House amends bill for LSA funding
The state House of Representatives has amended a Senate bill that would fix local share account contributions from casinos and make the process legal again.
The only question now, according to state Rep. Brandon Neuman, D-North Strabane, is whether the state Senate can approve it in a timely fashion.
On Wednesday, the Senate approved a bill to temporarily reinstate a mandate that was struck down by the state Supreme Court that would require casinos to continue paying millions of dollars to the communities that host them.
The court gave legislators 120 days to find a solution to a funding inequality.
The bill was sent Wednesday night to the House for its approval, but Neuman said lawmakers working under an extension to the legislative session amended the bill on Thursday.
The Senate proposal offered a temporary fix that would have given it until May to find a permanent solution to the problem.
Under the House amendment, the bill would make the local share payment come from an operations fee charged to each casino, as opposed to a percentage assessment of gross slot machine revenue, which the court found unconstitutional because it treated smaller casino operators unfairly.
According to Neuman, the House amendment permanently fixes the LSA solution with the Senate’s recommendation for an operations fee, but drops the Senate proposal to wait until May for additional solutions. It also expands gambling in Pennsylvania to allow regulated internet gaming, as well as daily fantasy sports.
Neuman acknowledged there are caveats to the House’s action.
Noting that the Senate adjourned its legislative session Wednesday night, Neuman said it would have to come back before Nov. 14 to vote on the measure. If that doesn’t happen, legislators would begin all over again when the January legislative session convenes, working under the original deadline set by the court, which, if no solution is found, would end LSA payments from the casinos on Jan. 26.
He added that even if Gov. Tom Wolf were to sign the bill into law, it still could be challenged by Mt. Airy Casino, whose original suit brought about the court’s decision that the funding scheme for local share accounts was unconstitutional.
Despite the threat of a lawsuit, Neuman said the bill proposed by the House would be good news for Washington County if it becomes law, because it recommends that casinos continue to provide $10 million from the proposed operational fee.
The local share has gone to local government budgets, institutions and projects in the 12 counties where casinos exist.
Washington County conducts an annual vetting procedure that lets nonprofits and municipalities apply for local share funds provided by The Meadows Casino. Applicants are required to match LSA funds with other funding for projects that fall under economic development, public interest, community improvements and job training.
Despite his optimism, Neuman expressed another concern about what could happen if the Senate does not act quickly on the amendment offered by the House.
“It could become a political football,” Neuman said, with the bill going back and forth between the two legislative bodies and time running out in the process.
According to Neuman, the House is looking into the possibility of petitioning the court to reconsider its 120-day deadline if it appears the two bodies are close to reaching an accord.