Committee approves Banks' bill on gaming revenue transparency Friday
By Bryan Corbin
On Friday, the Senate Public Policy Committee approved Senate Bill 325, a bill supported by Indiana Attorney General Greg Zoeller that requires financial transparency for entities that receive gaming revenue from casinos under local development agreements, or LDAs.
Zoeller has advocated for a new LDA law for several years, in response to prolonged litigation with a for-profit entity, East Chicago Second Century Inc., that had not disclosed how it spent $16 million it received from the riverboat in East Chicago – of which approximately $8 million remains in escrow.
The Public Policy Committee today heard testimony and amended the bill to make the statute consistent with an emergency rule the Indiana Gaming Commission recently adopted.
“The public has the right to know how the casino revenue intended to benefit their community is spent; the records ought not be concealed in a veil of secrecy. My office is committed to seeking transparency in these transactions so that citizens can have confidence that the stream of casino dollars is being used appropriately. We have tried for several sessions to see this bill passed and this year I am optimistic about its chances; and I thank the legislators for the progress made this week,” Zoeller said.
Under the amended bill, organizations that receive economic development payments from casinos under LDAs would be required to report annually to the Gaming Commission the amounts they receive -- and report their transactions for how those funds are spent. Such economic development payments would have to be segregated into separate bank accounts for ease of auditing.
Nonprofit organizations could continue to enter into local development agreements to receive payments from casinos under Senate Bill 325, but for-profit entities – such as Second Century – would be prohibited from receiving such payments.
Although the Gaming Commission would receive the LDA entities’ transaction records, the amended bill would allow the Attorney General’s Office to obtain those records from the Commission to review. The Attorney General by law has a regulatory role involving nonprofits.
The Senate Public Policy Committee today passed as amended Senate Bill 325 by a vote of 7-0 and it advances to the full Indiana Senate for consideration.
Zoeller thanked the bill’s author, Senator Jim Banks of Columbia City, and thanked a longtime supporter of the proposal, Senator Frank Mrvan, D-Hammond. Zoeller also thanked the committee chairman, Sen. Ron Alting, R-Lafayette, for scheduling a hearing on Senate Bill 325.
“This is a simple issue of transparency,” Senator Banks added. “Senator Mrvan and I have been working this year to finally settle this issue that has been introduced for the past several years and we are proud that Senator Alting's committee agreed,” Banks said.
On Friday, the Senate Public Policy Committee approved Senate Bill 325, a bill supported by Indiana Attorney General Greg Zoeller that requires financial transparency for entities that receive gaming revenue from casinos under local development agreements, or LDAs.
Zoeller has advocated for a new LDA law for several years, in response to prolonged litigation with a for-profit entity, East Chicago Second Century Inc., that had not disclosed how it spent $16 million it received from the riverboat in East Chicago – of which approximately $8 million remains in escrow.
The Public Policy Committee today heard testimony and amended the bill to make the statute consistent with an emergency rule the Indiana Gaming Commission recently adopted.
“The public has the right to know how the casino revenue intended to benefit their community is spent; the records ought not be concealed in a veil of secrecy. My office is committed to seeking transparency in these transactions so that citizens can have confidence that the stream of casino dollars is being used appropriately. We have tried for several sessions to see this bill passed and this year I am optimistic about its chances; and I thank the legislators for the progress made this week,” Zoeller said.
Under the amended bill, organizations that receive economic development payments from casinos under LDAs would be required to report annually to the Gaming Commission the amounts they receive -- and report their transactions for how those funds are spent. Such economic development payments would have to be segregated into separate bank accounts for ease of auditing.
Nonprofit organizations could continue to enter into local development agreements to receive payments from casinos under Senate Bill 325, but for-profit entities – such as Second Century – would be prohibited from receiving such payments.
Although the Gaming Commission would receive the LDA entities’ transaction records, the amended bill would allow the Attorney General’s Office to obtain those records from the Commission to review. The Attorney General by law has a regulatory role involving nonprofits.
The Senate Public Policy Committee today passed as amended Senate Bill 325 by a vote of 7-0 and it advances to the full Indiana Senate for consideration.
Zoeller thanked the bill’s author, Senator Jim Banks of Columbia City, and thanked a longtime supporter of the proposal, Senator Frank Mrvan, D-Hammond. Zoeller also thanked the committee chairman, Sen. Ron Alting, R-Lafayette, for scheduling a hearing on Senate Bill 325.
“This is a simple issue of transparency,” Senator Banks added. “Senator Mrvan and I have been working this year to finally settle this issue that has been introduced for the past several years and we are proud that Senator Alting's committee agreed,” Banks said.