Kane rejects Pa. lottery contract, citing constitutional grounds
Pennsylvania Attorney General Kathleen Kane rejected the state's contract with a British firm to manage the $3.5 billion Pennsylvania Lottery, saying it "contravenes the constitution."
Kane rejects Pa. lottery contract, citing constitutional grounds
Pennsylvania Attorney General Kathleen Kane rejected the Corbett administration's contract with a British firm to manage the $3.5 billion Pennsylvania Lottery, saying it "contravenes the Pennsylvania constitution."
Kane, speaking at a press conference, said among other things the contract "usurps the power of the Gaming Control Board's to regulate expanded gaming."
"We review approximately 5,000 contracts a year, and while most are approved, we not rubber stamp any one of them," Kane said, as cameras clicked away as she read her statement.
"We reviewed this contract with great care and with a focus on the law," the attorney general said of the lottery privatization agreement. "The proposed contract contravenes the Pennsylvania constitution and is not statutorily authorized."
Kane did not take any questions during her brief press conference.
Gov. Corbett issued a statement late Thursday saying he was "deeply disappointed' in Kane's action.
"I don't agree with the attorney general’s analysis and decision, and we will review our legal options," said Corbett.
Camelot Global Services' bid to take over lottery management from state employees expired Saturday.
The rejection by Kane, a Democrat who took office last month, represents the first parry in what is likely to be a tense relationship with the Republican governor.
Corbett had called the attorney general's role a routine contract review and had pressed to make her decision on the form and legality of the 20- to 30-year contract designed to increase funding for senior services.
Corbett formally announced last month that he would award Camelot the contract in exchange for $34 billion in profits over 20 years. The larger revenue was built on the presumption of expanded gaming, including keno and online gaming. Last week in his budget address Corbett said he would include an additional $50 million for senior programs if the contract, for which Camelot was the sole bidder, was approved.
For its part, Camelot on Thursday said it was disappointed with Kane's decision.
"We guarantee our proposal will produce unprecedented profits for senior programs and we have backed our investment in Pennsylvania with $200 million – transferring all risk from state taxpayers," the company said in a statement. "Camelot has indicated it would headquarter in Pennsylvania, pay all taxes required of any commonwealth business, and keep all lottery jobs in the state. We have also publicly stated we would not oppose union organization by our employees.”
Senate and House Democrats, on the other hand, were elated by the news, calling the contract "ill-conceived and illegal."
House Democrats even raised the ante by announcing legislation to provide an additional $120 million in additional funding for senior programs.
Both Democratic lawmakers and AFSCME, the union that represents 170 lottery employees, are challenging the legality of the deal in court. Republican lawmakers also have questioned the speed and lack of transparency involved with the deal.
Since the founding of the lottery 43 years ago, proceeds have been dedicated to supporting senior programs, including prescriptions drugs and transportation.
Click herefor Philly.com's politics page.
Way to go AG! Standing up for the people!— DataB4- LoL..how exactly is she "standing up for the people" when all she is an an obstructionist preventing Corbett from raising money for the benefit of education?!?
I regret voting for her as its becoming clear her mission isn't to enforce the existing laws, she's more of posturing for political ambition.— Professor1982 - Obstructionist? Bull. She is enforcing existing law and regulation.
- corebutt tries an end run around the legislature and the gaming control board.
- corebutt tries an end run around PA citizenry?
- corebutt tries to award the contract to a foreign company (based in UK; owned by CA teachers pension fund). And does this via non-transparent and confusing rules that result in a US based company backing out because corebutt tried an end run disclosure rules and corebutt's own freakin' promises to be bring transparency
Hoorah for Kane for stopping this. Now let's do it the right way.— nebulus - nebulus, the US based company backed out of the bidding because the contract was very one-sided in favor of the Commonwealth. — jfar86
- Prof- Well, since the lottery is already pulling in nearly $1 billion net revenue a year, giving control to a non-government agency for a few extra $s doesn't really seem worth it.
http://www.palottery.state.pa.us/About-PA-Lottery/Annual-Economic-Reports.aspx— verve - Hey Verve, hate to tell you this, but the ENTIRE AMERICAN ECONOMY AND CURRENCY is under the control of a "non-government agency" called the US Central Bank. 100% of the Central Bank's outstanding shares are owned by international banks and banking cartels.
The Government has ZERO authority to audit or intervene in its practices or efforts (something Ron Paul tried to change).
So basically you are indicting the US's entire economic infrastructure with that statement.— Professor1982 - Even if we can get $1.7 Billion a year? The State taxpayers can throw away 700 million a year for the next 20 years so Kane can pander to the Unions?
Did you read the terms of the deal laid out in the article?— tr88 - Until one can review her legal opinion outlining specific statutory and/or Constitutional provisions that allegedly prohibit the contract, how can you assess her legal abilities or motivation.
Your approval of the allocation of the potential proceeds does not justify an "arguably" illegal contract.— MacAlpine - Everything Kane has done since she's been elected AG has been purely political. I almost voted for her for AG (until I read her platform), but after seeing her act in such a political and self-serving manner, I'm glad that I didn't. — jfar86
- Ahhh Professor, hijacking the front page/post again.
I think you're a bit late in this case.
2014...
PUBLIC Luck
PUBLIC Health
PUBLIC Education
PUBLIC Transportation
PUBLIC Attorney General Kathleen Kane— Cuddles - Cuddles, aka Darnel Tanksley, what will come first - you making a coherent post or you paying your property taxes? — jfar86
- jfar86, aka Keyboard Kommando, what will never come is you taking a PUBLIC stand for what you believe...
Continue to hide in anonymity— Cuddles - Poor Cuddles - Creating a nanny state near YOU to enslave a nation and limit upward mobility, lol.
Let the fools keep drinkin' from the liberal cup and watch the nation devolve into the former Soviet Union, Cuba, Mexico, Venezuela, North Korea etal...
BTW, hows that public education, public health, public transportation all workin' out for ya? It seems to me the US performance in all these areas is terrible and getting worse?!? What gives???— Professor1982 - Which nation that has a better educational system than the United States uses a Private Model? Answer: None — UncleStosh
- In much the same way as a cop would be standing up for you if he stopped some guy from removing your TV set from your house.
Someone needs to keep Corbett honest, since he obviously isn't going to do it for himself.— carl and sons
