03/15/2012 08:30 AM House FINANCE

HOUSE BILL NO. 245                                                                                                            
                                                                                                                                
     "An Act establishing a snow classic as an authorized                                                                       
     form of charitable gaming."                                                                                                
                                                                                                                                
9:26:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MIKE  HAWKER, SPONSOR, explained that  HB 245                                                                    
would allow  Four Valleys Community School,  Inc. to conduct                                                                    
a "snow classic" to raise  funds for their organization. The                                                                    
snow  classic would  be operated  much  like other  contests                                                                    
already  allowed  under  statute: contestants  would  buy  a                                                                    
ticket and  write a guess  of the depth of  snow accumulated                                                                    
by a  specific date  and time on  Mount Alyeska.  The winner                                                                    
would receive half of the net proceeds from the fundraiser.                                                                     
Four Valleys  Community School, Inc.  (FVCS) is  a nonprofit                                                                    
organization that  annually offers more than  250 year-round                                                                    
classes  and sponsors  community events.  While most  of the                                                                    
participants are  Turnagain Arm area residents,  people from                                                                    
neighboring communities such as  Anchorage, Eagle River, and                                                                    
Homer have  participated in FVCS events.  FVCS also supports                                                                    
athletes and local high school graduates with scholarships.                                                                     
When  community school  funding  from  the Anchorage  School                                                                    
District was eliminated, local  residents helped FVCS become                                                                    
a  501c(3) nonprofit  to ensure  that lifelong  learning and                                                                    
recreational   opportunities   remain   available   to   the                                                                    
community.  FVCS  recruited  volunteers  to  administer  and                                                                    
teach,   secured  corporate   and  private   donations,  and                                                                    
fostered community  involvement. Operating the  snow classic                                                                    
will help  achieve the  short-term goal  of self-sufficiency                                                                    
while keeping  classes affordable and locally  available. It                                                                    
also  will support  a long-term  goal of  creating a  stable                                                                    
fundraising  opportunity   that  will  enhance   the  entire                                                                    
community.                                                                                                                      
                                                                                                                                
JULI LUCKY,  STAFF, REPRESENTATIVE  MIKE HAWKER,  pointed to                                                                    
numerous  written public  testimonies  included in  members'                                                                    
packets (copy on file).                                                                                                         
                                                                                                                                
Co-Chair  Stoltze asked  Ms. Lucky  to  discuss the  letters                                                                    
received.                                                                                                                       
                                                                                                                                
Ms. Lucky  listed various support  for the  legislation. She                                                                    
stated that  there were  roughly 40  letters of  the support                                                                    
from the Alyeska Resort; Girdwood  Rotary Club; Girdwood 20-                                                                    
20;  Girdwood Turnagain  Arm  Lion's  Club; Girdwood,  Inc.;                                                                    
Little   Bear's   Playhouse;   and  many   individuals   and                                                                    
businesses in the surrounding areas.                                                                                            
                                                                                                                                
Co-Chair Stoltze  noted that there were  43 organizations on                                                                    
the list of support.                                                                                                            
                                                                                                                                
9:30:54 AM                                                                                                                    
                                                                                                                                
REBECCA  REICHLIN,  BOARD   CHAIR,  FOUR  VALLEYS  COMMUNITY                                                                    
SCHOOL, GIRDWOOD, pointed to her  written testimony that had                                                                    
been  provided  to committee  members  (copy  on file).  She                                                                    
spoke in  support of  HB 245. She  discussed that  there had                                                                    
been  some  recent  cuts  to   education  funding,  and  the                                                                    
legislation would encourage fundraising  to survive the cuts                                                                    
the  schools   had  become   a  501(c)3   organization.  The                                                                    
organization  had  experience  with gaming  activities.  The                                                                    
Snow Classic would allow the  school to eliminate dependence                                                                    
on tax  dollars, meet the schools  goal of self-sufficiency,                                                                    
and would  allow the school  to help itself.  She reiterated                                                                    
her  encouragement  for  the  committee's  support  for  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough asked  whether there  was a  limit on                                                                    
the amount that you could sell a ticket.                                                                                        
                                                                                                                                
Co-Chair Stoltze replied that  the committee would come back                                                                    
to the  question. He  believed the Snow  Classic would  be a                                                                    
historic event.                                                                                                                 
                                                                                                                                
Representative Hawker endorsed and supported new ideas.                                                                         
                                                                                                                                
9:35:13 AM                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough restated  her  question she  wondered                                                                    
whether  there was  a  limit  on the  dollar  amount of  the                                                                    
tickets.  JEFF  PRATHER,  SUPERVISOR,  GAMING  SECTION,  TAX                                                                    
DIVISION, DEPARTMENT  OF REVENUE, replied that  there was no                                                                    
dollar limit on the price of raffle tickets.                                                                                    
                                                                                                                                
Co-Chair  Stoltze asked  whether there  was a  typical upper                                                                    
limit on what  tickets were sold for.  Mr. Prather responded                                                                    
that  it was  unusual to  pay more  than $100  for a  raffle                                                                    
ticket.                                                                                                                         
                                                                                                                                
Vice-chair   Fairclough  discussed   her  prior   experience                                                                    
working  in non-profit  organizations.  She understood  that                                                                    
there was a limit of  $20 per raffle ticket for non-profits;                                                                    
she believed the amount was restrictive.                                                                                        
                                                                                                                                
Co-Chair  Stoltze wondered  whether there  was a  difference                                                                    
between a  raffle and a  game of chance. Mr.  Prather stated                                                                    
that he was not aware of a $20 limit on raffle tickets.                                                                         
                                                                                                                                
Co-Chair Stoltze noted that the issue would be clarified.                                                                       
                                                                                                                                
Co-Chair Stoltze  informed members that the  bill would come                                                                    
back before the committee the following week.                                                                                   
                                                                                                                                
Vice-chair Fairclough  noted that the fiscal  note should be                                                                    
listed as indeterminate and not  zero. She asked the sponsor                                                                    
if   the  analysis   was   correct.  Representative   Hawker                                                                    
responded in the affirmative.                                                                                                   
                                                                                                                                
Co-Chair Stoltze  noted that the  committee would  work with                                                                    
the department on the fiscal note.                                                                                              
                                                                                                                                
Co-Chair  Stoltze  CLOSED  the  public  testimony  with  the                                                                    
intent to reopen it in the future if necessary.                                                                                 
                                                                                                                                
HB  245  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:41:02 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:43:36 AM                                                                                                                    
RECONVENED