PENNSYLVANIA Senate Republicans force changes to new state gambling law

House passage is required before the amendment goes to the governor.
HARRISBURG (AP) -- Senate Republicans, many of whom opposed the state's new gambling law, forced through legislation that would make a range of changes to the three-month-old law, including significantly broadening the attorney general's oversight authority.
The amendment, approved Wednesday, also would wipe out the state gambling commission's power to override local zoning ordinances, except in Philadelphia, and a requirement that slot machines be purchased through a Pennsylvania-based distributor.
The amendment passed 49-1 -- Democratic Sen. Vince Fumo voted against it -- but only after the provisions were attached to the amending legislation on three party line votes of 11-6 in an earlier committee meeting.
Still required
House passage is still required. House Majority Leader Sam Smith, R-Jefferson, said he was willing to consider some issues, including on law enforcement, in his chamber, but was worried that gambling foes would turn the exercise into "a complete monumental debate on gaming again."
A spokeswoman for Gov. Ed Rendell said the governor would withhold judgment on the amendment until it reached his desk.
Democrats, who provided the lion's share of the votes to pass the original gambling legislation in July, have resisted changes to the law.
Democrats said the Republicans' amendment amounted to superficial measures designed to frustrate the growth of gambling in Pennsylvania, since Rendell signed a bill July 5 allowing up to 61,000 slot machines at 14 venues.
Property tax cuts
One-third of an expected $3 billion in gambling revenue is slated to help cut property taxes statewide.
The amendment would require the attorney general to approve the legality of leases, contracts and regulations passed by the Pennsylvania Gaming Control Board and would establish an investigative division within the attorney general's office to address gambling-related criminal activity.
Democrats and Republicans alike, however, were united on a part of the amendment that would change the limit on how much of an ownership stake that lawmakers and public officials were allowed to have in gambling companies.
Lawmakers say a 1 percent provision in the current law was designed to accommodate minor stock ownership through pension or mutual funds, but has caused some constituents to believe that the gambling law was designed to enrich members of the Legislature.
Under the pending legislation, lawmakers and public officials would be forbidden from having any interest in a company that operates or supplies a gambling hall, unless that financial stake was held in a fund they would have no control over, such as a blind trust, tuition account plan, mutual fund, or defined benefit pension fund.
Under those exceptions, there was no limit on the size of the financial stake.