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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE RESOLUTION |
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| INTRODUCED BY ORIE, FARNESE, PIPPY, ALLOWAY, ERICKSON, M. WHITE, FOLMER, PICCOLA, O'PAKE, ARGALL AND BROWNE, APRIL 23, 2009 |
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| REFERRED TO APPROPRIATIONS, APRIL 23, 2009 |
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| A RESOLUTION |
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1 | Directing the Legislative Budget and Finance Committee to |
2 | complete a study and comparative analysis of the operating |
3 | budget of the Pennsylvania Gaming Control Board and report |
4 | its findings, conclusions and recommendations to the Senate. |
5 | WHEREAS, In 2004, the General Assembly passed and enacted |
6 | into law the Pennsylvania Race Horse Development and Gaming Act; |
7 | and |
8 | WHEREAS, The act established the Pennsylvania Gaming Control |
9 | Board as the primary State agency tasked with overseeing the |
10 | development and operation of slot machine gaming in this |
11 | Commonwealth and charged with the responsibility of ensuring |
12 | strict financial monitoring and control of slot machine gaming; |
13 | and |
14 | WHEREAS, The act provides that the costs and expenses |
15 | incurred by the Pennsylvania Gaming Control Board in carrying |
16 | out its statutory responsibilities associated with the |
17 | regulatory oversight of gaming shall be recoverable from each |
18 | licensed entity in the form of assessments that are payable by |
19 | each slot machine operator in addition to the gaming tax rate of |
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1 | approximately 58% to 60%; and |
2 | WHEREAS, The Pennsylvania Gaming Control Board submits an |
3 | annual proposed operating budget, upon which the assessments |
4 | payable by each slot machine operator are based, to the |
5 | legislature for approval; and |
6 | WHEREAS, For fiscal year 2009-2010, the Pennsylvania Gaming |
7 | Control Board is seeking a budget increase of 6.4%; and |
8 | WHEREAS, This Commonwealth is the highest-cost state in the |
9 | nation as measured by regulatory costs as a percentage of gaming |
10 | revenue, regulatory costs per casino employee and regulatory |
11 | costs per gaming employee position, and, if the legislature were |
12 | to approve the Pennsylvania Gaming Control Board's proposed |
13 | budget, this situation would likely be exacerbated even further; |
14 | and |
15 | WHEREAS, Information related to the Pennsylvania Gaming |
16 | Control Board's spending priorities and resource allocation is |
17 | necessary in order for the General Assembly to prudently |
18 | exercise its budgetary oversight responsibilities; therefore be |
19 | it |
20 | RESOLVED, That the Legislative Budget and Finance Committee |
21 | review and compare any relevant analyses of the regulatory costs |
22 | associated with gaming in principal gaming states, including, |
23 | but not limited to, New Jersey and Nevada; and be it further |
24 | RESOLVED, That the Legislative Budget and Finance Committee |
25 | study and analyze the impact of 4 Pa.C.S. § 1202(a)(4), |
26 | exempting the Pennsylvania Gaming Control Board from the system |
27 | of employee classification and compensation under The |
28 | Administrative Code of 1929, upon the board's operating budget; |
29 | and be it further |
30 | RESOLVED, That the Legislative Budget and Finance Committee |
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1 | make recommendations as to the means by which regulatory costs |
2 | can be controlled, including an overall tax assessment cap or as |
3 | a cap expressed as a percentage of gross terminal revenue, and |
4 | cost savings initiatives that could be imposed to control |
5 | escalating operating costs of the Pennsylvania Gaming Control |
6 | Board; and be it further |
7 | RESOLVED, That the Legislative Budget and Finance Committee |
8 | report all of its findings and recommendations to the Senate no |
9 | later than 60 days from the passage of this resolution. |
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