Treasurer McCord Hails Commonwealth Court Order Opening Gaming Board's Executive Sessions

Court rules Gaming Control Board was wrong to exclude Treasurer, designee from closed-door meetings

HARRISBURG, Pa., Jan. 20, 2011 /PRNewswire-USNewswire/ -- Calling it a "win" for government accountability and transparency, Pennsylvania Treasurer Rob McCord praised a Commonwealth Court decision issued today ruling that the Pennsylvania Gaming Control Board's executive sessions should be open to ex officio members like the Treasurer.

In its order, the Court took the extraordinary step of enjoining the Board from "taking any action preventing or otherwise inhibiting the [Treasurer] or his designee(s) from attending and participating in all sessions of the Board (public and private)…"

The order marks a turning point in the year and a half of wrangling during which the Board repeatedly attempted to block the Treasurer or his designee from attending and participating in closed-door executive session meetings.

"For 18 months, the Gaming Board has failed to recognize the legal and statutory role of the Treasurer as part of their deliberations and decision-making process," said McCord. "The Court's decision today is clear—the Board's actions were unlawful and without justification."

Senior Judge Keith B. Quigley wrote in the order that the court was "persuaded by the clear wording of the Pennsylvania Race Horse Development and Gaming Act…" and that the Board's arguments at a hearing held Wednesday, January 19, 2011, did not convince it otherwise.

"The General Assembly's clear intent was that the Treasurer—the state's constitutionally designated financial officer—have a voice on the Board in order to bring to the table the expertise and oversight of this office," said Treasurer McCord. "Although, I do not have a vote on the Board's decisions, I do have insight that will prove a valuable voice for the public's interests."

As part of today's Commonwealth Court order and in accordance with the Pennsylvania Gaming Act, Treasurer McCord and his designee(s) to the Board must sign a confidentiality agreement and a Code of Ethics Statement and Disclosure Form—each of which the Treasurer has said he would sign.

"It's not often that a state agency is subject to a court injunction, but it speaks to the outrageous nature of the Board's conduct," said Treasurer McCord. "Now that we have a ruling, I hope that the Board will end this litigation and stop wasting money."

Today's court decision was prompted by a lawsuit Treasurer McCord filed in May against the Gaming Control Board in order to gain access to executive sessions. The board countered with preliminary objections saying the Treasurer's presence in private Board deliberations would taint its proceedings.

Last month, Commonwealth Court unanimously rejected those objections and allowed the suit to proceed.

The U.S. Third Circuit Court of Appeals articulated a similar position on January 7, 2011 when it rendered a decision in Keystone Redevelopment Partners LLC v. Pennsylvania Gaming Control Board. In that case, Keystone argued that because the Board's three ex officio members are not barred from political activity, they could influence decisions in a way that would undermine the Board's quasi-judicial role.

The federal appeals court rejected that claim saying the presence of McCord and other ex officio members in executive session meetings does not create the appearance of impropriety given that they do not have a vote in licensing decisions.

To read the Commonwealth Court's order, as well as other legal filings and news related to this case, visit www.patreasury.org.

SOURCE Pennsylvania Treasury Department