![[Top]](/images/nav-top.gif)
![[Back]](/images/nav-back.gif)
![[Home]](/images/nav-home.gif)
November 1, 2005
UW Outreach Building
Casper, Wyoming
Representative Pat Childers, Chairman
Senator Mike Massie
Senator Michael Von Flatern
Representative Jerry Iekel
Representative Wayne Reese
Lynda Cook, Staff Attorney
Senator Bruce Burns
Please refer to
Appendix 1 to review the Subcommittee Sign-in Sheet
for a list of other individuals who attended the meeting.
Chairman Pat Childers called the meeting to order at 8:05 am. The following sections summarize the Committee proceedings by topic. Please refer to Appendix 2 to review the Committee Meeting Agenda.
Attorney General Pat Crank was connected by telephone.
General Crank reported on the negotiations with the Shoshone tribe for gambling on the reservation. A negotiation committee has been created with Tony Lewis, DFS, Secretary of State, Joe Meyer, Doug Thompson Fremont county Commissioner, and General Crank as members. The committee sent a letter asking when the committee could meet with the tribe. The letter was sent three weeks ago and a date has not been set.
Chairman Childers asked whether a letter was received from the Arapahoe stating that they would help with the social issues. General Crank explained what happened with the Arapahoe case. The mediator accepted a last best offer, Geringer declined and so the Secretary of Interior was sent the last best offer for approval. There is some provision for payment for social costs under the last best offer. However, when something is sent to the Secretary of Interior, the act is silent as to whether the state may negotiate. The administration has asked to be a part of the negotiations, but the requests have been ignored.
Chairman Childers was curious whether the legislature should put a provision in the statutes to require some money to go to social issues and whether that would help with the negotiations. General Crank stated that he would want to see the language but his gut feeling is that it would be challenged by the tribes and struck down as a requirement of payment by a separate sovereign. The tribal provision of social services would be a matter of the compact with the tribes rather than the statutory scheme.
Social issues have not been discussed specifically with the negotiator but they anticipate that they will address it.
Chairman Childers asked for potential amendments from the audience.
Virginia Shoffstall, Chairman of the Pari-mutuel Commission offered two amendments. In section 4 on page 36, the pari-mutuel commission proposed that the gaming commission be able to collect fees similar to the pari-mutuel commission. The fees could be based on a percentage of total amounts wagered. She stated that if any money is taken from the general fund for set up costs it should be repaid quickly. Ms. Shoffstall also suggested that a condition of licensure be that the licensees support a problem gaming program and that such a program be appropriate to the licensee requesting licensure. The gaming commission could set the program specifics.
Peggy Daly requested amendments to grandfather in bingo halls that have been in operation and meet the charitable status. Chairman Childers asked how long they would have been a charitable organization by the time the bill would come into effect. She stated that her group would only have two years as a charitable organization by that time. Ms. Daly's Second suggestion was that 65% paid as winnings could be changed to 60% and then 1% of gross sales could be taken as a fee to support the state gaming commission.
Steve Cranfill addressed the bill. He suggested that if this bill goes through, there will be competition from manufacturers. He would like to see an ability for the charity to negotiate with suppliers and manufacturers for the percentage rather than having a percentage set in statute. A cap of 35% of net proceeds would be reasonable to be paid to manufacturers rather than a saying 60% must be retained by the charity. After explanation by the LSO staff, it was clear that the current language on page 16-lines 12-19 already addressed Mr. Cranfill's concern.
Jack Diana, Brookstone Investments testified on the bill. He thanked the committee for the work and supported the bill. He agreed with the 1% fee suggested by Peggy Daly. He also expressed that bingo parlors have problems with electronic cards being played in conjunction with paper cards. They are concerned about blind or nearly blind being required to have a paper card in front of them. They don't have a problem with the licensee holding the hard cards. They call this e-bingo but it is tied to the number being pulled from the box in front of the room and the number is electronically transmitted to the electronic machine in front of the blind player.
Senator Massie suggested carving out an exception for handicapped players. That gives a targeted exception and Mr. Diana thought that was acceptable. Senator Massie offered to suggest specific language when the committee started working the bill.
Mr. Diana also expressed concern with "sharing the same deck or series of cards". They use several different card decks to avoid duplication in big bingo rooms. Chairman Childers pointed out that the language says that no two cards shall be identical. A deck of bingo cards would go from 1 to 63,000. The way it is written the electronic cards are considered a different deck. They don't have any specific language but they will work with LSO to come up with language. He also suggested that the licensee should be forced to keep track of who the winners are in each game. He thinks the bill should limit the amount of money that can be won to $500 per game. People are chasing jackpots and that increases social problems. Colorado has a limit of $1500 per occasion and that is no more than 3 hours and three times per week. Chairman Childers suggested that the gaming commission could set the dollar amount rather than setting in statute.
Finally, if the distributor is allowed to take up to 40% as the current statute reads, then they will do just fine. Also, if the commission takes 1% then the commission will do just fine also as long as e-bingo was allowed.
LSO staff explained the bill page by page.
Tom Montoya and Mike Moser explained that the process for review at the local and state level in this bill mirrors the process for liquor licenses and it works very well.
The following amendments were considered:
Page 2 lines10 and 11 Delete "for four years". PASSED
Page 2- after line 24 Insert provision for staggered terms as new subsection (c). In appointing the initial members to the commission, the governor shall designate three to serve two-year terms. Thereafter all shall be four-year terms. Use language that is already in the statutes. PASSED
Page 3-line 10 Delete "fall"
Page 3-line 11 Delete "special" insert "other". PASSED
Page 3-line 4 Delete "or an executive secretary or both" and conform throughout. PASSED.
Page 5-lines 14 & 15 Delete entirely. Motion dies for lack of a second. Senator Massie suggested that it is best left for the full committee to decide, also there are good arguments for having the gaming committee at least be reported to. FAILED
Page 6-line 16 After "by" insert "the local". PASSED.
Page 12-line 11 Delete "or involving". FAILED.
Page 25-after line 21 In 6-7-211 insert language used in Colorado that allows the gaming commission to set fees to meet the expenditures of the board. PASSED
Page 14-line 22 After "three (3) years" include a grandfather clause to include charities in operation for at least two years at the time of the passage of the act. FAILED
Page 17-line 14 After "other" insert "non gaming related". PASSED.
Page 21 line 7 and 11 Delete "or operator". PASSED.
Page 22-line 13 Delete "the clerk of". PASSED.
Page 22 line 19 Delete "three" insert "four". PASSED
Page 24-line 15 After "authority" insert "or state gaming commission".
Page 32 line 17 Delete "for the previous three (3) years". PASSED
Page 22-line 12 After "hard card" insert "unless the player has a disability that prevents use of a paper or hard card; delete "and," capitalize "The". PASSED
Page 35-line 10 After "license" insert "or those referenced in W.S. 6-7-203". PASSED
Page 35 after line 18 Insert reference to the report that they make to the governor should also have to go to the commission, but also leave in staff note. PASSED
Page 36-line 10 Insert $650,000 budget and put in reporting requirements. PASSED
Massie put in effective date changes so that the commission could be created in 2006 then the rest of the requirements go into effect 2007. PASSED.
Reese compensation be $150 per day plus per diem on mileage same as state employees. PASSED put in 6-7-201.
The bill will be referred to Travel committee in December unanimous.
Public comment:
Bruce Asay testified in opposition to the bill. It encourages the expansion of gambling in Wyoming. The committee hasn't addressed the initial question of whether we should allow any gambling at all. Mr. Asay supports the concept of a referendum on whether gambling should be allowed. He is also against extending the bureaucracy of government. It is going to be very expensive to administer and he disagrees with any funding coming from the general fund. The act supposedly allows local control but he thinks there will be little local control in reality.
There being no further business, Chairman Childers adjourned the meeting at 12:35 pm.
Respectfully submitted,
Pat Childers, Chairman