House votes in favor of Banks' bill aiming for transparency in agreements between casinos, cities
By Erin Reece
House lawmakers voted unanimously Friday in favor of legislation aimed at creating more oversight and transparency of city-casino local development agreements (LDA).
State Senator Jim Banks of Whitley County, author of Senate Enrolled Act 325, said all of Indiana’s riverboat casinos have agreements with their communities or surrounding areas, dedicating a portion of their revenue for local economic development programs. In all but one of the communities with riverboat casinos, the LDA directs the casino revenue to nonprofit organizations, the city or county.
“If signed into law, this legislation will add more oversight of how casino revenues received by local entities are spent to ensure the funds are being used to benefit local communities,” Banks said.
Banks said he crafted the measure to prevent the kind of abuses seen in Northern Indiana, where casino dollars flowed into a private entity and no one could determine how the money was spent.
Banks said the Indiana Gaming Commission (IGC) recently approved a rule prohibiting for-profit entities from receiving money from local development agreements. Under the new rule, the IGC also requires the groups receiving casino revenue to report how much money they collected and how the dollars are used.
Banks said his legislation would put this rule into state law – giving it more weight and permanence
Records of how the LDA organizations used the gaming proceeds they received would also be available for review by Indiana Attorney General Greg Zoeller – who has a regulatory role involving nonprofits.
Banks said SEA 325 now moves back to the Senate for concurrence. This is Banks' first bill to move through the Senate.
House lawmakers voted unanimously Friday in favor of legislation aimed at creating more oversight and transparency of city-casino local development agreements (LDA).
State Senator Jim Banks of Whitley County, author of Senate Enrolled Act 325, said all of Indiana’s riverboat casinos have agreements with their communities or surrounding areas, dedicating a portion of their revenue for local economic development programs. In all but one of the communities with riverboat casinos, the LDA directs the casino revenue to nonprofit organizations, the city or county.
“If signed into law, this legislation will add more oversight of how casino revenues received by local entities are spent to ensure the funds are being used to benefit local communities,” Banks said.
Banks said he crafted the measure to prevent the kind of abuses seen in Northern Indiana, where casino dollars flowed into a private entity and no one could determine how the money was spent.
Banks said the Indiana Gaming Commission (IGC) recently approved a rule prohibiting for-profit entities from receiving money from local development agreements. Under the new rule, the IGC also requires the groups receiving casino revenue to report how much money they collected and how the dollars are used.
Banks said his legislation would put this rule into state law – giving it more weight and permanence
Records of how the LDA organizations used the gaming proceeds they received would also be available for review by Indiana Attorney General Greg Zoeller – who has a regulatory role involving nonprofits.
Banks said SEA 325 now moves back to the Senate for concurrence. This is Banks' first bill to move through the Senate.