After record week, a quiet open for US stocks

NEW YORK — U.S. stock indexes are mixed in early trading as the market comes off its latest record high last week.

The Dow Jones industrial average edged up 22 points, or 0.1 percent, to 16,740 in the first few minutes of trading Monday.

The Standard & Poor's 500 index fell less than a point to 1,922. The Nasdaq composite fell nine points, or 0.2 percent, to 4,232.

Broadcom jumped 10 percent after saying it would seek a buyer for its division that makes chips used in cellular devices.

European markets rose slightly.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.51 percent, up slightly from 2.48 percent late Friday but still near its low for the year.

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Russia gives Ukraine more time to reach gas deal

BRUSSELS — Russia on Monday granted Ukraine another week before it will start demanding prepayment for gas, without which it has threatened to cut off supplies.

The announcement by Russia's state gas company Gazprom came at the outset of a second round of European Union-mediated talks aimed at resolving the two countries' dispute over gas prices and outstanding debt.

The negotiations in Brussels will be chaired by EU Energy Commissioner Guenther Oettinger and feature both countries' energy ministers.

Officials are seeking to avoid an interruption of gas deliveries to Ukraine, which could also disrupt supplies for western Europe because Ukraine is an important gas transit country.

Gazprom extended its initial deadline for requiring gas prepayment from Tuesday to next Monday after receiving a payment of $786 million from Ukrainian gas company Naftogaz for the February and March supplies, the Russian company's Chief Executive Alexei Miller said. A decision on whether to charge Ukraine for gas in advance will now depend on whether Kiev pays its dues for April and May supplies, he added.

Moscow has put Kiev's gas debts dating back to November at $3.5 billion, and Miller said last week that gas delivered in May could take it up to $5.2 billion.

Ukraine, which saw price discounts granted by Russia canceled following the ouster of pro-Russian President Viktor Yanukovych, has been seeking a new price agreement before settling debts.

Gazprom scrapped a discount granted to Yanukovych in December and then another rebate linked to a 2010 deal on Russian navy presence in Ukraine's Crimea region, which Moscow annexed in March. Canceling the discounts raised the price by 80 percent.

Yanukovych fled to Russia in February after months of protests, triggered by his decision to dump a pact with the EU in favor of closer ties with Moscow.

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Nataliya Vasilyeva in Moscow contributed reporting.

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US construction spending up 0.2 percent in April

WASHINGTON — U.S. construction spending posted modest gains in April, driven by an uptick in home building and government construction that lifted total activity to the highest level in five years.

Construction spending rose 0.2 percent in April to a seasonally adjusted annual rate of $953.5 billion, the strongest performance since March 2009, the Commerce Department said Monday. The April increase was lower than economists had expected. But the government revised March activity higher to a 0.6 percent gain, up from an initial estimate of a 0.2 percent increase.

The small April improvement, combined with the strong gain in March, suggest that the construction industry is recovering from the harsh winter and will provide a boost to growth in the months ahead.

The April figure marked the third straight increase after the weather pushed spending down 0.4 percent in January. Construction activity dragged the overall economy in the first quarter when gross domestic product actually shrank.

The overall economy contracted at an annual rate of 1 percent in the January-March quarter. Analysts estimate growth to recover to a rate of around 3.8 percent in the April-June period. The expectation is that strong gains in hiring will help lift consumer spending. Other sectors including construction should also bounce back.

In April, residential construction edged up a slight 0.1 percent. It was the lowest monthly gain since an outright decline last October. However, the small increase followed strong gains over the past five months and was enough to lift spending on housing to a seasonally adjusted $378.5 billion, the highest level since March 2008.

Spending on single-family home construction was up 1.3 percent, while spending on apartment construction rose 2.7 percent. Only the remodeling sector, which accounts for 40 percent of the total, posted a decline, falling 2.2 percent.

Spending on non-residential projects fell 0.1 percent to an annual rate of $308 billion with the weakness coming in the communications industry, where activity dropped 11.7 percent. Spending on hotels, office buildings and shopping centers all showed gains.

Government construction spending rose 0.8 percent to a rate of $267 billion. This sector has been struggling because of budget cutbacks at all levels of government. In April, spending on federal projects rose 1.9 percent to a rate of $23.5 billion. Spending on state and local projects was up 0.7 percent to $243.5 billion.

Total construction spending is 8.6 percent higher than a year ago, led by a 17.2 percent increase in housing construction. Non-residential construction is up by 5.6 percent from a year ago, while government projects are just 1.2 percent higher.

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US manufacturing expanded at slower pace in May

WASHINGTON — U.S. manufacturers grew at a slower pace in May as measures of orders and production fell. Factories also added jobs at a slower pace.

The Institute for Supply Management said Monday its manufacturing index fell to 53.2 last month from 54.9 in April. That's the lowest level since February. Any reading above 50 indicates expansion.

The retreat in the ISM's index is the latest sign that manufacturing activity is growing at only a modest pace.

A measure of prices paid by manufacturers jumped, a sign that factories are paying more for raw materials. If companies pass on those costs, that could lift inflation in the coming months.

The survey follows other recent manufacturing indicators that have painted a mixed picture.

Factory output fell in April as manufacturers produced less furniture, machinery and plastics, according to a Federal Reserve report in mid-May. The drop followed two months of strong gains and economists said it was likely temporary.

U.S. factories received more orders for long-lasting goods in April, the Commerce Department said last week. But the increase occurred because of a surge in demand for military aircraft. Excluding defense-related goods, orders actually fell.

And orders for core capital goods, a category viewed as a proxy for business investment plans, fell 1.2 percent in April. It was the weakest showing since a 1.9 percent January drop.

Still, Americans are purchasing cars at a healthy pace and most economists expect businesses to spend more on machinery and other equipment in the coming months. Companies cut back on such spending in the first three months of the year, setting the stage for a possible rebound.

Last year, U.S. factories were cranking out appliances, autos and other goods at a healthy pace until harsh winter weather descended. The ISM's index rose for six straight months until dipping slightly in December. That was followed by January's sharp fall.

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Obama carbon rule gives states more time to comply

WASHINGTON — In a sweeping initiative to curb pollutants blamed for global warming, the Obama administration unveiled a plan Monday that cuts carbon dioxide emissions from power plants by nearly a third over the next 15 years, but pushes the deadline for some states to comply until long after President Barack Obama leaves office.

The 645-page rule, expected to be finalized next year, is a centerpiece of Obama's plans to tackle climate change and aims to give the United States more leverage to prod other countries to act when negotiations on a new international treaty resume next year. Under the plan, carbon emissions would be reduced 30 percent by 2030, compared to 2005 levels, putting in motion one of the most significant U.S. actions on global warming.

The proposal sets off a complex regulatory process, steeped in politics, in which the 50 states will each determine how to meet customized targets set by the Environmental Protection Agency, then submit those plans for approval.

"The glue that holds this plan together — and the key to making it work — is that each state's goal is tailored to its own circumstances, and states have the flexibility to reach their goal in whatever works best for them," EPA Administrator Gina McCarthy said as she formally announced the proposal.

McCarthy characterized the proposal as "ambitious, but achievable."

Some states will be allowed to emit more and others less, leading to an overall, nationwide reduction of 30 percent.

Many states that rely heavily on coal will be spared from cutting a full 30 percent. West Virginia, for example, must cut 23 percent by 2030 compared to what the state was emitting in 2012. Ohio's target is 28 percent, while Kentucky and Wyoming will have to find ways to make an 18 percent and 19 percent cut.

On the other extreme, New York has a 44 percent target, EPA figures show. New York has already joined with other Northeast states to curb carbon dioxide from power plants, reducing the baseline figure from which cuts must be made. But states like New York can get credit for actions they've already taken, lest they be punished for taking early action on climate change.

Initially, Obama wanted each state to submit their plans by June 2016. But the draft proposal shows states could have until 2017 — and 2018, if they join with other states to tackle the problem.

That means even if the rules survive legal and other challenges, the dust won't likely settle on this transformation until well into the next administration, raising the possibility that political dynamics in either Congress or the White House could alter the rule's course.

Although Obama doesn't need a vote in Congress to approve his plans, opponents in Congress could attempt to block them, and some Republicans have already vowed to pursue that course. Scuttling the rules could be easier if Republicans take the Senate in November and then the White House in 2016.

Another potential flash point: The plan relies heavily on governors agreeing to develop plans to meet the federal standard. If Republican governors refuse to go along, as was the case with Obama's expansion of Medicaid, the EPA can create its own plan for a state. But the specifics of how EPA could force a state to comply with that plan remain murky.

S. William Becker, who heads the National Association of Clean Air Agencies, credited the rule for giving states more time to develop strategies and granting credit for previous steps to cut emissions.

"Still, the regulatory and resource challenges that lie ahead are daunting," Becker said.

Power plants are the largest U.S. source of greenhouse gases, accounting for about a third of the annual emissions. EPA data show power plants have already reduced carbon dioxide emissions by nearly 13 percent since 2005, meaning they are about halfway to meeting the administration's goal.

The EPA projected that carrying out the plan will cost up to $8.8 billion annually in 2030, but the actual costs will depend heavily on how states choose to reach their targets. The administration argued that any costs to comply are far outweighed by savings in health costs that the U.S. will realize thanks to reductions in other pollutants like soot and smog that will accompany a shift away from dirtier fuels.

Environmental groups hailed the proposal, praising both the climate effects and the public health benefits they said would follow. Former Vice President Al Gore, a prominent environmental advocate, called it "the most important step taken to combat the climate crisis in our country's history."

But energy advocates sounded the alarm, warning of economic drag. Senate Minority Leader Mitch McConnell, R-Ky., called the proposal "a dagger in the heart of the American middle class."

"If these rules are allowed to go into effect, the administration for all intents and purposes is creating America's next energy crisis," said Mike Duncan of the American Coalition for Clean Coal Electricity, which represents the coal industry.

Options for states to meet the targets include making power plants more efficient, reducing the frequency at which coal-fired power plants supply power to the grid, and investing in more renewable, low-carbon sources of energy. States could also enhance programs aimed at reducing demand by making households and businesses more energy-efficient. Each of those categories will have a separate target tailor-made for each state.

Coal once supplied about half the nation's electricity, but has dropped to 40 percent amid a boom in natural gas and renewable sources such as wind and solar. Although the new emissions cuts will further diminish coal's role, the EPA predicted that would still remain a leading source of electricity in the U.S., providing more than 30 percent of the projected supply.

Obama has already tackled the emissions from the nation's cars and trucks, announcing rules to reduce carbon dioxide emissions by doubling fuel economy. That standard will reduce carbon dioxide by more than 2 billion tons over the life of vehicles made in model years 2012-25. Calculations based on EPA figures show the proposal will prevent about 430 million tons of carbon dioxide from reaching the atmosphere.

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Reach Dina Cappiello at http://twitter.com/dinacappiello and Josh Lederman at http://twitter.com/joshledermanAP

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Suburban owner wonders why sunroof won’t close

The sunroof on my 2005 Suburban will not close. I turned on the ignition switch to lower the windows and open the sunroof to air out the interior a couple of weekends ago. I left the key on after opening the windows and discharged the battery to the point where the windows and sunroof would not close. I charged the battery and the windows closed, but the sunroof moved about an inch and stopped. To reprogram the sunroof, the manual states to push the switch to the vent position to start the programming process. However, the window is open and will not close to start the process. A Chevy dealership and a business that specializes in interiors and sunroofs did not have an answer or a possible solution without bringing it in.

According to the GM reprogramming instructions in my Alldata automotive database, even if the sunroof won't close when you push the switch to the vent position, hold the switch in this position for at least 30 seconds until you hear a slight clicking noise from the front of the sunroof — this should confirm the reprogramming was successful.

If this doesn't work, the sunroof assembly must be removed so that the motor can be removed and the guide pins pushed all the way forward to the stops. Good luck.

Several months ago my '05 Hyundai XG350 displayed an "air bag" message in my dashboard. I had my dealer perform a diagnostic test that informed me I had a "bad air bag" located in the driver's seat. The cost to repair: $1,500 for the part, plus labor. I declined. My brother has a mechanic friend who suggested I "turn on your cruise control." Within five minutes the airbag light went out. To this day, several months later, the airbag light has NOT come on. I have called several dealers and shops asking if another diagnostic test can be performed without the light on and they all replied they cannot do another test. I truly believe the "sensor" was the cause of this air bag message and that I do not have a bad air bag. Do you have any other suggestions?

Wow! Who ever said that automobiles cannot be "self-healing"? I have absolutely no idea how or why the operation of the cruise control would have any influence on a restraint system fault code, but I can tell you that if the air bag warning light flashes during its initial self-test when you first turn on the ignition, then goes out for the duration of your drive, there is no current fault with the system.

With that said, most 
"B-series" body codes will stay in memory until cleared by a scan tool. So it would seem the original DTC code for the airbag light should still be in the computer memory. You should have the dealer scan the body control module for any stored restraint system fault codes.

I have a 2005 Chevy Silverado 1500 with 115,000 miles on it. Just recently my gas gauge needle went from 3/4 to way over full and stayed there for several days and is now working fine. Yesterday my oil pressure gauge needle went from normal to off the gauge on the high end. I checked my oil level and it is in the normal range. What do you suggest?

GM issued several bulletins on this type of instrument cluster issue for your year truck and ultimately extended the warranty on these components out to several years/70,000 miles for parts and labor, and an additional 10,000 miles — a total of 80,000 miles — for parts only.

I wouldn't hesitate to ask the dealer to ask GM for some type of "customer goodwill" adjustment to help with the cost of the repair. If no help is available — your vehicle is significantly past the extended warranty — you'll have to choose whether to have it repaired or live with the condition.

Paul Brand, author of "How to Repair Your Car," is an automotive troubleshooter, driving instructor and former race-car driver. Readers may write to him at: Star Tribune, 425 Portland Ave. S., Minneapolis, Minn., 55488 or via email at paulbrandstartribune.com. Please explain the problem in detail and include a daytime phone number. Because of the volume of mail, we cannot provide personal replies.

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Cape Cod apartments for those with limited vision

YARMOUTH, Mass. — Life with limited vision can be challenging, but a partnership between a local nonprofit organization and a Cape Cod assisted living facility could make it a little brighter.

The Cove at Thirwood Place, located on Flax Pond in South Yarmouth, is now marketing a new low-vision support services program complete with apartments outfitted with technology to help residents read, cook and better manage their environment.

"We're equipping these apartments to make life easier for folks with low or impaired vision," said Larry Lyford, director of sales and marketing at Thirwood Place, during a recent tour of a prototype unit.

Lyford and a small army of other officials, including Cynthia Stead, who is executive director of Sight Loss Services Inc. Cape Cod and Islands and a Times columnist, showed off a device that warns a user before his or her cup literally runs over and a computer mouse that reads and digitizes text, enlarging it on a flat television screen.

"I always like to demonstrate them on telephone books," Stead said about the reader's ability to boost the size of small print.

The apartments also come equipped with an iPad loaded with applications to scan bar codes, read money (Lyford showed how it could discern a $5 bill in his hand) and read aloud the resident's calendar, news, weather and notes.

In the kitchen, adjustments ranged from the high tech (a talking microwave) to the simple (a cutting board colored black on one side and white on the other for contrast). The apartment also included a talking thermostat, thermometer and bathroom scale.

Stead and Thirwood officials said they expect the number of people with impaired vision on Cape Cod to continue to rise.

Last year, Sight Loss worked with 2,048 clients, including both individuals and institutions, Stead said. At least 1,500 of those are people with sight loss, she said. Barnstable County puts the number of legally blind residents at 1,900, she said.

"It's probably closer to 7,000," she said about the region's population with low or impaired vision. That could easily double in the next 10 years, she said.

The Cove low-vision apartments — which can be equipped to order — also come with dimmers on all the lights and a high-intensity task lamp, said Beth Patkoske, spokeswoman for the Davenport Cos., which owns Thirwood.

The company is working with other partners to provide even more services and to train its employees to be better-prepared for clients with limited vision, said Lyford and Paul Rumul, chief operating officer for Davenport.

"The thing that's going to make the difference is the staff, the care and compassionate follow-up," Rumul said.

The technology and services are available for a one-time added cost of $2,000, which pays for equipping the apartment, he said.

Because help at the Cove is available 24 hours a day, residents can be taught how to use the technology as often as necessary, Patkoske said.

Thirwood, which has 212 units on 45 acres, is also collaborating with Cape Cod Healthcare and a doctor who works specifically with individuals who have low vision, she said.

Thirwood also offers scribe services to read residents mail or write out cards for them, Rumul said.

This is important because, while the reader technology can read printed material, it still has trouble with most handwriting, Stead said.

"This isn't just new to the Cape," Stead said about the suite of services. "This is new to New England."

Despite research and progress at a significant cost, sight loss diseases are largely incurable, she said.

"It's a matter of managing a condition as long as you can," she said.

Rumul admits offering the low-vision services makes sense in other ways as well.

"This is just good business," he said.

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Philadelphia Inquirer co-owner dies in plane crash

PHILADELPHIA — Philadelphia Inquirer co-owner Lewis Katz was killed along with six other people in a fiery plane crash in Massachusetts, his business partner said Sunday.

Harold H.F. "Gerry" Lenfest confirmed Katz's death to The Associated Press, saying he was informed by their lawyer, Richard Sprague. The crash came just days after Katz and Lenfest gained full control of The Inquirer by buying out their co-owners for $88 million in a deal that ended an ugly monthslong feud among the partners.

The Gulfstream IV crashed as it was leaving Hanscom Field at about 9:40 p.m. Saturday for Atlantic City, New Jersey. There were no survivors.

The identities of the other victims weren't immediately released. Nancy Phillips, Katz's longtime companion and city editor at the Inquirer, was not on board.

Officials gave no information on the cause of the crash. They said the National Transportation Safety Board will investigate.

When bidding on the company, which also operates the Philadelphia Daily News and the news website Philly.com. Katz and Lenfest vowed to fund in-depth journalism to return the Inquirer to its former glory and to retain its editor, Bill Marimow.

"It's going to be a lot of hard work. We're not kidding ourselves. It's going to be an enormous undertaking," Katz said then, noting that advertising and circulation revenues had fallen for years. "Hopefully, (the Inquirer) will get fatter."

Katz, who grew up in Camden, New Jersey, made his fortune investing in the Kinney Parking empire and the Yankees Entertainment and Sports Network in New York. He once owned the NBA's New Jersey Nets and the NHL's New Jersey Devils and was a major donor to Temple University, his alma mater.

The fight over the future of the city's two major newspapers was sparked last year by a decision to fire the Inquirer's Pulitzer Prize-winning editor. Katz and Lenfest wanted a judge to block the firing. Katz sued a fellow owner, powerful Democratic powerbroker George Norcross, saying his ownership rights had been trampled. The dispute culminated last week when Katz and Lenfest, a former cable magnate-turned-philanthropist, bought out their partners.

Lenfest said Sunday that the deal to buy out the company will be delayed but will proceed.

Three previous owners of the company, including Norcross, said in a joint statement that they were deeply saddened to hear of Katz's death.

"Lew's long-standing commitment to the community and record of strong philanthropy across the region, particularly Camden where he was born and raised, will ensure that his legacy will live on," they said.

When the crash occurred, nearby residents saw a fireball and felt the blast shake their homes.

Jeff Patterson told The Boston Globe he saw a fireball about 60 feet high and suspected the worst.

"I heard a big boom, and I thought at the time that someone was trying to break into my house because it shook it," said Patterson's son, 14-year-old Jared Patterson. "I thought someone was like banging on the door trying to get in."

The air field, which serves the public, was closed after the crash. Responders were still on the scene Sunday morning.

Hanscom Field is about 20 miles northwest of Boston. The regional airport serves mostly corporate aviation, private pilots and commuter air services.

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Associated Press writer Rodrique Ngowi in Bedford, Massachusetts, contributed to this report.

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Obama to urge Europe to keep up pressure on Russia

WASHINGTON — President Barack Obama will press European leaders this week to keep up pressure on Russia over its threatening moves in Ukraine, while seeking to assuage fears from Poland and other NATO allies that the West could slip back into a business-as-usual relationship with Moscow.

Obama's four day trip to Poland, Belgium and France comes against the backdrop of successful national elections in Ukraine and signs that Russia is moving most of its troops off its shared border with the former Soviet republic. Yet violence continues to rage in eastern Ukrainian cities and there remains deep uncertainty about whether Ukraine's new president-elect can stabilize his country.

U.S. officials contend that, even with some signs of progress, Russia has not taken the necessary steps to ease tensions and could still face additional economic sanctions. Obama will look for Western allies to show a united front during a meeting of the Group of Seven major industrial nations that was quickly arranged after leaders decided to boycott a meeting Russia had been scheduled to host this week.

But at least some parts of Obama's visit will challenge the notion that the West has isolated Moscow. Russian President Vladmir Putin is scheduled to join U.S. and European leaders in France Friday for a day of events marking the 75th anniversary of the D-Day invasion at Normandy. Putin will also hold one-on-one talks with French President Francois Hollande, his first meeting with a Western leader since the Ukraine crisis began.

"Putin may not get to host the G-8 but if he gets to go to Normandy with everybody, it begins to diminish the appearance of isolation," said Steven Pifer, the former U.S. ambassador to Ukraine who now serves as a senior fellow at the Brookings Institution.

The White House says Obama will not hold a formal bilateral meeting with Putin, though the two leaders are expected to have some contact. Officials also disputed the notion that Putin's presence constituted a return to normal relations, noting that Obama and other leaders have talked with the Russian president throughout the crisis with Ukraine.

Yet those reassurances may be of little solace to NATO allies who sit near the Russian border, particularly Poland, where Obama will open his trip Tuesday. In April, the U.S. moved about 150 troops into Poland to try to ease its security concerns, but Obama is likely to get requests from Polish leaders for additional support.

"He's going to hear a very strong message from Polish officials that the mission has not been accomplished," said Heather Conley, a Europe scholar at the Center for Strategic and International Studies. "In fact, the work has only begun."

While in Warsaw, Obama will also meet with regional leaders who are in town to mark the 25th anniversary of Poland's first post-communist free elections. Among those leaders will be Ukrainian President-elect Petro Poroshenko, who won Ukraine's May 25 election and will hold his first bilateral meeting with Obama.

"We very much admired that the people of Ukraine have turned out in huge numbers to elect President-elect Poroshenko," said Ben Rhodes, Obama's deputy national security adviser. "We've admired his commitment to pursue dialogue and to aim to reduce tensions and put Ukraine on a positive path."

From Warsaw, Obama will head to Brussels to meet with leaders from the other G-7 nations: U.S., Britain, Germany, France, Italy, Canada and Japan. The wealthy nations will discuss ways to wean Europe off of Russian energy supplies, as well as gauge interest in levying more sanctions on Russia.

The U.S. and European Union have each sanctioned Russian businesses and individuals, including some people in Putin's inner circle, and threatened the prospect of broader penalties on Russia's key economic sectors. But with European nations that have close economic ties with Russia already wary of those sector sanctions, Obama is likely to face an uphill climb in cementing those commitments amid the recent signs of progress with Ukraine.

"I think there is no political appetite for further sanctions," Conley said of the European nations.

Many of the G-7 leaders will also travel to Normandy for the 70th anniversary of the Normandy invasion. But all eyes will be on Obama and Putin, who have a history of tense public encounters even before the Ukraine crisis worsened their relationship.

Obama and Putin will both attend a leaders' lunch and a ceremony at Sword Beach, one of the five main landing areas during the Normandy invasion. The U.S. president will also attend a separate ceremony at Omaha Beach, the largest of the assault areas during the June 6, 1944, invasion.

The president's trip comes during an intense stretch for his foreign policy agenda. He made a surprise visit to Afghanistan last week, followed by an announcement that he would be bringing the U.S. military commitment in Afghanistan to a close by the end of 2016. Obama also delivered a major foreign policy speech last week that aimed to push back at critics who say he has been too cautious, including in his dealings with Russia.

And on Saturday, the White House announced that the U.S. had freed Sgt. Bowe Bergdahl, the lone U.S. prisoner of the Afghan war, after nearly five years in custody.

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Follow Julie Pace at http://twitter.com/jpaceDC

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Gambling regulator to lawmakers: Revise casino law

BOSTON — Before the legislature breaks for summer, Massachusetts' top gambling regulator wants lawmakers to address parts of the 2011 casino law dealing with hiring and income tax collection.

But a leading lawmaker says the Democratic majority is not yet committed to approving the recommended changes in time for July's expected end of the legislative session.

Massachusetts Gaming Commission Chairman Stephen Crosby says the casino law's hiring provision should be amended before January, when Penn National Gaming is set to begin hiring new workers for its slot parlor at the Plainridge harness racing track in Plainville.

Crosby said the law's income tax requirements for gamblers could discourage prospective developers and make Massachusetts less competitive to its neighbors.

He pointed to concerns voiced by Wynn Resorts, which proposes a nearly $1.6 billion casino in Everett, and others.

"Some of the operators have said they would not go forward if that does not change," Crosby said. "If the legislature chooses to address it, it would be better to do it soon."

State Rep. Joseph Wagner, a Chicopee Democrat that co-chairs the Joint Committee on Economic Development and Emerging Technologies, which handles casino-related proposals, said Democratic leaders received the gaming commission's concerns last week and are weighing their next move.

"We'll see, given the short time frame, whether it materializes this year," he said. "But the reality that a license has already been awarded is cause for us to look at the issue sooner rather than later."

Wagner added that he supports addressing the income tax issue and remains "open to discussions" about amending the law's hiring provision.

In a May 20 memorandum to Gov. Deval Patrick and leading lawmakers, the gaming commission recommended raising the threshold for collecting state income tax withholding from the current $600 or more in gambling winnings to $1,200.

That would bring Massachusetts in line with the federal income tax withholding threshold and match a standard used in neighboring states.

The commission also called for lawmakers to allow discretion in the hiring of casino employees with criminal records.

Specifically, it is concerned about a provision that automatically disqualifies those convicted of "a felony or other crime involving embezzlement, theft, fraud or perjury" from being employed at gambling establishments, no matter how old the crime.

The commission says the provision could be a barrier to providing jobs to chronically underemployed people, which is a priority of the casino law.

"Obviously, you're going to have automatic disqualifications for people that work in the (casino) pit — the dealers and the other people that will be handling money," Crosby, the commission chairman, said this week. "But if you're working in a hotel or a restaurant, we feel that an automatic disqualification is too rigorous."

The two recommendations come after gambling operators requested a wide range of changes to the casino law.

The commission ultimately declined to recommend many of those suggestions; some they said could be addressed through administrative-level regulations and rules.

Both Wynn and MGM Resorts, for example, wanted guarantees that the state's 25 percent tax on gross gambling revenues would not change during the 15-year licensing period.

They also sought financial protections in case an Indian tribe-owned casino opens in Massachusetts, as well as relief from fees and other upfront costs if the casino law is repealed.

The state's highest court is expected to rule by July on whether a referendum to repeal the law should be allowed on the November ballot.

MGM, which proposes an $800 million casino in Springfield, has stressed that the suggested changes are not critical to their bid for a casino license.

And Mohegan Sun, which proposes a more than $1 billion casino on the Revere side of the Suffolk Downs horse-racing track, has said it will abide by the casino law as written.

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