March 14, 2005

Major VLT and Casinos Package
Could Be on Fast Track in House

By Mike Hailey
Capitol Inside Editor

As Texas House members launched into a debate Monday on an $11 billion plan to raise state taxes to pay for property tax relief, a major gambling package that was filed on Friday appeared to be on a fast track as a backup source of revenue that could be used to help cut local school taxes if the tax plan fails. Anti-gambling forces are marshalling their troops with a five-alarm intensity in response to the latest proposal, which would open the gates to video lottery games and Las Vegas-style casinos in Texas to help foot the bill for reductions in local school taxes.

Heavy-Hitter Lineup
to Help Sell Gambling
Bill to State House

State Rep. Kino Flores of Mission as enlisted some of the House's most powerful members to help him sell video lottery terminals and casino gambling to their fellow representatives.

Flores, who's filed several VLT and casino bills including one that has a priority designation as House Bill 9, says that State Reps. Terry Keel of Austin, Jim Pitts of Waxahachie and Allan Ritter of Nederland have agreed to be co-sponsors. All three co-sponsors are members of Speaker Tom Craddick's leadership team - and all three are committee chairmen.

Keel and Pitts are Republicans who chair the Criminal Jursprudence and Appropriations committees respectively. Ritter - like Flores - is a Democrat. Ritter is the chairman of the Economic Development Committee while Flores chairs the Licensing and Administrative Procedures Committee.

The bill numbers assigned to the latest gambling measure and a proposed constitutional amendment that accompanies it suggest that the package is a high priority for House Republican leaders as they scramble to find a way to slash local property taxes by as much as $11 billion - or 33 percent. Sponsored by State Rep. Kino Flores, a Mission Democrat who chairs the Licensing and Administrative Procedures Committee, House Bill 9 would set up a new state agency to license and regulate video lottery terminals at race tracks and Indian reservation while paving the way for full-scale casinos that would take several years to build. Its sister proposal - HJR 4 - would give Texas voters the opportunity to give the Legislature permission to do that. A two-thirds vote would be needed in the House and the Senate before the question could go to voters on a statewide ballot November 8.

Bill numbers do not have the same weight as emergency declarations by the governor. But they are telling indicators of what the legislative leadership views as the most important items under consideration during a regular session in odd-numbered years.

HB 1, for example, is the state appropriations bill. House Speaker Tom Craddick reserved the numbers 2 and 3 for the school finance plan and related tax package. HB 4 is a high-tech textbooks measure while HB 5 is designed to raise supplemental state revenues by tying the gasoline tax to the rate of inflation. The House hopes to overhaul the child and adult protective services systems in HB 6 while HB 7 proposes a restructuring of how workers' compensation is handled in the state. HB 8 is the number one priority for tort reform advocates who are pushing for limits on litigation related to exposure to asbestos and silica. HB 10 is a supplemental appropriations measure that deals with spending on Medicaid, CPS and other state programs during the current biennium.

HB 9 - the gambling measure - was the last of the bills with the top 10 numbers to be submitted for review by legislators when it was dropped into the mill on on the final day for filing legislation without special permission that would require suspending House rules.

Groups that oppose gambling sent out all-point bulletins to grassroots supporters as soon as they saw the bill number that Flores was given for the most recent VLT and casino measure that he's filed in the past month. The anti-gambling advocates are planning a rally at the Texas Capitol on Thursday, March 24 to showcase their opposition to the newest plan and a dozen other measures that would have the same general effect of legalizing slot machine gaming at tracks and Indian casinos while Nevada-style casinos are under construction around the state.

In an email alert on Monday, Texas Eagle Forum President Cathie Adams urged supporters to try to enlist the aid of their pastors to voice opposition to the gambling legislation at the rally in Austin next week. Adams, who had a role in the development of the national Republican Party platform at the GOP convention in New York City last year, noted the significance of the bill number on the new Flores proposal and the fast track it appears to be on.

"We cannot let that happen," Adams warned.

The opposition to gambling includes lobbyists for religious organizations such as the Baptist Christian Life Commission and the Texas Catholic Conference.

HB 9 would establish a Texas Gaming and Boxing Commission to oversee VLTs at horse and dog racing tracks and Indian casinos while full-blown casinos like those in Las Vegas, Reno and Atlantic City are being built at 12 "tourist destination locations" around the state. The tracks and Indian tribes that are already in the VLT business will also be able to obtain licenses to expand the operation to full-service casinos. Similar measures have been filed by State Senator Rodney Ellis of Houston and State Rep. Charlie Geren of Fort Worth. State Rep. Ray Allen of Grand Prairie has proposed a VLT bill. Geren and Allen are Republicans. Ellis - like Flores - is a Democrat.


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