DEBATE BUILDS OVER GAMBLING REGULATION

JEFFERSON CITY - The chairman of the House committee that deals with tourism is at odds with the tourism chairman in the Senate and the governor's office over what group will regulate riverboat gambling in Missouri.

Rep. Herb Fallert, D-Ste. Genevieve, who sponsored the legislation that eventually led to voter approval of riverboat gambling last November, is trying to fight off efforts to shift regulatory and licensing duties from the tourism commission to a gaming commission.

Sen. Danny Staples, D-Eminence, chairman of the Senate committee that deals with tourism, and Gov. Mel Carnahan, support quick passage of legislation to put riverboat gambling under a new commission.

But Fallert argues that when voters approved riverboat gambling in November, it was quite clear that the tourism commission would be the regulatory body.

By having the tourism commission at the helm, Fallert said that would insure the focus would remain on river tourism rather than gambling.

The six-term representative also believes that many of his colleagues voted for the bill because of the tourism emphasis. That was also a factor in the general election, Fallert believes.

"As far as I'm concerned, unless proved otherwise, I'm sticking by my guns for the tourism commission," said Fallert last week. "Before this even gets off the ground, people want to change it. We had this bill up here for at least two years and made it clear it would be run by tourism. Why didn't anyone speak up then if they were so concerned about it?"

But Staples said he was concerned about the role of the tourism commission that was outlined in the original version, but supported it with the idea he would work to change the regulatory body later.

"I have served on the tourism commission and I would hope we would pass a bill that would allow the state to set up a gaming commission for the licensing, regulating, and enforcement of riverboat gambling," said Staples.

"The job of the tourism commission is to meet monthly or quarterly to promote tourism in the state. They have no legal counsel for this."

Staples maintained the people appointed to the board are experts in tourism promotion and that most lack the background to set up the kind of enforcement policies and regulations to insure gambling operations are controlled.

The senator warned that without strong regulations and enforcement of those regulations, riverboat gambling could become tainted by organized crime.

"I just hate to see people there for the sole purpose of promoting tourism, getting involved in regulating riverboat gambling," said Staples.

But Fallert points out that the tourism commission has already done a lot of work getting information from other states on their laws and would hire a director of riverboat gambling with experience in another state to insure strong regulations are in force.

"I just think it's a kick in the pants for the tourism commission," said Fallert. "A lot of the people I talked with about this bill felt comfortable with tourism being involved."

Fallert said regardless of whether tourism or another commission regulates gambling, it is essential that an experienced executive director be hired right away.

"We need to have regulations and enforcement mechanisms in place before licenses can be issued," he observed.

Shortly after his election, Carnahan appointed an ad hoc committee to review riverboat gambling regulations and draft legislation that can win quick approval this session.

Carnahan was emphatic about the need to form a gaming commission and strongly disagreed with Fallert's contention that taking it away from the tourism commission will be going against what was sold to the voters.

"The tourism commission is not designed to be a regulatory body. They are primarily a promotion agency," said Carnahan. "This is almost a schizophrenic thing the way it is now."

Marc Farinella, Carnahan's chief of staff, said the ad hoc committee will "make sure we have all the proper safeguards built in." Farinella said other states have had problems that Missouri needs to avoid.

Carnahan said he has been assured by Senate President James Mathewson that legislation creating a gaming commission will move on a fast track once the ad hoc group completes its work. The bill will be handled by Sen. Harry Wiggins, D-Kansas City.

"It's greased," said Staples of the forthcoming bill.

Fallert said he is not opposed to the concept of a gaming commission, but wants the tourism commission involved up front to insure a tourism emphasis.

Fallert has signed on as co-sponsor of a bill proposed by Rep. Karen McCarthy, D-Kansas City, to form a gaming commission that would take effect after a vote of the people in 1994.

He explained that bingo and riverboat gambling could be put under the gaming commission by legislation, however, horseracing and the lottery are part of the constitution and governed by separate commissions. To put those activities under one commission, Fallert said a vote of the people would be required.

Staples also supports one big gaming commission, but argues the first step should be immediate passing of a commission for riverboat gambling. The other activities could be brought in later, he believes.

Several cities and counties in Missouri have already passed local option elections to allow riverboat gambling. However, no boats can begin operating until licensing guidelines are established and someone is in place to issue licenses.

Cape Girardeau residents will vote on whether to allow riverboat gambling June 8.