Beshear adds slots at tracks to special session

By RONNIE ELLIS
CNHI News Service

FRANKFORT June 05, 2009 01:28 pm

It’s been debated for more than a decade. Now Gov. Steve Beshear thinks it’s finally time to put expanded gambling before lawmakers – if not before the general public.
On Thursday, Beshear added video lottery terminals — electronic slots — at horse tracks to the agenda of the special session he’s called for June 15. And Senate President David Williams, R-Burkesville, the highest profile opponent of expanded gambling, countered with a non-gambling funded proposal to increase purses at the tracks.
Saying Kentucky is in danger of becoming the “former horse capitol of the world,” Beshear called on lawmakers to pass a bill he is crafting to authorize VLTs at the tracks, a bill that would not include a constitutional amendment.
“The legislature, in our judgment, has the authority to enact this legislation without a constitutional amendment,” Beshear said. “Now we must determine if we have the will to do so.”
Two years ago, Beshear campaigned on allowing the public to vote on expanded gambling, but he said Thursday that involved “full blown casinos” and this bill would only allow another form of gambling at sites where it already exists.
Beshear conceded he doesn’t know if there are sufficient votes or political will to pass the measure.
“We could spend the next six months talking to legislators and trying to build support and we’d likely be right where we are today,” he said. “It’s time to vote on it – up or down.”
Asked if his bill passed the House, but lost a floor vote in the Senate, would that end the debate, Beshear hedged.
“I think it depends on a lot of things, how close it is and issues like that,” Beshear said. “It’s really impossible to make judgment like that until you really see something.”
Beshear wouldn’t provide specifics of the bill he is drafting or how it differs from one House Speaker Greg Stumbo, D-Prestonsburg, introduced in the 2009 regular session. But he said it takes “the same approach” as Stumbo’s bill, which would restrict the VLTs to the tracks and devote money to raising purses and breeders’ incentives to compete with states such as Indiana, West Virginia and Pennsylvania, which supplement purses with gambling revenue.
“We’re still working out the details and as soon as we finalize the bill, we’ll put it out for public view,” Beshear said.
Industry officials contend those higher purses and incentives are drawing horses and owners away from Kentucky and threatening the survival of smaller tracks like Ellis Raceway in Henderson and Turfway in northern Kentucky.
Williams responded with his own plan and again said he does not believe there are enough votes to pass the measure in the House where it must originate and where some members may be reluctant to take a controversial vote without assurances it has at least a chance of passing the Senate.
Stumbo’s bill would have produced about $60 million in supplemental purses. Williams said the state can generate $69 million for the same purpose – without gambling – through a surcharge on lottery ticket sales, devoting sales taxes on horse supplies and products, and taxing out of state betting on Kentucky races. Williams’ proposal would match Stumbo’s with $13 million in breeders’ incentives.
“The question is how can we help racing,” Williams said. “The answer is this proposal.”
Williams’ proposal can’t be taken up in a special session unless Beshear puts it on the call or words the call broadly enough to allow the bill to be addressed. Williams, however, said both proposals deserve a hearing.
“If the legislature is not given an opportunity to hear both of these (proposals), then I’m not sure anything will go forward,” Williams said.
He said Beshear’s proposal would be handled through the normal legislative process.
“If it gets out of committee, it’ll get a vote on the floor and if gets 20 votes, it’ll pass,” Williams said.
Beshear wouldn’t speculate on whether adding to the original agenda to address a budget shortfall might lengthen the session beyond five days – the minimum time it takes to pass a bill. Beshear is considering adding other measures to fund mega-projects and an economic incentives bill to the call.
Williams said he’s agreed to pay for five days of the special session from the legislature’s budget but anything more than five days, he said, would have to come from the general fund. Special sessions cost about $60,000 a day.
Stumbo issued a statement through his press spokesman.
“I look forward to working with Governor Beshear on this very important legislation that will save our horse industry,” it said. “The evidence is indisputable that the industry – and the $4 billion it provides the state – is in trouble. To me, it is also indisputable that VLTs are the only viable way we can help our tracks compete with tracks in most other racing states.”
Ronnie Ellis writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com.

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