Legislature(2007 - 2008)SENATE FINANCE 532

04/12/2008 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 111 BUSINESS LICENSE FEE TELECONFERENCED
Moved SCS CSHB 111(FIN) Out of Committee
HJR 2 CONST.AM:NO GAMING WITHOUT VOTER APPROVAL
Heard & Held
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 44 VETERAN INFO ON PFD APPLICATIONS
Moved CSHB 44(FIN) Out of Committee
CS FOR HOUSE JOINT RESOLUTION NO. 2(FIN)                                                                                      
                                                                                                                                
     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 and setting other requirements.                                                                       
                                                                                                                                
9:40:00 AM                                                                                                                    
                                                                                                                                
AT EASE:       9:40:03 AM                                                                                                     
RECONVENED:    9:40:19 AM                                                                                                     
                                                                                                                                
REPRESENTATIVE NANCY  DAHLSTROM presented an overview  of the                                                                   
house joint  resolution. She explained  that this  bill would                                                                   
create a  constitutional amendment  that places the  question                                                                   
for permitting  for-profit  gaming in  Alaska on the  general                                                                   
election  ballot. The  resolution  states that  in order  for                                                                   
there  to be for-profit  gaming  in Alaska  their must  be an                                                                   
affirmative majority  by the state  voters. In  addition, the                                                                   
local communities  must then approve,  by a majority,  gaming                                                                   
in their  area. The local vote  requirement was added  in the                                                                   
House to assure balance for smaller communities.                                                                                
                                                                                                                                
9:42:48 AM                                                                                                                    
                                                                                                                                
Senator Dyson  questioned how  this would affect  gambling on                                                                   
Native Alaskan lands.                                                                                                           
                                                                                                                                
Representative  Dahlstrom reported  that she  is not  sure as                                                                   
this is not yet resolved.                                                                                                       
                                                                                                                                
9:43:32 AM                                                                                                                    
                                                                                                                                
Senator  Olson  inquired  how this  would  affect  non-profit                                                                   
gaming in Alaska.                                                                                                               
                                                                                                                                
Representative Dahlstrom reported  this bill would not affect                                                                   
any gaming activity already in law.                                                                                             
                                                                                                                                
Co-Chair Stedman  asked what would  be the affect  on Annette                                                                   
Island, the only native reservation in Alaska.                                                                                  
                                                                                                                                
Representative  Dahlstrom advised  that Annette  Island  is a                                                                   
part of Alaska  and the community would need to  abide by the                                                                   
same regulations as  the rest of the state.  If the residents                                                                   
wished to have  gaming in their area, it would  have to be by                                                                   
majority vote of the community.                                                                                                 
                                                                                                                                
Co-Chair Stedman  pointed out that Annette Island  is treated                                                                   
differently  by other  Alaska departments,  such as fish  and                                                                   
game laws. He wondered if there  had been any research on the                                                                   
special status of Annette Island in regard to gaming.                                                                           
                                                                                                                                
Representative Dahlstrom  responded she could  not comment on                                                                   
the policy for Annette Island.                                                                                                  
                                                                                                                                
9:45:09 AM                                                                                                                    
                                                                                                                                
Senator  Elton asked  if the  state or  municipal vote  would                                                                   
occur first.                                                                                                                    
                                                                                                                                
Representative  Dahlstrom reported  that the state  elections                                                                   
would happen first.                                                                                                             
                                                                                                                                
Senator Elton expressed that some  pull-tabs are on behalf of                                                                   
non-profits. He  questioned if the businesses  that ran these                                                                   
non-profit    pull-tabs     were    considered     for-profit                                                                   
organizations would  they be prohibited from  conducting this                                                                   
service without a vote by the people.                                                                                           
                                                                                                                                
Representative Dahlstrom  specified that pull-tabs  are legal                                                                   
in the state and nothing in existing  state law would change.                                                                   
                                                                                                                                
9:46:29 AM                                                                                                                    
                                                                                                                                
Senator  Elton  asked how  a  new  pull-tab seller  would  be                                                                   
treated.                                                                                                                        
                                                                                                                                
Representative Dahlstrom repeated  that this would not change                                                                   
those gaming businesses already allowed by state law.                                                                           
                                                                                                                                
9:47:20 AM                                                                                                                    
                                                                                                                                
Senator Thomas  questioned where  in the  bill it states  the                                                                   
continuation  of those gaming  activities already  allowed by                                                                   
state law.                                                                                                                      
                                                                                                                                
9:48:13 AM                                                                                                                    
                                                                                                                                
KELLY GOODE, STAFF, REPRESENTATIVE  DALSTROM answered Senator                                                                   
Thomas's  question  by  indicating  Section 2  (b),  page  2,                                                                   
states:                                                                                                                         
                                                                                                                                
     (b) This section does not  prohibit or restrict any form                                                                   
     of  gaming lawfully  conducted under  Alaska law  on the                                                                   
     date of the  ratification of this section  by the people                                                                   
     of Alaska,  nor does this  section affect  the authority                                                                   
     of the  legislature to  authorize or regulate  nonprofit                                                                   
     gaming by organized boroughs  and cities or by nonprofit                                                                   
     organizations.                                                                                                             
                                                                                                                                
AT EASE: 9:49:46 AM                                                                                                           
RECONVENED: 9:53:02 AM                                                                                                        
                                                                                                                                
9:53:45 AM                                                                                                                    
                                                                                                                                
Ms.  Goode   explained  that   the  difference  between   the                                                                   
Judiciary and  Finance version of  the bills was that  if the                                                                   
state   election   votes  affirmatively,   then   the   local                                                                   
communities would get a chance  to vote on allowing gaming in                                                                   
their community.                                                                                                                
                                                                                                                                
9:54:54 AM                                                                                                                    
                                                                                                                                
Senator Elton  asked what happens  when both a borough  and a                                                                   
city is involved.                                                                                                               
                                                                                                                                
9:55:41 AM                                                                                                                    
                                                                                                                                
Ms. Good replied it would depend  on where the gaming occurs.                                                                   
If the gaming was  to be held within the city,  then the vote                                                                   
would be there;  if outside the city but within  the borough,                                                                   
then the borough would vote.                                                                                                    
                                                                                                                                
9:56:27 AM                                                                                                                    
                                                                                                                                
Ms. Goode  remarked that the  House Finance Committee  wanted                                                                   
to ensure  this was  a two-tier  system with  both state  and                                                                   
local voting.                                                                                                                   
                                                                                                                                
Senator  Elton   acknowledged  he  is  not   a  supporter  of                                                                   
legalized  gambling  and  the back-up  material  relates  the                                                                   
negative impacts on families.                                                                                                   
                                                                                                                                
Co-Chair  Stedman noted  that  this new  resolution has  just                                                                   
been seen  by the  Committee and  there has  not been  enough                                                                   
time to thoroughly consider the resolution.                                                                                     
                                                                                                                                
9:58:38 AM                                                                                                                    
                                                                                                                                
Senator Olson suggested that since there would be a state-                                                                      
wide election first, all Alaskans  would have an influence if                                                                   
gambling would be allowed.                                                                                                      
                                                                                                                                
Senator  Elton   recounted  that  the  state   can  authorize                                                                   
gambling but the communities need to feel comfortable.                                                                          
                                                                                                                                
9:59:05 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman stressed  that this  was actually  a three-                                                                   
tier  system. First  there would  be  the vote  to amend  the                                                                   
Alaska Constitution,  followed by a state-wide  vote then the                                                                   
vote  on the  municipal  level.  He  believed the  voters  of                                                                   
Alaska  should decide  whether  they wanted  gambling in  the                                                                   
state. If  the voters approve  gambling then in order  for it                                                                   
to be  implemented, Alaskans would  vote on the  local level.                                                                   
If the  voters vote against gambling  in the state  then this                                                                   
should be a clear message that gambling is not wanted.                                                                          
                                                                                                                                
10:00:52 AM                                                                                                                   
                                                                                                                                
Ms.  Goode  replied that  the  House  felt that  some  larger                                                                   
communities  could  determine  the outcome  by  their  larger                                                                   
populations  which  initiated   the  addition  of  the  local                                                                   
community vote.                                                                                                                 
                                                                                                                                
10:01:57 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HARRY  CRAWFORD  indicated  that it  was  the                                                                   
sponsor's intention  to have a  statewide vote to  settle the                                                                   
question about  gambling. As it  moved through  committees it                                                                   
evolved to also  getting a vote in local communities  and the                                                                   
sponsor's were fine with this idea.                                                                                             
                                                                                                                                
10:02:55 AM                                                                                                                   
                                                                                                                                
Senator  Huggins inquired  if this  would have  an effect  on                                                                   
cruise ship industry.                                                                                                           
                                                                                                                                
Representative  Crawford replied that  there will not  be any                                                                   
effect if they stay in outside waters.                                                                                          
                                                                                                                                
10:03:32 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman reviewed the fiscal note.                                                                                      
                                                                                                                                
Senator Thomas requested more  information on the cruise ship                                                                   
tax.                                                                                                                            
                                                                                                                                
CS HJR 2  (FIN) was HEARD  and HELD in Committee  for further                                                                   
consideration.                                                                                                                  
                                                                                                                                
AT EASE: 10:05:34 AM                                                                                                          
RECONVENED: 11:17:42 AM                                                                                                       
                                                                                                                                

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