Senate served up the issue again by passing a gambling reform bill and sending it to the state House.
House Speaker John Perzel last week returned that serve to the Senate with serious political backspin. State Sen. Vince Fumo quickly slapped back, leaving the ball in Perzel's court again today.
Here's a game breakdown:
PING - Fumo started the volley more than two years ago when his office crafted language for the original gambling law that took away local zoning control for 14 casino licenses statewide, including two in Philadelphia. Gov. Rendell was, and still is, concerned that local zoning boards could stall the opening of casinos.
PONG - That law was approved by the Senate and House and signed into law by Rendell in July 2004. But five months later, Rendell vetoed new legislation that would have allowed local appeals on casino zoning.
PING - The state Supreme Court swatted the original slots law back to the General Assembly in 2005, ruling that pre-emption of local zoning was unconstitutional.
PONG - "Gambling reform" quickly became a hot political issue as legislators in both houses crafted a myriad of bills to reshape the original law. Senate Bill 862 emerged last November as the leading candidate but did not address the zoning issue.
PING - Perzel in February had that legislation amended to put zoning control for Philadelphia's casinos in the hands of the state Gaming Control Board. Perzel said federal investigations of City Hall convinced him the city was too corrupt to handle the zoning. Sixteen state representatives from Philadelphia supported Perzel's measure while nine opposed it. Rendell said he wanted zoning pre-emption for casinos statewide, not just in Philadelphia.
PONG - Local community groups, including some that were initially slow to react to the possibility of casinos next door, seized the zoning issue as a rallying cry. They make that part of their protests, asking for e-mails to state representatives, calling for retention of zoning power. The bill has also been used as a political weapon. Allies of electricians union chief John Dougherty decried Fumo's role in the zoning pre-emption while not mentioning that it all started with Perzel.
PING- The Senate re-approved the reform bill in September, keeping the provision that takes zoning decisions away from Philadelphia, while adding several other measures, including a streamlining of how the state sells water rights. Four of the five applicants for two city casino licenses are located on the Delaware riverfront.
PONG - The House last week stripped out much of the language added by the Senate. One staffer jokingly said the bill had been "Fumo-gated." The Philadelphia delegation in the House, perhaps now aware of community opposition, voted 16-7 against the measure, which was sent back to the Senate.
PING - Fumo quickly responded, saying he had heard the cries of the community groups and would abandon the call to pre-empt local zoning when the Senate sends the bill back to the House today. Fumo plans to restore language making it easier to claim state water rights. This move puts the ball back into the House, where Perzel, a fan of pre-empting local zoning control, will make his next move with local community groups watching.
PONG?- Will the House change the wording of the bill yet again and return it to the Senate or pass it as currently written?

PA and gambling

For years, legalizing casino gambling in Pennsylvania was a whispered political discussion, the subject of rumors. For at least six years, it has been an active political debate. It started with the state horse racing industry arguing that slots were necessary to reinvigorate farms and horse tracks. It became part of the last gubernatorial election and a priority during Gov. Ed Rendell's first year in office. Last week, the rumors became reality.

Act 71 of 2004 created the Pennsylvania Gaming Control Board and gave it a mission: License up to 14 slots casinos. Whatever you think about the badly flawed law (see the editorial below) and whether the ''racinos'' should have waited until it was fixed, a law was in place and the board had a job to do.However, it would be a mistake to ignore political realities regarding what the board did on Wednesday. The slots law has been controversial from its inception and it was challenged in court. Gov. Rendell made it the centerpiece of his promise to deliver property tax relief, especially to senior citizens. Last week, Republican gubernatorial candidate Lynn Swann attacked this promise with television commercials. There has been just as much partisan effort to delay slots operations from coming to fruition as there has been to get it done.In this context, Gaming Board Chairman Tad Decker said, ''We did it as fast as we could.'' And Gov. Rendell was able to called it a ''milestone'' that ''is a clear sign to all homeowners that property tax relief is on the way.''

How much that relief will be remains to be seen. Pocono Downs in Luzerne County was awarded the first license and will probably have the first slots operation producing revenue as early as the end of November. In all, the gaming board awarded five licenses to tracks and these licensing fees alone will generate $250 million.And, the board showed it means business regarding enforcement by fining the Pocono Downs licensee for political gifts from two employees. Whenever this happens, however, the board must identify which officials or candidates benefited.

Gov. Rendell predicted slots would generate $3 billion in revenue and $1 billion for property tax relief. But board studies on revenue estimates were lower by tens of millions of dollars than the applicants predicted.Even before all the licenses have been awarded — and that won't happen until the end of December — there's talk of what's next. Slots applicants and board members expect the General Assembly to eventually approve table games and full casinos. Democratic House members have already proposed that. Time will tell if slots can deliver on all the promises.