03/06/1995 02:07 PM House JUD

 HJUD - 03/06/905                                                              
 CSHB 44 - GAMING PROCEEDS/DEFINE CHARITABLE ORGN'S                          
                                                                               
 Number 620                                                                    
                                                                               
 REPRESENTATIVE BUNDE made a motion to adopt Version G of the bill.            
                                                                               
 There was objection for discussion.                                           
                                                                               
 ANNE CARPENETI described the changes from the original bill to the            
 committee substitute.  They are all on page 4, except for one on              
 page 5.  Page 4, line 18, Version F, was changed to insert                    
 subsection (C) in place of AS 05.15.159.  There was a problem with            
 the bill drafter putting together a couple of versions, and the               
 references were made to the wrong draft.  The Judiciary Committee's           
 version refers to subsection (C), rather than to AS 05.15.159.  The           
 next change is on page 4, line 28.  "Organization" was added to the           
 title of the section so that it read, "Political organization                 
 raffles."  This made it clear that we are talking about raffles by            
 political organizations, rather than raffles by other charitable              
 organizations holding raffles for political purposes.                         
                                                                               
 MS. CARPENETI continued that in the State Affairs Committee                   
 version, on line 28, it had a subsection (a), but there was no                
 subsequent subsection, so they took that out.  They did not need an           
 (a) if there is no (b), et cetera.  And then the "notwithstanding             
 AS 05.15.150" was removed, as not being necessary, because we are             
 really dealing with two different things here.  It made it unclear            
 as to what was being talked about with the "notwithstanding AS                
 05.15.150."                                                                   
                                                                               
 MS. CARPENETI described the last change, on page 5, line 5.  No               
 subsection reference is needed if there are no subsections.                   
                                                                               
 Hearing no objection, CSHB 44 was adopted as the version before the           
 committee.                                                                    
                                                                               
 Number 680                                                                    
                                                                               
 TOM ANDERSON, Legislative Aide to Representative Terry Martin,                
 explained that what HB 44 is trying to do is eliminate politics               
 from gaming.  This bill says that no political groups or districts            
 can hold a gaming permit, with the one exclusion of raffles.  It              
 also disallows any money earned from charitable gaming to be                  
 distributed to any political organization or candidate.  Monies               
 raised shall also be disclosed.  The account from which donations             
 were made to a political party must be disclosed.                             
                                                                               
 Number 740                                                                    
                                                                               
 JEFF PRATHER, Chief, Charitable Gaming Division, Department of                
 Revenue, stated the Department is neutral in respect to this bill.            
 He explained what a Multiple Beneficiary Permit (MBP) was.  It                
 allows up to six permittees to join together to operate as a                  
 partnership.  The idea was to cut overhead costs.  This bill would            
 prohibit political organizations from joining one of these                    
 organizations.  There is currently nothing preventing political               
 organizations from joining an MBP for the purpose of holding a                
 raffle only.  Apparently this legislation would prevent that.                 
                                                                               
 CHAIRMAN PORTER thought banning them from MBPs would close up a               
 potential loophole, in which it could be argued that a political              
 organization could join an MBP.                                               
                                                                               
 TAPE 95-25, SIDE B                                                            
 Number 000                                                                    
                                                                               
 MR. ANDERSON said our best bet is to eliminate the 11 political               
 groups that hold charitable gaming permits, and hopefully, in the             
 future, eliminate all entities that hold these permits, who really            
 shouldn't, under the guise of charitable gaming, including unions.            
                                                                               
 CHAIRMAN PORTER said the idea is that charitable gaming is supposed           
 to be for charity.                                                            
                                                                               
 Number 100                                                                    
                                                                               
 There was a discussion on the location of the definition of                   
 "political organization."  It was determined to be found in Title             
 5 of the Alaska Statutes.                                                     
                                                                               
 REPRESENTATIVE VEZEY wondered if they needed to put a definition in           
 the bill.                                                                     
                                                                               
 CHAIRMAN PORTER said the idea of the bill is to preclude money from           
 going to organizations and individuals they described.  That is               
 pretty well defined, "No money may go, directly or indirectly as a            
 contribution of any portion of the net proceeds or charitable                 
 gaming activity other than raffles, to a candidate for public                 
 office of the state or political subdivision of the state to the              
 candidate's campaign organization, to a political party as defined,           
 or to an organization or club organized under a group formally                
 affiliated with a political party."  There is not much left.                  
                                                                               
 Number 190                                                                    
                                                                               
 REPRESENTATIVE DAVIS made the motion to move an amendment of                  
 Representative Finkelstein's, who had to leave early.                         
                                                                               
 CHAIRMAN PORTER objected for discussion.                                      
                                                                               
 REPRESENTATIVE DAVIS explained what the proposal would do is, on              
 page 1, lines 5 - 8, to delete:  "provide that a political group is           
 not a qualified organization, for the purpose of charitable gaming,           
 other than raffles, related to what is qualified organization for             
 the purpose of charitable gaming permitting."  Also, on page 3,               
 lines 9 - 19, he would like all of that material to be deleted.               
 The next proposed change is on page 4, lines 18 - 19.  He wants to            
 delete "a political use as provided in AS 05.15.155," and insert,             
 "political uses other than political campaigns."  On page 4, line             
 27, which is section (6), and ending at line 17 of Section (7), to            
 be deleted.  The general idea is to say political groups can also             
 raise money, but the money has to be used for purposes other than             
 political campaigns.                                                          
                                                                               
 MS. CARPENETI stated that the portion Representative Finkelstein              
 wants to change, on page 4, line 18 - 19, has already been done in            
 the State Affairs committee substitute.                                       
                                                                               
 REPRESENTATIVE BUNDE believed there were already provisions for               
 charitable, educational activities provided under raffles, and the            
 political uses other than political campaigns would probably fall             
 under "educational."  That would be an easy line to draw between              
 what is educational, and what is actually promoting a political               
 campaign.  Part of what Representative Finkelstein is trying to               
 amend is already covered.                                                     
                                                                               
 After no further discussion, a roll call vote was taken.                      
 Representatives Toohey, Bunde, Vezey, Green and Porter voted no.              
 Representative Davis voted yes.  The amendment failed with a 1 to             
 5 vote.                                                                       
                                                                               
 Number 290                                                                    
                                                                               
 REPRESENTATIVE VEZEY made a motion to move the bill CSHB44(JUD) out           
 of committee with individual recommendations and fiscal notes.                
 Hearing no objection, it was so ordered.