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ATTORNEYS FOR APPELLANT FOUNDATIONS OF EAST CHICAGO, INC. Peter J. Rusthoven Mark J. Crandley Deborah Pollack-Milgate Paul L. Jefferson Indianapolis, Indiana ATTORNEYS FOR AMICI CURIAE SAINT STANISLAUS CHURCH AND SCHOOL, THE TWIN CITY MINISTERIAL ALLIANCE, AND THE NORTHWEST INDIANA FEDERATION, F/K/A INTERFAITH FEDERATION Kathleen A. DeLaney Amanda Couture Indianapolis, Indiana NEIGHBORS INCORPORATED OF HAMMOND, INDIANA, ST. CATHERINE HOSPITAL, INC., WORKFORCE DEVELOPMENT SERVICES, INC., CALUMET COLLEGE OF ST. JOSEPH, INC., JANELLE SCOTT, AND THE HON. WILLIAM H. HUDNUT Stephen J. Peters David I. Rubin Indianapolis, Indiana

ATTORNEYS FOR APPELLEES CITY OF EAST CHICAGO James A. Knauer William Bock, III Steven E. Runyan Indianapolis, Indiana STATE OF INDIANA Gregory F. Zoeller Attorney General of Indiana Thomas M. Fisher Solicitor General of Indiana Heather L. Hagan Deputy Attorney General Indianapolis, Indiana

FILED
May 18 2010, 11:26 am
of the supreme court, court of appeals and tax court

CLERK

In the

Indiana Supreme Court
No. 49S02-0908-CV-00383 FOUNDATIONS OF EAST CHICAGO, INC., SUCCESSOR BY MERGER TO EAST CHICAGO COMMUNITY DEVELOPMENT FOUNDATION, INC. AND TWIN CITY EDUCATION FOUNDATION, INC., Appellant (Plaintiff below), v. CITY OF EAST CHICAGO, Appellee (Defendant below), and

STATE OF INDIANA, Appellee (Intervenor-Defendant below).

Appeal from the Marion Superior Court, No. 49D13-0705-PL-019348 The Honorable S.K. Reid, Judge

On Petition to Transfer from the Indiana Court of Appeals, No. 49A02-0711-CV-00987

May 18, 2010

Shepard, Chief Justice.

At the outset of riverboat gambling in this state, the Indiana Gaming Commission issued a license for operation of a boat at East Chicago. It incorporated as a condition of this license the terms of a local economic development agreement between the operator and the City of East Chicago, with the result that certain gaming revenue flowed from the operator to several local entities. During its 2007 session, the Indiana General Assembly enacted a provision declaring that if the license at East Chicago transferred to a new operator (which it has), the City could void its agreement with the former operator.

The present appeal represents a challenge to the constitutionality of the 2007 legislation by certain recipients of the revenue. We conclude that the 2007 provision did not alter in any substantive way the statutory framework under which the Gaming Commission regulates licenses and license conditions, and thus find it unnecessary to rule on its constitutionality.

Facts and Procedural History

The original riverboat arrangements had been in place about a decade when a new city administration took office in East Chicago. The city government has been attempting to re-direct the considerable revenue (3.75% of the licensees adjusted gross gaming revenue) that has been

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distributed to four local entities: the City itself, two non-profit foundations, and a for-profit corporation. Our decisions in two previous appeals arising out of this effort contain substantial background and details about the resulting struggle. In City of East Chicago v. East Chicago Second Century, Inc., 908 N.E.2d 611 (Ind. 2009), we largely reinstated various claims the City had lodged against the profit and non-profit corporations receiving funds, and in Zoeller v. East Chicago Second Century, Inc., 904 N.E.2d 213 (Ind. 2009), we reinstated the Attorney Generals claims against the for-profit corporation.

In February 2007, as the foregoing suits were working their way through the court system, the two non-profits that were receiving funds (Twin City Education Foundation and East Chicago Community Development Foundation) dissolved themselves and merged their assets into a newly created non-profit called Foundations of East Chicago, Incorporated ("FEC"). (App. at 1918-24.) About ten weeks later, the Indiana General Assembly passed the states biennial budget. Tucked into the budget bill as Section 302 was the provision at issue today, a new subsection to Ind. Code

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