Legislature(2019 - 2020)BUTROVICH 205

03/17/2020 03:30 PM STATE AFFAIRS

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Audio Topic
03:43:46 PM Start
03:44:47 PM SB88
03:50:46 PM Confirmation Hearing(s)
04:06:48 PM SJR14
04:08:36 PM SB188
05:08:51 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 88 OFFICE OF ADMINISTRATIVE HEARINGS TELECONFERENCED
Moved CSSB 88(STA) Out of Committee
+= HB 83 PROHIBIT VOTING BY FACSIMILE TELECONFERENCED
Scheduled but Not Heard
+ Consideration of Governor's Appointees: TELECONFERENCED
Personnel Board
- Craig Johnson
Alaska Public Offices Commission
- Hardy Lawrence
- Daniel LaSota
-- Public Testimony on All Appointees --
*+ SB 188 LOTTERY: PUB. CORP; FUND; UNLAWFUL SALE TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SJR 14 CONST. AM: VOTES NEEDED FOR VETO OVERRIDE TELECONFERENCED
Moved SJR 14 Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 17, 2020                                                                                         
                           3:43 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Joshua Revak, Chair                                                                                                     
Senator David Wilson                                                                                                            
Senator Scott Kawasaki                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator John Coghill, Vice Chair                                                                                                
Senator Mia Costello                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 88                                                                                                              
"An  Act  relating  to the  office  of  administrative  hearings;                                                               
relating to  the types  of proceedings handled  by the  office of                                                               
administrative hearings;  relating to  the entities that  may use                                                               
the services  of the office of  administrative hearings; relating                                                               
to the  duties of the  chief administrative law  judge, including                                                               
the   power  to   hire  professional   staff;  relating   to  the                                                               
qualifications   and  powers   of   administrative  law   judges,                                                               
including  subpoena power;  relating to  the compensation  of the                                                               
chief administrative  law judge;  relating to  complaints against                                                               
administrative  law  judges  and hearing  officers;  relating  to                                                               
reimbursement for costs incurred  by the office of administrative                                                               
hearings; relating  to procedures  for requesting  and conducting                                                               
proceedings  of  the  office   of  administrative  hearings;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSSB 88(STA) OUT OF COMMITTEE                                                                                      
                                                                                                                                
CONFIRMATION HEARING(S)                                                                                                         
                                                                                                                                
Personnel Board                                                                                                               
Craig Johnson - Anchorage                                                                                                       
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
Alaska Public Offices Commission                                                                                              
Hardy (Van) Lawrence - Fairbanks                                                                                                
    Daniel LaSota - Fairbanks                                                                                                   
                                                                                                                                
         - CONFIRMATIONS ADVANCED                                                                                               
                                                                                                                                
    SENATE JOINT RESOLUTION NO. 14                                                                                              
    Proposing an amendment to the Constitution of the State of                                                                  
    Alaska relating to actions upon veto.                                                                                       
                                                                                                                                
         - MOVED SJR 14 OUT OF COMMITTEE                                                                                        
                                                                                                                                
    SENATE BILL NO. 188                                                                                                         
    "An  Act establishing the Alaska Lottery Corporation; relating to                                                           
    the  powers, duties,  and laws  applicable to  the Alaska Lottery                                                           
    Corporation;  establishing a  lottery profits fund  as an account                                                           
    of  the general fund; establishing the  crime of unlawful sale of                                                           
    a lottery ticket; and providing for an effective date."                                                                     
                                                                                                                                
         - HEARD & HELD                                                                                                         
                                                                                                                                
    COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 83(STA) AM(EFD DEL)                                                                 
    "An Act relating to voting by electronic transmission in a state                                                            
    election."                                                                                                                  
                                                                                                                                
         - SCHEDULED BUT NOT HEARD                                                                                              
                                                                                                                                
    PREVIOUS COMMITTEE ACTION                                                                                                 
                                                                                                                                
    BILL: SB 88                                                                                                               
    SHORT TITLE: OFFICE OF ADMINISTRATIVE HEARINGS                                                                              
    SPONSOR(s): MICCICHE                                                                                                        
                                                                                                                                
    03/13/19       (S)       READ THE FIRST TIME - REFERRALS                                                                    
    03/13/19       (S)       STA, FIN                                                                                           
    03/10/20       (S)       STA AT 3:30 PM BUTROVICH 205                                                                       
    03/10/20       (S)       Heard & Held                                                                                       
    03/10/20       (S)       MINUTE(STA)                                                                                        
    03/17/20       (S)       STA AT 3:30 PM BUTROVICH 205                                                                       
                                                                                                                                
    BILL: SJR 14                                                                                                              
    SHORT TITLE: CONST. AM: VOTES NEEDED FOR VETO OVERRIDE                                                                      
    SPONSOR(s): JUDICIARY                                                                                                       
                                                                                                                                
    01/24/20       (S)       READ THE FIRST TIME - REFERRALS                                                                    
    01/24/20       (S)       STA, JUD, FIN                                                                                      
    02/25/20       (S)       STA AT 3:30 PM BUTROVICH 205                                                                       
    02/25/20       (S)       Heard & Held                                                                                       
    02/25/20       (S)       MINUTE(STA)                                                                                        
03/12/20       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
03/12/20       (S)       Heard & Held                                                                                           
03/12/20       (S)       MINUTE(STA)                                                                                            
03/17/20       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 188                                                                                                                  
SHORT TITLE: LOTTERY: PUB. CORP; FUND; UNLAWFUL SALE                                                                            
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/12/20       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/12/20       (S)       STA, FIN                                                                                               
03/17/20       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BETTY TANGEMAN, Staff                                                                                                           
Senator Josh Revak                                                                                                              
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Explained the changes in the committee                                                                    
substitute (CS) for SB 88, version S.                                                                                           
                                                                                                                                
SENATOR PETER MICCICHE                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 88.                                                                                         
                                                                                                                                
CRAIG JOHNSON, Appointee                                                                                                        
Personnel Board                                                                                                                 
Department of Administration                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee to the Personnel                                                                   
Board.                                                                                                                          
                                                                                                                                
DAN LASOTA, Appointee                                                                                                           
Alaska Public Offices Commission (APOC)                                                                                         
Department of Administration                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee to the Alaska Public                                                               
Offices Commission.                                                                                                             
                                                                                                                                
HARDY (VAN) LAWRENCE, Appointee                                                                                                 
Alaska Public Offices Commission                                                                                                
Department of Administration                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee to the Alaska Public                                                               
Offices Commission.                                                                                                             
                                                                                                                                
    GREGORY SAMORAJSKI, Senior Development Executive                                                                            
    Department of Commerce, Community and Economic Development                                                                  
    Anchorage, Alaska                                                                                                           
    POSITION STATEMENT: Presented a PowerPoint on SB 188.                                                                     
                                                                                                                                
    BISHOP WOOSLEY, Director                                                                                                    
    Arkansas Lottery; President                                                                                                 
    North American Association of State & Provincial Lotteries                                                                  
    Little Rock, Arkansas                                                                                                       
    POSITION STATEMENT: Testified in support of SB 188.                                                                       
                                                                                                                                
    DAVID BARTON, Director                                                                                                      
    New Mexico Lottery                                                                                                          
    Albuquerque, New Mexico                                                                                                     
    POSITION STATEMENT: Provided information on the New Mexico                                                                
    Lottery system during the hearing on SB 188.                                                                                
                                                                                                                                
    KEVIN COCHRAN, Government Affairs Manager                                                                                   
    Draft Kings, Inc.                                                                                                           
    Boston, Massachusetts                                                                                                       
    POSITION STATEMENT: Testified in support of SB 188.                                                                       
                                                                                                                                
    KEVIN MCKINLEY, Member                                                                                                      
    Alaska Shriners; Member                                                                                                     
    Alaska Charitable Gaming Association                                                                                        
    Fairbanks, Alaska                                                                                                           
    POSITION STATEMENT: Raised questions with SB 188.                                                                         
                                                                                                                                
    SANDY POWERS, President                                                                                                     
    Alaska Charitable Gaming Alliance                                                                                           
    Anchorage, Alaska                                                                                                           
    POSITION STATEMENT: Testified in opposition to SB 188.                                                                    
                                                                                                                                
    DAVID LAMBERT, Owner                                                                                                        
    Tab Wizard of Alaska                                                                                                        
    Fairbanks, Alaska                                                                                                           
    POSITION STATEMENT: Raised questions with SB 188.                                                                         
                                                                                                                                
    LES BURNAL, National Director                                                                                               
    Stop Predatory Gambling                                                                                                     
    Washington, D.C.                                                                                                            
    POSITION STATEMENT: Testified in opposition to SB 188.                                                                    
                                                                                                                                
    MAC MEINERS, Owner                                                                                                          
    Rippie World                                                                                                                
    Anchorage, Alaska                                                                                                           
POSITION STATEMENT: Raised concerns about SB 188.                                                                             
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:43:46 PM                                                                                                                    
CHAIR  JOSHUA  REVAK called  the  Senate  State Affairs  Standing                                                             
Committee meeting  to order at 3:43  p.m. Present at the  call to                                                               
order were Senators Coghill, Wilson, and Chair Revak.                                                                           
                                                                                                                                
            SB 88-OFFICE OF ADMINISTRATIVE HEARINGS                                                                         
                                                                                                                                
3:44:47 PM                                                                                                                    
CHAIR REVAK  announced the consideration  of SENATE BILL  NO. 88,                                                               
"An  Act  relating  to the  office  of  administrative  hearings;                                                               
relating to  the types  of proceedings handled  by the  office of                                                               
administrative hearings;  relating to  the entities that  may use                                                               
the services  of the office of  administrative hearings; relating                                                               
to the  duties of the  chief administrative law  judge, including                                                               
the   power  to   hire  professional   staff;  relating   to  the                                                               
qualifications   and  powers   of   administrative  law   judges,                                                               
including  subpoena power;  relating to  the compensation  of the                                                               
chief administrative  law judge;  relating to  complaints against                                                               
administrative  law  judges  and hearing  officers;  relating  to                                                               
reimbursement for costs incurred  by the office of administrative                                                               
hearings; relating  to procedures  for requesting  and conducting                                                               
proceedings  of  the  office   of  administrative  hearings;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
He  said this  is  the  second hearing  on  the  bill and  public                                                               
testimony was heard on March 10,  2020. He noted that there was a                                                               
committee substitute (CS) and solicited a motion.                                                                               
                                                                                                                                
3:45:06 PM                                                                                                                    
SENATOR COGHILL moved to adopt  the committee substitute (CS) for                                                               
SB 88, work draft 31-LS0284\S, as the working document.                                                                         
                                                                                                                                
CHAIR REVAK objected for discussion purposes.                                                                                   
                                                                                                                                
3:45:36 PM                                                                                                                    
BETTY  TANGEMAN,   Staff,  Senator   Josh  Revak,   Alaska  State                                                               
Legislature,  Juneau,   Alaska,  on  behalf  of   the  committee,                                                               
explained the  changes in the committee  substitute (CS), version                                                               
S.  She   said  the  Office  of   Administrative  Hearings  (OAH)                                                               
requested a drafting error be fixed.  On page 8, line 18 the time                                                               
limit for the  final decision maker to issue  a proposed decision                                                               
    would change  from 45 to 20 days. This would be limited to boards                                                           
    and   commissions.   OAH  explained   that  because   boards  and                                                           
    commissions  must  act  in  a  public  meeting  and  must provide                                                           
    advance public  notice to take up a proposed decision, the 20-day                                                           
    timeframe  is  sufficient.  The  requirement  for  public  notice                                                           
    ensures  that the  board or  commission will  have ample  time to                                                           
    review  the  case before  acting.  She  noted that  the  bill was                                                           
    initially  introduced in 2019, so it  was necessary to update the                                                           
    effective date in Section 22 to July 1, 2021.                                                                               
                                                                                                                                
    3:47:01 PM                                                                                                                
  CHAIR REVAK removed his objection and version S was adopted.                                                                  
                                                                                                                                
    He  said the sponsor provided a  response to the question Senator                                                           
    Kawasaki  raised  at  the  last meeting  and  copies  are  in the                                                           
    packets.                                                                                                                    
                                                                                                                                
    3:48:12 PM                                                                                                                
    SENATOR   PETER  MICCICHE,  Alaska   State  Legislature,  Juneau,                                                           
    Alaska,  sponsor of  SB 88,  said this  bill will  streamline the                                                           
    process  for hearing  administrative appeals  and update  the 16-                                                           
    year-old  statutes. He offered his view  that the bill will allow                                                           
    timely, cost effective, and high-quality adjudication services.                                                             
                                                                                                                                
    CHAIR REVAK asked for the will of the committee.                                                                            
                                                                                                                                
    3:48:54 PM                                                                                                                
    SENATOR  COGHILL moved  to report  the committee  substitute (CS)                                                           
    for   SB   88,  version   S,   from  committee   with  individual                                                           
    recommendations and attached fiscal note.                                                                                   
                                                                                                                                
    There  being no  objection,  CSSB 88(STA)  was reported  from the                                                           
    Senate State Affairs Standing Committee.                                                                                    
                                                                                                                                
    3:49:21 PM                                                                                                                
    At ease                                                                                                                     
                                                                                                                                
    ^CONFIRMATION HEARING(S)                                                                                                    
                         CONFIRMATION HEARING(S)                                                                            
                             Personnel Board                                                                                
                     Alaska Public Offices Commission                                                                       
                                                                                                                              
    3:50:46 PM                                                                                                                
    CHAIR  REVAK announced the  consideration of governor appointees.                                                           
    He  asked Mr. Craig Johnson, appointee,  Personnel Board, to come                                                           
    forward.                                                                                                                    
                                                                                                                                
3:51:05 PM                                                                                                                    
CRAIG   JOHNSON,  Appointee,   Personnel  Board,   Department  of                                                               
Administration, Anchorage,  Alaska, stated that he  was appointed                                                               
to the Personnel  Board last year and has served  for one year in                                                               
this capacity. This is a  reappointment. He previously served for                                                               
ten years  as a legislator.  During that  time, he served  on the                                                               
Ethics Committee,  so he  understands administrative  ethics. His                                                               
prior service  gives him  the ability  to interpret  statutes and                                                               
regulations,  he said.  The Personnel  Board  is responsible  for                                                               
establishing   the    status   of    employees   in    terms   of                                                               
classifications,  monitoring disclosure  reports, and  serving as                                                               
the ethics  committee in  the event  of an  administrative ethics                                                               
complaint.  The board  has met  twice, primarily  to ensure  that                                                               
other boards  and commissions submit  timely reports. He  said he                                                               
enjoys the work  and appreciates the opportunity  to continue his                                                               
public service.                                                                                                                 
                                                                                                                                
3:52:42 PM                                                                                                                    
SENATOR COGHILL  asked what  issues rise to  the surface  for the                                                               
Personnel Board.                                                                                                                
                                                                                                                                
MR. JOHNSON  answered the board  works to ensure that  members of                                                               
other boards  and commissions  meet their  statutory requirements                                                               
to file their conflict of  interest statements. There are several                                                               
cases pending, which  he cannot discuss, but  primarily the board                                                               
tracks  activities to  ensure that  the statutory  guidelines are                                                               
followed.                                                                                                                       
                                                                                                                                
SENATOR COGHILL thanked him for being willing to serve.                                                                         
                                                                                                                                
3:54:06 PM                                                                                                                    
CHAIR REVAK thanked him for being willing to serve.                                                                             
                                                                                                                                
He   asked  Mr.   LaSota,   appointee,   Alaska  Public   Offices                                                               
Commission, to tell  the committee about his  interest in serving                                                               
on the Alaska Public Offices Commission.                                                                                        
                                                                                                                                
3:54:50 PM                                                                                                                    
DAN LASOTA,  Appointee, Alaska Public Offices  Commission (APOC),                                                               
Department  of Administration,  Fairbanks, Alaska,  said Governor                                                               
Dunleavy appointed him to serve on  APOC. He related that he came                                                               
to  Alaska in  1987  as  a graduate  student.  He  served on  the                                                               
Fairbanks North Star  Borough Assembly five years  later. He said                                                               
his interest  in serving is  rooted in  the idea that  the public                                                               
needs good  representation. He was initially  interested in local                                                               
education, library,  and recycling  issues, but he  found himself                                                               
    drawn  to  advocate  in  many  areas.  He  opined  that the  most                                                           
    important  work of  local government is  for their  members to be                                                           
    open  to listen to  diverse viewpoints  on a range  of issues. He                                                           
    has direct  experience as a campaign manager and candidate, so he                                                           
    is  familiar with APOC reporting for municipal campaigns. He said                                                           
    he is  a Democrat, and is proud of that, but he is proud of being                                                           
    an  Alaskan  first. He  said  he hopes  people will  view  him as                                                           
    someone  who  pays  attention  to  details,  is  well  briefed on                                                           
    issues,  including the  statutory requirements, and  who is fair.                                                           
    He  stated his goal  is to maintain openness  and transparency of                                                           
    elections,  commissions, and government. He offered his view that                                                           
    Alaskans can  reach goals for the common good by listening to one                                                           
    another  and by  separating themselves  from divisive  issues. He                                                           
    looks forward to serving, if confirmed.                                                                                     
                                                                                                                                
    3:57:35 PM                                                                                                                
    SENATOR  COGHILL expressed gratitude for his willingness to serve                                                           
    in this important task.                                                                                                     
                                                                                                                                
    CHAIR REVAK echoed the previous statement.                                                                                  
                                                                                                                                
    He  asked  Mr.  Van  Lawrence to  tell  the  committee  about his                                                           
    qualifications to serve on the Alaska Public Offices Commission.                                                            
                                                                                                                                
    3:59:07 PM                                                                                                                
    HARDY   (VAN)   LAWRENCE,   Appointee,   Alaska   Public  Offices                                                           
    Commission,  Department  of  Administration,  Fairbanks,  Alaska,                                                           
    said  he  was  raised  in Texas  and  received  his undergraduate                                                           
    degree   from  the  School  of   Foreign  Service  at  Georgetown                                                           
    University  and  a law  degree from  the  College of  William and                                                           
    Mary.  He  moved to  Alaska  in 1978  and  has owned  a  solo law                                                           
    practice  for 40  years. He  also served  on the  Fairbanks North                                                           
    Star  Borough Assembly  for two terms.  He was  appointed to this                                                           
    seat  last June and  has participated in  three regular meetings.                                                           
    His  qualifications  include his  legal education  and experience                                                           
    that  help  him to  understand  statutes, evaluate  evidence, and                                                           
    adjudicate  disputes. He has run for  elective office four times,                                                           
    including  running  for the  legislature,  so he  understands how                                                           
    campaigns work and how money is raised.                                                                                     
                                                                                                                                
    4:00:50 PM                                                                                                                
    SENATOR KAWASAKI joined the committee.                                                                                      
                                                                                                                                
    SENATOR COGHILL thanked him for his willingness to serve.                                                                   
                                                                                                                                
MR. LAWRENCE said  it is an honor  to do so. He  offered his view                                                               
that  fair elections  are  crucial for  a  healthy democracy  and                                                               
APOC's work is important in that equation.                                                                                      
                                                                                                                                
CHAIR REVAK  asked if there was  any concern or specific  area he                                                               
would like to address.                                                                                                          
                                                                                                                                
MR.  LAWRENCE  replied  he has  received  several  "pretty  scary                                                               
letters" from APOC. He explained that  the law provides a $50 per                                                               
day fine for  failure to report. However, nine  days preceding an                                                               
election, that  fine is increased to  $500 per day, but  the next                                                               
reporting  date  is  in  February.  This  means  that  candidates                                                               
receive  letters emphasizing  the  $500 per  day potential  fines                                                               
they face.                                                                                                                      
                                                                                                                                
He acknowledged that  the letters are based on the  law and staff                                                               
and the commission cannot do much  about it. He agreed that these                                                               
fines are  warranted for  intentional actions,  but in  his view,                                                               
intentional violations  are rare. The  big problem is  that there                                                               
is  90  days  between  the  election  and  the  follow-up  report                                                               
deadline, which means the $500 per day fine accrues each day.                                                                   
                                                                                                                                
He said  he understands that  APOC must advise candidates  of the                                                               
maximum potential  fines, but  he would like  to see  the letters                                                               
sent to candidates indicate that if  the violation is found to be                                                               
unintentional, the fines will not  be that high. He suggested the                                                               
legislature may wish  to consider amending that  language to give                                                               
APOC   more  flexibility.   These  letters   create  stress   for                                                               
candidates  and may  deter  people from  running  for office,  he                                                               
said.                                                                                                                           
                                                                                                                                
CHAIR REVAK said that was a good point to consider.                                                                             
                                                                                                                                
4:04:55 PM                                                                                                                    
CHAIR REVAK  opened public testimony and  after first determining                                                               
no  one  wished  to  testify,  closed  public  testimony  on  the                                                               
confirmation hearings.                                                                                                          
                                                                                                                                
4:05:15 PM                                                                                                                    
CHAIR  REVAK stated  that in  accordance with  AS 39.05.080,  the                                                               
Senate State  Affairs Standing  Committee reviewed  the following                                                               
and recommends the  appointments be forwarded to  a joint session                                                               
for consideration:                                                                                                              
                                                                                                                                
Personnel Board                                                                                                               
Craig Johnson - Anchorage                                                                                                       
                                                                                                                                
    Alaska Public Offices Commission                                                                                          
    Daniel LaSota - Fairbanks                                                                                                   
    Hardy (Van) Lawrence - Fairbanks                                                                                            
                                                                                                                                
    Signing   the  reports  regarding   appointments  to  boards  and                                                           
    commissions  in no  way reflects individual  members' approval or                                                           
    disapproval   of  the  appointees;  the  nominations  are  merely                                                           
    forwarded to the full legislature for confirmation or rejection.                                                            
                                                                                                                                
    4:05:52 PM                                                                                                                
    At ease                                                                                                                     
                                                                                                                                
             SJR 14-CONST. AM: VOTES NEEDED FOR VETO OVERRIDE                                                               
                                                                                                                                
    4:06:48 PM                                                                                                                
    CHAIR   REVAK   reconvened   the   meeting   and   announced  the                                                           
    consideration  of SENATE  JOINT RESOLUTION  NO. 14,  Proposing an                                                           
    amendment to  the Constitution of the State of Alaska relating to                                                           
    actions upon veto.                                                                                                          
                                                                                                                                
    He  noted that the bill was heard  twice on February 25, 2020 and                                                           
    March 12, 2020 and public testimony was heard.                                                                              
                                                                                                                                
    4:07:11 PM                                                                                                                
    SENATOR  COGHILL  moved  to  report SJR  14  from  committee with                                                           
    individual recommendations and the attached fiscal note.                                                                    
                                                                                                                                
    CHAIR  REVAK found no objection and SJR  14 was reported from the                                                           
    Senate State Affairs Standing Committee.                                                                                    
                                                                                                                                
    4:07:28 PM                                                                                                                
    At ease                                                                                                                     
                                                                                                                                
              SB 188-LOTTERY: PUB. CORP; FUND; UNLAWFUL SALE                                                                
                                                                                                                                
    4:08:36 PM                                                                                                                
    CHAIR   REVAK   reconvened   the   meeting   and   announced  the                                                           
    consideration  of SENATE BILL  NO. 188, "An  Act establishing the                                                           
    Alaska  Lottery Corporation; relating to  the powers, duties, and                                                           
    laws  applicable to the  Alaska Lottery Corporation; establishing                                                           
    a  lottery  profits  fund  as an  account  of  the  general fund;                                                           
    establishing the  crime of unlawful sale of a lottery ticket; and                                                           
    providing for an effective date."                                                                                           
                                                                                                                                
4:10:08 PM                                                                                                                    
GREGORY SAMORAJSKI,  Senior Development Executive,  Department of                                                               
Commerce, Community and  Economic Development (DCCED), Anchorage,                                                               
Alaska,  began a  PowerPoint,  "A Proposal  to  Create an  Alaska                                                               
State  Lottery   Corporation."  He  reviewed  slide   2,  Lottery                                                               
History:                                                                                                                        
                                                                                                                                
     •  New Hampshire 1964                                                                                                      
     •  Instant Scratch-Off Tickets 1970                                                                                        
     •  Multi-State Draw Games                                                                                                  
        • Powerball 1988                                                                                                        
        • Mega Millions 1996                                                                                                    
     •  45 States Currently Operate Lotteries                                                                                   
                                                                                                                                
The  modern lotteries  began in  New Hampshire  with a  draw-type                                                               
game. Draw-type games are ones where  draws are taken from an urn                                                               
and the players match the numbers to their tickets to win.                                                                      
                                                                                                                                
He said states who participate  in Powerball lotteries pool their                                                               
resources to produce  large prizes. He related that 43  of the 45                                                               
states that  currently operate lotteries  offer draw  and instant                                                               
game  lotteries. If  Alaska were  to  adopt a  lottery, it  would                                                               
become the 46th state to do so.                                                                                                 
                                                                                                                                
4:12:17 PM                                                                                                                    
MR.  SAMORAJSKI reviewed  slide  3, Lotteries  are a  Significant                                                               
Revenue Source:                                                                                                                 
                                                                                                                                
     •  Total National Sales $85.6 Billion in 2018                                                                              
                                                                                                                                
He said  that of  the $85.6  billion in  2018, $23.4  billion has                                                               
been returned to the state general funds or education funds.                                                                    
                                                                                                                                
4:12:54 PM                                                                                                                    
MR.   SAMORAJSKI  reviewed   slide   4,  No   Longer  Just   Your                                                               
Grandfather's Lottery!                                                                                                          
                                                                                                                                
     Traditional Games 2018 Revenues in $Billions                                                                               
     •  Power Ball, Mega Millions $8.3 All States                                                                               
     •  Other Draw Games $15.5 -All States                                                                                      
      •  Instant Scratch-Offs $49.6 All States Except ND                                                                        
     and WY                                                                                                                     
     •  Total Traditional $73.4                                                                                                 
     •  Total All Games $85.6                                                                                                   
                                                                                                                                
    He said the vast majority of the $73.4 billion was from                                                                     
    scratch-off tickets.                                                                                                        
                                                                                                                                
         New Games 2018 Revenues in $Billions                                                                                   
         •  Monitor Games Like Keno $4.4 19 States Plus DC                                                                      
         •  Video Lottery Terminals $6.9 8 States: DE, MD,                                                                      
         NY, OH, OR, RI, SD, WV                                                                                                 
                                                                                                                                
    He  noted  that  these  games are  typically  played  in  bars or                                                           
    restaurants.                                                                                                                
                                                                                                                                
    4:14:34 PM                                                                                                                
    MR. SAMORAJSKI reviewed slide 5, Revenue Breakdown Example:                                                                 
                                                                                                                                
         •  Prize Money 60%                                                                                                     
         •  Retailer Commissions 6%                                                                                             
         •  Gaming Contractor 10%                                                                                               
         •  Administration 4%                                                                                                   
         •  Transfer to General Fund 20%                                                                                        
                                                                                                                                
    4:15:49 PM                                                                                                                
    MR.  SAMORAJSKI  reviewed slide  6,  How Are  States  Like Alaska                                                           
    Doing  2018 Results:                                                                                                        
                                                                                                                                
       Revenues in $Million/State Share $Million/% Return                                                                       
         •  Wyoming $28.70/$5.0/17.45%                                                                                          
         •  North Dakota $31.30/$8.0/25.6%                                                                                      
         •  South Dakota $278.80/$124.7/44.7%                                                                                   
         •  Montana $56.6/$10.7/18.9%                                                                                           
         •  Maine $294.10/$63.0/21.4%                                                                                           
         •  Idaho $265.10/$53.5/20.2%                                                                                           
                                                                                                                                
    He explained  that slide 6 lists the states whose populations are                                                           
    similar  in size to Alaska. It lists  the total amount of revenue                                                           
    generated  by the  state's lottery,  then the  portion of revenue                                                           
    allocated  to  the state,  and  finally the  percentage  of total                                                           
    revenue  the  state  receives.  For  example,  Wyoming  generated                                                           
    $28.70  million  in total  revenue.  The state's  share  was $5.0                                                           
    million,  which  represents 17.45  percent  of the  total revenue                                                           
    generated  by the  lottery. States that  allow scratch-off games,                                                           
    such  as Montana and  Maine, generate more  revenue. South Dakota                                                           
    has  video  lottery terminals,  so  its revenue  is substantially                                                           
    higher, he said.                                                                                                            
                                                                                                                                
    4:17:27 PM                                                                                                                
CHAIR REVAK asked what video lottery terminals entail.                                                                          
                                                                                                                                
MR.  SAMORAJSKI  replied  these terminals  allow  games  such  as                                                               
blackjack or poker.  He said he was not advocating  for Alaska to                                                               
offer video lottery terminals, but  it is something the state may                                                               
wish to consider.                                                                                                               
                                                                                                                                
CHAIR REVAK  noted South  Dakota's return to  the state  was 44.7                                                               
percent, which is higher than all  the others. He asked if it has                                                               
anything to do with tourism.                                                                                                    
                                                                                                                                
MR.  SAMORAJSKI answered  that 44.7  percent  represents the  net                                                               
earnings  from video  lottery terminals.  The winning  percentage                                                               
for players is much higher, he said.                                                                                            
                                                                                                                                
SENATOR KAWASAKI  observed that in  North Dakota, $30  million in                                                               
revenue returned $8 million to the state.                                                                                       
                                                                                                                                
MR. SAMORAJSKI agreed  and added that the ratio  of total revenue                                                               
to net revenue is typically 20-30 percent.                                                                                      
                                                                                                                                
4:20:39 PM                                                                                                                    
SENATOR  KAWASAKI asked  if nonresidents  play and  win lotteries                                                               
while on vacation  in North Dakota. If so, the  winnings were not                                                               
necessarily money won by residents of North Dakota.                                                                             
                                                                                                                                
MR. SAMORAJSKI agreed  that anyone physically in  the state could                                                               
play the state lottery games.                                                                                                   
                                                                                                                                
SENATOR  KAWASAKI  asked  if  the  figures  on  slide  6  include                                                               
earnings from tribal gaming because  Wyoming, North Dakota, South                                                               
Dakota, and Montana permit that.                                                                                                
                                                                                                                                
MR. SAMORAJSKI answered no.                                                                                                     
                                                                                                                                
4:21:54 PM                                                                                                                    
MR. SAMORAJSKI reviewed slide 7, Potential Revenues for Alaska:                                                                 
                                                                                                                                
     With Draw Games Only - $6.5 Million                                                                                        
     •  Add Instant Scratch-Off Tickets - $35 Million                                                                           
      •  Add Video Lottery Terminals and Monitor Games -                                                                        
     $135 Million                                                                                                               
                                                                                                                                
He explained that the Department of Revenue developed these                                                                     
revenue estimates based on other states' results and scaled                                                                     
for Alaska's population.                                                                                                        
                                                                                                                                
    The  point of the slide  is to illustrate  that at least offering                                                           
    scratch-off tickets  will be necessary for a lottery to provide a                                                           
    significant source of revenue.                                                                                              
                                                                                                                                
    MR. SAMORAJSKI reviewed slide 8, Senate Bill 188:                                                                           
                                                                                                                                
         New Alaska State Lottery Corporation                                                                                   
         •  Directors Appointed by the Governor                                                                                 
         •  Broad Authority                                                                                                     
              •  Select Games                                                                                                   
              •  Promulgate Regulations                                                                                         
              •  Choose Retailers and Contractors                                                                               
                                                                                                                                
    This  slide shows  that  under a  corporate structure,  the state                                                           
    would delegate  most of the authority to operate the lottery to a                                                           
    state  lottery corporation that, in  turn, might hire contractors                                                           
    and retailers to run the lottery.                                                                                           
                                                                                                                                
    4:24:24 PM                                                                                                                
    MR.   SAMORAJSKI  reviewed   slide  9,   Possible  Implementation                                                           
    Schedule:                                                                                                                   
                                                                                                                                
         •  Legislative Approval this Session                                                                                   
         •  Board Directors Appointed Summer 2020                                                                               
         •  Executive Director Hired by Fall 2020                                                                               
         •  Organization Year FY 21 Including:                                                                                  
              •  Hire Consultant and Gaming Contractor                                                                          
              •  Appoint Retailers                                                                                              
              •  Background Checks                                                                                              
         •  FY 22 Break Even                                                                                                    
         •  FY 23 Transfers to the General Fund                                                                                 
                                                                                                                                
    He  said the idea  would be to  create a special  sub-fund in the                                                           
    general  fund  (GF)  to  deposit  the  lottery  earnings  and the                                                           
    legislature would decide on appropriations from that sub-fund.                                                              
                                                                                                                                
    4:25:39 PM                                                                                                                
    MR.  SAMORAJSKI  reviewed  slide  9,  Appropriations    Potential                                                           
    Request:                                                                                                                    
         •  FY 21 - $3 Million Capital Appropriation Request                                                                    
         with Additional Authority to Borrow Funds                                                                              
         •  FY 22  Break Even                                                                                                   
         •  FY 23 and Beyond  Payments to the State General                                                                     
         Fund                                                                                                                   
                                                                                                                                
He  estimated  that  startup  costs  would be  a  minimum  of  $3                                                               
million.  After the  break-even year,  the legislature  would not                                                               
need to appropriate any additional funds, he said.                                                                              
                                                                                                                                
4:26:27 PM                                                                                                                    
SENATOR KAWASAKI said  he was agnostic to the  idea of commercial                                                               
gaming in Alaska. Besides the  potential revenue, he asked if the                                                               
administration  examined  the  societal losses  or  downsides  of                                                               
gambling.                                                                                                                       
                                                                                                                                
MR. SAMORAJSKI said they found the  problems are more a result of                                                               
casinos  than state  lottery games.  He  acknowledged that  video                                                               
lotteries have not been around very long.                                                                                       
                                                                                                                                
4:29:12 PM                                                                                                                    
BISHOP  WOOSLEY,  Director,  Arkansas Lottery;  President,  North                                                               
American  Association of  State &  Provincial Lotteries  (NASPL),                                                               
Little  Rock, Arkansas,  spoke in  support of  SB 188.  He stated                                                               
that  the  NASPL consists  of  53  North American  lotteries;  it                                                               
advocates  on behalf  of the  lottery  industry. The  association                                                               
primarily promotes responsible  gambling and provides statistical                                                               
information  to   states.  He  characterized  the   NASPL  as  an                                                               
educational organization;  it will work with  the legislature and                                                               
the  administration while  Alaska considers  whether to  create a                                                               
lottery in the state.                                                                                                           
                                                                                                                                
CHAIR  REVAK asked  if  there have  been  societal detriments  or                                                               
negative impacts from the lottery industry in Arkansas.                                                                         
                                                                                                                                
MR. WOOSLEY  answered no.  He explained that  Arkansas has  had a                                                               
lottery  for over  10 years.  Arkansas  has found  that the  core                                                               
demographic of players who play every  day are ones who earn from                                                               
$25,000-$30,000  annually and  those who  earn $75,000  annually.                                                               
There  is no  evidence that  it has  created societal  issues. He                                                               
said Arkansas is  one of the newer lotteries and  it brought some                                                               
form  and  structure  to  the  organization  and  to  responsible                                                               
gambling  within  the state.  Prior  to  creating lotteries,  the                                                               
state  had two  rasinos in  the  state, which  are entities  that                                                               
combine racing  and casinos. At  the time, there was  very little                                                               
money directed  towards problem gambling and  little awareness of                                                               
programs that  were available. Once state  lotteries came online,                                                               
Arkansas highlighted  the national problem gambling  helpline and                                                               
made  programs available  to help  people  address their  problem                                                               
gambling issues. He said anytime  gambling is present, there will                                                               
be some people  who play more than they should,  but these people                                                               
can get  help. Arkansas  is a heavy  instant game  lottery state,                                                               
    but  thus  far there  is  no evidence  of a  societal  issue with                                                           
    instant scratch-off tickets.                                                                                                
                                                                                                                                
    4:33:25 PM                                                                                                                
    SENATOR COGHILL  asked if setting up a lottery by commission is a                                                           
    common structure.                                                                                                           
                                                                                                                                
    MR.  WOOSLEY answered that most  lotteries use a commission-based                                                           
    structure,  but  some use  a corporate,  state agency,  or quasi-                                                           
    state  agency  based  structure.  Arkansas  initially  was formed                                                           
    using a commission, but it no longer uses that structure.                                                                   
                                                                                                                                
    SENATOR   COGHILL  related  his   understanding  that  Alaska  is                                                           
    considering  a quasi-state corporation rather than a corporation.                                                           
    He  asked how to  distinguish between  residents and nonresidents                                                           
    participating  in lotteries. Alaska only has about 350,000 adults                                                           
    and is  also almost like an island since it is separated from the                                                           
    Lower 48.  He wondered if nonresidents must participate for it to                                                           
    be worthwhile for Alaska to operate a lottery.                                                                              
                                                                                                                                
    MR.  WOOSLEY responded that Arkansas  has seven border states, so                                                           
    it  has a  tourism  industry. He  related his  understanding that                                                           
    Alaska  has  a seasonal  tourism  industry. He  pointed  out that                                                           
    Wyoming  and Montana are  smaller states that  have established a                                                           
    market  for  a  lottery.  He opined  that  people  in  Alaska are                                                           
    probably  already involved  in gaming,  so there  is a  market in                                                           
    Alaska.                                                                                                                     
                                                                                                                                
    4:37:00 PM                                                                                                                
    SENATOR  KAWASAKI asked  if the  gambling hotline  in Arkansas is                                                           
    funded via revenues from legal gaming or from the general fund.                                                             
                                                                                                                                
    MR. WOOSLEY  answered that the hotline is funded by the state and                                                           
    other  gaming  entities  in  the  state.  Since  the  hotline  is                                                           
    national,  he said he was not aware  of the exact costs. Arkansas                                                           
    receives and  posts a monthly report that includes the number and                                                           
    nature of  the call, if the call was referred for assistance, and                                                           
    any  follow-up.  The  state  website has  10  years  of reporting                                                           
    listed.  He offered his view that  all gaming entities nationwide                                                           
    fund   the  hotline,  including   lotteries,  casinos,  or  other                                                           
    gambling  organizations. He said Arkansas also provides a list of                                                           
    other  resources available,  such as the  National Association of                                                           
    Problem  Gambling. Arkansas  has a  certification that  shows the                                                           
    process,  from  the creation  of  the games,  any  advertising or                                                           
    marketing, and  how the games are sold in retail. Many states are                                                           
    moving  towards that  model. He  characterized Arkansas  as self-                                                           
policing;  it uses  self-imposed  guidelines  to avoid  marketing                                                               
games that problem gamblers would find attractive.                                                                              
                                                                                                                                
4:39:48 PM                                                                                                                    
DAVID  BARTON, Director,  New  Mexico  Lottery, Albuquerque,  New                                                               
Mexico,  said he  has been  involved with  lotteries since  2001,                                                               
beginning with  his work  in South Carolina.  He worked  with Mr.                                                               
Woosley when Arkansas  began its lottery. He also  served for 15-                                                               
16  years as  a staff  attorney  for the  South Carolina  Senate,                                                               
drafting  legislation.  He  opined  that SB  188  is  a  forward-                                                               
thinking piece of legislation and that  it is important to get it                                                               
right from the start. He offered  his view that Alaskans could be                                                               
proud of  the proposed  lottery structure,  noting that  the bill                                                               
provides  that revenues  could be  used to  fund programs  in the                                                               
state  addressing   domestic  violence  prevention,   drug  abuse                                                               
prevention, foster care, seniors,  or homelessness. It also helps                                                               
promote  the lottery  since people  can  see where  the money  is                                                               
spent.  He mentioned  that Powerball  sales  nationwide are  down                                                               
about 30 percent. It is also important to have a good scratch-                                                                  
off product along  with online games to create  a good portfolio.                                                               
He  predicted  that  a  multi-jurisdictional  organization  would                                                               
likely sell  games internationally. He explained  that New Mexico                                                               
also  has tribal  casinos and  fraternal organizations  that sell                                                               
lottery products.                                                                                                               
                                                                                                                                
4:42:58 PM                                                                                                                    
SENATOR COGHILL  acknowledged that  he personally  struggles with                                                               
this.  He asked  how many  New Mexico  residents are  winners. He                                                               
expressed  concern that  Alaska  could receive  revenue, but  the                                                               
state's residents might not be lottery winners.                                                                                 
                                                                                                                                
MR.  BARTON answered  that 95  percent of  scratch games  will be                                                               
residents.  He related  his experience  in New  Mexico, including                                                               
that residents are not usually  Powerball winners. However, there                                                               
are a  few winners, he said.  Since players must wait  a few days                                                               
after  playing Powerball  to  find  out if  they  have won,  many                                                               
people prefer scratch games. He  reported that New Mexico has not                                                               
had  any problems  with  lottery  gaming, and  that  most of  the                                                               
problems arise from casinos.                                                                                                    
                                                                                                                                
4:45:58 PM                                                                                                                    
KEVIN  COCHRAN, Government  Affairs Manager,  Draft Kings,  Inc.,                                                               
Boston,  Massachusetts,   spoke  in  support  of   mobile  sports                                                               
wagering. He  said Draft  Kings, Inc.  was founded  in 2012  as a                                                               
daily fantasy  sports company, with  the goal of  bringing sports                                                               
fans  closer to  the games  they love.  Since then,  Draft Kings,                                                               
Inc.  has  evolved  into an  international  sports  entertainment                                                               
    company  with  more  than  10  million  customers  throughout the                                                           
    world.  In  May  2018,  the U.S.  Supreme  Court  invalidated the                                                           
    Professional  and Amateur Sports Protection Act of 1992 or PASPA.                                                           
    This paved  the way for states to legalize sports wagering within                                                           
    their borders.  In August 2018, Draft Kings, Inc. made history by                                                           
    being  the first  company to offer  a mobile  sports wagering app                                                           
    outside of Nevada by launching the app in New Jersey.                                                                       
                                                                                                                                
    4:47:19 PM                                                                                                                
    MR.  COCHRAN spoke  in support  of bringing  a competitive, fully                                                           
    mobile sports wagering market to Alaska.                                                                                    
                                                                                                                                
    He  stated  that  Draft  King  supports  a  legal  framework that                                                           
    protects  consumers, will generate maximum revenue for the state,                                                           
    and  stamp out  the pervasive  illegal market.  He estimated that                                                           
    138,000 people  bet over $348 million in illegal wagers each year                                                           
    through illegal online offshore websites.                                                                                   
                                                                                                                                
    MR.   COCHRAN  explained   that  mobile   sports  betting  allows                                                           
    customers  to place  bets from their  mobile phones.  He said New                                                           
    Jersey  has established itself as the  leader in states that have                                                           
    chosen  to regulate  sports wagers.  Over $3.2  billion in wagers                                                           
    have  been placed since  2018, with  over 85 percent  of the bets                                                           
    placed  via  online  platforms. Mississippi  chose  to  limit its                                                           
    wagers to  on casino premises, which led to less wagers, he said.                                                           
    Alaska   should   consider  building   a  strong   and  effective                                                           
    regulatory  regime  that  has  competitive  pricing,  includes  a                                                           
    mobile  device market, and  allows multiple operators  to serve a                                                           
    market.                                                                                                                     
                                                                                                                                
    He said  Draft King, Inc. takes seriously issues such as underage                                                           
    wagering   and   problem   gambling   and   encourages   consumer                                                           
    protections.   His   organization  uses   "know   your  customer"                                                           
    technology  to ensure underage individuals cannot create accounts                                                           
    or  place wagers. The verification process uses multiple vendors,                                                           
    working  with  leading  companies  to  monitor  and  detect  user                                                           
    locations  using  cell phone  location data,  Wi-Fi triangulation                                                           
    and  other technology.  The organization  provides safeguards for                                                           
    users  that allow  customers to set  their own  deposits and play                                                           
    limits  and to self-exclude from  participation. Users have their                                                           
    entire  transaction history available at  any time, including all                                                           
    bets  they have placed, their winnings  and losses, and a summary                                                           
    of their  plays over the last month, three months, year, or their                                                           
    lifetime.                                                                                                                   
                                                                                                                                
    MR.  COCHRAN  suggested  that  if  Alaska  wants  to  protect its                                                           
    consumers,  shutter offshore illegal  sports betting markets, and                                                           
provide the  state with  additional revenue  streams, it  is best                                                               
achieved  through  a  competitive,   fully  mobile  sports  wager                                                               
market.                                                                                                                         
                                                                                                                                
CHAIR  REVAK reminded  those  online to  limit  testimony to  two                                                               
minutes.                                                                                                                        
                                                                                                                                
4:54:20 PM                                                                                                                    
CHAIR REVAK opened public testimony on SB 188.                                                                                  
                                                                                                                                
4:54:36 PM                                                                                                                    
KEVIN   MCKINLEY,  Member,   Alaska   Shriners;  Member,   Alaska                                                               
Charitable  Gaming  Association,   Fairbanks,  Alaska,  said  the                                                               
Alaska Shriners  help children with  medical bills and  help fund                                                               
travel  so  they  make  it to  their  hospital  appointments.  He                                                               
questioned the unintended consequences of  the bill, such that it                                                               
would greatly  reduce revenue for charities.  The Alaska Shriners                                                               
help  approximately   200  children   through  the   proceeds  of                                                               
charitable  gaming.  He  asked what  effect  lotteries  in  other                                                               
states has had on charitable gaming.                                                                                            
                                                                                                                                
CHAIR REVAK said the committee will keep the question in mind.                                                                  
                                                                                                                                
4:57:00 PM                                                                                                                    
SANDY  POWERS,  President,  Alaska  Charitable  Gaming  Alliance,                                                               
Anchorage, Alaska,  spoke in opposition  to SB 188. She  said she                                                               
also owns and  operates Big Valley Bingo, which  raises money for                                                               
charities. She said  her organization opened in  2017, employs 20                                                               
Alaskans, and represents 15 charities.  In its first two years it                                                               
has  contributed over  $570,000 to  the Mat-Su  Valley community,                                                               
donating to  local charities.  She said  the alliance  thought it                                                               
should have  had a seat at  the table earlier in  the legislative                                                               
process. She expressed concern with  the expansion of gambling in                                                               
Alaska.  Much  of the  revenue  will  go  outside Alaska  and  an                                                               
estimated $100 million in revenues  will not fix the state's $1.5                                                               
billion budget gap. Many states  rank low economically, including                                                               
New Mexico,  which ranks forty-fifth  in the nation.  States with                                                               
legalized  gambling  suffer  from   increased  crime  and  drugs.                                                               
Further, under the bill, a  gaming corporation could make changes                                                               
without  legislative  oversight.  She explained  that  charitable                                                               
gaming was  created to raise  money for  nonprofit organizations.                                                               
The state  has nearly 1,100  charities that benefit from  the $35                                                               
million  raised  annually  from  charitable  gaming.  Over  1,000                                                               
Alaskans work  in the  charitable gaming  industry. She  said the                                                               
alliance has  nonprofit support from  the Alaska Police  and Fire                                                               
Chaplains, the Fraternal Order of  State Troopers, and the Alaska                                                               
    Peace  Officers Association.  She noted  that she  also submitted                                                           
    written testimony.                                                                                                          
                                                                                                                                
    CHAIR   REVAK  suggested  people   submit  written  testimony  at                                                           
    senate.stateaffairs@ak.gov.                                                                                                 
                                                                                                                                
    5:01:04 PM                                                                                                                
    DAVID   LAMBERT,   Owner,  Tab   Wizard  of   Alaska,  Fairbanks,                                                           
    Fairbanks, Alaska,  said he is a gaming operator who raises funds                                                           
    for   about  25  organizations.  He  explained  that  scratch-off                                                           
    tickets  are pull tabs. Currently,  $35 million goes to charities                                                           
    from  pull tab sales and charitable  gaming in Alaska. He offered                                                           
    his  view that the only  way to raise  $35-40 million in scratch-                                                           
    off  tickets  will  be  to take  away  funds  from  charities. He                                                           
    suggested   that  the  legislature   set  up  a   task  force  to                                                           
    investigate lotteries.                                                                                                      
                                                                                                                                
    5:02:14 PM                                                                                                                
    LES   BURNAL,   National  Director,   Stop   Predatory  Gambling,                                                           
    Washington,  D.C., spoke in opposition to  SB 188. He stated that                                                           
    his  organization  is  a nonprofit  organization  comprised  of a                                                           
    national  social reform network  of individuals and organizations                                                           
    across  the country.  Many people  gamble because they  are broke                                                           
    and  desperate. Even  though saving  money leads  to wealth, more                                                           
    than  two-thirds of  Alaskan  citizens do  not have  any savings,                                                           
    according  to GoBankingRates.com. He provided other statistics to                                                           
    illustrate  the number  of Alaskans  that would  be vulnerable to                                                           
    gambling.  He offered  his view  that commercialized  gambling is                                                           
    America's  biggest and most neglected problem. In 2018, Americans                                                           
    lost  $118  billion of  personal wealth  to government-sanctioned                                                           
    gambling.  Alaska's  citizens have  not  suffered those  types of                                                           
    financial  losses because it has not legalized gambling. He urged                                                           
    members to avoid "the scheme" before them today.                                                                            
                                                                                                                                
    5:06:11 PM                                                                                                                
    MAC  MEINERS, Owner, Rippie World, Anchorage, Alaska, stated that                                                           
    he  has worked in charitable  gaming for over  20 years. He asked                                                           
    the  committee  to think  about  how to  proceed.  He recommended                                                           
    limiting  lotteries in Alaska to scratch-off tickets and figuring                                                           
    out  how to include  charities as beneficiaries. He  said he does                                                           
    not  want to  see  charitable gaming  go away  since he  funds 26                                                           
    charities through Rippie World.                                                                                             
                                                                                                                                
    5:08:20 PM                                                                                                                
    CHAIR  REVAK,  after  first  determining no  one  else  wished to                                                           
    testify, closed public testimony on SB 188.                                                                                 
                                                                                                                                
[SB 188 was held in committee.]                                                                                                 
                                                                                                                                
5:08:51 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Revak adjourned the Senate State Affairs Standing                                                                         
Committee meeting at 5:08 p.m.                                                                                                  

Document Name Date/Time Subjects
SB 188 Sectional Analysis v. A 2.17.20.pdf SSTA 3/17/2020 3:30:00 PM
SB 188
SB 188 Transmittal Letter 2.11.2020.pdf SSTA 3/17/2020 3:30:00 PM
SB 188
Craig Johnson Personnel Board.pdf SSTA 3/17/2020 3:30:00 PM
Consideration of Governor's Appointee
Daniel LaSota GOV appointee AK Public Offices Commission.pdf SSTA 3/17/2020 3:30:00 PM
Consideration of Governor's Appointee
Hardy Van Z. Larence GOV appointee AK Public Offices Commission 3.16.20.pdf SSTA 3/17/2020 3:30:00 PM
Consideration of Governor's Appointee-Public Offices Commission
HB 83 CS workdraft 31-LS0635.S.pdf SSTA 3/17/2020 3:30:00 PM
HB 83
SB 188 Oppsoe Heesch 3.17.2020.pdf SSTA 3/17/2020 3:30:00 PM
SB 188
SB 188 Oppose ACGA 3.16.2020.pdf SSTA 3/17/2020 3:30:00 PM
SB 188
SB 188 DK Support 3.16.2020.pdf SSTA 3/17/2020 3:30:00 PM
SB 188
SB 188 DOR Presentation 3.17.2020.pdf SSTA 3/17/2020 3:30:00 PM
SB 188
SB 188 DOR White Paper 3.17.2020.pdf SSTA 3/17/2020 3:30:00 PM
SB 188
SB 88 CS verson 31-LS0284.S 3.17.2020.pdf SSTA 3/17/2020 3:30:00 PM
SB 88