HOUSE BILL NO. 286                                                      
       "An  Act  providing  an  exemption  from  gambling  and                 
  certain               alcoholic beverage  laws for  gambling                 
  conducted  by  cruise  ships             for their  ticketed                 
  passengers in  the offshore  water of  the            state;                 
  relating to promotions on board cruise ships; defining                       
  'cruise  ship';  providing  for   exemption  procedures  for                 
  certain        cruise ships before they can conduct gambling                 
  in the  offshore         water  of the  state; providing  an                 
  exemption from the                  coin-operated device tax                 
  for cruise ships exempted  from the       gambling laws; and                 
  providing for an effective date."                                            
                                                                               
  Tom  Dow,  Vice  President,  Princess  Tours,   representing                 
  Princess and Northwest Cruise  Association, spoke in support                 
  of  HB  286  as  amended.    Senator Sharp  MOVED  to  adopt                 
  amendment #1, which limits the activities on cruise ships by                 
  eliminating  slot   machines  or  any   mechanical  devices.                 
  Senator  Zharoff  OBJECTED.  He  asked  what  the  amendment                 
  disallows?  Senator Sharp responded  that this precludes the                 
  activities on slot machines or  any other mechanical device,                 
  same  as Monte Carlo games.  Mr. Dow stated that the purpose                 
  of the amendment  is to  make the types  of games  available                 
  within the casinos  on board  the ships, the  same as  those                 
  that are available  on Monte Carlo  night, such as  roulette                 
  wheels and crap tables, poker, and black jack.   It does not                 
  include  slot  machines  or  video  poker games,  which  are                 
  legally  described  as   coin  operated  mechanical   gaming                 
  devices. No objection being heard, amendment #1 was ADOPTED.                 
  Senator Sharp  MOVED to  adopt amendment  #2, repealing  the                 
  earlier  effective  date  of 90  days  after  the governor's                 
  signature, or  September 30, 1995.  Mr. Dow stated  that the                 
  reason for  the amendment is  to remove any  possible chance                 
  that  the  passage of  this bill  would  have any  effect on                 
  expanding gaming beyond where it would  be otherwise.  It is                 
  under those circumstances  that the  industry has agreed  to                 
  support this amendment.  Dennis Poshard, Director,  Division                 
  of Charitable  Gaming, said that having  read correspondence                 
  from  the  attorney general's  office,  he concurs  with Mr.                 
  Dow's statement, that  these amendments would make  the bill                 
  so that it  has no  effect on furthering  gaming in  Alaska.                 
  Mr.  Dow noted that  if SB 172  never took  effect, the last                 
  date this exemption  would be  available would be  September                 
  30, 1995,  or sooner than  September 30th.   Without further                 
  objection, amendment #2 was ADOPTED.                                         
                                                                               
                                                                               
  Senator  Rieger  MOVED   to  adopt  CSHB 286  (FIN)  am with                 
  individual  recommendations  and  accompanying fiscal  note.                 
  Senator Phillips  objected.   By a  show of  hands CSHB  286                 
  (FIN)  am was REPORTED OUT with a  zero fiscal note from the                 
  Dept of Revenue, bringing in  a projected revenue of $500.0.                 
  Senators  Rieger  and  Zharoff  recommended   a  "do  pass".                 
  Senators Donley and Zharoff with Co-chair Halford signed "no                 
  recommendation", and Senator Phillips signed "do not pass".                  
                                                                               
  The meeting RECESSED at 2:30 p.m.