Legislature(1993 - 1994)
04/17/1993 09:40 AM Senate FIN
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* first hearing in first committee of referral
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SENATE BILL NO. 58:
An Act relating to the longevity bonus program.
Recess 10:15am
Reconvene 10:18am
Senator Sharp MOVED for adoption of CSSB 58(FIN) work draft
"E" dated April 16, 1993. No objections being heard, it was
ADOPTED.
Senator Sharp said that the bill phased out all new
applicants to the longevity bonus program by December 31,
1996. It would stairstep down benefits that new applicants
can receive after January 1, 1994. Everyone already in the
program would continue to receive $250 a month. Section 2
said that if a person is disqualified from receiving a bonus
for purposes called for that they may not reapply for
application unless they apply before the cut-off date as set
forth in this legislation. Section 3, items 5 and 6, set
out certain disqualifications.
Co-chair Pearce said that it was intended that the draft
have a severability clause for the section that disallows
those seniors who move to Alaska after their eligibility
year.
In answer to Senator Kelly, Senator Sharp said that all
present situations, including medical leave, that are exempt
from disqualification remain so, and that only those that
become disqualified under present statutes have to reapply
under the new regulations.
NANCY BEAR USERA, Commissioner, Department of
Administration, spoke in support of CSSB 58(FIN). She said
the Governor's proposal had tried to protect the original
intent of the longevity bonus program which was to provide
uninterrupted residence and provide an opportunity and an
incentive for long-time Alaskans to stay in the state of
Alaska. Because of the lawsuit in 1983 that made terms of
the original program unconstitutional, the program now had
23,000 participants and is growing at a rate of $5 million a
year. Over the life of the program, this translates into
$150 million cost to the state to continue paying each
year's worth of new entrants into the program and
unaffordable. The resources spent on this not needs-based
program will be money unavailable to provide more meaningful
services to seniors in the future. The long term plan is to
protect participants and provide a reasonable phase out of
the program. She said that the department was in the
process of designing a package of bills that expand assisted
living opportunities for seniors as well as expand the
program "elders against abuse". This would provide a safety
net for the future with a more meaningful package for
current seniors and those to come. She said this was the
seventh year of debate of this issue and she felt it was
hard for the seniors for this issue to be remain undecided.
Once this issue was decided, the state could then move on
into other areas for seniors.
RIP ANDREWS, American Association of Retired Persons, said
that a letter had gone out to the committee regarding SB 58.
He said that his organization would prefer an annuity bill
but did support the Governor's phase out bill rather than
the House version which was an immediate cut off of January
1, 1994.
Co-chair Pearce said that additional language in the CSSB
58(FIN) was needed relating to disqualification on page 2,
lines 28 through page 3, line 1. She questioned the need
for a severability clause for Section 2. Senator Sharp said
that he had requested the advisability from legal on that
issue and was expecting an answer momentarily.
Co-chair Pearce announced that CSSB 58(FIN) would be held in
committee.
SB200
SENATE BILL NO. 200:
An Act allowing the holders of a multiple-beneficiary
charitable gaming permit that consists entirely of
noncommercial broadcasting stations or networks of such
stations to sell a pull-tab series at more than one
location during the same day if the sales are made at
the customary business location of one or more of the
holders, at another location by an employee of one of
the stations or networks, or by a registered vendor;
allowing permittees that are noncommercial broadcasting
stations or networks of such stations to contract with
vendors to sell pull-tabs on behalf of the permittee at
retail establishments, eating establishments, and
establishments with liquor licenses; allowing
municipalities to prohibit vendors from conducting
gaming activities within the municipality; relating to
reports by the commissioner regulating charitable
gaming to the legislature; requiring registration of
vendors; relating to multiple-beneficiary charitable
gaming permits and door prizes for charitable gaming;
preventing persons with felony convictions or
convictions for crimes involving theft or dishonesty or
a violation of gambling laws from being involved in
charitable gaming activities as a permittee, licensee,
vendor, person responsible for an activity, fund raiser
or consultant of a licensee, or employee in a
managerial or supervisory capacity and providing
exceptions for certain persons whose convictions are at
least 10 years old and are not for violation of an
unclassified felony described in AS 11, a class A
felony, or extortion; prohibiting a prize or award of
more than $250,000 in a pull-tab game that provides a
right to participate in a lottery; requiring a vendor
contracting with a permittee to pay the permittee at
least 50 percent of the ideal net for each pull-tab
series delivered to the vendor by the permittee; and
providing for an effective date.
Co-chair Pearce said that SB 200 was before the committee.
She pointed out that several years ago the legislature had
given public radio the authority to develop a statewide game
in order to raise money for an endowment to replace general
fund that are used to support public radio. She invited
Diane Kaplin, President & CEO, Alaska Public Radio Network,
to join the committee at the table and speak to the bill.
End SFC-93 #60, Side 1
Begin SFC-93 #62, Side 1
DIANE KAPLIN said that in 1967 a Presidential Carnegie
Commission created the concept of the public broadcasting
system in the United States. It set out the aspirations of
what the public broadcast system could do. One of the
important aspects was how the system would be financed and
that a tax would be collected on every television and radio
set sold in the U.S. That tax section was not adopted, and,
annually, a battle is fought over funds for financing pbs.
In Alaska, a very large percentage of our population
receives only public broadcasting, and it has become more of
an issue. The legislature has supported substantial amounts
of funding for public broadcasting with the investment at $6
million annually. With the decline of oil revenues in 1986,
public broadcast has been looking for new ways to raise
revenues recognizing a decline of state grants. Today, 32
percent of state grants have been lost. In 1986, all
stations carried the public national radio schedule, now
only three carry it because of the cost. Several countries
including Denmark, Canada, Norway, Finland and England use
games to finance their system. There was a federal law that
prohibited on air contests or games. PBS approached Senator
Stevens to get that federal law changed and in 1989 the
charity gaming act was signed. At that point, pbs in Alaska
approached the legislature and HB 587 was passed to allow an
on-the-air game. Last year, the legislature appropriated
$50,000 to hire experts to put together a game to fund an
endowment for support of pbs. Dave Rose, former member of
the permanent fund dividend corporation, was hired, and he
has set up a plan for an endowment trust fund. She
explained that SB 200 would allow pbs to move towards the
goal of setting up a game and the endowment. A poll taken
last year of 3200 Alaskans said that 84 percent approved or
were neutral about the subject of the appropriateness for
pbs to raise money on the air by a game.
Senator Kelly said he was opposed to SB 200 but asked if SB
200 allowed for the sale of pull tabs on the ferry system.
JOHN HANSEN, JR., Gaming Manager, Department of Commerce &
Economic Development, said that pull tabs would be able to
be sold on the ferries. Senator Kelly felt that would be a
problem. He said he was also opposed to pull tabs being
sold in restaurants. Ms. Kaplin said that in rural areas
that might be the only place that could sell the pull tabs.
Mr. Hansen said that SB 200 would allow any retail
establishment to sell pull tabs.
Senator Jacko MOVED for adoption of CSSB 200(FIN) work draft
"E". No objections being heard, it was ADOPTED.
JERRY LUCKHAUPT, Attorney, Legislative Legal Counsel,
Legislative Affairs Agency, suggested that the words "pull
tab series or the" on page 7, line 14 be deleted. Senator
Jacko MOVED an amendment deleting the words "pull tab series
or the" on page 7, line 14, including a change to the title
to that affect. No objections being heard, the words were
deleted and the title changed.
Senator Kelly asked how the pull tab game would be played.
Ms. Kaplin said that the pull tabs would be mailed in and a
drawing would be held. She said that it could be held
several times a year, limited to twelve hours of
broadcasting a year over the air. The station would be
prohibited from using operators, and the game would be
conducted by Alaska public radio network. It would not
receive any state moneys to fund the games. She said that
the majority of the funds would go into an endowment. Mr.
Hansen said that public radio would have to get special
permission to hold funds for more than one year. Ms. Kaplin
said the board of directors met on February 2 and
established a trust fund. She said that 50 percent of the
funds would go into a general endowment for public
broadcasting statewide and the balance would be divided into
separate endowment accounts for each broadcasting station.
She said that there was some concern that funds should be
retained by the communities that raised them. Senator Kelly
felt that the endowment should be outlined in the bill. Ms.
Kaplin said that she did not object to that. In answer to
Co-chair Pearce, Mr. Luckhaupt said that a certain percent
could be put into an endowment. Discussion was had by
Senators Rieger, Pearce, Mr. Luckhaupt and Mr. Hansen
regarding the endowment and existing statutes regarding the
use of the gaming funds.
Senator Kelly MOVED for adoption of a conceptual amendment
that would provide for at least half of the adjusted gross
income to go into an endowment with the Commissioner's
approval. Mr. Hansen said that under SB 76 at least 30
percent of the adjusted net income would be required to be
shown as net proceeds.
Mr. Hansen said that gross sales were defined as the dollar
paid for the pull tab game. After prizes are subtracted it
is called the adjusted gross income. After expenses are
paid the result is net proceeds. Under SB 76, 30 percent of
the adjusted gross income is required to be reported as net
proceeds. In answer to Senator Kelly, Mr. Hansen said that
in addition to regular reports, SB 200 required a special
report to the legislature.
Senator Kerttula asked for the amendment to be in writing
rather than a conceptual amendment. Co-chair Pearce
announced an at ease.
Recess 11:10am
Reconvene 11:23am
Senator Kelly MOVED for adoption of amendment 3 on page 7,
line 24 (copy of file). No objections being heard, it was
ADOPTED.
Senator Kerttula voiced his opposition to using gambling to
fund public broadcasting. He said that he understood the
need for becoming independent from state funds but asked
about the moral issues around gambling and how it would
effect the image of public broadcasting. Ms. Kaplin said
that discussion had been going on for years on this subject.
Some local boards were opposed to using gambling as a way to
raise funds. This was one reason the recent poll was done.
Every station is locally owned and operated by a community
board. Each station will have to make this decision for
themselves. She said that the game would be aimed at
viewers who wanted to be supportive of public broadcasting
and would not target traditional gamblers or presented in
gambling institutions. The choice may come down to giving
up public broadcasting and its services or participate in
the game for support. She believed that some stations would
opt not to participate.
Senator Kerttula maintained his opposition to allowing
gambling in the state and proposed that the state could be
seen as an advocate of gambling. He questioned what other
forms of gambling could be approved. He maintained his
objection to public broadcasting participating in gaming and
felt it set a bad tone.
Senator Rieger MOVED for adoption of amendment 4 adding the
words "the earnings of which may be used" after the word
fund to amendment 3 (copy on file). Senator Sharp OBJECTED.
Discussion was had by Co-chair Pearce, Senators Rieger,
Jacko, Sharp, and Mr. Luckhaupt regarding the sunset of the
bill and the possibility of earnings from the endowment
supporting public broadcasting. Senator Sharp withdrew his
objection. No further objections being heard, amendment 4
was ADOPTED.
Co-chair Pearce asked Mr. Luckhaupt what would happen to the
endowment after the sunset date in the present proposed
bill. Mr. Luckhaupt said that when the bill sunsets, the
language restricting endowment uses would end and his
opinion was that public broadcasting could then use the
endowment at that time. Senator Kelly said that he did not
disagree with that.
Senator Jacko asked, of the amount raised by the endowment,
how much would be generated from federal matching funds.
Ms. Kaplin said that it is a substantial amount. Matching
funds would be 13 cents on the dollar, and in rural areas or
native stations it varies between 19 and 26 cents on the
dollars.
Senator Sharp asked if it was their intention to advertise
pull tabs on public broadcasting. Ms. Kaplin said that
advertising on the air was prohibited by law. She said that
the law allowed 12 hours a year on the air for the game and
most of that time would be used for the on-the-air drawing.
Senator Sharp said it would disturb him, especially because
of the young people, if there was a promotion on the air.
Senator Kerttula said that "friends" of the station could
buy air time on other stations or newspaper ads. Ms. Kaplin
maintained that any advertising would be disallowed by law.
Mr. Luckhaupt said that there cannot be any gaming
advertising or promotions on commercial broadcasting. The
twelve hours that Ms. Kaplin mentioned are an exception
provided in this legislation.
End SFC-93 #62, Side 1
Begin SFC-93 #64, Side 1
PAUL FUHS, Commissioner, Department of Commerce & Economic
Development, said that several years ago the legislature had
passed authorization for APRN to hold a game. He said that
because of existing statutes, APRN had not been able to hold
a game that the department could authorize. He said that
the department and APRN needed clarification from the
legislature regarding what could be authorized in order to
proceed. He said that he was not opposed to SB 200 but said
that the Governor was opposed to extending gambling in
Alaska.
Senator Jacko MOVED for passage of CSSB 200(FIN) as amended
from committee with individual recommendations. Senators
Kerttula and Kelly OBJECTED for the record. CSSB 200(FIN)
was REPORTED OUT of committee with a "do pass" with a zero
fiscal note for the Department of Commerce & Economic
Development. Co-chairs Pearce and Frank, Senators Jacko,
and Rieger signed a "do pass." Senators Kelly and Kerttula
signed a "do not pass," and Senator Sharp signed a "no rec."
Recess 11:50am
Reconvene 12:05pm
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