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COMMONWEALTH OF PENNSYLVANIA HOUSE OF REPRESENTATIVES GAMING OVERSIGHT COMMITTEE * * * * * * * * * * PUBLIC HEARING IN RE: HOUSE BILL 1317 * * * * * * * * * * BEFORE: DANTE SANTONI, JR., Chairman Bryan Barbin, Christopher Sainato, Michael Reese, Randy Vulakovich, Fiorindo J. Fabrizio, Members HEARING: Thursday, May 7, 2009 9:22 a.m. LOCATION: 2112 Commissioners Hall Westmoreland County Community College 145 Pavilion Lane Youngwood, PA 15697 WITNESSES: Stephen H. Stetler, Secretary, Kathleen M. Shaw, Ph.D., Deputy Secretary, Doctor Joe D. Forrester, President, Doctor Tony Atwater, President, Major John P. Lutz, Director, Amy Christie, Executive Director, Tom Scott, Owner, Sherman Smith, Owner, Steve Fritz, General Manager, John P. Milliron, Esquire, Stephen Drachler, Executive Director Reporter: Valerie B. Gregory Any reproduction of this transcript is prohibited without authorization by the certifying agency. Sargent's Court Reporting Service, Inc. (814) 536-8908 2 1 I N D E X 2 OPENING REMARKS 3 By Chairman 3 - 5 4 STATEMENT 5 By Mr. Harhai 5 - 7 6 DISCUSSION AMONG PARTIES 7 - 9 7 TESTIMONY 8 By Stephen J. Stetler 9 - 25 9 By Kathleen M. Shaw, Ph.D. 25 - 59 10 By Doctor Tony Atwater 61 – 69 11 By Doctor Joe D. Forrester 69 - 77 12 DISCUSSION AMONG PARTIES 77 - 89 13 TESTIMONY 14 By Major John P. Lutz 89 - 103 15 By Tom Scott 104 - 106 16 By Amy Christie 106 - 115 17 By John P. Milliron 115 - 120 18 By Sherman Smith 120 - 122 19 By John P. Milliron 122 - 123 20 By Steve Fritz 123 - 127 21 DISCUSSION AMONG PARTIES 127 - 147 22 TESTIMONY 23 By Stephen Drachler 147 - 158 24 CERTIFICATE 160 25 Sargent's Court Reporting Service, Inc. (814) 536-8908 3 1 P R O C E E D I N G S 2 ------------------------------------------------------ 3 DOCTOR OBARA: 4 Doctor, one that is very critical, 5 certainly to all students who attend the 14 community 6 colleges in the state as well as all the Pennsylvania 7 State University --- assisting universities. So this 8 legislation of course would provide tuition relief for 9 students attending those institutions. So we're very 10 pleased to be able to provide the venue for this 11 hearing and hope that you find all the accommodations 12 very satisfactory. Thank you and welcome to the 13 college. And I will bring this mic over here. 14 CHAIRMAN: 15 Thank you, Doctor Obara, we appreciate 16 your hospitality and we thank Westmoreland County 17 Community College for hosting today's hearing. And I 18 want to thank you all for coming. We're here today to 19 hear testimony on House Bill 1317, The Tuition Relief 20 Act. 21 This is the second of our four scheduled 22 hearings on this legislation. It is my intention as 23 Chairman to make sure that all perspectives on this 24 proposal have an audience and I believe we will hear a 25 broad range of opinions over the course of these four Sargent's Court Reporting Service, Inc. (814) 536-8908 4 1 hearings. We've already had one in Harrisburg; this 2 is number two as I've said. 3 Again, we're meeting here at Westmoreland 4 County Community College for several reasons. First, 5 it gives the people of Western Pennsylvania a chance 6 to be part of the discussion, to hear from you and to 7 also let you know that our committee cares about what 8 your opinions are. Second, community colleges like 9 this one will be significantly impacted if the Tuition 10 Relief Act becomes law. Initially, I just want to 11 mention that this college is located in the district 12 of one of our committee members, Representative Mike 13 Reese. And I know that there's a couple of other 14 committee members here from Westmoreland, 15 Representative Ted Harhai and Representative Tim 16 Krieger. 17 I'm going to ask Representative Ted 18 Harhai to make some brief remarks before announcing 19 the members and then get on with the hearing. 20 Representative Harhai, welcome. 21 REPRESENTATIVE HARHAI: 22 This is for a guy in the MBA. First, I'd 23 like to congratulate Doctor Obara on his recent 24 appointment or election as the president. He's a fine 25 man, had many dealings with him over many years and Sargent's Court Reporting Service, Inc. (814) 536-8908 5 1 just congratulations. Well deserved. 2 DOCTOR OBARA: 3 Thank you much. 4 REPRESENTATIVE HARHAI: 5 I'd like to thank all of you for being 6 here today and I have some prepared testimony that I 7 would like to present because I feel very strongly 8 about this issue, especially for our local people that 9 are involved with video gaming. 10 I want to thank you, Mr. Chairman, for 11 bringing the Committee to Westmoreland County along 12 with my colleagues, Representative Krieger and 13 Representative Reese. And for giving me the 14 opportunity to speak here today. As the native son of 15 Monessen, just 20 some miles down the road, I have 16 seen Westmoreland County Community College grow from 17 its finding in 1970 into the pillar of the community 18 that it is today. Since its inception, the college 19 has provided an avenue to a college education for many 20 students who would otherwise be unable to afford the 21 degree they need to succeed in our modern economy. 22 Unfortunately, despite the college's best efforts to 23 control costs, a college education is simply getting 24 more expensive. 25 I am pleased that the Governor and Sargent's Court Reporting Service, Inc. (814) 536-8908 6 1 Chairman Santoni have stepped up to offer a proposal 2 that will allow young men and women across 3 Pennsylvania to have access to quality higher 4 education. 5 House Bill 1317 is a good starting point 6 for the discussion of how to provide tuition relief. 7 And I would like to add my voice to that discussion 8 here today. To maximize the efficiency and 9 effectiveness of the funding mechanism for tuition 10 relief, I believe Pennsylvania must consider the 11 models used by most other states that have legalized 12 video lottery terminals. 13 In my view, the Commonwealth will be 14 making a big mistake if it excludes private industry 15 from the equation. By including carefully regulating 16 vendors, Pennsylvania can provide an added economic 17 stimulus, raise additional revenue through the sales 18 tax, drastically cut overhead costs for the State and 19 guarantee a more efficient system for servicing the 20 terminals. 21 As you will hear today the Pennsylvania 22 State Police is the agency charged with investigating 23 illegal terminals and it rightfully receives funding 24 to accomplish that. However, these video lottery 25 terminals are located in our boroughs, our townships Sargent's Court Reporting Service, Inc. (814) 536-8908 7 1 and our cities. The people who use these machines use 2 our local roads and enjoy themselves in bars and 3 taverns that occasionally need to rely on our local 4 police forces. As such, our municipalities also 5 deserve a portion of the revenue and I feel very 6 strongly about that. To be generated by legalized 7 video lottery terminals, and I'll emphasize it a 8 second time, that’s how strongly I feel about it. As 9 such, our municipalities also deserve a portion of the 10 revenue to be generated by legalized video lottery 11 terminals. 12 I hope the Committee will consider the 13 points I've raised here today as the study of House 14 Bill 1317 continues. As Chairman Santoni said, this 15 is the second of four hearings and hopefully it moves 16 forward. I believe my suggestions will strengthen a 17 proposal that we must pass to help the young men and 18 women of Westmoreland County, especially, and of all 19 Pennsylvania to get the education they deserve. I 20 want to thank you once again for moving me up on the 21 schedule, letting me offer my remarks, and thank all 22 of you for being here today. And if you have any 23 questions, I'd be willing to listen, or if you want to 24 hold them to the end. 25 CHAIRMAN: Sargent's Court Reporting Service, Inc. (814) 536-8908 8 1 I think we'll get started with the 2 hearing. I think what I want to do is --- so 3 everybody knows who we are and where we're from --- 4 let's start to my right with Representative Krieger. 5 If you could just tell who you are and where you're 6 from. 7 REPRESENTATIVE KRIEGER: 8 Thank you, Mr. Chairman. I'm Tim 9 Krieger. I represent the 57th District in 10 Westmoreland County. 11 REPRESENTATIVE REESE: 12 I'm Mike Reese, I represent the 59th 13 District in Westmoreland and Fayette County and this 14 is a part of the 59th District. 15 REPRESENTATIVE HARHAI: 16 Obviously, I'm State Representative Ted 17 Harhai. I represent the 58th Legislative District, 18 Westmoreland and part of Fayette County. 19 REPRESENTATIVE SAINATO: 20 I'm Representative Chris Sainato, I 21 represent the 9th Legislative District, which is parts 22 of Lawrence and a small section of Beaver County. 23 CHAIRMAN: 24 I'm Dante Santoni, I'm from Berks County, 25 the City of Reading. Sargent's Court Reporting Service, Inc. (814) 536-8908 9 1 REPRESENTATIVE FABRIZIO: 2 I'm Fiorindo Fabrizio, 7th District, Erie 3 County.