Cape Girardeau Mayor Jay Knudtson joined the debate over a proposal to permanently ban new casino licenses in a letter asking Secretary of State Robin Carnahan to declare the measure unconstitutional.

In the letter dated Wednesday, Knudtson used three arguments -- including one already rejected by a Cole County judge -- to urge Carnahan to deny a ballot slot for the casino-sponsored Schools First initiative. The initiative petition, which is being checked by election authorities to determine whether enough signatures were gathered, would appear on the November ballot.

Knudtson's move to intervene with Carnahan drew praise from David Knight, owner of Ole Hickory Pits and one of two major investors in property along North Main Street where a casino could be built. Knight said he did not speak to Knudtson directly about the letter nor did he ask him to send it. Knight saw his hopes dashed last month when the Missouri Gaming Commission imposed a moratorium on new licenses while the initiative was pending.

"The 'Schools First Elementary and Secondary Funding Initiative' has a specious title intended to mislead voters from its primary intent, which is to advance the interests of casinos," Knudtson wrote to Carnahan. "A more accurate and fair title would be the 'Casinos First Monopoly and $500 Loss Limit Repeal Initiative."

The initiative campaign has been funded with $2.1 million, most of it coming from Ameristar and Pinnacle Entertainment, two companies that operate casinos in the Kansas City and St. Louis areas.

In the letter, Knudtson argues the initiative should be rejected because:

• It violates the Missouri Constitution's requirement that all initiative petitions deal with one subject that is clearly expressed in the title. The seven main elements of the bill are far too many for one initiative, Knudtson wrote. The measure would repeal the loss limits, ban reimposition of loss limits, eliminate the identification requirement to enter a casino, ban new casinos in excess of the number already operating, increase the tax on casinos, create a new fund for education programs and require annual audits of the new fund.

Many Missourians may favor keeping the loss limits, favor increasing the tax but oppose a limit on new casinos, Knudtson wrote. "They will be forced to choose between the two conflicting separate and distinct subjects," he wrote.

• It violates the requirement that the initiative list all the laws it repeals, even if they are re-enacted in altered form. The initiative's ban on new casinos would conflict with another law granting the gaming commission sole authority to determine where and how many casinos to allow in each locality.
• The fiscal note stating the possible revenue effects of the initiative is inaccurate because it does not take into account the potential loss of revenue for cities and counties that were preparing to ask for new casinos. Those losses include 1,000 potential jobs, the city and state's share of $29 million in taxes and fees and the accompanying economic development.

Knudtson could not be reached for comment Thursday.

Carnahan has the power to block the measure from the ballot if she decides any of Knudtson's arguments have merit, said Ryan Hobart, spokesman for Carnahan. Local election authorities have until Wednesday to certify the signatures; Carnahan has until Aug. 3 to announce which petitions have been verified and which will be on the ballot.

The office is already considering the issues, Hobart said. "We will look into the concerns in the letter while we are taking that into consideration."

Cole County Circuit Judge Patricia Joyce has already rejected claims that the language that would appear on the ballot for the Schools First initiative is unfair and misleading. That lawsuit raised, but Joyce did not rule on, the question of whether it deals with more than one subject. Joyce decided that until the measure is certified for the ballot, the one subject rule is not a dispute the court can consider.

In the eyes of Chuck Hatfield, an attorney who represents the Yes for Schools First Committee, Joyce's ruling closes the door on legal challenges. "That ship has sailed," Hatfield said. "That was the only suit that was filed."

Knight, however, said he had been in contact with civic leaders in Sugar Creek, Mo., which was also seeking a casino, and the people who sued Carnahan over the initiative. He said his understanding of state law from those sources was that a new lawsuit could be filed within 10 days of Carnahan allowing the measure on the ballot.

"This doesn't have anything to do with the measure as a petition but as a ballot measure," he said. "We are reviewing our options."

Hatfield said the committee would fight if needed. "We are ready to defend it in court," he said.

rkeller@semissourian.com

335-6611, extension 126

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