Legislature(1993 - 1994)

1994-05-10 Senate Journal

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1994-05-10                     Senate Journal                      Page 4622
SB 370                                                                       
Message of May 9 was read, stating the House passed and returned               
for consideration CS FOR SENATE BILL NO. 370(FIN) with the                     
following amendment:                                                           
                                                                               
HOUSE CS FOR CS FOR SENATE BILL NO.                                           
370(JUD)                                                                       
"An Act providing an exemption from gambling                                  
laws for gambling conducted by cruise ships for                                
their ticketed passengers in the offshore water of the                         
state; relating to promotions on board cruise ships;                           
defining `cruise ship'; providing for exemption                                
procedures for certain cruise ships before they can                            
conduct gambling in the offshore water of the state;                           
and providing for an effective date."                                          
                                                                               
Senator Sharp moved and asked unanimous consent for the adoption               
of the following House Letter of Intent No. 1.  Without objection,             
Legislative Letter of Intent No. 1 was adopted.                                
                                                                               
                             Letter of Intent No. 1                            
                                      for                                      
                             HCS for CSSB 370(JUD)                             
                                                                               
As originally introduced, SB 370 related only to offshore casino               
gambling on cruise ships.  During hearings on the bill, the Senate             
Judiciary Committee was advised of a practice  conducted by a few              
cruise  lines of  promoting to  its  passengers  particular  shoreside         
                                                                               
                                                                               

1994-05-10                     Senate Journal                      Page 4623
SB 370                                                                       
businesses in Southeast Alaska ports in exchange for a fee paid by             
the business to be promoted.  In an effort to put a stop to this               
practice in Alaska, and with the full support of those cruise lines            
advocating the passage of SB 370, the Senate Judiciary Committee               
adopted a provision in the bill to make it an unlawful trade practice          
under AS 45.50.474 to conduct such onboard promotions unless the               
cruise operator fully disclosed to its passengers that the business            
being promoted, mentioned or featured had paid a fee for that                  
purpose.  The Senate passed the bill with this provision included in           
it.                                                                            
                                                                               
When SB 370 was heard by the House Finance Committee, that                     
Committee went even further and banned outright the practice of                
cruise ship promotions of named shoreside businesses in exchange               
for fees.  The Legal Services Division of the Legislative Affairs              
Agency has advised that the outright ban of this practice raises               
serious constitutional issues.  The Legislature prefers an outright ban        
as a matter of public policy.  However, rather than risk a successful          
constitutional challenge and being left with no regulation of cruise           
ship promotions on the books, the Legislature believes that the                
approach adopted by the Senate Judiciary Committee is preferable to            
adopting a provision that is vulnerable to constitutional attack.  The         
Legislature does, however, wish to express its strong condemnation             
of this practice and its hope that cruise lines visiting Alaska ports          
will, as a matter of good public policy, not engage in the practice            
at all.                                                                        
                                                                               
Senator Sharp moved and asked unanimous consent for the adoption               
of the following House Letter of Intent No. 2.  Without objection,             
Legislative Letter of Intent No. 2 was adopted.                                
                                                                               
                             Letter of Intent No. 2                            
                                      for                                      
                             HCS for CSSB 370(JUD)                             
                                                                               
It is the intent of the House Judiciary Committee                             
that the exemption fee for cruise ships collected                              
under Section 1 (b) of this bill, shall be separately                          
accounted for and may be appropriated for tourism                              
promotion.                                                                     
                                                                               

1994-05-10                     Senate Journal                      Page 4624
SB 370                                                                       
Senator Taylor moved that the Senate concur in the House                       
amendment.                                                                     
                                                                               
The question being:  "Shall the Senate concur in the House                     
amendment to CS FOR SENATE BILL NO. 370(FIN)?"  The roll                       
was taken with the following result:                                           
                                                                               
HCS CSSB 370(JUD)                                                              
Shall the Senate concur in the House                                           
amendment to CSSB 370(FIN)?                                                    
                                                                               
YEAS:  11   NAYS:  9   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Duncan, Ellis, Frank, Jacko, Kelly, Little, Rieger, Salo, Sharp,        
Taylor, Zharoff                                                                
                                                                               
Nays:  Adams, Donley, Halford, Kerttula, Leman, Lincoln, Miller,               
Pearce, Phillips                                                               
                                                                               
Kelly changed from "Nay" to "Yea".                                             
Adams changed from "Yea" to "Nay".                                             
Jacko changed from "Nay" to "Yea".                                             
                                                                               
and so, the Senate concurred in the House amendment, thus passing              
HOUSE CS FOR CS FOR SENATE BILL NO. 370(JUD) "An Act                           
providing an exemption from gambling laws for gambling conducted               
by cruise ships for their ticketed passengers in the offshore water of         
the state; relating to promotions on board cruise ships; defining              
`cruise ship'; providing for exemption procedures for certain cruise           
ships before they can conduct gambling in the offshore water of the            
state; and providing for an effective date" with Legislative Letters of        
Intent.                                                                        
                                                                               
Senator Taylor moved the effective date clause.                                
                                                                               
The question being:  "Shall the effective date clause be adopted?"             
The roll was taken with the following result:                                  
                                                                               
HCS CSSB 370(JUD)                                                              
Effective Date                                                                 
                                                                               
YEAS:  20   NAYS:  0   EXCUSED:  0   ABSENT:  0                              
                                                                               

1994-05-10                     Senate Journal                      Page 4625
SB 370                                                                       
Yeas:  Adams, Donley, Duncan, Ellis, Frank, Halford, Jacko, Kelly,             
Kerttula, Leman, Lincoln, Little, Miller, Pearce, Phillips, Rieger,            
Salo, Sharp, Taylor, Zharoff                                                   
                                                                               
                                                                               
The Secretary was requested to notify the House.                               
                                                                               
SB 370                                                                       
HOUSE CS FOR CS FOR SENATE BILL NO. 370(JUD) was                               
referred to the Secretary for enrollment.