Legislature(1995 - 1996)

1995-05-04 House Journal

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1995-05-04                     House Journal                      Page 1856
HB 286                                                                       
The following was read the second time:                                        
                                                                               
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."                                                        
                                                                               
with the:                                                 Journal Page         
                                                                               
	JUD RPT  6DP 1NR                                                 1049         
	FISCAL NOTE (REV)                                                1050         
	FIN RPT  CS(FIN)  3DP 1DNP 4NR                                   1423         
	FISCAL NOTE (REV) 4/6/95                                         1424         

1995-05-04                     House Journal                      Page 1857
HB 286                                                                       
Representative Vezey moved and asked unanimous consent that the                
following committee substitute be adopted in lieu of the original bill:        
                                                                               
CS FOR HOUSE BILL NO. 286(FIN)                                                
(same title)                                                                  
                                                                               
There being no objection, it was so ordered.                                   
                                                                               
**The presence of Representative Navarre was noted.                            
                                                                               
Amendment No. 1 was offered by Representative Martin:                          
                                                                               
Page 1, line 1, following "Act" (title amendment):                           
	Insert "relating to gaming;"                                                
                                                                               
Page 1, following line 11:                                                     
	Insert a new bill section to read:                                            
   "* Sec. 2.  AS05.15.010 is amended to read:                               
	Sec. 05.15.010.  DEPARTMENT OF REVENUE TO                                    
ADMINISTER CHAPTER.  The Department of Revenue shall                           
administer charitable gaming, gambling, and other matters as                 
required under this chapter."                                                
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 3, following line 13:                                                     
	Insert a new bill section to read:                                            
   "* Sec. 6.  AS05.15.695 is amended to read:                               
	Sec. 05.15.695.  SHORT TITLE.  This chapter may be cited                     
as the Alaska Gambling [GAMING REFORM] Act."                               
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Representative Martin placed a call of the House on the bill.                  
                                                                               
Representative Martin moved and asked unanimous consent that                   
Amendment No. 1 be adopted.                                                    
                                                                               
Representative Finkelstein objected.                                           
                                                                               
The call was satisfied.                                                        

1995-05-04                     House Journal                      Page 1858
HB 286                                                                       
The question being:  "Shall Amendment No. 1 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
CSHB 286(FIN)                                                                  
Second Reading                                                                 
Amendment No. 1                                                                
                                                                               
YEAS:  11   NAYS:  29   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Davies, Green, Hanley, Kohring, Martin, Masek,                  
Navarre, Ogan, Parnell, Therriault                                             
                                                                               
Nays:  Austerman, Brice, Brown, Bunde, B.Davis, G.Davis, Elton,                
Finkelstein, Foster, Grussendorf, Ivan, James, Kelly, Kott, Kubina,            
Mackie, MacLean, Moses, Mulder, Nicholia, Phillips, Porter, Robinson,          
Rokeberg, Sanders, Toohey, Vezey, Williams, Willis                             
                                                                               
And so, Amendment No. 1 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 2 was offered by Representative Martin:                          
                                                                               
Page 1, line 1, following "Act":  (title amendment)                          
	Insert "prohibiting candidates from accepting contributions                  
derived from the use of certain objects or devices designed or                 
intended primarily for gaming or gambling;"                                   
                                                                               
Page 4, following line 2:                                                      
	Insert a new bill section to read:                                            
   "* Sec. 6.  AS15.13.070 is amended by adding a new subsection to          
read:                                                                          
	(i)  A candidate may not accept a contribution that is, or is                
derived, from the use of playing cards, dice, roulette wheels, coin-           
operated instruments or machines, or other objects or instruments              
used, designed, or intended primarily for gaming or gambling."                 
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Representative Martin moved and asked unanimous consent that                   
Amendment No. 2 be adopted.                                                    
                                                                               

1995-05-04                     House Journal                      Page 1859
HB 286                                                                       
Representative Finkelstein objected.                                           
                                                                               
The question being:  "Shall Amendment No. 2 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
                                                                               
CSHB 286(FIN)                                                                  
Second Reading                                                                 
Amendment No. 2                                                                
                                                                               
YEAS:  19   NAYS:  21   EXCUSED:  0   ABSENT:  0                             
                                                                               
                                                                               
Yeas:  Barnes, Bunde, B.Davis, G.Davis, Elton, Green, Hanley, James,           
Kelly, Kohring, Martin, Masek, Navarre, Ogan, Parnell, Sanders,                
Therriault, Vezey, Willis                                                      
                                                                               
Nays:  Austerman, Brice, Brown, Davies, Finkelstein, Foster,                   
Grussendorf, Ivan, Kott, Kubina, Mackie, MacLean, Moses, Mulder,               
Nicholia, Phillips, Porter, Robinson, Rokeberg, Toohey, Williams               
                                                                               
And so, Amendment No. 2 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 3 was offered by Representative Martin:                          
                                                                               
Page 1, line 7, following "laws;" (title amendment):                         
Insert "providing for a vote on whether cruise ships or any                  
other group should be provided an exemption to the gambling                    
laws of the state;"                                                           
                                                                               
Page 4, line 22:                                                               
Delete all material.                                                          
Insert new bill sections to read:                                             
	"* Sec. 8.  The lieutenant governor shall place before the                 
qualified voters of the state at the November 1996 general election            
a question of whether cruise ships or any other group should                   
receive an exemption from gambling laws of the state and be                    
permitted to use gambling instruments or devices.  The question                
shall appear on the ballot in the following form:                              

1995-05-04                     House Journal                      Page 1860
HB 286                                                                       
QUESTION                                                                      
	Should cruise ships or any other group receive an exemption                  
from the gambling laws of the state so as to allow them to utilize             
player cards, dice, roulette wheels, coin-operated instruments or              
machines, or other objects or instruments used, designed, or                   
intended primarily for gaming or gambling?	Yes[ ]		No [ ]                      
	* Sec. 9.  Section 8 of this Act takes effect immediately under            
AS 01.10.070(c).                                                               
	* Sec. 10.  Except for sec. 8 of this Act, this Act takes effect           
upon certification by the lieutenant governor that a majority of the           
qualified voters participating in the November 1996 general                    
election have voted to approve an exemption from the gambling                  
laws of the state for cruise ships or any other group in order for             
them to be permitted to use gambling instruments or devices."                  
                                                                               
Representative Martin moved and asked unanimous consent that                   
Amendment No. 3 be adopted.                                                    
                                                                               
Representative Porter objected.                                                
                                                                               
The question being:  "Shall Amendment No. 3 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
                                                                               
CSHB 286(FIN)                                                                  
Second Reading                                                                 
Amendment No. 3                                                                
                                                                               
YEAS:  14   NAYS:  26   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Green, Grussendorf, Hanley, James, Kelly, Kohring,              
Kott, Martin, Masek, Ogan, Sanders, Therriault, Willis                         
                                                                               
Nays:  Austerman, Brice, Brown, Bunde, Davies, B.Davis, G.Davis,               
Elton, Finkelstein, Foster, Ivan, Kubina, Mackie, MacLean, Moses,              
Mulder, Navarre, Nicholia, Parnell, Phillips, Porter, Robinson,                
Rokeberg, Toohey, Vezey, Williams                                              
                                                                               
                                                                               
And so, Amendment No. 3 was not adopted.                                       
                                                                               

1995-05-04                     House Journal                      Page 1861
HB 286                                                                       
Amendment No. 4 was offered by Representative Porter:                          
                                                                               
Page 1, line 9, through page 4, line 21:                                       
	Delete all material and insert new bill sections to read:                     
   "* Section 1.  CRUISE SHIP GAMBLING EXEMPTION.  (a)                       
Notwithstanding AS05.15.180(a), a cruise ship may conduct gambling             
as permitted under (b) of this section  in the offshore water of the state     
if                                                                             
		(1)  the operator of the cruise ship annually applies on a date              
set by the department on a form provided by the department;                    
		(2)  the operator of the cruise ship agrees to comply with                   
AS45.50.474; and                                                               
		(3)  the operator pays the annual exemption fee required under               
(c) of this section.                                                           
	(b)  The provisions of AS11.66.200 - 11.66.280 do not apply to                
gambling conducted by a cruise ship for its ticketed passengers in the         
offshore water of the state if                                                 
		(1)  the cruise ship is exempt under (a) of this section;                    
		(2)  the cruise ship does not conduct gambling in, or within                 
three miles of, a state port visited by the cruise ship;                       
		(3)  the gambling is ancillary to the cruise and the cruise has              
as its main purpose scenic cruising and port visits at maritime                
communities in the state; and                                                  
		(4)  the cruise ship operates under an itinerary that either                 
originates or terminates in a port outside the state.                          
	(c)  The exemption fee for a cruise ship to conduct gambling under            
(a) of this section is for cruise ships with a capacity of                     
		(1)  500 or fewer passengers                                $10,000;         
		(2)  501 - 999 passengers                                   $20,000;         
		(3)  1000 - 1999 passengers                                 $30,000;         
		(4)  2,000 passengers or more                               $40,000.         
                                                                               
	(d)  The department shall revoke the exemption of a cruise ship               
that becomes ineligible to hold an exemption under this section,               
provides false information in an application for an exemption, violates        
an order issued under AS05.15.680 or conducts gambling in violation            
of the provisions of this section.  When revoking an exemption under           
this subsection, the department may bar a cruise ship from obtaining           
an exemption under this section in the future or for a specified number        
of years in the future.                                                        
                                                                               

1995-05-04                     House Journal                      Page 1862
HB 286                                                                       
	(e)  AS05.15.610, 05.15.680, and 05.15.690 apply to gambling on               
a cruise ship.                                                                 
	(f)  AS04.16.175 does not apply to an agent or employee of a                  
cruise ship authorized to conduct gambling activities under this section.      
	(g)  A person who, with the intent to mislead a public servant in             
the performance of the public servant's duty, submits a false statement        
in an application for an exemption under this section is guilty of             
unsworn falsification.                                                         
	(h)  The tax imposed by AS43.35.010 does not apply to a coin-                 
operated device on board a cruise ship for a tax period during which           
the cruise ship is authorized to conduct gambling activities under this        
section.                                                                       
	(i)  In this section,  "offshore water of the state" means the marine         
water over which the state has jurisdiction.                                   
   * Sec. 2.  EXCEPTION TO REQUIRED DISCLOSURES IN                           
PROMOTIONS ON BOARD CRUISE SHIPS.  The prohibition                             
contained in AS 45.50.474 does not apply to on-shore excursions that           
are sold on board a cruise ship.                                               
   * Sec. 3.   In this Act,  "cruise ship" means a ship that operates at     
least 120 days a year anywhere in the world, provides cruises of at            
least 72 hours in length for ticketed passengers, provides on board the        
ship overnight accommodations for at least 300 passengers,  is                 
operated by an authorized cruise ship operator, and is certified under         
the International Convention for the Safety of Life at Sea or otherwise        
certified by the United States Coast Guard..                                   
   * Sec. 4.  This Act is repealed September30, 1995."                       
                                                                               
Renumber the following bill section accordingly.                               
                                                                               
Representative Porter moved and asked unanimous consent that                   
Amendment No. 4 be adopted.  There being no objection, it was so               
ordered.                                                                       
                                                                               
                                                                               
Amendment No. 5 was offered by Representative Martin:                          
                                                                               
Page 2, lines 16-21:                                                           
Delete all material.                                                          
Insert "(b)  The exemption fee for a cruise ship to conduct                   
gambling under (a) of this section is for cruise ships with a                  
capacity of                                                                    

1995-05-04                     House Journal                      Page 1863
HB 286                                                                       
	(1) 999 or fewer passengers - 5 percent of gross gambling                    
receipts                                                                       
	(2) 1,000-1,999 passengers - 4 percent of gross gambling                     
receipts                                                                       
	(3) 2,000 passengers or more - 3 percent of gross gambling                   
receipts"                                                                      
                                                                               
Page 4, following line 2:                                                      
Insert "(3)  "gross gambling receipts" means the total amount of              
proceeds, exclusive of prize money, generated from cruise ship                 
gambling activities conducted in the offshore water of the state."             
                                                                               
                                                                               
Representative Martin moved and asked unanimous consent that                   
Amendment No. 5 be adopted.                                                    
                                                                               
                                                                               
Representative Mackie objected.                                                
                                                                               
                                                                               
The question being:  "Shall Amendment No. 5 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
                                                                               
CSHB 286(FIN) am                                                               
Second Reading                                                                 
Amendment No. 5                                                                
                                                                               
YEAS:  5   NAYS:  35   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Barnes, Kohring, Martin, Masek, Ogan                                    
                                                                               
Nays:  Austerman, Brice, Brown, Bunde, Davies, B.Davis, G.Davis,               
Elton, Finkelstein, Foster, Green, Grussendorf, Hanley, Ivan, James,           
Kelly, Kott, Kubina, Mackie, MacLean, Moses, Mulder, Navarre,                  
Nicholia, Parnell, Phillips, Porter, Robinson, Rokeberg, Sanders,              
Therriault, Toohey, Vezey, Williams, Willis                                    
                                                                               
                                                                               
And so, Amendment No. 5 was not adopted.                                       
                                                                               

1995-05-04                     House Journal                      Page 1864
HB 286                                                                       
Amendment No. 6 was offered by Representative Ogan:                            
                                                                               
Page 2, line 18:                                                               
Delete "$10,000"                                                              
Insert "$20,000"                                                              
                                                                               
Page 2, line 19:                                                               
Delete "$20,000"                                                              
Insert "$40,000"                                                              
                                                                               
Page 2, line 20:                                                               
Delete "$30,000"                                                              
Insert "$60,000"                                                              
                                                                               
Page 2, line 21:                                                               
Delete "$40,000"                                                              
Insert "$80,000"                                                              
                                                                               
Representative Ogan moved and asked unanimous consent that                     
Amendment No. 6 be adopted.                                                    
                                                                               
Representative Porter objected.                                                
                                                                               
The question being:  "Shall Amendment No. 6 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
CSHB 286(FIN) am                                                               
Second Reading                                                                 
Amendment No. 6                                                                
                                                                               
YEAS:  5   NAYS:  35   EXCUSED:  0   ABSENT:  0                              
                                                                               
Yeas:  Barnes, Kohring, Martin, Masek, Ogan                                    
                                                                               
Nays:  Austerman, Brice, Brown, Bunde, Davies, B.Davis, G.Davis,               
Elton, Finkelstein, Foster, Green, Grussendorf, Hanley, Ivan, James,           
Kelly, Kott, Kubina, Mackie, MacLean, Moses, Mulder, Navarre,                  
Nicholia, Parnell, Phillips, Porter, Robinson, Rokeberg, Sanders,              
Therriault, Toohey, Vezey, Williams, Willis                                    
                                                                               
And so, Amendment No. 6 was not adopted.                                       

1995-05-04                     House Journal                      Page 1865
HB 286                                                                       
Representative Vezey moved and asked unanimous consent that                    
CSHB286(FIN) am be considered engrossed, advanced to third                     
reading and placed on final passage.  There being no objection, it was         
so ordered.                                                                    
                                                                               
                                                                               
CSHB 286(FIN) am was read the third time.                                      
                                                                               
                                                                               
Representative Mackie rose to a point of order regarding confining             
remarks to the bill.                                                           
                                                                               
The Speaker ruled the member in order.                                         
                                                                               
                                                                               
The question being:  "Shall CSHB286(FIN) am pass the House?"  The              
roll was taken with the following result:                                      
                                                                               
CSHB 286(FIN) am                                                               
Third Reading                                                                  
Final Passage                                                                  
                                                                               
YEAS:  32   NAYS:  8   EXCUSED:  0   ABSENT:  0                              
                                                                               
                                                                               
Yeas:  Austerman, Brice, Brown, Bunde, Davies, B.Davis, G.Davis,               
Elton, Finkelstein, Foster, Green, Grussendorf, Ivan, James, Kelly,            
Kott, Kubina, Mackie, MacLean, Moses, Mulder, Navarre, Nicholia,               
Phillips, Porter, Robinson, Rokeberg, Therriault, Toohey, Vezey,               
Williams, Willis                                                               
                                                                               
Nays:  Barnes, Hanley, Kohring, Martin, Masek, Ogan, Parnell,                  
Sanders                                                                        
                                                                               
And so, CSHB286(FIN) am passed the House.                                      
                                                                               
                                                                               
Representative Vezey moved and asked unanimous consent that the                
roll call on the passage of the bill be considered the roll call on the        
effective date clause.  There being no objection, it was so ordered.           

1995-05-04                     House Journal                      Page 1866
HB 286                                                                       
Representative Porter later gave notice of reconsideration of his vote         
on CSHB 286(FIN) am, and the reconsideration was taken up then.