Endorsements for casino applications would have to come from local officials holding office at the time of application under a bill filed by a state senator Monday.
House Bill 185 -- by Sen. Breanne Davis, R-Russellville, with co-sponsors Rep. Vivian Flowers, D-Pine Bluff; and Rep. Joe Cloud, R-Russellville -- would mirror recent changes to a draft of proposed casino rules by the Arkansas Racing Commission that would invalidate letters of support from former Pope County and Russellville elected officials for a specific proposed operator. Those letters were written right before the officials left office; no casino application has been made.
The commission drafted rules for the licensing and operation of casinos in the aftermath of voters approving constitutional Amendment 100 in the November general election. That amendment allows four casinos to be placed in specific locations around the state; those in Pope and Jefferson counties would require letters of support from local officials. Casinos at the racetracks in Hot Springs and West Memphis would not.
The commission's Rule 2 [2.13.4(b)] would require that the letters of support come only from current officeholders and only when accompanied by a casino license application.
Cloud said the intent of the bill is "pretty simple."
"Whatever letter or resolution is required must be accompanied by a proper application," he said.
[RELATED: Complete Democrat-Gazette coverage of casinos in Arkansas]
Calls to Davis and Flowers were unanswered as of late Monday.
An emergency clause included in the bill would make the law effective upon approval by Gov. Asa Hutchinson or -- in the event the governor vetoes the bill -- on the date the last house overrides the veto.
Hutchinson said in an email that if the bill reaches his desk, "I will sign it."
"Sen. Davis's legislation sets out to codify the proposed application rules from the Racing Commission, which I support," Hutchinson said.
The bill would "clarify" Amendment 100, which states the proposed casinos in Pope and Jefferson counties must include letters of support from either the county judge or the Quorum Court. If the casino is to be built within city limits in those counties, it also must have the mayor's support.
Voters in Pope County soundly rejected the amendment. They also approved an initiated ordinance that requires local officials to get voter approval before endorsing a casino.
A lawsuit and controversy were sparked when then-county judge of Pope County, Jim Ed Gibson, and then-Russellville Mayor Randy Horton submitted letters in December -- within days of their terms ending -- to the Racing Commission endorsing a proposal from Gulfside Partnership to build a 600-room, $254 million hotel and casino in Russellville.
The lawsuit, filed by James Price Knight of Russellville in an attempt to nullify Gibson's endorsement, was dropped earlier this month after the Racing Commission changed the rules governing letters of support.
Cloud said in a Jan. 23 letter to the Racing Commission that voices of Pope County voters are clear and "any letter of support is not valid before an election."
"I truly believe my constituents are entitled to take part in issues that directly affect our community and this is why I offer my full support on Rule #2," Cloud said in the letter.
[RELATED: Complete Democrat-Gazette coverage of the Arkansas Legislature]
Whether or not a constitutional amendment can legally be changed or clarified by the Legislature is up for grabs, said Alex Gray, an attorney who helped draft Amendment 100 for the Driving Arkansas Forward ballot committee.
"Can she do it?" Gray said, speaking of Davis, who promised last month that the proposed bill would be filed soon after the state Legislature convened on Jan. 14. "I think she can certainly file a bill. Whether or not it's going to have a legal effect is another question. I think the letter of support requirements are very clear in the amendment. The effective date was Nov. 14, 2018. Anything to the contrary, I think is going to have a difficult time surviving a legal challenge."
"This bill is unconstitutional. Amendment 100 empowers the Arkansas General Assembly to enact laws to fulfill, not hinder, the purpose of the Amendment, which is to establish four casinos in the state, including one in Pope County," said Casey Castleberry, Gulfside's attorney, in a written statement.
Amanda Priest, spokesman for Attorney General Leslie Rutledge, said the office cannot comment on the legalities of the bill.
Cloud said that he understands "that anything can be challenged legally."
Pope County's new county judge, Ben Cross, who took office Jan. 1, said he supports the proposed bill.
"It's just giving validity to substantiate the rule change by the Racing Commission," Cross said. "I think it just gives clarity and peace of mind. The endorsements should be with the current government."
When asked if he would ever support a casino in Pope County, Cross said, "I'm just going to see where it goes."
Messages left for current Russellville Mayor Richard Harris were not returned as of late Monday. Harris campaigned on a no-casino stance and has said since that he would not support a casino application in Pope County.
The Racing Commission's proposed rules are out for public vetting through Feb. 18 and anyone offering input can appear in person at a public hearing on Feb. 21 in the commission's office at 1515 W. Seventh St. in Little Rock.
Scott Hardin, spokesman for the state Department of Finance and Administration, which oversees the Racing Commission, said the proposed bill is consistent with the rules as they currently stand and would "amplify" the changes to the draft of casino rules.
"As we approach that meeting, we continue to share all feedback with Commissioners," Hardin said.
On Feb. 21, the Racing Commission can vote to adopt, modify or reject the proposed rules. The document will then be sent to a legislative committee for approval.
A Section on 01/29/2019