Legislature(2003 - 2004)
03/04/2004 01:43 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 509
An Act relating to establishing the Alaska Gaming
Commission.
Co-Chair Harris MOVED to ADOPT Work Draft 23-LS1768, Version
U. There being NO OBJECTION, it was so ordered.
Representative Croft asked for explanation of the changes.
SUE STANCLIFF, STAFF TO REPRESENTATIVE KOTT explained that
the new changes in Version U have resulted from working with
the gaming industry. On page 2, "Creation of commission,"
the commission would still consist of five voting members,
but would now include two non-voting members from the
industry. Addressing a question that arose during a previous
hearing, she stated that one voting member must have five
years' experience in law enforcement. One of the industry
members must hold a permit or license under AS 05.15, and
the other ex-officio nonvoting member must hold a license or
permit under AS 04.11. The voting members elect the chair.
Ms. Stancliff noted that in Subsection (b), page 2, the
voting members serve staggered terms of three years and it
is already defined in AS 39.05.55. The nonvoting members
serve a non-staggered three-year term. The change on page 3,
(f) sets out that an ex officio member may not serve if the
person has been convicted of a crime
In response to a question by Representative Croft, Ms.
Stancliff advised that ex officio members can hold permits
for charitable gaming, must submit to a criminal background
check, and cannot serve on the commission if they have a
criminal record. She stated that there would be five voting
members and two non-voting members.
Ms. Stancliff referred to page 4, explaining that the
provision that the commission may participate with other
states in multi-gaming activities was moved from "Duties and
powers of the commission" in Version S to "Gaming
activities" in Version U.
Ms. Stancliff pointed out a change on page 5, "Duties of
director." The director now would be exempt but not the
director's employees. This change resulted from a concern
that the seven current non-exempt employees in the
Department of Revenue would gain exempt status by moving to
the commission.
Ms. Stancliff referred to page 5, line 8, "Duties of
director," and explained that the contractual questions with
agents have been removed in the current version because no
gaming is allowed under AS 05.18. On page 6, "Gaming
activities," language has been removed that stated, "the
commission may not authorize a charitable gaming activity
unless that activity is authorized under AS 05.15." The
language was unnecessary because this section speaks only to
AS 05.18.
Ms. Stancliff pointed out a change on page 6, "Prohibited
acts," which removed price fixing from the previous version
because it would be inappropriate for the state to set
prices on raffle tickets. She added that it was confusing
language that doesn't apply to AS 05.15.
PETE ECKLUND, STAFF TO REPRESENTATIVE BILL WILLIAMS,
clarified that AS 05.15 is the charitable gaming statute.
Most of this bill would create a new section of law, AS
O5.18, for future new gaming. He noted existing confusion
over how AS 05.15 and AS 05.18 interplay, and he pointed out
that these are totally separate sections of law.
Ms. Stancliff noted that page 6, "Prohibited acts," (b) does
not reflect a change but speaks only to AS 05.18 under which
no gaming is allowed. The Governor and his staff can still
buy a raffle ticket under AS 05.15.
Ms. Stancliff explained one requested change that was not
made to Version U. The Department of Law asked for added
language on page 8,(C), stating "expressly authorized under
AS 05.15 or 05.18." The legal drafter thought it would apply
to specific activities like Blackjack and that it was
unnecessary.
Representative Hawker MOVED to ADOPT Amendment 1. Co-Chair
Williams OBJECTED for purposes of discussion.
Amendment 1 reads:
Page 3, following line 25:
Insert a new subsection to read:
"(c) The voting members of the commission may
exclude the ex officio members from executive sessions
otherwise permitted by law."
Ms. Stancliff explained that Am#1 would give only the voting
non-industry members the authority to go into executive
session.
Co-Chair Williams WITHDREW his OBJECTION.
Representative Hawker MOVED to ADOPT Amendment 2. Co-Chair
Williams OBJECTED for purposes of discussion.
Amendment 2 reads:
Page 6, line 5, following "if":
Insert "that participation and those activities are"
Ms. Stancliff explained that Am#2 was recommended by the
gaming industry and the sponsor does not object to the
change.
Representative Stoltze asked for examples of these types of
activities. Ms. Stancliff replied that Am#2 falls under AS
05.18, which currently has no gaming activities, so the
expansion of new gaming could not take place without the
authority of the legislature.
Co-Chair Williams WITHDREW his OBJECTION.
LARRY MEYERS, DEPUTY DIRECTOR, DIVISION OF FINANCE,
DEPARTMENT OF REVENUE, VIA TELECONFERENCE, ANCHORAGE,
provided background on staffing of the charitable gaming
unit. He explained that it is a regulatory unit that
oversees 1200 permittees who, in FY 03, paid about $2.6
million in taxes and fees to the state. While gambling is
illegal and falls outside the gaming unit's regulatory
authority, charitable gaming is the exception.
STEVEN BORCHERDING SR., GENERAL MANAGER, GOLD CASH BINGO,
VIA TELECONFERENCE, ANCHORAGE, expressed that he's been in
the industry for fourteen years, and that this bill is
nothing more than a springboard for full scale gambling in
the future. He stated that charitable gaming is currently
working very well, with enforcement and regulatory statutes
in place. The majority of the gaming industry is truly
charitable and non-profit.
BOB LOESCHER, ALASKA NATIVE BROTHERHOOD (ANB), JUNEAU,
explained that he has worked with a number of charitable
permittees, including the ANB and the Tlingit-Haida
Community Council. The ANB has worked with the legislature
for two years on charitable gaming legislation. He expressed
the ANB's support of HB 509; in particular, the
restructuring that would move the Department of Revenue
commission to a new commission, and separation of charitable
gaming and any new gaming in the future. He stated that he
has received assurances that any changes to statute and
regulation would come before the legislature. He expressed
support that the industry is included in an advisory role as
part of the commission. He expressed that the issue of
taxes and fees is an important condition of his support for
HB 509 because the ANB believes the legislature should
establish taxes and fees.
Representative Foster MOVED to report CSHB 509, Version U
out of committee with the accompanying fiscal note and
individual recommendations.
Representative Stoltze OBJECTED.
A roll call vote was taken on the motion to move the bill
from committee.
IN FAVOR: Moses, Chenault, Croft, Fate, Foster, Hawker,
Joule, Harris, Williams
OPPOSED: Stoltze
Vice-Chair Meyer was not present for the vote.
The MOTION PASSED (9-1).
Representative Foster commented that he does not object to
the concept of the bill, but he expressed concerns over
creating another commission that would come to the
legislature with additional funding requests.
CSHB 509(FIN) was REPORTED out of Committee with individual
recommendations and one fiscal note.
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