Legislature(1997 - 1998)
04/01/1998 01:45 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
APRIL 1, 1998
1:45 P.M.
TAPE HFC 98 - 85, Side 1
TAPE HFC 98 - 85, Side 2
TAPE HFC 98 - 86, Side 1
CALL TO ORDER
Co-Chair Gene Therriault called the House Finance Committee
meeting to order at 1:45 p.m.
PRESENT
Co-Chair Hanley Representative Kelly
Co-Chair Therriault Representative Kohring
Representative Davies Representative Martin
Representative Davis Representative Moses
Representative Foster Representative Mulder
Representative Grussendorf
ALSO PRESENT
Nico Bus, Administrative Services Manager, Division of
Support Services, Department of Natural Resources; Tom
Williams, Staff, Senator Sharp; Deborah Vogt, Deputy
Director, Department of Revenue; Bob Bartholomew, Deputy
Director, Income and Excise Audit Division, Department of
Revenue; George Wright, Alaska Native Brotherhood Camp #2,
Juneau; Angelina Lundy, Alaska Native Brotherhood Camp #2,
Juneau; Roger McCoy, Juneau; Constance Munro, Juneau.
The following testified via the teleconference network:
John Lopez, Alaska Bingo Supply, Inc. Anchorage; Mark
Marcott, Assistant Executive Director, Anchorage Armed
Services YMCA, Anchorage; Nettie Mormon, President,
Fairbanks Lyons Club, Fairbanks; Larry Hackenmiller,
Fairbanks; Michael Trujillo, Kenai; Frank Bishop, Kenai;
Earl Mickelson, Kodiak; Shirley Montgomery, President, Matsu
Valley Human Society; Michelle Duboose, Volunteer, Matsu
Valley Human Society; Ruby Schmidt-Bauer, Senior Center,
Nilnilchik; Elmer Banta, Nilnilchik Senior Center,
Nilnilchik; Brian Davies, Member, Board of Directors,
Anchorage Symphony, Anchorage; Michael Slezak, Rippie World
II, Anchorage; Gregory Peterson, Sales Manager, Alaska
Indoor Sport Distributing, Fairbanks; David Lambert,
Fairbanks Junior Dog Mushers, Fairbanks; Taber Rehbaum,
Director, Big Brothers Big Sisters, Fairbanks; Dean Babcock,
Matsu Valley Human Society; Mary Babcock, Matsu Valley Human
Society; Esty Shemtov, Non-Profit Coordinator, Anchorage;
Doug Askerman, Executive Officer, Anchorage Home Builders
Association, Anchorage; Perry Green, Anchorage; Gloria
Hamilton, Nilnilchik; Danny Darroutte, Nilnilchik; Laura
Elias, Executive Director, Nilnilchik Senior Center,
Nilnilchik; Minnie Fisher, Volunteer, Matsu Valley Human
Society; Robert Montgomery, Volunteer, Matsu Valley Human
Society; Dick Bishop, Alaska Outdoor Council, Fairbanks; Dan
Labrosse, Director, Death Community Services, Fairbanks;
Allyn Yanish, Fairbanks.
SUMMARY
SB 273 "An Act requiring that gross receipts and ideal
gross be used to account for charitable gaming
activities; requiring municipalities to provide to
the state records concerning sales taxes assessed
for charitable gaming activities; requiring that a
charitable share of charitable gaming receipts be
dedicated to charitable uses; relating to reports
required for charitable gaming activities; relating
to payments to the state from gross receipts of
charitable gaming; relating to contracts between
operators or vendors and permittees; relating to
licensing of multiple-beneficiary permittees and to
the duties of a multiple-beneficiary permittee to
each holder of the permit; requiring a person
employed as a gaming manager to be certified by the
state; limiting the expenditure of amounts of gross
receipts and ideal gross required to be paid to
permittees or retained by permittees; relating to
the amount of gross receipts and prizes allowed
under a permit or a multiple- beneficiary permit;
allowing operators to pool gross receipts, prizes,
and door prizes among permittees; and providing for
an effective date."
SB 73 was HELD in Committee for further
consideration.
HB 325 "An Act making appropriations for the operating and
loan program expenses of state government, for
certain programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing
for an effective date."
HB 325 was HELD in Committee for further
consideration.
HOUSE BILL NO. 325
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date."
RESULTS BASED GOVERNMENT
AGRICULTURAL MANAGEMENT
AGRICULTURAL REVOLVING LOAN FUND
PLANT MATERIALS CENTER
NICO BUS, ADMINSTRATIVE SERVICES MANAGER, DIVISION OF
SUPPORT SERVICES, DEPARTMENT OF NATURAL RESOURCES stated
that the Department supports the mission statements and
performance measures for Agricultural Management, the
Agricultural Revolving Loan Fund and the Plant Materials
Center as contained in Attachments 1, 2 and 3 (copy on
file).
Representative Foster MOVED to ADOPT the mission statements
and performance measures for Agricultural Management, the
Agricultural Revolving Loan Fund and the Plant Materials
Center as contained in Attachments 1, 2 and 3. There being
NO OBJECTION, it was so ordered.
HB 325 was HELD in Committee for further consideration.
SENATE BILL NO. 273
"An Act requiring that gross receipts and ideal gross
be used to account for charitable gaming activities;
requiring municipalities to provide to the state
records concerning sales taxes assessed for charitable
gaming activities; requiring that a charitable share of
charitable gaming receipts be dedicated to charitable
uses; relating to reports required for charitable
gaming activities; relating to payments to the state
from gross receipts of charitable gaming; relating to
contracts between operators or vendors and permittees;
relating to licensing of multiple-beneficiary
permittees and to the duties of a multiple-beneficiary
permittee to each holder of the permit; requiring a
person employed as a gaming manager to be certified by
the state; limiting the expenditure of amounts of gross
receipts and ideal gross required to be paid to
permittees or retained by permittees; relating to the
amount of gross receipts and prizes allowed under a
permit or a multiple- beneficiary permit; allowing
operators to pool gross receipts, prizes, and door
prizes among permittees; and providing for an effective
date."
TOM WILLIAMS, STAFF, SENATOR SHARP testified in support of
the legislation. He observed that the legislation would
ensure that out of every dollar wagered, a certain minimum
portion would ultimately be dedicated to charitable
purposes. It will also substantially simplify the required
accounting for the Department of Revenue, charities and the
operators of charities' permits and improve the Department's
ability to enforce compliance with the State's charitable
gaming laws. The legislation is intended to maintain the
status quo with respect to the relative amounts that are
currently returned to the charities for charitable uses,
available for gaming operations, and collected in state
fees.
Mr. Williams explained that under current Alaska law
charities receive the net proceeds of gaming operations
after prizes and expenses are deducted. The law describes
what a charity or an operator can and cannot claim as an
allowable operating expense. In addition, this requires the
charities, operators and the state to generate, review and
often audit a substantial amount of accounting data.
Mr. Williams emphasized that the legislation would base the
amount required to be dedicated for charitable purposes as a
percentage of gross gaming receipts. This would
substantially simplify reporting and eliminate the need to
audit allowable expenses. In addition, a new requirement
that gaming managers for multiple-beneficiary permit (MBP)
holders and self directed charities be certified by the
Department would provide the Department with a way to
enforce compliance with the statutes without punishing those
charities and managers who currently operate within the law.
The intent is to level the playing field between operators
and MBP permit holders.
Mr. Williams noted that the Department of Revenue strongly
supports the legislation. It will simplify and improve
program oversight and enforcement, reducing the cost of
processing gaming reports. It also requires the Department
to make gaming information received available for public
review. Finally, it will enable the Department to expend
more of its recently streamlined gaming oversight efforts on
auditing and enforcement.
Mr. Williams recalled that the FY 98 budget of the Division
Charitable Gaming and returned it to a section of the
Division of Income and Excise Audit in the Department of
Revenue. The commissioner of Department of Revenue agreed
to this consolidation based on a promise for legislation to
reduce costs.
Mr. William explained that multiple-beneficiary permits
(MBP) occur when a series of permittees hire a manager to
operate their gaming operations. He observed that a number
of operators have moved into MBP's, which are not as
regulated. The legislation brings MBP managers on an equal
footing as operators. Charities can still maintain
operations under a MBP. The Department can license
managers. Managers that do not comply with the law will not
be allow by the Department of Law to serve as a gaming
manager.
Mr. Williams observed that the charitable share for bingo is
1.5 percent of gross receipts, pull-tabs are 7 percent of
the gross receipts and all other gaming activities are 10
percent of gross receipts. Vendors must pay permit holders
a certain percentage. Currently, bingo vendors pay based on
after prize amount. The legislation would require vendors
to pay 16 percent of the gross receipts. The Department of
Revenue recommended percentages contained in the
legislation. The Sponsor's intent is to keep the
distribution of proceeds at a similar level. The Sponsor
confirmed the Department's numbers in a spreadsheet (copy on
file). He maintained that pull tab operators in compliance
currently pay 7.5 percent of gross. The Department
recommended 7 percent.
Mr. Williams explained that net proceeds to charity are
required to be 30 percent of the adjusted gross income. He
provided members with a spreadsheet of pull tab operators
that were out of compliance in 1995 and 1996 (copy on file).
According to the chart the impact of SB 273 on these
operators would have been $13,207 dollars.
Mr. William provided members with a schedule by the
Department of Revenue demonstrating the calculation for
bingo of 1.5 percent (copy on file). He reiterated that the
intent was to retain the balance of monies to the charities.
Representative Martin did not think that 7 percent is a fair
percentage to charities. He asked why the operating expense
was increased for pull tabs. Mr. Williams clarified that
the intent is to get the State out of the business of
calculating the operating costs and prize pay outs. The
result is to allow charitable gaming so that charities can
raise money. The goal is to simplify and reduce legislation
while assuring that a certain known percentage of every
dollar would go to the charity.
Representative Martin observed that charities and non-
profits are different. Mr. Williams clarified that
permittees is the proper term.
DEBORAH VOGT, DEPUTY DIRECTOR, DEPARTMENT OF REVENUE spoke
in support of the legislation. She noted that the
legislation is part two to the budget cut the Division
received in FY 98. Half of the Gaming Division's staff was
laid-off. The legislation will simplify the administration
of gaming regulations. Income and Excise Audit Division
staff would be able to return to their primary task of
collecting taxes. The current gaming program is labor
intensive. In addition, the legislation contains provisions
relating to the multiple-beneficary permittees. Many
Multiple-beneficiary permittees have hired managers.
Testimony by operators stressed the need to level the field.
BOB BARTHOLOMEW, DEPUTY DIRECTOR, INCOME AND EXCISE AUDIT
DIVISION, DEPARTMENT OF REVENUE reviewed the legislation.
The 1995 Charitable Gaming Task Force came out with a series
of recommendations. Four of the recommendations are
included in the legislation; regulation of multiple-
beneficiary permittees, having all activities pay the same
percentage to the non-profit organization, simplification of
accounting procedures, and reporting procedures. Several of
the legislation's provisions were recommended by a
Legislative Budget and Audit Committee audit.
Mr. Bartholomew noted that current law provides for a
statutory minimum to be paid to permittees. All profits
above reasonable expenses must also be paid to the
permittee. The legislation removes regulation of profits
and tries to establish a minimum percentage. He emphasized
that the Department does not have the resources needed to
administer the current program as a result of budget
reductions. Under current regulation, prizes are deducted
from profits. The legislation would not deduct expenses or
prizes. The payment is off the top. He discussed the
effect of different prize pay outs on profits. High prize
payouts reduced the amount to be shared. A percentage of
gross takes a cut out of the middle. Persons that operated
with lower prize pay outs would need to go to minimum pay
out amounts. He acknowledged that flexibility would be
lost.
JOHN LOPEZ, GENERAL MANGER, ALASKA BINGO SUPPLY, INC.
ANCHORAGE testified in opposition to SB 273. He provided
members with a letter, dated 3/31/98 (copy on file). He
emphasized that consideration must be given to:
- The number and games of charities that shall fall out
of compliance.
- The different scales of economy that will be harmed by
the bill.
- Associated costs of doing business for different gaming
outlets.
- The bad commercial fishing year in the rural
communities.
- The loss of benefits to Alaska charities and to Alaska
as a whole.
- How this creates a strain on the charitable share.
Mr. Lopez emphasized that the percentage of gross will need
to be lower to allow for economic changes and competition.
He stated that 30 percent of the adjusted gross for pull
tabs would put everyone on a even basis.
MARK MARCOTT, ASSISTANT EXECUTIVE DIRECTOR, ANCHORAGE ARMED
SERVICES YMCA, ANCHORAGE testified in opposition to SB 273.
He stated that the percent of ideal gross that would be
needed to be revenue neutral as compared to the current
system would be 18.6 percent. The legislation provides for
16 percent. The percentage of ideal gross needed to be
revenue neutral would vary from 15.90 - 23.2 percent
depending on the game. He spoke in support of retaining the
70/30 split after prize pay out. He provided members with a
chart demonstrating that the YMCA would have lost $11
thousand dollars in 1996 under SB 273 (copy on file).
Co-Chair Hanley observed permittees sign a contract with the
vendor. Permittees could contract for a greater amount.
Mr. Marcott observed that under current law they receive 70
percent of the net as minimum. Co-Chair Hanley emphasized
that the legislation only specifies the minimum.
NETTIE MORMON, PRESIDENT, FAIRBANKS LIONESS CLUB, FAIRBANKS
testified in opposition to SB 273. She maintained that SB
273 would put an end to their charitable donations.
LARRY HACKENMILLER, FAIRBANKS testified in opposition to SB
273. He stated that he supports simplicity but stressed
that if "it ain't broke don't fix it." He spoke in support
of the current 70/30 split. He stated that section 27
should be retained in its present form. He stressed that
small tickets have a lot of pay backs.
Representative Davies questioned how auditors would be paid
for if the current 70 percent split was retained. Mr.
Hackenmiller maintained that auditing is unnecessary. He
acknowledged that operators have taken expenses that are not
allowed. Non-profits get their percentage up front. He
stated that an inventory audit would be sufficient.
MICHAEL TRUJILLO, KENAI testified in opposition to SB 273.
He maintained that the legislation would put small non-
profits out of business.
FRANK BISHOP, NILNILCHIK SENIOR CENTER, KENAI testified in
opposition to SB 273. He observed that the majority of the
entree's funds come from charitable gaming.
EARL MICKELSON, KODIAK referred to section 18, subsection
(3) on page 10. He stated that the subsection is
unnecessary.
GREGORY PETERSON, SALES MANAGER, ALASKA INDOOR SPORT
DISTRIBUTING, FAIRBANKS testified in opposition to SB 273.
He expressed concern that the legislation would hurt small
municipalities and rural organizations.
(Tape Change, HFC 98 - 85, Side 2)
Mr. Peterson discussed lower percentage player games. He
observed that these games attract players. The lower profit
games would be hurt by the legislation. He stated that the
legislation would reduce gaming. He spoke in support of
using net profits.
SHIRLEY MONTGOMERY, PRESIDENT, MATSU VALLEY HUMAN SOCIETY
testified in opposition to SB 273. She stressed that the
Human Society is recovering to losses occurred during a
recent fire. She noted that 60 percent of their operating
budget comes from pull tabs.
MICHELLE DUBOOSE, VOLUNTEER, MATSU VALLEY HUMAN SOCIETY
testified in opposition to SB 273. She maintained that
gross should be defined as the total sales less taxes. The
percentage of gross should be less than 5 percent. Firing
game managers should be the decision of the permittee. She
acknowledged that background checks are a good idea. She
stated that "reducing the size of a business to meet the
abilities of a regulatory agency is stupid and contrary to
sound economic growth."
RUBY SCHMIDT-BAUER, SENIOR CENTER, NILNILCHIK testified in
opposition to SB 273. She stated that they are satisfied
with the money they receive from gaming. The proceeds from
gaming make two-thirds of their revenues. Taxes should be
taken from the gross. She acknowledged that licensing
managers is a good idea, but emphasized that it would not
work to hold them accountable for proceeds. The loss of
their gaming manager would result in the loss of the
operation. Managers deserve fair compensation.
ELMER BANTA, SENIOR CENTER, NILNILCHIK testified in
opposition to SB 273. He emphasized the importance of the
Senior Center. He maintained that the Center cannot operate
with out proceeds from gaming.
GEORGE WRIGHT, ALASKA NATIVE BROTHERHOOD CAMP #2, JUNEAU
testified in opposition to SB 273. He observed that he was
a member of the Charitable Gaming Task Force. He maintained
that the legislation would eliminate 90 percent of
charitable pull tabs in Juneau. He spoke in support of high
prize pay outs. He stressed that they pay city sales tax.
He spoke in support of a sales tax credit. The sales tax
makes the difference between being in or out of compliance.
He noted that the Task Force succeeded in changing the
charitable proceeds of bingo from 10 to 15 percent of the
adjusted gross. He maintained that the Department of
Revenue should make a standard reporting form. He asserted
that the legislation would drive smaller operations out of
existence. The Task Force recommended that enforcement be
funded. He observed that operators have become multiple-
beneficiary permittees. Operators and managers do not
negotiate with charities. He questioned how long permits
would be revoked for being out of compliance.
In response to a question by Co-Chair Therriault, Mr. Wright
observed that Anchorage bingo operators are having a hard
time due to a pricing war.
Representative Grussendorf asked if there was discussion of
taking taxes off the gross. Mr. Wright responded that the
city of Juneau has not allowed consideration of the tax. He
stressed that he would support payment of the sales tax
after deductions for prizes. He noted that every game has a
fixed prize amount. Representative Grussendorf stated that
gross could be anything minus local taxes paid. Mr. Wright
stated that gross should be less prize pay outs. He
maintained that no one makes money until the prize is paid
out.
Representative Davies noted that the city sales tax, taxes
every transaction. He questioned if there is any way to
charge only for games actually paid. Mr. Wright stated that
the tax is figured on the gross amount of tickets. He
pointed out that they are paying tax on tickets that were
stolen and on playbacks.
Representative Grussendorf pointed out that section 31
provides that gross receipts would exclude local and federal
taxes. Mr. Wrights concern was with the payment of the
local tax on the gross.
BRIAN DAVIES, MEMBER, BOARD OF DIRECTORS, ANCHORAGE
SYMPHONY, ANCHORAGE testified in opposition to SB 273. He
observed the importance of ticket receipts to the symphony.
He expressed concern with the change in methodology. He
spoke against penalties on the gaming manager.
MICHAEL SLEZAK, RIPPIE WORLD II, ANCHORAGE testified in
opposition to SB 273. He stated that the legislation is not
revenue neutral. He maintained that the legislation would
reduce gaming operations. He maintain that the Department
of Revenue wants to reduce gaming in the state of Alaska.
He stated that background checks are a good idea. He
stressed that there are factors outside of the manager's
control such as weather.
DAVID LAMBERT, FAIRBANKS JUNIOR DOG MUSHERS, FAIRBANKS
testified in opposition to SB 273. He observed that no one
from a qualified organization has supported the legislation.
He emphasized that the 10 percent requirement for other
gaming activities would require that dogsled races pay a
minimum of 10 percent profit. He maintained that dogsled
races do not make money. He stated that "dog mushers'
association" in section 19 should be changed to "qualified
organization." He observed that the Iditarod is not a dog
mushing association. It is a corporation.
TABER REHBAUM, DIRECTOR, BIG BROTHERS BIG SISTERS, FAIRBANKS
testified in opposition to SB 273. She stressed that pull
tab revenue accounts for an important portion of their
budget. She spoke in support of the current regulations.
She did not think that the changes would result in a
significant increase to the permittee. She noted that
operators could be adversely impacted. They cannot afford
to run pull tabs without an operator. She observed that the
legislation would remove flexibility in terms of economic
changes for the operator. Their organization would have
very little financial change from the legislation.
DEAN BABCOCK, MATSU VALLEY HUMAN SOCIETY testified in
opposition to SB 273. He spoke against the change in
provisions relating to managers of multiple-beneficiary
permittees. He stated that 7 percent of the gross is too
high for pull tabs. He maintained that the intent of the
legislation is to reduce the number of charitable gaming
participants. He observed that the lack of support for the
legislation.
MARY BABCOCK, MATSU VALLEY HUMAN SOCIETY testified in
opposition to SB 273. She maintained that the legislation
focuses on making the Department of Revenue's job easier and
not on what is good for the gaming business. She asserted
that the 7 percent requirement is too high. Taxes should be
deducted from the gross.
GLORIA HAMILTON, NILNILCHIK SENIOR CENTER, NILNILCHIK
testified in opposition to SB 273. She stressed that the
Senior Center needs the proceeds from pull tabs to operate.
DANNY DARROUTTE, NILNILCHIK SENIOR CENTER, NILNILCHIK
testified in opposition to SB 273. He observed that the
Center needs an operator to run their permit. The
Nilnilchik Senior Center received $36 thousand dollars from
pull tabs and $14 thousand dollars from the State in FY 98.
(Tape Change, HFC 98 -86, Side 1)
ESTY SHEMTOV, NON-PROFIT COORDINATOR, HELPING HANDS,
ANCHORAGE testified in opposition to SB 273. She stressed
that the non-profits rely on funds from the pull tab
industry. She maintained that non-profits would be hurt "as
the pull tab industry withers for lack of profit."
DOUG ASKERMAN, EXECUTIVE OFFICER, ANCHORAGE HOME BUILDERS
ASSOCIATION, ANCHORAGE testified in opposition to SB 273.
He noted that revenues from pull tabs are used for
scholarships. He stated that they are happy with the
current regulations.
PERRY GREEN, ANCHORAGE testified in opposition to SB 273.
He stressed that the legislation is not revenue neutral. He
maintained that the Department of Revenue has not listened
to suggestions from the gaming industry. He maintained that
the legislation's impact would be catastrophic.
DICK BISHOP, ALASKA OUTDOOR COUNCIL, FAIRBANKS testified in
opposition to SB 273. He expressed concern with the
viability of pull tab operators. He asserted that the
legislation risks undermining the effectiveness of non-
profit organizations.
MINNIE FISHER, VOLUNTEER, MATSU VALLEY HUMAN SOCIETY
testified in opposition to SB 273. She maintained that the
legislation is an attempt to reduce gaming establishments
around the State. She maintained that the gaming unit
should be moved to the Department of Commerce and Economic
Development. She stated that the legislation would destroy
a source of needed income.
ROBERT MONTGOMERY, VOLUNTEER, MATSU VALLEY HUMAN SOCIETY
testified in opposition to SB 273. He maintained that the
legislation would reduce gaming revenue and put pull tab
stores out of business.
LAURA ELIAS, EXECUTIVE DIRECTOR, NILNILCHIK SENIOR CENTER,
NILNILCHIK testified in opposition to SB 273. She observed
that the Center operates with 90 percent volunteers. A
large portion of their operating expenses are through pull
tab revenues. She stressed that they provide critical
services. She pointed out that jobs would be effected if
gaming operations are closed.
ANGELINA LUNDY, ALASKA NATIVE BROTHERHOOD CAMP #2, JUNEAU
testified in opposition to SB 273. She emphasized that pull
tab proceeds help small villages that have low employment.
ROGER MCCOY, JUNEAU testified in opposition to SB 273. He
observed that the primary intent of SB 273 is to increase
non-profit revenues. He observed that the legislation
allows sales tax can be removed from the gross sales.
Current law allow a deduction for expenses. He emphasized
that the Department of Revenue determined the charitable
share of 7 percent based on figures that are two years old.
He maintained that expenses have increased. He maintained
that because of the method to establish the charitable share
that pull tab operators will not longer sell pull tabs for
charities. He provided members with calculations of
prohibits under current law and SB 273 (copy on file). He
asserted that the legislation will only work after 90
percent of the sales outlets have closed. He stressed that
employees will lose their jobs and gaming distributors will
have thousands of dollars in stock that they would not be
able to sell.
CONSTANCE MUNRO, JUNEAU testified in opposition to SB 273.
She recounted her experience with budget reductions. She
maintained that the Department of Revenue can continue to
audit without going on site. She suggested single site
audits, accountability through a three year cycle. She is a
full time volunteer. She pointed out the difficulty
charities have in raising operating expenses. She stated
that if charities lose money they will have no where to turn
in a downsizing economy.
DAN LABROSSE, DIRECTOR, DEATH COMMUNITY SERVICES, FAIRBANKS
testified in opposition to SB 273. Over 50 percent of their
fund raising activity comes from pull tabs. He expressed
concern that a calculation based on gross sales would
directly impact the marketability of the gaming activity.
High percent pay-back games attract players. Operators
would be penalized for high percentage pay-back games under
the legislation. He pointed out that raffles could be
adversely affected. He stated that they received 5 percent
of the gross revenues in 1997.
Co-Chair Therriault asked if people would still play if the
highest pay-out was 80 percent. Mr. Labrosse thought that
gross sales would go down.
ALLYN YANISH, DISTRIBUTOR, FAIRBANKS testified in opposition
to SB 273. He referred to section 28. He observed that
there would be $24 dollar loss per game to charities if
games were sold at 16 percent net. The legislation would
encourage vendors to use higher profit games. This would
further reduce money to non-profits.
SB 273 was HELD in Committee for further consideration.
HOUSE BILL NO. 12
"An Act relating to civil liability for injuries or
death resulting from equine activities."
Co-Chair Therriault provided members with a proposed
committee substitute for HB 12, work draft 0-LS0097\B,
3/30/98 (copy on file). The proposed committee substitute
substitutes language passed by the legislature in HB 300
during the 1994 legislative session. The committee
substitute broadens the legislation to cover civil liability
for commercial recreational activities.
Representative Davis referred to page 2, lines 2 - 8. He
expressed concern that the legislation would limit insurance
death and disability collections due to the fact that the
deceased is contributory negligent.
Representative Davies provided members with Amendment 1
(copy on file).
HB 12 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 4:03 p.m.
House Finance Committee 13 4/1/98
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