Harris v. Missouri Gaming Commission

869 S.W.2d 58, 1994 WL 17460
CourtSupreme Court of Missouri
DecidedFebruary 22, 1994
Docket76123
StatusPublished
Cited by41 cases

This text of 869 S.W.2d 58 (Harris v. Missouri Gaming Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Missouri Gaming Commission, 869 S.W.2d 58, 1994 WL 17460 (Mo. 1994).

Opinion

BENTON, Judge.

On April 28, 1993, the General Assembly enacted S.B. 10 & 11 “relating to the regulation of certain gaming activities” (the “Act”). Previously at the general election on November 3, 1992, the People approved a referendum law H.B. 149 “relating to certain gaming activities.” 1 The General Assembly, howev *60 er, in its Act repealed almost all of H.B. 149. The Act created a Gaming Commission to regulate riverboat gambling — previously done by the Tourism Commission under H.B. 149. § 313.004. RSMo Supp.1998. 2 The Act also deleted H.B. 149’s non-severability clause, and H.B. 149’s preferences for Missouri products and workers. § 318.850, deleting § 21.4 of H.B. 149; § 313.812.4, deleting § 6.4 of H.B. 149. The Act continued special exemptions from licensing requirements for certain stretches of the Mississippi riverbank and for certain boats (though the Act, for the first time, allowed all riverboats to be permanently docked.) §§ 813.805(15), 313.812.3. The Act essentially maintained H.B. 149’s definition of riverboat gambling games. § 313.800(8).

On April 80, 1993 — one day after the Governor approved the Act — Troy Hams, plaintiff, filed a first amended petition for declaratory judgment that the Act was unconstitutional in violation of the Missouri Constitution, Article III, §§ 39(9), 40(28), and 40(30). Defendants filed motions to dismiss; no evi-dentiary hearing has yet been held. On July 14, 1993, the circuit court ruled that plaintiff Harris was not entitled to the entry of a declaratory judgment in his favor.

This Court reverses and remands for proceedings consistent with this opinion.

I.

Defendants challenge the standing of plaintiff Harris. In his petition, Harris — “a taxpayer and registered voter in this state”— attacks the “expenditure of state taxpayer funds from the general revenue and other public funds and state resources, including the time and effort of state officials who are paid by state funds to carry out their various duties under the Act.”

For the fiscal year ending June 30, 1994, the General Assembly transferred from the state treasury $3 million for “start-up costs” of the Gaming Commission. H.C.S.S.B. 419, 87th General Assembly (1993) (§ 020). Defendants stress that the General Assembly intends that riverboat fees reimburse the treasury. Id. (§ 025) However, such reimbursement need not occur before July 1, 1995. § 313.835 enacted as § 16, S.B. 10 & 11, 87th General Assembly (1993).

In analogous circumstances, a taxpayer had standing to attack Missouri’s entry into the multistate lottery. Tichenor v. Missouri State Lottery Com’n, 742 S.W.2d 170, 172 (Mo. banc 1988). Following Tichenor, this Court held that a taxpayer has standing to challenge an alleged illegal spending of public funds if there is “a direct expenditure of funds generated through taxation....” Eastern Mo. Laborers District Council v. St. Louis County, 781 S.W.2d 43, 47 (Mo. banc 1989) (citing eight of this Court’s opinions spanning 120 years). Plaintiff Harris alleges a direct expenditure of funds generated through taxation. Based on the petition, plaintiff has standing.

II.

Harris first contends that S.B. 10 & 11 violates Article III, § 39(9) of the Missouri Constitution: “The general assembly shall not have the power ... to authorize lotteries or gift enterprises_” The parties agree that this constitutional prohibition does not apply to a proper constitutional amendment. See Payne v. Kirkpatrick, 685 S.W.2d 891, 903 (Mo.App.1984), approved in Barnes v. Bailey, 706 S.W.2d 25, 30 (Mo. bane 1986). Defendants assert that this prohibition also does not apply to S.B. 10 & 11.

S.B. 10 & 11 was enacted by the General Assembly and approved by the Governor. The enacting clause of S.B. 10 & 11 follows the constitutional mandate for the style of the laws of this State: “Be it enacted by the General Assembly of the State of Missouri, as follows.” Mo. Const. Art. III, § 21.

S.B. 10 & 11 explicitly “repealfs]” the referendum law, H.B. 149, enacted by the Gen *61 eral Assembly and approved by the voters. 3 The power to repeal or modify a referendum law is within the power of the legislature. State ex rel. Drain v. Becker, 240 S.W. 229, 282 (Mo. banc 1922). Enactment of a referendum law does not “deprive any member of the General Assembly of the right to introduce any measure,” including S.B. 10 & 11. See Mo. Const. Art. III, § 52(b).

The challenged law, S.B. 10 & 11, is clearly an act of the General Assembly, and thus subject to the limitations in Article III, § 39(9). The referendum law, H.B. 149, is not challenged in this suit and is therefore irrelevant.

Defendants claim that S.B. 10 & 11 is not a “new enactment” but simply a “continuation” of H.B. 149, and thus by § 1.120 RSMo 1986, this Court must review H.B. 149 on this appeal. Even assuming that § 1.120 applies, H.B. 149 and S.B. 10 & 11 are significantly different. S.B. 10 & 11 creates a Gaming Commission and a new riverboat gambling regulatory scheme, introduces a different regulator for charitable bingo, deletes requirements that riverboats use Missouri products and employees, dedicates tax revenue from riverboats to a different fund and use, repeals the limit on the percentage of the boat’s space used for gambling, provides severability for the separate provisions of the law, and changes various other elements previously in H.B. 149. See §§ 313.00), 313.-004(3), 313.800-313.850.

Defendants particularly stress the similarity of the definition of “gambling game” in both S.B. 10 & 11 and H.B. 149, as well as other authorizing provisions common to both laws. Compare § 313.800(8) with § 1(10) of H.B. 1)9. However, even in these provisions, the General Assembly changed the wording from that in H.B. 149. S.B. 10 & 11 is a new enactment of the General Assembly subject to Article III, § 39(9) of the Constitution.

III.

It has been generally acknowledged that there is no fixed technical or legal meaning of the term “lottery” and that the term must be construed in a popular sense. State ex inf. McKittrick v. Globe-Democrat Publishing Co., 341 Mo. 862, 110 S.W.2d 706, 713 (Mo. banc 1937); State v. Mumford, 73 Mo. 647, 650 (Mo.1881); 38 Am.Jur.2d Gambling § 5 (1968). There is also ample authority describing the rationale for singling lotteries out from other forms of gambling. In 1970 this Court, citing the United States Supreme Court, said:

We decline the opportunity to dilute the established laws prohibiting all lotteries in Missouri. Our view finds strong support in

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Bluebook (online)
869 S.W.2d 58, 1994 WL 17460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-missouri-gaming-commission-mo-1994.