HJUD - 03/06/905 CSHB 44 - GAMING PROCEEDS/DEFINE CHARITABLE ORGN'S Number 620 REPRESENTATIVE BUNDE made a motion to adopt Version G of the bill. There was objection for discussion. ANNE CARPENETI described the changes from the original bill to the committee substitute. They are all on page 4, except for one on page 5. Page 4, line 18, Version F, was changed to insert subsection (C) in place of AS 05.15.159. There was a problem with the bill drafter putting together a couple of versions, and the references were made to the wrong draft. The Judiciary Committee's version refers to subsection (C), rather than to AS 05.15.159. The next change is on page 4, line 28. "Organization" was added to the title of the section so that it read, "Political organization raffles." This made it clear that we are talking about raffles by political organizations, rather than raffles by other charitable organizations holding raffles for political purposes. MS. CARPENETI continued that in the State Affairs Committee version, on line 28, it had a subsection (a), but there was no subsequent subsection, so they took that out. They did not need an (a) if there is no (b), et cetera. And then the "notwithstanding AS 05.15.150" was removed, as not being necessary, because we are really dealing with two different things here. It made it unclear as to what was being talked about with the "notwithstanding AS 05.15.150." MS. CARPENETI described the last change, on page 5, line 5. No subsection reference is needed if there are no subsections. Hearing no objection, CSHB 44 was adopted as the version before the committee. Number 680 TOM ANDERSON, Legislative Aide to Representative Terry Martin, explained that what HB 44 is trying to do is eliminate politics from gaming. This bill says that no political groups or districts can hold a gaming permit, with the one exclusion of raffles. It also disallows any money earned from charitable gaming to be distributed to any political organization or candidate. Monies raised shall also be disclosed. The account from which donations were made to a political party must be disclosed. Number 740 JEFF PRATHER, Chief, Charitable Gaming Division, Department of Revenue, stated the Department is neutral in respect to this bill. He explained what a Multiple Beneficiary Permit (MBP) was. It allows up to six permittees to join together to operate as a partnership. The idea was to cut overhead costs. This bill would prohibit political organizations from joining one of these organizations. There is currently nothing preventing political organizations from joining an MBP for the purpose of holding a raffle only. Apparently this legislation would prevent that. CHAIRMAN PORTER thought banning them from MBPs would close up a potential loophole, in which it could be argued that a political organization could join an MBP. TAPE 95-25, SIDE B Number 000 MR. ANDERSON said our best bet is to eliminate the 11 political groups that hold charitable gaming permits, and hopefully, in the future, eliminate all entities that hold these permits, who really shouldn't, under the guise of charitable gaming, including unions. CHAIRMAN PORTER said the idea is that charitable gaming is supposed to be for charity. Number 100 There was a discussion on the location of the definition of "political organization." It was determined to be found in Title 5 of the Alaska Statutes. REPRESENTATIVE VEZEY wondered if they needed to put a definition in the bill. CHAIRMAN PORTER said the idea of the bill is to preclude money from going to organizations and individuals they described. That is pretty well defined, "No money may go, directly or indirectly as a contribution of any portion of the net proceeds or charitable gaming activity other than raffles, to a candidate for public office of the state or political subdivision of the state to the candidate's campaign organization, to a political party as defined, or to an organization or club organized under a group formally affiliated with a political party." There is not much left. Number 190 REPRESENTATIVE DAVIS made the motion to move an amendment of Representative Finkelstein's, who had to leave early. CHAIRMAN PORTER objected for discussion. REPRESENTATIVE DAVIS explained what the proposal would do is, on page 1, lines 5 - 8, to delete: "provide that a political group is not a qualified organization, for the purpose of charitable gaming, other than raffles, related to what is qualified organization for the purpose of charitable gaming permitting." Also, on page 3, lines 9 - 19, he would like all of that material to be deleted. The next proposed change is on page 4, lines 18 - 19. He wants to delete "a political use as provided in AS 05.15.155," and insert, "political uses other than political campaigns." On page 4, line 27, which is section (6), and ending at line 17 of Section (7), to be deleted. The general idea is to say political groups can also raise money, but the money has to be used for purposes other than political campaigns. MS. CARPENETI stated that the portion Representative Finkelstein wants to change, on page 4, line 18 - 19, has already been done in the State Affairs committee substitute. REPRESENTATIVE BUNDE believed there were already provisions for charitable, educational activities provided under raffles, and the political uses other than political campaigns would probably fall under "educational." That would be an easy line to draw between what is educational, and what is actually promoting a political campaign. Part of what Representative Finkelstein is trying to amend is already covered. After no further discussion, a roll call vote was taken. Representatives Toohey, Bunde, Vezey, Green and Porter voted no. Representative Davis voted yes. The amendment failed with a 1 to 5 vote. Number 290 REPRESENTATIVE VEZEY made a motion to move the bill CSHB44(JUD) out of committee with individual recommendations and fiscal notes. Hearing no objection, it was so ordered.