02/20/2008 01:30 PM House FINANCE

1:38:03 PM                                                                                                                    
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 2                                                                                                  
                                                                                                                                
     Proposing an amendment to  the Constitution of the State                                                                   
     of Alaska  requiring an affirmative  vote of  the people                                                                   
     before  any   form  of  gambling   for  profit   may  be                                                                   
     authorized in Alaska.                                                                                                      
                                                                                                                                
Co-Chair  Chenault MOVED  to  ADOPT work  draft  25-LS0257\V,                                                                   
Luckhaupt,  2/14/08, as the  version of  the bill before  the                                                                   
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
REPESENTATIVE NANCY  DAHLSTROM, SPONSOR, directed  discussion                                                                   
to  the  work  draft,  addressing   concerns  voiced  by  the                                                                   
Committee.   The  work  draft  outlines potential  affect  on                                                                   
gaming and charitable games, while  at the same time does not                                                                   
affect current existing operations.                                                                                             
                                                                                                                                
REPRESENTATIVE  CRAWFORD,  SPONSOR,  added,  the  draft  also                                                                   
clarifies  the   voting  process;  initially,   it  had  been                                                                   
optional.                                                                                                                       
                                                                                                                                
1:40:17 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze discussed  appreciation  for the  changes                                                                   
made,  while   requesting  backup  documentation   from  each                                                                   
department  affected,  before the  legislation  moves to  the                                                                   
House Floor.   He emphasized that it is  especially important                                                                   
because it is a proposed constitutional amendment.                                                                              
                                                                                                                                
Representative  Dahlstrom replied,  those  concerns would  be                                                                   
addressed.  She referenced Page  2, Line 6 of the \V version,                                                                   
inquiring  if there  should be  a period  following the  word                                                                   
"law"  for   clarification  purposes.     Vice-Chair  Stoltze                                                                   
recommended  that  the  Department  of  Law,  Office  of  the                                                                   
Attorney General, respond to that  query.   He reiterated the                                                                   
written    assurance   stipulated    by   that    Department.                                                                   
Representative Crawford  interjected that letters  of support                                                                   
had been requested,  but have not yet arrived.   He indicated                                                                   
that  the   sponsors   will  continue   to  press  for   that                                                                   
documentation.                                                                                                                  
                                                                                                                                
1:43:57 PM                                                                                                                    
                                                                                                                                
Representative   Joule   remembered    that   past   attempts                                                                   
encouraging statewide  gaming, had been defeated  through the                                                                   
legislative process.   He questioned  why the  resolution was                                                                   
being  placed before  the  people.   Representative  Crawford                                                                   
explained that there  is now an initiative on  the ballot for                                                                   
the August  election,  which would remove  the decision  from                                                                   
the Legislature's  preview.  He and Representative  Dahlstrom                                                                   
hoped   to  see  the   proposed  verbiage   written   in  the                                                                   
Constitution so  that the Legislature  will continue  to have                                                                   
in-put.                                                                                                                         
                                                                                                                                
Representative  Joule  was not  familiar  with that  specific                                                                   
initiative  but understood  that  initiatives  passed by  the                                                                   
voters were  in effect  only for  two years.   Representative                                                                   
Crawford  acknowledged   that  in  two  years   it  could  be                                                                   
repealed,  however, by  then it  could be  more difficult  to                                                                   
undo  what  had  been done,  i.e.  such  as  construction  of                                                                   
casinos.   He reiterated,  it would  be difficult to  reverse                                                                   
any  position.   The  resolution  provides the  populace  the                                                                   
ability to make the decision to  expand gambling or not.  The                                                                   
initiative has  been "marketed" more  as a regulation  of the                                                                   
gaming industry;  it does not  include the reality of  a five                                                                   
member  commission  with  the  sole  authority  of  expanding                                                                   
gambling or not.                                                                                                                
                                                                                                                                
1:47:32 PM                                                                                                                    
                                                                                                                                
Co-Chair   Chenault   asked  Representatives   Crawford   and                                                                   
Dahlstrom  if  those voting  on  an initiative  could  really                                                                   
understand  what   they  were  voting  on.     Representative                                                                   
Crawford said it depends on the way in which it is sold.                                                                        
                                                                                                                                
Co-Chair Chenault  explained the  education piece  of selling                                                                   
an initiative.   The people of  Alaska should know  what they                                                                   
are  voting on  and  the  consequences associated  with  that                                                                   
vote.  Representative  Crawford acknowledged that  the weight                                                                   
of advertising can change the  mind of the voters and he knew                                                                   
there  would be  a large  amount of  advertising against  the                                                                   
initiative.  Co-Chair Chenault  agreed that there is always a                                                                   
pro and con to each issue and  that regardless of the dollars                                                                   
spent,  the issue  either  fails or  passes.   He  reiterated                                                                   
concern that voters  might not fully understand  the concern.                                                                   
Representative  Crawford agreed  &  pointed out  that is  the                                                                   
beauty of the constitutional amendment process.                                                                                 
                                                                                                                                
1:50:50 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze  addressed fiscal  concerns,  remembering                                                                   
the  attempt to  take big  money  out of  politics, which  he                                                                   
thought it  could be  an undo influence.   He worried  having                                                                   
the  gambling   issue  on  a   ballot  measure   proposing  a                                                                   
constitutional amendment,  which is tied to  "beating-back" a                                                                   
citizen's initiative  in the coming election.   He questioned                                                                   
if  the  legislation  would  be  appropriate  public  policy.                                                                   
Representative   Crawford  noted   strong  support   for  the                                                                   
initiative process.                                                                                                             
                                                                                                                                
1:53:48 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  pointed  out  that  through  the  initiative                                                                   
process,  the crew  ship  head tax  was  passed, which  taxes                                                                   
gambling  proceeds on  the crew  ships.   He asked  if HJR  2                                                                   
would affect that.  Representative  Crawford advised that the                                                                   
language  of  the  resolution  is explicit:    "It  does  not                                                                   
prohibit or  restrict any form  of gaming lawfully  conducted                                                                   
under Alaska law".                                                                                                              
                                                                                                                                
1:55:19 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze MOVED  to REPORT  CS HJR  2 (FIN) out  of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HJR  2 (FIN)  was  reported  out  of Committee  with  "no                                                                   
recommendation" and  with a new  fiscal note by  the Division                                                                   
of Elections.