2020-02-12                     House Journal                      Page 1604
HB 246                                                                                                                        
HOUSE BILL NO. 246 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "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."                                                                      
                                                                                                                                
was read the first time and referred to the State Affairs and Finance                                                           
Committees.                                                                                                                     
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                

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1.  Zero, Dept. of Public Safety                                                                                                
2.  Fiscal, Dept. of Education & Early Development                                                                              
3.  Indeterminate, Dept. of Revenue                                                                                             
                                                                                                                                
The Governor's transmittal letter dated February 11 follows:                                                                    
                                                                                                                                
"Dear Speaker Edgmon:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill creating the Alaska Lottery                                                              
Corporation as a new public corporation of the state.                                                                           
                                                                                                                                
The bill creates the Alaska Lottery Corporation to establish and                                                                
operate lottery games in the state and to participate in multi-state                                                            
lotteries operated in conjunction with other lottery authorities.  Forty-                                                       
five states, plus the District of Columbia, currently have some form of                                                         
state lottery. State lotteries have evolved significantly since the earliest                                                    
states began to create state-owned organizations to operate and                                                                 
regulate the sale of traditional lottery and raffle tickets. More recently,                                                     
state-owned organizations have begun to regulate electronic and video                                                           
lottery terminals. Currently, Alaska allows charitable and certain                                                              
gaming activities and collects taxes on cruise ship gaming, activities                                                          
regulated by the Department of Revenue. The establishment of the                                                                
Alaska Lottery Corporation will not change or further regulate these                                                            
gaming activities.                                                                                                              
                                                                                                                                
Aside from creating a pathway that could lead to new business                                                                   
opportunities, the purpose of the bill is to generate new revenues for                                                          
the State. The bill proposes to allow the net profits generated from                                                            
lottery activities in the state to be made available for appropriation for                                                      
Kindergarten through Grade 12 education and to support public health                                                            
and welfare programs, including those for domestic violence                                                                     
prevention, drug abuse prevention, foster care, and homelessness.                                                               
                                                                                                                                
In an era of declining state revenues, it is imperative for Alaska to                                                           
consider new ways of funding government services that satisfy the                                                               
public health and welfare needs of our citizens.  Establishing the                                                              
Alaska Lottery Corporation as a means to generate new revenues for                                                              

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the State will be one step in this direction. I urge your prompt and                                                            
favorable action on this measure.                                                                                               
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"