Legislature(2023 - 2024)BARNES 124
03/13/2024 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB285 | |
| HB175 | |
| HB200 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 378 | TELECONFERENCED | |
| += | HB 200 | TELECONFERENCED | |
| += | HB 285 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| *+ | HB 271 | TELECONFERENCED | |
| += | HB 175 | TELECONFERENCED | |
HB 200-GAMING; ELECTRONIC PULL-TABS
4:51:09 PM
CHAIR SUMNER announced that the final order of business would be
HOUSE BILL NO. 200, "An Act relating to pull-tabs; relating to
persons prohibited from involvement in gaming; and relating to
the duties of the Department of Revenue." [Before the
committee, adopted as the working document on 2/12/24, was the
proposed committee substitute (CS) for HB 200, Version 33-
GH1054\S, Wallace, 2/8/24 ("Version S").]
The committee took an at-ease at 4:51 p.m.
4:51:16 PM
REPRESENTATIVE RUFFRIDGE moved to adopt Amendment 1 to Version
S, labeled 33-GH1054\S.2, Wallace, 3/8/24, which read:
Page 2, following line 3:
Insert a new bill section to read:
"* Sec. 3. AS 05.15.115(b) is amended to read:
(b) The contract between an authorizing
permittee and an operator must include the amount and
form of compensation to be paid to the operator, the
term of the contract, the activities to be conducted
by the operator on behalf of the permittee, the
location where the activities are to be conducted, the
name and address of the member in charge, and other
provisions the department may require. A contract
between an authorizing permittee and an operator may
allow the operator to pool permittees and divide the
gaming income and payouts among permittees on a
percentage basis. A contract for paper pull-tabs must
require the operator to pay an authorizing permittee a
minimum of 30 percent of the ideal net. A contract for
electronic pull-tabs must require the operator to pay
an authorizing permittee a minimum of 30 percent of
the gross receipts minus prize payouts monthly."
Renumber the following bill sections accordingly.
REPRESENTATIVE WRIGHT objected.
REPRESENTATIVE RUFFRIDGE explained that Amendment 1 is intended
to set a minimum of 30 percent of adjusted gross income (AGI).
He said it would be helpful to put side boards on some of the
payments that are associated with these processes.
4:52:03 PM
REPRESENTATIVE RUFFRIDGE moved Conceptual Amendment 1 to
Amendment 1, which would delete "ideal net" and insert "adjusted
gross income" on page 1, line 12, and delete "gross receipts
minus prize payouts monthly" and insert "adjusted gross income"
on lines 14 and 15.
REPRESENTATIVE PRAX objected. He shared his understanding that
"ideal net" means something specific to the industry. He said
he did not understand AGI as it applies to pool tabs.
REPRESENTATIVE RUFFRIDGE explained that ideal net is only
functional once the entire batch of game has been sold.
Alternatively, electronic pool tabs are purchased by the play
and in many cases, operators could be taking a "massive hit"
with the term "ideal net."
REPRESENTATIVE PRAX shared his understanding that the risk of
not selling the whole batch of pool tabs was borne by the
operator rather than the permittee.
4:55:22 PM
A roll call vote was taken. Representatives Saddler, Wright,
Carrick, Fields, Ruffridge, and Sumner voted in favor of
Conceptual Amendment 1 to Amendment 1. Representative Prax
voted against it. Therefore, Conceptual Amendment 1 to
Amendment 1 passed by a vote of 6-1.
4:56:01 PM
A roll call vote was taken. Representatives Ruffridge, Saddler,
Wright, Carrick, Fields, and Sumner voted in favor of Amendment
1, as conceptually amended. Representative Prax voted against
it. Therefore, Amendment 1, as amended, passed by a vote of 6-
1.
4:56:35 PM
REPRESENTATIVE RUFFRIDGE move to adopt Amendment 2 to Version S,
labeled 33-GH1054\S.3, Wallace, 3/8/24, which read:
Page 5, following line 23:
Insert a new subsection to read:
"(i) A pull-tab manufacturer or an agent of a
manufacturer may not provide to a vendor, operator,
permittee, distributor, municipality, or qualified
organization compensation or a gift, gratuity,
premium, or other thing of value in an amount greater
than $25 annually, including the value of a gift,
gratuity, premium or other thing of value provided to
an individual employee or agent of the vendor,
operator, permittee, distributor, municipality, or
qualified organization."
Reletter the following subsections accordingly.
Page 6, following line 23:
Insert a new subsection to read:
"(g) A distributor may not provide to an
employee or agent of a licensed vendor, operator,
permittee, municipality, or qualified organization
compensation or a gift, gratuity, premium, or other
thing of value in an amount greater than $25 annually,
including the value of a gift, gratuity, premium, or
other thing of value provided to an individual
employee or agent of the vendor, operator, permittee,
municipality, or qualified organization."
Reletter the following subsection accordingly.
REPRESENTATIVE WRIGHT objected.
REPRESENTATIVE RUFFRIDGE explained that Amendment 2 follows up
on concerns regarding manufacturers that may use a kickback or
rebate in order to incentivize vendors, operators, or permittees
to utilize their program. He opined that leveling the playing
field by making kickbacks of more than $25 annually illegal
would be a good sideboard on electronic pool tabs.
4:58:08 PM
REPRESENTATIVE SADDLER expressed concern about the use of the
term "kickback" and its potentially negative connotation.
Nonetheless, he opined that Amendment 2 would provide reasonable
reassurance to the public that there's no extra rebate.
4:59:02 PM
REPRESENTATIVE WRIGHT removed his objection. There being no
further objection, Amendment 2 was adopted.
4:59:12 PM
CHAIR SUMNER announced that Version S, as amended, would be held
over.