For the third time this year, state Attorney General Leslie Rutledge has balked at a proposed constitutional amendment advanced by the Driving Arkansas Forward committee to authorize the creation of casinos to raise more money for roads.
In a ruling Thursday that cited a handful of ambiguities, the Republican attorney general declined to certify the popular name and ballot title for the committee's latest proposal, which would authorize state government to issue four casino licenses, with one each for Jefferson and Pope counties, Oaklawn Racing and Gaming in Hot Springs and Southland Park Gaming and Racing in West Memphis. The committee's initial proposal would have authorized up to three casinos.
The popular name briefly describes the proposal and a ballot title is a lengthier summary. Both appear on ballots.
"I am unable to substitute language in a popular name or ballot title for your measure due to these ambiguities," Rutledge said in a letter to attorney Alex Gray of the Steel, Wright, Gray & Hutchinson law firm. Gray represents the committee. "Further, additional ambiguities may come to light on review of any revisions of your proposal.
"My office, in the certification of ballot titles and popular names, does not address the merits, philosophy, or ideology of proposed measures [under state law]," Rutledge wrote.
Rutledge's certification of the popular name and the ballot title is required to clear the way for the committee to begin collecting the required 84,859 valid signatures of registered voters by July 6 to qualify the proposal for the Nov. 6 general election ballot.
Lobbyist Don Tilton of Little Rock, whose clients include the Quapaw tribe that's interested in applying for a casino license in Jefferson County, has said he is the temporary chairman of the Driving Arkansas Forward committee. Cal Turner of Little Rock is treasurer, according to the committee's Jan. 5 filing with the Arkansas Ethics Commission.
Nate Steel, counsel for the Arkansas Driving Forward committee, said Thursday in a written statement: "We are evaluating the AG's comments and we will resubmit soon.
"This back and forth with the AG's office is an important part of the process and we all have the same goal of making sure that the ballot title is as clear as possible," he said.
Driving Arkansas Forward's proposal would also create the Office of Casino Gaming in the state Department of Finance and Administration. While existing state law doesn't allow stand-alone casinos, it permits electronic games of skills that now exist at Oaklawn and Southland.
Also, the proposed amendment states, "if and when not prohibited by federal law, casino gaming shall also be defined to include accepting wagers on sporting events."
The proposed amendment would levy a net casino gambling receipts tax ranging from 12 percent to 22.5 percent, depending on the amount of income; and earmark 52.5 percent of the tax revenue to a state highway fund and the rest to other programs and local governments.
Among other things, Rutledge said the proposal suggests that both the Office of Casino Gaming and Arkansas Racing Commission would have some regulatory authority with respect to the licensing of Oaklawn and Southland, but the precise and respective authority of each is unclear.
The respective rule-making authority must be clarified in the ballot title so that voters will have a clear understanding of the licensing process, Rutledge said in her letter to Gray.
Rutledge said one part of the proposal states that sales taxes and other taxation will apply to casino licensees, but another part states that state and local sales taxes cannot apply to net gambling receipts.
"This confusing provision could suggest to voters that the tax authorized under the Arkansas Gross Receipts Act of 1941 is somehow a different tax than sales taxes as they are commonly understood," she wrote in her letter to Gray.
A separate group also has proposed a casino amendment. A committee called Arkansas Wins In 2018 Inc., represented by attorney Randall Bynum, asked Rutledge on Tuesday to certify its proposed ballot title and popular name.
Arkansas Wins In 2018 Inc.'s proposal would authorize the creation of four casinos at specific locations in Benton, Boone, Miller and Pulaski counties; allow for the creation of a five-member commission appointed by the governor to regulate the casinos; levy an annual tax of 20 percent of net receipts; and earmark 70 percent of the revenue to a state highway fund and the rest to other programs and local governments.
The president for Arkansas Wins In 2018 Inc. is retired businessman Mark Diggs of Little Rock, and its secretary/treasurer is businessman Bob Womack of Branson, according to its filing Tuesday with the ethics commission.
In October 2016, the state Supreme Court ruled that the ballot title was insufficient for the proposed amendment promoted by Arkansas Wins in 2016 and Arkansas Winning Initiative ballot committees. That amendment would have authorized casinos in Boone, Miller and Washington counties. The casinos would have been controlled by three limited liability companies owned by two Missouri businessmen, Womack and Jim Thompson of Blue Eye.
A proposed constitutional amendment authorizing casinos in Arkansas was last on the ballot in 2000. More than 309,000 voters supported the proposed Amendment 5, while more than 544,000 voters cast their ballots against it, according to the secretary of state's website. The proposed amendment would have granted Arkansas Casino Corp. sole right to establish casinos in Arkansas, authorizing it to set up one each in Boone, Crittenden, Garland, Miller, Pulaski and Sebastian counties, establish a statewide lottery and legalize charitable bingo.
In 2006, voters approved Amendment 84 authorizing raffles and bingo games run by charities, religious organizations and other nonprofit groups. In 2008, they approved Amendment 87 that authorized the Legislature to create a state lottery to pay for college scholarships.
Metro on 03/30/2018