Category Archives: Public Policy Radar

When Is Enough Not Enough?

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When it’s only 3% more than the minimum required number of valid signatures for a ballot initiative. The duplicitously named Citizens For Community Standards (CCS) is making sure everybody knows that they have exceeded their goal of 241,366 signatures on a referendum petition designed to bring the recently passed Community Defense Act (CDA) to the ballot for a yes or no vote in the November election. Media outlets are dutifully (and some joyfully) reporting that the Dancers For Democracy, a front group for the strip club and sex equipment and book shop owners, have achieved their goal and even exceeded it.

Left out of many of the major media stories, however, is the fact that 3% over the total necessary for the initiative will yield nothing close to the required number of valid signatures, unless a miracle of Biblical proportions occurs in the 88 county boards of election in Ohio. So what is a valid signature anyway? A valid signature is the legal signature of an Ohio citizen of majority age (18) who is registered to vote in Ohio or will be registered by the time the petitions are being validated. Very importantly, and virtually ignored by the media outlets is that in order for the signatures to be valid, the signers must have something approaching a true understanding of what they’re signing.

As we have blogged in the past there appears to be rampant fraud in gathering signatures for the petitions. Two of the previously blogged stories from Ohio Public Radio’s Bill Cohen contained recordings of the actual fraudulent pitches being made. In a follow up report on August 3, 2007 Cohen again reports that the fraudulent pitches are still being made and that unsuspecting Ohioans are being conned into signing petitions that will stop the implementation of a law that the signers actually want to take effect. This audio report is also accompanied by recordings of signature gatherers engaging in fraud. In one case the petitioner has told a signer that he is signing a petition to “…help kids in schools…” In another follow up report on August 9, 2007, Bill Cohen reports that CCS is making efforts to “stop the fraud” and have fired 10 petitioners and claim to have thrown out their petitions (with 4 fired in the Toledo area earlier with no promises of thrown out petitions). But, when aggregating the Columbus Dispatch and Bill Cohen’s reports, at least four separate examples of fraud perpetrated by different petition gatherers in central Ohio alone are identified, this effort appears to be a token release of the offenders who got caught. CCS would have you believe that all responsibility for what is being signed lies with the signer. And that’s true as far as it goes. But they forget to mention that the petition carriers have a responsibility to provide an accurate description of what is being signed, not a purposeful con job. Additionally, potential signers have the right to request a visual inspection of the petition and a right to read the full text of the proposal before signing.

This may seem like nit-picking to the casual observer, but it is becoming apparent that CCS chose its name to deliberately confuse the electorate into believing it is the same group (Citizens For Community Values or CCV) that helped push through the CDA into law in the first place. Why would this be the case?

You see, Ohio is a pivotal state for the adult business industry. Ohio has the dubious distinction of ranking number 5 in the states with the largest number of strip clubs. On top of this fact is the ugly reality that Ohio is a major hub for human trafficking activities, thanks to its proximity to legal and illegal ports of entry (Buffalo, Cleveland, Lake Erie, Detroit) and easy access to travel routes to end destinations (I-80-90, I-75, I-71, etc). The adult business industry, specifically the businesses regulated by the CDA- strip clubs, massage parlors, pornography, etc. are all recognized as entry portals into human trafficking.

What happens here in Ohio often leads the rest of the country. The CDA regulations, once they take effect, could act as a model for other states. Therefore, a little deception to delay or repeal the implementation of the law is no big deal to the sexually oriented business industry. The longer the adult business moguls can hold off the implementation of this law the better for their profits, and conversely, the worse for the victims of human trafficking. A review of the first PAC filing of this industry group reveals that nearly half of the $125,000 raised so far came from pornography production and distribution companies in California. Hmmmm, what was that about “community standards” that the porn and stripper groups are trying to hide behind?

And that’s the missing element in the debate over CDA. The sex trade isn’t just a libertarian lark where women do “what they please” with their bodies and no one gets hurt. When Ohio State Senator Steve Stivers (R) pulled a “John Kerry” and voted for the CDA before he signed a petition to stop its implementation (yes, he did sign one and he knew what it was for) he exhibited a deep lack of understanding or a callousness to the human trafficking issues lurking underneath the sleek libertarian exterior of “freedom of expression” arguments put forward by the sex trade. In either case he has proven himself unworthy to represent his district on this issue, much less to become the leader of the “upper chamber” of the Ohio legislature, the Ohio Senate.

The same can be said of State Senator Teresa Fedor (D) whom we have blogged about earlier on this issue. Her blatant hypocrisy is a stunning self-expose, or would be if major media would take the time and effort to connect the dots. Fedor ignored the true realities of the nature of the sex industry and voted against the CDA, then actually appeared with the “Dancers For Democracy” (a lobbying group of strippers) and spoke at their press conference as they were trying to kill the bill as it was being deliberated on in the Ohio House.

Later, Fedor fulminated with mock “outrage” and “embarassment” at Lucas County Democratic Party officials over that party’s golf outing fundraiser, where strippers from a local establishment “refreshed” party regulars at beverage stops on the course. Guess Fedor is OK with lap dances, but not with foursome flashing. Now Fedor is reportedly preparing legislation to address the human trafficking issue. Hmmm, wonder if the Dancers for Democracy will be invited to that press conference?

The bottom line is that the “Dancers For Democracy” (in reality, Ecdysiasts For Anarchy is a better fit) have about 20 days to get an additional 140,000 or so (and realistically probably more like 200,000) signatures, in order to overcome the fake names, fraud challenges, invalid signatures, forgeries, etc. that plague petition drives, especially this one. The noise the strippers are making now is to soften the public toward the inevitable legal clash over ballot access in the fall and potential federal lawsuits to kill the law should they fail in tricking voters into voting against their own best interests. The federal lawsuit is probably inevitable, because in truth, this referendum is looking at a likely 65-35% drubbing if it reaches the ballot, according to recent polls on the issue.

The strippers will try to spin the campaign as being the “only hope for the poor helpless moms who have to strip to survive.” Thus, they will face-slap the thousands of women who work at hard, honest labor to finish school or support their children after being abandoned by husbands driven by unrealistic sexual expectations formed in the culture created in large part by the sex-traffickers. This strategy will backfire, as it did when the CDA was being debated in the Ohio Legislature- where our laws are made. Enough is enough.

No, enough really is enough.

Human Trafficking – Closer than you think!

Policy RadarCCV partners with Statewide Coalition to battle Human Trafficking

What is it?

The fight against human trafficking is not just something that happens over there, wherever “there” is. It is found everywhere we look.

In the home…

Domestic servitude

On the streets…

Prostitution, truck stop solicitation, panhandling

Behind the door…

Massage parlors, Adult (strip) clubs, brothels, pornography

Among respectable businesses…

Sweatshops, construction, tourist industry, agriculture

The U.S. State Department has estimated that between 14,500 – 17,500 people are trafficked into the U.S. annually . Half of this number are children. In the Midwest prostitution, saunas, health clubs, strip clubs, escort services, and brothels to migrant workers are the predominant activities.

Ohio has become a significant hub of activity for human trafficking. Why? Geography and demographics. Lake Erie allows trafficking to move from Canada while the various interstate corridors allow movement of victims to cities throughout the country. The large number of colleges and military bases also contribute to this increase. Cleveland and Columbus have been identified as major cities popular among johns seeking Asian massage parlors acting as fronts for brothels. Toledo has been identified by the FBI as one of the top recruiting centers in the country for underage prostitution.

Linda Smith, founder of Shared Hope International, writes “Young girls are being sold at truck stops, strip joints, massage parlors, and often out of homes”. Kathleen Davis, who serves as the Ohio Director for the Polaris Project authored a report titled Human Trafficking and Modern Day Slavery in Ohio. In describing what people are trafficked for, she lists “commercial sexual exploitation, exotic dancing, stripping, and pornography”.

Human trafficking is many times confused with human smuggling. Under U.S. Code 1227, smuggling is defined as “knowingly [having] encouraged, induced, assisted, abetted or aided any other alien to enter or try to enter the United States.”

The Victims of Trafficking and Violence Protection Act of 2000 defines human trafficking. The Polaris Project has put together a simple matrix to understand the broad scope of this definition. These elements (AMP) include:

The Action to…

recruit, harbor, transport, provide, obtain, subject

By Means of …

force, fraud, coercion, physical restraint, debt bondage, withholding documents, serious harm

For the Purpose of…

commercial sex act / labor or services – resulting in slavery, peonage, or involuntary servitude

Several myths are destroyed in this defining language:

  • Many trafficked persons in the U.S. are legal citizens
  • Trafficking does NOT require transportation across any state or national borders.
  • Prior consent or payment is not relevant (just because you agreed to come and/or were paid does not mean it is NOT trafficking).
  • Human trafficking does NOT require physical restraint (may only be psychological)

 

What is being done?

As CCV has battled the problems of sexually-oriented businesses for decades, they have recognized that human trafficking is one of the primary “feeders” that drive women and young girls into the sex industry. Many other national groups are also addressing this connection.

A press conference was held on July 31st in Columbus to announce a new coalition effort in Central Ohio. Rescue and Restore, a national outreach led by the U.S. Department of Health and Human Services (HHS), has helped establish 20 other coalitions around the country. They seek to bring together a diverse group of stakeholders, including law enforcement, health and social services, non-profits, faith-based organizations, legal aid groups, and others interested in eradicating this form of slavery. The primary tools to accomplish this goal are outreach, education, and victim assistance.

Members of this coalition are receiving training by various advocacy groups (Rescue and Restore, Polaris Project, Catholic Conference, and the Department of Justice). This training includes:

  • Increased public awareness
  • Provide training to various advocacy and social service groups
  • Develop outreach materials to educate the general public
  • Provide access to 24/7 hotlines for victim assistance
  • Identify and assist victims
  • Learn to ask the right questions to possible victim, get beyond the “coached” answers
  • Provide needed services (legal, health, and social care)
  • Identify temporary housing to provide a safe haven for victims

 

Further coalition meetings and advanced training will be occurring in the coming months. Also, many coalition members are beginning to meet and share about networking, resource development, and victim assistance services expertise.

How can I learn more?

Rescue and Restore
www.acf.hhs.gov/trafficking
1-888-3737-888

Kathleen Davis, Ohio Director
Polaris Project
www.polarisproject.org
[email protected]

Shared Hope
www.sharedhope.org

Be Careful What You Sign

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In order to be clear up front we are letting you know the following;

If you favor the implementation of the Community Defense Act, the law which forces strip clubs with liquor licenses to close at midnight and makes it a crime for a non-family member to touch a nude dancer while she is working, then DO NOT SIGN ANY PETITIONS BEING CIRCULATED. Despite what you are being told, THE PETITIONS ARE NOT TO REGULATE STRIP CLUBS THEY ARE TO STOP THE REGULATION OF STRIP CLUBS!

At least two major news outlets are reporting that petitioners collecting signatures for a referendum which would stop the implementation of SB 16, the Community Defense Act (CDA) are lying to voters to obtain their signatures. A front group formed by strip club owners calling itself Citizens For Community Standards began the petition drive shortly after the CDA was passed and allowed to go into law without Governor Strickland’s signature. The CDA is a bill which regulates the operating hours of strip clubs with liquor licenses and creates a “no-touch” zone around nude dancers which effectively prohibits so-called “lap dances.”

Ohio Public Radio reporter Bill Cohen broke the story and filed 2 reports which include audio of the fraudulent collection presentation by petitioners. The first report is Some on petitions to change new strip club rules may be surprised at what they’ve signed. This first report is a review of what the petition drive is all about. Most importantly, it is damning evidence of outright fraud through misrepresenting the purpose of the petition in getting signatures by petitioners. It is clear from the interviews that petition signers do not understand that they have signed a petition which causes the law to not go into effect until a referendum is held.

The second is Strip club owners, “values voters” group react to petition drive to change new rules on clubs. In this report you will hear spokesman for Citizens For Community Standards, Sandy Theis, attempt to explain away the fraud by saying that the issue is “inherently confusing” and that they didn’t “hire lawyers” to take signatures.

The Columbus Dispatch has also run a story titled Strip-club law: Petition collectors deceptive, some say in which they also document clear fraud by petitioners, in which potential signers were told that petitions were to “close strip clubs at midnight.” The article contains another quote from Sandy Theis who says circulators are “not intentionally misleading anybody. We’ve trained and retrained the circulators.” Really? What would you call telling a deliberate lie to get a signature, Ms. Theis? An inoperative statement, perhaps? A serial misunderstanding being repeated throughout the state? What script were the circulators trained on and is it possible that having been promised $15-20 per hour the circulators were finding out that the only way to actually meet those figures was to lie to the public because the other approach got them turned down too often? And what does this say for the prospects of passing this referendum if, by some miracle, the Citizens For Community Standards succeed in defrauding enough registered voters to get the required number of valid signatures? You can’t get that done by asking 14 year-olds to sign, as the circulator in the Dispatch story did.

These questions are only the beginning of what smart journalists should be asking. Why are news outlets treating the cease and desist trademark infringement letter from Citizens For Community Values (CCV, the family values group which got the CDA through the legislature) to Citizens For Community Standards (CCS) as if it’s inconsequential? The Dispatch‘s coverage is typical. They’re calling it the “name game.” But why hasn’t this raised questions in journalist’s minds? In the light of the clear fraud being perpetrated by the petitioners shouldn’t they be at least thinking about why a name so close to CCV’s would have been chosen? Wouldn’t a reasonable person, in the light of CCS activities in collecting signatures, at least consider the possibility that the name was chosen in order to deceive voters into thinking they were signing petitions being circulated by CCV, a group which has a proven track record in successful referendum and ballot issue drives in the recent past?

Another question, in light of the tacit admission by the individual circulators that sufficient signatures cannot be gathered ethically, is why CCS is going through with this dog-and-pony show of continuing to take signatures? Is it possible that is merely a delaying tactic? When insufficient valid signatures are turned in, is it not possible that CCS is counting on using the maximum allowable time before the ballot access deadline for a fall referendum, and that then they plan to drop an injunction stopping the implementation of the law anyway, when the effort is finally ruled to have fallen short by the Ohio Secretary of State? Keep in mind that this tactics could stretch actual implementation of the law into next year! Where is journalistic curiosity in this matter?

Since CCS has stated that there will eventually be legal action taken, it is important that as much evidence of fraud be collected as possible. If you’ve been approached by a petition circulator in the last few weeks and asked to sign a petition that would close strip clubs at midnight, regulate strip clubs, make it illegal to touch dancers, etc. we would like to hear about it. Please let the Institute For Principled Policy know at this email address. There’s no shame in being deceived or lied to. We just need to know.

Hypocrisy, Thy Name Is Columbus Dispatch

A recent commentary in the Columbus Dispatch is a nearly textbook illustration of the biblical warning that a double-minded man is unstable in all his ways (James 1:8). In this case the man is a woman, the context of the passage making clear that man is the generic “mankind” rather than the specific gender identifier. The commenter is Ann Fisher and the article is entitled Protest billboards with power of the dollar.

First let us congratulate Ms. Fisher for being right on in some of her analysis. The core of the commentary is about the billboards posted all over Columbus advertising a local radio station with a picture of an abundantly endowed female chest in a sleeveless t-shirt which advises us to listen to their station and “pray for rain”, thus making it a wet t-shirt. Aside from the clear dilemma presented by this advice (asking God to make this woman’s t-shirt wet so that men can act lustfully towards her really doesn’t square with the biblical idea that we should all treat the opposite sex with the respect he or she deserves as the image bearer of the Creator) there is the clear appeal to the prurient interests of travelers which has the potential of creating a serious traffic hazard (if you have seen this billboard then you understand).

Ms. Fisher correctly draws a connection between these billboards and the rather cavalier attitude allegedly exhibited by some Columbus Police officers who are accused of using the billboard as an example for a young woman trying to keep her boyfriend from being arrested. She accuses them of coercing her to expose her chest to them in exchange for letting him go, which she alleges she did, and that they honored her action (after defiling her body and making photographic evidence against themselves with a camera phone). Fisher also calls for a boycott of the station’s sponsors saying that the consumers have the power to make them stop the billboard campaign. More on this later.

But now we come to the rather obvious problems with Ms. Fisher’s addled analysis of the larger picture (so to speak). She says that the billboards and the accused policeman’s activities makes Columbus seem “unsophisticated.” It would be interesting to know how Ms. Fisher defines “sophistication.” She displays a very liberal “sophistication” in contradicting the head of the Lucas county YWCA, Lisa McDuffie who called attention to the plight of local strippers while rejecting the money from strip clubs that the Lucas county Democrats collected from the fundraiser. Fisher writes that “Those women don’t want or need our pity. They were just doing their jobs…” One wonders how “sophisticated” Ms. Fisher’s view would be if it were to be suggested to her that drug dealers and cigarette company executives were “only doing their jobs’ and that it is really those despicable addicts who buy the products that are the real problem. We can presume that the answer would be “not very.” Fisher is also apparently oblivious to the fact that the Lucas county YWCA chief is only too aware of the sad side effects of the sex trade and its connections with human trafficking, a serious problem that the Toledo area is very familiar with. McDuffie was right to refuse the strip club donation profits and she was right to call for Lucas county Democratic leadership to become enlightened as to the reasons why.

It is at this point that Ms. Fisher seems to realize that she is walking a high-wire over a yawning chasm with no net. She sighs aloud that the radio station owners “…correctly wrap themselves in the free-speech portion of the U.S. Constitution…” Correctly? While it is a very “sophisticated” interpretation of the first amendment which says that obscenity (and while the billboards may not meet the technical definition the average viewer will probably consider them to be obscene) is “protected speech.” The framers never intended it to protect pornography, soft, hard or otherwise, vile language or public lewdness. It was designed to foster and protect public debate of political issues. The expansion of “free-speech and expression” protections to lewd behavior and obscenity date back only to the early 1960’s. Why point this out and what makes Ms. Fisher’s call for boycotts of radio stations (media competitors) while creating a convenient artificial shield in the Constitution hypocritical? Because her employer, the Columbus Dispatch, collects money by the virtual wheelbarrow full every year from strip (“gentlemen’s”) clubs, massage parlors, adult toy and book shops, escort services, S/M dungeons, by-the-hour motels, prostitutes, etc. in both column and classified ads. Some preliminary analyses indicate that the Dispatch’s various revenues from the sex trade approach or exceed $1 million yearly. Thus, it’s clear that the donkey is calling the pig “long ears” at the top of its voice. Quite sophisticated, indeed.

Ms. Fisher digs this hole even deeper in attempting to make a hero of Democratic State Party Chairman and State Representative Chris Redfern in the recent Lucas county dust up involving the Lucas county Democratic party golf fund raiser where local strip clubs made party donations and provided strippers as “cart girls.” Again, we see the same pretzel logic with the strippers as demonstrated previously. They are merely plying their trade. It’s the customers who should be the target of our disgust. Everyone involved either denied that the strippers engaged in their trade or expressed outrage that they did so, thus exposing the disingenuousness of the deniers. The Toledo Blade has run a very informative series of stories on this, drudging up a great deal of information and eclipsing other state papers’ dismal coverage of an important story. You can click the links below for details.

Democratic Party treasurer teed off over golf outing’s strippers
Resignation of party boss sought for having strippers at golf fund-raiser
McNamara, Irish spar over strippers
Democrats’ scandal over strippers spills into city committee meeting
Council candidate rejects strip club’s $50 donation
Dems still squabbling over stripper scandal
Party hit by fallout from golf scandal
Lucas County Democratic chief resists calls to resign over stripper
Irish resigns as chairman of Democrats over scandal involving strippers
Lucas County Dems’ new leader slams party rivals



But what makes this part of the story so interesting is the lionization of Redfern for threatening to cut off funding for the Lucas county party leadership who allowed the strippers to attend the event when both he and Toledo area State Senator Teresa Fedor voted against SB 16, the Community Defense Act (CDA), a law which regulates strip clubs. Senator Fedor went so far as to stand in support of a group of professional strippers calling themselves the Dancers For Democracy, giving a speech in their support at their press conference. On the floor of the Senate she stood in opposition to portions of the bill that would prohibit customers having physical contact with dancers, the so-called lap dance prohibition. Probably the most laughable quote, one which exposes the utter hypocrisy of Senator Fedor is in the article Lucas County Democratic chief resists calls to resign over stripper wherein Fedor is quoted as having said “…the reported activity of a woman baring her body to some golfers was the last straw for her” followed by a letter to the Lucas county Democratic Party Chairman in which she wrote “Your egregious decision in staffing the golf outing is disrespectful to all women, to Democrats, to Toledo, and to the state of Ohio…” And what of your decision to vote against a bill that would regulate the behavior you pretend to abhor and to stand with women who allow their bodies to be exploited for profit, Senator Fedor?

Apparently both Redfern and Fedor oppose local governments being able to regulate adult business activities but have vowed to enforce a much stricter standard at Democratic party events. This hypocritical demonstration of political logrolling in the guise of mock outrage (read the last 3 articles on the list and you’ll find that the Lucas county Democratic Party ballet is more about control of the party than the strippers at a party event, about which Redfern and Fedor couldn’t really care less if their Ohio House and Senate votes mean anything) show the intricate dance amongst the cow patties that politicians are willing to perform in order to cover their duplicity. And also to what lengths members of the press are willing to go to make the same politicians look like defenders of the Constitution. Especially when they profit from the trade the politicians are working to protect.

By the way Republicans, you shouldn’t feel too superior based on this incident. There are plenty of GOP legislative peccadilloes connected with the passage of the CDA. Had Republicans including leadership in the Ohio Senate not bowed to the tremendous pressure applied by the strip club owners in the 2006 legislative session, the (CDA) would not have required a petition drive aimed at a referendum to force the legislative replacement of the enforcement “teeth” removed by that body.

Finally, Fisher ends her cognitive dissonance tour de force with the following logically sound appeal which she carefully and self-servingly applies only to the radio station billboards but which could just as conveniently apply to the adult business advertising in the Dispatch; “…If they bother you, forget the city, forget the station managers. Go to the sponsors. They aren’t emotionally attached to smarmy, sexist and degrading crap, but they speak profit margin fluently. That’s the American way.” We couldn’t agree more. Thanks to the editorial staff of the Columbus Dispatch for making it crystal clear what needs to be done to solve a growing problem.

Ohio lawmaker moves toward post-Roe landscape

Policy RadarEarlier this week, state Representative Tom Brinkman (R-Cincinnati) introduced legislation, House Bill 284 of the 127th Ohio General Assembly which would effectively end the practice of abortion in the state of Ohio.

The bill, similar to a measure Brinkman sponsored in the previous session which was only allowed one hearing, would change Ohio law to provide criminal penalties for doctors performing abortions. The bill is clear on this point, stating that “no person shall perform or induce an abortion.” A violation of the bill’s provisions would be a second-degree felony, which carries a jail sentence of two to eight years and a maximum fine of $15,000. A subsequent violation by the same offender would move this to a first-degree felony, which has a three to 10 year prison term and a $20,000 fine.

The bill, which would also ban the controversial drug RU-486, has already raised the opposition of NARAL Pro-Choice Ohio. Their director, Kellie Copeland, claims that the bill is “out of touch with Ohio mainstream values” in comments given to the Columbus Dispatch. Which stream is Ms. Copeland thinking of, the polluted Cuyahoga River? Murder of innocent human beings is never, we hope, a “mainstream value” to any Ohioan.

The state affiliate of the National Right to Life Committee is already waving a white flag on the issue. Their position, that pro-abortion Governor Ted Strickland would veto any legislation restricting abortion (a key campaign promise the then-candidate made to the Planned Parenthood affiliates of Ohio) and therefore pushing such legislation is futile, neglects that one salient outcome of recording the votes of legislators on this issue will clearly draw a bright line on who does and does not believe in the protection of innocent life. That information gathering alone makes supporting House Bill 284 worthwhile.

The Institute for Principled Policy salutes Rep. Brinkman on his effort to protect the most vulnerable citizens of our state. Speaker Jon Husted has stated that he must “poll his caucus” to see if there is “interest” in this bill when the House returns for session later this fall. Let’s help the Speaker conduct his poll. Contact your state representative and ask them to take an “interest” in HB284 by representing the will of their constituents and supporting this important legislation.

Tom DeWeese On Property Rights

At the Summer 2007 Camp American Tom DeWeese of the American Policy Center gave an excellent presentation on property rights and the pivotal role they play in our personal liberties.

In light of recent attempts to rein in the states’ power of eminent domain in light of the US Supreme Court’s failure to enforce the 5th amendment guarantee against the unreasonable seizure of private property, we thought this recording would be an excellent review of the issue. Let us know what you think. Leave a comment below.

Update On SB 7; Passed But Changed

Senator Tim Grendel’s bill designed to muzzle the rabid eminent domain dog has passed by both houses of the Ohio legislature but has changed drastically by all accounts. We will be analyzing the passed version for changes but we suspect that local governments and developers have prevailed and gutted the bill of all meaningful protections for individual property rights.

Why do we suspect this, you may be asking? Because there was a House version of this bill as well which was essentially a paper tiger. It provided only minimal protection to the homeowner and unlike the Senate version contained no penalties for governments which attempted to strong arm property owners into selling property or outright seizing property that the government entity might want for such things as revenue enhancement and other vastly expanded seizures allowances for “public uses” which the Supreme Courts’s Kelo decision allowed. The Senate version passed there and went to the House where it was essentially mutilated in committee and passed on the House floor. It was sent back to the Senate for approval and passed in its greatly altered form without hardly a whimper of protest. All done very quickly with nearly no time for property rights activists to analyze the changes. It looks as though the “wheels were greased” by Senate leadership to make local governments happy. Not a good sign.

Very sad, if true. Watch for updates.

Games of Skill? No Chance! Update

gamblingIn an article in today’s Columbus Dispatch (June 20, 2007), Ohio House Speaker Jon Husted called for legislation to ban so-called “games of skill,” reiterating his opinion that “…just because a game is 51% skill does not make it a game of skill…” and also that the move to re-label the games is merely a backdoor incremental approach to legalize the devices. Governor Ted Strickland and Attorney General Mark Dann have called for limiting payouts but Husted isn’t swayed by the arguments for this. He says limiting payouts will not limit losses, which is the bottom line for the gambling device manufacturers, distributors and operators who rely on the long odds for their considerable profit margins.

We can only speculate what effect this will have on attempts to expand gambling through Video Lottery Terminals (VLT’s) modified to show archived horse races that are represented in HB 118 and SB 125, currently before the Ohio Legislature.

We applaud Speaker Husted’s stand on principle. Thank you, sir!

Come back for updates. Tell us what you think with a comment.

Games Of Skill? No Chance!

gamblingCommentary By Chuck Michaelis

“Oh what a tangled web we weave, When first we practice to deceive”- Sir Walter Scott

What looked, at first, like a carefully choreographed effort to circumvent the will of the Ohio electorate, which voted in a 57%-43% rejection, on casino-style gambling has begun to take on the appearance of having devolved into a Three Stooges comedy routine. And while we might laugh at the eye-poking, suspender-snapping and non-sequitur banter of the performers, whose ranks include elected representatives and for-profit gambling companies, the potential outcome of their actions cannot be treated so cavalierly.

The latest chapter in this continuing story began earlier this year when Representative Bill Seitz of Cincinnati and Senator Steve Stivers of Columbus, ignoring the crushing defeat just last fall of State Issue 3 that would have allowed casino gambling in Ohio, introduced identical companion bills in their respective bodies, HB 118 and SB 125. The purpose of both bills is to permit Ohio racetracks to provide a venue for bettors to gamble on the outcome of random and anonymous pre-recorded horse races which would be shown on a multi-purpose gambling device specially chipped for this particular style of gambling. An identical bill was defeated last session when testimony was given that proved that with a simple chip change, these horse racing terminals could be converted to video slot or lottery (Keno) machines (see the article “Racinos Bad Public Policy” elsewhere on the Principled Policy blog).

In that 2006 session, realizing the bill was guaranteed to raise the ire of social conservative voters in a crucial election year (which became a virtual political bloodbath anyway), Ohio House Speaker Jon Husted required Rep. Seitz, the House Majority Whip, to guarantee 50 “yes” votes from his own caucus before it could be brought to the floor, according to well-placed sources. Despite Seitz’s best lobbying effort, he could not deliver the required “yes” votes. Now, in this session of the General Assembly, the Senate version of this bill (SB 125) has moved forward first, passing the Senate on 5/23/07 by a vote of 25 “yes” to 8 “no” and is now before the Ohio House. It is doubtful that Speaker Husted will impose the same restriction on this bill as that placed on the House version last session.

The purpose of this legislation is officially to “help” the Ohio horse racing industry that is feeling pressure from casino gambling in nearby states to be more competitive by offering similar gambling options. Legislators are warm to this idea because increased revenues at the tracks means, supposedly, increased tax revenues to the state. Just like the state “cashes in” with the Ohio Lottery, which is in reality a tax on the poor based on false hopes fueled by flashy and misleading advertising, some Ohio legislators hope to cash in on the revenue potential from “Racinos”, heedless of the extensive economic and social costs associated with this effort. Most importantly, the unstated reality is that large increase in revenues to tracks and gambling corporations can translate into large contributions to re-election funds and party coffers, especially to the “friends” of the gambling interests.

It is evident to many observers that the tracks have been well-greased this go-around, and that SB125 is on a fast track to final approval. The Ohio legislature will be recessing for the summer after finalizing the state’s biennial budget bill, which will be adopted by the end of June. The pace of hearings on SB125 is such to ensure that the bill is brought to the House floor for a vote prior to that recess. The bill was assigned to the House State Government and Elections Committee (gee, what irony in a name), on which sit 7 of the co-sponsors of the companion legislation, HB 118. A check of the record shows that two more members of this committee voted in favor of the previous session’s version of this expansion of gambling, giving the bill at least 9 votes (which happens to be just the number needed to clear the committee with a simple majority, which is comprised of 17 members of the House). House sponsor Rep. Seitz sits on the committee, as well as four other members of the leadership of the chamber from both parties.

The committee has stated how concerned they are about the struggling horse industry, but has yet to raise any questions or concerns relative to the human costs such state endorsement of further addictive behavior would bring to Ohio. Research clearly indicates that such rapid-fire gambling options increase the potential for developing problem gambling in a more expedited onset of the behavior which indicates such addiction. None of that has been of pressing concern so far to the elected representatives of the people, nor is it a concern that in the last 16 years, the people have soundly rejected all attempts to expand gambling in Ohio.

From the other side of the political spectrum is the recent St. Vitus Dance of Attorney General Mark Dann on the status of the “Match ‘Um Up” game distributed by Castle King LLC. AG Dann hired Gaming Laboratories, LLC to do a study to determine if “Match Um Up” had a skill element greater than 50%, which would purportedly make the game a “game of skill” rather than a gambling device. Based on this report, Dann ruled the game a “game of skill.” How precisely this determination can be made from the information provided by Gaming Laboratories remains a mystery because nowhere in the report is there an indication of any percentage of skill versus chance involved in Match ‘Um Up.

As soon as AG Dann announced that the report would be released to the public, Castle King immediately filed for and was granted a temporary injunction requiring the Ohio AG to keep the Gaming Laboratories report secret. This threw Dann into fit of pique and he immediately announced that if the report were not released, then he would declare the games “gambling devices.” This raises an obvious question; what sort of information could possibly be contained in this report that would change the status of “Match Um Up” from a “game of chance” to a “game of skill?” The answer is apparently nothing of any real significance. Castle King agreed to the release of a redacted report, available here.

In a June 7, 2007 article in the Columbus Dispatch, Castle King attorney David Kopech argues that the unredacted report contains information such as the game icon pattern and strategy that could allow players to “beat the game” and allow competitors to copy it. This statement proceeds from some very interesting assumptions. For instance, it assumes that a person knowing the icon pattern and game strategy could overcome the device’s software-controlled icon timing and other factors. It also assumes that there is no governing devices in the game to control the skill element.

In another article in the Columbus Dispatch from June 9, 2007, explains that beating the game through “skill” requires memorizing the positions 128 icons as they whiz by, each icon being visible for either three-tenths or eight-tenths of a second (0.333 milliseconds or 0.83 milliseconds), the speed determined by the software and fully under the control of the game operator (not the player). In the same article Dr. Richard McGowan of Boston College explains that in this kind of game the distinction between skill and chance is irrelevant. He added that “It’s a backdoor way of trying to get into casino gambling. No doubt about it.”

Former Ohio Attorney General Jim Petro, who is not opposed to gambling, in the same Dispatch article explains that the games payouts are determined mostly by chance and are controlled by a governor and cannot be won every time, making them mostly dependent on chance and therefore illegal. Petro also pointed out that allowing similar “skill” games opens the door to Indian Casino gaming.

Petro’s and McGowan’s assertions that the devices are actually games of chance are backed by the technical specifications as outlined in the patent applications for them. A close examination of those specifications reveals that the devices are designed to limit the skill element, thus keeping the “odds with the house” ensuring limited payouts and big collections for the game operator.

And in yet another article from the Columbus Dispatch from June 10, 2007, we were informed that Castle King has “…hundreds of machines waiting in warehouses for shipment around the state if Dann approves…” This revelation raises an obvious question. Why would a gaming device manufacturer move “hundreds of devices” worth several thousand of dollars apiece into a state where the previous Attorney General had ruled that games in question were gambling devices and illegal to operate under Ohio law? Why would they store this type of device in a state that had only 6 months before resoundingly defeated casino-style gambling expansion? Wouldn’t it be easier and cheaper to keep them in a warehouse at or nearer the distributor and truck them in if, by some chance, the AG should rule in their favor? Logically, the only reason to go to the expense (hundreds of thousands of dollars) of filling several warehouses in Ohio with illegal gaming devices is if you believe you have excellent odds of having them declared legal. For what reason, do you suppose, Castle King concluded that it was a good economic gamble to invest massive economic resources in the effort to have the devices available for delivery at a moments notice, when they could have had the machines here by truck in a few hours if the AG’s decision was favorable? And what does it say about the company’s estimate of the potential profitability, that they believe it would be more lucrative to warehouse them here and have them ready at the exact hour they become legal rather than delaying the few hours that it would take to truck them in? These and other questions need answers. This author is not holding his breath while waiting for those answers.

With the legislature’s Republican delegation taking careful aim at its own electoral foot and about to pull the trigger with the gambling expansion bill (among other issues like eminent domain reform), all that needed be done by the Democrats was to relax and let it happen, even help it along by voting for whichever measure happened to find success. Gambling opponents would only remember that the Republican majority proposed and passed the bill. A very sound political strategy. Then along came Attorney General Mark Dann, who stumbled into the fray with his now-withdrawn proposal to anoint what are clearly gambling devices (as anyone examining the information available on the devices would by reasoned analysis conclude) as “games of skill.”

Enter stage left the very savvy politician Governor Ted Strickland on his white horse. Putting his best populist face forward, Governor Strickland said that the people have spoken at the ballot box on the issue of casino gambling. This from the same Governor Strickland who was inexplicably tone deaf earlier this year, and unable to hear the electoral song sung by voters in 2004 on Issue One while implicitly recognizing homosexual partners, one or both of whom are employed in state government, as being the equivalent of married and entitled to “domestic benefits.”

The Governor devised a clever strategy that allowed AG Dann to recover at least some of his credibility. He announced that he will veto any legislation that expands gambling in Ohio. This is a good thing and even a good thing done for the wrong reason is commendable. Thank you, Governor Strickland!

He also issued a joint statement with AG Dann in which they both called for the Ohio Legislature to pass a new law banning cash payouts on games like Match ‘Um Up and Tic Tac Fruit. This allows Dann some wiggle room to correct the blunder of dallying with gambling interests by appearing to be “concerned” about the gambling corporations’ “lack of candor” and proposing a solution for the problem he himself created. This public relations dog-and-pony show is intended to cover the fact that gaming devices are already banned by Ohio law. In a Columbus Dispatch article from June 15,2007 Ohio House of Representatives Jon Husted catches this “nuance” stating that the debate over banning payouts is moot because the devices are already illegal. He also said “How about we just eliminate them? Just enforce the law.” Husted also echoes Former AG Petro’s concerns that the legalization of small cash payouts would be a back door to legalization of gaming machines which opens the door to Indian gaming casinos as it has in other states like Arkansas. Federal law allows tribes to negotiate to open casinos using the devices approved by the states.

So, in the final analysis Governor Strickland’s seeming response to the clear voice echoing the will of the people may have a somewhat different motivation than that purported. What looked at a distance like a knight on a white horse may be resolving into a snake oil merchant on a donkey as we examine him close up. Time will tell.

In the legislature, it seems term limits, big political payouts and avoiding the hard work of balancing a state budget through the tough choices of lowering taxes and cutting state spending might outweigh the will of the people in this instance. I wonder if the people who voted in such large numbers last fall to curb gambling will show back up next fall to curb those who like to gamble on the good will of the electorate. A large number of members of the Ohio legislature are placing their bets on a very risky game of chance.

Chuck Michaelis is the president of Rocky Fork Formulas, Inc., a dietary supplement design and distribution company. He is also the Executive Director of Camp American, a week-long summer Christian worldview education camp for ages 12 years to adult. He is currently the Vice-chairman of the Institute For Principled Policy. You can contact him at [email protected]

Update on HB 47- Bill To Rein In The Muskingum Watershed Conservancy District Board

Information provided by Marlys J. Barbee, Secretary/Treasurer CITIZENS AGAINST MWCD ASSESSMENT

Policy RadarThe Muskingum Watershed Conservancy District (MWCD) is a state government subdivision which is trying to put a $270 million general tax upon the 2.1 million people of all or part of the following Ohio counties: Ashland, Belmont, Carroll, Coshocton, Guernsey, Harrison, Holmes, Knox, Licking, Morgan, Muskingum, Noble, Richland, Stark, Summit, Tuscarawas, Washington and Wayne.

The main issue is that the MWCD is allowed by the Ohio Revised Code (ORC) 6101 to apply an assessment upon the people who receive a direct benefit for their “services”. However, the MWCD are trying to say ALL properties in the 18-county district are receiving a benefit, thus the “assessment” has now become a general tax. There is no vote by the people, no say in how much money is collected, no say as to who spends the money or how the money is spent. This government sub-division must be put back into the box. Their power is out of control.

Attempting to do just that, Rep. Bob Gibbs (R) of Lakeville, Ohio, has introduced legislation which would require a board of directors, not a conservancy court of judges, to perform certain functions under the Conservancy District’s law, and prohibits the levying of an assessment by such a conservancy district on real property that is not directly benefited from the assessment. There are a number of other reasons to support this legislation as we (CAMA — Citizens Against MWCD Assessment) have delved into the workings of MWCD, finding corruption and dishonesty.

This bill, HB 47, in now in the Economic Development and Environment Committee, chaired by Rep. Thom Collier. We need people to contact the committee members, asking their support of HB 47. By going to the web site, www.stopmwcd.org , you can find the names and contact information of all the committee members.

The next hearing on this bill is May 16, and we are hoping a final hearing on May 23 will bring this bill to a vote. Our opponents are using taxpayer’s money to pay lobbyists to convince these lawmakers of their “right” to do what they are doing. We as grassroots workers need the taxpayers themselves to come to our aid to win this battle.

This web site will also give you more detailed information regarding our research and concerns. The support from people all over the state of Ohio is necessary as we look forward to having this bill pass committee and go to the House floor for a vote, then on to the Senate. Most legislators know nothing about what is wrong with this one Conservancy District out of all Conservancy Districts across the state that has gone out of control as a “recreation district”.