Gaming lobbyists earn their pay

Wednesday, June 6, 2001 | 10:19 a.m.

CARSON CITY -- The muscle of the gaming industry was never more evident than at the closing of the Nevada Legislature Tuesday.

Lobbyist Harvey Whittemore was ubiquitous, huddling in private and on the floor of both houses with legislative leaders and working to resolve many of the issues that needed to be approved before final adjournment.

During the 121-day session those in the gaming business achieved great success.

Sen. Joe Neal, D-Las Vegas, a frequent critic of the industry, said, "Like they do every session, they shoot for 100 percent, and that's what they get."

One of the final bills passed Monday night was energy legislation favorable to large resorts and mines. Assembly Bill 661 allows the major electric users to seek cheaper electricity outside of Nevada Power Co. and Sierra Pacific Power Co.,

According to the original bill, the companies could draw only 80 percent of their power needs from outside the present system. An amendment tacked onto the bill in the closing hours allowed them to get all of their electric needs from outside.

Another late amendment authorizes hotels to include an energy surcharge on room rentals. Many have already levied the extra fee, but Whittemore said the industry wanted "express authority to make sure there was no problem."

The energy bill also included a section that imposed a monthly fee on each customer based on usage. The money is to be used to help low-income families pay their electric bills. But the casinos and mines were successful with an amendment that caps at $100,000 the fee they must pay into this fund.

On the final night of the session the big gaming corporations ran through a bill allowing them to haul liquor between sister hotels in the same area. At present, a hotel must go through a liquor distributor to transfer goods. Whittemore had a conflict of interest on this legislation because he also represents major liquor dealers.

Also approved on the final day was a bill opening the door for major casinos to enter the field of Internet gambling. Nevada would become the first state to allow this venture.

The bill originally died a week earlier, but Whittemore performed a "resurrection waiver" that revived the legislation.

Also on the final day, he, Greg Ferraro and others used another procedure to push the Internet gaming bill to passage. A bill in a Senate-Assembly conference committee focused on statewide cards for casino workers, to which Internet legislation was attached.

When it reached the floor there was no chance to amend it. Neal complained about this procedure, which prevented him from offering an amendment to raise the tax on casinos.

Neal tried earlier in the session to increase the tax on casinos. He sponsored legislation that would require casinos to pay off on a slot machine jackpot, even if there was a malfunction. Both measures failed.

Neal then tried to include a casino tax bill on legislation to allow gambling on trains. But he was barred in that effort.

"I'm going to keep trying," said Neal, who tried unsuccessfully for an initiative petition to raise the tax.

One of the most significant victories of the card and dice business was avoiding a tax increase. It backed the plans to allow higher fees for corporations and for the state to recoup the 4 percent tax now being kept by the auto rental companies. The revenue raised in these two bills will help fund raises for school teachers.

Over the next two years studies will be conducted on the state's tax structure and how much might be needed in additional revenue for government programs. But the spotlight is now shining on all business, not just the gamers.

Another bill that gained approval allows Strip hotels to have closed-door casinos to attract ultra high-rollers who don't want to mix with the crowds on the main floor. Hotel officials say there may be only 100 or fewer of the big spenders in the world, but they can afford to lose large sums of money.

In all, the Nevada Resort Association, which represents many major hotels in Las Vegas, had 10 lobbyists registered at the Legislature.