Legislature(2021 - 2022)BUTROVICH 205

03/23/2021 03:30 PM STATE AFFAIRS

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Audio Topic
03:33:16 PM Start
03:38:22 PM SB71
03:44:05 PM SB84
03:46:49 PM Confirmation Hearing(s)
04:06:48 PM SB77
04:31:13 PM SB47
04:50:13 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved SB 71 Out of Committee
-- Public Testimony --
Moved SB 84 Out of Committee
*+ Governor Appointees TELECONFERENCED
-- Public Testimony --
Heard & Held
-- Testimony <Invitation Only> --
Heard & Held
-- Invited & Public Testimony --
Bills Previously Heard/Scheduled
**Streamed live on AKL.tv**
          SB  77-USE OF INTERNET FOR CHARITABLE GAMING                                                                      
4:06:48 PM                                                                                                                    
CHAIR SHOWER announced  the consideration of SENATE  BILL NO. 77,                                                               
"An Act  relating to  charitable gaming  online ticket  sales and                                                               
He noted who was available to answer questions.                                                                                 
4:08:11 PM                                                                                                                    
MELODIE WILTERDINK,  Staff, Senator  Mia Costello and  the Senate                                                               
Labor and Commerce Standing  Committee, Alaska State Legislature,                                                               
Juneau,  Alaska,  introduced  SB  77  by  reading  the  following                                                               
sponsor statement into the record:                                                                                              
     In  January  of  2021,   Governor  Dunleavy  asked  the                                                                    
     Legislature  to  extend   the  public  health  disaster                                                                    
     emergency through  the passage of Senate  Bill 56. This                                                                    
     was a comprehensive bill  with numerous provisions, one                                                                    
     of  which included  an extension  of the  public health                                                                    
     disaster emergency.                                                                                                        
     This  bill  is  taken  from  the  Governor's  bill  and                                                                    
     addresses Section  9 of the  Governor's bill.  It looks                                                                    
     at charitable gaming online ticket sales.                                                                                  
     The  purpose of  this  committee bill  is  to give  the                                                                    
     legislative   branch  the   opportunity  to   take  the                                                                    
     necessary time to  determine whether or not  we need to                                                                    
     make our  statutes more COVID-19  aware, as  opposed to                                                                    
     relying on  an emergency disaster declaration  in order                                                                    
     to  keep our  state operational.  The Senate  Labor and                                                                    
     Commerce  Committee  intends  to rely  heavily  on  the                                                                    
     administration to  explain why certain sections  in the                                                                    
     disaster  extension bill,  such as  the provisions  now                                                                    
     found in Senate Bill 77, are necessary.                                                                                    
4:09:39 PM                                                                                                                    
MS. WILTERDINK read the following sectional analysis for SB 77:                                                                 
     Sec. 1   AS 05.15.060(a) Page  1, Lines 3-15, & Page 2,                                                                
     Lines 1-31, & Page 3, Lines  1-3 Is amended by adding a                                                                
     new   subsection  AS   05.15.060(a)(11)  to   establish                                                                    
     standards for online ticket  sales to ensure compliance                                                                    
     with charitable gaming laws  including age and location                                                                    
     verification and data security standards.                                                                                  
     Sec. 2  AS 05.15.640 Page 3, Lines 4-16                                                                                
     Is amended  by adding a new  subsection AS 05.15.640(d)                                                                    
     to allow  permitees and operators of  charitable gaming                                                                    
     licenses  to use  the  Internet  to conduct  charitable                                                                    
     gaming activities for  raffles, lotteries, dog mushers'                                                                    
     contests, derbies,  or types of classics  defined in AS                                                                    
     05.15.690.  This   includes  drawing   winning  tickets                                                                    
     Is amended  by adding a new  subsection AS 05.15.640(e)                                                                    
     to specify  that permitees and operators  of charitable                                                                    
     gaming  licenses must  verify  that  purchasers are  of                                                                    
     legal purchasing age, physically  present in the state,                                                                    
     and  not  physically  present  in   an  area  that  has                                                                    
     prohibited charitable gaming                                                                                               
4:11:17 PM                                                                                                                    
CHAIR SHOWER asked if there were questions or comments.                                                                         
SENATOR REINBOLD  thanked the sponsor  for taking  the initiative                                                               
to introduce  certain provisions of the  Governor's disaster bill                                                               
in separate pieces of legislation.                                                                                              
CHAIR SHOWER advised that Senator  Costello and other legislators                                                               
are trying to get the  legislative and executive branches to work                                                               
together  to make  it possible  to function  in a  situation like                                                               
COVID-19 without having  to declare a disaster.  He asked Senator                                                               
Costello to comment.                                                                                                            
4:12:50 PM                                                                                                                    
SENATOR  COSTELLO,  speaking  as  the  chair  of  the  Labor  and                                                               
Commerce Committee,  thanked her  staff, Melodie  Wilterdink, for                                                               
carrying  the bill.  She  said  it places  a  provision from  the                                                               
Governor's disaster  declaration in separate legislation  to make                                                               
the statutes  more COVID-aware. She  said she believes  this will                                                               
benefit the  state and  she looks forward  to hearing  Ms. Glover                                                               
talk about the entities that would use this law should it pass.                                                                 
4:14:19 PM                                                                                                                    
COLLEEN GLOVER,  Director, Tax  Division, Department  of Revenue,                                                               
Anchorage, Alaska,  began her testimony by  providing context for                                                               
charitable gaming  to be in  the Governor's  disaster declaration                                                               
bill.  She explained  that it  became apparent  last summer  that                                                               
organizations that  make up the  gaming community were  harmed by                                                               
not  being able  to sell  raffle  tickets at  public events.  The                                                               
current law allows  promotion of these contests  and derbies over                                                               
the  internet  but the  raffles  and  games cannot  be  conducted                                                               
online.  The  division  issued  temporary  guidance  saying  that                                                               
during the  pandemic the sale  and raffle would be  allowed. When                                                               
the original emergency declaration  expired in November 2020, the                                                               
administration  worked  to   include  that  temporary  regulatory                                                               
exemption  in Health  Order 7  issued in  mid-November 2020.  She                                                               
said that was  extended every 30 days until the  last one expired                                                               
in February.                                                                                                                    
Responding to  Senator Costello's request,  she said she  did not                                                               
have  specific examples  but the  division  did receive  feedback                                                               
from  organizations that  expressed concern  that online  raffles                                                               
and games would not be  allowed once the emergency order expired.                                                               
She   referenced  the   supporting   testimony  from   charitable                                                               
organizations and  others in  House Finance  last week  about the                                                               
benefits of  online raffles and  gaming. She said there  has been                                                               
no  opposition  and  the administration  supports  the  statutory                                                               
change reflected in SB 77, she said.                                                                                            
4:17:11 PM                                                                                                                    
SENATOR  COSTELLO referred  to a  requirement  in the  Governor's                                                               
disaster    declaration   legislation    and   asked    how   the                                                               
administration intended to verify the  age of the player and that                                                               
play was conducted from a location in the state.                                                                                
MS. GLOVER replied  the legislation called for  the department to                                                               
issue  guidance through  regulations and  the division  discussed                                                               
the use of software to verify both age and location.                                                                            
4:18:33 PM                                                                                                                    
SENATOR KAWASAKI  advised that the Catholic  Schools of Fairbanks                                                               
expressed  concern   about  the   expiration  of   the  emergency                                                               
regulations   for  online   gaming.  In   response,  his   office                                                               
researched Title  5 and found  nothing prevents  using electronic                                                               
means to  conduct raffles and  gaming. The Department of  Law and                                                               
Legislative  Legal  Services  worked on  language  for  temporary                                                               
guidance for gaming  permitees and settled on  the word "promote"                                                               
as written in  Title 5. He asked how that  was implemented and if                                                               
there were any problems with the emergency regulation.                                                                          
MS. GLOVER  replied the division  posted "temporary  guidance" on                                                               
the division's website  and shared it with  the gaming community.                                                               
There were  no emergency regulations  and the permitees  were not                                                               
required to  prove age  or location. The  department felt  it was                                                               
important to  help prevent  charitable gaming  organizations from                                                               
losing  proceeds, and  thus did  not implement  many constraints.                                                               
She acknowledged that, like many  others, they did not expect the                                                               
pandemic to endure for more than a year.                                                                                        
SENATOR  KAWASAKI  asked how  smaller  groups  would be  able  to                                                               
comply with the proposed statutory  revisions, should they become                                                               
MS. GLOVER replied  the division does not want to  make it be too                                                               
difficult for  these organizations to  comply but they  will need                                                               
to have controls  in place to prevent selling  to individuals who                                                               
are  out  of state  or  do  not  meet  the age  requirement.  The                                                               
division believes  there are affordable software  options for the                                                               
charitable  gaming   community  to  use  to   meet  the  proposed                                                               
SENATOR KAWASAKI asked  how long it would take  to promulgate the                                                               
regulations, should  this become  law. Specifically, he  asked if                                                               
online gaming could  take place this summer the same  way that it                                                               
did last summer.                                                                                                                
4:23:59 PM                                                                                                                    
MS.  GLOVER replied  the legislation  authorizes the  division to                                                               
issue guidance and  standards initially and follow  up later with                                                               
formal regulations.                                                                                                             
CHAIR SHOWER asked if there is  an effective date that allows the                                                               
Audio difficulties  between the  chair who  was in  the committee                                                               
room and  members who  were attending  the meeting  via Microsoft                                                               
4:25:34 PM                                                                                                                    
SENATOR  KAWASAKI  asked  if  SB 77  intends  for  the  temporary                                                               
guidance  to continue  at  the discretion  of  the Department  of                                                               
Revenue (DOR).                                                                                                                  
4:26:14 PM                                                                                                                    
SENATOR COSTELLO answered  that the only intention in  any of the                                                               
bills   the  Senate   Labor  and   Commerce  Standing   Committee                                                               
introduced  was  to  look  at the  issues  [from  the  Governor's                                                               
disaster  declaration   bill]  more   closely  and   answer  that                                                               
SENATOR COSTELLO noted  that this was the first hearing  on SB 77                                                               
and her  sense, based on Ms.  Glover's testimony, was there  is a                                                               
need for online charitable gaming  to be an option going forward.                                                               
Noting  that there  was  not  an effective  date,  she asked  Ms.                                                               
Glover if  she would suggest  adding an immediate  effective date                                                               
to the bill.                                                                                                                    
MS. GLOVER  replied she  believes it  is always  good to  have an                                                               
effective date on any legislation.                                                                                              
4:27:42 PM                                                                                                                    
At ease due to audio problems associated with Microsoft Teams.                                                                  
4:30:06 PM                                                                                                                    
CHAIR SHOWER reconvened the meeting  and relayed that he was able                                                               
to  hear  the   discussion  the  members  were   having  and  the                                                               
discussion was recorded,  but the members could not  hear him. He                                                               
described SB 77 as an important  effort to l prevent the need for                                                               
a disaster declaration to conduct business.                                                                                     
4:30:49 PM                                                                                                                    
CHAIR SHOWER  found no further  questions and announced  he would                                                               
hold SB 77 in committee.                                                                                                        

Document Name Date/Time Subjects
SB 77 Fiscal Note 2476.pdf SSTA 3/23/2021 3:30:00 PM
SB 77
SB 77 Sponsor Statement 3.17.21.pdf SSTA 3/23/2021 3:30:00 PM
SB 77
SB 77 Sectional Analysis 3.17.21.pdf SSTA 3/23/2021 3:30:00 PM
SB 77
SB 47 Fiscal Note 2348.pdf SSTA 3/23/2021 3:30:00 PM
SB 47
SB 47 v.A.PDF SSTA 3/23/2021 3:30:00 PM
SB 47
SB 47 Written Testimony (Additional).pdf SSTA 3/23/2021 3:30:00 PM
SB 47
SB47 Supporting Documents-DTD 2-2-2021.pdf SSTA 3/23/2021 3:30:00 PM
SB 47
SB47 Written Testimony (6).pdf SSTA 3/23/2021 3:30:00 PM
SB 47