04/13/2016 03:15 PM House LABOR & COMMERCE

         SB 157-AMUSEMENT DEVICES & GAMBLING DEFINITION                                                                     
                                                                                                                                
3:56:46 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
SENATE  BILL NO.  157, "An  Act  defining arcade-style  amusement                                                               
devices."                                                                                                                       
                                                                                                                                
3:56:53 PM                                                                                                                    
                                                                                                                                
FORREST WOLFE, staff,  Senator Lesil McGuire, stated  that SB 157                                                               
is a housekeeping  measure that seeks to clarify  language in the                                                               
Alaska  Statutes.   The first  goal of  the bill  is to  create a                                                               
definition of amusement devices  to include arcade-style games of                                                               
skill, while  excluding games of chance.   The second goal  is to                                                               
add  that winning  tickets, tokens,  or credit  from these  games                                                               
does  not constitute  gambling.    Mr. Wolfe  said  SB 157  would                                                               
ensure  that businesses  that feature  these  types of  amusement                                                               
devices and  games have the  legal grounds to operate  in Alaska,                                                               
which  would  bring  new  well-paying  jobs  and  family-friendly                                                               
businesses to the state.                                                                                                        
                                                                                                                                
3:59:28 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON opened public testimony on SB 157.                                                                                  
                                                                                                                                
3:59:36 PM                                                                                                                    
                                                                                                                                
JAY  TOBIN,   Senior  Vice  President/General  Counsel,   Dave  &                                                               
Buster's, offered to answer questions.                                                                                          
                                                                                                                                
REPRESENTATIVE KITO asked  whether the issue addressed  by SB 157                                                               
is not in current statute.                                                                                                      
                                                                                                                                
MR.  WOLFE  clarified that  the  language  in statute  is  vague;                                                               
although this  type of establishment  is not  illegal, businesses                                                               
such  as  Dave  and  Buster's want  further  assurance  prior  to                                                               
investing in Alaska.                                                                                                            
                                                                                                                                
MR. TOBIN added that Dave and  Buster's is planning to invest $10                                                               
million in  the construction of  a new  store.  Existing  law, an                                                               
opinion  from  the  Department  of Law,  and  advice  from  local                                                               
counsel  led   to  his  organization's  decision   to  seek  full                                                               
conformance with the laws of the state.                                                                                         
                                                                                                                                
REPRESENTATIVE JOSEPHSON  directed attention to page  2, line 22,                                                               
of the bill which read:                                                                                                         
                                                                                                                                
     Sec.  3.  AS  11.66.280  is amended  by  adding  a  new                                                                    
     paragraph to read:                                                                                                         
          (12) "amusement device" includes arcade-style                                                                         
     games, pinball  machines, countertop  machines, novelty                                                                    
     arcade   games,   sports-themed   games,   shuffleboard                                                                    
     tables,   claw   machines,    pool   tables,   shooting                                                                    
     galleries, bowling,  and a similar machine,  device, or                                                                    
     apparatus  that   provides  amusement,   diversion,  or                                                                    
     entertainment;  "amusement  device"  does  not  include                                                                    
     casino-style   games,   draw  games,   slot   machines,                                                                    
     roulette wheels, craps, video  poker, or any other game                                                                    
     that is a contest of chance.                                                                                               
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked for  assurance that  the proposed                                                               
new paragraph  could not be  construed as "something  that's akin                                                               
to gambling."                                                                                                                   
                                                                                                                                
MR.  WOLFE  stated that  these  types  of amusement  devices  are                                                               
specifically excluded  from the  definition of gambling,  and the                                                               
definition does not include casino-style games of chance.                                                                       
                                                                                                                                
REPRESENTATIVE  JOSEPHSON   said  he  was  unfamiliar   with  the                                                               
definitions of the games that are excluded.                                                                                     
                                                                                                                                
MR. WOLFE described a claw machine as  a game of skill, and not a                                                               
game of chance.                                                                                                                 
                                                                                                                                
4:06:03 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON,  after ascertaining no  one else wished  to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
4:06:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES  moved  to  report  SB  157,  Version  29-                                                               
LS1264\W  out of  committee with  individual recommendations  and                                                               
the accompanying  zero fiscal notes.   There being  no objection,                                                               
SB 157 was reported out of  the House Labor and Commerce Standing                                                               
Committee.