02/10/1994 03:00 PM House L&C

  HB 308 - LIMIT POLITICAL USE OF GAMBLING PROCEEDS                            
                                                                               
  HB 326 - GAMING PROCEEDS/DEFINE CHARITABLE ORG'NS                            
                                                                               
  REP. GENE THERRIAULT, Prime Sponsor of HB 308, stated that                   
  basically he introduced the bill because he believes                         
  charitable gambling should be just that.  The proceeds                       
  should go to charity and not political parties.  He said HB
 would modify current statutes by adding a provision to                   
  prohibit the use of net proceeds from charitable gaming                      
  activities for candidates for public office or that                          
  candidate's organization.  He stated HB 308 would also                       
  expand the definition of a political organization to include                 
  political parties.  Current definitions limit "political                     
  organizations" to organizations or clubs organized for or                    
  formally affiliated with a political party.  This expansion                  
  will cover all political and quasi-political organizations                   
  and supplement the effect of Section 1.                                      
                                                                               
  Number 075                                                                   
                                                                               
  REP. TERRY MARTIN explained that when you mix gambling and                   
  politics and it becomes acceptable you have the worst                        
  scenario for corrupt government.                                             
                                                                               
  REP. MARTIN stated that Alaska is the only state that allows                 
  political parties or candidates to receive money from                        
  gaming.  This bill would prohibit this.                                      
                                                                               
  REP. MARTIN believed that the political parties end up                       
  competing for the same dollars with charities.                               
                                                                               
  Number 192                                                                   
                                                                               
  REP. MACKIE asked Rep. Martin to describe to him how money                   
  from gaming causes corrupt government and also how that is                   
  different from someone getting money from an oil company or                  
  from any other interest group.                                               
                                                                               
  Number 235                                                                   
                                                                               
  REP. MARTIN responded that he has looked through the files                   
  of APOC.  He brought up the file of the District 11                          
  Democrats where each month the proceeds from the Northern                    
  Light Bingo parlor goes into their fund and whoever is in                    
  charge of the District 11 Democrats is in charge of                          
  funneling the money back out to candidates.                                  
                                                                               
  REP. MARTIN gave more examples of how the money comes in and                 
  how it's funneled out.                                                       
                                                                               
  Number 300                                                                   
                                                                               
  REP. MACKIE asked again how gaming money, as opposed to oil                  
  money, causes corruption in government.  He said it's all                    
  legal.                                                                       
                                                                               
  Number 320                                                                   
                                                                               
  REP. MARTIN responded that history shows us that it causes                   
  corruption.  Also, there are no limits on what can be given.                 
                                                                               
  Number 340                                                                   
                                                                               
  REP. MACKIE asked for an example of corruption and stated                    
  that he believes this bill would just be legislating                         
  morality.                                                                    
                                                                               
  Number 350                                                                   
                                                                               
  REP. MARTIN responded with some facts about some state                       
  legislators getting into trouble in various states involving                 
  gambling.                                                                    
                                                                               
  Number 365                                                                   
                                                                               
  REP. THERRIAULT stated that he didn't believe the people of                  
  Alaska meant for charitable gaming proceeds to be funneled                   
  into politics.  He added that the key word is "charitable."                  
                                                                               
  REP. MACKIE suggested that if disclosure was the objection,                  
  then why not post a sign at the pull tab location stating                    
  who owned the permit and where the proceeds will go and                      
  allow people to make their own judgments.                                    
                                                                               
  Number 391                                                                   
                                                                               
  REP. GREEN asked how permits are acquired now.                               
                                                                               
  Number 420                                                                   
                                                                               
  REP. MARTIN responded with an explanation of the current                     
  law.                                                                         
                                                                               
  Number 450                                                                   
                                                                               
  CHAIRMAN HUDSON asked the Director of Gaming to prepare for                  
  the committee a laymen summary of how the application is                     
  made, what controls the Division has on applicants, and what                 
  percentage goes into charity versus political parties and                    
  operations.                                                                  
                                                                               
  Number 482                                                                   
                                                                               
  MANO FREY, Executive President, AFL/CIO, testified against                   
  HB 308 and HB 326.  Mr. Frey stated that the AFL/CIO does                    
  have a gaming permit, but does not make any direct political                 
  contributions.  He added that they rely on the proceeds from                 
  their gaming permits to run their operations and staff.                      
                                                                               
  MR. FREY added that he is also the business manager of Local                 
  341 and that organization does utilize its gaming proceeds                   
  to make political contributions to candidates.  But most of                  
  the proceeds go toward scholarships, little league and other                 
  community events.                                                            
                                                                               
  MR. FREY stated that HB 326 would hurt the Laborer's chance                  
  to make money in this way and he expressed resentment at the                 
  fact that his organization is being signaled out.                            
                                                                               
  Number 530                                                                   
                                                                               
  CHAIRMAN HUDSON announced he would hold HB 308 and HB 326                    
  over for more information.                                                   
                                                                               
  CHAIRMAN HUDSON adjourned the meeting at 5:22 p.m.