Legislature(1993 - 1994)
02/10/1994 03:00 PM L&C
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HB 308 - LIMIT POLITICAL USE OF GAMBLING PROCEEDS HB 326 - GAMING PROCEEDS/DEFINE CHARITABLE ORG'NS REP. GENE THERRIAULT, Prime Sponsor of HB 308, stated that basically he introduced the bill because he believes charitable gambling should be just that. The proceeds should go to charity and not political parties. He said HB 308 would modify current statutes by adding a provision to prohibit the use of net proceeds from charitable gaming activities for candidates for public office or that candidate's organization. He stated HB 308 would also expand the definition of a political organization to include political parties. Current definitions limit "political organizations" to organizations or clubs organized for or formally affiliated with a political party. This expansion will cover all political and quasi-political organizations and supplement the effect of Section 1. Number 075 REP. TERRY MARTIN explained that when you mix gambling and politics and it becomes acceptable you have the worst scenario for corrupt government. REP. MARTIN stated that Alaska is the only state that allows political parties or candidates to receive money from gaming. This bill would prohibit this. REP. MARTIN believed that the political parties end up competing for the same dollars with charities. Number 192 REP. MACKIE asked Rep. Martin to describe to him how money from gaming causes corrupt government and also how that is different from someone getting money from an oil company or from any other interest group. Number 235 REP. MARTIN responded that he has looked through the files of APOC. He brought up the file of the District 11 Democrats where each month the proceeds from the Northern Light Bingo parlor goes into their fund and whoever is in charge of the District 11 Democrats is in charge of funneling the money back out to candidates. REP. MARTIN gave more examples of how the money comes in and how it's funneled out. Number 300 REP. MACKIE asked again how gaming money, as opposed to oil money, causes corruption in government. He said it's all legal. Number 320 REP. MARTIN responded that history shows us that it causes corruption. Also, there are no limits on what can be given. Number 340 REP. MACKIE asked for an example of corruption and stated that he believes this bill would just be legislating morality. Number 350 REP. MARTIN responded with some facts about some state legislators getting into trouble in various states involving gambling. Number 365 REP. THERRIAULT stated that he didn't believe the people of Alaska meant for charitable gaming proceeds to be funneled into politics. He added that the key word is "charitable." REP. MACKIE suggested that if disclosure was the objection, then why not post a sign at the pull tab location stating who owned the permit and where the proceeds will go and allow people to make their own judgments. Number 391 REP. GREEN asked how permits are acquired now. Number 420 REP. MARTIN responded with an explanation of the current law. Number 450 CHAIRMAN HUDSON asked the Director of Gaming to prepare for the committee a laymen summary of how the application is made, what controls the Division has on applicants, and what percentage goes into charity versus political parties and operations. Number 482 MANO FREY, Executive President, AFL/CIO, testified against HB 308 and HB 326. Mr. Frey stated that the AFL/CIO does have a gaming permit, but does not make any direct political contributions. He added that they rely on the proceeds from their gaming permits to run their operations and staff. MR. FREY added that he is also the business manager of Local 341 and that organization does utilize its gaming proceeds to make political contributions to candidates. But most of the proceeds go toward scholarships, little league and other community events. MR. FREY stated that HB 326 would hurt the Laborer's chance to make money in this way and he expressed resentment at the fact that his organization is being signaled out. Number 530 CHAIRMAN HUDSON announced he would hold HB 308 and HB 326 over for more information. CHAIRMAN HUDSON adjourned the meeting at 5:22 p.m.