Legislature(2003 - 2004)

05/18/2003 01:03 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     HOUSE BILL NO. 232                                                                                                         
     "An Act relating to mercury classics; and providing for an                                                                 
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the first  hearing for  this bill  in the Senate  Finance                                                             
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken stated that this bill, "allows the Homer chapter of                                                             
the Kenai  Peninsula Boys and Girls  Club to operate and  implement                                                             
the Homer Mercury Classic."                                                                                                     
                                                                                                                                
REPRESENTATIVE  PAUL SEATON,  sponsor,  testified  this bill  would                                                             
establish the Homer Mercury Classic,  which would operate similarly                                                             
to other classics including the  Nenana Ice Classic. He stated this                                                             
bill would  allow the Boys and Girls  Club to offer $2  tickets, of                                                             
which  50 percent  would be  paid out in  prizes. He  told of  past                                                             
mercury classics  held in Fairbanks in 1987 and 1988,  noting these                                                             
were  the only  authorized  mercury  classics.   He  informed of  a                                                             
computerized weather  station located  on the roof of the  Boys and                                                             
Girls Club building that would allow for temperature monitoring. He                                                             
explained the weather station would  be used to determine the first                                                             
instance in the spring when the temperature rises to 55 degrees and                                                             
the first  instance in the fall  when the temperature lowers  to 15                                                             
degrees.                                                                                                                        
                                                                                                                                
Amendment #1: This amendment inserts "relating to contests of skill                                                             
under the charitable gaming laws;"  into the title of the bill. The                                                             
amended title reads as follows.                                                                                                 
                                                                                                                                
     "An Act relating to contests of skill under the charitable                                                                 
     gaming laws;  relating to mercury classics; and  providing for                                                             
     an effective date."                                                                                                        
                                                                                                                                
This amendment also inserts a new bill section on page 1, line 3 to                                                             
read as follows.                                                                                                                
                                                                                                                                
     Section 1. AS 05.15.180(g) is amended to read:                                                                             
          (g) A municipality  or a qualified organization may award                                                             
     a  maximum of  $1,000,000 in  prizes each  year in  activities                                                             
     authorized under this chapter; however, if a municipality or a                                                             
     qualified organization  contracts with an operator  to conduct                                                             
     on its  behalf activities authorized  under this chapter,  the                                                             
     municipality or qualified  organization may award a maximum of                                                             
     $500,000  in prizes each year.  A municipality or  a qualified                                                           
     organization that conducts  a contest of skill and awards more                                                           
     than $500,000 in prizes to the participants in that contest of                                                           
     skill,  may  exclude  $500,000  in  prizes  awarded  to  those                                                           
     participants  from  the  $1,000,000  maximum allowed  in  this                                                           
     subsection. The holders of a multiple-beneficiary permit under                                                           
     AS 05.15.100(d)  may award  a maximum in  prizes each  year of                                                             
     $1,000,000  times  the number  of holders  of  the permit  for                                                             
     activities authorized  under this chapter. In  this subsection                                                             
     "activities   authorized   under  this   chapter"  means   all                                                             
     activities subject to this chapter other than bingo.                                                                       
                                                                                                                                
     NEW TEXT UNDERLINED [DELETED TEXT BRACKETED]                                                                             
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Wilken objected for an explanation.                                                                                    
                                                                                                                                
Senator  Olson noted this  amendment specifically  pertains  to the                                                             
Iditarod Trail  sled dog  race and would  allow an organization  to                                                             
award over $1 million  in total prize payouts for a  game of skill.                                                             
He expressed  that the  Iditarod has  been a  popular activity  for                                                             
Western Alaska in the winter months.                                                                                            
                                                                                                                                
Co-Chair Wilken  asked if  the Iditarod game  or any other  game of                                                             
chance has reached the $1 million payout limit.                                                                                 
                                                                                                                                
Co-Chair Green  referenced a letter  dated May 17, 2003  to Senator                                                             
Olson  from Stan  Hooley, Executive  Director,  The Iditarod  Trail                                                             
Committee, Inc.,  [copy on file]  predicting that the  total payout                                                             
would exceed $1 million in the year 2004.                                                                                       
                                                                                                                                
Co-Chair Wilken therefore deemed this amendment necessary.                                                                      
                                                                                                                                
Co-Chair Wilken noted earlier questions were raised relating to the                                                             
legality  of this  provision  and  asked if  the issues  have  been                                                             
resolved.                                                                                                                       
                                                                                                                                
Senator Olson assured this amendment is legal.                                                                                  
                                                                                                                                
Senator Taylor suggested that without the amendment, the bill would                                                             
be subject to criticism  in that it specifies only  one charity and                                                             
one community.                                                                                                                  
                                                                                                                                
Co-Chair  Wilken  removed  his  objection  and  the  amendment  was                                                             
ADOPTED.                                                                                                                        
                                                                                                                                
Co-Chair Green offered a motion  to report HB 232, as amended, from                                                             
Committee with individual  recommendations and accompanying  fiscal                                                             
note.                                                                                                                           
                                                                                                                                
Senator  Taylor objected  to rhetorically  ask whether the  sponsor                                                             
would object to an amendment to include video gaming.                                                                           
                                                                                                                                
Senator Taylor withdrew his objection.                                                                                          
                                                                                                                                
Without objection, SCS HB 232 (FIN)  MOVED from Committee with zero                                                             
fiscal note #1 from the Department of Revenue.                                                                                  
                                                                                                                                
AT EASE 1:11 PM / 1:11 PM                                                                                                       
                                                                                                                                

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