March 5, 1996 CONGRESSIONAL RECORD — HOUSE H 1675 ground that a quorum is not present (A) gambling in the United States, includ- (3) FAILURE TO OBEY A SUBPOENA.—If a per- and make the point of order that a ing State-sponsored lotteries, casino gam- son refuses to obey a subpoena issued under quorum is not present. bling, pari-mutuel betting, and sports bet- paragraph (1), the Commission may apply to The SPEAKER pro tempore. Pursu- ting; and a United States district court for an order ant to clause 5, rule I, and the Chair’s (B) existing Federal, State, and local pol- requiring that person to appear before the icy and practices with respect to the legal- Commission to give testimony, produce evi- prior announcement, further proceed- ization or prohibition of gambling activities dence, or both, relating to the matter under ings on this motion will be postponed. and to formulate and propose such changes investigation. The application may be made The point of no quorum is considered in those policies and practices as the Com- within the judicial district where the hear- withdrawn. mission shall deem appropriate. ing is conducted or where that person is f (2) MATTERS STUDIED.—The matters studied found, resides, or transacts business. Any by the Commission shall include— failure to obey the order of the court may be b 1145 (A) the economic impact of gambling on punished by the court as civil contempt. NATIONAL GAMBLING IMPACT the United States, States, political subdivi- (4) SERVICE OF SUBPOENAS.—The subpoenas of the Commission shall be served in the AND POLICY COMMISSION ACT sions of States, and Indian tribes, both in its positive and negative aspects; manner provided for subpoenas issued by a Mr. HYDE. Mr. Speaker, I move to (B) the economic impact of gambling on United States district court under the Fed- suspend the rules and pass the bill other businesses; eral Rules of Civil Procedure for the United (H.R. 497) to create the National Gam- (C) an assessment and review of political States district courts. bling Impact and Policy Commission, contributions and their influence on the de- (5) SERVICE OF PROCESS.—All process of any as amended. velopment of public policy regulating gam- court to which application is to be made The Clerk read as follows: bling; under paragraph (3) may be served in the ju- dicial district in which the person required H.R. 497 (D) an assessment of the relationship be- tween gambling and crime; to be served resides or may be found. Be it enacted by the Senate and House of Rep- (E) an assessment of the impact of patho- (b) INFORMATION FROM FEDERAL AGEN- resentatives of the United States of America in logical, or problem gambling on individuals, CIES.—The Commission may secure directly Congress assembled, from any Federal department or agency such families, social institutions, criminal activ- information as the Commission considers SECTION 1. SHORT TITLE. ity and the economy; necessary to carry out the provisions of this This Act may be cited as the ‘‘National (F) a review of the demographics of gam- Act. Upon request of the Chairman of the Gambling Impact and Policy Commission blers; Commission, the head of such department or Act’’. (G) a review of the effectiveness of existing SEC. 2. ESTABLISHMENT OF COMMISSION. agency may furnish such information to the practices in law enforcement, judicial ad- Commission. There is established a commission to be ministration, and corrections to combat and known as the National Gambling Impact and (c) DETAIL OF GOVERNMENT EMPLOYEES.— deter illegal gambling and illegal activities Any Federal Government employee may be Policy Commission (in this Act referred to as related to gambling; the ‘‘Commission’’). detailed to the Commission without reim- (H) a review of the costs and effectiveness bursement, and such detail shall be without SEC. 3. MEMBERSHIP. of State, Federal, and Tribal gambling regu- interruption or loss of civil service status or (a) NUMBER AND APPOINTMENT.— latory policy; privilege. (1) GENERALLY.—The Commission shall be (I) an assessment of the effects of advertis- composed of 9 members, appointed from per- SEC. 6. COMMISSION PERSONNEL MATTERS. ing concerning gambling, including— (a) COMPENSATION OF MEMBERS.—Subject to sons specially qualified by training and expe- (i) whether advertising has increased par- the limitation provided in subsection (e), rience to perform the duties of the Commis- ticipation in gambling activity; each member of the Commission who is not sion, as follows: (ii) the effects of various types of advertis- an officer or employee of the Federal Gov- (A) three appointed by the Speaker of the ing, including the sponsorship of sporting ernment shall be compensated at a rate House of Representatives; events; equal to the daily equivalent of the annual (B) three appointed by the majority leader (iii) the relationship between advertising rate of basic pay prescribed for level IV of of the Senate; and and the amount of the prize to be awarded; the Executive Schedule under section 5315 of (C) three appointed by the President of the and title 5, United States Code, for each day (in- United States. (iv) an examination of State lottery adver- cluding travel time) during which such mem- (2) CONSULTATION BEFORE APPOINTMENT.— tising practices, including the process by ber is engaged in the performance of the du- Before the appointment of members of the which States award lottery advertising con- ties of the Commission. All members of the Commission (including to any vacancies), tracts; Commission who are officers or employees of the appointing authorities shall consult with (J) a review of gambling that uses inter- the United States shall serve without com- each other to assure that the overall mem- active technology, including the Internet; pensation in addition to that received for bership of the Commission reflects a fair and (K) a review of the extent to which casino their services as officers or employees of the equitable representation of various points of gambling provides economic opportunity to United States. view. residents of economically depressed regions (b) TRAVEL EXPENSES.—Subject to the lim- (3) TIMING OF APPOINTMENTS.—The appoint- and to Indian tribes; itation provided in subsection (e), the mem- ing authorities shall make their appoint- (L) a review of the effect of revenues de- bers of the Commission shall be allowed ments to the Commission not later than 60 rived from State-sponsored gambling on travel expenses, including per diem in lieu of days after the date of the enactment of this State budgets; and subsistence, at rates authorized for employ- Act. (M) such other relevant issues and topics ees of agencies under subchapter I of chapter (b) DESIGNATION OF THE CHAIRMAN.—The as considered appropriate by the Chairman 57 of title 5, United States Code, while away from their homes or regular places of busi- Speaker of the House of Representatives and of the Commission. majority leader of the Senate shall designate ness in the performance of services for the (b) REPORT.—No later than 2 years after Commission. a Chairman and Vice Chairman from among the Commission first meets, the Commission (c) STAFF.— the members of the Commission. shall submit a report to the President and (c) PERIOD OF APPOINTMENT; VACANCIES.— (1) IN GENERAL.—The Chairman of the Com- the Congress which shall contain a detailed Members shall be appointed for the life of mission may, without regard to the civil statement of the findings and conclusions of the Commission. Any vacancy in the Com- service laws and regulations, appoint and the Commission, together with its rec- mission shall not affect its powers, but shall terminate an executive director and such ommendations for such legislation and ad- be filled in the same manner as the original other additional personnel as may be nec- ministrative actions as it considers appro- appointment. essary to enable the Commission to perform priate. (d) INITIAL MEETING.—No later than 60 days its duties. The employment of an executive after the date on which all members of the SEC. 5. POWERS OF THE COMMISSION. director shall be subject to confirmation by Commission have been appointed, the Com- (a) HEARINGS AND SUBPOENAS.— the Commission. mission shall hold its first meeting. (1) The Commission may hold such hear- (2) COMPENSATION.—Subject to the require- (e) MEETINGS.—The Commission shall meet ings, sit and act at such times and places, ments of subsection (e), the executive direc- at the call of the Chairman. administer such oaths, take such testimony, tor shall be compensated at the rate payable (f) QUORUM.—A majority of the members of receive such evidence, and require by sub- for level V of the Executive Schedule under the Commission shall constitute a quorum, poena the attendance and testimony of such section 5316 of title 5, United States Code. but a lesser number of members may hold witnesses and the production of such mate- The Chairman of the Commission may fix hearings. rials as the Commission considers advisable the compensation of other personnel without SEC. 4. DUTIES OF THE COMMISSION. to carry out the purposes of this Act. regard to the provisions of chapter 51 and (a) STUDY.— (2) ATTENDANCE OF WITNESSES.—The at- subchapter III of chapter 53 of title 5, United (1) IN GENERAL.—It shall be the duty of the tendance of witnesses and the production of States Code, relating to classification of po- Commission to conduct a comprehensive evidence may be required from any place sitions and General Schedule pay rates, ex- legal and factual study of— within the United States. cept that the rate of pay for such personnel H 1676 CONGRESSIONAL RECORD — HOUSE March 5, 1996 may not exceed the rate payable for level V tween gambling and crime, including considering the legalization of gam- of the Executive Schedule under section 5316 organized crime. bling in various forms, are often vul- of such title. Based upon this extensive committee nerable to exaggerated claims about (d) PROCUREMENT OF TEMPORARY AND record and personal study, I concluded the positive effects of gambling and the INTERMITTENT SERVICES.—The Chairman of the Commission may procure temporary and that a study commission on gambling prospects for painless revenue genera- intermittent services under section 3109(b) of in the United States is a good idea. As tion. Just 3 months ago, a Maryland title 5, United States Code, at rates for indi- the Washington Post proclaimed in its State study commission concluded: viduals which do not exceed the daily equiva- headline for an editorial endorsing the The Maryland Congressional delegation lent of the annual rate of basic pay pre- bill: ‘‘For Once, a Useful Commission!’’ should support the immediate creation of a scribed for level V of the Executive Schedule The Post went on to observe that national commission to study issues related under section 5316 of such title. ‘‘commissions can * * * play the useful to commercial gaming and should rec- ommend that the commission complete its (e) LIMITATION.—No payment may be made role of bringing to national attention under the authority of this section except to work within one year. the extent provided for in advance in an ap- issues that were previously submerged States are unable to confidently make de- propriation for this purpose. or debated in fragmentary ways.’’ cisions about casino gaming because of com- SEC. 7. TERMINATION OF THE COMMISSION. In my view, it is particularly timely petitive concerns about the decisions of their The Commission shall terminate 30 days for us to have a balanced, impartial, neighbors and because of the inadequate data and analysis available to them. The Task after the date on which the Commission sub- and comprehensive look at whether or Force believes that the proposed national com- mits its report under section 4. not the spread of gambling is good for mission on gambling, currently being considered The SPEAKER pro tempore (Mr. this country. Over the last two dec- by Congress, could make a significant contribu- ROGERS). Pursuant to the rule, the gen- ades, legalized gambling has expanded tion to public policy development. tleman from Illinois [Mr. HYDE] and extensively throughout our country. Final Report of the Joint Executive- the gentleman from Massachusetts Currently, 48 States allow some form of Legislative Task Force to Study Com- [Mr. FRANK] each will be recognized for legalized gambling. We have State-con- mercial Gaming Activities in Mary- 20 minutes. ducted lotteries, riverboat gambling, land, December 1995, at xiv (emphasis The Chair recognizes the gentleman Indian gambling, and casino gambling. added). from Illinois [Mr. HYDE]. For better or worse, gambling has be- I also want to stress that I have lis- Mr. HYDE. Mr. Speaker, I yield my- come a commonplace part of the Amer- tened to the critics of H.R. 497 as intro- self such time as I may consume. ican culture. Just this week, the Wash- duced, and they too have some valid (Mr. HYDE asked and was given per- ington Post illustrated the explosive points to make. In particular, they said mission to revise and extend his re- growth of gambling: that they do not fear the outcome of an marks.) What had been a mob-infested vice has be- objective study. However, they did ex- Mr. HYDE. Mr. Speaker, National come state-approved fun—a new national press concern that the Commission as Gambling Impact and Policy Commis- pastime. While 70 million people attend pro- proposed in the original version of H.R. sion Act (H.R. 497) would create a na- fessional baseball games each year, 125 mil- 497 might be biased against gambling tional commission to study the eco- lion go to government-sanctioned casinos. per se and that it was only charged nomic and social impact of gambling in Adults now spend more money gambling with looking at the negative effects of than they spend on children’s durable toys. gambling. our country. Three times more pilgrims from around the The legislation is the concept of our world visit the pyramid-shaped Luxor Hotel I believe that this Commission can do colleague, and my good friend, Con- in Las Vegas than visit Egypt. Casinos rake the most good if its study is as neutral, gressman FRANK WOLF of Virginia. in more profits than movie houses and thea- objective, and comprehensive as pos- This measure is on the floor of the ters and all live concerts combined. sible—considering the views of all sides House largely because of his articulate The Washington Post, March 3, 1996 of this issue. In that spirit, I proposed advocacy and persistence. A study of at A1. a committee amendment in the nature the impact of gambling on our soci- Many believe that this widespread of a substitute to H.R. 497, which the ety—focusing on both its positive and expansion of legalized gambling has Judiciary Committee adopted on a negative aspects—will be a helpful tool had numerous negative effects. In some voice vote. for policymakers at the Federal, State, instances, this conclusion is undoubt- My substitute included the vast ma- jority of the provisions contained in and local government levels. FRANK edly true. For example, many opportu- H.R. 497 as originally introduced, but it WOLF has identified a very important nities to gamble are now available to added language so as to assure that all public policy issue and he deserves high minors who are not ready to make a points of view would be represented on praise for his efforts. mature judgment about the nature of the Commission. Specifically, the bill On September 29, 1995, the full Judi- this kind of activity. Furthermore, ciary Committee held a hearing on now requires that the appointing au- compulsive gamblers frequently have a thorities consult together to ensure H.R. 497. At that time, we heard from negative, sometimes tragic, impact on that the overall makeup of the Com- 15 witnesses, including 8 Members of their families. mission fairly and equitably represent Congress. Also, subsequent to our hear- The traditional linkage between various points of view. It also drops the ing, the committee received 15 addi- gambling and crime is also an obvious requirement that one seat on the Com- tional statements for the record from concern. To give just one example, a mission go to a State Governor. I want other interested organizations and in- GAO report issued in January con- to avoid going down the difficult road dividuals. cluded that ‘‘the proliferation of casi- of specifying which group gets what During our hearing, we heard vir- nos, together with the rapid growth of seat on the Commission because I be- tually every point of view on gambling the amounts wagered, may make these lieve that is a decision better left to and its effects. For example, we had operations highly vulnerable to money the collective wisdom of the appointing testimony on the problem of compul- laundering.’’ General Accounting Of- authorities—the President, the Speak- sive gambling. We also heard from a fice, ‘‘Money Laundering—Rapid er, and the majority leader of the other university professor focusing on the Growth of Casinos Makes Them Vul- body. economic aspects of gambling—that is, nerable,’’ GAO/GGD–96–28, B–259791 In addition, the amendments add lan- job creation, impact on tourism, State (January 1996) at 2. As gambling con- guage that would require the Commis- and local government revenue, et tinues to spread, these negative effects sion to study both the positive and cetera. We also heard testimony from and others spread with it. negative aspects of the economic im- the chairman of the National Indian In addition, the proponents of H.R. pact of gambling. I believe that the op- Gaming Association, documenting how 497 have pointed out the lack of reli- ponents of H.R. 497 will agree that the emergence of an Indian gambling able information about the actual ef- these changes are a good-faith effort to industry in recent years has had a posi- fects of gambling. We simply need bet- address their concerns about the fair- tive impact on employment, economic ter and more accurate scientific and ness and balance of the Commission. development, and overall self-suffi- behavioral data concerning gambling. At the Judiciary Committee hearing, ciency for Indian tribes. Still others Because of this lack of information, I heard members of the committee ex- testified regarding the relationship be- State and local policymakers, who are press particular concern about the March 5, 1996 CONGRESSIONAL RECORD — HOUSE H 1677 issue of advertising concerning gam- amendment, and it is part of the sub- garding State gaming policy issues bling activities. Because of that con- stitute text we consider today. I want must be directed to State and local cern, the amendment adds language to thank Chairman DON YOUNG for his governments. But it does not. Does this that would require the Commission to cooperation in this matter. I also want mean new costly Federal laws or regu- study that issue. At the suggestion of to note that by cooperating with the lations will be implemented on gaming our colleague, Congressman HOKE, we Resources Committee, the Judiciary at a time when we are working to re- added even further specificity to the Committee does not waive any of its duce regulation? And, once again, when advertising language, and I appreciate traditional jurisdiction over Federal our States are the best ones to be han- his contribution and his willingness to gambling statutes and gambling issues dling this issue, why are we advocating work with us on this issue. generally. more Federal intrusion? Senator DICK LUGAR, as well as the I think all of these changes make the A final point I’d like to make is that Governor of my own State of Illinois, bill more balanced and comprehensive, if we are going to have a study, this Gov. Jim Edgar, raised the issue of and I appreciate the contributions of bill should be inclusive of all forms of gambling through the Internet and all of these members in working with gaming present in 48 of the 50 States other interactive technologies. The us to make this a better bill. including casino gaming, State lotter- amendment adds language directing I have discussed the various changes ies, charitable gaming, Native Amer- the Commission to look at this aspect contained in my substitute amend- ican gaming, Internet gaming, sports of the issue. We have also added lan- ment, as well as the Resources Com- betting, horse and dog racing and other guage that will require the Commission mittee amendment, with Congressman pari-mutuel activities. Why does this to study the impact of revenue from WOLF, and he has indicated his full sup- bill exclude charitable gaming from its State-sponsored gambling on State port for all of these changes. study? If you want a study on gaming, budgets. With respect to all of these I urge my colleagues to adopt the im- why are we picking and choosing, rath- changes, my thinking is that the more provements embodied in the committee er than including every type of gam- comprehensive the Commission’s study amendment and to pass H.R. 497 as ing? is, the more useful it will be. amended. Mr. Speaker, we don’t need another Mr. Speaker, I yield 3 minutes to the Another major change the amend- costly Federal study and we don’t need gentlewoman from Nevada [Mrs. ment would make is to shorten the more intrusion on our States’ right to VUCANOVICH]. time period for the study commission guide their existence. I urge defeat of from 3 to 2 years. The Maryland study Mrs. VUCANOVICH. Mr. Speaker, I rise today in opposition to this legisla- this bad legislation. commission urged that we make the tion, H.R. 497, which would create a na- Mr. FRANK of Massachusetts. Mr. time period even shorter. This will re- tional gambling commission to study Speaker, I yield 2 minutes to the gen- duce the costs involved with this ef- the impact of gaming on this country. tleman from New York [Mr. LAFALCE], fort. The amendment also made My time is short and my opposition is a cosponsor of the bill. changes of a technical and conforming (Mr. LAFALCE asked and was given well documented in my testimony last nature. permission to revise and extend his re- During committee consideration of year before the Judiciary Committee. But I believe, Mr. Speaker, what we marks.) this bill, Congressman BONO, Congress- are about to do here today goes against Mr. LAFALCE. Mr. Speaker, I rise in man SCHIFF, and Congressman everything this new Congress is sup- support of H.R. 497, the National Gam- GALLEGLY expressed concerns about posed to stand for—and that is limiting bling Impact and Policy Commission whether the proposed Commission the ever increasing intrusion of the Act. I wish to commend my colleague would end up being overly biased Federal Government into our everyday from Virginia [Mr. WOLF], for his ef- against gambling operations in gen- lives. Gaming and its regulation has forts and his leadership in bringing this eral, and Indian gambling operations, been the sole responsibility of our indi- legislation to the House floor today. in particular. I worked with these vidual States and it is my belief that The legislation before us today ad- members to craft language to amend this is where that responsibility must dresses issues and concerns that I have H.R. 497 to address these concerns. remain. Creation of a national gaming sought to bring to the attention of These changes include: First, language commission to study the impacts of Congress since 1994. As chairman of the to clarify that the Commission is to gaming simply infringes on that right Committee on Small Business, I con- study all forms of commercial gam- and we should be taking a very dim ducted hearings in 1994 that docu- bling include State lotteries, casino viewpoint of that action. mented the rapid proliferation of ca- gambling, pari-mutuel betting, and Quite honestly, Mr. Speaker, this sino gambling throughout the United sports betting; second, language that proposed commission leaves the States States and examined the economic im- clarifies that the study of political out in the cold. The proponents claim pact of Government-sponsored gam- contributions should include all politi- that the purpose of the study is for the bling on small businesses, on individual cal contributions that influence public States to be well informed about the communities, and on the Nation as a policy on gambling, not just those of gaming industry. First, let me say that whole. gambling operators; and third, lan- the States are extremely well informed Based on the findings of those hear- guage originally suggested by Con- about what their job is and they don’t ings, I introduced in 1994 the National gressman FRANK that would require need Washington to tell them how to Policies Toward Gambling Review Act the Commission to study the extend to do it. After all, they deal with the reg- to authorize a Federal study of the eco- which casino gambling has provided ulation of gaming on a daily basis. But nomic and social implications of this economic opportunity for Indians and this proposed commission avoids the widespread growth of legalized gam- residents of economically depressed State’s expertise by precluding our bling. This proposal, like that intro- areas. I also agreed to add language to Governors, State legislators, mayors, duced by Mr. WOLF, creates a new na- the report that further addresses their and locally elected officials from a tional commission, along the lines of concerns about the fairness of the major role in the study. This is of such the commission that last studied gam- makeup of the Commission. concern that in a recent letter, Gov- bling in 1976, and would expand its Subsequent to our consideration of ernor Roy Rowland of Connecticut, study to all aspects of gambling in all the bill, the Resources Committee cited his deep concern and specifically States and localities. I reintroduced sought and received sequential referral requested that State and local law- my bill in the current Congress as H.R. of the bill to review specifically its ef- makers have representation on the 462, and was delighted to sign on Mr. fect on Indian gambling. After its con- commission. WOLF as my first cosponsor. When he sideration, that committee made a sug- The approach taken by this bill is the subsequently introduced his most simi- gestion of one amendment that would usual Washington-knows-best syn- lar bill, H.R. 497, I was pleased to sign clarify the bill’s description of the drome. Let’s just say, I object to that on as his lead cosponsor. gambling regulatory policies to be premise. The 1994 Small Business Committee studied so that it now includes tribal This legislation should also require hearings convinced me that widespread regulatory policy. I have accepted that that commission recommendations re- legalized gambling has raised serious H 1678 CONGRESSIONAL RECORD — HOUSE March 5, 1996 questions that few local officials, and economy, discretionary spending is di- tracting spending from other States, American society generally, are pre- verted from other forms of entertain- the task force said that the issue must pared to address. The hearings also ment and consumer expenditures to ca- be addressed on at least a regional, if confirmed what a New York Times ar- sinos and other gambling establish- not national, basis. The task force also ticle headline had proclaimed several ments. Restaurants, hotels, and other concluded that, given the limited sta- weeks earlier, that gambling is now competing local businesses lose reve- tistical and economic analysis avail- bigger than baseball as a national pas- nues and fail. Scarce resources are di- able, it needed far more information to time. Some 125 million people visited verted to the least productive local ac- understand all potential consequences casinos in 1994, a whopping 36 percent tivities and economic wealth becomes of initiating casino gambling. increase from 92 million in 1993. Annual concentrated in fewer and fewer hands. Contrary to the arguments of some attendance at professional baseball In short, rather than the economic in the gambling industry, the bill be- games averaged only 70 million. Casino panacea promised by gambling promot- fore us today does not seek to restrict revenues increased by a whopping 33 ers, the opposite of economic develop- or regulate organized gambling, nor is percent between 1993 and 1994, from $30 ment appears to be occurring in many it intended as a preliminary step to- billion to $40 billion, and easily exceed communities. ward such regulation. It merely re- the combined revenues for other major The social costs of gambling also sponds to a growing public demand for leisure activities, including movies, have become more visible as gambling more and better information about books, recorded music, spectator has spread to more locations. However, gambling. And it responds to requests sports, theme parks, and arcades. there is little comprehensive data, for by officials in Maryland and elsewhere Americans wagered $462 billion on all example, on the costs of gambling-re- for a broad analysis of gambling that forms of legalized gambling in 1994, lated crimes, on personal losses and can incorporate information from all more than the entire gross national bankruptcies or on lost jobs and work States and from Indian tribal jurisdic- product of Communist China. More time due to gambling. Nor do we know tions. than $360 billion was wagered in casi- the costs inflicted on families in terms As State and Federal funding for so- nos in 10 States and on Indian reserva- of gambling-related alcoholism, abuse, cial services and other programs con- tions in 24 States, most of which were divorce, or suicide. tinue to decline, local officials will built after 1991. All but three States Recent studies in Iowa and Missouri come under even greater pressure to now permit parimutuel betting, slot found that between 3 to 6 percent of heed promises of new revenue and machines, video poker, keno, bingo, or gamblers become compulsive gamblers greater prosperity in legalized gam- other forms of gambling. And 36 States and that a large percentage of compul- bling. It is imperative that these offi- actively encourage gambling with gov- sive gamblers resort to crime to cover cials, and the public generally, have all ernment-run lotteries. their losses. Other studies have esti- This is a far different situation than mated the public costs of each problem the information available to make rea- existed when the last national commis- gambler, in terms of treatment, serv- soned and prudent policy decisions. sion issued its report on gambling in ices and court expenses, as between Nearly 2 years have passed since I 1976. Legalized gambling was then con- $13,000 and $35,000. Even at the lowest first proposed legislation to create a fined to Nevada, and was under consid- cost estimate, according to witnesses national commission to study gam- eration in Atlantic City. The focus of in our 1994 hearing, an increase in gam- bling. It was needed then, it is impera- the commission’s study was the influ- bling addiction of only one-half of 1 tive now. I urge adoption of this impor- ence of organized crime in gambling, percent of a State’s adult population tant legislation. not the various economic and social would translate into added costs of $73 Mr. HYDE. Mr. Speaker, I yield 3 implications of widespread gambling million a year in a small State like minutes to the gentleman from Vir- across the country. For Nevada, and Iowa and more than $780 million in new ginia [Mr. WOLF], the chief sponsor of later Atlantic City, gambling provided costs in a large State like California. this bill. what experts termed a monopoly ex- Such costs could eventually nullify any (Mr. WOLF asked and was given per- port economy—the popular conception economic gains from gambling. mission to revise and extend his re- of gambling as a model for economic Concern with the economic, social marks.) development in which new jobs, higher and moral implications of Government- Mr. WOLF. Mr. Speaker, I rise in tax revenues, and other economic bene- sponsored gambling has created some- strong, strong support of this bill. The fits are created for a local economy by thing of a public backlash against the bill has over 150 to 160 cosponsors. tourists from other locations. This gambling industry. In the November Let me begin by thanking Chairman model offered the added benefit of hid- 1994 elections voters from Florida to HYDE personally for his work on this ing the economic and social problems Wyoming rejected 90 percent of all effort. I want to commend the gen- of gambling—including bankruptcies, State and local referenda to legalize or tleman. I appreciate the good work gambling addiction and crime—which expand gambling operations. Last No- that he has done. I also want to thank tourists simply took home with them. vember, gambling initiatives were de- As gambling has spread across the feated in Washington and Massachu- Alan Coffey, who I have known for United States, and even to locations on setts, while special panels in Maryland about 30 years, for his outstanding our border with Canada, it has become and Connecticut rejected new casino work; and lastly for Joe Gibson, your clear that this model of gambling as proposals. This suggest a growing pub- staff, and your other staff people who economic development is no longer ef- lic consensus that the pace of future have done a superb job. fective. States and localities now com- casino development should be more This is important. There are now 48 pete with Indian reservations, with measured and that future growth of States that have some form of gam- other States and with other countries gambling generally must be given bling, whether it be lottery, casino to lure potential gamblers or, at mini- greater scrutiny at the local, State, gambling, and whatever the case may mum, to keep their own gambling reve- and national levels. be. This is important to stop and take nues at home. Casinos that were touted A report issued in November by a a close look at it. Now, there are going as bringing jobs and economic enrich- special Maryland task force to study to be many other things, and I have ment to communities in 1994 are now casino gambling is particularly in- spoken from the floor on this issue going bankrupt. structive and highlights two of the many, many times. What we now have is an economic most important issues in the legisla- I believe it is inappropriate, the model of gambling that the casino in- tion before us today. In recommending spread of gambling that has taken dustry itself refers to as ‘‘convenience’’ against casino gambling, the task force place in the country. All you have to gambling. Rather than confining gam- concluded that casino gambling is an do is read the Washington Post series bling to specific locations for purposes issue Maryland cannot address on its that was on Sunday and Monday and of economic development, gambling is own. Since the economic benefits of Tuesday and again tomorrow to see made readily available to all potential gambling come largely from reductions that from two States we have grown to customers. In a convenience gambling in other consumer spending or by at- roughly 48 States. March 5, 1996 CONGRESSIONAL RECORD — HOUSE H 1679 Let me just say—it is not in my gambling. It does not tax gambling. It does not ing the slots with their children's lunch money statement—for the record, powerful in- regulate gambling. It merely recognizes that or the Northeast Mississippi Daily Journal arti- terests in this city have been hired to gambling is spreading throughout the country cle that indicated that more money was bet in derail this bill. Prominent people in like wildfire and it needs a hard look. This is casinos, $29.7 billion, in 1994 than was spent the Republican Party and prominent our responsibility as Federal legislators to cre- on all taxable sales, $27.6 billion, in the State. people in the Democratic Party from ate a commission to bring together all the rel- No longer can we ignore reports of teenagers the K Street corridor have been hired evant data so that Governors, State legisla- so addicted to gambling that they prostitute to detract and derail and stop this bill. tors, and citizens can have the facts they need their girlfriends to pay off their mob debts. And This bill is going to pass today by an to make informed decisions. Congress will no longer be able to disregard overwhelming vote. There literally is In the early 1970's Congress was con- accounts of Americans so distraught over their very, very little opposition because it cerned about problems related to gambling, mounting gambling debts that their only per- is a fair study that the American peo- and it established a commission similar to the ceived recourse is suicide. ple want to see. What is the impact one pending before the House today. Since Mr. Speaker, America has begun to focus with regard to economic cannibaliza- the Commission on the Review of the National on the issue of gambling and its related prob- tion, what impact does it have, and Policy Toward Gambling issued its 1976 re- lems. By passing H.R. 497 today, Congress what is the impact with regard to cor- port, gambling has greatly expanded, and it will take a meaningful step toward bringing to- ruption and political contributions? has grown in many ways that are contrary to gether all the relevant data so that Governors, What is the impact to social aspects the recommendations of that early report. In State legislators, and citizens can have the with regard to Gamblers Anonymous 1976 only two States had casino gambling. facts they need to make informed decisions. and things like this? Today, every State but two have some form of Mr. Speaker, I include for the RECORD four So we are going to watch it, and I ap- legal gambling. According to U.S. News & editorials in support of this legislation, as fol- preciate the efforts in the House. It is World Report, people wagered $482 billion in lows: bipartisan. We have the gentleman 1994 on all forms of gambling, 85 percent of [From the Saturday Oklahoman, Oct. 28, from Illinois [Mr. HYDE] and the gen- which took place in casinos in 27 States, most 1995] tleman from Michigan [Mr. BONIOR]. I of them built in the past 5 years. As gambling STUDY COULD HELP remember one day I was giving a 1- proliferates in casinos, on riverboats, on Indian The battle over legalizing casino gambling minute speech and the gentleman from reservations and elsewhere, problems such as in Oklahoma apparently will be fought at crime, political corruption, cannibalization of the polls instead of in the courtroom. Michigan got up and said, ‘‘I want to be Casino proponents have gathered 202,993 on that bill.’’ We have come together existing businesses, gambling addiction, family signatures on petitions to place the proposal in the best interest of this body. breakups, and suicide appear to be a growing on the ballot, the secretary of state says. A In closing, I appreciate the Speaker and unfortunate consequence. It is time for leading opponent says his group believes it of the House, the gentleman from Geor- Congress to take a comprehensive look at would be useless to challenge the petition, gia [Mr. GINGRICH], making this a pri- gambling and its associated problems. based on past Supreme Court rulings. In- ority item to bring up, and also the The gambling industry and its proponents stead, foes will focus on defeating the pro- posal, possibly at the time of the presi- gentleman from Texas [Mr. ARMEY] in argue that this study is not needed because dential primary on March 12. Casino boosters not allowing some of these people that this issue should be left up to the States. Well, Governors Lowry, Washington; Bush, Texas; want to question on the November 1996 gen- are—and I am reluctant to get into eral election ballot. their names—who have been hired by Dean, Vermont; Carper, Delaware; Sundquist, In either case, Oklahomans will have time the gambling interests to derail this Tennessee; Merrill, New Hampshire; to study the issue and should try to get all bill. Cayetano, Hawaii; Voinovich, Ohio; and the information they can to help them make My closing comment is, I personally Racicot, Montana disagree and support H.R. their decision. care about this almost as much as I 497. I have heard from many State attorneys Of interest in this respect is an editorial in The News Journal of Wilmington, Del. It care about a lot of things that we are general and legislators who also support a na- tional study of gambling. H.R. 497 has re- raises concerns about casinos due to open taking. I am going to watch what hap- this year at Delaware racetracks. pens on this bill. I am going to watch ceived wide editorial support as well from pa- News stories in the paper estimate perhaps and see what takes place over in the pers such as the Washington Post, Dallas $400 million will be poured into 1,200 slot ma- Senate. Morning News, Los Angeles Times, Cincinnati chines the first year. But the profit to the What I would ask is those who have Enquirer, Philadelphia Inquirer, Richmond- state would be only $8 million, about 2 per- some problem with this bill, this bill Times Dispatch, Capital Times, Madison, WS, cent of the wagering. The slot machines ought to be allowed to pass, whereby Sacramento Bee, Chicago-Sun Times, Sun- would return 90 percent or more to the bet- Sentinel, Fort Lauderdale, FL. Also, this legis- tors, with the rest going to track owners, we can set up a national commission, purses for the horses, slot machine leases whether it be for 18 months or 2 years, lation is supported by the Christian Coalition, Traditional Values Coalition, Concerned and state administrative costs, according to whereby 9 men and women of decency the paper. and honesty who are not tied into any Women for America, American Family Asso- The editorial worries about the potential particular community can look at and ciation, Focus on the Family, Family Research for abuse existing in all aspects: gambling examine this issue. Council, and others. Recently, a coalition of 16 contractors, casino employees, bettors, own- Again, I want to thank the gen- churches in America wrote the House and ers and operators. It notes that smaller oper- Senate leadership in support of this important ations like Delaware’s are considered more tleman from Illinois [Mr. HYDE] and his susceptible to corruption than the big gam- staff very, very much from the bottom legislation. Why do so many Governors, State attorneys bling meccas, like Atlantic City and Nevada. of my heart. general, State legislators, and citizens support ‘‘While much is said about the possible Mr. Speaker, as the original sponsor of the benefits from slots to racing and new jobs, H.R. 497? The reason is that there exists little pending legislation, I rise in ardent support of businesses and revenue, how much is really credible or reliable information about gam- H.R. 497, the Gambling Impact and Policy known about the influence of organized bling, and much of the information that does crime, the potential for political corruption Commission Act and appreciate your schedul- exist is produced by the gambling industry it- ing this important legislation for floor consider- and the social toll on individuals and fami- self. Joseph Tydings and Peter Reuter, chair- lies?’’ the paper asks. ation. Also, I would like to take a moment to man and executive director respectively of The editorial supports legislation pending recognize the diligent efforts of the chairman Maryland's Joint Executive Legislative Task in Congress to establish a National Gambling of the Judiciary Committee and his able staff Force to Study Commercial Gambling, in an Impact and Policy Commission to help states in guiding this legislation through the commit- evaluate the effects of legalized gambling. opinion article which ran in the Washington Such a study could also prove useful also for tee process. It was a pleasure working with Post, wrote: Chairman HYDE in bringing this bipartisan bill Oklahoma as it is confronted by efforts to The problem of legal casino gambling is a expand gambling activities in the state. to the floor. national one. . . . The problem cries out for Mr. Speaker, H.R. 497 is complicated. It attention from the President and Congress. [From the Indianapolis News, Feb. 29, 1996] would charge the National Gambling Impact Unfortunately, the casino industry has mobi- LOOKING AT THE FACTS and Policy Commission with the duty of mak- lized cash and lobbyists to prevent Federal Since it’s only a study commission, it ing an objective, comprehensive, and impartial action on the issue. might be pertinent to wonder why the gam- legal and factual assessment of gambling. Let Mr. Speaker, Congress can no longer turn a bling industry wants to delay or water down me be clear. This legislation does not outlaw blind eye to the stories of poor mothers play- House Resolution 497. H 1680 CONGRESSIONAL RECORD — HOUSE March 5, 1996 This proposal, by Rep. Frank Wolf, R-Va., As recently as 1984, just two states, Nevada governments all over the country to sponsor would establish a national commission to and New Jersey, allowed casino gambling. their own forms of gambling through lotter- study the economic and social impact of le- Today nearly half the states have casinos on ies and other games. The idea was that a por- galized gambling. land, water or Indian reservations. Only tion of the public treasury would be filled The problem for the gambling industry is Utah and Hawaii have no state-sanctioned with money ‘‘voluntarily’’ handed over in the fact that such studies tend to hurt their gambling. bets. Once Atlantic City got going, many cause. Researchers who study this business The increase in the number of gambling economically strapped communities that keep finding unpleasant facts and informa- outlets clearly seems to have changed the saw no other way to support themselves fig- tion that make it harder for the industry to public’s betting habits. According to the ured they too should get a piece of the ac- make its case to local and state govern- General Accounting Office, between 1984 and tion. Jobs in casinos look mighty attractive ments. 1994 the annual amount bet on legalized gam- to the unemployed and underemployed, and University of Illinois economist Earl ing—including casinos, lotteries, parimutual local officials staring at huge local budget Grinols, for example, keeps coming up with betting and sports books—jumped by 137%, problems tend to look kindly on any new studies showing that the economic develop- from $147 billion in 1984 to $482 billion in revenue sources. Finally, there was the 1987 ment claims offered by the industry are ex- 1994, more than twice the current annual Supreme Court ruling legalizing gambling on aggerated or false. He finds that off-track budget deficit that consumes so much con- Indian reservations, which opened up whole betting outlets, for example, do not gen- gressional attention. new areas of the country to gambling—and erally bring new economic development to a Rapid-fire expansion of legal wagering has gave a new moral justification to casinos as community but transfer discretionary spend- meant new jobs and tax revenues to state Native American leaders argued that their ing from retail businesses such as res- and local governments, but it has also re- people were at last getting their due. taurants to gambling establishments. sulted in serious problems. Though most of This is how large social changes happen— Additionally, the facts on gambling addic- the evidence is anecdotal, signs of the social in small increments that no one notices tion are devastating to legalized gambling and economic downside are proliferating, much until a big transformation has taken promoters. The financial costs are difficult from housewives blowing monthly household place. Mr. Wolf and his allies are suggesting to pinpoint precisely, but they run into the budgets to sharp-suited toughs showing up in that on gambling, the country look ahead billions of dollars when all factors are town. before it is too late, or too complicated, to weighed. Families wind up on welfare when What is the extent of gambling addiction? turn back. fathers or mothers get addicted. Crime in- Has its expansion increased criminal activ- Mr. FRANK of Massachusetts. Mr. creases as the addicted turn to theft, forgery ity? Has political corruption become a prob- lem? Is there a multiplier effect on jobs from Speaker, I yield 2 minutes to the gen- and other such practices to feed this habit. tleman from American Samoa [Mr. But the human cost is harder to weigh. Some gaming? Or does legal betting drain money people have committed suicide. Others wind away from other businesses and drive them FALEOMAVAEGA]. up all but abandoning their children in favor into the ground? Mr. FALEOMAVAEGA. Mr. Speaker, of this form of entertainment. As it now stands, there are no clear an- I would like to engage the distin- Wolf’s proposal is timely. Critics claim the swers to these questions. Opponents, includ- guished chairman of the committee in issue is a state or local matter. But the fed- ing the American Gaming Assn., argue that a brief colloquy. eral government allows Indian gambling ini- by involving itself in an expansive gaming Was it the intent of the Committee tiatives to circumvent state or local govern- study, the federal government is potentially on the Judiciary to include the U.S. ment jurisdiction, and there are other na- interfering in local matters. But this is only Territories, Commonwealths, and pos- a study. If gambling is the sure-fire winner tional implications of legalized gambling’s sessions within the meaning of the proliferation in recent years. that proponents say it is, there ought to be Sen. Richard Lugar, R-Ind., has made a nothing to worry about. terms ‘‘United States,’’ ‘‘States,’’ and proposal similar to Wolf’s, offering it in his ‘‘political subdivisions of States’’ as presidential campaign. Lugar and Wolf have [From the Washington Post, Oct. 3, 1995] used in section 4 of this legislation? been joined by many other members of Con- GAMBLING NATION? Mr. HYDE. Mr. Speaker, will the gen- gress. In Indiana, newspaper publisher On the opposite page, Rep. Frank Wolf (R- tleman yield? George Witwer, as a candidate for governor, Va.) makes a strong case for his bill to set up Mr. FALEOMAVAEGA. I yield to the has called for a state study commission, and a National Gambling Impact and Policy gentleman from Illinois. legislation in the General Assembly may be Commission. His point is hard to refute: If Mr. HYDE. Yes, Mr. Speaker, it is adopted to provide for a legislative study the United States’ headlong rush into be- our intent that the U.S. Territories, committee on the subject. coming Gambling Nation is a great idea— Commonwealths, and possessions be in- The Washington Post warns that the gam- good for business, for the social order, for cluded in H.R. 497, as the gentleman bling industry will be trying to stop or delay government revenues—surely a fair-minded the national proposal in Congress. A recent commission would discover such a thing. has stated. editorial noted: ‘‘The gambling industry has And please, no talk about ‘‘undue govern- Mr. FALEOMAVAEGA. I thank the a great deal of money, has been making large ment interference with free enterprise.’’ As distinguished gentleman. campaign contributions and recently hired Mr. Wolf points out, there is absolutely Mr. Speaker, while having some res- some of Washington’s most influential lob- nothing in his bill that involves taxing or ervations which I will note later, I rise byists. We have no doubt that the industry regulating gambling. He simply suggests today in support of H.R. 497. can bring a lot of pressure against this bill that states and localities that get inundated Mr. Speaker, the amount of gambling and construct some ingenious strategies to with pro-gambling propaganda—and politi- has increased considerably in the Unit- weaken it.’’ cians who get inundated with political con- ed States over the last two decades. Congress ought to listen to Wolf, Lugar tributions from gambling interests—get a and others calling for a study commission on While before many Americans were chance to see how all the arguments for confined to gambling in the States of this issue. There is much at stake, as such a gambling pan out in reality. commission would point out. What needs to be understood in this debate Nevada and New Jersey, or to pari- is that the central issue is not the end to all mutuel betting, today fully 48 of the [From the Los Angeles Times, Mar. 5, 1996] legalized gambling in America—this is not a States of the United States participate TAKING A HARD LOOK AT GAMBLING replay of the arguments over Prohibition. in some form of gambling. This has Rocked to attention by the explosion of For better or worse, most Americans seemed provided a new stream of revenue for legal gambling across the country in the to accept the situation that existed some State and municipal treasuries, which past two decades, Congress is belatedly, but years ago in which large-scale casino oper- has in turn provided additional services sensibly, considering legislation calling for a ations were confined to the states of Nevada to the residents of those States. comprehensive national study on the social and New Jersey. This sent powerful mes- The issues this legislation tries to and economic effects of gambling. Lobbyists sages: that casino gambling was not a rou- accuse government of trying to stack the tine activity and that communities had good address are very comprehensive, and I deck to expand its regulatory reach. But reason not to turn themselves over to gam- commend the chairman and members without a study and reliable data, what con- bling. The nation effectively accepted that of the Judiciary Committee for trying clusions can be drawn? many people liked to gamble, but it also ac- to address these issues. For most The bipartisan legislation, endorsed by 143 cepted that organized commercial gambling Americans, gambling provides leisure- cosponsors in the House and 16 in the Senate, was not the sort of activity that ought to be- time entertainment. For a small mi- calls for the creation of a commission to con- come a routine part of life. Implicit in this nority, however, many of whom are duct a two-year national study of the effects national compact was an understanding that those who least can afford to lose their of gambling. Its recommendations are ex- the potential for crime and political corrup- limited earnings or savings, gambling pected to provide guideposts for states and tion ought to be contained. Call it the en- localities in dealing with legal gambling’s clave theory of gambling. is an addictive, destructive habit. The transformation from sleepy enterprise to a Several things have happened since. One is question is, as a matter of public pol- national economic force. that popular resistance to taxes has moved icy, Are the drawbacks to permitting March 5, 1996 CONGRESSIONAL RECORD — HOUSE H 1681 gambling so destructive that legal The U.S. Government does not have Mr. HYDE. Yes, Mr. Speaker, it is gambling should be restricted or elimi- the money to make all the capital im- our intent the commission would be nated? provements needed on the reservations, free to study the public safety cost While I am not a gambler, as I noted and through the Indian Gaming Regu- that gambling operations, including earlier, gaming activities are being latory Act, Congress has established a those operations on Indian reserva- used by almost all States for public system to pay for improvements in In- tions, impose on local law enforcement purposes. Gaming operations are also dian country through voluntary, pri- agencies. I believe that is implicit in now being used by American Indians vate contributions. After 500 years of subparagraphs A, D, G, H, and M of throughout our country to raise money mistreatment, this is one Indian pro- subsection 4(a)(2). for improvements to schools, hospitals, gram I feel good about—it is voluntary, Mr. RIGGS. I thank the gentleman. I and roads on their Indian reservations. efficient, and privately funded. strongly support the legislation. As a member of the Committee on Re- I have heard accusations that Indian Mr. Speaker, I want to bring to Members' at- sources, I am especially concerned that gaming is fraught with criminal activ- tention a matter of importance brought about Indian gaming not be unfairly targeted ity including Mafia and other syn- from the proliferation of gaming operations in should this legislation become law. dicate-type operations, but the truth is northern California. My concern is that there may be in- these allegations have been inves- Mr. Speaker, I am a strong supporter of the dividuals who want to use this bill in tigated by Federal authorities and they National Gambling Impact and Policy Commis- an attempt to stop or curtail gaming are unfounded. In fact, at hearings I sion Act. I believe, however that it is important throughout the United States, and that helped organize, the Federal Bureau of to clarify one aspect of the legislation. this opposition is centered on moral Investigation testified before the House Like many other regions of hte Nation, the grounds but more particularly, that Subcommittee on Indian Affairs during Indian tribes in northern California are estab- this is an attack on the successes the 104th Congress that there is no lishing gaming operations in order to provide a which have been achieved by American truth to these allegations. Indian gam- much needed source of revenue for de- Indians through gaming. ing is a well-managed, highly regulated pressed rural areas. If this were truly a moral concern, activity providing widely disbursed While, I support the efforts of native Amer- why is the Commission being empow- public benefit. ican communities to establish a self-sufficient ered to study only gaming? Why not I appreciate the willingness of the form of revenue, the residual impacts of the also include the study of alcohol con- Committee on Judiciary to remove gaming operations on local communities are sumption, the use of cigarettes and to- some of the most egregious anti-In- having unanticipated consequences. bacco among teenagers and adults, and dian-gaming provisions contained in Not long ago, the Elem Indian colony, in abortion, too? Are those activities any H.R. 497, as it was introduced. Given Lake County, CA, erupted in 5 days of shoot- more or less moral than gaming? Congress’ efforts over the years to ing over control of two casinos where video Again, for those who may be deter- monitor and regulate this activity, I poker and pool are played. On more than one mined to eliminate Indian gaming, I am concerned that other amendments occasion, the county swat team and law en- find it very unfair to target only gam- offered by the Committee on Resources forcement officials have been called to the ing in this Commission. Those of us on were not included in the legislation to scene to prevent the continuation of hostilities the Committee on Resources are famil- ensure Indian gaming received fair con- between the two competing factions. Tensions iar with the long-standing problems sideration. For example, given the ex- on the reservation are high and are directly at- within Indian country. By most, if not tent to which Indian gaming is feder- tributable to the operation of the gaming facili- all measures, our American Indians are ally regulated, and the complexity of ties. at the bottom of the ladder when it. those regulations, I believe it would be The resulting hostilities have been a drain comes to housing, income, education, beneficial to include on the Commis- on local law enforcement. The county govern- or any other measure of economic de- sion persons with an expertise in this ment is not recompensed for its services relat- velopment. Here are a few facts which area. ing to the reservation. portray the dismal conditions in which I also want to express my concern I would hope that the Commission would many of our first Americans live. with the limited time in which the study the financial and public safety costs of I ask my colleagues to keep in mind Committee on Resources was afforded Indian gaming operations on county and mu- that the locations of the reservations to consider this bill. H.R. 497 was re- nicipal law enforcement. on which many American Indians now ferred to the Committee on Resources Although the legislation does not directly ad- live, are not locations of their choos- for the period beginning December 21, dress this topic, I have noticed that section 4, ing. Many tribes were forcibly moved 1995, through February 28, 1996, most of subsections D, G, and H, include reviews re- to these reservations from much more which time the House was adjourned or lating to crime and the effectiveness of law en- desirable locations at which they could in pro forma session. forcement and regulatory polity as it relates to and did provide for themselves. Finally, I want to express my appre- Indian Gambling. It would seem to me that the Fact: the life expectancy of an Amer- ciation to Chairman HYDE for his will- Commission should address the impact and ican Indian is 47 years; the life expect- ingness to include the territories in cost of native American gaming operations on ancy of all Americans is 78 years. this legislation. county law enforcement. Fact: the 1990 census determined that b 1200 It is my hope that the Commission will ad- 30.9 percent of our Nation’s Indians live Mr. HYDE. Mr. Speaker, I yield 1 dress the concerns of northern California com- in poverty; the poverty rate for the minute to the distinguished gentleman munities, and communities across the Nation U.S. population was 13.1 percent. from California [Mr. RIGGS]. that reside near native American gaming facili- Fact: in 1991, the unemployment rate (Mr. RIGGS asked and was given per- ties? on Indian reservations was 45 percent; mission to revise and extend his re- Mr. FRANK of Massachusetts. Mr. for the United States, when that num- marks.) Speaker, I yield such time as she may ber goes above 7 percent we take sig- Mr. RIGGS. Mr. Speaker, I would like consume to the gentlewoman from nificant action to reduce it. to engage the gentleman in a brief col- Texas [Ms. JACKSON-LEE]. I could go on, but I think my point is loquy. (Ms. JACKSON-LEE of Texas asked clear: the Indians are in trouble, and Is it the intent of the Committee on and was given permission to revise and they can use whatever assistance is the Judiciary that the Commission be extend her remarks.) available. free to study the public safety costs Ms. JACKSON-LEE of Texas. Mr. Mr. Speaker, through the judicious that gambling operations, including Speaker, as a member of the Commit- use of gaming operations, Indian coun- those operations on Indian reserva- tee on the Judiciary, I rise in support try is slowly pulling itself up the lad- tions, impose on local government and of H.R. 497, for it covers an area that der of life. Indian gaming is a well-reg- local law enforcement agencies? provides information for all of us to ulated system that is serving its pur- Mr. HYDE. Mr. Speaker, will the gen- move forward and to ensure that gam- pose remarkably well. No one is forced tleman yield? bling is not hurtful. to gamble and all the profits received Mr. RIGGS. I yield to the gentleman Mr. Speaker, I am pleased to cosponsor this by the tribes go directly to tribal uses. from Illinois. important legislation, which establishes a nine- H 1682 CONGRESSIONAL RECORD — HOUSE March 5, 1996 member Commission to study gambling in the Something is going on, and you can Mr. FRANK of Massachusetts. Mr. United StatesÐincluding gambling on Indian relate it to a lot of different things; the Speaker, I yield 2 minutes to the gen- reservations, State-sponsored lotteries, casino stagnant wages of 80 percent of the tleman from Michigan [Mr. KILDEE]. gambling and sports betting. population who have not seen an in- (Mr. KILDEE asked and was given Gambling has become an important part of crease in wages basically, real in- permission to revise and extend his re- American life. Americans are betting and los- crease, since 1979, may attribute to marks.) ing more money each year than it spends on that. I mean, are we really to the point Mr. KILDEE. Mr. Speaker, the ques- all spectator sports combined. Gambling has the American dream means pinning tion we face today is not whether one also become a major source of revenue for your hopes on a weekly basis on the is for or against gaming. The fact is many State governments. I am concerned, lottery? that gambling has been part of our so- however, that we do not completely under- We have got to look at this. There ciety for a long, long time—and it stand the impact of gambling on our society. are serious social implications with re- probably will continue to be that way. Just yesterday, the Washington Post re- spect to gambling. Gamblers Anony- The question we face today is what role ported the story of a Louisiana woman who mous, in Illinois, did a study. A third should the Federal Government play in became addicted to video poker. She de- of the people said they lost or quit regulating gambling. I am not sure scribed it as an addiction as powerful as any their jobs because of gambling. Sev- what that role should be. I am not con- drug. This woman squandered her entire sav- enty-six percent said they missed time vinced that today’s system of checks ings, including a trust reserved for her from work because of gambling. Forty- and balances is broken. Today, the grandson's education, on the video poker four percent had stolen from work to States have been used as the primary games which are in many of the State's bars pay for gambling debts. It goes on and regulatory body that oversees commer- and restaurants. Do State governments that on and on. cial gaming. Like my friend from Mas- push gambling have any responsibility for peo- I am conflicted by this issue, because sachusetts, I thought the Republicans ple who become hooked was just one ques- of how the native Americans in our would be happy knowing that the tion that the article asked. country have been become resourceful States are regulating gaming oper- The Commission established by this bill and done well economically because of ations—much like the Republicans would be required to conduct a comprehen- this, and I understand that concern, want the States to regulate WIC, sive, legal and factual study of the impact of and it is a legitimate concern that we school lunch programs, welfare, and gambling on Federal, State, and Tribal govern- have to face. Medicaid. ments in an attempt to answer some of the But it seems to me, with all of this But if this study is going to happen, questions that have arisen from the Nation's proliferation of gambling in the coun- it should not be used as a vehicle to at- new obsession. try, we need to really have a serious, tack Indian gaming and the sov- The Commission would also study the influ- rational look at it, and I support the ereignty of tribal governments. Mr. ence of political contributions on the develop- efforts on the part of my colleagues Speaker, if one was reading the Wash- ment of public policy regulating gambling, as bringing this up, and commend the ington Post this morning, they may be well as the relationship between gambling and gentleman from Illinois [Mr. HYDE] and led to believe that Indian tribes who crime. The bill requires the Commission to re- the gentleman from Virginia [Mr. engage in gaming are basically unregu- view the effectiveness of existing practices in WOLF]. lated entities operating casinos across law enforcement, judicial administration, and Mr. HYDE. Mr. Speaker, I yield 1 the country. But as we know, nothing corrections to combat and deter illegal gam- minute to the gentlewoman from Utah could be further from the truth. The bling and illegal activities related to gambling. [Mrs. WALDHOLTZ]. fact is that Indian gaming is the most The bill also directs the Commission to study Mrs. WALDHOLTZ. Mr. Speaker, I heavily regulated gaming industry in the effects of advertising and whether it in- rise in strong support of H.R. 497, the America. The tribes have three layers creases participation in gambling activities. National Gambling Impact and Policy of regulatory bodies they have to deal America has become a gambling nation. Commission Act, of which I am proud with. The tribes themselves have their This bill will study the effects, both positive to be a cosponsor. own law enforcement and court sys- and negative, of our new favorite pastime and I want to commend the gentleman tems to provide oversight on the res- I believe it is important to do so. from Virginia [Mr. WOLF] and the gen- ervations. And tribal regulatory and Mr. FRANK of Massachusetts. Mr. tleman from Illinois [Mr. HYDE] for control standards are generally equal Speaker, I yield 2 minutes to the gen- their leadership on this important leg- or greater than State or industry tleman from Michigan [Mr. BONIOR], islation. standards. The tribes must also deal the minority whip. Mr. Speaker, we dearly need a com- with a host of Federal regulators—in- (Mr. BONIOR asked and was given mission to study effects of gambling in cluding the Department of Justice, the permission to revise and extend his re- the United States. One only needs to FBI, the IRS, and the Department of marks.) read the front page of last Sunday’s Interior. And as a result of the Indian Mr. BONIOR. Mr. Speaker, I do not Washington Post to understand why. Gaming Regulatory Act of 1988, the come at this issue as a Pollyanna. I Legalized gambling in the United States have also been given a role to mean, I have on rare occasions bought States has exploded 2,800 percent in the limit Indian gaming during the com- a lottery ticket and played the ponies last two decades, from $17 billion in pact process. in my day. 1974 to $482 billion in 1994. Mr. Speaker, another fact is that in I must be very frank with you, Mr. As has been earlier stated, Americans Indian country, the money generated Speaker, I watch this gambling explo- lost $40 billion of what they bet, more from gaming must, by law, be used for sion now in the last two decades since than 6 times what Americans spent on purposes to benefit the tribes. Today, 1974. It really has become something all spectator sports combined. We need the tribes employ 140,000 people nation- we as a country really need to look at to ask ourselves what this explosive wide, with about 85 percent being held and study. growth is doing to our economy, our by non-Indians. The tribes have used Two decades ago we spent $17 billion communities and to our families. their gaming dollars to build schools, on gambling in this country; in 1994, There is disturbing evidence of urban homes, and health clinics to better $482 billion. Americans lost $40 billion decay, public corruption, despair and serve their members. But I have some of what they bet, more than 6 times suicide among addicted gamblers. We real concerns about this bill. I am con- what they spent on all spectator sports must know for certain what the net ef- cerned that while this Commission will combined, and while 70 million people fects of legalized gambling are. focus a great deal of its time on Indian attend professional baseball games The stakes are too high to let these gaming, there is no guarantee that a each year, 125 million go to govern- questions go unanswered, and I urge person from Indian country will even ment-sanctioned casinos. Adults spend my colleagues to support this impor- be a member of the Commission. I hope more money gambling than they spend tant legislation so that we can have any Senate bill will include a provision on children’s durable toys. Lottery the facts as we make decisions about requiring two members of the Commis- ticket sales have increased 829 percent what role gambling should play in our sion be from federally recognized tribes since 1982. country. who engage in gaming. Finally, Mr. March 5, 1996 CONGRESSIONAL RECORD — HOUSE H 1683 Speaker, I remain deeply concerned There is no evidence that such a study is that educational funds for our children that there are some people in the even necessary. The gambling operations of have been enhanced because of the rev- House who would like to use this bill as the native American tribes, which would be enues that they receive from the gam- a vehicle to attach amendments that one of the subjects of this study, have shown ing industry. would be detrimental to Indian gam- no evidence of any connection with organized Mr. Speaker, I strongly urge a ‘‘no’’ ing. If this bill passes the House and criminal activity. The bill does not provide a re- vote on this bill. moves over to the Senate, I would hope quirement that there be native American mem- Mr. HYDE. Mr. Speaker, I yield 1 that body would reject any attempt to bers of the Commission. minute to the gentleman from Indiana add such amendments to this bill. Such The bill's study does not cover all forms of [Mr. ROEMER]. a move would be unwise and counter- gambling. (Mr. ROEMER asked and was given productive. It would lead many people Indian gambling has produced hundreds of permission to revise and extend his re- who support this bill, to actively op- thousands of jobs, both directly and indirectly, marks.) pose it. and has been of tremendous economic bene- Mr. ROEMER. Mr. Speaker, I thank Mr. HYDE. Mr. Speaker, I yield 1 fit. This is the first time that the tribes have the gentleman for yielding me this minute to the gentleman from Guam been able to bring in a significant amount of time. I would like to begin by saluting the [Mr. UNDERWOOD]. revenue, and they have used it for hospitals, gentleman from Virginia [Mr. WOLF] Mr. UNDERWOOD. Mr. Speaker, I schools, and other improvements to their com- for his hard work on this particular thank the chairman for yielding time munities. to me. bill. Creating this Commission will create an- We are hearing a lot about what this I rise in support of H.R. 497, which other Federal bureaucracy which will have would establish a national commission bill is and what it is not. I think one of subpoena power. our former Presidents once said, ‘‘Edu- to study the impact of gambling in Regardless of one's position on whether America. cation is expensive, but ignorance is gambling is a positive or negative force, the even more expensive.’’ This bill is Numerous studies have been con- States and localities must decide for them- ducted on the impact of gambling, about educating the American people. selves, and they are already doing so. It is not about mandating the States. studies which have generated a variety Mr. FRANK of Massachusetts. Mr. It is about getting information out to of conclusions, largely dependent on Speaker, I yield 2 minutes to the gen- the people about what the gaming in- who funds them. tleman from New Jersey [Mr. This commission will be unique in dustry and the gambling is doing to LOBIONDO]. that it will hopefully provide an objec- our small businesses and our families (Mr. LOBIONDO asked and was given tive and dispassionate view of the eco- and our wages. That is what this is permission to revise and extend his re- nomic and social effects of gambling. about. marks.) This kind of information is vital if we I recommend the ‘‘Luck Business’’, Mr. LOBIONDO. Mr. Speaker, I are to make responsible decisions by Robert Goodman, to see some of the proudly represent the Second District about commercial and governmental devastating consequences that gaming of New Jersey, which includes Atlantic gambling. is having in our small communities. City and the casino industry in Atlan- If gambling continues to generate Second, this is about values. Our val- tic City. New Jersey also has a State popularity as a revenue-generating ues in American society are not to say lottery and racing and other types of mechanism, we will need accurate in- to our children, ‘‘Go out and win the legalized betting. formation in order to help State, terri- lottery. We are going to go out to 7– In turn, New Jersey is able to provide torial, local governments, and Indian Eleven and buy enough tickets and go programs for senior citizens, programs tribes make decisions about gambling. gaming and gambling, and that is the Earlier in this debate, the gentleman for the disabled and programs for way to make the American dream.’’ It from American Samoa [Mr. schoolchildren that would not be there is about hard work and sacrifice and if it were not for this source of reve- FALEOMAVAEGA] and the chairman, the commitment. nue. gentleman from Illinois [Mr. HYDE], en- So let us study and see what this pro- tered into a colloquy to clarify the roll Mr. Speaker, this is not an area for liferation of gambling is having on of territories in this legislation. I sup- the Federal Government to get in- American families and American small port the effort of my friend in that re- volved in. It is an area that has been businesses. That is all this bill does. gard. run by the States. It is an area that Mr. FRANK of Massachusetts. Mr. I am especially interested in what has been based on the approval by the Speaker, I yield 2 minutes to the gen- the commission’s findings will reveal people of those States. tleman from California [Mr. MILLER], about the affects of gambling on our Gaming includes a wide variety of ac- the ranking member of the Committee local economies. My home of Guam is tivities in States. It involves racing, on Resources, which should have had considering legalizing casino gambling lottery, sports betting, charitable gam- jurisdiction over this bill. as a way to attract more tourists to ing, and the casino industry. (Mr. MILLER of California asked and our island. I do not think it is nec- I would like to at least suggest that was given permission to revise and ex- essary, but we need information in this study be completed by those in- tend his remarks.) order to make that decision better and volved in the industry at the State and Mr. MILLER of California. Mr. more effective for our local commu- local level, those who know it best, and Speaker, I rise in support of this reso- nity. that its results be shared with States lution, and I want to commend the gen- Support H.R. 497. and local governments, and that if Fed- tleman from Virginia [Mr. WOLF] for Mr. FRANK of Massachusetts. Mr. eral issues are to be examined, that the bringing it to our attention and the Speaker, I yield such time as he may agenda should focus on Indian gaming gentleman from Illinois [Mr. HYDE] and consume to the gentleman from New and gaming on the Internet. the Committee on the Judiciary for re- Mexico [Mr. RICHARDSON]. I can tell you, Mr. Speaker, what this porting it. (Mr. RICHARDSON asked and was study is going to find. It is going to I wish that our committee would given permission to revise and extend find that there were a lot of jobs that have spent more time on it because of his remarks.) were created because of the industry, its significant impact on Indian gam- Mr. RICHARDSON. Mr. Speaker, I good-paying jobs, with good benefits. It ing in this country. rise against the bill because of its neg- is going to find that has been a reduc- But I think with the proliferation of ative impact on native Americans. tion in the welfare roles because people gambling in the United States, we have Mr. Speaker, a National Gambling Commis- have been put to work. It is going to got to ask these questions. We have got sion is in many ways an unnecessary intrusion find a highly regulated industry that is to start to have some answers as to the by the Federal Government into the business extremely well run. It is going to find real impacts of gambling. There is a lot of State and local and tribal governments. It that services provided to the elderly of impact that appears at first, and a will cost millions of dollars to fund the Com- and disabled would not have been there lot of it appears positive, but there are mission and its study, which can surely be put if this industry would not be allowed to obviously some ongoing studies, anec- to better use. flourish, and it is also going to find dotal evidence from communities that H 1684 CONGRESSIONAL RECORD — HOUSE March 5, 1996 some of it that is so positive in the be- cent since 1974Ðfrom $17 to $482 billion in Gambling is a drug, an addiction just like al- ginning maybe turns out not to be the 1994. Moreover, the $40 billion in revenue cohol or cocaine. The bottom line is that the case later. raised in 1994 from all gambling related activi- gambling industry and State legislatures do ties is more than all of the combined revenue b 1215 nothing to stop the promotion of gambling as raised from movie theaters, sporting events, family entertainment. They are willing to watch I must also say that I am concerned theme parks, cruises, and music concerts. small businesses fail, crime spread, and fami- that this resolution starts to get into a The economic impact of gambling on com- lies fall apartÐall to raise revenue, precious number of areas that are beyond those munity businesses can be devastating. Money revenue. See, gambling is a State tourist at- generic questions as to the impact of that would normally be invested into local traction, as are theme parks and ski resorts. gaming on our families and our com- economies is instead being thrown away at munities and our social structure. the nearby casino. Local merchants, retailers, Mississippi generates two-thirds of its gam- Many of the areas where States have and restaurantuers are seeing business dry up bling revenue from out of State, mainly from made decisions, the people have voted because the money that people used to spend Florida and Tennessee. People flood into Mis- to engage in this activity, and we do on their goods and services is being gambled sissippi and spend their money, then they not get back into trying to create some at the card table, the slot machine, the scratch leave and take their problems home with type of Federal regulatory body. off lotto cards. them. But I think the resolution on balance The reality of individual and family owned It is estimated that Gamblers Anonymous businesses going out of business is exacer- is a good one. I would hope that the groups have almost doubled to over 1,000 bated by the corporate structure of casinos. members of the Commission will re- since 1990. Is this what we want to perpetuate main sensitive to the unique status of Casinos provide cheap food and entertainment on site in order to keep gamblers near the ac- in the United States? State-supported addic- the Indian tribes and the laws and the tion? Is it worth destroying peoples lives, fami- treaties governing those tribes and the tion, and to keep spending money. So, in lies, the moral backbone of our Nation, just to laws that govern their ability to con- order for restaurants to remain competitive make some money? I certainly think not. duct gambling as a result of State ac- and attract business, or just to take advantage tivities in which those tribal lands re- of a State's liberal gambling regulations, many We must move forward and scrutinize the side. restaurants generate more money from their impact of gambling on all levels. Support Con- So I hope that this Commission will video poker machines than they do from sell- gressman WOLF's legislation. Our Nation can't be productive, and I hope that it will be ing food. afford to do without it. able to report back to us, so that deci- And, as individual dependency on gambling grows, so too do the loss of homes and jobs. Mr. HYDE. Mr. Speaker, I am pleased sions can be made by us, I think indi- to yield 2 minutes to the gentleman vidually, because I think we are going Families are faced with bankruptcy and unpaid from Ohio [Mr. HOKE]. to find out most of these decisions re- bills. Divorces increase, families break up, and side with the States, as they have prop- chronic gamblers contemplate suicide. Theft Mr. HOKE. Mr. Speaker, I thank the erly in the past. But maybe this na- and crime increase. Crime rates are twice as gentleman for yielding me time, and I tional Commission will have enough high in places with gambling. In 1994, towns appreciate the chairman for bringing with casinos saw a 5.8-percent jump in crime status so that local communities and this bill to the floor, and I appreciate while the national average fell 2 percent. And, States can make informed decisions be- the work of the gentleman from Vir- a 7.7-percent increase was seen at places fore plunging into the further expan- with casinos in operation for less than a year. ginia [Mr. WOLF], as well. sion of gambling before they know the People such as Betty Yakey, a 65-year-old Mr. Speaker, I have a particular in- results and whatever the downside may woman from Louisiana, lose $190,000 to the terest in one section of this that the be. lures of gambling. In doing so, she used up Mr. HYDE. Mr. Speaker, I yield such committee was gracious enough to ac- her grandson's college savings. Other people time as she may consume to the gen- cept as part of this. I am on the com- in Betty Yakey's position sell off possessions tlewoman from New Jersey [Mrs. ROU- mittee and was glad to be able to add and file false theft reports to collect insurance KEMA]. this. to feed their habit. This habit not only destroys (Mrs. ROUKEMA asked and was the life of the gambler, but also the lives of It has to do with the effects of adver- given permission to revise and extend spouses and children, and in Betty Yakey's tising concerning gambling. Because her remarks.) case, grandchildren. Gambling is not just an my concern with respect to gambling Mrs. ROUKEMA. Mr. Speaker, I individual problem, but one that a whole family advertising, as with the advertising of thank the gentleman for yielding me must face together. And, it is an issue that other vices, such as alcohol and to- time. must be recognized and addressed by gam- bacco, is that what happens is some- Mr. Speaker, I rise in strong support bling interests. thing that is essentially negative and of this legislation. I might remark, as However, the irony in all of this is that those bad, for a person gets glamorized and one from New Jersey, which has a responsible for making sure that gambling misleads the public into thinking that strong gambling casino industry, nev- habits like Betty Yakey's continue to be fed there is something very positive and ertheless I believe this is a study that are the same people who are responsible for is long overdue. I rise in strong sup- fulfilling and wonderful and glamorous writing gambling regulations and issuing ca- about partaking in this. port. sino licenses. These are our State legislators, Mr. Speaker, I rise in strong support of this many of whom have been corrupted by the What happens with our legislation is legislation which would set up a commission gambling lobby. that it calls for a review, particularly, to study the impact of gambling on our Nation. State legislators facing sagging economies and an assessment of the effects of ad- I also do this as one from New Jersey a State justify gambling with the argument that, with- vertising concerning gambling, includ- that has a casino industry that is nationally out the revenue generated by gambling, they ing whether the advertising has in- prominent. This study is long overdue and I would be forced to either increase taxes or cut creased participation in gambling ac- commend my good friend from Virginia for his programs. But, they set gambling policy hav- tivity, the effects of various types of hard work on this important issue. In doing so, ing already received huge amounts of money advertising, including the sponsorship he has recognized what many of us have also from gambling interests within the State. In Illi- of sporting events, the relationship be- grown aware ofÐthat the moral, social, eco- nois in 1995, gambling PAC's contributed $1.2 tween advertising and the amount of nomic, and political ramifications of gambling million to State legislators, including almost the prize that is going to be awarded, are far too great to go unaddressed any $100,000 each to the Governor and the House and an examination of State lottery longer. We must carefully evaluate what has Republican and Democratic leaders. In Louisi- advertising practices, including the become an uncontrollable epidemic that has ana, gambling put more money into cam- process by which States award lottery destroyed peoples lives and families. paigns than the next four industries combined. advertising contracts. All we need to do is look at the staggering In 1994, gambling interests gave $3.1 million statistics on gambling. The amount of money to parties and candidates, making them one of I think it is terribly important, be- legally gambled has skyrocketed by 2,800 per- the top five special interest contributors. cause what it strikes me is happening March 5, 1996 CONGRESSIONAL RECORD — HOUSE H 1685 is we are undermining and misleading none of them have that level of in- Where in the Constitution can anyone the public with respect to creating the volvement. If you own any part of any point out to me that this body has false impression that gambling is a le- company involved in casino gaming in oversight over legalized casinos that gitimate, bona fide, way to get rich New Jersey, you, your family, your fi- are regulated by a State? Nowhere in quick. That is really what is behind so nances, your holdings, are inspected. the Constitution. much of the advertising. I hope, Mr. Speaker, in the other Now, if one wants to regulate Indian I would also like to say, Mr. Speaker, body we can make this a commission gaming or regulate Internet gaming, and I am very happy about this, there that really involves the industry and that is interstate commerce, we cer- was an attempt in the telecom bill to our States in what is a State industry. tainly have the constitutional jurisdic- make casino gambling advertising Mr. HYDE. Mr. Speaker, I include for tion to do that. But we do not have the legal on television. That had been the RECORD a letter from the chairman jurisdiction in this body over regular brought in from the other body. When of the Committee on House Oversight casinos. in conference, and I was a conferee on with reference to this legislation. Second, this legislation should re- that committee, I was able, with the COMMITTEE ON HOUSE OVERSIGHT, quire that the study commission make help of the gentleman from Virginia HOUSE OF REPRESENTATIVES, recommendations regarding purely [Mr. WOLF], and a number of other peo- Washington, DC, March 5, 1996. State gaming policy issues, and that ple, to make sure that that specific Hon. HENRY HYDE, those recommendations be directed to section was knocked out. Chairman, Committee on the Judiciary, Wash- the States, not to this body. Because Mr. Speaker, we need this to find out ington, DC. DEAR CHAIRMAN HYDE: On Tuesday, March our biggest fear is that people will take exactly what the impact is of advertis- 5, the House will consider on the suspension this information into this body and ing on gambling. calendar, H.R. 497, to establish a Commission make either taxes, which the gen- Mr. FRANK of Massachusetts. Mr. to study the impact of gambling in the Unit- tleman from New Jersey [Mr. Speaker, I yield 2 minutes to the gen- ed States. TORRICELLI], referred to, or more regu- tleman from New Jersey [Mr. A portion of this legislation directs the lations. We feel that this is a thinly TORRICELLI]. Commission to study the impact of campaign veiled disguise for future regulation of Mr. TORRICELLI. Mr. Speaker, when contributions on public policy related to gambling. the gaming industry. This is purely a the 104th Congress began, it was our Under House Rule 10(h) 12 and 15 the Com- State issue that should stay at the mandate, it was alleged, to enhance the mittee on House Oversight has jurisdiction State and local level. role of State government, to reduce the over matters pertaining to ‘‘corrupt prac- Last, let me conclude by saying that role of Federal regulations, to ease the tices’’ and ‘‘the raising, reporting, and use of to improve this bill we should at least burdens on industry. And now here we campaign contributions for office of Rep- have local and State input. People on are, a year later, creating a new Fed- resentative. . . .’’ the gaming commission should at least eral commission to review an industry The parliamentarian has indicated in con- sultations with the Committee that the con- be local mayors, legislators, and State that has always been the province of sideration of this bill on suspension does not Governors. the State government, an industry constitute any precedent for avoidance of Mr. Speaker, I rise in strong opposi- about which the Federal Government this Committee’s jurisdiction in future mat- tion to this bill. has never been involved and has no ex- ters that relate to campaign finance as a Mr. FRANK of Massachusetts. Mr. pertise. And, to compound the problem, matter of Federal public policy. Speaker, I yield 1 minute to the gen- this new Commission will all be named I would appreciate your entering this let- tleman from Pennsylvania [Mr. ter as part of the record during the floor con- by elements of the Federal Govern- GEKAS]. sideration of H.R. 497. ment. No involvement by the attorneys Thank you very much for your cooperation Mr. HYDE. Mr. Speaker, I yield 1 general, who have enforced the laws for on this matter. minute to the gentleman from Penn- 200 years, no role by the State Gov- Sincerely, sylvania, even though the gentleman is ernors, who have had this responsibil- BILL THOMAS, bitterly hostile to what we are trying ity, and no role by tribal leaders, who Chairman. to do. now have the fastest growing element Mr. FRANK of Massachusetts. Mr. The SPEAKER pro tempore [Mr. of this industry. We have managed to Speaker, I yield 2 minutes to the gen- ROGERS]. The gentleman from Penn- ask a recommendation uniquely from tleman from Nevada [Mr. ENSIGN]. sylvania [Mr. GEKAS] is recognized for 2 the one element of government in the (Mr. ENSIGN asked and was given minutes. entire country with no expertise, no permission to revise and extend his re- Mr. GEKAS. Mr. Speaker, I thank knowledge, and no involvement. marks.) the gentlemen for yielding me time. Mr. Speaker, I see the realities that Mr. ENSIGN. Mr. Speaker, I have Mr. Speaker, the cost of this venture the Commission may carry the day. several contentions with this bill. First into the inquiry on gambling is going Let me at least suggest this: The other of all, I have heard testimony over the to be about $4 million. It occurred to body has a chance to improve it, get last year about that this bill is just a me that this Congress, and I approve of the Governors involved, get the indus- study, and what is wrong with a study? its measures to a large extent, is seek- try involved, get the tribal leaders in- One of the reasons for this study is just ing ways to cut spending, so the $4 mil- volved, to make it a better report. to give States the information so that lion you might say means nothing. We While I may still believe that it is they can make the decision about can gamble that away in 2 minutes. the role of the Federal Government whether they should have gambling le- But this same Congress, which is now that is not appropriate and I oppose galized or not, because there is the as- about to vote $4 million for this gam- the commission, let us at least for the sertion made that the States do not bling commission, has eliminated the record make this clear: The gentleman have the proper information to make Administrative Conference of the Unit- from Virginia [Mr. WOLF] in his state- that decision at this point. ed States, a little, small bureau that ment earlier made clear, this Commis- The sponsor of this bill, the gen- was very useful, which only cost $1.5 sion does not have a mandate for new tleman from Virginia [Mr. WOLF], his million. We zeroed it out to save $1.5 Federal taxes. It is my belief it does own State defeated a State measure million. And now, in a double or noth- not have a role in new Federal regula- that would have legalized gaming in ing mode, we are doubling the expendi- tions. I have heard no Member come to Virginia, even though they were out- ture for the purpose of this commis- this floor talking about new Federal spent, I think it was something like 16 sion. That is a little odd, and it gives taxes on this industry. to 1, by the casino industry to try to me a great discomfort about the prior- Let the record at least be clear on legalize it in that State. ities that my own leadership is trying this: this is the most taxed, most regu- State after State after State is de- to set in cutting the budget. That is lated, most inspected industry in the feating legalized casino gaming. It No. 1. United States today. In New Jersey seems that they do have the informa- Mr. Speaker, I just wanted to make alone we have 1,000 inspectors for 12 ca- tion to make the decision that is prop- one other observation. When the gen- sinos. The petroleum industry, the er for their own State. And that is my tleman from Michigan [Mr. BONIOR] chemical industry, the drug industry, biggest contention with this bill. was at the well, he very properly H 1686 CONGRESSIONAL RECORD — HOUSE March 5, 1996 enumerated a lot of different statistics and proposing recommendations and I have never heard so many Members about what others had learned and changes in what the States do. defending States rights. This is virgin other studies have created about the This confirms my view that there is territory for them, and I welcome them evils of gambling. That is the point. not on the other side any consistent to the ranks of States rights defenders, We all know what the evils of gam- belief in States’ rights. The people on but I almost began to imagine the bling are. We can call the Library of the other side believe that the issue Stars and Bars were being waved over Congress and in 6 minutes get every should be decided at that level of gov- there with some vigor because, God for- single report and analysis ever made on ernment where they will like the out- bid, the Federal Government cross into gambling and have it on this floor for come. a State to examine its gaming indus- final consideration of what evil gam- b 1230 try. bling poses to the American public, and There are many over there who do First of all, there is no proposal to we need no commission at all. We have not think that people should gamble. regulate here. There is no proposal to the information at hand. We know it is The States have, from their stand- tax. The only proposal is to recommend bad when gambling becomes a vice, not point, been lax. So forget about the changes. We do that every day in the just a play thing. States rights stuff. We will stick thousands. We are great change So I am eager, if at all, to defeat this Thomas Jefferson back on the shelf. We recommenders. But that would be resolution and go about the business of will spend millions of dollars to make based on a study made of an industry cutting the budget. these recommendations of what the that is indeed an interstate industry. It Mr. FRANK of Massachusetts. Mr. States are doing. I presume we will is a national phenomenon, and it deals Speaker, I yield myself the balance of probably be then asked to act on these with big, big money. It has an impact my time. on commerce. The SPEAKER pro tempore. The gen- things. By the way, whatever happened to tleman from Massachusetts [Mr. Money that is spent in a casino is not the notion of government not interfer- money that is spent in a local store or FRANK] is recognized for 31⁄2 minutes. ing with individuals? How dare these Mr. FRANK of Massachusetts. Mr. retail outlet, and that is fine. Let peo- adults earn money and go out and gam- Speaker, this has been the month of ple spend the money the way they ble. How dare they offend the morality self-repudiation by the Republican ma- want. Let them gamble up a storm. I of some of our friends on the other side jority. Last week, the Party of Free once heard about a slot machine that who do not think it is right. Enterprise brought forward a bill took wristwatches when you ran out of I read the Washington Post series. Do money. That is all right. Let it happen. which said that while the free enter- my colleagues know what it sounded prise system can handle telecommuni- But let us know about it. Let us study like yesterday? Prohibition of alcohol. it. Let us find out what the impact is cations and computers and auto- Sure, we can find in any human en- mobiles, it is not quite up to peanuts on our society, on our commerce, and deavor people who abuse it. There are on the people engaged in this activity. or sugar. So peanuts and sugar remain people who smoke too much and drink It is a legitimate activity. I would exempt from the free enterprise system too much and gamble too much and never want to declare it illegal. But in this Republican bill. they buy more expensive cars than what is wrong with learning something Now the party that talks about they ought to buy, and there are people about it? I do not think there is any- States’ rights is planning to spend mil- who watch too much C–SPAN and be- thing wrong with it. lions of Federal dollars on a study that come adversely affected. will, among other things, look into the But in a free society, in a free soci- All this bill does is set up a commis- enormous national question of, and I ety, particularly people who purport to sion. We assume and hope and expect quote from page 6, ‘‘an examination of distrust government do not answer that it will be fairly constituted by State lottery advertising practices, in- that by saying, The government will people of intelligence and integrity, cluding the process by which States tell you what to do with your money; and at the end of the 2 years we will award lottery advertising contracts.’’ you are not doing it wisely. That is ob- know something about a major indus- Apparently the States, now we are viously the premise behind this. try dealing with important money in going to test them. We are going to let Then, of course, we have the Indians, this country. I do not see anything them experiment with easier issues who have been running casinos quite wrong with that. like Medicaid, welfare, a few things successfully. And they listen to these Mr. BEREUTER. Mr. Speaker, this Member like that. Once they have shown that kinds of assaults on them and, as I is pleased to support H.R. 497, legislation to they can handle Medicaid and welfare, have said before, I believe that this establish a National Gambling Impact and Pol- then maybe we will let them handle kind of legislation further convinces icy Commission to study gambling in the Unit- the tough issue of lottery advertising native Americans that the only mis- ed States and recommend any appropriate contracts. take in Pat Buchanan’s immigration changes in public policy in light of the Com- Now, how do people who purport to policies is that they come 300 years too mission's findings. The results will provide an be advocates of States’ rights tell us late, because the native Americans objective body of data about the gambling in- we are going to spend millions of Fed- have been running the gambling quite dustry which does not currently exist. eral dollars to investigate the way the successfully and they have been bene- This issue is certainly worthy of examination States issue lottery contracts, and tell fiting from it. And here comes big and H.R. 497 is a reasonable step on which the States how to do it better? Because brother and sister, millions of dollars, to proceed. Over the past 10 years various on page 5 it says this commission shall forget about the States, forget about types of gambling have spread to most every look into gambling and make such the Indians, forget about individuals State. The expanded availability of gambling changes, it says, existing Federal, rights. We know better and we will tell has greatly increased the number of people State, and local policy and practices you what to do. It is wholly inconsist- participating in and the amount of money with respect to legalization and pro- ent. spent on gambling on a regular basis. Such a pose such changes in those policies and Mr. HYDE. Mr. Speaker, I yield my- large increase over such a short period of time practices as the commission shall deem self the balance of my time. certainly warrants a study of the issue. appropriate. The SPEAKER pro tempore (Mr. It should be noted that this legislation in no Here come big brother and sister, not ROGERS). The gentleman from Illinois way targets one type of gambling over an- out of the goodness of the heart, by the [Mr. HYDE] is recognized for 4 minutes. way, under this fiscally responsible (Mr. HYDE asked and was given per- other. Nor, for example, is it intended to con- Congress. These people will be paid at mission to revise and extend his re- centrate on Indian gaming more than chari- an annual rate of $115,000 a year for 2 marks.) table gambling or keno more than video poker. years, depending on how many meet- Mr. HYDE. Mr. Speaker, I hesitate to Mr. Speaker, this Member urges support for ings they have. They can self-pay. quote Shakespeare, and probably H.R. 497. They can generate meetings for them- inartfully, but me thinks ‘‘thou doth Mr. PACKARD. Mr. Speaker, as a cospon- selves until they myth the $115,000. And protest too much’’ seems to hang over sor of H.R. 497, The National Gambling Im- they will be investigating the States this Chamber today. pact and Policy Commission Act, I would like March 5, 1996 CONGRESSIONAL RECORD — HOUSE H 1687 to encourage all of my colleagues, both Dem- Report of the Interagency Arctic Re- By statute, the Commission is grant- ocrat and Republican to support the establish- search Policy Committee (February 1, ed subpoena power to conduct fact- ment of such a commission. 1994 to January 31, 1996). finding hearings on discrimination and With the recent explosion in the number of WILLIAM J. CLINTON. racial tensions. But whose civil rights casinos across the country, concerns have THE WHITE HOUSE, March 5, 1996. are they protecting? It certainly does been raised about the effects of expanded f not appear to be the rights of those gambling Advocates of legalizing gambling Floridians who were exercising their promise economic growth, jobs, and windfall REPORT ON DEFERRAL AND PRO- constitutional rights of free speech and of tax revenues. However, we must also con- POSED RESCISSIONS OF BUDG- free association. sider the negative impacts which include regu- ETARY RESOURCES—MESSAGE Regardless of any individual’s per- latory costs, lost productivity and more impor- FROM THE PRESIDENT OF THE sonal beliefs or political associations, tantly, the social costs. UNITED STATES (H. DOC. NO. 104– no one should be subjected to this type This legislation would create a blue ribbon 182) of intimidation by Federal agencies. It panel charged with the duty of conducting a The SPEAKER pro tempore laid be- is for this reason that I am introducing comprehensive and objective study of gam- fore the House the following message the Civil Rights Commission Amend- bling in the United States. Negative impacts of from the President of the United ments Act of 1996 to prevent further gambling on State and local economies, small States; which was read and, together fishing expeditions at the expense of businesses and families can no longer be ig- with the accompanying papers, without law-abiding citizens. The bill would nored. Crime and social problems related to objection, referred to the Committee allow the Commission to subpoena only gambling could add to already overburdened on Appropriations and ordered to be government officials, or in cases where criminal justice and social welfare systems. printed: a person’s right to vote has been vio- This issue is of particular concern to myself lated. To the Congress of the United States: and my district because of largely unrestricted In accordance with the Congressional f Indian gaming and its impact on the commu- Budget and Impoundment Control Act nity. But this is more than a local issue. It is SPECIAL ORDERS of 1974, I herewith report one revised an issue of National social and economic im- deferral, totaling $91 million, and two The SPEAKER pro tempore. Under portance. proposed rescissions of budgetary re- the Speaker’s announced policy of May Mr. Speaker, the States, local governments sources, totaling $15 million. 12, 1995, and under a previous order of and citizens need unbiased and factual infor- The deferral affects the Department the House, the following Members are mation about gambling. Gambling must be of State U.S. emergency refugee and recognized for 5 minutes each. carefully studied to provide citizens with all the migration assistance fund. The rescis- f information they need when deciding whether sion proposals affect the Department of The SPEAKER pro tempore. Under a to allow legalized gambling in their commu- Agriculture and the General Services previous order of the House, the gen- nities. I strongly urge all of my colleagues to Administration. tleman from Florida [Mr. BILIRAKIS] is support H.R. 497. recognized for 5 minutes. Mr. HYDE. Mr. Speaker, I yield back WILLIAM J. CLINTON. the balance of my time. THE WHITE HOUSE, March 5, 1996. [Mr. BILIRAKIS addressed the The SPEAKER pro tempore. The f House. His remarks will appear here- after in the Extensions of Remarks.] question is on the motion offered by RECESS the gentleman from Illinois [Mr. HYDE] f The SPEAKER pro tempore. Pursu- that the House suspend the rules and The SPEAKER pro tempore. Under a ant to clause 12 of rule I, the Chair de- pass the bill, H.R. 497, as amended. previous order of the House, the gentle- clares the House in recess until ap- The question was taken; and (two- woman from New York [Mrs. MALONEY] proximately 1 p.m. thirds having voted in favor thereof) is recognized for 5 minutes. Accordingly (at 12 o’clock and 36 the rules were suspended and the bill, [Mrs. MALONEY addressed the as amended, was passed. minutes p.m.), the House stood in re- cess until approximately 1 p.m. House. Her remarks will appear here- A motion to reconsider was laid on after in the Extensions of Remarks.] the table. f f f b 1301 PROMOTING GREATER GENERAL LEAVE AFTER RECESS EDUCATIONAL CHOICE Mr. HYDE. Mr. Speaker, I ask unani- The recess having expired, the House The SPEAKER pro tempore. Under a mous consent that all Members may was called to order by the Speaker pro previous order of the House, the gen- have 5 legislative days to revise and ex- tempore. [Mr. ROGERS] at 1 p.m. tleman from California [Mr. RIGGS] is tend their remarks on H.R. 497, the bill recognized for 5 minutes. just passed. f Mr. RIGGS. Mr. Speaker, I rise today The SPEAKER pro tempore. Is there THE CIVIL RIGHTS COMMISSION to focus on a very serious debate that objection to the request of the gen- AMENDMENTS ACT OF 1996 has been going on back here in Wash- tleman from Illinois? (Mr. FOLEY asked and was given per- ington over the last several weeks. In There was no objection. mission to address the House for 1 fact, it is a debate that reminds me, f minute and to revise and extend his re- the longer I serve in Congress, the REPORT OF INTERAGENCY ARCTIC marks.) more convinced I become that Wash- RESEARCH POLICY COMMITTEE— Mr. FOLEY. Mr. Speaker, last year ington just does not get it. MESSAGE FROM THE PRESIDENT the U.S. Commission on Civil Rights Mr. Speaker, I am referring to the OF THE UNITED STATES subpoenaed members of the Florida fact that the District of Columbia ap- proposition 187 committee, a grassroots propriations spending bill is now held The SPEAKER pro tempore laid be- organization interested in curbing ille- up in the other body under the threat fore the House the following message gal immigration. The Commission of a filibuster, and for one simple rea- from the President of the United went so for as to subpoena all of the son. That is because Senate Democrats States; which was read and, together group’s internal documents, including are opposed to the notion of giving low- with the accompanying papers, without reports, memos, and computer-gen- income students, those students who objection, referred to the Committee erated printouts. In the words of one come from low-income families here in on Science: housewife who was paid a visit by a the District of Columbia, educational To the Congress of the United States: U.S. marshal, she felt intimidated and choice. As required by section 108(b) of Pub- harassed by the Commission and felt The House version of the District of lic Law 98–373 (15 U.S.C. 4701(b)), I like she was living in the land of the Columbia appropriations bill contains transmit herewith the Sixth Biennial Gestapo. language that appropriates funds for a