Brief Description: Establishing a committee on gambling policy setting.

Sponsors: Senate Committee on Labor, Commerce, Research & Development (originally sponsored by Senators Kohl-Welles, Prentice, Parlette, Kline and Rasmussen).

Brief History:

Commerce & Labor: 2/22/06, 2/23/06 [DP].

HOUSE COMMITTEE ON COMMERCE & LABOR

Majority Report: Do pass. Signed by 8 members: Representatives Conway, Chair; Wood, Vice Chair; Condotta, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Crouse, Hudgins, Kenney and McCoy.

Staff: Chris Cordes (786-7103).

Background:

The Legislative Task Force on Washington State Gambling Policy was created in 1993 to examine the current nature and scope, and the future, of authorized gambling in Washington and the need for defining a clear public policy on gambling. In its report, the Task Force noted that the gross receipts from gambling activity in 1992 totaled approximately $1.3 billion. According to the Washington State Gambling Commission, net receipts have grown from $476 million in 1996 to $1.7 billion in 2005.

The 1993 Gambling Task Force reviewed gambling in the state and around the country, including tribal gaming, reviewed issues related to problem gambling, and made various recommendations, generally finding that the state should "at this time...remain on its present course regarding gambling policy."

Summary of Bill:

The Joint Select Committee on the Future of Gambling Policy Setting is established, with eight voting and eight non-voting members, as follows:

• The eight voting members include the chairs of the Senate Labor, Commerce, Research & Development Committee and the House Commerce & Labor Committee, and three other legislators from each house, appointed by the President of the Senate or the Speaker of the House, as applicable, who are members of one of these two standing committees (one member from the majority caucus and two members from the minority caucus).
• Three non-voting members are appointed jointly by the President of the Senate and the Speaker of the House to represent, respectively, a city that bans enhanced cardrooms, a city that authorizes enhanced cardrooms, and the county prosecuting attorney's office.
• The non-voting members include the Governor or Governor's designee. The Governor also appoints a non-voting representative from each of the following agencies: the Washington State Gambling Commission, the Washington Horse Racing Commission, the Washington State Lottery Commission, and the Department of Social and Health Services (a person with experience in problem gambling treatment programs).

In conducting its work, the Joint Select Committee must, as practicable, encourage participation from throughout Washington by representatives of tribes, the commercial cardroom industry, lottery vendors, the charitable gaming industry, problem gambling treatment providers, and the public.

The Joint Select Committee must examine:

• the current and potential future of the nature and scope of legalized gambling in the state;
• the current and possible future tax structures relating to gambling;
• the nature of problem gambling and efforts to address this social problem;
• the current and potential future of the nature and scope of legalized gambling in neighboring states and Canada, and the potential competitive impact;
• current gambling trends emerging in the U.S. and Canada, and the potential impact on this state's gambling market;
• recent state and federal court decisions and their impact on gambling policy; and
• the manner in which policies on gambling have been established in Washington and other states, with a focus on strengths and weaknesses of each.

The Joint Select Committee may submit a preliminary report to the Legislature no later than the end of the 2007 Legislative Session and must submit a final report to the Legislature and the Governor by January 1, 2008.

The Joint Select Committee disbands on January 1, 2008.

Appropriation: None.

Fiscal Note: Not requested.

Testimony For: Concern has been raised recently about whether the Legislature or the Gambling Commission is setting gambling policy in this state. The Gambling Commission's public opinion survey also supports the need for a gambling policy study. The Legislature has considered numerous bills in the last few years which raise far-reaching issues. There has been a huge expansion in the amounts wagered since the 1993 Task Force. The Legislature needs to find out what is going on in the industry. It needs to grapple with various issues, such as whether the minimum age of gambling should be reduced, and how the State Lottery should target its games. The Gambling Commission has voted to support the bill. Gambling law and regulatory requirements are complicated. It would be worthwhile to look at various policy concerns in more detail. The gambling industry believes that a clear understanding of all segments of the industry is needed.

Testimony Against: None.

Persons Testifying: Senator Kohl-Welles, prime sponsor; Amy Hunter, Washington State Gambling Commission; and Dolores Chiechi, Recreational Gaming Association.

Persons Signed In To Testify But Not Testifying: None.