1:38:03 PM HOUSE JOINT RESOLUTION NO. 2 Proposing an amendment to the Constitution of the State of Alaska requiring an affirmative vote of the people before any form of gambling for profit may be authorized in Alaska. Co-Chair Chenault MOVED to ADOPT work draft 25-LS0257\V, Luckhaupt, 2/14/08, as the version of the bill before the Committee. There being NO OBJECTION, it was adopted. REPESENTATIVE NANCY DAHLSTROM, SPONSOR, directed discussion to the work draft, addressing concerns voiced by the Committee. The work draft outlines potential affect on gaming and charitable games, while at the same time does not affect current existing operations. REPRESENTATIVE CRAWFORD, SPONSOR, added, the draft also clarifies the voting process; initially, it had been optional. 1:40:17 PM Vice-Chair Stoltze discussed appreciation for the changes made, while requesting backup documentation from each department affected, before the legislation moves to the House Floor. He emphasized that it is especially important because it is a proposed constitutional amendment. Representative Dahlstrom replied, those concerns would be addressed. She referenced Page 2, Line 6 of the \V version, inquiring if there should be a period following the word "law" for clarification purposes. Vice-Chair Stoltze recommended that the Department of Law, Office of the Attorney General, respond to that query. He reiterated the written assurance stipulated by that Department. Representative Crawford interjected that letters of support had been requested, but have not yet arrived. He indicated that the sponsors will continue to press for that documentation. 1:43:57 PM Representative Joule remembered that past attempts encouraging statewide gaming, had been defeated through the legislative process. He questioned why the resolution was being placed before the people. Representative Crawford explained that there is now an initiative on the ballot for the August election, which would remove the decision from the Legislature's preview. He and Representative Dahlstrom hoped to see the proposed verbiage written in the Constitution so that the Legislature will continue to have in-put. Representative Joule was not familiar with that specific initiative but understood that initiatives passed by the voters were in effect only for two years. Representative Crawford acknowledged that in two years it could be repealed, however, by then it could be more difficult to undo what had been done, i.e. such as construction of casinos. He reiterated, it would be difficult to reverse any position. The resolution provides the populace the ability to make the decision to expand gambling or not. The initiative has been "marketed" more as a regulation of the gaming industry; it does not include the reality of a five member commission with the sole authority of expanding gambling or not. 1:47:32 PM Co-Chair Chenault asked Representatives Crawford and Dahlstrom if those voting on an initiative could really understand what they were voting on. Representative Crawford said it depends on the way in which it is sold. Co-Chair Chenault explained the education piece of selling an initiative. The people of Alaska should know what they are voting on and the consequences associated with that vote. Representative Crawford acknowledged that the weight of advertising can change the mind of the voters and he knew there would be a large amount of advertising against the initiative. Co-Chair Chenault agreed that there is always a pro and con to each issue and that regardless of the dollars spent, the issue either fails or passes. He reiterated concern that voters might not fully understand the concern. Representative Crawford agreed & pointed out that is the beauty of the constitutional amendment process. 1:50:50 PM Vice-Chair Stoltze addressed fiscal concerns, remembering the attempt to take big money out of politics, which he thought it could be an undo influence. He worried having the gambling issue on a ballot measure proposing a constitutional amendment, which is tied to "beating-back" a citizen's initiative in the coming election. He questioned if the legislation would be appropriate public policy. Representative Crawford noted strong support for the initiative process. 1:53:48 PM Co-Chair Meyer pointed out that through the initiative process, the crew ship head tax was passed, which taxes gambling proceeds on the crew ships. He asked if HJR 2 would affect that. Representative Crawford advised that the language of the resolution is explicit: "It does not prohibit or restrict any form of gaming lawfully conducted under Alaska law". 1:55:19 PM Vice-Chair Stoltze MOVED to REPORT CS HJR 2 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CS HJR 2 (FIN) was reported out of Committee with "no recommendation" and with a new fiscal note by the Division of Elections.