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Kansas Liberty: 10 July 2008

Waivers of regulations could be issued by the commission without any oversight or approval process.

Attorney general agrees gaming commission can make its own rules

Even as Kansas edges closer to rolling out its gambling enterprise, the squabbling over casino oversight continues.

The subject was breached again Monday during a meeting of the Joint Committee on Rules and Regulations, when the committee got its first look at the proposed ordinances that would govern the state's casinos.

The regulations had been drawn up by the Kansas Racing and Gaming Commission and reviewed by the attorney general’s office. If they are approved, the Racing and Gaming Commission would have the authority to provide waivers from all rules and regulations applicable to the casino operators who will manage the facilities on the state’s behalf.

The waivers would not require the approval of the Legislature or any other state official.

That idea brought criticism from even those committee members who favor an expansion of gaming in Kansas.

Ed Trimmer, a Winfield Democrat and a supporter of casino gambling, said critics of the proposal had made some "legitimate points ... particularly on the waivers. That is problematic."

Rep. Arlen Siegfried, an Olathe Republican opposed to expanded gaming in Kansas, said he had to do a double take when he first scanned the language.

“I was frankly taken aback,” Siegfried said. “Why have rules and regulations at all if the gaming commission can just grant waivers willy-nilly, without coming back to the Legislature?” he asked. “It’s just totally unacceptable.”

Siegfried said representatives of the gaming commission claimed they needed the authority to grant waivers to maintain flexibility if some aspect of Kansas gaming operations weren’t performing as expected.

Glenn Thompson, former lobbyist for the anti-gambling group Stand Up for Kansas, said the gaming commission’s inclusion of the waiver language in the preliminary rules illustrated the commission’s “naiveté” on the issue of gaming regulation.

“That they would even think about something like that, it’s just scary,” he said.

Most of the staff at the Racing and Gaming Commission was on the road this week, conducting hearings on possible casino venues and could not be reached for comment.

Siegfried said another sticking point for some members of the committee was the use of the word “licensing” in the rules and regulations, a word that did not appear in the bill authorizing casinos.

“The gaming commission says it’s an industry term, and that licensing and certification (which was mentioned in the gaming bill) are synonymous,” Siegfried said.

However, in state law, Siegfried said, "licensing and certification aren’t synonymous. Licensing is the highest level – it’s something you do for doctors and lawyers and real estate agents. Certification is a lower form of licensing, for things like computer technicians.”

Trimmer said was less concerned about the distinction between licensing and certification.

“I think it’s just a semantic difference,” he said.

Trimmer also said the opportunity to review the draft rules had been exploited by opponents of state-owned casinos. "I think there are members of the committee who opposed the gaming bill who would like to see gaming shut down by any method, and they used this as an opportunity to look for any opening,” said Trimmer.

The attorney general’s office drew fire from Siegfried for signing off on the draft of rules and regulations that was submitted Monday for the committee’s review.

“It’s just amazing that the attorney general would be okay with this set of rules and regulations,” he said.

Siegfried said he would be inclined to support the re-hiring of an attorney on a retainer basis to represent the Legislature in matters pertaining to the gaming commission.

“At this point, I think the attorney general is in effect the governor’s attorney, not the state’s,” he said. “He was appointed by her – he owes his job to her until he gets elected in his own right – and I think he’s just working to advance her agenda. Otherwise I’m not sure how he could have looked at these rules and said these look OK.”

The current attorney general, Stephen Six, was appointed by Gov. Kathleen Sebelius after former Attorney General Paul Morrison resigned in a sex-and-influence scandal. A spokesperson for the attorney general’s office did not return a phone call seeking comment.

The committee is preparing letters to the gaming commission that will formally request a removal of the waiver provision, and asking it to reconsider the use of the term licensing in its rules and regulations.

 

Corrected: 12 July 2008 0728