HJR 3-CONST.AM:NO GAMING WITHOUT VOTER APPROVAL 8:47:11 AM CHAIR LYNN announced that the last order of business was HOUSE JOINT RESOLUTION NO. 3, 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 and setting other requirements. 8:47:32 AM REPRESENTATIVE CRAWFORD, Alaska State Legislature, presented HJR 3 as co-prime sponsor. He said the proposed resolution would require a statewide vote of the people to legalized any form of gaming or gambling for profit. Furthermore, any municipality or organized borough could vote independently on the matter. If there were an affirmative statewide vote to legalize gambling or gaming, Homer, for example, could vote to make it illegal in its locality. The resolution would not interfere with anything that is currently legal, such as charitable gaming and lotteries. He offered to answer questions. CHAIR LYNN asked about statewide lotteries such as are held in other states. REPRESENTATIVE CRAWFORD said he hesitates to answer, because he does not know how far current charitable gaming and lottery law goes, but he reiterated that the resolution would not change anything that is currently legal. CHAIR LYNN mentioned a recent lottery that had unintended consequences. REPRESENTATIVE CRAWFORD said, "That is currently legal under the law that we have now," but said "It didn't turn out very well for anybody - even the winner." He said he would take a close look at that to consider some form of modification. 8:51:58 AM REPRESENTATIVE CRAWFORD, in response to Representative Gatto, said the tradition of splitting the pot at high school football games, since already established, would not be affected by the proposed resolution. In response to another example, he reiterated that those gaming laws already set up would not be affected by HJR 3. 8:54:23 AM REPRESENTATIVE SEATON asked if the bill would change the current situation involving gaming on cruise ships. He offered his understanding that "the collection of part of that tax does not give a permit for that within the state." REPRESENTATIVE CRAWFORD responded that the issue seems to be an unclear part of law. He revealed his intent to introduce a separate bill to stop collecting tax on the gambling which takes place on cruise ships. However, he said that is a separate question. CHAIR LYNN said he doesn't think the committee wants to talk about that issue while discussing HJR 3. REPRESENTATIVE CRAWFORD concurred. REPRESENTATIVE SEATON requested the bill sponsor get a legal opinion regarding the possible impact of HJR 3 on the cruise ship industry and gambling on cruise ships in particular. CHAIR LYNN said he thinks that would be a good idea. He noted that HJR 3 would be held for further consideration beyond today's discussion. REPRESENTATIVE CRAWFORD offered his belief that a legal opinion has already been obtained when similar legislation was heard last year. CHAIR LYNN asked Representative Crawford to check into it. REPRESENTATIVE GATTO said he thinks cruise ship gambling is regulated by federal government. 8:57:59 AM REPRESENTATIVE WILSON talked about the effect of gambling on various classes of people, noting that after the initial interest by many wears off, those who become addicted to gambling tend to be those without jobs. She said studies have shown that people will spend their grocery money on gambling. She opined that addictive gambling destroys families, and she said the proposed resolution is a good one. She concluded that Alaska is better off the way it is currently. CHAIR LYNN concurred. He noted that he is one of the co- sponsors. He named the co-prime sponsors and co-sponsors and invited others to join in sponsorship of the resolution. 9:00:45 AM REPRESENTATIVE PETERSEN related that he is from Iowa, which currently has more forms of legalized gambling of any state other than Nevada. He said recently there has been a task force studying the effects of gambling, and studies are now showing that 6 percent of Iowans are now gambling addicts and gambling might actually be costing the state more money than it is bringing in. He expressed concern that Alaska could end up with more than 6 percent of its population addicted, because "in remote areas of the state there's very little entertainment." CHAIR LYNN talked about the cost of gaming to families. REPRESENTATIVE PETERSEN spoke of gambling machines in grocery stores which have resulted in shoppers leaving the store without having bought any groceries. 9:03:48 AM REPRESENTATIVE GATTO observed that Nevada is successful with its gambling because it "mines" California. He stated his support of the proposed resolution. 9:05:22 AM CHAIR LYNN announced that he would be hearing public testimony at another time. 9:05:53 AM REPRESENTATIVE CRAWFORD expressed appreciation for House State Affairs Standing Committee's hearing the resolution early in the session so that it might be approved before the rush at the end of session. CHAIR LYNN assured Representative Crawford that when the sponsors are ready to discuss the bill again, the committee would place that hearing "close to the top of the list." REPRESENTATIVE CRAWFORD mentioned studies conducted in South Carolina and North Dakota which show that for every dollar in tax money that gambling brings in, the state pays out about $3 in social services monies to counteract the ills caused by the gambling. He said that does not even take into account the rate of suicide, bankruptcy, domestic violence, and alcoholism increasing the closer the proximity to a casino. He stated, "I can't see any advantage to anybody, other than the owners of these casinos and electronic gaming machines. It's a fool's paradise, and it's not something that we need in Alaska. In fact, it's something that we need to do everything in our power not to bring in." 9:08:38 AM CHAIR LYNN announced that HJR 3 was held over.