NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC Files

Gaming Control Board (GCB)

SUMMARY

Synopsis of Bill

The proposed bill changes the number of full-time members of the GCB from three to five and eliminates ex-officio positions of the Lottery Authority chair and the State Racing Commission chair. The two new full-time members would be representatives of the general public.

Significant Issues

The ex-officio members of the GCB have sometimes regarded their positions as a conflict of interest. The lottery chair is involved with a direct competitor of other forms of gaming and could therefore make decisions in the interest of the lottery but contrary to the GCB's needs. The chair of the State Racing Commission might, similarly, be biased in favor of the horse racing industry in making GCB decisions. The bill would replace these individuals with members of the public who might take a wider view of gaming issues.

FISCAL IMPLICATIONS

The bill would add two new positions which would require salaries of about $75.0 each.

ADMINISTRATIVE IMPLICATIONS

The GCB is still in its infancy. It is not clear whether the workload will be sufficient to fill the time of five full-time commissioners.

OTHER SUBSTANTIVE ISSUES

The GCB was concerned that the public members might lack requisite knowledge to make gaming policy and to carry out the mandates of the Gaming Control Act. The GCB also suggested that this proposal may be premature as the GCB has not had time to fully understand its needs in this area.

POSSIBLE QUESTIONS

DSH/njw