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LEGISLATIVE UPDATE 49Th Oklahoma Legislature Second Session – 2004

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LEGISLATIVE UPDATE 49th Oklahoma Legislature Second Session – 2004 OKLAHOMA STATE REGENTS FOR HIGHER EDUCATION From: Carolyn McCoy & Lesa Jolly-Borin Friday, February 27, 2004 Welcome to the OSRHE Legislative Update Highlights this Week: Gaming bill passes through House floor By Amber Esada - Staff Writer (LIN) A bill that would allow electronic gaming at three horse racing tracks passed Thursday in the state House of Representatives. SB 553, by Sen. Cal Hobson, D-Lexington, and Rep. Larry E. Adair, D-Stilwell, creates the State- Tribal Gaming Act. Rep. Kris Steele, R-Shawnee, asked if a tribe must enter the tobacco compact to have a gaming compact. Pope said the state would have to wait and let the U.S. Department of the Interior decide if the state can make such requirements. Steele asked if Class III games would be allowed with the new measure. Pope said the bill was an attempt to address the expansion of gaming. Pope said many different types of games are being played in the state and this bill would answer the questions related to which games are legal or illegal. Steele asked if the bill would expand gaming through Oklahoma. Pope said gambling would only be expanded to horse racing tracks, where pari-mutuel gambling is already allowed. Rep. John A. Wright, R-Broken Arrow, asked if the adjusted gross revenue was the amount left after the casinos paid out to players. Pope said that was correct. Wright asked if 90 percent of the monies spent was returned to players. Pope said it depended on the odds, but for the most part, yes. Ninety percent of the people who gamble are doing it for entertainment, Pope said, not to make money. He said a person might take $40 to the casino, win $100, and put their winnings back into the casino. Pope said, if members voted against the bill, then they wanted to continue unregulated gaming, did not want to enter into a compact with the Native Americans, and did not care about the horse industry. Rep. Tad Jones, R-Claremore, asked if the lottery bill passes, then would the racetracks be allowed to have the same lottery games. Pope said he was not sure, but if the track has a gift shop, then it might offer lottery games. Rep. Forrest Claunch, R-Midwest City, asked if there was a limit in the bill to specify the number of machines and the number of casinos allowed. Pope said there was a limit already in place. Claunch asked if there are other contracts that were approved by the Department of the Interior that provided for severability. Pope said currently Oklahoma is unable to negotiate multi-issue com- pacts, but the state would like to send a resolution to the Department of the Interior to allow such compacts. Rep. Lance Cargill, R-Harrah, said the bill allows the commission to modify standards "sent by the lab" regarding the classification of certain games. Pope said the commission could modify the stan- dards to ensure gaming entities are judged fairly by labs, and no gaming entities are receiving spe- cial treatment. Cargill said there was nothing in the bill that required the tribes to not introduce any Class III games. Game III games would not be allowed, Pope said, and would be in breach of the compact. Cargill said there was no language to preventthe tribes from going to court and claiming that Class III games, such as the lottery and horse racing, are not against public policy and would be allowed to have other Class III games. Pope said the language was tight enough to make sure this action would not be allowed. Rep. Wayne Pettigrew, R-Edmond, said there were 276 days of simulcasting, and the bill would allow tracks to be open 365 days. Pope said he agreed with Pettigrew's comments. Pettigrew asked if Pope knew that by legalizing one Class III game, then it would not necessarily mean all Class III gaming would be legalized. Pope said he was not sure, but would take Pettigrew's word. Debate was held before adopting the conference committee report. Rep. Glen Bud Smithson, D- Sallisaw, spoke in support of the report and said most of legislators had made their decisions al- ready. He said his county would go under if the bill was not passed. "We should be about making more jobs," Smithson said. He said the legislators should represent the majority of their constituents when they cast their final vote. Rep. Ron R. Kirby, D-Lawton, supported the report and said the Legislature should focus on at- tracting more jobs for Oklahoma. He said it should listen to taxpayers who visit the Capitol to ask for help. "Every one of us campaigned on the idea of we're here to help the taxpayers," Kirby said. "Let's help the taxpayers of Oklahoma help themselves." Wright spoke against the report and said the bill was not talking about Class II games, but the addi- tion of new games. He said the law of the land is Class II gaming, and the bill included Class III gaming. "Every time you hear an ad, you'll be reminded of your vote today," Wright said. 2 He said 1 percent of the amount gambled will benefit education, and a lot of money would have to be spent to earn the projected $70 million for common education. He said the bill might cost the state more money, because the funds being spent in gaming could go toward taxable goods. He also said the state would be subject to many social costs as well. "What type of legacy do you want to leave when you leave this place?" Wright asked. Mass spoke in support of the measure, stating that he respected Claunch and called him "a very moral man. " Mass said Claunch's opposition to the bill was due to his moral values. Mass said no one in the state knows how much money is going through the casinos and into an out-of-state entity and the bill would answer such questions. "This will allow Oklahoma to know what that amount is," he said. Mass said he did not care about the difference between Class II and Class III games, because any- one can write a check and gamble as much as they would like at the horse track. He said that was high stakes gambling. Claunch spoke in opposition and said the members should not vote based on a poll if it goes against their convictions. He said the bill was not about children but government greed. He said there was no doubt the bill was referring to Class III gaming. "You are legalizing in this language illegal games," he said. Claunch said it will take billions of dollars spent in gaming to reach the projected $71 million, and he would be surprised if the state ever reached the amount. He said the measure would also invite video poker into Oklahoma. "Video poker is considered to be the crack cocaine of video gambling," Claunch said. Claunch said the House was not voting to increase regulation with the bill. He said it would merely expand the gaming industry. He said Oklahoma would then get to bear the loss of families. Adair spoke for his measure. He said this issue was critical and many people in the state have in interest in the issue. Adair said the industry needs regulation and the state needs the money for education. He said it is seldom that horsemen and tribal leaders can agree among themselves or with the state of Oklahoma. Adair said the state has educational and health care concerns and needs to have each of those con- cerns addressed. He also said there is a need for more jobs in Oklahoma, and the bill would save many jobs and bring new jobs into the state. "We ought to be protecting the jobs in Oklahoma," Adair said. He said the horse industry has about 50,000 jobs that are in danger of being lost. He said the gam- ing measure would be the most important issue the House will face this decade. Rep. Todd Hiett, R-Kellyville, said this bill has the greatest opportunity of ruining Oklahoma. He said he knows a gambling addict in his district and he fully understands the devastation associated with gambling. 3 "No one has raised the point that this is a moral issue," he said. Hiett said there would be more divorces, more bankruptcies and more children without the proper care in Oklahoma. He said there would need to be $14 billion lost by players to meet the current budget numbers for education. "This is a bad deal anyway you look at it," Hiett said. He also said there were at least 18 tribes that were opposed to the bill, and the measure was a bad deal for the tribes. Hiett said the measure is a classic example of logrolling -- passing one unpopu- lar issue with another, more popular issue. Pettigrew spoke in favor of the bill. He said he did not like casino gambling and the bill outlaws all of the same items Oklahomans chose to outlaw a few years ago. "If you don't like gambling, then you need to wake up, Oklahoma," Pettigrew said, "because Okla- homa has gambling." He said the bill would allow the lease cost for games to decrease for the tribes, which means less money would be paid to out-of-state entities. He said the representatives needed to support the tribes and start working more with them.
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