I Mina'Trentai Kuåttro Na Liheslaturan BILL STATUS

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1 34th GL CLERKS OFFICE Bill HISTORY 5/19/ :52 AM I Mina'Trentai Kuåttro Na Liheslaturan BILL STATUS BILL NO (COR) SPONSOR Telena Cruz Nelson B. J.F. Cruz TITLE AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUAM. DATE INTRODUCED 3/22/17 3:40 p.m. DATE REFERRED CMTE REFERRED 03/24/17 Committee on Education, Finance and Taxation PUBLIC HEARING DATE 4/20/17 9:00 a.m. DATE COMMITTEE REPORT FILED 5/19/17 11:01 a.m. FISCAL NOTES Fiscal Note Request 3/24/17 Fiscal Note 4/11/17 NOTES Page 1

2 SENATOR JOE S. SAN AGUSTIN Chairman, Committee on Education, Finance, and Taxation t' TrentaiKuattronaLiheslaturanGuahanThirty-Fourth Guam Legislature April 25, 2017 The Honorable Benjamin J.F. Cruz Speaker I Mina'trentai Kuattro Na Liheslaturan Guahan 155 Hesler Place Hagatfia, Guam VIA: The Honorable Michael San Nicolas Chairperson, Committee on Rules RE: Committee Report on Bill No.50-34, (COR) an Act to Repeal #64.62 of Chapter 64. Title 9, and to Amend #5205 (a) of Chapter 5, Title 11, of Guam Code Annotated, Relative to Removing Exemptions for Gambling and Possession of Gambling Devices at or During the Liberation Day Carnival and Other Fair or Carnival Activities in Guam. Dear Speaker Cruz: Transmitted herewith is the Committee Report on Bill No , (COR). Committee votes are as follows: 1 TO eonpirutfass _fj_ NOT TO eonfi~ PASS h TO REPORT OUT ONLY jf_ TO ABSTAIN Rf TO PLACE IN INACTIVE FILE Sincerely, ~"-\] / SeM:;';oe S. San Agustin Ctnlirman I RECEIVED MAY 18 2_1!!7 1 f :~3fm CYV COMMITTEE ON RULES Ran Care Bldg., Suite 3, 2nd Floor, 761 S. Marine Corps Dr., Tamuning, Guam Tel: Fax: senatorjoessanagustin@gmail.com

3 COMMITTEE REPORT ON BILL NO Relative To Removing Exemptions For GAJ/IBLING And Possession Of Gambling Devices At Or During The Liberation Day Carnival And Other Fair Or Carnival Activities In Guam.

4 SENATOR JOE S. SAN AGUSTIN Chairman, Committee on Education, Finance, and Taxation t' TrentaiKuattronaLiheslaturanGuahanThirty-Fourth Guam Legislature April 25, 2017 MEMORANDUM To: All Members Committee on Education, Finance and Taxation From: Senator Joe S. San Agustin Committee Chairman Subject: Committee Report on Bill No (COR) An Act to Repeal #64.62 of Chapter 64, Title 9, and to Amend #5205 (a) of Chapter 5, Title 11, of Guam Code Annotated, Relative to removing exemptions for Gambling and Possession of Gambling Devices at or During the liberation Day Carnival and Other Fair or Carnival Activities in Guam. Transmitted herewith for your consideration is the Committee Report on Bill No This report includes the following: 1. Committee Voting Sheet 2. Committee Report Digest 3. Copy of Appointment Packet 4. Public Hearing Sign-in Sheet 5. Copies of Written Testimonies 6. Notices of Public Hearing 7. Copy of the Public Hearing Agenda Please take the appropriate action on the attached voting sheet. Your attention to this matter is greatly appreciated. Should you have any questions or concerns, please do not hesitate to contact my office. Sincerely, Chairman Ran Care Bldg., Suite 3, 2"d Floor, 761 S. Marine Corps Dr., Tamuning, Guam Tel: Fax:

5 ON Senator Michael F.Q. San Nicolas, Chairman l Mina'Trentai Kuattro tw Liheslaturan Gu!ilum 34 1 h Guam Legislature To: Rennae Meno Clerk of the Legislature Attorney Julian Aguon Legislative Legal Counsel From: Date: Re: Senator Michael F.Q. San Nicolas Chairman of the Committee on Rules March 24, 2017 Referral of Bill No (COR} Buenas yan Hafa adai. As per my authority as Chairman of the Committee on Rules, l am forwarding the referral of Bill No {COR). Ptease ensure that the subject bill is referred, in my name, to Senator Joe S. San Agustin, Chairperson of the Committee on Education, Finance and Taxation. I also request that the same be forwarded to the prime sponsor of the subject bill Attached, please see the COR pre-referral checklist for your information, which shall be attached as a committee report item to the bill. If you have any questions or concerns, please feel free to contact Christian Valencia, Committee on Rules Director, at Thank you for your attention to this important matter. GUAM SANTO PAPA" (671) " address: corguamlegislature@gmail.com lo

6 Committee on Rules 34GL FIRST NOTICE of Public Hearing on Thursday, 20 April 2017 at 9:00 am -CHANGE 2 1 message Rose Mesa <rose.senatorsa@gmail.com> Thu, Apr 13, 2017 at 5:08PM To: phnotice@guamlegislature.org Cc: Rennae Meno <rennae@guamlegislature.org>, "Joe S. San Agustin" <senatorjoessanagustin@gmail.com> 13 April2017 MEMORANDUM To: ALL HONORABLE Senators I Members and Media From: Senator Joe S. San Agustin, Chairman Subject: FIRST NOTICE of Public Hearing on Thursday, 20 April2017- CHANGE 2 Buenas yan Hafa Adail In accordance with the Open Government Law, relative to notices for public meetings, please be advised that the Committee on Education, Finance, and Taxation will convene a public hearing on Thursday, April 20, 2017, beginning at 9:00am in I Liheslaturan Guahan s Public Hearing Room (Guam Congress Building, Hagatiia). The Committee will hear and accept testimonies on the: - Referral of Appointment of Jerold W. Filush; Position for Member, University of Guam Board of Regents; Term Length- Six (6) years - Referral of Appointment of Mark Benny C. Mendiola; Position for Member, Parent of Student Enrolled within GDOE Representative. Guam Education Board; Term Length - Three (3) years - Referral of Appointment of Edward B. Palacios; Position for Member, Cockpit License Board; Term Length - One ( 1) year - BILL No {COR) AN ACT TO ADD A NEW 4124 TO ARTICLE 1 OF CHAPTER 4, TITLE 5, GUAM CODE ANNOTATED; RELATIVE TO ESTABLISHING MONTHLY CONSOLIDATED TAX COLLECTIONS REPORTS. - BILL No {COR) AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAJ\1BLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUAM. Individuals who wish to submit written testimony may address Senator Joe S. San Agustin, and send it within forty-eight ( 48) hours to:

7 Hand delivery to the Office of Senator Joe S. San Agustin at the Ran Care Building, 2nd Floor Suite 3, 761 South Marine Drive, Tamuning, Guam All government activities, programs, and services are accessible for people with disabilities in compliance with the Title II of the American with Disabilities Act (ADA). Should you or interested parties require assistance or special accommodations to fully participate in this public heaxing, please contact our office at or via Un Dlmgkolo Na Si Yu'os Ma'ase' Very Respectfully, RoseMarie T. Mesa Office Manager IMina' Trentai Kuattro na Liheslaturan Guahan (Thirty-Fourth Guam Legislature) Senator Joe S. San Agustin Committee on Education, Finance and Taxation Office: rose. com

8 SENATOR JOE S. SAN AGUSTIN Chairman, Committee on Education, Finance, and Taxation I Mina' Trentai Kuattro na Liheslaturan Guahan Thirty-Fourth Guam Legislature 13 April 2017 MEMORANDUM To: ALL HONORABLE Senators I Members and Media From: Senator Joe S. San Agustin, Chairman Subject: FIRST NOTICE of Public Hearing on Thursday, 20 April CHANGE 1 Buenas yan Hafa Adai! In accordance with the Open Government Law, relative to notices for public meetings, please be advised that the Committee on Education, Finance, and Taxation will convene a public hearing on Thursday, April20, 2017, beginning at 9:00am in/ Liheslaturan Guahan's Public Hearing Room (Guam Congress Building, Hagatiia). The Committee will hear and accept testimonies on the: Referral of Appointment of Jerold W. Filush; Position for Member, University of Guam Board of Regents; Term Length- Six (6) years Referral of Appointment of Edward B. Palacios; Position for Member, Cockpit License Board; Term Length- One (1) year BILL No (COR) AN ACT TO ADD A NEW 4124 TO ARTICLE 1 OF CHAPTER 4, TITLE 5, GUAM CODE ANNOTATED; RELATIVE TO ESTABLISHING MONTHLY CONSOLIDATED TAX COLLECTIONS REPORTS. BILL No (COR) AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUAM. Individuals who wish to submit written testimony may address Senator Joe S. San Agustin, and send it within forty-eight (48) hours to: - Hand delivery to the Office of Senator Joe S. San Agustin at the Ran Care Building, 2nd Floor Suite 3, 761 South Marine Drive, Tamuning, Guam Ran Care Bldg., Suite 3, 2nd Floor, 761 S. Marine Corps Dr., Tamuning, Guam Tel: Fax: senatorjoessanagustin@gmail.com

9 Cont. All government activities, programs, and services are accessible for people with disabilities in compliance with the Title II of the American with Disabilities Act (ADA). Should you or interested parties require assistance or special accommodations to fully participate in this public hearing, please contact our office at or via at 0 0 UN DANGKOLO NA Sf YU'OS MA 'ASE' Res~lY.J..:.t!-f-- -i.,_ Senator} S., an Agustin Chair:rKcm, Committee on Education, Finance, and Taxation cc: COR Sgt-at-Arms MIS Clerks Media Protocol 2

10 Committee on Rules 34GL SECOND NOTICE of Public Hearing on Thursday, 20 April2017 at 9:00am 1 message Rose Mesa <rose.senatorsa@gmail.com> Man, Apr 17, 2017 at 8:02AM To: phnotice@guamlegislature.org Cc: "Joe S. San Agustin" <senato~oessanagustin@gmail.com>, Guam Legislature Clerks <clerks@guamlegislature.org>, Rennae Meno <rennae@guamlegislature.org> 17 April 2017 MEMORANDUM To: ALL HONORABLE Senators I Members and Media From: Senator Joe S. San Agustin, Chairman Subject: SECOND NOTICE of Public Hearing on Thursday, 20 April 2017 Buenas yan Hata Adai! In accordance with the Open Government Law, relative to notices for public meetings, please be advised that the Committee on Education, Finance, and Taxation will convene a public hearing on Thursday, April 20, 2017, beginning at 9:00am in I Lihes/aturan Guahan's Public Hearing Room (Guam Congress Building, Hagatiia). The Committee will hear and accept testimonies on the: Referral of Appointment of Jerold W. Filush; Position for Member, University of Guam Board of Regents; Term Length -Six (6) years - Referral of Appointment of Mark Benny C. Mendiola; Position for Member, Parent of Student Enrolled within GDOE Representative. Guam Education Board; Term Length - Three (3) years Referral of Appointment of Edward B. Palacios; Position for Member, Cockpit License Board; Term Length - One (1) year BILL No (COR) AN ACT TO ADD A NEW 4124 TO ARTICLE 1 OF CHAPTER 4, TITLE 5, GUAM CODE ANNOTATED; RELATIVE TO ESTABLISHING MONTHLY CONSOLIDATED TAX COLLECTIONS REPORTS. BILL No (COR) AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUAM. Individuals who wish to submit written testimony may address Senator Joe S. San Agustin, and send it within forty-eight (48) hours to: Hand delivery to the Office of Senator Joe S. San Agustin at the Ran Care Building, 2nd Floor Suite 3, 761 South Marine Drive, Tamuning, Guam senatorjoessanagustin@gmail.com All government activities, programs, and services are accessible for people with disabilities in compliance with the Title II of the American with Disabilities Act (ADA). Should you or interested parties require assistance or special accommodations to fully participate in this public hearing, please contact our office at or via at senatorjoessanagustin@gmail.com.

11 Un Dangkolo Na Si Yu'os Ma'ase' Very Respectfully, RoseMarie T. Mesa Office Manager IMina' Trentai Kuattro na Liheslaturan Guahan (Thirty-Fourth Guam Legislature), Senator Joe S. San Agustin Committee on Education, Finance and Taxation Office: 671~ com

12 SENATOR JOE S. SAN AGUSTIN Chairman, Committee on Education, Finance, and Taxation I Mina' Trentai Kuattro na Liheslaturan Guahan Thirty-Fourth Guam Legislature 17 April 2017 MEMORANDUM To: ALL HONORABLE Senators I Members and Media From: Senator Joe S. San Agustin, Chairman Subject: SECOND NOTICE of Public Hearing on Thursday, 20 April 2017 Buenas yan Hllfa Adai! In accordance with the Open Government Law, relative to notices for public meetings, please be advised that the Committee on Education, Finance, and Taxation will convene a public hearing on Thursday, April20, 2017, beginning at 9:00am in I Liheslaturan Guahan's Public Hearing Room (Guam Congress Building, Hagatfia). The Committee will hear and accept testimonies on the: Referral of Appointment of Jerold W. Filush; Position for Member, University of Guam Board of Regents; Term Length- Six (6) years - Referral of Appointment of Mark Benny C. Mendiola; Position for Member, Parent of Student Enrolled within GDOE Representative. Guam Education Board; Term Length- Three (3) years Referral of Appointment of Edward B. Palacios; Position for Member, Cockpit License Board; Term Length- One (1) year BILL No (COR) AN ACT TO ADD A NEW 4124 TO ARTICLE 1 OF CHAPTER4, TITLES, GUAM CODE ANNOTATED; RELATIVE TO ESTABLISHING MONTHLY CONSOLIDATED TAX COLLECTIONS REPORTS. BILL No (COR) AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUAM. Ran Care Bldg., Suite 3, 2nd Floor, 761 S. Marine Corps Dr., Tamuning, Guam Tel: Fax: senatorjoessanagustin@gmail.com

13 Cont: Individuals who wish to submit written testimony may address Senator Joe S. San Agustin, and send it within forty-eight ( 48) hours to: Hand delivery to the Office of Senator Joe S. San Agustin at the Ran Care Building, 2nd Floor Suite 3, 761 South Marine Drive, Tamuning, Guam senatorjoessanagustin@gmail.com All government activities, programs, and services are accessible for people with disabilities in compliance with the Title II of the American with Disabilities Act (ADA). Should you or interested parties require assistance or special accommodations to fully participate in this public hearing, please contact our office at or via at senatorjoessanagustin@gmail.com. 0 0 UN DANGKOLO NASI YU'OS MA 'ASE' ( Senator J _e S. San Agustin Chairman, Committee on Education, Finance, and Taxation cc: COR Sgt-at-Arms MIS Clerks Media Protocol 2

14 ce of k) EN AT 0 R Joe S. San Agustin IMina' TrentaiJ(uattronaLiheslaturanGwi.han Thirty-Fourth Guam Legislature CONFIRMATION HEARING Thursday, April 20, 2017 Guam Legislature Public Hearing Room AGENDA 9:00AM o Appointment of Mr. Jerold W. Filush, as Position for Member, University of Guam Board of Regents Term Length: Six (6) years Appointment of Mr. Mark Benny C. Mendiola, as Position for Member, Parent of Student Enrolled within GDOE Representative, Guam Education Board Term Length: Three (3) years..,,.. Appointment of Mr. Edward B. Palacios, as Position for Member, Cockpit License Board Term Length: One (1) year Bill No (COR) An Act To Add A New #4124 To Article 1 Of Chapter 4, Title 5, Guam Code Annotated; Relative To Establishing Monthly Consolidated Tax Collections Report. Bill No COR) An Act To Repeal #64.62 of Chapter of Chapter 64, Title 9, And To Amend #5205 (a) Of Chapter 5, Title 11, Of Guam Code Annotated, Relative To Removing Exemptions For GAJ/lBLING And Possession Of Gambling Devices At Or During The Liberation Day Carnival And Other Fair Or Carnival Activities In Guam. In compliance with the Americans with Disabilities Act, individuals requiring special accommodations or services or for further information, please call the Committee on Education, Finance and Taxation at or at senatorjoessanagustin@gmail.com UN DANGiiOLO NASI YU'OS MA ~SE' Committee Chairman: Education.. Finance.. & Taxation Ran Care Bldg.,2nd Floor, Ste 3, 761 S. Marine Corps Dr., Tamuning, GU (671)

15 I Mina'Trentai Kuattro Na Liheslaturan Guahan Committee on Rules - Committee Report Guidebook Public Hearing Sign-in Sheet April 20, :00 am Guam Congress Bldg Appointee: VISITORS Position: Agency/Board or Commission. _ NAME (~ ~JJ. v (Wlw~~~ 1: <U ll G-11\..{..._. AGENCY OR SUPPORT? WRITTEN ORAL ORGANIZATION (IF ANY) OPPOSEJ TESTIMONY TESTIMONY Gvv~v. Wt ~5\~ <9-i'll~,vo-w<-- ~... --~ 06~~, I V tv~ f..~/~ s, Jl._ ~ 'JY \/ CONTACT NUMBER ADDRESS - Cf!L ~ ~~ :?Q- 3$': ~ Page_of

16 I Mina'Trentai Kuattro Na Liheslaturan Guahan Committee on Rules - Committee Report Guidebook Public Hearing Sign-in Sheet April20, :00am Guam Congress Bldg Appointee: BILL NO (COR) Position: -- Agency/Board or Commission: Relative To Removing ExemptionsFor GAJ/lBLING And Possession Of Gambling Devices At Or During The Liberation Day Carnival And Other Fair Or Carnival Activities In Guam NAME ~ R~ ~9(\ -..()\.J\12--'---ufi ~-M fl(fia~.a-~~ /~)(2 M~' ~ ~ Ar4 ux \{,..~Mvvv- Au~.f'l Salo l a""' jl'lhl"'' \: nv,.,clco.lol ~;..,tfj1.f'-pw\1nto l.lut..?r, I uu~ci -r;: k.. ~ cc...:..1\'-""' -~ I f ~ I AGENCY OR SUPPORT? WRITTEN ORAL CONTACT ORGANIZATION (IF ANY) OPPOSE? TESTIMONY TESTIMONY NUMBER, & -~::ii~ M.~~ t>~ ~~~L.o 6'\'-\-\J <;,~ ~ f./7iy\:i7/\a ~'~ v' _l-[]-_.1-4:t~ t:.lj/~ M~ ~...-i./pi- L--- v- -1l---</ S 3 o" -'rl1 r}or" I """' ~ td"~ '<' ~<rt..jl.._/ ~ b.,fo&> ~ I VI~ - MC(!/ G,' ~:)ro~ / l/- 7 ).,(;, q t.ft. ')1)000(")-- / Ul s::'1i'y'oy" 'y f" t/ > vyp,~o -+./ ~? t'...v>1 - ADDRESS (, /"""'\ ( I tj..~ia. 1~~ 'oj.,,~'iifb'r:.@.j G\h,.,...,fA..,. -.) v. Page_of_

17 I Mina'Trentai Kuattro Na Liheslaturan Guahan Committee on Rules - Committee Report Guidebook Public Hearing Sign-in Sheet April20, :00am Guam Congress Bldg Appointee: BILL NO (COR) Position: -- Agency/Board or Commission: Relative To Removing ExemptionsFor GAJ/lBLING And Possession Of Gambling Devices At Or During The Liberation Day Carnival And Other Fair Or Carnival Activities In Guam NAME AGENCY OR ORGANIZATION (IF ANY) SUPPORT? OPPOSE? WRITTEN TESTIMONY ORAL TESTIMONY CONTACT NUMBER ADDRESS // _ -~. (, / Page_of_

18 I Mina'Trentai Kuattro Na Liheslaturan Guahan Committee on Rules - Committee Report Guidebook Public Hearing Sign-in Sheet April 20, :00 am Guam Congress Bldg Appointee: VISITORS Position: -- Agency/Board or Commission NAME / ) _:,_kh1!)_,~ J /' AGENCY OR SUPPORT? WRITTEN ORAL ORGANIZATION (IF ANY) 9PPO~ TESTIMONY TESTIMONY i) /11_ 'V' ~ CONTACT NUMBER ADDRESS Page_of

19 Law Office of ARRIOLA COWAN & ARRIOLA JOAQUIN C. ARRIOLA MARK E. COWAN ANITA P. ARRIOLA JOAQUIN C. ARRIOLA, JR. Calvo-Arriola Building 259 Martyr Street, Suite 201 Hagatna, Guam Mailing Address: PO Box X Hagatna, Guam Telephone: /33 Facsimile: arriolalaw@arriolacowan.com April 20, 2017 The Honorable Joe S. San Agustin Committee on Education, Finance, and Taxation 34th Guam Legislature Guam Congress Buiiding 163 Chalan Santo Papa Hagatna, Guam RE: Bill No (COR) Dear Senator San Agustin and Committee Members: I am a lawyer and a partner at Arriola, Cowan & Arriola. I support the passage Bill No. My family and I have been involved in numerous campaigns to defeat gambling proposals on the ballot. My law partner Jay and I have represented Lina'la Sin Casino in several lawsuits related to defeat these proposals. Guam' s voters have spoken five times soundly defeating every single gambling proposal on the ballot. In 2012, NO votes on Proposal A won in every single village, and garnered its highest percentage of votes at 65%. We attended all of the public meetings, debates, luncheons, radio and tv shows, and forums where gambling initiatives were, and we campaigned at all of the precincts on election day. Here' s what we learned. People in Guam do not want gambling in Guam. They do not want "special" exclusions for gambling such as those granted to operate the Liberation Day Carnival and Village Fiestas by the Mayors. And they don't want pachinko parlors and other gambling machines. I ask all of you to vote in favor of Bill No o:r~~ ANITA P. ARRIOLA

20 OFFICE OF SENATOR TELENA CRUZ NELSON CHAIRPERSON OF THE COMMITTEE ON HOUSING, UTILITIES, PUBLIC SAFETY & HOMELAND SECURITY I MINA'TRENTAI KUATTRO NA LIHESLATURAN GUAHAN I 34th GUAM LEGISLATURE April 20, 2017 VIA senato(ioessanagustin@gmail. com Honorable Joe S. San Agustin Chairperson Committee on Education, Finance, and Taxation Ran Care Building, 2nd Floor Suite South Marine Drive Tamuning, Guam Subject: Sponsor Statement for Bill No (COR) Dear Chairperson San Agustin: Hija Adai! Thank you for scheduling Bill No (COR)- "AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUAM," for a public hearing. The public by referendum have confirmed public policy against casino-style gambling. The public is concerned about the lack of transparency about gross proceeds extracted from patrons. Bill (COR) would remove the authority to permit casino gambling and related devices during the Liberation Day Carnival or any other fair or carnival activities in Guam, in conformance with established public policy. We are closing the loophole in the law that permits casino gambling at fairs and carnivals. Public offlces are becoming dependent on profits from professionally managed and equipped gambling enterprises at the Liberation Carnival fair grounds that are otherwise prohibited from operating under the laws of Guam. According to OPA Report 16-06, in Fiscal Year 2015, the government of Guam collected a mere $32,000 from gambling activities at the Liberation Day carnival. Bingo and cockfighting are grounded in our culture, but we've been battling back casino gambling and casino type devices for 40 years. Even if we argue the short-term economic benefits ($32,000), the long-term social costs impacting our community and families are much more significant. GUAM CONGRESS BLDG. 163 CHALAN SANTO PAPA HAGATNA, GUAM Tel: (671) /7689 I senatortcnelson@guamlegislature.org

21 Senator Telena Cruz Nelson's Sponsor Statement for Bill No (COR) April 20, 2017 Page 2 of2 I thank Speaker Benjamin J.F. Cruz for co-sponsoring this bill with me and I look forward to the Committee's discussion and approval of this legislation, and ret]uest that this statement be included in the Committee Report of Bill No (COR). Ji 'lh'o.u\1a'cj.re! J en.reramente, T ena Cruz Nelson Senator I Min a' Trentai Kttattro N a Lihe.riatttratz Gttahan GUAM CONGRESS BLDG. 163 CHALAN SANTO PAPA HAGATNA, GUAM Tel: (671) /7689 I senatortcnelson@guamlegislature.org

22 Rev. Dr. Albert Alquero Senior Pastor ABUftDAftT LIFE CHURCH 1ls.sem6ffe.s of {jo/ April19, 2017 To: Senator Joe S. San Agustin, Chairman From: Rev. Dr. Albert Alquero Subject: FIRST NOTICE of Public Hearing on Thursday, 20 April CHANGE 1 Buenas Senator Joe S. San Agustin As casino gambling at the 2016 Liberation Day Carnival has continued unabated due to the misuse of permits designed to allow "village fiestas" to operate casinos. I say YES to Bill 50, which seeks to disallow any gambling at or during the Liberation Day carnival and other fair or carnival activities - in Guam., ' BILL No (COR) AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUAM. ~rely, / YR.::t~ rt Alquero, Founder and Senior Pastor -,, P.O. Box 9594 Tamuning, Guam Tel.: (671) a Fax: (671) lifechurcb@guam.net

23 4/21/2017 Guam LegiSlature Mall- t-wa: t-wa: riko::i 1 I'IU lil-t: ar t"udiic near1ng an 1 nursaay,..ru f\pfll.:u1 t Telena Cruz Nelson <senatortcnelson@guamlegislature.org> Fwd: Fwd: FIRST NOTICE of Public Hearing on Thursday, 20 April message Jackie Marati <jackie.marati@gmail.com> Fri, Apr 21, 2017 at 9:30AM To: senato~oessanagustin@gmail.com, senatortcnelson@gmail.com, Jose Cruz <jose.q.cruz@gmail.com> Buenas, Senators- Forwarding testimony IN FAVOR OF Bill 50 from Pastor Albert Alquero. Many thanks. Jackie --- Forwarded message -- From: Albert Alquero <lifechurch@guam.net> Date: Wed, Apr 19, 2017 at 11:30 AM Subject: Re: Fwd: FIRST NOTICE of Public Hearing on Thursday, 20 April 2017 To: Jackie Marati <jackie.marati@gmail.com> Cc: Albert Alquero <lifechurch@guam.net>, judy alquero <judyalquero@hotmail.com>, judy alquero <j udyalquero@yahoo. com> Buenas Jackie, Thank you so much for the update. Please see attachment relative to Bill 50. Unfortunately, my wife and I won't be able to attend the public hearing tomorrow due to prior-scheduled appointment. Please do let us know how we can be of service in the future. Blessings, Pastors Albert and Judy > --Forwarded message -- > From: Office of Senator Telena C. Nelson <senatortcnelson@gmail.com> Date: Thu, Apr 13, 2017 at 12:39 PM > Subject: Fwd: FIRST NOTICE of Public Hearing on Thursday, 20 April 2017 To: "jose.q.cruz@gmail.com" <jose.q.cruz@gmail.com>, > jackie.marati@gmail.com >FYI > --Forwarded message -- >From: Rose Mesa <rose.senatorsa@gmail.com> >Date: Mon, Apr 10, 2017 at 4:38PM > Subject: : FIRST NOTICE of Public Hearing on Thursday, 20 April CHANGE 1 > To: phnotice@guamlegislature.org, "Joe S. San Agustin" < > senatorjoessanagustin@gmail.com> > Cc: Rennae Meno <rennae@guamlegislature.org>, Joe San Agustin< > protocol@guamlegislature.org> > 10 April 2017 > *MEMORANDUM* > To: ALL HONORABLE Senators I Members and Media > From: Senator Joe S. San Agustin, Chairman >Subject: FIRST NOTICE of Public Hearing on Thursday, 20 April *CHANGE > 1* > *Buenas yan Hafa Adai! * > In accordance with the Open Government Law, relative to notices for public > meetings, please be advised that the Committee on Education, Finance, and >Taxation will convene a public hearing on Thursday, April 20, 2017, l.google.com/mail/u/o/?ui=2&ik=9e830a0093&view=pt&search=inbox&th= 15b8db3a14b0662e&sim I= 15b8db3a14b0662e 1/3

24 4/21/2017 Guam Legislature Mail- Fwd: Fwd: FIRST NOTICE of Public Hearing on Thursday, 20 April 2017 beginning at *9:00 am* in* I Liheslaturan Guahan's *Public Hearing Room > (Guam Congress Building, Hagatna). The Committee will hear and accept testimonies on the: > - Referral of Appointment of Jerold W. Filush; Position for Member, University of Guam Board of Regents; Term Length -Six (6) years - Referral of Appointment of Edward B. Palacios; Position for Member, > Cockpit License Board; Tenn Length - One (1) year >- *BILL No (COR)* AN ACT TO ADD A NEW 4124 TO ARTICLE 1 OF > CHAPTER 4, TITLE 5, GUAM CODE ANNOTATED; RELATIVE TO ESTABLISHING MONTHLY > CONSOLIDATED TAX COLLECTIONS REPORTS. > - *BILL No (COR) *AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAJ\1BLING AND POSSESSION OF > GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR >CARNIVAL ACTIVITIES IN GUAM. > Individuals who wish to submit written testimony may address Senator Joe S. > San Agustin, and send it within forty-eight (48) hours to: >- Hand delivery to the Office of Senator Joe S. San Agustin at the Ran > Care Building, 2nd Floor Suite 3, 761 South Marine Drive, Tamuning, Guam > - senato~oessanagustin@gmail.com > All government activities, programs, and services are accessible for people > with disabilities in compliance with the Title II of the American with Disabilities Act (ADA). Should you or interested parties require assistance or special accommodations to fully participate in this public hearing, please contact our office at or via at > joessanagustin@gmail.com. > *Un Dangkolo Na Si Yu'os Ma'ase'* > *Very Respectfully,* > *RoseMarie T. Mesa* > *Office Manager* > *I Mina' Trentai Kuattro na Liheslaturan Guahan * > *(Thirty-Fourth Guam Legislature)* > *Senator Joe S. San Agustin* > *Committee on Education, Finance and Taxation* > *Office:* * <(671 )% >* > * * *rose.senatorsa@gmail.com <rose.senatorsa@gmail.com>* >- > *The Office of Senator Telena Cruz Nelson* > Committee on Housing, Utilities, Public Safety & Homeland Security > *I Mina**'trentai Ku**attro na Liheslaturan Gu**ahan* > 34th Guam Legislature > Guam Congress Building, 163 Chalan Santo Papa, Hagatna, Guam > T: (671) /7689/7696 > F: (671) > senatortcnelson@gmail.com > senatortcnelson@guamlegislature.org > -- > "Our lives begin to end the day we become silent about things that matter." Martin Luther King, Jr. "Our lives begin to end the day we become silent about things that matter." Martin Luther King, Jr. l/u/o/?ui=2&ik=9e830a0093&view=pt&search=inbox&th= 15b8db3a14b0662e&sim I= 15b8db3a14b0662e 2/3

25 4121/2017 Guam Legislature Mail - Fwd: Fwd: FIRST NOTICE of Public Hearing on Thursday, 20 April 2017 bill50_marati.pdf 515K 3/3

26 4121/2017 Guam Legislature Mall - 1 esnmony ::;uommea at April U Hear1ng on tllll ou Telena Cruz Nelson <senatortcnelson@guamlegislature.org> Testimony Submitted at April 20 Hearing on Bill 50 1 message Jackie Marati <jackie.marati@gmail.com> To: senato~oessanagustin@gmail.com, senatortcnelson@gmail.com Cc: Jennifer Louise Dulla <jenniferdulla@gmail.com>, Jose Cruz <jose.q.cruz@gmail.com> Fri, Apr 21, 2017 at 9:28AM Buenas, Senators San Agustin and Nelson: On behalf of Keep Guam Good, here is the testimony submitted yesterday. Kindly keep us apprised of the status of the bill and when it will be brought before the Legislature for voting. Many thanks. Jackie "Our lives begin to end the day we become silent about things that matter." Martin Luther King, Jr. I{ID Testimony Favoring Bill 50 - Keep Guam Good.docx 15K 1/1

27 Supporting Bill No Gerhard Wed, Apr 26, 2017 at 11:55 PM Reply-To: Gerhard To: Cc: Jackie Marati Dear Mrs. RoseMarie T. Mesa Please record appropriately that I support Bill No to remove exemptions for casino gambling during the Liberation Day Carnival and village fiestas primarily for political and religious reasons. Annual Liberation Day celebrations are deeply rooted in Guam's history and current cultural practices. Even those of us who were not born yet in 1944 can well understand and appreciate what liberation from the Japanese occupation meant for the people of Guam at that time. We also understand how different forms of gambling became part of these annual celebrations. However, as time passes, once well-managed and well-regulated cultural practices sometimes transform into or get replaced by profit seeking enterprises, often disguised as some sort of community oriented groups or establishments - like casino gambling during Liberation Day Carnival. Hence we need to continuously learn and strive for societal betterment. We need to recognize that the means of casino gambling do not justify the end of paying for Liberation Day expenses. We need not only celebrate the liberation from Japanese occupation, but also ask about liberation for what. This is why I support the closure of the Liberation Day Casino and why I suggest the renaming of Liberation Day into Liberation-Self Determination Day. In recent years, operators of Casino gambling have increasingly used village fiestas to get permission to run their gambling operation. It is important to note that the Casino is operated in a semi-permanent building on Liberation Day Carnival grounds, not in temporary structures in village communities. The people who operate and make profit from the Casino and the people who gamble have very little or no relations with the village communities in which fiestas are celebrated. Village fiestas are religious celebrations to give thanks and to honor village patron saints. Village fiestas should not be used as excuses for time limited gambling permits to Casino operators. Several times over the past years, the community of Guam has evaluated the benefits and costs of gambling. Every time the people of Guam concluded that the problems of gambling by far outweigh the benefits. Therefore, Bill directs our us toward a healthier, stronger and politically more mature community. respectfully, Gerhard Schwab PhD MSW Professor of Social Work Chair, Division of Social Work School of Nursing and Health Sciences

28 University of Guam Mailing Address: University of Guam - SNHS/DSS UOG Station Mangilao, GU 96923, USA Time: GMT+ 10

29 YIGO MAYOR'S OFFICE "OFFICINAN I TAOTAO" Rudy M. Matanane, Mayor Anthony P. Sanchez, Vice Mayor April 20, 2017 Senator Telena Cruz Nelson Chairperson of the Committee on Housing, Utilities, Public Safety & Homeland Security 34th Guam Legislature 155 Hesler Place Hagatna, Guam Reference: Testimony to "BAN CASINO GAMBLING AT THE LIBERATION DAY CARNIVAL" Dear Senator Nelson: I hereby submit my testimony to oppose Bill No (COR) to Ban Casino Gambling at the Liberation Day Carnival. I would like to emphasize and bring to your attention the following of which why it is necessary to continue casino gambling at the Liberation Day carnival. I am aware of the public's concerns of family values and how gambling has affected the lives of many on our island but we need to look around us. There are many gambling facilities on our island and to this date, is still affecting families. The government continues to give them permits/license to operate but fail to consider how it affects families as well. Where is the public's concern of family value being address if they are allowing these businesses to continue operating? If "casino gambling" is to stop, then all forms of gambling should be ceased to prevent the disruption of "family value." In addition, having an occasional casino gambling is a form of income for our districts. The funds raised from this helps each district with repairs and other village assistance it may need that the budget does not suffice. Also, not having the casino gambling for the Liberation Day carnival will affect the sponsorship of the Mayor's Council of Guam. Alternatives will have to be deliberated to find other sources. Therefore, I humbly request that you reconsider this bill with a broader picture. Thank you in advance for taking the time to absorb my testimony and I hope we can receive a favorable response. Senseramente, Tel: {671) 653-YIGO (9446) & Fax: (671) yigomayorsoffice@gmail.com

30 TESTIMONY SUBMITTED BY KEEP GUAM GOOD IN FAVOR OF BILL 50-34, TO PROHIBIT LIBERATION CARNIVAL AND VILLAGE FIESTA CASINO GAMBLING Buenas, Honorable Senators, Ladies and Gentlemen. My name is Jackie Arriola Marati, and I am the spokesperson for Keep Guam Good, a coalition of community groups against gambling on Guam. We are sincerely grateful to Senator Telena Cruz Nelson and Speaker BJ Cruz for their courage in introducing this bill. We applaud your intentions and support Bill 50. We are here to speak for the community who has voted out gambling 5 times in 8 years. This is not about the Liberation Day Carnival, and it is not about our Mayors, for whom we have the deepest respect and gratitude. The story about casino gambling on Guam is long, drawn-out and frankly, exhaustive. There is no subject that causes more eye rolls and sighs as casino gambling in Guam. And I believe, Honorable Senators, ladies and gentlemen- that it boils down to a lack of respect for the people's voice and disrespect for their will. To understand why, let's trace how our people have spoken. In 2004, an initiative backed by Citizens for Economic Diversity to establish up to 10 casinos in hotels was introduced and soundly defeated in spite of a strong local effort by business to get this referendum passed. The verdict: NO In 2006, the mother of all initiatives, Prop B, entered the arena to attempt to establish a casino at Guam Greyhound, sponsored by the Guam Tourism Revitalization group. After millions of dollars spent, numerous lawsuits and hundreds of people employed to get the initiative passed, this initiative too lost. Another NO to gambling. 14 months later, in January 2008, during the special election to replace the late Speaker Tony Unpingco (for whom this chamber is named), a second Guam Greyhound initiative was introduced and again defeated, sponsored by "Better Jobs for Guam." Another time = NO 10 months later, during the election of 2008, Greyhound (under the name Responsible Gaming) tried for the third time to legalize gambling at their Greyhound track and failed. This time, if you will all remember, The Guam greyhound owners fired employees and released 100 greyhounds, and Guam made national headlines for its "cruelty to animals" during that incident. 4 times in 4 years- NO Finally in 2012, a group known as the Guam Japan Friendship Village/Legalization of Bingo Act attempted again this time to legalize bingo at Guam Greyhound, their fourth effort. This initiative was so far under the radar that the Pacific Daily News forgot to include them in their list of items on the ballot. Interestingly, the Mayors Council of Guam voted not to support this initiative. This measure did not garner even 1/3 of all votes, and was the largest margin of defeat suffered by any gambling initiative, losing in every single village! That is 5 times in 8 years!!!

31 And why do I know all these details and dates? Because my mother (whose death we remember 15 years ago) fought consistently to protect our families and our society from the risk and scourge of this horrible disease, gambling. My siblings and I worked to defeat each and every initiative. For 5 times in 8 years, lawsuits were filed, supporters were harassed, and threats are made against our lives and those we love. So is this a personal cause? People of Guam know- when it's your family, the cause is very personal. Five times in 8 years! And so when groups seek to misuse and misapply what are temporary permits, and those groups claim that they are doing it for the people, I wonder- WHO ARE THEY LISTENING TO? After 5 times in 8 years, who is being listened to? Are the voters being listened to? Is their will being respected? Do voters actions matter? Fan ekungok yan en respeta ham! Please vote YES on Bill 50. Thank you.

32 4/LO/LU-1 f "'amoung vv1m Amenca s Meann-!-'acme ;:,1anaara Pacific Standard (Follow) Stories frorn the staff of-and contributors to-the award-winning Pacific Standard. Sep 16, min read Gambling With America's Health by Elaine Meyer (Photo: The 2x2 Project) Publicly, Scott Stevens, a chief operating officer of a company in Steubenville, Ohio, was a well-regarded member of his community. A married father of three, he was active in his local Catholic church, involved with high school sports teams, and helped develop parks in the area. Privately, Stevens was addicted to gambling. First exposed to slot machines at a trade show in Las Vegas in 2007, Stevens became a regular slot player at the Mountaineer Casino, Racetrack, & Resort, about 30 minutes away in Chester, West Virginia. By 2010, he had embezzled $7 million from his employer to gamble, and when they found out, he lost his job. Stevens continued to gamble secretly for the next 10 months, going to Mountaineer nearly every day, drawing money from his family's savings, his 401(k), and his children's college fund. On August 13, 2012, that money ran out. In a suicide note to his wife, he wrote: "I know you don't believe it, but I love you so much. I have hurt you so much. Our family only has a chance if I'm not around to 1/')')

33 4/LO/LU'I/ l:lamo11ng vvnn Amenca s Meann-!-'acme ;:,ranaara bring us down any further." That evening, Stevens asked his 13-yearold daughter to bring him his hunting bag from the attic. He drove to a local park he had helped develop and called When the sheriffs arrived, he shot himself. "If it can happen to a guy as smart as he was, then it can happen to anybody," said Indianapolis attorney Terry Noffsinger in a talk last November at Harvard Law School. Noffsinger, with other attorneys, is representing Stevens' widow Stacy in a lawsuit filed last month against Mountaineer Casino, its parent company MTR Gaming Group, and slot machine maker International Game Technology, alleging they are liable for her husband's suicide. The suit accuses both the casino and the slot designer of using predatory and deceptive tactics to profit from people with gambling problems, like Scott Stevens. "Mountaineer Casino knew, or should have known, that the condition of disordered gambling, especially slot machine addiction, is associated with severe adverse health and other consequences for individuals and their families. Not only are gambling addicts like Scott Stevens liable to literally gamble away everything they own and end up in crippling debt, but also to become suicidal at far higher rates than the general population and even the population of persons addicted to substances such as illegal drugs and alcohol," the suit states. Although the suit's success is not assured-the few other cases in this area have not succeeded-it is part of a growing movement of activists, academics, lawyers, and former gambling addicts who are trying to spotlight the health, economic, and social costs of legal gambling. This group believes the gambling industry preys upon vulnerable people, including low-income individuals, youth, and problem gamblers and that gambling availability is linked to larger societal problems like crime and economic inequality. For its part, the gambling industry points to a record of funding research into gambling addiction and efforts to educate the public about problem gambling. They maintain that they offer a fun activity that most people can do without serious consequences. httnc //ncm ~n 1""1"\rY'I/n-::lrn hli nn-\uith-~mo.-ir"~-c-ho~lth_"-?1 ()Q()rlo~ffo?I??

34 4/LO/LU.If ~.::>amonng vv1m Amenca s Hea1m- r-acmc ;::,ranaara The opening of new gambling venues shows no signs of slowing down, despite the planned closing of four casinos in Atlantic City and financial problems for casinos in other states. Last fall, New Yorkers approved the building of up to seven casinos. Many other states are in various stages of building casinos. Some in the gambling industry are trying to legalize online gambling, which is currently allowed in only three states, Nevada, New Jersey, and Delaware. A debate over the social and health costs of legal gambling has largely been sidelined even as availability has expanded dramatically in the last 25 years. This is not because of a lack of merit, say experts and activists, but because of the political power of the gambling industry. They allege that the industry has employed tactics in the same spirit as those of tobacco companies, which for many years misled consumers about the addictive properties of cigarettes and advertised to young people and other vulnerable consumers. According to Les Bernal, the national director of Stop Predatory Gambling, a Washington, D.C.-based non-profit, "This is one of the biggest public health issues in America today that no one has been paying attention to." A few experts predict that as stories of gambling addiction become more common, suits like that of Stacy Stevens will increase and could even succeed, as tobacco lawsuits did. "Ultimately gambling will be linked to the increase in social costs, gambling will be linked to the problems it creates, just like smoking was ultimately linked to cancer," says Dr. Earl Grinols, a professor of economics at Baylor University. "It can take a while." In the world of gambling, the most addictive property is electronic video gambling machines, often slots, which bring in 70 to Ss percent of the revenue for casinos. In some states, electronic video terminals are even available in other venues, like restaurants and bars. The machines do not typically have warning labels or cut offs for heavy users. Casinos aggressively market to frequent patrons, giving them complimentary flights, hotels, and other perks. Meanwhile, the success of state voluntary exclusion programs where problem gamblers sign up to ban themselves from casinos is unclear. '>./??

35 4/LO/LU"I f ~.:>amoung vvnn Amenca s Hea1m-!-'acme ::>Ianoara Today's slots are not the old lever-operated "one-armed bandits" but video game-like terminals that keep users playing by deliberate design, according to Dr. Natasha Dow Schull, an associate professor in the program of science, technology, and society at the Massachusetts Institute of Technology and the author of Addiction by Design: Machine Gambling in Las Vegas. "The particular addictiveness of modern slots has to do with the solitary, continuous, rapid wagering they enable. It is possible to complete a game every three to four seconds, with no delay between one game and the next. Some machine gamblers become so caught up in the rhythm of play that it dampens their awareness of space, time and monetary value," writes Schull in a New York Times commentary. "A lot of people think it's a tax on the stupid," recovering gambling addict Kitty Martz told the Oregonian. "Really, we're behaving exactly the way the machines want us to." The idea that gambling lends itself to addiction like drugs or alcohol has taken some time to be acknowledged. Until the 2013 publication of the fifth edition of the Diagnostic Statistics Manual, or DSM-s, problem gambling was classified as an "impulse control disorder" in the same category as pyromania and kleptomania, even though most clinicians who treated problem gamblers recognized it as an addiction, says Dr. Silvia Martins, an associate professor of epidemiology at the Columbia University Mailman School of Public Health. These gamblers exhibit many of the same problems as other addicts. "Everything you see with substance abuse you can make an analogy to gambling problems," Martins says, citing family strife, financial hardship, and struggles with depression or anxiety. R To gamble legally 40 years ago, one had to travel to Nevada, go to a racetrack, or live in one of the handful of states that offered lotteries. In most towns, the closest one came to a betting game was playing charitable Bingo at church. Video slot machines had not yet come to market. For most Americans today, a casino is just a car ride away. There are about 1,400 of them in 39 states, and 43 states sponsor lotteries with AI??

36 4/LO/LU.I/ '=>amoung vvlln Amenca s Hea!ln -!"'acme ;:,tanaara games that are recognizable even to non-gamblers, like Mega Millions, Powerball, Pick 10, and instant scratch off tickets. In advertising to citizens, states use slogans like, "Hey you never know," "Give your dreams a chance," and "Believe in something bigger." Hawaii and Utah are the only states that offer no forms of legal gambling. Casinos represent a substantial part of the nation's economy and enjoy support from members of both political parties. In 2012, the industry took in $37 billion in gross revenue, employed 332,075 people, paid $13 billion in wages, and contributed $8.6 billion in taxes, according to the American Gaming Association. Many casinos are not just places to play blackjack and slots but to eat or take in live music and comedy acts. In this environment, gambling addiction is often considered a small cost, one brought upon by the individual unwise gambler. "They think that it's an easy, painless way to raise revenue but they don't see the other side of it," says Arnie Wexler. Wexler quit gambling over 45 years ago after a nearly three-decade addiction and has since served as executive director of New Jersey's Council on Compulsive Gambling. He also runs counseling services for compulsive gamblers with his wife, Sheila. According to a conservative interpretation of the available research by the National Center for Problem Gambling, 1.1 percent or 3 4 million Americans have a pathological gambling disorder and two percent or 6.2 million engage in problem gambling, a less severe form of gambling addiction. (The term problem gambling is often used to refer to both problem and pathological gambling.) Internationally, prevalence is as low as o.s percent of the population in Denmark and the Netherlands, and as high as 7.6 percent in Hong Kong, according to a 2012 review for the province of Ontario. Though problem gamblers are a minority of visitors to casinos, their spending accounts for anywhere from 35 to so percent of the revenues, according to several studies summed up in a paper by the Institute for American Values, a non-partisan think tank that focuses on family and social issues. C:.l??

37 4/LO/LU'II ~.;~amonng vv 1m Amenca s Hea1m -!-"acme '=>tanaara Neuroscientists have found commonalities between the brains of gambling and drug addicted people, like increased impulsivity and lower levels of activity in a region of the brain's reward system, which leads people to seek bigger and potentially dangerous thrills. But it is not clear from this research when or how someone becomes addicted to gambling. Compared to other nations, there has been relatively little epidemiologic research on rates of problem gambling in the U.S. The existing studies find that problem gambling increases with proximity to casinos. The federal government's 1999 National Gambling Impact Study found that areas within so miles of a casino had twice as high a rate of problem gambling as those within 250 miles. The presence of a casino within 10 miles of a survey respondent's home was positively related to problem or pathological gambling, according to a 2004 study by the University of Buffalo's Research Institute on Addictionspublished in the Journal of Gambling Studies. "Basically what we've learned is that as with many other ldnds of environmental exposures, there typically is an increase in the prevalence rate of problem gambling in the wake of major introductions of new forms of gambling, whether it's lotteries back in the 198os and 1990s or casinos in the 1990s and 2ooos," says Dr. Rachel Volberg, a research associate professor of epidemiology at University of Massachusetts-Amherst and a researcher for the Massachusetts Gaming Commission. Volberg has found that rates of problem gambling began increasing during the most rapid expansion of gambling opportunities in North America and in Australia. Yet she says problem gambling rates seem to level off after awhile. A study by the Research Institute on Addictions that has not been published yet found that rates of problem gambling did not continue httnc //ncm '=In f"f'\n"\ /n'.:lrn hli nn-\uith-om.o.rif''=l-c-ho'=llth_t:\')1 ()Q()rla~ffo

38 4/LO/LV.If \:lamonng vv1m Amenca s Heann- r-acmc ;:,mnaara to rise between despite greater opportunity to gamble. Principal investigator Dr. John Welte, senior research scientist in psychology at the University of Buffalo, says it is not clear why, but he says it could be a result of the economic crisis. The National Center for Responsible Gambling, or NCRG, is the charitable arm of the gambling industry's trade association, called the American Gaming Association. NCRG cites a few studies that it says show problem gambling has not risen since the 1970s. After a casino moves in, problem gambling may become more widespread initially, but after a while, people "adapt"-they become more aware of the risks, seek treatment, or simply lose interest, says Christine Reilly, the senior research director of NCRG. This is called an "adaption effect." But prevalence studies do not tell the full story, says Dr. Stephen Q. Shafer, the chairman of the Coalition Against Gambling in New York. "One of the fallacies is that, let's say you assume that your prevalence statistics are absolutely correct and you show that the prevalence of pathological gambling has not risen. It was, say, five years ago 1.1 percent. Last year it was 1.2 percent. What that forgets is that the prevalence is a pool out of which people move and into which people come, and looking at prevalence compared to time one and time two, you have to account for the people who have recovered, died, moved away." For instance, a prevalence study conducted in 2oo8 would have counted Scott Stevens, but one in 2013 would not have. For this reason, there need to be studies that use more rigorous epidemiologic methods, says Shafer, who is also a retired clinical professor of neurology and epidemiology at Columbia's College of Physicians & Surgeons and the Mailman School. He has pushed to get New York State to commission such a study, but the state's health department, the legislature, and the gambling commission have shown no interest. Funding for gambling addiction research in the U.S. is about onetwentieth of funding in Australia and Canada, where gambling availability has also risen significantly in the past several decades, according to Volberg. Within the National Institutes of Health, there is an institute for research on alcohol disorders and an institute for httnc: //nt::!m ~n f"t"\rn /n'=lmhli nn-\uith-~rnorif'~-c-ho'=llth_t::..')1 f\clf\ria~ffo 7/??

39 l:>amoung vvnn Amenca s Hea1m- t-'acmc -=>lanaara research on drug addiction, but no institute for general addiction. Investigators who study problem gambling typically have to propose to look at it in conjunction with drug or alcohol use in order to win grants. The NCRG is the only private funder of gambling addiction research in the country. According to Reilly, they fund research by top scientists at universities like Caltech, Duke, and Stanford, which are published in peer-reviewed journals. "We are funding some of the best people in the country, people who will lead us and force the issue at a national level," says Reilly. has public n""' " "'''U addiction. The majority of the NCRG's funding goes to research based on a "disease model" -which investigates what goes on in the brains of individuals addicted to gambling-rather than the public health model, which looks at how availability affects population rates of problem gambling and potential social costs. Both the disease model and the public health model "have points of truth, and they're not mutually exclusive," says Welte. But he adds, "If I were the gambling industry, I would want to fund people who had the disease point-of-view... because [they are] putting the source of problem gambling between the ears of the gambler." According to Reilly, the disease model is more practical because it can lead to treatments and that it is less prone to the flaws of survey research. "To me it seems kind of silly to spend time and money on an issue that is extremely difficult to research, because you can't count on people's memory," she says. But it is not in the gambling industry's interest to have good research conducted on the social and economic costs of casinos and other forms of gambling, says Grinols. He points out that the federal government's 1999 ~ationa!_qambling Im12_9-ct S!_l! qy_c:ommi~sion recommended a moratorium on further gambling expansion until more research could be done on the economic and social costs and benefits. "No research of the type and focus hoped for by the AI??

40 \.:Jamoung vv1m Amenca s Heann- t-'acmc ;:,ranaara Commission has been forthcoming since. That's because the gambling industry has done what it could to question these studies and has not itself funded such studies," says Grinols. "The whole conclusion of the Commission has been ignored and in fact thwarted by the failure of money to be available for good research." Dr. John Warren Kindt, a business administration professor at the University of Illinois whose research looks at the social and economic costs of gambling, calls what NCRG funds "pabulum research designed not to hurt the gambling industry and to misdirect the debate." In response to such criticisms, Reilly is adamant that the NCRG has a totally independent review board, which she says mimics the structure of the National Institute of Health and does not interfere in the work of its researchers. As for self-reporting, there are ways to validate responses. Dr. Robert Williams, a professor of addiction counseling at the University of Lethbridge in Alberta, Canada, has compared what respondents report they spend on gambling to actual gambling revenue. He says the more reliable studies are those in which the total of the revenue reported by participants is closer to the total revenue made by the gaming industry. Williams points out that self-reporting may also underrepresent problem gamblers, who would be more likely to have their phone disconnected. E Gambling availability has other public health ramifications beyond addiction. It may exacerbate economic inequality, which has a strong relationship to health. It levies regressive taxes which take a larger share of income from lower- than from upper-income Americans. If taxes on gambling revenues substitute tax increases on incomewhich are progressive-the tax structure in a state becomes even more regressive. And those who spend money on certain forms of gambling are more likely to be low-income. There is "a strong positive relationship" between state lottery sales and the poverty rates, according to a 2007 study in the American Journal of Economics and Sociology by economists at Cornell University that looked at data over 10 years. The most typical lottery player is a black, male, high school dropout making less than $w,ooo a year, according to a 1999 report to the National Gambling Impact Study Q/')')

41 4/LO/LU"If l:jamo11ng vv1rn Amenca s neann-!-'acme ;:,lanaaro commission. Problem gambling is significantly worse in economically disadvantaged areas according to two studies from 2013, one by Welte and his colleagues and another by Martins and her colleagues. And the presence of a casino is associated with rises in bankruptcy filings, according to a 2005 study from Creighton University. Scratch-off lottery tickets. (Photo: The 2x2 Project) While casinos may bring new jobs when they open, most are lowpaying service work. The national median wage in the gambling industry is $10.76 per hour. While better than some service jobs, it is less than the $16.87 hourly median wage for all industries, according to 2013 data from the Bureau of Labor Statistics. And rather than boosting a local economy, casinos often draw business away from other food and entertainment venues. Many casinos are losing patrons to newer competition in neighboring states, straining state budgets and threatening local economies. When casinos lose money or fail, the repercussions are significant. Delaware is spending hundreds of millions to keep struggling casinos afloat. In Atlantic City, several casinos plan to close by the end of the month, including the Revel, a two-year-old, $2-4 billion casino, entertainment, and conference center that was supposed to buoy the city's flagging economy. The closures leave thousands of jobless people in a city that already has one of the highest unemployment 111/??

42 4/LO/LU-If ~.::>amoung vvnn Amenca s Healm-1-'acmc ;::,mnaara rates in the country at over 15 percent as of April 2014, a violent crime rate six times the rest of New Jersey, and 29 percent of its population in poverty-a seven percent increase since 1974, two years before New Jersey voters legalized gambling. Although these statistics do not prove that the city's gambling economy caused its problems, they do call into question claims by politicians and developers that casinos are an engine for economic growth. Nevertheless, some New Jersey politicians and business leaders are now talking about opening a new casino-or four-at the Meadowland Sport Complex in Bergen County, New Jersey. Tribal lands that have casinos have seen improvement in jobs and county-level mortality rates, <l~~()~cii!lgt()<l?:<)()?:st1ldy from the National Bureau of Economic Research. Yet these communities still see more bankruptcy, violent crime, and auto thefts and larceny after a casino opens. Legal gambling is also linked to social problems like rises in crime and risky behavior in youth. Counties where casinos have opened have seen rises in the number of rapes, robberies, aggravated assaults, burglaries, larcenies, and auto thefts, compared with counties without casinos, according to a study by economists Grinols and Dr. David B. Mustard, which looked at county FBI data from 1977 to Because children are now growing up in an environment where gambling is so widely advertised and available, they could be especially vulnerable. Youth are at greater risk for problem gambling than adults, according to a 2007 study from Canada. Two percent or about 750,000 teens ages 14 to 21 described gambling with three or more negative consequences in a national survey by Welte and colleagues in Another 11 percent gambled twice or more per week, which is considered frequent. Teen boys who gamble are more likely to become fathers before age 20, especially those who problem gamble, according to a study by Martins. African-American teens who are problem gamblers are more likely to have sex and get arrested at a younger age than those who don't gamble. Teens who had depressive symptoms early in adolescence are more likely to have gambling problems later in adolescence, according to another Martins study from /??

43 \..:Jamoung vvnn Amenca s Healtn -!-'acme ::>tanaara gambling culture." He adds: "The people in southeastern Connecticut were in no way ready for the casinos." In Massachusetts, citizens are campaigning to repeal a deal that allows for MGM Resorts International to build an $8oo million casino in the economically depressed town of Springfield. "We see this as very much a perpetuation of income inequality, and the implications that income inequality has on public health-that people stay in poverty basically, stay under-compensated. It's the transfer of wealth from people who don't have money to people who have abundant resources," says Steven Abdow, a senior staff member of the Episcopal Diocese of Western Massachusetts. "This would be intentionally bring[ing] in a product that destroys lives." Abdow is working on a campaign to oppose the MGM casino. Once viewed as a way to revive the city's dwindled fortunes, the casino's fate is now in jeopardy. In June, a judge ruled in favor of ballot measure that would allow the citizens of Massachusetts to repeal a 2011 law that authorized casinos in the state. Tyre, New York, is a town of less than 1,ooo people 270 miles northwest of New York City. The town's website boasts of a community that "strives to maintain its rural flavor," welcoming visitors to stop by and visit the Montezuma National Wildlife Refuge and the Erie Canal. Last December, residents learned that a Rochesterbased real estate company called Wilmorite was bidding to open the Lago Resort and Casino on agricultural land, across from an Amish farm. knows everybody, a ne,nn;re you know are affected -even directly-through "I grew up my whole life in this area. A casino certainly is not what you anticipate showing up on your doorstep," says Jim Dawley, a resident whose property borders the proposed spot. Dawley and his wife, who own and run a small manufacturing company, and two friends formed an organization called Casino Free 1~/??

44 \.::lamoung vv1rn Amenca s nealln- t-'acmc ;:,mnaara Former U.S. Representative Robert Steele has observed the casino economy at work in southeastern Connecticut, the district he represented from , which in the early '9os became home to both Foxwoods and Mohegan Sun Casinos. "They became almost instant successes and the two biggest casinos in the world," says Steele, who has written a novel, The Curse, which is inspired by the story of the two casinos and the tribes behind them. With Atlantic City as their only competition in the Northeast United States, Foxwoods and Mohegan Sun drew about 6o percent of their customers from out of state and created 2o,ooo jobs. But soon came problems no one seems to have anticipated. Drunk driving arrests in nearby Norwich more than doubled, and annual calls to the local police department went up fourfold, according to Steele. There was a sharp spike in the number of people who sought treatment for gambling addiction. The rate of embezzlement increased 400 percent, according to a report from the state. Steele's own tax collector went to prison in 2001 for embezzling money from the town to gamble. Much of the promised employment was in low-paying service jobs, sometimes part-time and often filled by non-english speaking workers who came from outside the area. This influx put pressure on local housing and social services. The local school system gained 400 children who collectively spoke 31 different primary languages, requiring them to create an "English for speakers of other languages" program. Teachers observed value changes in their students, says Steele. "[They] say, 'we try to teach the kids the way to succeed in life is through hard work. Then the casino culture comes in and says, 'you hit it big, you hit the lottery. You hit the payoff.'" Today, revenue from Connecticut's casinos is down 35 percent since its high point of Ultimately, says Steele, who used to have a property abutting Foxwoods, the casinos created a "pervasive 1')/')')

45 4/LO/LU.If ~.;~amo11ng vvnn Amenca s nea1m-!"'acme ;:,mnaara Tyre to oppose Wilmorite's plans. "When everybody knows everybody, a good portion of the people you know are going to be affected-even if not directly-through broken homes, bankruptcy, the whole gamut," says Dawley. Over 200 residents have signed a petition against the casino, but members of the town board are supportive of Wilmorite, which is promising multi-million dollar revenues. The Dawleys are not letting up, even though they are new to activism. "This is so far outside of my normal realm, it's unbelievable. I have a little manufacturing business out in the woods. I've been involved in our church and things like that but as far as any political-rooted opposition, this is our first time." E In the court case over the Massachusetts casino deal, an organization called the Public Health Advocacy Institute filed a friend-of-the-court brief that made a public health argument against the gambling industry. "Legalized casino gambling causes devastating effects on the public's health, including not only the gambler but also their families, neighbors, communities and others with whom they interact," the brief reads. Electronic gambling machines "are designed to addict their customers in a way that is similar to how the tobacco industry formulates its cigarettes to be addictive by manipulating their nicotine levels and other ingredients." "Mirroring the tobacco industry's strategy of creating scientific doubt where none truly exists, the casino industry has co-opted and corrupted scholarship on the effects of gambling through the use of front groups that funnel money to beholden scientists who are able to sanitize its origin," the brief continues. "The commercialization of a dangerous product that threatens both individual and public health has been called an 'industrial epidemic,"' the brief continues, citing a 2007 paper published in the journal Addiction by Drs. Rene I. Jahiel and Thomas F. Babor. This is an epidemic "driven at least in part by corporations and their allies who promote a product that is also a disease agent." 111/??

46 ~.:>amo11ng vvnn Amenca s Heann-!"'acme ~mnoara Protesters opposing the Lago Resort and Casino. (Photo: Casino Free Tyre) The brief argues that the citizens of Massachusetts have an interest in regulating gambling the way they have regulated cigarettes. Given the power of the gambling industry and the dependence of states on gambling revenues, winning legal damages and regulating availability may presently seem like a pipe dream in the U.S. However, other countries employ harm reduction strategies in casinos to intervene on potential problem gambling, according to a 2011 report from the Cleveland Plain Dealer. In Holland, computers identify anyone who visits a casino more than 15 times a month as having a gambling problem. In the United Kingdom, casinos have to display the odds of winning on slot machines. And in Australia, there are limits on playing speeds and betting amounts. The underlying principle behind this is articulated by Williams: "If provincial governments are going to make gambling available to their citizens, then concerted efforts are needed to prevent problem gambling, to effectively treat gambling addiction, and to minimize the amount of gambling revenue that comes from problem gamblers." People with gambling problems tend to elicit little sympathy. They are seen typically as exercising bad judgment when it is known that the 1 ;/??

47 4/LO/LU.If \.::Jamoung vv1m Amencas Mealm-1-'acmc ~1anaara "house always wins." They have often hurt people they are closest to, both financially and emotionally. Former gambling addicts readily admit to their flaws. But, like most people, they typically started gambling because it was available, entertaining, and provided a potential if unlikely monetary reward. However, unlike most people who gamble, they became "hooked." That's how Catherine Townsend-Lyon speaks of her gambling addiction. She began playing video lottery terminals at delis and restaurants near her home in Grants Pass, Oregon, sometime after they were introduced in the 1990s. She became obsessed with a game called Flush Fever and soon began playing before and after work and during her lunch hour. She lied to her husband about her whereabouts and started secretly gambling their mortgage payments. She stole from the collection company she worked for and sometimes wore bladder control underwear so she wouldn't have to get up to use the restroom while playing. When she lost money, she played to win it back, and when she won, she played to win more. In an extreme moment, she skipped the funeral of a close friend to drive 40 miles to an Indian casino so she could win enough money to prevent her home from being foreclosed. Instead, she lost everything. She drove home in tears and slit her wrists. a or "It's like a battle you have with yourself with the triggers and the urges and the obsessiveness. You don't even have to be in action or sitting behind a machine because you're constantly thinking about: When am I going to gamble? When am I going to win or lose? It just compounds. It's exhausting. It's never-ending," says Townsend-Lyon, who, after seeking treatment several times, has managed to stay away from gambling for the last seven-and-a-half years. Townsend-Lyon says she turned to gambling at a difficult time in her life. With her husband frequently traveling for work, she found herself bored and looking for a way to fill the time. She had undiagnosed bipolar II disorder and had been sexually abused when she was younger but had not been raised to know to seek therapy. "I wasn't a drug person or an alcoholic or anything like that, although I did drink 1t=:/??

48 4/LO/LU-11 l:lamoung vv1m Amenca s Heann- t-acmc ;::,mnaara more when I gambled. And because I was gambling, that was my coping skill. That's what I was using to escape it, those feelings. I couldn't stuff them away anymore. I would just use gambling to escape, not feel, zone out, you know what I mean?" she says. She published a book last year about her former life, called Addicted to Dimes (Confessions of a Liar and a Cheat). What troubles her is how easy it is for people in her position to gamble. She didn't have to fly to Nevada or even drive to a casino in state. The video poker and slot machines she played, which are sponsored by the Oregon State Lottery, are allowed at bars, restaurants, and delis. "[I]f these machines weren't in the bars and delis, then I would not be gambling. It's that simple for me," says a 33-year-old man quoted in a recent series on the state lottery by the Oregonian. He estimates he has lost $1s,ooo over 12 years from gambling. "That may sound like an excuse, but 'out of sight is out of mind."' For people who are trying to recover from gambling addiction, it can be difficult to find help. Calls per month to the National Problem Gambling hotline are over two-and-a-half times what they were 14 years ago, from 9,642 in 2000 to 24,475 in 2013, according to Keith Whyte, executive director of the National Council on Problem Gambling. Yet funding for treatment centers, hotlines, and programs to prevent gambling addiction is minimal, says Martins. Funding for substance abuse treatment is about 281 times greater at $17 billion than public funding for problem gambling, at $6o.6 million, although substance use disorders are only 3.6 times more common than gambling disorders, according to a 2013 survey by the Association of Problem Gambling Service Administrators and Problem Gambling Solutions. Just a little over half of the so U.S. states have someone whose full-time job is to administer problem gambling services, according to the same survey. By comparison, there are 113 lottery employees in Iowa and approximately So in Rhode Island. In several states legislators have cut gambling treatment funding or seen declines as a result of decreases in gambling revenue, which sometimes funds such programs, according to a Wall Street Journal report from Gamblers' Anonymous, a 12-step program modeled after Alcoholics' Anonymous, is the most widely available and used treatment in the 17/')')

49 4/LO/LU.I f ~.:Jama11ng vvnn Amenca s Heann -!-'acme '=>Ianaara U.S. Members admit they are powerless over their gambling addiction and embark on changing their character through group meetings and the support of a "sponsor" or older mentor in the group. Little research exists on the efficacy of Gamblers' Anonymous. A study from 1988 found that only 7.5 percent of members had abstained after oneyear, and nearly a quarter of members did not go to a second meeting. However, those who regularly attend Gamblers' Anonymous say they benefit significantly. As with any kind of addiction, there is no pill for treating problem gambling. Medication and therapy may be used with varying success to treat a related psychiatric illness like depression or bipolar disorder. Moreover, a small number of problem gamblers seek treatment. For these reasons, a public health approach, which would favor limiting the "exposure" of gambling to prevent addiction from occurring in the first place, is compelling. It is the same as the argument to tighten access to prescription opioids in order to prevent people from becoming hooked. At a Gamblers' Anonymous meeting in New York in August, about 65 people, mostly men, are celebrating one member's five-year anniversary of abstaining from gambling. He gets to choose the topic for the night, and he picks "starting over." Other members stand up to say that adhering to the Gamblers' Anonymous program has fundamentally changed them. They have gone from being selfish and unable to make mature decisions to being better spouses, parents, friends, and members of society. They talk about small triumphs, their families, jobs, illness, and making amends with the people they hurt and stole from during their addiction. "I think it was known to pretty much everyone in this room that I was an asshole. And I think I have become a decent member of society," says a man in his early 30s who has been abstinent for 10 years. 1A/??

50 4/LO/LU~I f \.:Jamoung vv1m Amenca s neann-t-'acmc ;:,1anoara Another man echoes this sentiment. "I was anything but a good citizen," he says. He has been abstinent for over 22 years, but like many others in this room, attends meetings on the Gamblers Anonymous principle that former addicts are always in recovery. "It's not just starting over, we still have to own our past. We have to settle up with people as best we can." When his mom passed away, he says he was grateful that he could access his emotions-not something he could have done in his gambling days. "I can say without a doubt, gambling has ruined my life," says another member. He has gone to Gamblers' Anonymous for eight years but has had relapses, and it has been 201 days since he last bet. "Abstinence is for real this time." Compulsive gambling is often viewed as an addiction to money, but 9:C:l!P:~l~E~'--~~J:"l~~~-~-~~i-~~~~ it is an emotional rather than financial disease. The addicted person "wants to escape into the dream world of gambling" and "finds he or she is emotionally comfortable only when 'in action."' But it doesn't end up being much comfort, say formerly addicted gamblers who speak of how lonely their life was then. Dr. Bruce K. Alexander, a psychologist and professor emeritus at Simon Fraser University in British Columbia, believes the loneliness experienced by those with gambling and other addictions has a strong social dimension. In his book, The Globalization of Addiction: A Study of the Poverty of the Spirit, he says: "A free-market society is magnificently productive, but it subjects people to irresistible pressures toward individualism and competition, tearing rich and poor alike from the close social and spiritual ties that normally constitute human life. People adapt to their dislocation by finding the best substitutes for a sustaining social and spiritual life that they can, and addiction serves this function all too well," he says. Bernal of Stop Predatory Gambling believes that our nation's dependence on gambling reveals a deeper civic problem. "What we incentivize as a government shapes the national character," he says. "We look at the greatest generation, we encouraged people to buy savings bonds, in the Great Depression. After World War II, we had the highest savings rate in modern American history because the 101??

51 ~c>amoung vvnn Amenca s Heann- t"'acmc ;:,mnaara government encouraged Americans to save. Today, half of Americans don't own any assets." Terry Noffsinger, the lawyer for Stacy Stevens, admits that it has not been easy to make the legal public health case against gambling. Neither of the two cases he has represented has won in court, and one even provoked the Seventh Circuit Court of Appeals to threaten to sanction him for filing a frivolous claim. But he says the tide is turning. He has a conference call with a group of lawyers across the country about once a month to discuss the issue. Last November a group of Harvard Law students published a white paper making the case for legal action "to protect problem gamblers from the predatory behavior of casinos, including legislative reforms, tort litigation, regulations, and public policies." A couple of well-known trial attorneys have joined him on the Stevens suit, including Sharon Eubanks, who was lead counsel on the U.S. case that ended in a judgment in 2oo6 that the nation's big tobacco companies fraudulently covered up the health risks of smoking and marketed to children. The Stevens case also makes product liability claims that the slot machines from which casinos draw so much revenue are intentionally designed, manufactured, and distributed to hurt people. Such claims have never been tried before. "This is a blockbuster case. There are other cases that are starting to come out of the woodwork. The courts are ready to look more favorably upon addicted gamblers," says Kindt of the University of Illinois. Kindt publishedseveral academic articles in the early 2ooos outlining the legal justification for mega-lawsuits against the gambling industry, similar to those which states, individuals, and classes of people filed against Big Tobacco. In his Harvard talk, Noffsinger said he has had 100 or more people call him for help, many suicidal, nearly all of whom he has had to decline to represent. One of the calls came several years ago from a Boeing employee in Seattle who begged him for legal assistance. She had lost all of her money gambling, sold all of her furniture, and was ready to end it all. When Noffsinger told her he couldn't represent her, she said she had nothing left to live for. Alarmed, he referred her to a lawyer friend in Seattle who found her counseling. About a year ago, she called Noffsinger and thanked him for saving her life.?f\/??

52 4/Ltl/LUJ I t:>amoung vvnn Amenca s Heann- t-'acmc ;:,ranaara "Somebody needs to do something... it may not be me." Noffsinger told the Harvard students. "It's going to be an uphill battle, but at the top there's going to be a great big flag to wave." This post originally appeared on The 2X2 Project as "Gambling With America's Help?"?1/??

53 4/Lf/LU"If ~.:om au- r-wa: L,arrecuon version or resumony on!jill NO. ou-,j4 t L,Ut<J. Catherine Leon Guerrero <cathy.senatorsa@gmail.com> Fwd: Correction version of testimony on Bill No (COR). 1 message Joe S. San Agustin <senatorjoessanagustin@gmail.com> To: cathy.senatorsa@gmail.com, Rose Mesa <rose.senatorsa@gmail.com> Wed, Apr 26, 2017 at 7:45AM Cathy, Please print out this attachment and include it with the Bill committee report. v/r Rose Forwarded message From: Office of Senator Telena C. Nelson <senatortcnelson@gmail.com> Date: 25 April 2017 at 15:03 Subject: Correction version of testimony on Bill No (COR). To: "Joe S. San Agustin" <senatorjoessanagustin@gmail.com> Cc: Rose Mesa <rose.senatorsa@gmail.com> Hafa Adai Chairman San Agustin, Please see corrected version of testimony in favor of Bill No (COR) by Sr. Trinie Pangelinan to be included in the Committee Report. Si Yu'os Ma'ase! Forwarded message From: Trinie Pangelinan <stprsm@gmail.com> Date: Tue, Apr 25, 2017 at 2:33PM Subject: Re: Testimony on Bill To: "Office of Senator Telena C. Nelson" <senatortcnelson@gmail.com> Senator Nelson, Thanks for correcting the bill number... my mistake! I'm re sending my corrected testimony. Trinie Sent from my ipad On Apr 25, 2017, at 11:51 AM, Office of Senator Telena C. Nelson <senatortcnelson@gmail.com> wrote: Si Yu'os Ma'ase Sister Trinie for your testimony in support of Bill No (COR). We will be sure to forward this testimony to Chairman Joe San Agustin to include in the Committee Report. God bless and have a good day! On Tue, Apr 25, 2017 at 11:13 AM, Trinie Pangelinan <stprsm@gmail.com> wrote: Dear Senator Nelson, I am attaching my favorable testimony in support of this bill, although I was unable to attend the hearing. httnc //m~il nru"'\nlo l"'f"''m /rn!:!ilh t/fln,,i=?r.iv=m?~f7 A.o.rOR.\Jio.\u=:ntR.c::o!:lrl"h::::::inhAV.R.th= 1 I::;:h..::.71AQChP.:lC::f\Q., A!2... ;...,!- -i 1::\ i AOAt...-t:'tV'\..( A

54 4/Lf/LUH l::lmau- r-wa: L,Ofrecuon version or 1esumony on tslll NO. OtJ-.:l4lL,UKJ. Thank you for this opportunity! Sr. Trinie Pangelinan, RSM The Office of Senator Telena Cruz Nelson Committee on Housing, Utilities, Public Safety & Homeland Security I Mina'trentai Kw3ttro na Liheslaturan Guahan 34th Guam Legislature_ Guam eongress Building, 163 Chalan Santo Papa, Hagatna, Guam T: (671) /7689/7696 F: (671) senatortcnelson@gmail.com senatortcnelson@guamlegislature.org The Office of Senator Telena Cruz Nelson Committee on Housing, Utilities, Public Safety & Homeland Security I Mina'trentai Kw!Jttro na Liheslaturan Guahan 34th Guam Legislature Guam Congress Building, 163 Chalan Santo Papa, Hagatna, Guam T: (671) /7696 F: (671) senatortcnelson@gmail.com senatortcnelson@guamlegislature.org t!j Scan_Bill Testimony.pdf 368K hftnc!: //rn-::lil rrj"'v"v"vin,..,...,/...,...,if/,,/(,/'),.:-.,o:i,-~'vl.t"'7a~-ii"\c'j. -~--- --~._n

55 Sisters of Mercy P. 0. Box 22865, GMF Barrigada, GU Apri125,2017 Senator I elena C. Nelson 34th Guam Legislature Hagatna, Guam Re: Testimony on Bill50-34 Thank you for the opportunity to share my response regarding Bill I am very much IN FAVOR of this bill which hopefully will put a stop to illegal gambling on Guam. I have often wondered why this practice continues at the Liberation day site in Barrigada. I understand the mayors' stance about raising fimds for their various projects. But I think this responsibility should be removed from the mayors, if they have to rely on gambling. Perhaps, some non-profit organization(s) may be encouraged to take over this responsibility for Liberation day festivities. It is no secret that addictive gambling can ruin the lives of individuals and families. For this and obvious reasons, I am supportive of this bill, and I hope it will be passed by our law1nakers. Si Yu'os ma'ase! Sr. Trinie Pangelinan, RSM Social Justice Coordinator Sisters of Mercy, Guam

56 4/L.f /L.U"I f \;lmau- ~upporung t::llll I'IJO. ou-.:14 Rose Mesa <rose.senatorsa@gmail.com> Supporting Bill No message Gerhard <gerhard.schwab@yahoo.com> Wed, Apr 26, 2017 at 11:55 PM Reply-To: Gerhard <gerhard.schwab@yahoo.com> To: "rose.senatorsa@gmail.com" <rose.senatorsa@gmail.com> Cc: "senatortcnelson@gmail.com" <senatortcnelson@gmail.com>, Jackie Marati <jackie.marati@gmail.com> Dear Mrs. RoseMarie T. Mesa Please record appropriately that I support Bill No to remove exemptions for casino gambling during the Liberation Day Carnival and village fiestas primarily for political and religious reasons. Annual Liberation Day celebrations are deeply rooted in Guam's history and current cultural practices. Even those of us who were not born yet in 1944 can well understand and appreciate what liberation from the Japanese occupation meant for the people of Guam at that time. We also understand how different forms of gambling became part of these annual celebrations. However, as time passes, once well-managed and well-regulated cultural practices sometimes transform into or get replaced by profit seeking enterprises, often disguised as some sort of community oriented groups or establishments - like casino gambling during Liberation Day Carnival. Hence we need to continuously learn and strive for societal betterment. We need to recognize that the means of casino gambling do not justify the end of paying for Liberation Day expenses. We need not only celebrate the liberation from Japanese occupation, but also ask about liberation for what. This is why I support the closure of the Liberation Day Casino and why I suggest the renaming of Liberation Day into Liberation-Self Determination Day. In recent years, operators of Casino gambling have increasingly used village fiestas to get permission to run their gambling operation. It is important to note that the Casino is operated in a semi-permanent building on Liberation Day Carnival grounds, not in temporary structures in village communities. The people who operate and make profit from the Casino and the people who gamble have very little or no relations with the village communities in which fiestas are celebrated. Village fiestas are religious celebrations to give thanks and to honor village patron saints. Village fiestas should not be used as excuses for time limited gambling permits to Casino operators. Several times over the past years, the community of Guam has evaluated the benefits and costs of gambling. Every time the people of Guam concluded that the problems of gambling by far outweigh the benefits. Therefore, Bill directs our us toward a healthier, stronger and politically more mature community. respectfully, Gerhard Schwab PhD MSW Professor of Social Work Chair, Division of Social Work School of Nursing and Health Sciences University of Guam Tel: /')

57 '-'mall- ::,upporllng t:llll No. ou Mailing Address: University of Guam - SNHS/DSS UOG Station Mangilao, GU 96923, USA Time: GMT+10?I?

58 ARCHDIOCESE OF AGANA CHANCERY OFFICE 196 Cuesta San Ramon Ste. B Hagatfia, Guam Tel: (671) , (671) Fax: (671) Prot. No April 28, 2017 Sen. Joe S. San Agustin Sen. Telena C. Nelson Honorable Benjamin J.F. Cruz, Speaker 34th Guam Legislature 155 Hesler Place Hagatna, Guam Dear Senators: The Archdiocese of Agana gives thanks for the opportunity to provide written testimony on Bill No , concerning the elimination of casino gambling from the Liberation Day Carnival. The Archdiocese discourages gambling because of its proven capacity to destroy individuals, families and entire communities. Though the Catholic Church does not teach that gambling is intrinsically evil, it often becomes dangerous and a source of evil because of many of its forms' addictive nature that capitalizes on man's desire for fun, pleasure and money bolstered by a false sense of empowerment. Gambling is not immoral in itself but may become so under certain circumstances as stated in the Catechism of the Catholic Church, 2413: "Games of chance (card games, etc.) or wagers are not in themselves contrary to justice. They become morally unacceptable when they deprive someone ofwhat is necessary to provide for one's needs and those of others. The passion for gambling risks becoming an enslavement. Unfair wagers and cheating at games constitute grave matter, unless the damage inflicted is so slight that the one who suffers it cannot reasonably consider it significant." The Archdiocese of Agana especially opposes gambling that involves highly addictive casino-type machines or games. Damage is often inflicted swiftly. Hundreds of dollars can be squandered within seconds. Our priests counsel individuals and families who have lost money, possessions, even marriages and most of all, their peace and dignity because they could not resist gambling's devastating enticement. They come to our doorsteps broken.

59 Bill is a significant step in the right direction for a community such as ours which places great worth in things such as faith, family and culture. The Archdiocese of Agana supports this proposed legislation because it's a bold move to reverse a culture of recklessness and obsession which we see has been growing on our island. While we do not agree that other forms of highly addictive gambling should be automatically exempt from this current legislation, we commend the authors of this recent legislation. We encourage more sincere examination of such elements or pastimes in our community that endanger the livelihood of individuals and families. Yours in Christ, -t~j,3 Most Rev. Michael ~s Coadjutor Archbishop of Agafia 2

60 I Mina'Trentai Kuattro Na Liheslaturan Guahan Committee on Rules - Committee Report Guidebook Updated January 2017 Committee Vote Sheet Bill no (COR) An Act ToRepeal #64.62 of Chapter 64, Title 9, and to Amend #5205 (a) Of Chapter 5, Title 11, Of Guam Code Annotated, Relative To Removing Exemptions For GAJ/1BLING And Possession Of Gambling Devices At Or During The Liberation Day Carnival And Other Fair Or Carnival Activities in Guam SIGNATURE TO NOT TO TO TO GQli*I<I;R~4 eonfhtm- REPORT ABSTAIN PA-ss P-+ss OUT ~~ /I4IJ ONLY f I Senator Joe S. San Agustin - Chairman / Senator u(h/ ~ Dennis G. Rodriguez, J r - Vice Chairman Senator William "Wil" Mendiola Castro Senator sf/,'> ~ f ) / / ( i) A /l _/ Frank B. Aguon Jr. ~,.,. vi/ ~ Senator James V. Espaldon Senator Fernando B. Esteves I, I"' I / f/ty / /~ v Senator / ~ / Louise B. Muna Senator Therese M. Terlaje Senator v TOPLACE I IN INACTIVE FILE Senator Member Senator Member

61 SENATOR JOE S. SAN AGUSTIN Chairman, Committee on Education, Finance, and Taxation IMina' TrentaiKuattronaLiheslaturanGuahanThirty-Fourth Guam Legislature Committee Report I. OVERVIEW The Committee on Education, Finance and Taxation convened a public hearing April20, 2017, at I Liheslatura's Public Hearing Room. On the agenda was the consideration for, The Public of Bill No , Establishing Monthly Consolidated Tax collection reports introduced by Senator Mike San Nicolas. Public Bill No , Relative to Removing the Exemption from Gambling and possession of gambling devices, at, or, during the Liberation Day Carnival and other Fair, or, Carnival activities in Guam, are introduced by Senator Telena Nelson and Co-Sponsored by Speaker BJ Cruz and the appointments of the following individuals: Jerold W. Filush, Member, University of Guam Board of Regents Mark Benny C. Mendiola, Member, Parent of Student Enrolled within the Guam Department of Education Representative, Guam Board of Education Edward B. Palacios, Member, Guam Cockpit License Board Public Notice Requirements Notices were disseminated via to all senators and all main media broadcasting outlets on Thursday April13, 2017 (5 day notice), and again on Monday, April17, 2017 (48 hour notice). (a) Committee Members and Senators present: Senator Joe S. San Agustin, Chairman Vice Chair, Senator Wil Castro Speaker, Senator BJ Cruz Vice Speaker, Senator Therese Terlaje Senator James Espaldon Ran Care Bldg., Suite 3, 2nd Floor, 761 S. Marine Corps Dr., Tamuning, Guam Tel: Fax: senatorjoessanagustin@gmail.com

62 Senator Louise B. Mufia Senator Telena Nelson (hl Appearing before the committee: Anita Arriola Jackie Arriola Marati Jay Arriola Ernest Chargualaf, Mayor, Merizo Robert Hoffman, Mayor, Sinajana John Dungca John Vincent Dungca John Paul Dungca Jose Cruz, PhD ill Written Testimony Submitted: Anita Arriola Jackie Arriola Marati John Dungca Sinajana Mayor, Robert Hoffman Larry Claros II. COMMITTEE PRECEEDINGS Chairman San Agustin: Good morning ladies and gentlemen. It is now 9o' clock. The Committee on Education, Finance & Taxation will now convene this public hearing. The Public hearing will consist of Bill No , Establishing Monthly Consolidated Tax collection reports introduced by Senator Mike San Nicolas. Bill No , Relative to Removing the Exemption from Gambling and possession of gambling devices, at, or, during the Liberation Day Carnival and other Fair, or, Carnival activities in Guam, are introduced by Senator Telena Nelson and Co-Sponsored by Speaker BJ Cruz and the appointments of the following individuals. Appointment of, Jerald W. Filush, as a Member of the University of Guam Board of Guam Regents Appointment of, Mark Benny C. Mendiola, as a Member of the Guam Education Board, and the Appointment of, Edward B. Palacios, as Member of the Cockpit License Board. 2

63 Chairman San Agustin: The next issue that the Committee will address is Bill No , Relative to Removing Exemption of Gambling and possession of gambling devices, at, or, during the Liberation Day Carnival and other Fair, or, Carnival activities on Guam. This Bill was introduced by Senator Telena Nelson and Co-Sponsored by Speaker BJ Cruz. Just give me one minute, I will see the list who's here to testify against, cause it looks like we got a good handful, for and against. We'll first start out with in the order of the sign in Ladies and Gentlemen. Oh, thank you Senator Nelson, I didn't even notice that you came in, yes, please, Would Senator Nelson please speak of behalf on her Bill. I didn't know you walked in. Thank you. Senator Nelson: Thank you Mr. Chair. This Bill, Bill No is an actual Bill64.62 of Chapter 64 Title 9 and to amend Subsection 5205 A of Chapter 5 Title 11 of Guam Code Annotated, relative to removing exemptions for gambling and possession of gambling devices at, or during the Liberation Day carnival and other fair, or carnival activities in Guam. The Public by Referendum have confirmed Public Policy against casino style gambling. The Public is concerned about the lack of transparency about gross proceeds extracted from patrons. Bill would remove the authority to permit casino gambling and related devices during the Liberation Day carnival, or any other fair, or carnival activities on Guam, in conformance with established public policy. We are closing the loophole in the law that permits casino gambling, at fairs and carnivals. Public offices are becoming dependent on profits from professionally managed and equipped gambling enterprises at the Liberation Day carnival fair grounds that are, otherwise, prohibited from operating under the laws of Guam. I'd like to thank Speaker Benjamin Cruz for co-sponsoring this Bill with me and I look forward to the committee's discussion and approval on this legislation. I would for the record, like to read a singular story of gambling in relation to gambling and it's impacts, so, Mr. Chair, if I may. (see attached Atlantic Magazine December 2016 issue storyline as read by Senator Nelson). [Senator Nelson continues speaking after reading the attached story.] and this is just one story that this Atlantic magazine featured on casino and gambling. Now when I met with the Mayors several days ago, one Mayor asked me what is your intention in a very violent manner and this is very simple, simply stated. My intention is for us to work together to protect the community and to help our people. It's not about the money figure and not a dollar sign. It's about, it's our duty as elected officials to start standing up and to doing things that we are supposed to help the community and the people that live in it. So, I humbly ask that. You know, some people are opposed to this Bill, that they do for their research and really see the harm that it does, not to the individual only, but, to their family. Another Mayor told me, you know this man, I'm not gonna mention the name of the man; he came up to me and he said, my wife has a gambling addiction, and the Mayor's response was, that's not our problem. Well, I'm sorry, it is our problem. We are elected officials, how can we not say that it's not our problem? And if we are a part of the community, or the agencies that bring this gambling, this addiction towards the people, we cannot say it is not our problem. So, I just wanted to say that, I'm not trying to hurt anyone, I'm not trying to be malicious towards this Bill, it's just the concern that we have, that I have, and other people have about our community and protecting the life of our family and our family members. Thank you Mr. Chair. \Chairman San Agustin: Thank you Senator Nelson. We have several individuals that have signed in and I will call, one, two, three, four, five six, oh, there's six individuals, so, I'll ask all six to please come up to the table and then we'll take turns in the order that I call you up. You will speak first. We will start with the Mayor of Merizo, Ernest Chargualaf, sir, if you will, please, take a seat. I ask, Anita Arriola, Ma'am. For oral testimony; I'll be calling you up. Jackie, you're next, I was gonna call, and then we have John Dungca, sir, and we also have, John Vincent Dungca and John Paul Dungca, both, oh, we got three Dungcas, Johns, we have all three Johns, all three of you here? Oh, ok. And we do have some, or two, of our Mayors. The Mayor of Sinajana that's opposed to the Bill and we have the Director of the Mayor's Council of Guam, Mr. Angel Sablan, that's opposed to the Bill. But, we will begin with the Mayor of Merizo, Mr. Chargualaf, sir. Mayor Chargualaf: Thank you Mr. Chair, Senator San Agustin, Senator Telena Nelson, Senator Terlaje, Senator Castro and Senator Muna. Thank you for the opportunity to present before my testimony. I hear the story that you have Senator, and I can relate to that. But some of these are the exception rather than the norm. 3

64 If you gonna gamble, you gamble responsibly. Some people don't. You know that is to the demise to his family and himself. But, there are some people that do budget themselves to gamble. If your gonna, if you're gonna do away with one form of gambling, why not do away with everything. Why condone and accept one form and condemn all others. I understand the fabrics of our society may be affected, not everybody gambles, but those that do gamble, even casinos ask them to gamble responsibly-don't gamble away your mortgage payments and everything so when you gamble, you gamble with what you can gamble with. And those people that do gamble everything away, those are the exceptions rather than the norm. I gamble myself, I play BINGO, I play cards, but I gamble so at the end, I still have money to pay my bills that I am responsible for. But I'm here because, for the past seven years, I have been a recipient of the funding that came from the Liberation festivities. And a lot of those funding came from the casino, I've been there, there are no machines, I don't see any machines, its mostly table games, they have Poker, Texas Hold' em, Baccarat and everything. But for so many years, my village has hosted during the Liberation, or our annual Tinta' and Faha Massacre memorials. For so many years the families of these that were massacred were the ones hosting, and taking the financial burden of hosting this memorial services. Well, since I've been in office 2010, 2009 the families are there to assist me, to make sure that we host the memorials, but I promise them that I'm gonna try to find funding and lo and behold, by 2010 to the Liberation, I've been receiving monies to help me defray the cost of hosting the memorial services. And these memorial services is not only history of Merizo, this is a history of Guam, as well as of the world. But down there, we take care of our own memorials. And these funding that come in handy, because I have other events and functions that require monies that my council and I try to go out and reach out to the various businesses, so if you take away whatever funding I have, it just has to shift back and we have to work harder and as far as finding the money, because I have so many activities that work for the Manamko, as well as for the children and the youth. And I'm not really, as far as funding and some people say at me now, only being innovative, with what money I've been given by the government, but my non appropriated funds come from donations, as well as businesses that they'll help me on my various events that I use as fund raising events-if you take away that now, I have, I have never used gambling, cock fighting. I am not a cock fighter, I used to be, but I've never held a cock fight since I've been a Mayor. I've never held any BINGOs since I've been a Mayor, but at the events, I do have my Texas Hold' em and Black jack and whatever the government authorizes me to do so. I believe, with this Bill, it might negate that and take away the authority for me to make some money. It's not much, but it goes a long way. I even serve during All Soul's day, I serve my constituents who pay their respects to their loved ones who pass away. I serve at the cemetery site. On January, I have my candy runs for my kids. March, I have my Crab Festival. All of these events and functions I need money and the funding I do get, though its not much, I try and use it as best as I can do to things for my village. I understand that all these guys are all my friends, they're Lina'la sin Kasino, we're not gonna always be disagreeable to almost everything, but, when you put something to good use as well, you know, that's what I've done so far since I've received money from the casino, I put it to good use. I gamble myself, that's my cause, that's why I'm here, is to protect whatever I have. These guys are willing to give me the funding, I probably wouldn't have looked as much negatively on this Bill for the same reason my colleagues that are close by, they use these to help themselves, to avail themselves of monies available to do good for their community and for also, I support them. I know that the casino is not looked upon favorably by some special interest group, but, is something good for you. Your view will change also as well. Thank you for the opportunity. Senator Wil Castro: The Chairman ask that we proceed in the order of the folks who signed up. So, I have next on the list here, Ms. Anita Arriola, oh, you're gonna defer to Jackie, ok. Ms. Jackie Marati Jackie Marati: Thank you Senator and with all due respect to the Mayor, the kind Mayor of Malesso, we deeply salute and are very grateful for all the work that all the Mayors' have done. This issue, as I certainly agree with Senator Telena Nelson and Speaker BJ Cruz who have introduced this Bill. It's not about the Liberation Day carnival and it's not about all the good things that the Mayor's doing and we want that to continue. My name is Jackie Arriola Marati. I am the spokesperson for Keep Guam Good-and again, I applaud the effort of both Senator Nelson and Speaker BJ Cruz for having the courage to come out with a Bill like this. [She now reads her written testimony verbatim]. 4

65 Chairman San Agustin: Thank you Jackie. Ms. Anita. Anita P. Arriola: Good Morning Mr. Chairman and Good Morning Senators and Members of the Committee. [Reads written testimony verbatim] Chairman San Agustin: Thank you Ms. Arriola. Like to ask; I don't know which Mr. Dungca I'm gonna use, but I know all three of you are listed ok. So, are all three of you planning on testifying, or just one? Oh, it'll just be him? Ok. John Dungca, Father: Hafa Adai. I have written testimony that my son John Vincent will read for me. I'm blind, so he'll read that for me. My other son, John Paul, this is their first time in a Public Hearing, so I wanted them to see how the government works and I just wanted to say before my son reads my testimony. As you can see, there are people here that, generations now have opposed gambling, Saina Belle Arriola, [crying softly and asks to be excused for the moment] my mother, Bernadita Dungca so opposed it, so, now their children are opposing it, and now, my mom's grandchildren, so, as you can see, this is a generational battle that isn't gonna go away, but, you can also see that you know it's growing, the people that oppose gambling is growing through the generations and we're her to give my testimony and to show you that, this is like you, Mr. Chair, you're a legacy, so, I believe you understand that and Senator Nelson, you're a legacy, too. You understand that we are just carrying on what our parents have actually started for us. So, we come here today to bring honor to our parents and carry on the fight, cause casino gaming definitely is not good for Guam. So, my son John Vincent will now provide my testimony. I will also be available, I will answer questions you if you have. I also have solutions how we can get by, how we can come up with financial goals for the Mayors and at the end of my testimony, I can provide that for you. [Chairman San Agustin: Thank you sir.] John Vincent (son): Reads father's written testimony. Chairman San Agustin: Thank you Mr. Dungca. I will ask the panel of Senators, do you have any questions to the oral testimony that have been presented? I will start with Senator Nelson. Senator Nelson: Thank you. First of all, I'd like to thank you, everyone for coming today in support of this Bill. And also your concerns on this Bill is appreciated and respected and welcomed. So, thank you very much. Chairman San Agustin: Before I ask anyone of the Senators to speak, we have one more who just signed in. Larry Claros. Sir, you would like to give oral testimony, I'd rather you give it now then we can start with the questions. Thank you. Larry Claros; Reads his written testimony via his cell phone. Chairman San Agustin: Thank you sir. I have one other, Mayor, who would like to speak also, who happens to be at one time treasurer of the carnival, so Mayor Hoffman, please. Robert Hoffman: Reads written testimony verbatim. Chairman San Agustin: Thank you sir. You did submit that written testimony right? I have Mr. Arriola, he wants to speak.. We have one more speaker? Come on up.. I'll write your name down Jay. Jay Arriola: Jay Arriola. Thank you and good morning Mr. Chairman. On that good note, Mr. Mayor, I'll respond. The only documentation I was able to find on the internet regarding the financial activities of the Liberation carnival was the OPA's report. There's nothing on the Mayor's Council of Guam website, that I 5

66 was able to find, from the 2012, Liberation carnival was the last OPA audit. Total income Five Hundred Ninety Six Thousand (596,000.00), total disbursements Six Hundred Eighty Five Thousand (685, ) deficiency of Eighty Eight Thousand (88,000.00), 2011: total deposits Five Hundred Forty Three Thousand (543,000.00), total disbursements Four Hundred Fifty Four Thousand ( 454, ), the vast majority of the income 2012, Four Hundred Fifty Eight Thousand ( 458, ) based on concessions. The biggest expense is probably materials and commissions, including Eighty Eight Thousand (88,000.00) in commissions. Fifty Thousand (50,000.00) paid to the Queen Candidates, Thirty Eight Thousand (38,000.00) to the Mayor's Council and Thirty Nine Thousand (39,000.00) to the Rigalo Foundation. I'd encourage the committee to look for the financial statements, whatever other back up documentation there may be that is required to be kept, by the Mayor's Council of Guam in the interest of transparency. Where's the money. How much is really at stake here. The public records, the last thing you'll find is 2012, hello? Five years ago? Five years? They've been operating this casino with the permission of the Governor, without reporting back to the people they serve. How much are they taking in. Where's the money, is it really worth it? Cause that's what it boils down to. Is it really worth running that little shack, up in Tiyan at the risk of all the crime, all the families broken up, all the resources spent by Guam Police to handle the husband and wife who didn't come home to take care of his kids, pay the Child Support, take them to court because he's spending all the money at the casino, while its open during these months and it remains open because the Governor says to one Mayor, oh, you can have your Talofofo Fiesta at Tiyan or Barrigada, or, whatever outside village needs to operate the casino. So, let's go back to a little of the history, of how, why we have a casino, supposedly up at Tiyan. And the laws were amended as the sponsor can tell; back in '82 and '84 to commit only the Governor, to declare a Proclamation as to where you can have casino type gambling, at any Guam Island Fair, Liberation Day carnival, or other fair. In the '80's, excuse me, '90's, early 2000, the Gutierrez administration, Governor Gutierrez refused, no permits were issued. There was no casino gambling at the carnival. In the Felix Camacho administrations, for two terms, no casino's were allowed. Every single time a Governor takes office and is given the option of giving the proclamation, or the Executive order to authorize casino gambling, people from the Lina'la sin Casino, the people from Keep Guam Good, have always encouraged the Governors at the time, do not issue the proclamation, do not issue the permit. Unfortunately, with the Calvo administration, he has seen fit, not only to authorize it to occur at Tiyan, during the carnival, he's delegated it to the Mayor's Council to determine how, what, when, where; that's not provided in the law. That's not what the statute says. He can't delegate that. Everything that they've been doing, our position is, my position is, has been illegal. They don't have the necessary Governor's proclamation that the statute requires to authorize casino gambling up there, and Rev and Tax does nothing about it, where is Rev and Tax by the way, where's Rev and Tax, where's the money Rev and Tax? Where is all the income that the Governor and the Mayors say, look at all this money that we're getting. Look at all the Parks that we're developing, look at all the roads we're fixing, look at all the crime we're taking care of. Where's the money, Gentlemen? Ladies? Isn't it about the money to them? To them, It's about the money, we need the money, we read today's paper, whatever. The media says, the Mayor's announcing, basta, no carnival, you're gonna take that away? Never mind the sky's falling. We've heard that before, we hear it every time. Every time you take away their salary, take away anything, the sky is falling, no body's gonna wanna do it. It's time for the Mayor's, I would like to submit, get a little creative, really, we're gonna go to Tiyan again? How many facilities have we just spent millions fixing up? Paseo de Susanna, we have the Mayor's individual fairs every month, Pika Fiesta. A thousand a year on an event which is quite frankly, not very palatable to most local residents. When was the last time you were there? I don't see many nods. When was the last time you were at the casino? Every so often, members of our group of anti casino people will drive by and see the cars there, and call the Governor's office, call the police, call Rev and Tax, hey, something going on over there. Why is there gambling still going on. Come to find out, so and so said, so and so can have their fiesta there, really? Is that what it's really meant for? So that Inarajan can have casino gambling during Inarajan, lastima, St. Joseph's turning in his grave! That's not what it's meant for either. You've been getting away with it for years, because this administration permits it. You revoke, you repeal that section. That's all you need to do. Senator Telena Nelson, I commend you in following the footsteps of your grandparents, who recognized and fought alongside my parents and your parents and your parents, your parents, to keep Guam good. This is just gonna make Guam, a little better. It may not solve everything, may even, make a little more work for the 6

67 Mayor's to earn some money, but, it will make Guam better. Thank you for introducing such a courageous piece of legislation. Chairman San Agustin: Thank you Mr. Arriola. I will allow you Mayor Hoffman... Robert Hoffman: I did a real quick search sir, on the OPA website, just type in Liberation and all six reports came up. It's right here, from 2010 and then when it was handed off to OPA to the Liberation's oversight, this was also given, a copy was given to every Senator last year, the OPA as well, it was audited by Ernst and Young, the previous auditor done by Deloitte and Touche, this was done, all the sponsors also received that, companies which they worked for, also received copies of this annual report, so all the financials are there, we will put it on the website, that probably will be a great advice to do, but, we'll put it up. Chairman San Agustin: Ok. Thank you, sir. Now I'd ask the panel, the Senators present, but I'd like to recognize that the Speaker, BJ Cruz has joined us on the panel. Senator Terlaje, do you have anything? Senator Terlaje: Thank you all for your testimony. They're helpful. I have to admit, that what is in front of us is not complete at all, and it really, whether we are in favor of gaming or not, the incomplete information that we are given is really for me, troubling. So I would recommend that all the information that we've got, if we get it and we just can't make decisions without all the information. And I have several questions, if I may, and I'd like to, the Mayor of Malesso, you said, that you receive money from this. Do you know the amount that you received recently? Is there an accounting from the Mayor's Council that we can get that just sums up what each Mayor is receiving from the casino concession? Is that possible? Robert Hoffman: The gaming concessions are all the profits are put in to the non-appropriated funds, it's category listed there. It's on the OP A report which was, we had the meeting yesterday, the close out meeting. Each individual village's report shows the gaming reports of how it gets,(senator Terlaje: For the Mayor's Council?) there's the Mayor's Council gets one, the 19 villages, so, not only is the village audited, but, the Mayor's Council, as a whole is audited, so it shows a train. Senator Terlaje: Some of the confusion stems from we've got money going in and out of the Mayor's Council, yet, we have this Guam Liberation Historical Society with separate accounting, and I guess, could you just explain for us, what is the connection between the two, who are the current members of the historical society Robert Hoffman: They're tasked with organizing and planning the Liberation carnival. At the time, if part of the clause says they can't do it, they can have somebody else do it on that end, so, that was created on that end. To help put it together, Heidi Ballendorf is the Executive Director of that and they put it all together, with, so that members of the society are there, as well as members from OPA, Parks and Recs, Military Affairs and different groups come together and they help organize everything that gets put together, all done reported and then audited, then sent back and then the auditor reports are sent to the Mayor's Council. Senator Terlaje: So the statute authorize the Mayors' Council to put on the Liberation all the events and you have kind of sub contracted out to this non-profit organization? Who are the members of this. Are they Mayors? Or are they. Robert Hoffman: Some are former Mayors, Carol Tayama, I believe. Senator Terlaje: Can we just get a list of all the members, please? so but, this report that you've given us, is 2014? Robert Hoffman: 2015 and 2016 are being audited right now. Actually, with Ernst and Young and that'll be ready and then we've already started the letter of engagement for the 2017, 2018 years, so it's on that end. 7

68 The issue we had with the delay of 2015, 2016, is the girl who was doing it, gave birth in October, a high risk, she was on three months leave, and then her mother died in January. So, she ended up quitting, so we actually ended up having to call her back to help us figure out the files on this end, then she takes care of it from there, but we work with Ernst and Young. Senator Terlaje: Because I would like to know how much each of the Mayor's are getting; what the Mayor's Council is getting, in total from casinos, particular, because this Bill doesn't, rule out all gaming activities, only the carnival gaming, right? And so, how much they get, lump sum to Mayor's Council, I'm assuming, and then how much each Mayor has been receiving from that- Robert Hoffman: It varies on it. So, if the Mayor holds the memorial, they get three thousand (3,000.00) dollars. That pays for the memorial itself. Tinta', Asan, The Chiguan, Fena, Sumay, all that gets done on that end, they get a separate charge account, the split in the profits, so in one year, the Mayor's Council got Fifty Thousand (50,000.00) dollars, they split up, they get it from there, and then they buy chairs, or whatever else. It goes further down that way. So, it depends on what the body receives the money, so they vote, where the money goes. Senator Terlaje: to hold events then, so the money's not going out because of equally to the different villages, the money's going out for Liberation events. You're calling them memorials, the Liberation events? Robert Hoffman: Specific, specific things, it depends what they have. No, they'll get money separately,. So you'll see villages receive money separately, that's when you see the accounting forms, you see the received money from the Liberation Committee for that, but it was more specific for the memorial, then, further down the way, they'll receive money. The Legislatures also receives money, too, for hosting the memorial foundations as well. We've gotten calls ever since, I think they started hosting it, we've paid for the catering and the food as well. From the committee itself, from the Liberation committee, proceeds from gaming. Senator Terlaje: Ok. And when I look in this book, the way the account, so the most recent is 2014, and the way it shows is cash receipts are coming from concessions and they all seem to be lumped together, can you explain that? Robert Hoffman: We have four sources of income. Concessions, donations, sponsorships and Queen's Committee. The Queen's Committee, actually at the advise of Rev and Tax was taken out of that and given back to the Mayor's Council, so there's resources of income from there, all concessions are put together, so whether it be a drink machine, or whatever else, so as, you further expand it, this is how they report it in financial, so when you further expand, it shows money taken in from each specific ticket. Sure, I can give you the expanded version. Senator Terlaje: Can we get those for the last ten years or however long it's been going on, Five years at least? And because the numbers here don't match at all with this other report we have in front of us, is from the OPA and I haven't seen the one Attorney Arriola was describing, or the ones that you say are on your website, but there's one here from 2015, which they audited, the Department of Rev and Tax submitted Gaming Tax. So, there's totally different numbers, much less reported in here. And, then, are you able to tell us off the top of your head, what is the percentage of this concession that you will say, comes from the casino versus others. Robert Hoffman: It ranges. Every year ever since game rooms opened, the amount of people actually are willing to pay, or spend has actually gotten down, so, we've actually lost a lot of the years, on that, in that, but, on average, it would probably be about 80 to 90 per cent total of the total operations itself of what takes place. 8

69 Senator Terlaje: per cent of this concessions income come from (Robert Hoffman: Gaming Revenue, yes) What does the deal, may I ask, what is the deal with the concessionaire- Robert Hoffman: We get, so, well, it was done two different ways. So in the previous years, the Mayor's Council set it out to Bid. So now it'll be the society actually runs whole thing itself; so its paid for, money is gathered, its like Four Hundred some Thousand dollars, Four Hundred Fifty Thousand dollars is collected and that's usually what the profits are on that end. Senator Terlaje: So the Historical Society doesn't have to Bid it out, cause they're a non-profit. They just take whatever they want, one of it, an agreement, to get a certain percentage? Robert Hoffman: No, they're gains, that's revenue gain, so, you start of with zero; you usually gain is usually about Four Fifty, Five Hundred. I mean, if more people and play, it's better for this committee, if not, then that's how it works. Senator Terlaje: I'm sorry, I'm not following you. What is the concession getting? Robert Hoffman: We're not selling the concessions. It's run in-house, so, it's basically starting off less all the expenses. Everything else that costs, building costs, utility costs, that's' what is done, so we take the profits on that end, we take all of it there. Senator Terlaje: Ok. I wanna thank all the families that are here, Mr. Dungca. And we all, of course, remember your mom, family and the Arriolas, for always leading thelina'la sin Casino and Keep Guam Good and for all your efforts and I thank you and I know, all the Mayors in their community and all their efforts, and I know you're all struggling to make ends meet, especially with these memorials, those are very important parts of, i am hoping, too, that we can be very creative and come up with ways to take care of these important issues, but, we need to see all the information and we need to see what its being spent on, what we are looking at losing exactly, and how much and I think that's the only way we're gonna be able to help you out with those kinds of things. Thank you very much, thank you. Robert Hoffman: This year's carnival is gonna be at Paseo, it is in Agana. The Governor asked us to use, the Fest Pac area, we're happily obliging to the Guam Micronesian Island Fair which is also here, the carnival will take over the grounds- Chairman San Agustin: Alright. Thank you Mayor. Senator Espaldon, you have any questions? Senator Espaldon: Thank you Mr. Chair. A lot of the questions have been asked by the Vice Speaker. I do have a couple though. Mr. Mayor, you're saying that the revenue, Four Hundred Fifty Thousand ($450,000.00) dollars, is that correct? And that's for the Liberation Day period only and now if you add in all the fiestas and everything else, Robert Hoffman: Each Mayor makes their own Senator, of the Forty Six allowable activities, Twenty Three actually, we have some type of gaming, of the twenty three, only some have where they have card games, some just do cockfights some don't, just do regular color game, here and there, so it depends where it's held, but, that's individually, on the Mayor itself, not as the Council. (Senator Espaldon: And that amount is not reported to the Mayor's Council?) it's done through their NAF and through their auditing, done through their NAF and through their auditing. (Senator Espaldon: So, you're saying, the Mayor's Council is not keeping track) we wouldn't keep track because it goes, it's between the Mayor and the concessionaire at the village, so, for Merizo's case, whatever was held at Merizo, between the Merizo's Council, but you can reach the Council, because when I counsel the Mayors and him, that's done whatever's coming in, elected, it gives the NAF that's all done that way. It doesn't come in this end, but is audited as well by Delo1tte. 9

70 Senator Espaldon: Ok. Mr. Chair, I have a couple of other questions, I wanna formulate it better in my mind, I'll pass for now, I'll allow others to ask. Chairman San Agustin: Ok. I'll come back to you. Thank you. Senator Castro? Senator Castro: Mr. Chairman, my concerns are less on the merit of the Bill or the philosophical underpinnings of this particular activity, I would like the Vice Speaker express, I, too, am interested in the mechanic, I'm coming to learn about this organization, so some very basic questions, Mr. Mayor, anybody who has this information. Is this society a legally recognized entity? (Robert Hoffman: Yes.) Ok. Is this entity subject to Sunshine request and open government request. Robert Hoffman: It's a non-profit organization, It's a 501 3C, the certificate was granted goes back to 2013 Senator Castro: That's good for me to know, because, I believe at least for profit organizations, that they're recognized under law, as a public entity, so subject to those type of request, I'll get back on you on the details. Here's a question for you. Does the Society remit any form of compensation to the Mayor's themselves, directly (Robert Hoffman: What do you mean remit?) Does the Mayor, or a Mayor, (Hoffman: drop salary, of do they get a stipend? No, it's all volunteers) It's important for the record. Now a previous speaker eluded to families experiencing problems, I would assume they're domestic in nature, I've heard several stories of abandonment; my question is, do you have demographic data that would either affirm or refute some of these allegations, or claims. And this is important for me Mayor, members of the society, again, the Council, I don't want to surprise the sponsor of the Bill with these technical questions when we go on the floor for debate, so, I'm more interested in the fact that either affirm or refute some of the claims, where ever you weigh in on the discussion, I'm not as interested in your opinion or the opinion of the author, or members of the body, more than I am on the facts, so, would you happen even to anecdotal for now, I would suggest you come back with hard data, as to who uses the facility, maybe a "general age range" if you have that and are there reports, criminal or otherwise that are associated directly, or indirectly, with casino gaming in particular. Robert Hoffman: Hoping if the Police department are keeps their records, we'll see on the Guam crime statistics. The airport police handles and polices Tiyan in that area there. But it probably would show if there's any statistics, but most of the time, it would be, from what I know, working with a security team,. It's either public drunkenness, or something never involved gaming itself. It's either somebody coming in already inebriated most of the time, that's when our security has to take care of what needs to happen; people, so, yeah, I'll look at the Guam Criminal Code. Senator Castro: and maybe, that's a questions the Social Worker organizations. But let me ask you a simple one-out of ten people who go on average, how many of them would you classify as being local, Chamorro, Filipino, otherwise. (Robert Hoffman: Probably three. Three, four) Ok, and that's important also for me, members of the panel, because if this is designed to be, to exist, at the same time, as a celebration of a village patron saint, or it's, for the benefit of the people of that village, one would assume that the locals are participating in to this. Robert Hoffman: For Liberation cause you have Military that come by, people on the base, cause they have casino nights on the base, too, and they just come out support the activity. You have the regular Taxi cab drivers, the workers, the H2 workers, they do their thing. But for the fiesta, probably majority of the people, the villagers it selves, we've tried to try to get them to come off Base to come to the fiestas and the fairs, but, sometimes it depends if it works or not, and depends on what the Mayor does for advertising. 10

71 Senator Castro: Last two points Mr. Chair, last question. Out of the ten people on average, who would come to the casino; how would you break that down by age range, if even possible. Robert Hoffman: I would say, probably, one of three locals, probably somebody right out of high school, anxious to try gaming that exists, if anywhere on Guam. Says there doesn't, then they're lying to them self. There's also gaming that happens everywhere, people host card games and everything else. So, rest of the people, then that and second on that the Business professionals, you get Lawyers, you would get Doctor's, professionals who also kind of do this, who also play in the tournament circuit throughout the Philippines, because you know, there's casinos in the Philippines and Saipan, some close by, why would you want to spend I here; if that's the case you know? If they're gonna go after the big fish, they're gonna go over there, you know? The last person they're probably gonna just goes in tries it, you know, you're playing cards, take a specific type of skill when not playing cards, not knowing, you usually play to win. Senator Castro: Thank you. My last one Mr. Chairman on the itemized pay outs here, I see travel and accommodation. I have my assumptions, but, could you, just for the record, tell me? Robert Hoffman: It's divided by two. You have travel accommodation, can be done for either the visiting Liberator's assistant. Usually the airlines have been very good about helping covering the cost of the Liberator themselves, but they need assistance, usually their son, or, granddaughter, or whatever else comes with them. That also covers the Queen's travel to Washington D. C. to represent us at the memorial there, we also fly out the First Lady on that end, so that's what that covers. Senator Castro: So these travel monies are not used at the discretion of the Mayors or members of the society for other matters. Robert Hoffman: We actually, we're actually blessed, cause right after this, GVB started taking on the cover to travel costs, take the cost of the Queen, the First Lady and everybody else on the GVB side of the Cultural Heritage, that's the nation and so we no longer have the spending. It's actually gone down tremendous! y. Senator Castro: Thank you Mr. Chairman. Chairman San Agustin: Thank you Senator. Senator Muna, would you have any questions? Senator Muna: Thank you to the panel and the families who want to be here today. The Dungca families, the Arriola Family, thank you so much for the Mayors, too. My first few months in office, I had an opportunity to sit down with most of the Mayors. I do understand the financial issues that you're having; so, before all the testimonies, I was a little bit conflicted about how I felt about this Bill. I wanna thank Senator Nelson and Speaker Cruz, for introducing this, because it's a tough decision. I know just walking on the side of the street, people are tapping me and telling me what I should and should not vote for and giving me other suggestions on what gaming really is. I don't understand the addiction of gambling because I don't have that addiction, but, I do understand addiction as a whole. I know that addiction can interfere in families, as a whole, so am looking at it, in a family perspective and understanding that whether it be drugs or alcohol or even gambling, it affects ever body, as a community. So, I did, in some of my conversations with the Mayors, that they're becoming more creative, in finding finances, how it really is gonna effect the community; is that dollar really worth it. So, that's some of the things I'm conflicted now., and I thank you for your testimony, it's helping me understand, where everyone is coming form on both sides of the fence. Thank you again to everyone here. 11

72 Chair San Agustin: Thank you Senator. Speaker Cruz? Speaker Cruz: Thank you very much. Before I make my comments, I probably should ask some questions since people are being technical about asking about demographics. Can Mayor's Council or the Liberation Committee provide this committee with the Standard Operating Procedure that's provided to the casino? Is, on a nightly basis, is there something that they have to comply with (Robert Hoffman: yes) In the casinos in the States, there are things that you have to do. Is there something at the casino (Hoffman: yes, the profit log sheets, the daily tracking, profit log sheets, we can provide them for you) Are there other instructions on what they have to do? Is there oversight by Revenue and Taxation? Robert Hoffman: Revenue and Taxation does, they do come by actually, the Chairman was in Rev and Tax, came by several times. Even the ABC Board comes by; with a lack of a Gaming Commission at the time. The ABC Board task control of the oversight and came back. Speaker Cruz: The lack of the Gaming Commission is my biggest fear. Is that, this is out of control. I don't know what their, what rules that they're working with. Robert Hoffman: It fell upon Revenue and Tax's ABC Division. Speaker Cruz: And that's what I mean, can someone provide me with whatever rules of there are that they're operating this from? Robert Hoffman: We can ask Revenue and Tax sure, on it. Speaker Cruz: Because it just seems, it really is about whefs. So, we need to provide that, so that I know. The rest of the stuff on the report with the expenditures to me are irrelevant, so, it just seems to me, that without a Gaming Commission. Without all of the rules, that you need to have in a casino. It is just up to guidance there that night, as to what the win rates going to be, or whatever is going to be happening. And that to me, is the worst part of this, is that, without a Gaming Commission, I mean, we either do one, or two things, we either, establish the Gaming Commission, or go for the Gaming Commission that's watching and crossing every "T" and dotting every "I", or abolish all of it. And for me, it's the latter. I can remember, thirty years ago, when their mother was alive (points to Arriola and Dungca family) she was Chairman of the committee. I came on the other side of this hall, in the main hall, I came in my robe to testify against the Bill. the Archbishop came here in his full regalia, with mitre. We came because I, as family court judge, was watching on a daily basis, the demographics as being asked by a member of this panel, and the making ends meet, by a question being asked by member of this panel, and emblazed in my mind, to the day I die, is the face of a little girl that was brought in to my court room beyond control, because she was offering sexual favors to old men in the village, she was making ends meet because her mother was in Agana and she lived in Inarajan. So, it's not gonna appear in the Police log of Tamuning or Tiyan. The abandonment is in the villages. When I asked her, why she was offering sexual favors, she needed a loaf of bread and a can of spam to feed her and her brothers. Until I die, that will always be fore front in my mind. And whether, or not, I understand addiction, or not, I understand what it has done to the fabric of the family. And with every fiber that's left in me, I will fight it and not get lost in the demographics of how many and what age and the fact that there is no commission, makes it even less palatable to me. It's beyond control and should be abolished completely. Thank you. Chair San Agustin: Thank you Speaker. Yes, I was gonna call you Senator Espaldon. Senator Espaldon: Thank you. And again, there's been plenty said and I think we're still expecting some more information to come, so we can do a more thorough analysis on the issues and what's 12

73 really going on, but, now I have to ask a certain question, and only because this particular Bill will affect and I know the real key issue here is the casino gambling, but, this Bill will also eliminate other forms of gambling that happens at the Liberation Day carnival. That's kind of happened ever since I was a young child, and I think we're all familiar with the pay red, pay red type a game and again it's not a high stakes game, I guess it could, depending on how much you bet, but, are you opposed to that as well? Anybody's who's spoken up against this Bill? Good, could I ask you that, Mrs. Arriola. Yes, Attorney. You are against those. Jay Arriola: Yes. The teenage kids are standing at the back, ready to put their twenty dollars down. Mter three times it turns yellow, they know to put the twenty dollars down on the red and they're just standing at the corner, they're underage and they're gambling there. And it's happening right in front of their eyes. Cultural? Pay red, pay red, cultural? (Chamorro-Disde ngai'an dai [oh dear, since when] cockfighting? That's good, that's cultural. It's in the Philippines, Cuba, some may argue, it's cruelty to animals, but, that's cultural. Cultural in Philippines, but pay red, pay red, cultural? It's not even our colors of the island. So, yes. I am opposed to that type of gambling as well. This Bill does the right thing, it removes all gambling, yes. Jackie Marati: I would like to echo in Jay's sentiments. I think sometimes what we do, we diminish and dilute these minor games that we think have no affect on the behavior, or the minds of the development of young adults and whether it be young or certainly older, I think, once you're betting, I mean this is betting. You know, put away the colors, put away all the lights, it's the same thing, and so when we diminish what it is, maybe we stand for and what we don't. So, I don't think it needs to be at the casinos at the carnival. What the Bill that Senator Cruz and Senator Nelson have put together, is just you know; This is about Liberation Day, what happened to that, what happened that? you know? We have the casinos. I remember going to the Liberation Day carnival down here and the Paseo. Thank you very much for bringing it back, but, it was not about that. I remember sports activities. I remember 4H Club, exhibits, I remember family friendly events, what happened to that? Why does it have to depend on gambling here on Guam, why do we have, it's not a sustainable thing, as even the good Mayor said, even the rates are dropping. So, it's time to look at things that are more friendly family. I just believe that we have to go back to what was the purpose the carnival was to begin with, what was the original purpose? And that's what maybe we need to get back to. That and not where the money's gonna come from? What was the purpose of the carnival, those of us who are around a number of years ago have the fondest memories of the carnival, being there with all of our families and my dad who is now ninety one years old playing on a baseball team. Those are my memories of the Liberation Day carnival. Senator Espaldon: Mr. Chair just one more. I guess that's the answer to that question. Mr. Mayor, I'm just going back to that Four Hundred Fifty Thousand dollar figure. I just want to clarify, I believe you mentioned that the Liberation Day carnival runs for Seventy days, so, if you break that down, it really comes out to, you're saying, the that casino operation itself makes on average Six Thousand Two Hundred dollars in an operative of cost per night, I just bring out that number. I did it on the calculator and for casino gambling operations, it seems quite a low report. Robert Hoffman: If you walk in there, there's more workers in there than there are players at a time. And it depends, the one year that the refunds came out, it was a pretty good year. And you saw that's where it shows, than when there's not. Then when the court ruled for the game rooms, we lost cliental, that's the thing. The big betters no longer exists, they've passed on; on that end. So, you kind of have it, in hopes of that. We were able to bring a dynamic era up there. When they 13

74 come in, their charter flights, we truck them up there so here you go, they see something they wanna do. And some of these played, some of them didn't. So, it's back and forth on that end. It depends, it's a gamble. Senator Espaldon: But no more questions Mr. Chair. Chair San Agustin: Thank you Senator Espaldon. Senator Castro. I'll have Senator Castro first and then will follow by Madame Vice, but, I'd just like to remind everyone on the panel, that we do have one more speaker that would like to speak and he just showed up and that's Dr. Cruz. So, Dr. Cruz, if you could just please, come up. Come up to the table, but you'll speak after Senator Castro and Senator Terlaje. Senator Castro: Mr. Chairman, first of all I thank the previous panel speaker for sharing his personal experience. I can respect one's opinion and value, I certainly have mine. I grew up in a family of gamblers and I don't gamble, nor do I condone it, but, I do have a follow up question for Attorney Arriola. If you don't mind that I will be Jay, sorry. And also, thank you for Jackie for bringing up, back to the context of why we are really here with in Liberation. I just want to make it clear that I've been consistent in my position in a call for a greater need for individual responsibility whether it's the syntax or other vices or gambling. In general, so, I'm a big proponent, if we're gonna establish a rule, we do it for all and not in this singular context. So my question in full disclosure, Mr. Chairman, my question is fully directed to Mr. Jay Arriola, who is for the record, my Pare, Godfather to my daughter, so, Mr. Arriola, this is not a personal question, do you oppose all forms of gambling to include the Lotto and to include BINGO- Let the record flag that, the response is he's opposed to all forms of gambling. Thank you. Chairman San Agustin: Senator Terlaje. Senator Terlaje: Thank you. I just wanted to point out that I thought, I think the expenditure information and that type of information is very relevant and important because in the news article, this is in the POST Guam, it says with their largest source of funding, glooming over their heads. Hoffman and Sablan, hope to voice their concerns about this Bill, right? So, largest source of funding, and yet, in the Press release for this BILL, it says, according to the OPA report and this is the one I'm referring to, earlier September The Government of Guam collected a mere Thirty Two Thousand dollars from gambling activities at the Liberation Day carnival and it says that the Chairman on appropriations has agreed to assist Senator Nelson in offsetting that loss, should this Bill become law, so the loss is very important, if we are going to live up to our promises. I want to know, what we are talking about. Are we talking about Thirty Two Thousand dollars because the Mayors make it sound like their largest source of funding, and those don't match, like I said earlier, because this information is not matching. Robert Hoffman: The loss says that at the end of the carnival, whatever's left in that, Fifty per cent goes to the First Lady's charity, Fifty per cent of the Mayor's that is the Fifty per cent going to the Mayor's Council. That's what's included is in that, that's what's included there. Senator Terlaje: And you're saying that's, more than what the Mayor's, getting... Robert Hoffman: That's the end, after all the activities. That's the profits that's split between Mayors and the First Lady. 14

75 Senator Terlaje: Right, but is that amount of money going to the Mayor's, more than what the Mayor's are getting from appropriations? Generally? Or is it around thirty two thousand dollars? Robert Hoffman: That is the largest in the non appropriated funds section, yes, Senator Terlaje: How does that compare to the non appropriated funds. Robert Hoffman: We don't use any of the appropriated funds, to host any of the things buying Easter eggs, buying the things that we give for Halloween and all that. That is done through that fund. It's there on the audits. Senator Terlaje: Well, I'd like to see that information, please, ok, thank you. Chairman San Agustin: Thank you Senator Terlaje. Dr. Cruz, you want to provide oral testimony Sir? Dr. Cruz, Dr. Jose Cruz: Yes, as a preference, I would like to just tell the committee, according to the Legislature protocol, the hearing, for this Bill, the Bill according to Senator Telena, this Bill is scheduled for tomorrow, the 21st and I checked on it this morning and that is why, I was confused, cause Jackie said, right now, and I said Jackie had been in contact with these people, because I have a position, that Dr. Guthertz is gonna take opposing against gaming ok, so I was really surprised when Jackie said, it's scheduled today, as of oppose to tomorrow, and I have people who are planning to be here tomorrow, because of that scheduled issue, I just call that a mishap. Ok? (Dr. Cruz at this point, speaks in Chamorro in defense of why he opposes Gambling altogether, speaks on behalf of the group, Keep Guam Good to continue their position to fight against gambling on Guam and during the Liberation Day carnival festivities. Dr. Cruz related stories of his knowledge and experiences within the communities, the consequential actions of individuals who engaged in gambling and the disappointments of the outcome when someone gambles and causes family lifestyles to be defeated, if not destroyed. To the end of his testimony, Dr. Cruz re-iterated how passionate, imperative and critical the gambling issues on Guam be addressed and look to the passing of Bill50-34 to remove gambling.) Chair San Agustin: Thank you Dr. Cruz, I believe no one else would have any questions. I'd like to just announce if individuals wish to submit written testimony for, or against this Bill. I'll allow up to Five (5) days and the reason for that is because I will be requesting for a more thorough report on the expenditure on the carnival grounds, because I would like to know, being a former Revenue and Taxation, something just doesn't sound right. I need a more thorough accountability of what's going on. The Department of Administration and the Department of Revenue and Tax was invited to this hearing. I will be asking that question, with the Director of what's going on in the Gaming Commission, because this committee oversees that department. And you may hand deliver your testimony for, or against to my office located at Rancare Building, 2nd Floor, Suite 3, 761 South Marine Corps Drive, Tamuning, or senatorioessanagustin@gmail.com,. This concludes the Public Hearing on the Committee on Education, Finance, and Taxation, today. Have a nice day. 15

76 III. COMMITTEE FINDINGS AND RECOMMENDATIONS: The Committee on Education, Finance, and Taxation, to which was Public Hearing of Bill No , Relative to Removing the Exemption from Gambling and possession of gambling devices, at, or, during the Liberation Day Carnival and other Fair, or, Carnival activities in Guam, are introduced by Senator Telena Nelson and Co-Sponsored by Speaker BJ Cruz, hereby report out by the Committee with the recommendation_ "1b ~-,r-.i- <Ocd- cd~t,fg r 16

77 OFFICE OF SENATOR TELENA CRUZ NELSON CHAIRPERSON OF THE COMMITTEE ON HOUSING, UTILITIES, PUBLIC SAFETY & HOMELAND SECURITY I MINA'TRENTAI KUATTRO NA LIHESLATURAN GUAHAN I 34th GUAM LEGISLATURE For Immediate Release March 23, 2017 SENATOR NELSON INTRODUCES BILL TO BAN CASINO GAMBLING AT THE LIBERATION DAY CARNIVAL (Hag!ttiia, Guam) Senator Telena Cruz Nelson authored Bill No (COR), a measure, co-sponsored by Speaker Benjamin J.F. Cruz, that would remove the authority to permit casino gambling and related devices during the Liberation Day Carnival or any other fair or carnival activities in Guam, in conformance with established public policy. "We are closing the loophole in the law that permits casino gambling at fairs and carnivals." Senator Nelson continued, "Public offices are becoming dependent on profits from professionally managed and equipped gambling enterprises at the Liberation Carnival fair grounds that are otherwise prohibited from operating under the laws of Guam." "The People of Guam have decisively rejected casino-style gambling at the voting booth five times since the year It's time our laws honestly reflect that fact," said Speaker Benjamin J.F. Cruz. "As a family court judge, I saw the human cost of gambling addiction every day. And until you look in the eyes of a child who is forced to sell herself to feed her little brother-because her mother gambled away her paycheck-don't tell me addictive gambling is a victimless act." "Bingo and cockfighting are grounded in our culture, but we've been battling back casino gambling and casino type devices for 40 years. Even if we argue the short-term economic benefits ($32,000), the long-term social costs impacting our community and families are much more significant," Senator Nelson stated. According to OP A Report 16-06, in Fiscal Year 2015, the government of Guam collected a mere $32,000 from gambling activities at the Liberation Day carnival. The Chairman on Appropriations has agreed to assist Senator Nelson in offsetting that loss, should Bill No (COR) become law. ### For more information, please contact the Office of Senator Telena Cruz Nelson at AttathJJJwt: Bill No (COR) GUAM CONGRESS BLDG. 163 CHALAN SANTO PAPA HAGATNA, GUAM Tel: (671) I senatortcnelson@guamlegislature.org

78 IMINA' TRENT AI KVATTRO NA LIHESLATURAN GUAHAN 2017 (FIRST) Regular Session Bill No. c:::... (' j u -34 ( lt\-<.. ) /) Introduced by: Telena Cruz Nelson ~ B. J. F. Cruz~ 'i\ 'I AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUAM. w:. t:: ( 0 1 BE IT ENACTED BY THE PEOPLE OF GUAM: 2. Section 1. Legislative Findings. Public ot11ces are becoming dependent 3 on profits from professionally managed and equipped gambling enterprises at the 4 Liberation Carnival fair grounds that are otherwise prohibited from operating 5 under the laws of Guam. The public by referendum confirmed public policy 6 against casino-style gambling. The public is now concerned about the lack of 7 transparency about the process of authorizing and regulating the activities, and the 8 extent of gross proceeds extracted from patrons. It is the intent of I Liheslatura to 9 remove the authority to exempt casino gambling devices and activities during the 10 Liberation Day Carnival or any other fair or carnival activities in Guam in 11 conformance with established public policy. 12 Section of Chapter 64, Title 9, Guam Code Annotated, IS 13 hereby repealed: 1

79 l 2..,.) " Authorization for Gambling at Fairs and Possession of Gambling Devices. Section of this Title does not apply to any gambling conducted by a person '>Vho has been issued a permit by the Governor for concessions operated during a fair or carnival, and Section of this title does not apply to possession of any temporarilv licensed e:ambling device during anv Guam Inland Fair,. ~ ~ ~ ~ biberation Day Carnival or any other fair or ca.rni.vai for which the Governor has issued a proclamation." 9 Section (a) of Article 2, Chapter 5, Title 11, Guam Code 10 Annotated, is arnended to read: 11 "(a) The following are the only limited gaming activities authorized in Guam 12 under this Act: 13 (1) Bingo or lottery that is conducted by a tax exempt non-profit 14 organization as authorized in Title 9, Guam Code Annotated, 64.70(b); 15 (2) Cockfighting that is conducted at a licensed cockpit, and that all 16 wagers are present at the cockpit, as authorized in Title 9, Guam Code 17 Annotated, 64.40; and 18 (3) Carnival or Liberation Day gaming, as authorized in 64.62; and 19 (4) All other limited gaming activities as authorized pursuant to statute." 2

80 Senator Michael F.Q. San Nicolas, Chainuan 1 A1inrlTrentai Kulittro na Liheslatunm Guiilmn 34u' Guam Legislature BILL NO (COR) AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED. RELATIVE TO REMOVING EXEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUi\M. I (A) Legal Bm eau I (1) One subject matter? ~ 6.01(a), 2 GCA 2108(a)J YES o NO (Return to Prime Sponsor) I (2) Conform to Standing Rules as to form and style? [SR 6.02(b) and (d), 6.03(d)] g"yes o NO (Return to Prime Sponsor) (1) Does the Bill contain appropriations or authorizations I for appropnatlons from any fund sources? oyes ~0 Notice to Legal Bureau: ~ /J..2../17 # * Completed by Legal Bureau:.$;!!7/11..,!.30 rm Notice to OFB: I (B) Office of Finance & Budget (OFB) Action (2) Does the Bill contain an authorization to expend government funds? oyes ~0 on/a (3} Does the Bill contain provisions that have potential fiscal impacts on the government of Guam budget? I LiVYES 0 NO 0 N/A I Is the fiscal impact revenue negative 1 to the government of Guam budget? 1 DYES (Refer to Committee on A priations) Completed by OFB:.3 /:e/11 tt=+zarn } f ON/A GUAM CONGRESS BtJILDING " 163 CHAtAN SANTO PAPA HAGATNA, GUAM Telephone: (671) " address: corguamlcgislaturc@gmail.com Page 1 of2

81 PRE-REFERRAL CHECKLIST ~AJLiJLi NO (COR) AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIBERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUAlvL (C) DEBT I (1) SR 6.01 (h)(l)(a) Land, Infrastructure, Building Projects, Capital Improvement Projects l utn/a 1 DYES 1 o NO (Return to Prime Sponsor) (2) SR 6.01 (h)(l)(b) Refinancing of existing debt (not less than 2%)!!fNtA oyes / D NO (Return to Prime Sponsor) (3) SR 6.01 (b)(2) Authorize public debt to fund operations of agency, instrumentality, public corporation COR Action ~/A o YES (Return to Prime Sponsor) ono o Waived (per official state of emergency, as attached) o Retum to Prime Sponsor ~fer to: Date& Time: GUAM CONGRESS BUILDING 163 CHALAN SANTO PAPA,. HAGATNA, GUAM (671) "' address: corguamlegislature@gmallcom Page 2 of2

82 COMMITTEE ON RULES Senator Michael F.Q. San Nicolas, Clwinnan I Mina'Trentai Kulittro na Liheslaturan Gulihan 34th Guam Legislature To: From: Date: Re: RennaeMeno Clerk of the Legislature Senator Michael F.Q. San Nicolas Chairman of the Committee on Rules April 11, 2017 Fiscal Notes Buenas yan HBfa adai. Attached, please find the fiscal notes for the following bills: Bill No (COR) T~ Bill No (COR) Please forward the same to Management Information Services (MIS) fori posting on our website. For any questions or concerns, please feel free to contact Christian Valencia, Committee on Rules Director, at Thank you for your attention to this important matter. Respectfully, Nicolas Chairman of the Committee on Rules GUAM CONGRESS BUILDING 163 CHALAN SANTO PAPA HAGATNA, GUAM Telephone: (671) 472~6453 address: corguamlegislature@gmail.com

83 Bureau of Budget & Management Research Fiscal Note of Bill No. S0-34 (COR) ~N ACT TO REPEAL OF CIIAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTERS, TITLE II, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING E.XEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING TilE LIBERATION DAY CARNIVAL AND OTIJER FAIR OR CARNIVAL ACTIVITIES IN GUAM. :- pepartment's Generul Fund (GF) approprialion{s) to d11te: 8.865,558 Department's Other Fund (Spedry) Appropriafion(s) to date: BPSF (S2,20.f,250), TCEF {SI,OJ8,708), TAF (SS,OOO), ToiSII Department/Agency Approprlation(s) to dale: Sl2,108.SI6 FY 2016 Unreserved Fund Bal11nce FY 2017 Adopted Revenues FY 1017 Appru. 'P b a:!&..li t!u:u l! b JJ..~Ol Sub-total: Less appropriation in BiD Total: 5681,271,974 (S681,271,974) so so so so SZ,OOI,903 (Sl,OO I,903) so so so so 5683, (S683,273,877) so so so Fiscal Year FY 2018 FY 2Ul9 FY2020 FY loll -~ so ssoo,ooo Spedfy Sped11l Fund) so so Total so ssooooo so so so so so so so so 0 so so so 1. Does the bih contain "revenue generutlng" provisions? JfYes. see altachment I I \'es Ill No 2. b amount appropriated adequate to fund the In lent of the nppropriallont lxl NIA I I Yes II No If no, what Is the additional amount required? S ---- /x 1 NIA 3. Does the Bill establish a new programjagem:y? 1 J Yu Jxl No I r yu, will the program duplicate existing progn~mslagenries? fxl NIA I I Yes J I No Js there a federuj mnnduce to establish the programfngeney? J I Yes Jxl No... Will the I.'DilCtment or this Bill require new physical fuc:ilities? 1 I Yes Jxl No S. Was Fiscal Noll.' coordinated with the affected dept/agency? If no, indicate reason: Jx I Yes II No I xi Requeste.Jllgency comments not received by due dale (DRT: 3/3!117) I x I Other: Mayors'Coundl pruvided input. Date:APR Footnotes: See uttuched comment sheet.

84 Bureau of Budget & Management Research Attachment to Fiscal Note No (COR) (for revenue generating provisions) General Fund Other Fund: Total $0 $ ($400,000) $0 $0 $0 $0 Comments: Proposed Bill would reduce the Limited Gaming Fund revenue expectation by $400,(}{}{) or more due to the elimination of the gambling exemptions at the Liberation Day Carnival and other carnival activities.,.

85 Comments on legislative Bill No (COR) The proposed legislative Bill No (COR} is seeking to repeal of Chapter 64, Title 9 and to amend 5205(a) of Chapter 5, Title II of the Guam Code Annotated. The proposed repeal and amendment of the referenced GCAs are to eliminating the exemptions of gambling at the liberation Day Carnival and at other island fairs or carnival activities in Guam currently allow "Game of Chance" vendors to participate in the Liberation Day Carnival. There are approximately 60 vendors providing goods and services during the Liberation Day Carnival. Of these vendors, approximately five to six vendors offer "Game of Chance" services, this includes the one casino. Any gambling activity is allowed in the carnival grounds from card playing to gambling devices. In order for vendors to participate in these gambling activities, they must bid for the opportunity. In FY 2016, a total of $600K was generated from vendor fees. Of this amount, the sum of $500K was generated from the fees charged to "Game of Chance" vendors. The sum of $400K was paid by one casino vendor and the remaining balance of $look was paid by other smaller gambling vendors. By eliminating the Gambling exemptions noted by 64.62, the self generating revenues earned by the Mayors' Counsel of Guam would no longer be available to defray the cost of the liberation Day Carnival. Approximately $5001< would need to be appropriated from the unreserved surplus of the GF fund balance, which may not be available given the GF deficit. In past fiscal years, the limited Gaming Fund had generated the following annual tax revenues and Gross Business Revenue Receipts: Fiscal Year Earned Tax Revenues Gross Business Revenue Receipts $223,688 $5,592, $1,702,306 $42,557, $1,943,595 $48,589, $1,506,435 $37,660,875 1/ Audited Go\lernment of Guam Financtal Statements 2/ Unaudited dollars, derived from the AS400 Financial System In FY 2017, the Limited Gaming Fund is projected to generate $2.0 million in gaming tax revenues, which represents $50.0 million in Gross Business Revenue Receipts. It is assumed that 20% of the Gross Business Revenue Receipts, which would be earned in FY 2017, would come from the liberation Day Carnival and other carnival activities throughout the fiscal year. It is further assumed that the same revenues earned in FY 2017 would continue in FY Section 5201, Article 2, Chapter 5 of 11 GCA imposes a 4% limiting gambling tax on the gross receipt of limited Gaming Activities allowed under this Act. Therefore, the Gross Business Revenue Receipts that would be earned from the activities of liberation Day Carnival activities are estimated at $10.0 million of which $400K is generated in Limited Gambling Activities taxes. Should this bill be passed in FY 2017, there is high probability that a reduction in the Limited Gambling Revenues of $400K or more would occur as the result of the elimination of gambling activities at the liberation Day Carnival and other carnival events.

86 ,,,~.~. The potential fiscal impact of this proposed legislation is the need to identify General Fund (Gf} funding of up to $SOOK needed to cover the cost of the liberation Day Carnival in order for such event to take place in July 2017 as the result of the elimination of gambling vendors. Secondly; the continuing appropriations of the Mayors' Council of Guam, the Department of Parks and Recreation, and the Guam Department of Education, specific to the limited Gaming Fund would be fiscally impacted because of the lower revenue expectation in FY 2017; Together; the elimination of gambling vendor fees of $SOOK plus the reduction in the Limited Gaming Revenue of $400K would reflect a negative fiscal impact of $900K.

87 ' ~ "'" ~~- -: tm,.t.,.g~t.:.:me. expert on ganll)ling law&,}?ut I pay anyt:'l;tipg.of~onetaryvalue s~.ratchjng... : ~p:y. can'tjigurem.rt how,.they,_ai;'e.ak< for achance.to:-winaprize.". bead ig confusi9n m9re. than Iow~ci to s~ in pperati~.,.., Over ~e y~s, the Legislc:l-. does the subjectofgambijrig 6it <:. _-.-.$ vef~ll:,'m..on:ths7ago_, ')ts ~l~ ~ tm'efias~~~qou.t.excepfi()nsto.guain. Ove:ri-the past40.yearsi;.-drove by Barrigada:.Heigh'ti.m: : the:.1av.i:.these include social cilong With the majority of vot-.tbe ev:enillg~tnoticedmimero:us gairibl:iiig at private homes, li~. ers, hay~ vote<i several tinies to. cars;f{)~k.e.dj:o:fl'on,tof th~ gam- cen~ co9kfights,. gam{)fing ac~.ban;gainb~g:,despite.this fact~: ~ b~:qig'~!>jist::-.situatec.ton<the LiP..:. tivitie~ sponst>.~.ed : by. certain gambling Still seeriis::wj;>e. ~V.~( -eration: :~al :fft~t.md~~:this ~ no~:pi"ofit :: org~tions{''. 'ap,d. and welh:m the:islatid ' : went 011- for\weeks;:' an.a:then- gamblin g:;coneessions operated. My stroiig,5lls~ foi:l gam> ni'i?fit~,-:j :k~iif'w()nder.irig::l.v1wt>. at'f~s and.caimvais. :;~... :{)ling i!~tivities StemS,..from my...:w~h~pp~g:_afl?r,hl~i!jieear~. ~Yo:t~.9#e,.D.di:he'n, ed.t0' ex.:. bac].{grq1ffid as a divorce Iawy~t. hjvhl, :;tiad ep,d~4.'forig~;)t~~!of~!~d. f:h kcarm.val exception to.andalsqasthefriend or relativt=r Eventually; :.news :repof.ts..:r~.jielp fliifd tl,:teir. activities. AI~ of people who have lost thtdr vealedaloopliolefuthe1aw per- thoughiunderstandtheneedfor h~x,nes, destro~ed. :the.~.maz:.,. ~~~~~Iiri~during-~e,~~u>:::~~PP:rpJ?P..'~~!~ ~~~; :J. :re~p.rd.: :nage~, ~dermmed-thell' :fam,~ "~ lll::v;~hi~d:spmehqvvbeen n~awp:-/~-:~'{)ut}n1gy9.l'~'~t.yo~i qon't~;gtll'e -~ ilj'es ~cj ' derailed t,hejt. careers>!;.ulfitedz;.to'id:>eini;.tj.may(lf~$u.9~ ;:. oji~:. jjl::f,.lii:fu.trodl)giilg-:;.btiier... as a resuit of;a gambllilg ad die-'' ~:ooned Jigamblliig ~-to- cohtfutre :; one:_:a;ri<f, f:ro~y.ea!:i'of obser:va-. tio1i ThoseofuswhO'araold-t::ini >.:Un.abated.:t,.,: ::::;.:,._ :.. y.:. : '\:.. :~<: #<!J:i;l~.~$.S.W.e,y,Q1.11:lJ.<:J.t.g~.;.. ers r~member what happened " ~ GriaJ:ii'$gambl:ib~li:iwisfolihd' ' blmgleatls'tomanyills~u:rifortu~.. wh~l,l'g:uamallowed widespread incha_pter~q.f}j G:~ Gllil.~.~;:. )}~t~ly,:we allwi.tnes.re.d,,a d~dly. grupbung. Dozens qf cars. ;w:ou~q notated: Basi~;:,:lli Jaw;pt,O:;:,.:exampl~ just a"few.:-days ago:. bt:i.. Par;ked in front of gambling vide~' '-th?t 'a: mif?_dea!eatrorc-,:is:''' ; ::::. ::Lef$ put. a stop' t<ijhis non-.-.rognt..' Frequently;.small ~~dill.~ ~y ofthe following: ' establishments ' late :'mto the co:nrinirtea when "a persqiedhes~.;: serise~ and encm,irage 'otir sena:..:.- 'tors to supporl-bill.sq:.u~ thai, if dren were left unattended. in»makes or accepts:a wager passed, Will repealj:he carnival. cars as their pareiits,gaml>led involving. money o:f any:thing of.'. exceptiorf:oilce.an4for ath '. the family~s fmarices, away.:. It... 'monetary value: lip,g~a:j;t'e- f.esj.ilf;':~;.. Bill Pesqh: isidfdmily taw w~ :~~~~~Iorqbl~ an~li.~~~nijjg. :pf:~]i~~~~~dn~~yj~ti.llii},:. ~e&;:~b{:~aftc::: /o~"};g~ AS a comm'upity; we fo.ok cie-.tbllig ofm<1pe~.y,81u~),fhlcp. contacthimthro'ugh~ltiswebsite':... finitive action arid oveiw1ielm-... he.kncnvslilis:oeeawagerea:ii:vi;,. ~Guam.FamilyLO.wOffic,e.eom..-.: ' -::-~ ; ;-~... pac.iflc,o~ily:-news M0nday,'.Apfi!-~4i:'2017 ~ -...._ '

88 _ ,..., ,"" -'V'A.V.:LII..&.' LV.l.VllY Rameriz and Rita Nauta; to the many people were in Sumay? entertainers and to Nick Perez Today it is hard to pinpoint - un dankolo na si Yu'us theexactlocationoftheoldvilma'ase. lage, for 85 percent is under This was an oppor:tunity to waterdueto.constructionofthe meet survivors. who braved the base, SRF and NSD. heat for the love of Sumay and Suinay consisted of about her people. We survived the 1~0 homes and 2,000 residents. bombing but remain devastat- It had four stores and a copra ed at the loss of our village. production plant. Her people It was asked why this event were farmers who raised livewas on base when most live in stock and fished. Back to Su Santa Rita? Where was Sumay? may is held on base because it is How many homes 'and how our birthplace, where we grew up, and it's J;ich with our history. Back to Sumay has brought us together, much like a class reunion, to share memories. Families were relocated to other places, for there is no returning to Sumay. I hope the new generations will continue to pass this legacy on: Once again, Biba Sumay! Juan T. Guzman is a resident of Santa Rita. Gambling problems outweigh benefits GERHARD SCHWAB I support Bill No toremove exemptions for casino gambling during the Liberation Day Carnival and. village fiestas, primarily for political and religious reasons. Annual Liberation Day celebrations are deeply rooted in Guam's history and current cultural practices. Even those of us who were not born yet in 1944 can well Schwab understand and appreciate what liberation from the Japanese occupation meant for the people of Guam at that time.. We also understand how different forms of gambling became part of these annual celebrations. However, as time passes, nation Day. once well-managed and well- The people who operate and regulated cultural practices make profit from the casino sometimes transform into or and the people who gamble get replaced by profit-seeking have very little or no relation enterprises, often disguised as with the village communities in some sort of community orient- which fiestas are celebrated. ed group or establish- Village fiestas are religious celment -like casino gam- ebrations to give thanks and to bling during Liberation honor village patron saints. Vii Day Carnival. lage fiestas should not be used We need to recognize as excuses for time limited that the means of casino gambling permits to casino opgambling do not justify erators. the end of paying for Several times over the past Liberation Day ex- years, the community of Guam penses. We need not only has evaluated the benefits and celebrate the liberation costs of gambling. Every time, from Japanese occupation, but the people of Guam concluded also ask about liberation for that the problems of gambling what. This is why I support the by far outweigh the benefits. closure of the Liberation carnival casino and why I suggest GerhardSchwab is professor the renaming of Liberation Day of social work and teaches at into Liberation/Self-Determi- the University of Guam. ~USI'IIIIIIT A LETIER We welcome your comments on editorials, columns and other topics in the Pacific Daily News about subjects important to you.»only submissions-that include name, address, village of residence and contact numbers, and that are verified by the Pacific Daily News, will be considered for publication.» letters with facts or statements that can't ae substantiated won't be published. The burden of substantiation will be on the letter writer. >> letters must be previously unpublished, including on the internet. )) letters to the editor of 300 or fewer words, and opinion/editorial columns of 550 pr fewer words have the best chance of being published. limited to one published letter a month.» All submissions may be edited for length, accuracy and clarity, and may be published or distributed in print, electronic or other forms.» letters to voice@guampdn.com or mail to Voice of the People, Box DN, Hagatfia, Guam » Opinions expressed by letter writers and columnists are their own and do not necessarily reflect those of the Pacific Daily News.» For more information, call Duane M. George at READER INFORMATION The Pacific Daily News, a member of the Gannett group of newspapers, is published daily at 244 Archbishop F.L Flores St., Hagatfia, Territory of Guam Entered as Periodicals Postage Paid at the U.S. Post Office, Hagatfia, Guam, under Act of Congress of March 3, POSTMASTER: Send address changes to The Pacific Dairy News, P.O. Box DN, Hagatfia, Guam USPS Guam rates, monthly Monday through Sunday: $22 Off-island rates, monthly First Class mail to U.S. mainland Monday through Sunday: $66.55 Other rates available on request. The publisher reserves the right to change subscription rates during the term upon 10 days notice. The notice may be by mail to the subscriber, by notice contained in the paper itself or otherwise. Subscription rate changes may be implemented by changing the duration o_f_ the subscription. All subscriptions must be

89 Mayors testify against bill removing gambling devices from carni - KUAM.com-KUAM News: On Air. Online. On Demand. 4/19/17, 5:26PM COMMUNITY SPORTS WEATHER LIFESTYLE Mayors testify against bill removing gambling devices from carnival Posted: Apr 19, :05PM Updated: Apr 19, :05PM By Krystal Paco CONNECT The Mayors Council of Guam is ~paring to face-off with Senator Telena Nelson and Bill ~, legislation that would remove gambling devices at the Liberation Day Carnival and other fair activities in Guam. MCOG Executive Director Angel Sablan said, "If she's going to go through with this, what is her alternative? To be able to support our festivities? Because if she has a funding source that's going to be supported by her colleagues then she can do what she wants. But our other question to her, are you just picking on liberation and fiesta and fairs sponsored by the mayors or do you really want to stop all gambling she said, well she'll take it a step at a time. I don't know what that means." The MCOG already anticipates this year's festivities will come at a price tag of $650,000. The public hearing on the measure is set for Thursday at 9am at the Guam Congress Building. Page 1 of 2

90 Mayors: Bill would cut largest funding source for Liberation festivities I Guam News I postguam.com 4/19/17, 5:48PM 'ips:/ / -largest-funding-source-for-liberation-festivities/article_6271 b62a-1 aa7-11 e 7-82a2- _,60a159432d.html Mayors: Bill would cut largest funding source for Liberation festivities Tihu Lujan I The Guam Daily Post Apr 9, David Castro )OL DOWN: Island residents cool down with the help of Guam Fire Department fire trucks during tne Liberation Day Parade in this 2016 file photo. The island's mayors are strongly opposing a bill that would eliminate organized gambling during Liberation festivities and village fiestas. Post file photo An act to repeal a portion of Guam law that allows for gambling to occur during the Liberation Carnival and festivities among other village carnival or fair events was introduced by Sen. Telena Nelson during legislative session on March 22. Bill 50-34, introduced by Nelson, would essentially outlaw casino operations during the Liberation Carnival's 70-day celebration, as well as the occasional casino gambling opportunities allowed during village fiestas. "Public offices are becoming dependent on profits from professionally managed and equipped gambling enterprises at the Liberation Carnival fair grounds that are otherwise prohibited from operating under the laws of Guam," the bill stated. "The public, by referendum, confirmed public policy https :ffwww. postguam.com/newsflocal/mayors-bi 11-wou ld-cut -largest-fu... ration-festivitiesfarticle_6271 b62a-1 a a 7-11 e 7-82a2 -ef60a159432d.html Page 1 of 4

91 Mayors: Bill would cut largest funding source for Liberation festivities I Guam News I postguam.com 4/19/17, 5:48PM against casino-style gambling. The public is now concerned about the lack of transparency about the process of authorizing and regulating the ~_activities, and the extent of gross proceeds extracted from patrons." However, there is a consensus among local village mayors who strongly oppose the measure, said Mayors' Council of Guam Executive Director Angel Sablan. "Many of the players that people believe are gamblers are not here on Guam anymore," Sablan said. "They fly off to Saipan or to the Philippines because that's where the big casinos are at. This casino is a misnomer on Guam, it's not a casino." Looming budget According to Sablan, the bill would also make it extremely difficult for the council to raise enough money for the annual carnival, parade and other Liberation Day-related events that cost upwards of $650,000 every year. He said that while the casino used to bring in about $800,000 annually for the carnival, that number has recently dropped to about $400,000 presently, which still funds a majority of the Liberation festivities....jablan said the mayors' council would have to "cut down on everything" if Nelson's bill passed. Currently, the council pays at least $100,000 just for the fireworks display; $75,000 for power and utilities; and $50,000 for security, among other' costs. "Instead of having 20-minute fireworks shows, maybe just have it at three minutes. Or instead of having entertainment every night, maybe just on the weekends. Even security might have to be volunteers from mayors' offices," Sablan said. Sinajana Mayor Robert Hoffman, who is on the Liberation Carnival Committee, said festivities would likely not be able to go on at all if the bill passed. Halting casino operations would result in the cancellation of the Liberation Day festivity's main fundraiser, and would require an appropriation from the government at that point, he said. "There'd be no parade, no fireworks. We would probably relegate it to a few memorials that are fitting and that would be it," Hoffman said. "The money raised by concessions has always offset the cost of hosting the ~lebration, that has been done for 72 years. If she (Nelson) feels that is {www. postguam.com/newsflocalfmayors-bill-would-cut-la rgest-fu... ration -festivities/article_6 271 b62a-1 a a 7-11 e 7-82a2 -ef60a d. html Page 2 of 4

92 Mayors: Bill would cut largest funding source for Liberation festivities 1 Guam News 1 postguam.com 4/19/17, 5:48PM how the people of Guam have spoken, then I think people would be more upset to know that their tax dollars are being spent for parades when there _are other things that are needed for the community." Unfair to mayors While other means of fundraising for the large annual event consist of village concession stands, selling raffle tickets, corporate sponsorships and in-kind donations, Hoffman said these avenues "are not what pull in thousands and thousands of dollars." Requiring a budget of at least $650,000 to host the Liberation Carnival and festivities, Hoffman said the funds raised from the casino usually account for around 80 to 90 percent of that budget. More pressing, Hoffman and Sablan felt that Nelson targeted island mayors. According to them, Nelson did not meet or communicate with the council before introducing the bill that would essentially eliminate the largest funding source for the upcoming Liberation Carnival and festivities. "If you're really concerned about the state of gaming on Guam, then go after the game rooms, the bingos, the raffles and all that other stuff, then ou can come back and say it's even. Otherwise, you're just being unfair,", 1offman said. "If she's trying to target crime, then why not go that way? There's bingo all over the island that exists; there's still lottery at Pay-Less; there's all these things that are happening." With their largest source of funding looming over their heads, Hoffman and Sablan hope to voice their concerns to Nelson before any other action takes place, especially in the spirit of celebrating the island's longestrunning annual and commemorative event. "That's really the ultimate reason why we're here- to remember, commemorate, educate and celebrate," Hoffman said. "The whole part is to remember this huge sacrifice our people gave and the sacrifices of the armed forces, so if she wants to do away with that, I think you'll have a very hard time finding someone willing to chair or organize the event based on a zero budget or the kindness of everybody else." As of press time, Nelson had not returned calls to The Guam Daily Post for comment. ihu Lujan postguam.com/news/locaijmayors-bi 11-would-cut -largest-fu... ration-festivities/article_6271 b62a -1 a a 7-11 e 7-8 2a2 -ef60a159432d.html Page 3 of 4

93 Bill would nix casino gambling from Liberation Carnival - KUAM.com-KUAM News: On Air. Online. On Demand. 4/12/17, 8:46AM COMMUNITY SPORTS WEATHER LIFESTYLE Bill would nix casino gambling from liberation Carnival Posted: Mar 24, :23PM Updated: Mar 31, :23PM By Ken Quintanilla CONNECT Casino gambling could be banned at the Liberation Day Carnival if Bill 50 becomes law. Senator Telena Cruz Nelson says the bill is a step at closing the loophole for casino type gambling on Guam especially as voters rejected casino gambling five times in the past elections. "I hope this passes because gambling is an addiction that affects our families in our communities and if we have the ability to do good, then we should start having the courage to fight for what is right and what is good," the senator said. She says while Bill 50 will impact activities such as the color game, it will not prohibit bingo or cockfighting. Mayors Council of Guam President Paul McDonald does not support the bill saying it will have a big affect on revenues to even put on the carnival and pay for things like fireworks and entertainment. McDonald adds if casino gambling is banned, the mayors will most likely show no interest in taking over the carnival. He will push for a resolution from the Council in opposition. Bill 50 was co-sponsored by Speaker BJ Cruz who will assist Senator Nelson in offsetting lost revenue. An OPA report showed the government collected $32,000 in Fiscal Year 2015 from gambling activities at the Liberation Day carnival. Page 1 of 2

94 AUDIT: Mayors Council Hasn't Filed Liberation Carnival Reports for 3 Years 4/12{17, 8:46AM Tuesday, 22 September 2015 AUDIT: Mayors Council Hasn't Filed Liberation Carnival Reports for 3 Years Written by Janela Carrera (/local/author/4999-janela-carrera) NE\VS FIRST UVESTREAM I%2F5768&title=AUDIT%3A%20Mayors%20Councii%20Hasn%26%23039%3Bt%20File NEWS TALK 7k ftct:t:ed:"teta ~ lf-- ( stationcaiisign=kgum2) ( :~'l'fm@ftlftr.ji\!llllt:li~ ( stationcaiisign=kgum2) :ps:// r:rvl ( ~ ( ( Q. ttp:// ~ h... U"http%3A%2F%2Fpacificnewscenter.com%2Fiocai%2F5768&t=AUDIT%3A%20Mayors%20Councii%20Hasn%26%23039%3Bt%20Filed%2 ( ( url=http%3a%2f%2fpaciflcnewscenter.com%2fiocai%2f5768&title=audit%3a%20mayors%20councii%20hasn%26%23039%3bt%20file ( 'Xt=AUDIT%3A%20Mayors%20Councii%20Hasn%26%23039%3Bt%20Filed%20Liberation%20Carnivai%20Reports%20for%203%20Years! ( mini=true&url=http%3a%2f%2fpacificnewscenter.com%2fiocai%2f5768&title=audit%3a%20mayors%20councii%20hasn%26%23039% (/media/k2/items/cache/55c77c4359e21 Ode a929d483_xl.jpg) The last time the Mayors' Council of Guam submitted reports for its Liberation Carnival was in 2012, when it was still being operated by the MCOG. The Liberation Carnival is now operated by an appointed non-profit. Guam- For the third year in a row, the Mayor's Council of Guam has failed to file a report on its Liberation Day Carnival festivities, according to the Office of Public Accountability. In addition, the OPA says the Mayor's Council continues to submit disorganized and incomplete reports. The OPA conducted its annual audit of the Mayor's Council, however, the OPA report states that they haven't been able to conduct an audit on the Liberation Carnival finances because no reports have been filed since Page 1 of 2

95 AUDIT: Mayors Council Hasn't Filed Liberation Carnival Reports for 3 Years This is in spite of repeated requests for the reports for years 2013, 2014 and These years coincide with the years that the laws changed for the Liberation Carnival. Prior to 2013, it was operated by the Mayor's Council; after 2013, the Mayor's Council appointed the Guam Liberation Historical Society, made up some village mayors, to take charge of the carnival, which usually happens over the surnmer months.,ere have been some controversies surrounding the Liberation Carnival and its questionable operations. In June this year, a local businessman sued the Mayor's Council and the Historical Liberation Society after they abruptly canceled a bidding process for a contract to operate the carnival. The Liberation Society canceled the bid because they had decided to run the carnival in-house instead. The case was eventually dismissed, but the businessman, Jiu Sen Zheng, is appealing the decision. Meanwhile, the OPA's fmancial highlights also criticizes the Mayor's Council and various villages for their inaccurate reporting that's resulted in thousands of dollars in questioned costs for f1scal year In fact, they were given a "qualified" opinion for their Non-Appropriated Funds. For example, eight villages, Agana Heights, Mangilao, Merizo, Santa Rita, Talofofo, Umatac and Yona, did not issue receipts or were missing receipts, deposit slips and other documents. Other villages like Asan-Maina, lnarajan and Yona were writing checks made payable to "cash;' while deposits and disbursements could not be verified. Two villages, Agat and Umatac, failed to provide minutes for its Municipal Planning Council meetings, which would ratify the actions of the Mayors. Further, the OPA says 11 villages had no formal procurement policy. lnarajan, for example, the OPA says they failed to file supporting documentation for a contract that was awarded to a vendor that turned out to be more expensive than the lowest bidder. Some villages never advertised for contracts that exceeded $1 5,000 as required by law, the report states. The OPA found that as a result, $49,000 of deposits and $13,000 of disbursements could not be verified. In fact, the Mayors' Council of Guam, according to the OPA, had a cash disbursement issue of $174,000. You can read the financial highlights by clicking on the file below. Published In Government (/local/content/14-government/) Download attachments: mayors_councilaudilflnancialhighlights.pdf (lmedia/k2/attachments/mayors_councilaudit_fmancialhighlights.pdf) Login to post comments back to top (l!ocal/5768#startofpa9.!llillli..a} Copyright 2015 Pacific News Center. Ali Rights Reserved. TERMS & CONDITIONS ( 1 CONTACT US ( SMG Public Files (/smg-publlc-files) Sorensen Main Site ( Page 2 of 2

96 Gmail- Fwd: Fwd: Robert O'Mallan To: Jennifer Louise Dulla Mon. Apr 10, 2017 at 9:26AM Forwarded message From: Robert O'Mallan Date: Mon. Apr 1 0, 2017 at 9:26 AM Subject: To: Robert O'Mallan <robertomallan86@gmail.com> Mayors: Bill would cut largest funding source for Liberation festivities Tihu Lujan 1 The Guam Daily Post Apr 9, hrs ago (4) Robert O'Mallan office of senator telena nelson Page 1 of 4

97 Gmail- Fwd: 4/10/17, 10:28 AM An act to repeal a portion of Guam law that allows for gambling to occur during the Liberation Carnival and festivities among other village carnival or fair events was introduced by Sen. Telena Nelson during legislative session on March 22. Bill 50-34, introduced by Nelson, would essentially outlaw casino operations during the Liberation Carnival's 70-day celebration, as well as the occasional casino gambling opportunities allowed during village fiestas. "Public offices are becoming dependent on profits from professionally managed and equipped gambling enterprises at the Liberation Carnival fair grounds that are otherwise prohibited from operating under the laws of Guam," the bill stated. "The public, by referendum, confirmed public policy against casino-style gambling. The public is now concerned about the lack of transparency about the process of authorizing and regulating the activities, and the extent of gross proceeds extracted from patrons." However, there is a consensus among local village mayors who strongly oppose the measure, said Mayors' Council of Guam Executive Director Angel Sablan. "Many of the players that people believe are gamblers are not here on Guam anymore," Sablan said. "They fly off to Saipan or to the Philippines because that's where the big casinos are at. This casino is a misnomer on Guam, it's not a casino." Looming budget According to Sablan, the bill would also make it extremely difficult for the council to raise enough money for the annual carnival, parade and other Liberation Day-related events that cost upwards of $650,000 every year. Page 2 of 4

98 Gmail- Fwd: 4/10/17, 10:28 AM He said that while the casino used to bring in about $800,000 annually for the carnival, that number has recently dropped to about $400,000 presently, which still funds a majority of the Liberation festivities. Sablan said the mayors' council would have to "cut down on everything" if Nelson's bill passed. Currently, the council pays at least $100,000 just for the fireworks display; $75,000 for power and utilities; and $50,000 for security, among other costs. "Instead of having 20-minute fireworks shows, maybe just have it at three minutes. Or instead of having entertainment every night, maybe just on the weekends. Even security might have to be volunteers from mayors' offices," Sablan said. Sinajana Mayor Robert Hoffman, who is on the Liberation Carnival Committee, said festivities would likely not be able to go on at all if the bill passed. Halting casino operations would result in the cancellation of the Liberation Day festivity's main fundraiser, and would require an appropriation from the government at that point, he said. 'There'd be no parade, no fireworks. We would probably relegate it to a few memorials that are fitting and that would be it," Hoffman said. "The money raised by concessions has always offset the cost of hosting the celebration, that has been done for 72 years. If she (Nelson) feels that is how the people of Guam have spoken, then I think people would be more upset to know that their tax dollars are being spent for parades when there are other things that are needed for the community." Unfair to mayors While other means of fund raising for the large annual event consist of village concession stands, selling raffle tickets, corporate sponsorships and in-kind donations, Hoffman said these avenues "are not what pull i.n thousands and thousands of dollars." Requiring a budget of at least $650,000 to host the Liberation Carnival and festivities, Hoffman said the funds raised from the casino usually account for around 80 to 90 percent of that budget. More pressing, Hoffman and Sablan felt that Nelson targeted island mayors. According to them, Nelson did not meet or communicate with the council before introducing the bill that would essentially eliminate the largest funding source for the upcoming Liberation Carnival and festivities. "If you're really concerned about the state of gaming on Guam, then go after the game rooms, the bingos, Page 3 of 4

99 Gmail- Fwd: 4/10/17, 10:28 AM the raffles and all that other stuff, then you can come back and say it's even. Otherwise, you're just being unfair," Hoffman said. "If she's trying to target crime, then why not go that way? There's bingo all over the island that exists; there's still lottery at Pay-Less; there's all these things that are happening." With their largest source of funding looming over their heads, Hoffman and Sablan hope to voice their concerns to Nelson before any other action takes place, especially in the spirit of celebrating the island's longest-running annual and commemorative event. "That's really the ultimate reason why we're here- to remember, commemorate, educate and celebrate," Hoffman said. "The whole part is to remember this huge sacrifice our people gave and the sacrifices of the armed forces, so if she wants to do away with that, I think you'll have a very hard time finding someone willing to chair or organize the event based on a zero budget or the kindness of everybody else." As of press time, Nelson had not returned calls to The Guam Daily Post for comment. Robert O'Mallan office of senator telena nelson Page 4 of 4

100 Gmail- Fwd: 4/6/17, 10:29 AM r=wd: Robert O'Mallan To: Jennifer Louise Dulla Thu, Apr 6, 2017 at 10:28 AM F01warded message From: Robert O'Mallan Date: Thu, Apr 6, 2017 at 10:27 AM Subject: To: Office of Senator Telena C. Nelson Liberation festivities in limbo with anti-gambling bill Written by Janela Carrera The Mayors Council says they would need an additional $650,000 appropriation if casino gambling is outlawed. Guam - A bill that proposes to ban all gaming during the liberation carnival could have some far reaching impacts. During a mayor's council meeting today, mayors expressed concern that the bill could lead to the cancelation of the annual Liberation Day parade. The bill was introduced by Senator Telena Cruz Nelson and proposes to prohibit all casino gambling during the liberation carnival with a few exceptions such as bingo and cockfighting. Casino gaming was allowed in recent years during liberation festivities which run during the summer time but the revenue generated from casino gaming is typically used to help pay for the liberation carnival, parade, the mayor's council and other non-profits. Mayors Council Executive Director Angel Sablan shared some of the organization's concerns regarding Senator Nelson's bill. 1 of 2

101 Gmail- Fwd: "So if this thing does go through we're gonna request that if you're going to make it into law you make it effective next year. Don't do it this year because we're already planning. Otherwise we need a $650,000 appropriation =from the government just to run the liberation or we give it up," Sablan said during the meeting. The bill was introduced last month amid controversy surrounding the carnival casino which has been permitted to operate on a limited basis during the rest of the year. The Mayor's Council is allowed to operate casino gaming during special village events like weekend fiestas. Anti-gambling groups protested this operation with concerns that it was being abused. "We have this bill that's looming over our heads. We don't know whether we're gonna be able to... but what we're doing actually now is planning the carnival based on what we've been having before," note Sablan. Without truly knowing the outcome of the proposal, Sinajana Mayor Robert Hoffman, who's also on the Liberation Carnival committee, says planning liberation festivities will be difficult. "I have no problem doing it but like I said I've been waiting for, requested and waiting for it for the last two-and-a-half months... everything," explained Hoffman, referringn to documents. "I need to know where we are, I need to know our cash position, the bank needs it turned over so I can do the transition on it. I can't do the audit of last year without it. We're afraid to move forward because we don't, I mean we can't offer any of this. We can't design a carnival, not until we have [more]." Robert O'Mal/an office of senator telena nelson Robert O'Mallan office of senator telena nelson Page 2 of 2

102 Guam records 79 burglaries in a single month - KUAM.com-KUAM News: On Air. Online. On Demand. NEWS COMMUNITY SPORTS RADIO VIDEO WEATHER ABOUT LIFESTYLE Guam records 79 burglaries in a single month Posted: Jul21;?/2013iff'33 PM Updated: Ju/22, :22PM by Jolene Taves Guam - Robberies, burglaries and home invasions, an increase in reports have turned the spotlight on crime. From June 4th to July 5th GPD received 79 reports of burglaries to residences and businesses and 59 burglaries were reported to vehicles. These statistics are alarming while these crimes happen throughout the island, spokesman Lt. Art Paulino shares that some areas are prone. "We are seeing quite a number of burglaries being committed in the central area, specifically Barrigada, but more so in the Agana Heights-Sinajana area but still statistically I think it's in the Dededo area," he shared. While some burglaries are committed by juvenile offenders, according to Paulino often times burglaries are fueled by a drug or gambling addiction and are deemed crimes of opportunity where the payout outweighs the chances of capture. "When they are looking at crimes against property you discover that reason purpose of the break~ins is that they are trying to flncl cheap C:ash jewelry what can they sell off really quick to be able to support a drug habit and or gambling habit," he said. While the Legislature has been working on measures aimed at protecting our community,.here are some key tips to remember in lowering your home's risk of being targeted. "Turn your lights on when you're there or not there leave your Page 1 of 3

103 Guam records 79 burglaries in a single month - KUAM.com-KUAM News: On Air. Online. On Demand. 4/19/17, 4:37PM lights on if you have newspapers delivered to your homes do not let the newspapers sit out there make sure someone is collecting the paper always make it seem like someone is actually home you could do that by turning on the radios," he said. He adds that making it appear as though someone is home and not falling into a routine or noticeable pattern of behavior are key. It only takes one cracked window or unlocked door to find yourself at a loss. There are additional safety measures that can be taken depending on your budget. Various security agencies offer a selection of services. G4S systems operation manager Ed Bitanga said, "We can offer alarm systems your basic intrusion alarm devices which covers doors, windows and basically it's an alarm system that has door contacts window contacts motion sensors." He adds the motion sensors if tripped will send an alert to the central monitoring system. Bitanga says these security systems can provide an additional peace of mind and the price range can vary from a couple of hundreds of dollars to thousands. While taking these precautions may not guarantee your home is completely secure... it may make perpetrators think twice /2013/07/Satu rday /guam-records-79-burgla ries-i n-a -single -month Page 2 of 3

104 Anu-gamoung groups cau on 1eaaers 10 snul aown nagama casmo- t\uaivi.com-1\uaivi News: un Air. unune. un uemano. COMMUNITY SPORTS WEATHER LIFESTYLE Anti-gambling groups call on leaders to shut down Hagatna casino Posted: May 17, :18PM Updated: May 17, :18PM By Nick Delgado I connect The Liberation Casino under construction in Hagatna, as the controversial issue stirring up anti-gambling groups who are now calling for lawmakers to hold the mayor's and the operators of the casino accountable. Let the games begin. Though there are a lot of players involved in this argument, it seems the casino operations will press on. Anti-gambling groups, Keep Guam Good and Lina'la Sin Casino are once again leading the opposition. An effort to wipe out the casino operations at the Liberation carnival. "Ultimately that's really what we want. We did away with what I call poker machines in every village and we devised Una Ia sin casino because they became a mini casino and it's bad for the people and the economy," said Dr. Jose Cruz. The day after KUAM reported the construction of the Liberation Casino on the Paseo grounds, the groups are calling on lawmakers to hold an emergency oversight on the Mayor's Council and the Guam Liberation Historical Society. "The Guam Historical Society but please don't give me a sham. You are raising money so that's the reason they are doing that. So they are putting it on the Guam Historical Society well ok there's a history of liberation but I think we are losing the essence of liberation," said Cruz. Cruz, Lina'la sin casino's president, has put a call out to the attorney general and the public auditor to investigate, as well. "Lina'la and Keep Guam Good all have good faith at heart about what they want to see for the island and we do too. We want to see the community grow. We want to see what's good for our family values. We want to see what's good for the revenue stream for the liberation day. We're open minded about the ideas and what the people's concerns are. But we also have to be realistic in how the monies come to pay for those operations," he said. Acting Governor Ray Tenorio responding to the concerns said, "The mayors indicate their priority is to take care of the interests of the people, and their communities need the revenue to finance these operations. In the absence of an appropriation which sufficiently take care of the financing, they rely on the casino and the other activities of the liberation." Senator Michael San Nicolas who chairs general government operations tells KUAM, "this is not an oversight issue as they are operating under the current legal framework." Liberation Carnival chair Mayor Robert Hoffman also saying in part, "Every year we go through this." He adds, "If I had it my way give the responsibility to someone else. We certainly don't need the criticism. We already have a ton of responsibility." Dr. Cruz also urged senators to vote this month on legislation that would do away with the Liberation casino. He said, "That's nice to know that they are hoping for that but as far as I am concerned I am not reporting that out yet until I get the complete report." 1/?

105 0/"ltl/LU"II Anu-gamo11ng groups call on 1eaaers m snur oown Magama casmo- t\uani.com-kuaivi News: un Air. un11ne. un uemana. Tax and finance chair Senator Joe San Agustin today confirming he still has unanswered questions, saying, "The mayors can't wait until the legislature acts on something. They have to anticipate that the revenues will be borne out of their activities, and we support the mayors and their request." Meantime, the construction is almost done. The building permit names Xiang Wang Construction Company as the applicant who is building it at a cost of $30,000. During a Rules Committee hearing today, Bill 50 was not included on this month's session agenda. Again, that measure would have forced the mayor's to cease casino operations immediately.as for the Tiyan casino? It has been turned over to Barrigada, which mayor June Bias says they will clean up and possibly use as a recreational facility. ios App Contact Us Our History And wid App TV Apps VIdeo EEO this site, <UAfvt ;\II Rights Reserved. Fonnom infnrmation on read our Prlv.:::;;:-,y Policy, and T0nns of Servkx-..:. and Ad Choices.

106 COMMITTEE ON RULES Senator Michael F.Q. San Nicolas, Chairman I Mina'Trentai Kuattro na Liheslaturan Guahan 34th Guam Legislature COMMITTEE REPORT CHECKLIST Part_{_/_L BILL NO (COR) AN ACT TO REPEAL OF CHAPTER 64, TITLE 9, AND TO AMEND 5205(a) OF CHAPTER 5, TITLE 11, OF GUAM CODE ANNOTATED, RELATIVE TO REMOVING EXEMPTIONS FOR GAMBLING AND POSSESSION OF GAMBLING DEVICES AT OR DURING THE LIDERATION DAY CARNIVAL AND OTHER FAIR OR CARNIVAL ACTIVITIES IN GUAM. Referred to: Committee on Education, Finance and Taxation; (A) FISCAL NOTE or WAIVER Senator Joe S. San Agustin, Chairoerson (11Requested by COR Da~~.& ~ime : ~YES o NO..3! 'Prn (2) Received by COR ~ES o NO Date & ~ime: 1 4/10 I 17.b:5;2...pm (3) Waived by COft Date & Time: oyes ~0 (4) Bill contains appropriations or authorizations for appropriations from any fund SO!Jl"ces? DYES E!!"NO If YES: (4/S)(a) Funding Availability Note/Waiver (OFB) attached? DYES D NO (Unable to file CMTE Report) (4/S)(b) Funding source identified? 2 GCA 9101 DYES i D NO (Proceed to (A)(6)) (5) Bill contains an authorization to expend govern~t funds? DYES 0 NO (6) Restrictions Against Unfunded Appropriations (2 GCA 91 01) D Identifies specific alternate funding source D De-appropriates from previous appropriation with available funds and fiscal note D Written certification by CMTE Chair that a situation exists which "threatens the safety, health and welfare of the community'' (4/S)(c) Funds available and sufficient? 2 GCA 9101 DYES D NO (Proceed to (A)(6)) If no boxes checked: UNABLE TO PLACE ON SESSION AGENDA 2 GCA 9102 GUAM CONGRESS BUILDING 163 CHALAN SANTO PAPA HAGATNA, GUAM TP1Pnhon<'' {t)71) 472-n4'l1 F.m:~il :~clclrf'ss' cori1h:1mipi1ishtnrf'@>l1m::~il.!~om

107 Committee Report Checklist on Bill No (COR) Part _l_j _j (1) Committee Notes: Report filed with COJU 0"'YES : D NO. (l)(a) Secondary CMTE Report filed with COR? YES D NO ~/A If NO: UNABLE TO PLACE ON SESSION AGENDA SR 6.04( d)(l) (C) COMMITTEE REPORT If YES: Date & Time: (2) LAND LEGISLATION. (a) Bill involves government taking, transfer, purchase, or lease _9fland? D YES D NO G"N! A (a)(l) Please indicate on both columns: (i) Type of (ii) Type of entity: transaction: o Goverrun.ent D Taking D Non-government D Transfer D Purchase D Lease (b) Bill involves legislative land rezoning? D YES D NO ~A (b)(l) Bill involves legislative rezoning of property zoned Agricul9Jral (A)? D YES D NO rjn/a If YES: ATTACH TWO (2) PROPERTY APPRAISALS TO CMTEREPORT SR 6.04(c)(4). 2 GCA 2107(b) If YES: INCLUDE Land Zoning Consideration Report 2 GCA 2110 If YES: INCLUDE Agricultural Consideration Report (Dept. of Agriculture) 2 GCA 2110 [Proceed to (b)(2)l (b )(2) Proof of Agricultural consideration report reviewed by Guam Land Use Commission? 21 9 A D YES D NO ~NIA., ~- ~ GUAM CONGRESS BUILDING 163 CHALAN SANTO PAPA HAGATNA, GUAM Telephone: (671) address: corguamlegislature@gmail.com -- ~ Page 3 of 4

108 Committee Report Checklist on Bill No (COR) Part _l_j_ l (B) PUBLIC HEARING (1) HEARING NOTICES SR 6.04(a)(l) and 6.04(a)(2), Open Government Law (5 GCA, Ch. 8). d (a) Five (5) working days prior (ALL Senators &. ALL Media) IV' (b) Forty-eight (48) hours prior (ALL Senators & ALL Media) (2) Date and Time of Hearing: t/lo/t1 q:ooctm (3) Location: fl\1\)q \; C- H.eC<A'-, n j Ro o(l'\~ GlUU(l Cofljl,a,SS Bl.M1d if\j Date and Time of Notice: 4-/ 13/!1 r;: D8 prn Date and Time of Notice: 4 fit /11 3': Od-- am or (4) HEARING WAIVED by Speaker in case of emergency SR 6.04(a)(l) D YES D NO ff"nia If YES: Attach memo indicating WAIVER (5) AMENDMENTS or SUBSTITUTIONS BY COMMITTEE SR 6.04(b) If YES: Date and Time: (a) Committee elects to substitute bill? D YES (a)(l) Vote sheet affirmative? -D -YES D NO (a)(2) Preliminary report filed with COR? SR 6.04(b)(2) D YES D NO (a)(3) Public Hearing noticed? D YES D NO (b) Bill materially different after committee amendment or substitution? D YES ~0 If YES: SECONDARY PUBLIC HEARING MAY BE REQUIRED SR 6.04(c)(3) D YES D NO COR Chair GUAM CONGRESS BUILDING 163 CHALAN SANTO PAPA HAGATNA, GUAM Telephone: (671) address: corguamlegislature@gmail.com - :... 4 Page 2 of 4

109 Committee Report Checklist on Bill No (COR) Part _l_j_ l. - (3) G.A.R.R. LEGISLATION SR 6.04(c)(l) 5 GCA 9301 and a) B_il,l involves approving or. ' If YES:... amending Rules and ' -. INCLUDcE Regulations? Economic Impact Statement o YES ono ~A 5 GCA 9301(d), 9301(e), 9301(f) (4) COMMITTEE REPORT COMPONENTS (a) Front Page Transmittal to Speaker (a)(l) COR Chair Signature Line -- ~ - (b) Title Page -- (c) Committee Chair Memo to All Committee Members (D) COMMITTEE REPORT (continued) (d) COR Referral Memorandum (e) Notice of Public Hearing & Other Correspondence (f) Public Hearing Agenda (g) Public Hearing Sign-in Sheet (h) Written Testimonies & Additional Documents (i) Committee Vote Sheet(s) (j) Committee Report Digest(s) (k) Bill History (k)(l) Copynfl5ill as introduced (k)(2) COR Pre~ Referral Checklist (k)(3) Copy of Bill as corrected by Prime Sponsor (if applicable)!jl+ (k)(4) Copy of Bill as amended/substituted by Committee (if applicable) (I) Fiscal Note/Waiver and Funding Availability Note (OFB) (m) Two (2) Property Appraisals (if applicable) (n) Related News Reports (optional) ( o) Miscellaneous (optional)!jia (p) <;ommittee Report Checklist(s) ~CMTE Report duly filed; Available for Placement on Session Agenda (E) COR Action 0 CMTE Report non-conforming ~ for acceptance; Return to Committee ( ~ ill.. IJ/.4- ~la- COR CHAIR ate & Time) J:::) ~~ \\ \ :_ 1_ '1._ ri, ci ~ u( ci [i2(' ti d. rsi ti a{ l!6 0' llf 0 0 ~ 0 ~ 0 ri,. GUAM CONGRESS BUILDING 163 CHALAN SANTO PAPA HAGATNA, GUAM Telephone: (671) address: corguamlegislature@gmail.com Page 4 of4