MMA Legislative Update
August 2, 2010
LEGISLATURE ENDS FORMAL
SESSIONS
Expanded Gaming Passes; Future in Doubt
Economic Development Measure with Permit
Extension on Governor’s Desk
Wind Siting Bill Stalls at Last Moment
As you know, the Legislature ended formal sessions for 2010 as the clock turned from the latest hour of July 31 to the earliest minute of August 1, with considerable discord with the Governor over the issue of expanded gaming. However, in addition to that bill, the Legislature enacted several key matters, including an economic development and sales tax holiday bill, and measures concerning health care and CORI reform. The House gave final approval to a wind siting bill at midnight, but that measure failed to receive a final enactment vote in the Senate by the close of the session. This email contains a summary of several key measures.
EXPANDED GAMING
The Governor has stated that he will not sign the Legislature’s three-casino, two-slot-parlor gaming package, principally because the plan includes two racetrack-based slot machine licenses. With the Legislature out of session, and falling two votes short of an override in the Senate, this issue will play itself out in the next ten days as the Governor acts on the measure, probably returning the bill to the Legislature with a recommended amendment to either strike both racinos, or cut the number down to one. Without Legislative approval of the amendment, or an override in each branch, the bill will die.
While the House has enough votes to override any veto or amendment, the Senate only supported expanded gaming by a 25-15 vote, two short of the necessary two-thirds. The Legislature has ended formal sessions as of midnight on July 31, and the Senate President has stated firmly that she would not call the Senate back into session. This would take a two-thirds vote of the Senate, and support for the bill falls short of this requirement.
Further complicating the issue is a late-night report which says that the Legislature’s bill only authorizes two racinos, but does not require the issuance of two such licenses by the gaming commission, possibly opening the door for the Governor to sign the bill while instructing the gaming commission, which he will control, to issue only one license, or none at all. The Administration will certainly be reviewing its options in the days ahead.
Proponents of expanded gaming have cited the economic benefits, including up to 15,000 jobs and new revenue to the Commonwealth from license fees and taxes on gambling machines. The bill would set aside for local aid a portion of the one-time licensing fees, all of the tax revenue from slot machines at the racetracks, and 30 percent of the tax revenue from casinos. These new funds would be used to offset most or a portion of the expected drop in Lottery proceeds caused by expanded gaming. The MMA will be analyzing the last-minute insertion of an apparent distribution alteration in overall gaming and Lottery local aid allocations connected to a minimum distribution to each community of an amount equal to 25 percent of Lottery sales in each community. The Division of Local Services is required to analyze this provision and issue a report in advance of any implementation. This is just one factor in a complex series of considerations in estimating t he potential impact of the legislation on local aid. The amount and timing of new gaming licenses and tax revenues, the negative impact on Lottery proceeds, and the distribution structure all must be examined. Of course, this will be moot if the legislation does not become law due to a standoff between the Administration and Legislature.
Other aspects of the bill include the requirement that any licensee sign a compact or agreement that is approved by the host community, and that funds be set aside for addressing and mitigating infrastructure impacts in host and surrounding communities. The bill establishes a community mitigation subcommittee (with MMA representation) to advise the state on the impact of expanded gaming on cities and towns.
WIND SITING
In spite of news reports to the contrary, the Legislature has not yet sent a comprehensive wind siting reform bill to the Governor. On Friday, July 30, the House and Senate each voted to support a compromise wind siting bill that was significantly improved over earlier versions due to the MMA’s lobbying efforts, but still fell short in two areas, including allowing developers to file incomplete applications at the local level and limiting the municipal representation on the Energy Facilities Siting Board to wind-related projects only. A copy of the MMA’s latest letter raising objections to shortcomings in the bill can be accessed on our website (http://www.mma.org).
On Saturday night, July 31, the House and Senate each approved an emergency preamble to allow the bill to become law immediately upon the signature of the Governor, and the House (in its last recorded roll call shortly before midnight) approved final enactment of the bill. However, the bill apparently did not make it to the Senate in time for consideration, and the Senate gavel fell without enacting the measure. While the Senate could still approve final enactment during the informal sessions in the remaining five months of the year, this would require unanimous consent of the Senators present, and it is likely that at least one Senator would object. Thus, the bill will probably languish until next year.
ECONOMIC DEVELOPMENT AND PERMIT EXTENSIONS
The Legislature did approve a comprehensive economic development bill that includes an August 14 and 15 sales tax holiday, and many other provisions. Section 173 of the final bill includes a two-year extension of all local and state permits granted between August 15, 2008 and August 15, 2010. The bill does not extend any comprehensive permits granted under Chapter 40B. The permits and approvals that are extended are those made under Chapter 21, Chapter 21A (except section 16), Chapter 21D, Chapter 30 (sections 61 to 62H only), Chapter 30A, Chapter 40, Chapters 40A to 40C, Chapter 40R, Chapter 41, Chapter 43D, Chapter 81 (section 21 only), Chapter 91, Chapter 131, Chapter 131A, Chapter 143, Chapter 249 (sections 4 and 5 only), and Chapter 258 of the General Laws, as well as chapter 665 of the Acts of 1956, and any local by-law or ordinance.
The original legislation included a three-year extension covering a longer time period, and also covered 40B projects. Thus, while we are disappointed that the permit extension was included, the measure was softened due to MMA and local officials’ advocacy. The Administration actively lobbied in favor of a three-year permit extension, and pushed to keep the measure in the bill. Thus, the Governor is expected to sign the permit extension along with the rest of the legislation. On the positive side, the legislation includes an MMA representative on a new 12-member Economic Development Planning Council that must approve a comprehensive statewide economic development plan offered by the Governor in the year following his or her election, recognizing the key role that cities and towns must play in building the state’s economy and competitiveness.
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