04/25/1994 09:10 AM Senate FIN

  CSSB 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   outside  of   ports;                 
                 requiring certain  disclosures in  connection                 
                 with  promotions on  board  cruise ships  and                 
                 making violation of that  provision an unfair                 
                 trade practice; defining  `cruise ship';  and                 
                 providing  for  exemption  fees  for  certain                 
                 cruise ships before they can conduct gambling                 
                 in the offshore water of the state.                           
                                                                               
                 Tom Dow, Vice  President of Hotels,  Princess                 
                 Tours, spoke to CSSB 370(FIN).  CSSB 370(FIN)                 
                 work draft "U" was HELD in committee.                         
                                                                               
  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 outside                 
       of ports;  requiring certain disclosures  in connection                 
       with  promotions  on  board  cruise  ships  and  making                 
       violation of that  provision an unfair  trade practice;                 
       defining  `cruise ship';  and  providing for  exemption                 
       fees for certain  cruise ships before they  can conduct                 
       gambling in the offshore water of the state.                            
                                                                               
  Co-chair  Pearce  announced  that  SB  370  was  before  the                 
  committee long  enough to hear Tom Dow's  testimony since he                 
  was from out  of town.  She  said the bill would  be brought                 
  back before the committee on April 26, 1994.                                 
                                                                               
  TOM DOW, Vice President of Hotels, Princess Tours,  spoke in                 
  support  of  SB  370  which  would  authorize,  through  the                 
  granting of an exemption for a fee, the operation of casinos                 
  aboard cruise  ships within  Alaskan state  waters.   He was                 
  opposed to the flat fee.  His company had estimated that the                 
  total gaming activity aboard ships was in the 20-25  percent                 
  range based  upon the time those ships were in international                 
  waters outside the three-mile limit.  Of the total activity,                 
  about 22 percent  occurred within the Alaskan  state waters.                 
  He did not object to the  establishment of an Alaska Tourism                 
  Marketing  Council  Fund  that  would  have  the  effect  of                 
                                                                               
                                                                               
  establishing  legislative  intent  and   the  monies  raised                 
  through these fees would be forwarded  or used for a portion                 
  of the private sector match against state  funds for tourism                 
  marketing.  He did have  problems with this law if  it would                 
  extend the  large hand  of government  behind the  company's                 
  wallet into its books.  He felt that was hard to justify for                 
  the public good.                                                             
                                                                               
  Mr. Dow said  they had no problem with  restricting on-board                 
  promotions that  might apply  to locally  owned gift  shops.                 
  They understood  that the basic  fee level would  be doubled                 
  from the original bill and was acceptable to Princess Tours.                 
  They cautioned  it was the  outer limit.   He pointed  out a                 
  similar license from  Maryland was  only $25.   The fee  was                 
  proposed to be $40,000 for the  larger ships and $30,000 for                 
  others in return for  an unregulated practice that  had been                 
  going on for over 20 years.                                                  
                                                                               
  Co-chair  Pearce  announced that  SB  370 would  be  HELD in                 
  committee.                                                                   
                                                                               
  SCHEDULED BUT NOT HEARD: