Legislature(1999 - 2000)
02/17/2000 01:10 PM House TRA
* first hearing in first committee of referral
= bill was previously heard/scheduled
= 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, 2/11/00]. 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 state. 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 referral. 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 parties. 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 amendment. 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 referral. 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 revenues. 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.