HB 168 An Act relating to multiple-beneficiary charitable gaming permits and door prizes for charitable gaming; and providing for an effective date. HB 168 was placed in Subcommittee with Chair Representative Parnell and with members Representative Hanley and Representative Brown. The bill was held for further discussion. HOUSE BILL 168 "An Act relating to multiple-beneficiary charitable gaming permits and door prizes for charitable gaming; and providing for an effective date." JOHN LOPEZ, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, ALASKA, spoke in opposition to the legislation given the impact of the legislation. He stated that real estate would be vacated and noted the lost taxes which the State would experience. ROSE PALMQUIST, (TESTIFIED VIA TELECONFERENCE), MATSU, ALASKA, spoke in support of the legislation and felt that the State would be able to better audit gaming. GREG WAKEFIELD, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE, ALASKA, spoke in opposition to the legislation. He felt that there would serious ramifications for charities and gaming organizations with the passage of the legislation. He asked for further consideration of the bill. IDA MCMAHON, (TESTIFIED VIA TELECONFERENCE), MATSU, ALASKA, spoke in opposition to the legislation. GINA KAISER, (TESTIFIED VIA TELECONFERENCE), ASSOCIATION FOR RETARDED CITIZENS - ANCHORAGE (ARCA), ALASKA, asked for more time to consider the legislation and work draft. PAUL FUHS, COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT (DCED), provided the Committee with handouts. [Attachments #1 and #2]. He asked that the Committee to 2 consider amendments made to the House Judiciary Committee version pointing out that original law was intended to benefit charities. At this time, there is an increasing diversion of funds from charities to political purposes and lobbyists. DCED would like to see more of the funds from charitable gaming going to charities. The Senate committee substitute would place 10% into a bingo fund and 30% for pull tab contributions which would establish the 40% regulatory figures, doubling the amount of money going to charities. Commissioner Fuhs requested the Committee to adopt the Senate committee substitute. REPRESENTATIVE RAMONA BARNES interjected that the Governor did not support the Senate committee substitute. Representative Brown asked the Administration's philosophy regarding charitable gaming political contributions. She thought that political candidates depending on direct corporate contributions from other organized interest groups would provide more opportunity for illegal pressure. Commissioner Fuhs stated that the Department believes it is wrong to combine gambling and government and pointed out that the money for charitable gaming is being diverted from charitable purposes and used for political interests creating a conflict of interest. He noted that of the net proceeds, ten percent of funds are currently going to campaign contributions. SENATOR DAVE DONLEY spoke to the Senate Judiciary committee substitute. He advised that the full Senate Judiciary Committee was not given the version referenced by Commissioner Fuhs. That version contains new expansion proposals from the original bill. He recommended that the House Finance Committee be cautious in adopting the proposed legislation. (Tape Change, HFC 93-91, Side 2). PENNY GRIFFIN, (TESTIFIED VIA TELECONFERENCE), MATSU, ALASKA, asked for more time for consideration of the bill. Co-Chair Larson placed HB 168 in Subcommittee with Chair Representative Parnell and members Representative Hanley and Representative Brown. The bill was HELD in Committee for further discussion.