Legislature(2019 - 2020)GRUENBERG 120

02/18/2020 03:00 PM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 144 ESTABLISH JUNE 7 AS WALTER HARPER DAY TELECONFERENCED
Heard & Held
+= HB 74 REPEAL OCEAN POLLUTION MONITORS/FEE TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ HB 239 ESTABLISH STATE LOTTERY BOARD/LOTTERIES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled 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.                                                                  

Document Name Date/Time Subjects
SB 144 ver. M 2.17.20.PDF HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 Sponsor Statement 1.23.2020.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 Supporting Document - Photo of Juneau Headstone.jpg HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 Supporting Document - U.S. Senate on Energy and Natural Resources press release.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 Supporting Document - Alpinist.com article, Walter Harper the First to Reach the Top of Denali.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 Supporting Document - Anchorage Daily News article, 12-16-17.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 Supporting Document - National Park Service article, A Brief Account of the 1913 Climb of Denali.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 Supporting Document - National Park Service article, The Ultimate Triumph and Tragedy Remembering Walter Harper 100 Years Later.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 Supporting Document - National Park Service article, Walter Harper Talkeetna Ranger Station Dedication.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 letter of support - Johanna Harper 2.4.2020.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 letter of support - Mary Ehrlander 2.4.2020.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 letter of support - Princess Cruises 2.4.20.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
SB 144 Fiscal Note DOA-FAC 2.17.20.pdf HSTA 2/18/2020 3:00:00 PM
SB 144
HB 239 ver. M 2.17.20.PDF HSTA 2/18/2020 3:00:00 PM
HB 239
HB 239 Sponsor Statement 2.6.2020.pdf HSTA 2/18/2020 3:00:00 PM
HB 239
HB 239 Sectional Analysis 2.6.2020.pdf HSTA 2/18/2020 3:00:00 PM
HB 239
HB 239 Legislative Research Report Powerball Legislation 2016 2.6.2020.pdf HSTA 2/18/2020 3:00:00 PM
HB 239
HB 239 Where does lottery money go in different states 2.6.2020.pdf HSTA 2/18/2020 3:00:00 PM
HB 239
HB 239 Fiscal Note DOC-IDO 2.17.20.pdf HSTA 2/18/2020 3:00:00 PM
HB 239
HB 239 Fiscal Note LAW-CRIM 2.17.20.pdf HSTA 2/18/2020 3:00:00 PM
HB 239
HB 239 Fiscal Note DOR-TAX 2.17.20.pdf HSTA 2/18/2020 3:00:00 PM
HB 239
HB 239 Fiscal Note DOA-PDA 2.17.20.pdf HSTA 2/18/2020 3:00:00 PM
HB 239
HB 74 Supporting Document John Clifton Testimony 2.18.20.pdf HSTA 2/18/2020 3:00:00 PM
HB 74
SB 144 Letter of Support - Testimony 2.20.20.pdf HSTA 2/18/2020 3:00:00 PM
SB 144