[Congressional Record Volume 141, Number 6 (Wednesday, January 11, 1995)]
[Extensions of Remarks]
[Pages E86-E87]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


             NATIONAL GAMBLING IMPACT AND POLICY COMMISSION

                                 ______


                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                       Wednesday, January 11, 1995
  Mr. WOLF. Mr. Speaker, today I am introducing legislation 
establishing the National Gambling Impact and Policy Commission. This 
blue ribbon panel will be composed of nine members--three appointed by 
the Speaker of the House of Representatives, three appointed by the 
majority leader of the Senate, and three appointed by the President of 
the United States. One of the appointees should be a State Governor.
  America is on a gambling binge. The question facing this commission 
will be: are we trading long-term economic growth and prosperity for 
short-term gain? Gambling is one of the fastest growing industries in 
the nation and is becoming America's pastime. In 1993, Americans made 
more trips to casinos than they did to major league ballparks. At the 
turn of the century, gambling was prohibited. Today, however, there are 
37 State lotteries, casinos operate in 23 States, and 95 percent of all 
Americans are expected to live within a 3- or 4-hour drive of a casino 
by the year 2000. Only two States, Hawaii and Utah, forbid wagering.
  Reports indicate that cash-strapped State and local governments will 
continue to authorize more gambling operations in the hope that they 
will be an economic bonanza. Governments often fail to consider, 
though, that gambling can bring on economic problems to their 
jurisdictions that far outweigh any benefits. Negative impacts on State 
and local economies, small businesses, and families can no longer be 
ignored. Crime and social problems related to gambling could add to 
already overburdened criminal justice and social welfare systems. This 
is an issue of national economic importance, and I believe the new 
Congress should examine it closely over the coming months.
  The Commission established by this legislation will conduct a 
comprehensive legal and factual study of gambling in the United States. 
I will outline some of the specific matters to be studied and some 
examples of why they should be studied.
  The Commission should review the costs and effectiveness of State and 
Federal gambling regulatory policy, including whether Indian gaming 
should be regulated by States as well as the Federal Government. Indian 
gambling accounts for about 5 percent of all casino gambling and that 
figure is growing at an extraordinary rate. Unlike New Jersey and 
Nevada which has extremely costly, mature, and effective regulatory 
structures, the Federal effort to regulate Indian gaming to prevent the 
infiltration of organized crime is scanty at best. There are less than 
30 staff persons to regulate Indian gaming operations throughout the 
country. The Commission should recommend whether or not Indian gaming 
should be regulated by the States.
  The Commission should examine the economic impact of gambling on 
other businesses. As gambling proliferates, job-creating wealth is 
shifted from savings and investment to gambling which creates no useful 
product. Income spent on gambling is not spent on movies, clothes, 
recreation services, or other goods or services. Gambling cannibalizes 
other businesses such as restaurants. For example, the number of 
restaurants in Atlantic City declined from 243 in 1977, the year after 
casinos were legalized, to 146 in 1987.
  The Commission should make a detailed assessment and review of the 
political contributions and influence of gambling promoters on the 
development of public policy regulating gambling. Proponents of 
gambling raised about $14 million in their losing battle to bring 
casino gambling to Florida. Millions in contributions are given to 
lawmakers yearly by gambling interests. In my own State of Virginia, 
ten casino industry groups spent $317,000 lobbying Virginia's 
legislators to roll the dice and bet on casino or riverboat gambling. 
Gambling interest's role in the formation of public policy is important 
because a recent study notes that most economic impact statements about 
gambling overwhelmingly are written from the gambling proponents 
perspective.
  The Commission should make a detailed assessment of the relationship 
between gambling and crime. In one report, the Florida Department of 
Law Enforcement opposed legalizing casino gambling because they 
indicated ``casinos will result in more Floridians and visitors being 
robbed, raped, assaulted, and otherwise injured.'' Sometimes organized 
crime is associated with gambling because of the huge amounts of cash 
involved, making it an easy target of money launderers. Drug money, 
extortion money, and prostitution money are all laundered through such 
operations.
  Gambling may on occasion breed political corruption. Seventeen South 
Carolina legislators were convicted of taking bribes to legalize horse 
and dog track racing. Six Arizona legislators pleaded guilty in 1990 
for accepting bribes on a bill to legalize casino gambling. Seven 
Kentucky legislators pleaded guilty of bribery for the same. In 1990, a 
former West Virginia Governor pleaded guilty to taking a bribe from 
racing interests. In 1994, a West Virginia lottery director was 
sentenced to Federal prison for rigging a video lottery contract.
  Because of crime associated with casino gambling, regulatory agencies 
in New Jersey spend over $59 million annually to monitor the city's 
casinos. In 1992, the Wall Street Journal reported that since 1976, 
Atlantic City's police budget has tripled to $24 million while the 
local population has decreased 20 percent. During the first 3 years of 
casino gambling, Atlantic City went from 50th in the Nation in per 
capital crime to 1st. Overall, from 1977 to 1990, the crime rate in 
that city rose by an incredible 230 percent. Organized criminal 
activity is so pervasive that the American Insurance Institute 
estimates that 40 percent of all white collar crime is gambling 
related.
  The Commission should also study the impact of pathological, or 
problem gambling on individuals, families, social institutions, 
criminal activity, and the economy. Gambling social costs include 
direct regulatory costs, lost productivity costs, direct crime costs, 
as well as harder-to-price costs such as suicide, and family 
disintegration. Various studies indicate that the mean gambling-related 
debt of people in compulsive gambling therapy ranged from about $53,000 
to $92,000. Compulsive gamblers in New Jersey were accumulating an 
estimated $514 million in yearly debt.
  [[Page E87]] Pathological gamblers engage in forgery, theft, 
embezzlement, drug dealing, and property crimes to pay off gambling 
debts. They are responsible for an estimated $1.3 billion worth of 
insurance-related fraud per year which is borne by the rest of us in 
the form of increased premiums, deductibles, or copayments.
  Teenage gambling is another daunting social problem. In 1991 New 
Jersey casino security ejected 21,838 persons under the age of 21 from 
casinos, and prevented another 196,707 from entering. The New Jersey 
Casino Control Commission regularly reports 25,000 or more teenagers 
being stopped at the door or ejected from the floors of Atlantic City's 
casinos. One can only guess at how many teenagers do get in, gamble, 
and are served drinks. Today, research indicates that as many as 7 
percent of teenagers may be addicted to gambling.
  The Commission should review the demographics of gamblers because 
studies indicate a disproportionate number of gamblers are low-income 
people.
  Mr. Speaker, while I am personally opposed to legalized gambling in 
Virginia, I am not taking a position on whether other States should or 
should not permit gambling. The purpose of this legislation is to bring 
together all the relevant data so that Governors, State legislators, 
and citizens can have the facts they need to make informed decisions. I 
invite any interested Members to join me as cosponsors of this 
important legislation.
                                H.R. --

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Gambling Impact and 
     Policy Commission Act''.

     SEC. 2. ESTABLISHMENT OF COMMISSION.

       There is established a commission to be known as the 
     National Gambling Impact and Policy Commission (in this Act 
     referred to as the ``Commission'').

     SEC. 3. MEMBERSHIP.

       (a) Number and Appointment.--The Commission shall be 
     composed of 9 members appointed from persons specially 
     qualified by training and experience, of which one should be 
     a Governor of a State, to perform the duties of the 
     Commission as follows:
       (1) three appointed by the Speaker of the House of 
     Representatives;
       (2) three appointed by the majority leader of the Senate; 
     and
       (3) three appointed by the President of the United States.
       (b) Designation of the Chairman.--The Speaker of the House 
     of Representatives and majority leader of the Senate shall 
     designate a Chairman and Vice Chairman from among the members 
     of the Commission.
       (c) Period of Appointment; Vacancies.--Members shall be 
     appointed for the life of the Commission. Any vacancy in the 
     Commission shall not affect its powers, but shall be filled 
     in the same manner as the original appointment.
       (d) Initial Meeting.--No later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold its first meeting as directed by 
     the President.
       (e) Meetings.--After the initial meeting, the Commission 
     shall meet at the call of the Chairman.
       (f) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.

     SEC. 4. DUTIES OF THE COMMISSION.

       (a) Study.--
       (1) In general.--It shall be the duty of the Commission to 
     conduct a comprehensive legal and factual study of gambling 
     in the United States and existing Federal, State, and local 
     policy and practices with respect to the legalization or 
     prohibition of gambling activities and to formulate and 
     propose such changes in those policies and practices as the 
     Commission shall deem appropriate.
       (2) Matters studied.--The matters studied by the Commission 
     shall include--
       (A) the economic impact of gambling on the United States, 
     States, political subdivisions of States, and Native American 
     tribes;
       (B) the economic impact of gambling on other businesses;
       (C) an assessment and review of the political contributions 
     and influence of gambling
      businesses and promoters on the development of public policy 
     regulating gambling;
       (D) an assessment of the relationship between gambling and 
     crime;
       (E) an assessment of the impact of pathological, or problem 
     gambling on individuals, families, social institutions, 
     criminal activity and the economy;
       (F) a review of the demographics of gamblers;
       (G) a review of the effectiveness of existing practices in 
     law enforcement, judicial administration, and corrections to 
     combat and deter illegal gambling and illegal activities 
     related to gambling;
       (H) a review of the costs and effectiveness of State and 
     Federal gambling regulatory policy, including whether Indian 
     gaming should be regulated by States instead of the Federal 
     Government; and
       (I) such other relevant issues and topics as considered 
     appropriate by the Chairman of the Commission.
       (b) Report.--No later than three years after the Commission 
     first meets, the Commission shall submit a report to the 
     President and the Congress which shall contain a detailed 
     statement of the findings and conclusions of the Commission, 
     together with its recommendations for such legislation and 
     administrative actions as it considers appropriate.

     SEC. 5. POWERS OF THE COMMISSION.

       (a) Hearings and Subpoenas.--
       (1) The Commission may hold such hearings, sit and act at 
     such times and places, administer such oaths, take such 
     testimony, receive such evidence, and require by subpoena the 
     attendance and testimony of such witnesses and the production 
     of such materials as the Commission considers advisable to 
     carry out the purposes of this Act.
       (2) attendance of Witnesses.--The attendance of witnesses 
     and the production of evidence may be required from any place 
     within the United States.
       (3) Failure to obey a subpoena.--If a person refuses to 
     obey a subpoena issues under paragraph (1), the Commission 
     may apply to a United States district court for an order 
     requiring that person to appear before the Commission to give 
     testimony, produce evidence, or both, relating to the matter 
     under investigation. The application may be made within the 
     judicial district where the hearing is conducted or where 
     that person is found, resides, or transacts business. Any 
     failure to obey the order of the court may be punished by the 
     court as civil contempt.
       (4) Service of subpoenas.--The subpoenas of the Commission 
     shall be served in the manner provided for subpoenas issued 
     by a United States district court under the Federal Rules of 
     Civil Procedure for the United States district courts.
       (5) Service of process.--All process of any court to which 
     application is to be made under paragraph (3) may be served 
     in the judicial district in which the person required to be 
     served resides or may be found.
       (b) Information From Federal Agencies.--The Commission may 
     secure directly from any Federal department or agency such 
     information as the Commission considers necessary to carry 
     out the provisions of this Act. Upon request of the Chairman 
     of the Commission, the head of such department or agency 
     shall furnish such information to the Commission.

     SEC. 6. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Commission 
     who is not an officer or employee of the
      Federal Government shall be compensated at a rate equal to 
     the daily equivalent of the annual rate of basic pay 
     prescribed for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code, for each day 
     (including travel time) during which such member is 
     engaged in the performance of the duties of the 
     Commission. All members of the Commission who are officers 
     or employees of the United States shall serve without 
     compensation in addition to that received for their 
     services as officers or employees of the United States.
       (b) Travel Expenses.--The members of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Commission.
       (c) Staff.--
       (1) In general.--The Chairman of the Commission may, 
     without regard to the civil service laws and regulations, 
     appoint and terminate an executive director and such other 
     additional personnel as may be necessary to enable the 
     Commission to perform its duties. The employment of an 
     executive director shall be subject to confirmation by the 
     Commission.
       (2) Compensation.--The executive director shall be 
     compensated at the rate payable for level V of the Executive 
     Schedule under section 5316 of title 5, United States Code. 
     The Chairman of the Commission may fix the compensation of 
     other personnel without regard to the provisions of chapter 
     51 and subchapter III of chapter 53 of title 5, United States 
     Code, relating to classification of positions and General 
     Schedule pay rates, except that the rate of pay for such 
     personnel may not exceed the rate payable for level V of the 
     Executive Schedule under section 5316 of such title.
       (d) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (e) Procurement of Temporary and Intermittent Services.--
     The Chairman of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.

     SEC. 7. TERMINATION OF THE COMMISSION.

       The Commission shall terminate 30 days after the date on 
     which the Commission submits its report under section 4.


     

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