Legislature(1999 - 2000)

02/17/2000 01:10 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 182 - CHARITABLE GAMING & GAMING ON FERRIES                                                                                
CHAIRMAN HALCRO  announced the  first order  of business  as House                                                              
Bill 182, "An  Act relating to charitable gaming  and to gaming on                                                              
state ferries; and providing for  an effective date."  There was a                                                              
proposed  committee  substitute  [version  1-LS0805\D,  Luckhaupt,                                                              
CHAIRMAN HALCRO  explained that the proposed  committee substitute                                                              
strips everything out that deals  with the ferries.  The title was                                                              
also amended  to reflect the change.   He stated the  following as                                                              
the reason for the change:                                                                                                      
     I don't believe  the state should be in the  business of                                                                   
     promoting or  providing video gaming.   I think,  if the                                                                   
     private sector  wants to do that, that's fine.   I think                                                                   
     the state  exposes itself  to some tremendous  liability                                                                   
     having  these machines,  and I think  it's--in this  day                                                                   
     and age--I  think it's something  that the state  should                                                                   
     not be involved with.                                                                                                      
CHAIRMAN  HALCRO  further  stated  that  if the  bill  passes  and                                                              
becomes law,  the state  would be in  the position of  regulating,                                                              
which is totally different from participating and regulating.                                                                   
Number 0198                                                                                                                     
REPRESENTATIVE JOHN  COWDERY asked:  What assurance  is there that                                                              
the money would go where the bill says?                                                                                         
CHAIRMAN HALCRO answered  that the bill indicates  the "cut" would                                                              
go into the general fund.  The question  of assurance really is an                                                              
issue for the House Finance Committee.                                                                                          
Number 0319                                                                                                                     
REPRESENTATIVE  ALLEN KEMPLEN  asked Chairman  Halcro whether  the                                                              
memorandum   from   Dan  Branch   [Assistant   Attorney   General,                                                              
Commercial  Section,  Civil  Division, Department  of  Law]  dated                                                              
2/15/00 would  still apply, since  the language pertaining  to the                                                              
ferries has been  stripped.  He was referring to  the finding that                                                              
HB 182  would "open  the door"  to expanded  Indian gaming  in the                                                              
CHAIRMAN HALCRO replied  that his comments would still  apply.  As                                                              
soon as video  gaming is legalized, however, it  would open gaming                                                              
activity on Indian lands for the  same type of gaming; it wouldn't                                                              
"open the door" to card tables and roulette wheels.                                                                             
Number 0447                                                                                                                     
REPRESENTATIVE KEMPLEN asked Chairman  Halcro whether the proposed                                                              
committee substitute  still includes  the repealers  for political                                                              
parties and labor unions.                                                                                                       
CHAIRMAN HALCRO called on the sponsor's staff.                                                                                  
Number 0562                                                                                                                     
PATRICK HARMAN,  Staff to Representative  Pete Kott,  Alaska State                                                              
Legislature,   came   before   the    committee   on   behalf   of                                                              
Representative  Kott,  sponsor.   He  answered that  the  repealer                                                              
removes political  parties and labor  unions from  their nonprofit                                                              
status for the  purposes of gaming.  It's the  sponsor's intent to                                                              
delete  that  section  [Section  33]  in  the  next  committee  of                                                              
CHAIRMAN  HALCRO asked  Representative  Kemplen  whether he  would                                                              
feel  more  comfortable  offering  an  amendment  to  delete  that                                                              
section in this committee.                                                                                                      
REPRESENTATIVE KEMPLEN  replied yes.   He proposed to  delete line                                                              
23, on page 21 of Version D.                                                                                                    
REPRESENTATIVE  COWDERY  made  a  motion  to  adopt  the  proposed                                                              
committee  substitute   (CS)  for  HB  182,   version  1-LS0805\D,                                                              
Luckhaupt, 2/11/00,  as a work draft.   There being  no objection,                                                              
Version D was before the committee.                                                                                             
Number 0617                                                                                                                     
REPRESENTATIVE KEMPLEN  stated the  proposed CS really  just deals                                                              
with video  gaming,  which is a  very narrow  purpose.   Including                                                              
language that repeals who qualifies  seems to be outside the scope                                                              
of the intent.                                                                                                                  
CHAIRMAN  HALCRO asked  Mr. Harman  whether  AS 05.15.690(25)  and                                                              
05.15.690(34)  deal specifically with  labor unions  and political                                                              
MR. HARMAN replied yes, that's his understanding.                                                                               
REPRESENTATIVE  MASEK stated that  it would be  nice to  hear from                                                              
the  bill drafter  in  relation to  the  effects  of the  proposed                                                              
CHAIRMAN HALCRO  noted that according  to the [staff of  the] bill                                                              
sponsor, the  proposed amendment would  simply leave in  place the                                                              
ability  for  both  labor  unions  and  political  parties  to  be                                                              
"permitees" of video gaming.  Right  now, they are able to collect                                                              
receipts from pull-tabs.   The proposed CS simply  allows the same                                                              
for video gaming.                                                                                                               
REPRESENTATIVE KEMPLEN pointed out  that there is a linkage to his                                                              
proposed amendment on page 19, lines 2-3, of Version D.                                                                         
REPRESENTATIVE  KEMPLEN made a  motion to delete  line 23  on page                                                              
21, and to delete lines 1-8 on page 19 [Amendment 1].                                                                           
REPRESENTATIVE  COWDERY objected.   He said this  is not  an issue                                                              
for  the  House   Transportation  Standing  Committee;   the  next                                                              
committee of referral [Judiciary] can deal with it.                                                                             
CHAIRMAN  HALCRO  said  he  would  agree,  except  this  might  be                                                              
Representative   Kemplen's   only   opportunity  to   propose   an                                                              
amendment,  since  he  doesn't  sit  on  the  next  committees  of                                                              
MR.  HARMAN  announced  that  the   sponsor  does  not  object  to                                                              
Representative Kemplen's proposed amendment.                                                                                    
A  roll call  vote  was taken.   Representatives  Masek,  Kemplen,                                                              
Kookesh and Halcro voted in favor  of Amendment 1.  Representative                                                              
Kohring and Cowdery voted against  it.  Therefore, Amendment 1 was                                                              
adopted by a vote of 4-2.                                                                                                       
Number 1028                                                                                                                     
REPRESENTATIVE COWDERY made a motion  to move CSHB 182, version 1-                                                              
LS0805\D, Luckhaupt, 2/11/00, as amended, from the committee.                                                                   
REPRESENTATIVE MASEK objected.                                                                                                  
REPRESENTATIVE KEMPLEN asked whether  the proposed CS would exempt                                                              
video  lottery machines  from the  1  percent fee  referred to  in                                                              
Section 1.   He expressed  concern about  any potential  impact on                                                              
CHAIRMAN HALCRO  answered that  Representative Kemplen's  question                                                              
is an issue for the House Finance Committee.                                                                                    
A roll  call vote was taken.   Representatives Cowdery  and Halcro                                                              
voted to  move CSHB 182,  version 1-LS0805\D, Luckhaupt,  2/11/00,                                                              
as  amended,  from committee.    Representatives  Kohring,  Masek,                                                              
Kemplen and  Kookesh voted against  it.  Therefore,  CSHB 182(TRA)                                                              
failed to  move from the  House Transportation Standing  Committee                                                              
by a vote of 2-4.                                                                                                               

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