Legislature(2019 - 2020)GRUENBERG 120
02/18/2020 03:00 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB144 | |
| HB74 | |
| HB239 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 144 | TELECONFERENCED | |
| += | HB 74 | TELECONFERENCED | |
| *+ | HB 239 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 239-ESTABLISH STATE LOTTERY BOARD/LOTTERIES
4:47:33 PM
CO-CHAIR KREISS-TOMKINS announced that the final order of
business would be HOUSE BILL NO. 239, "An Act establishing a
state lottery; providing for participation in multi-state
lotteries; establishing the Alaska State Lottery Board in the
Department of Revenue; relating to confidentiality of
information regarding lottery winners; requiring background
investigations by the Department of Public Safety; and providing
for an effective date."
4:47:54 PM
REPRESENTATIVE THOMPSON, as prime sponsor of HB 239, relayed
that the proposed legislation would create an Alaska State
Lottery Board in the Department of Revenue (DOR), would
authorize the board to conduct in-state lottery draw games, and
would allow participation in multi-state lotteries. He stated
that he and his staff explored the possibility of a lottery as a
revenue stream for the state. He said that DOR estimates that
an in-state and multi-state lottery would net the state $5-10
million per year. He further stated that HB 239 would only
allow the purchase of draw tickets so as not to affect the
nonprofit gaming industry's ability to raise money through
charitable gaming pull-tabs and bingo; therefore, the proposed
legislation does not include scratch-off instant winner tickets
or video games. He mentioned problems with gambling addiction
being related to instant gratification gaming. He suggested
that a draw game type lottery, with a once-a-week draw, would
not encourage addictive gambling behavior as would an instant
winner lottery. He mentioned research by staff into other
states with lotteries and the identification of expert witnesses
to testify at the next hearing.
REPRESENTATIVE HOPKINS referred to the smaller states with
lotteries, like Wyoming and North Dakota, and posed the
question: How much money is raised for the states and given out
in the lotteries, and how many people apply for them?
4:50:59 PM
SETH WHITTEN, Staff, Representative Steve Thompson, Alaska State
Legislature, replied that the Chief Executive Officer (CEO) of
the Wyoming Lottery Corporation will testify at the next hearing
on HB 239 to answer questions.
REPRESENTATIVE STORY asked Mr. Whitten whether he has seen
studies on state lottery impacts on low income populations.
MR. WHITTEN asked whether Representative Story was referring to
the impact of problem gambling.
REPRESENTATIVE STORY said, "Sure, that could be one, but just in
general." She mentioned that the comment regarding once-a-week
draw games versus instant [win] games suggests staff may have
obtained information on the impacts of state lotteries.
MR. WHITTEN relayed that through research, staff found that
there are three factors that contribute to problem gambling and
gambling addiction: event frequency - how often and how rapidly
a person can play; frequency of winning prizes; and how quickly
a person gets the reward for a prize. He said that these three
factors consistently appear in the psychological research that
he has reviewed. He will provide the committee with the
research.
MR. WHITTEN stated, "In terms of lottery spending ... the lowest
20 percent of the population does spend 61 percent of the entire
gross spending on lottery." He said that the percentages are
skewed by the large number of instant win games; the percentages
are not as extreme when considering only draw games. He offered
to provide more information to the committee on the breakdown of
percentages.
4:54:07 PM
CO-CHAIR FIELDS asked for data on the impacts distributed across
income ranges.
MR. WHITTEN agreed to provide that information.
CO-CHAIR KREISS-TOMKINS asked that HB 239 and the governor's
proposed legislation [SB 188 and HB 246] be compared and
contrasted.
REPRESENTATIVE THOMPSON replied that the differences between the
bills will be discussed at the next hearing on HB 239.
REPRESENTATIVE STORY asked where the revenue generated by the
lottery - an estimated $5-10 million - would go, whether the
general fund (GF) or a designated fund.
REPRESENTATIVE THOMPSON answered that some consideration was
given to this question while drafting the bill. It was
suggested that a percentage could go to education; however, with
the fear that putting $5 million into education might lead to a
$5 million reduction in the education budget, it was decided
that the legislature should decide how to use the money.
CO-CHAIR KREISS-TOMKINS stated that HB 239 would be held over.