Legislature(1993 - 1994)
04/26/1994 05:55 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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. CSSB 370(FIN) work draft "D" was ADOPTED. Amendment 1 was ADOPTED changing the word "fees" in the title to the word "procedures." Amendment 2 was ADOPTED providing for a sunset for Sections 1, 2 and 3. CSSB 370(FIN) as amended was REPORTED out of committee with individual recommendations, and a zero fiscal note for the Department of Revenue showing a revenue of $(295.0). 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 a proposed CSSB 370(FIN) work draft "D" was before the committee. Co-chair Frank MOVED for adoption of CSSB 370(FIN) work draft "D" for discussion purposes. No objection being heard, it was ADOPTED. Co-chair Pearce said CSSB 370(FIN) continued an exemption to cruise ships so they can conduct gambling in the offshore waters of Alaska if they pay an exemption fee. The fees were found on page 2. She noted that there are no cruise ships that came to Alaska carrying more than 2,000 passengers. The company also could decide to not exempt a ship. Section 4 and 5 were added over co***FIN116PM 0AASFIN 0426941755 MINUTES SENATE FINANCE COMMITTEE April 26, 1994 5:55 p.m. TAPES SFC-94, #81, Side 1 (000-end) SFC-94, #81, Side 2 (end-000) CALL TO ORDER Senator Drue Pearce, Co-chair, convened the meeting at approximately 5:55 p.m. PRESENT In addition to Co-chairs Pearce and Frank, Senators Rieger, Kerttula, Kelly, and Sharp were present. Senator Jacko did not attend the meeting. ALSO ATTENDING: Cheryl Sutton, aide to Representative Moses, sponsor of HJR 34; Tim Sullivan, aide to Representative Eldon Mulder, sponsor of HB 421; Don Stolworthy, Director, Charitable Gaming Division, Department of Revenue; Tom Dow, Vice President of Hotels, Princess Tours; Clark Gruening, lobbyist, Alaska Visitor Association; Jetta Whittaker, fiscal analyst, Legislative Finance Division; representatives of the media, aides to committee members and other members of the legislature. SUMMARY INFORMATION 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. CSSB 370(FIN) work draft "D" was ADOPTED. Amendment 1 was ADOPTED changing the word "fees" in the title to the word "procedures." Amendment 2 was ADOPTED providing for a sunset for Sections 1, 2 and 3. CSSB 370(FIN) as amended was REPORTED out of committee with individual recommendations, and a zero fiscal note for the Department of Revenue showing a revenue of $(295.0). 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 a proposed CSSB 370(FIN) work draft "D" was before the committee. Co-chair Frank MOVED for adoption of CSSB 370(FIN) work draft "D" for discussion purposes. No objection being heard, it was ADOPTED. Co-chair Pearce said CSSB 370(FIN) continued an exemption to cruise ships so they can conduct gambling in the offshore waters of Alaska if they pay an exemption fee. The fees were found on page 2. She noted that there are no cruise ships that came to Alaska carrying more than 2,000 passengers. The company also could decide to not exempt a ship. Section 4 and 5 were added over concern regarding promotions on board the cruise ships. Co-chair Pearce said that on page 1, line 4, the word "procedures" should replace the word "fees". Senator Kelly MOVED amendment 1 making the word change. Senator Rieger conceptually OBJECTED to the reason behind this amendment. No further objection being heard, amendment 1 was ADOPTED. Co-chair Frank MOVED amendment 2 which would sunset Sections 1, 2, and 3 as of December 30, 1996. Senator Kelly OBJECTED. Co-chair Pearce called for a show of hands and the motion carried on a vote of 3-2 (Co-chairs Pearce and Frank, and Senator Sharp were in favor. Senators Rieger and Kelly were opposed. Senator Kerttula was absent from the meeting when the vote was taken.) Co-chair Pearce estimated income from the exemption procedures to be approximately $590,000. In answer to Senator Kelly, she said there was no way to know if all would play. Co-chair Pearce asked if an exemption rather than an actual license would result in a lower fiscal note for the Department of Revenue. DON STOLWORTHY, Director, Charitable Gaming Division, Department of Revenue, agreed that the term exemptions rather than licenses removed the inferred procedures. He said processing the ships this year would not be very expensive and he estimated the new fiscal note to be somewhere between $50-80,000. Co-chair Frank pointed out that if only 5 companies were involved, the ships could be processed all at once. Discussion followed between Co-chairs Frank and Pearce, Senator Kelly, and Mr. Stolworthy, regarding how the department would enforce this legislation. Co-chair Pearce suggested that the Department not bring a $50-80,000 fiscal note to the department. TOM DOW, Vice President of Hotels, Princess Tours, spoke in support of CSSB 370(FIN). He was surprised at the sunset that was added to the bill. He said it would cause an air of uncertainty in several years. He asked the committee to reconsider the sunset. He thought it would also cause some cumbersome analysis for those that were doing planning 3-4 years out. Co-chair Pearce voiced her opinion that all gaming should be stopped on ships or anywhere. She also said, that if gaming took place, the state should receive a percent of the take and that the books should be available to the state. She said the sunset in two or three years would provide a place for the legislature to analyze if gambling on cruise ships should continue. In answer to Senator Kelly, Mr. Dow said that all six of the Princess Tour cruise ships would pay for the exemption as provided for in the bill. Senator Kelly MOVED for passage of CSSB 370(FIN) from committee with individual recommendations. No objection being heard, it was REPORTED OUT with individual recommendations and with a fiscal note for $43.6 showing a revenue of $620.0. Co-chair Frank, and Senator Rieger signed "do pass." Senator Sharp and Kelly signed "no recommendation." ADJOURNMENT The meeting was recessed at approximately 7:15 p.m.
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