05/09/2024 05:15 PM Senate LABOR & COMMERCE

              SB 146-GAMING; ELECTRONIC PULL-TABS                                                                           
                                                                                                                                
6:36:12 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration of  SENATE BILL NO.  146 "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  is CS for HB 146,  work order 33-GS1054\S,                                                               
as the working document.]                                                                                                       
                                                                                                                                
6:37:46 PM                                                                                                                    
CHAIR BJORKMAN opened public testimony on SB 146.                                                                               
                                                                                                                                
6:38:05 PM                                                                                                                    
JOHN  POWERS,  Owner,  Tudor  Bingo  Center,  Anchorage,  Alaska,                                                               
testified in  opposition to  the CS  for SB 146.  He said  he and                                                               
other pull tab stakeholders had reviewed  [the CS for SB 146]. He                                                               
noted the  announcement that there  were some new  changes coming                                                               
out.  He  said  the  stakeholders simply  could  not  assess  the                                                               
positive or  negative impacts  to the charities  in such  a short                                                               
amount of  time. He said  they were  putting together a  group of                                                               
Alaskan gaming industry experts to  review all the impacts to the                                                               
charities  and  businesses  involved in  charitable  gaming.  The                                                               
charitable  gaming  group  consisted  of  leaders  from  all  the                                                               
different  gaming  types,  such  as  Multiple-beneficiary  permit                                                               
holders  (MBPs), vendors,  self-directed operators  like himself,                                                               
fraternal organizations  and distributors.  He said they  did not                                                               
include electronic pull tab  manufacturers, because the assembled                                                               
group believed the  manufacturers had a conflict  of interest and                                                               
didn't  necessarily   keep  the   charities'  interests   in  the                                                               
forefront of  changes to  the regulation.  He said  the assembled                                                               
charitable  gaming   group  had   scheduled  meetings   and  were                                                               
recruiting  from the  different  types of  gaming operations  and                                                               
different  geographic locations  around the  state of  Alaska. He                                                               
noted that Senators Gray-Jackson and  Dunbar agreed that it was a                                                               
good idea  for Alaskans involved  in charitable gaming  to tackle                                                               
this  issue and  see if  they  could come  up with  some kind  of                                                               
electronic pull tab legislation  that would benefit the charities                                                               
more than the manufacturers.                                                                                                    
                                                                                                                                
6:40:17 PM                                                                                                                    
CHAIR  BJORKMAN  asked  whether   Mr.  Powers  could  suggest  an                                                               
appropriate  number for  the  limit  to the  number  of pull  tab                                                               
devices in a store.                                                                                                             
                                                                                                                                
6:40:31 PM                                                                                                                    
Mr. Powers  said the stakeholders  had not had an  opportunity to                                                               
assess that.  He explained that  it would  depend in part  on the                                                               
size and type  of the establishment. He noted that  he operated a                                                               
1,200 square foot  pull tab store and a 20,000  square foot bingo                                                               
hall.  He  explained that  the  assembled  group of  shareholders                                                               
intended  to  consider  this  type  of  factor  and  layout  some                                                               
sidebars.                                                                                                                       
                                                                                                                                
6:41:38 PM                                                                                                                    
SENATOR MERRICK  mentioned that  she had  a conflict  of interest                                                               
because  a charity  her husband  led  received charitable  gaming                                                               
proceeds   from    the   Tudor   Bingo   Center    (Mr.   Powers'                                                               
establishment).                                                                                                                 
                                                                                                                                
6:42:10 PM                                                                                                                    
DAVID  LAMBERT, Charitable  Gaming, Fairbanks,  Alaska, testified                                                               
on  HB 146.  He  expressed support  for  the ongoing  legislative                                                               
changes  in   charitable  gaming,  however,  he   emphasized  the                                                               
complexity  of the  changes  and the  need for  a  task force  to                                                               
protect   nonprofit  interests.   He   highlighted  the   current                                                               
regulations' lack  of restrictions  on machine placement  and the                                                               
necessity  to  safeguard  nonprofits. He  raised  concerns  about                                                               
increasing  machine   profit  limits  to  $5   million,  as  many                                                               
nonprofits would not have the  opportunity to receive funds until                                                               
another charity  organization "maxes out". Lambert  advocated for                                                               
collaboration  among   the  stakeholders   over  the   summer  to                                                               
formulate  a legislative  framework  for that  would support  the                                                               
nonprofit organizations.                                                                                                        
                                                                                                                                
6:43:57 PM                                                                                                                    
CHAIR  BJORKMAN  said  he  looked forward  to  working  with  the                                                               
charitable gaming stakeholders to  deliver [good legislation] for                                                               
the nonprofits.                                                                                                                 
                                                                                                                                
6:44:20 PM                                                                                                                    
CHAIR BJORKMAN closed public testimony on SB 146.                                                                               
                                                                                                                                
6:44:23 PM                                                                                                                    
[CHAIR  BJORKMAN held  SB 146  in the  Senate Labor  and Commerce                                                               
Standing Committee.]