Legislature(2021 - 2022)ADAMS 519

03/29/2021 01:30 PM House FINANCE

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Audio Topic
01:37:41 PM Start
01:38:37 PM Presentation: Tourism and the Economy by the Alaska Travel Industry Association
02:17:36 PM HB128
03:16:04 PM HB27
03:17:05 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Tourism & the Economy by TELECONFERENCED
Sarah Leonard, President & CEO, Alaska Travel
Industry Assoc.
-- Testimony <Invitation Only> --
+= HB 128 USE OF INTERNET FOR CHARITABLE GAMING TELECONFERENCED
Moved CSHB 128(FIN) Out of Committee
+= HB 27 NAMING IRENE WEBBER BRIDGE TELECONFERENCED
Moved HB 27 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 29, 2021                                                                                            
                         1:37 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:37:41 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster called the House Finance Committee meeting                                                                      
to order at 1:37 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Kelly Merrick, Co-Chair                                                                                          
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Bryce Edgmon                                                                                                     
Representative DeLena Johnson                                                                                                   
Representative Andy Josephson                                                                                                   
Representative Bart LeBon                                                                                                       
Representative Sara Rasmussen                                                                                                   
Representative Steve Thompson                                                                                                   
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative Zack Fields, Sponsor; Tristan Walsh, Staff,                                                                      
Representative Zack Fields; Representative Mike Cronk.                                                                          
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Sarah  Leonard,  President   and  Chief  Executive  Officer,                                                                    
Alaska   Travel   Industry  Association;   Claire   Radford,                                                                    
Legislative  Counsel,  Legislative Legal  Services;  Colleen                                                                    
Glover, Director, Tax Division, Department of Revenue.                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 27     NAMING IRENE WEBBER BRIDGE                                                                                            
                                                                                                                                
          HB 27 was REPORTED out of committee with a "do                                                                        
          pass" recommendation and with one previously                                                                          
         published fiscal impact note: FN1 (DOT).                                                                               
                                                                                                                                
HB 128    USE OF INTERNET FOR CHARITABLE GAMING                                                                                 
                                                                                                                                
          CSHB 128(FIN)  was REPORTED out of  committee with                                                                    
          four   "do   pass"  recommendations,   three   "no                                                                    
          recommendation" recommendations,  and four "amend"                                                                    
          recommendations  and  with one  new  indeterminate                                                                    
          fiscal note from the Department of Revenue.                                                                           
                                                                                                                                
PRESENTATION: TOURISM  AND THE ECONOMY BY  THE ALASKA TRAVEL                                                                    
INDUSTRY ASSOCIATION                                                                                                            
                                                                                                                                
Co-Chair Foster reviewed the agenda for the day.                                                                                
                                                                                                                                
^PRESENTATION: TOURISM AND THE  ECONOMY BY THE ALASKA TRAVEL                                                                  
INDUSTRY ASSOCIATION                                                                                                          
                                                                                                                                
1:38:37 PM                                                                                                                    
                                                                                                                                
SARAH  LEONARD,  PRESIDENT   AND  CHIEF  EXECUTIVE  OFFICER,                                                                    
ALASKA  TRAVEL  INDUSTRY ASSOCIATION  (via  teleconference),                                                                    
provided  a  PowerPoint  presentation titled  "Alaska  State                                                                    
Legislature: House  Finance Committee" dated March  29, 2021                                                                    
(copy  on file).  She began  on slide  2 and  explained that                                                                    
Alaska Travel  Industry Association  (ATIA) was  the leading                                                                    
statewide  organization for  travel  related businesses  and                                                                    
partners.  She relayed  that ATIA's  mission was  to promote                                                                    
Alaska  as a  top  visitor  destination and  as  one of  the                                                                    
state's  economic  contributors.  The association  had  more                                                                    
than 600  members and community partners  representing small                                                                    
and large  businesses from every  region in Alaska,  as well                                                                    
as diverse  sectors across the  travel industry.  She shared                                                                    
that the organization  was led by a 24  member elected board                                                                    
of  directors representing  Alaska's  regions and  different                                                                    
business   types.  She   shared  that   Alaska's  lieutenant                                                                    
governor  was  an   ex  officio  member  of   the  board  of                                                                    
directors.                                                                                                                      
                                                                                                                                
1:40:00 PM                                                                                                                    
                                                                                                                                
Ms. Leonard turned  to slides 3 and 4 and  stated that along                                                                    
with being  a statewide voice  for Alaska tourism,  ATIA had                                                                    
long  managed  the  state's  destination  marketing  program                                                                    
Travel Alaska. The  marketing program traditionally included                                                                    
producing  a  printed  vacation planner  (a  magazine  style                                                                    
piece), public relations  with media, television advertising                                                                    
when ATIA  could afford it, and  digital advertising through                                                                    
its  main  consumer   website  travelalaska.com  along  with                                                                    
social  media  through  platforms  like  YouTube,  Facebook,                                                                    
Instagram,  and  Twitter. She  relayed  that  ATIA had  past                                                                    
investment   in  travel   trade   shows  and   international                                                                    
marketing efforts.                                                                                                              
                                                                                                                                
Ms. Leonard addressed the impacts  of COVID-19 on the travel                                                                    
industry. She reported  that the industry had  been hit hard                                                                    
by  the pandemic.  She stated  that according  to the  World                                                                    
Tourism  Organization,  destinations  welcomed  900  million                                                                    
fewer  international tourists  between  January and  October                                                                    
when compared  with the  same period  of 2019.  She detailed                                                                    
that the  reduction in  travel translated  into the  loss of                                                                    
$935 billion in export  revenues from international tourism,                                                                    
which was  more than 10  times the  loss in 2009  during the                                                                    
global economic crisis.                                                                                                         
                                                                                                                                
1:41:24 PM                                                                                                                    
                                                                                                                                
Ms.   Leonard   moved  to   slide   7   and  reported   that                                                                    
international arrivals fell by 72  percent over the first 10                                                                    
months  of 2020.  She elaborated  that travel  restrictions,                                                                    
low consumer  confidence, and the global  struggle to manage                                                                    
the disease  generated what  the World  Tourism Organization                                                                    
called  the  "worst  year  on   record  in  the  history  of                                                                    
tourism."                                                                                                                       
                                                                                                                                
Ms. Leonard turned to slide  8 and relayed that according to                                                                    
the  U.S.  Travel  Association, domestic  and  international                                                                    
travelers  spent $1.1  trillion  in the  U.S.  in 2019.  The                                                                    
spending  directly supported  9 million  jobs, 7  percent of                                                                    
the  total  private  industry employment  in  the  U.S.  and                                                                    
generated $277  billion in payroll  income and  $180 billion                                                                    
in tax  revenues for federal, state,  and local governments.                                                                    
Since  the  beginning  of  March   2020,  the  pandemic  had                                                                    
resulted in over $500 billion  in losses for the U.S. travel                                                                    
economy. She shared  that at the current  pace, the industry                                                                    
was not expected to fully recover until 2025.                                                                                   
                                                                                                                                
Ms.  Leonard advanced  to  slide 9  and  reported that  pre-                                                                    
pandemic, Alaska  saw close  to 60  percent of  its visitors                                                                    
arrive by cruise in the  summer months and over one-third by                                                                    
air, with the rest arriving  by land via the Alaska Canadian                                                                    
Highway or via the Alaska  Marine Highway System (AMHS). She                                                                    
elaborated that the  more than 2.5 million  visitors in 2019                                                                    
generated $4.5  billion in economic  activity for  the state                                                                    
and supported over  50,000 direct and indirect  jobs (one in                                                                    
ten Alaska  jobs). She  relayed that  tourism in  Alaska had                                                                    
generated $215 million  in tax revenues for  state and local                                                                    
governments. Since  March of the previous  year, every entry                                                                    
point by travelers  had been impacted. She  stated that 99.9                                                                    
percent of the  cruise sailings had been  canceled in Alaska                                                                    
and  air travel  had been  significantly impacted  (although                                                                    
there had been  some travel at airports  as Alaska's testing                                                                    
procedures  and  travel  mandates and  guidelines  had  been                                                                    
initiated).  She  stressed  that with  the  Canadian  border                                                                    
closure since  March 2020, which  had been  extended through                                                                    
February  2022,   large  ship  cruise  and   highway  travel                                                                    
continued to be impacted.                                                                                                       
                                                                                                                                
1:43:58 PM                                                                                                                    
                                                                                                                                
Ms. Leonard highlighted a table  representing all air travel                                                                    
and the  difference between 2019  and 2020 on slide  10. She                                                                    
reported   that  Anchorage,   Fairbanks,   and  Juneau   saw                                                                    
decreases  of 59  percent across  the board.  She turned  to                                                                    
slide 11 and stated there  were more dramatic differences in                                                                    
land  crossings at  the boarder  with  almost 250,000  fewer                                                                    
travelers.  She looked  briefly at  slide 12  and noted  the                                                                    
losses were even higher on AMHS.                                                                                                
                                                                                                                                
Ms. Leonard turned to slide  13 and stated that when talking                                                                    
about  how  hard hit  the  Alaska  visitor industry  was  by                                                                    
COVID-19, ATIA looked to employment  data as it had not been                                                                    
able  to  fund or  gather  more  specific information  until                                                                    
recently. She  relayed that  ATIA was  about to  implement a                                                                    
study  in partnership  with the  McKinley Research  Group to                                                                    
assess more comprehensive economic  impacts from COVID-19 on                                                                    
the Alaska  travel and tourism industry.  She explained that                                                                    
the graph represented data from  the Department of Labor and                                                                    
Workforce  Development and  was a  snapshot from  June year-                                                                    
over-year  including  various   census  areas  ranging  from                                                                    
Skagway to Denali. Overall, Alaska  had been down 37 percent                                                                    
in employment  in the leisure and  hospitality industry. She                                                                    
reported similar  job losses  in related  air transportation                                                                    
employment.                                                                                                                     
                                                                                                                                
Ms.  Leonard spoke  to  slide  15 and  16.  She stated  that                                                                    
overall Alaska was down 35  percent in the accommodation and                                                                    
food  service employment  sectors.  The  Denali Borough  and                                                                    
Skagway community  were significantly  impacted by  the loss                                                                    
of visitation  over the past  summer with 87 percent  and 80                                                                    
percent  employment  loss,  respectively. She  relayed  that                                                                    
communities in  the Denali Borough and  Southeast Alaska had                                                                    
been particularly impacted by the  loss of large ship cruise                                                                    
travel;  however, the  impacts  were  spread throughout  the                                                                    
state.  She  moved to slide 17 and  briefly highlighted that                                                                    
sightseeing  tourism  businesses  were down  85  percent  in                                                                    
employment losses Anchorage, Juneau, and Ketchikan.                                                                             
                                                                                                                                
1:46:17 PM                                                                                                                    
                                                                                                                                
Ms.  Leonard  moved   to  slide  19  and   stated  that  the                                                                    
Alaskanomics  blog from  March 26,  2021, reported  February                                                                    
[2021] employment was down 7  percent from February 2020 - a                                                                    
loss of  over 22,000  jobs with  leisure and  hospitality in                                                                    
the forefront of  the losses with 7,300 fewer  jobs than the                                                                    
prior February (a loss of  over 20 percent). She stated that                                                                    
the losses  translated into jobs of  friends, neighbors, and                                                                    
colleagues ranging from frontline  customer service teams to                                                                    
outdoor tour guides.                                                                                                            
                                                                                                                                
Ms.  Leonard   shared  that  since  the   beginning  of  the                                                                    
pandemic,  ATIA  had  used a  multipronged  approach  toward                                                                    
moving  and  keeping  Alaska's  tourism  industry  onto  the                                                                    
economic path toward recovery. First,  the health and safety                                                                    
of  employees   and  visitors   remained  a   priority.  She                                                                    
explained  that  ATIA   had  developed  high-level  industry                                                                    
safety  protocols  in  April   2020  that  businesses  could                                                                    
incorporate into  their operations and market  to travelers.                                                                    
Second,  ATIA  continually  advocated for  safe  return  for                                                                    
cruises in Alaska. She relayed  that Canada's prohibition on                                                                    
cruise vessels  until February  2022 had  further threatened                                                                    
Alaska's already fragile tourism industry.                                                                                      
                                                                                                                                
Ms.  Leonard  detailed that  ATIA  worked  closely with  the                                                                    
state's Congressional delegation  on brainstorming solutions                                                                    
to  safely  resume   cruising  operations.  The  association                                                                    
appreciated the  leadership of the  Congressional delegation                                                                    
on  the issue,  particularly relating  to the  conversations                                                                    
with  the Center  for Disease  Control and  Prevention (CDC)                                                                    
allowing   possible    changes   to    complicated   federal                                                                    
regulations,  such as  a temporary  waiver to  the Passenger                                                                    
Vessel  Services  Act  (PVSA).  She  shared  that  ATIA  was                                                                    
closely watching updated timelines  and information from the                                                                    
CDC regarding  further guidance for the  conditional sailing                                                                    
order.  She acknowledged  the  legislature's  HJR 13  urging                                                                    
Congress to  exempt cruise ships from  certain provisions of                                                                    
the PVSA  related to Canadian  ports. She relayed  there had                                                                    
been another 30-day extension by  the Canadian government to                                                                    
keep  the  land  border  closed   through  April  21st.  She                                                                    
reported  that Canadian  land border  restrictions continued                                                                    
to  be  confusing  by province  and  were  another  entryway                                                                    
stalled for travelers to reach Alaska destinations.                                                                             
                                                                                                                                
1:48:58 PM                                                                                                                    
                                                                                                                                
Ms. Leonard turned  to slide 20 and discussed  that ATIA had                                                                    
also  partnered with  the Department  of  Health and  Social                                                                    
Services on travel guidelines during  COVID. She stated that                                                                    
ATIA  supported providing  the governor  with the  necessary                                                                    
tools for a  public health emergency. She  continued that at                                                                    
the same time,  the industry was moving  forward and letting                                                                    
visitors  know  it  was  ready   to  safely  provide  Alaska                                                                    
experiences.  She elaborated  that vaccine  availability had                                                                    
really changed  the conversation for travel  and that Alaska                                                                    
was perceived as an even  more safe destination and one that                                                                    
was  open  for  business.  She explained  that  because  the                                                                    
vaccine was  available in Alaska  to anyone 16 years  of age                                                                    
and  older for  residents  and nonresidents  working in  the                                                                    
travel   and   tourism   industry,  ATIA   was   encouraging                                                                    
businesses  to  make  the  vaccine  available  within  their                                                                    
workforce in  order for  its teams  to be  safe and  work in                                                                    
Alaska.                                                                                                                         
                                                                                                                                
Ms.  Leonard  stated  that   ATIA  advocated  for  continued                                                                    
financial  support for  tourism  businesses and  destination                                                                    
marketing  organizations at  the local,  state, and  federal                                                                    
levels. She  elaborated that  it included  complementing the                                                                    
U.S.  Travel Association's  relief and  recovery priorities,                                                                    
which  focused on  considerations for  the tourism  industry                                                                    
and  was reflected  in the  recently passed  American Rescue                                                                    
Plan Act  (ARPA). She detailed  important provisions  in the                                                                    
act included flexibility and  extensions within the Paycheck                                                                    
Protection  Program,   grants  to  tourism   businesses  and                                                                    
nonprofits through  dollars allocated to states,  local, and                                                                    
tribal  governments, including  aid  to impacted  industries                                                                    
such  as tourism,  travel, and  hospitality.  She stated  it                                                                    
also  included  the  valid  use  of  tourism  marketing  and                                                                    
promotion  for  communities  and states  that  had  suffered                                                                    
economic  injury  due  to losses  in  travel,  tourism,  and                                                                    
outdoor recreation, through programs  like those funded with                                                                    
money coming to Alaska  and through the Economic Development                                                                    
Administration (EDA).                                                                                                           
                                                                                                                                
1:51:05 PM                                                                                                                    
                                                                                                                                
Ms.  Leonard  addressed  slide   22  and  discussed  a  path                                                                    
forward. She  discussed that the future  of Alaska's tourism                                                                    
industry and  long-term recovery was about  investing in the                                                                    
marketplace.  She  emphasized   that  Alaska  was  currently                                                                    
competing  with other  destinations for  every traveler  and                                                                    
dollar. She  relayed that  ATIA had  shifted its  message to                                                                    
target independent  and air travelers as  accessible ways to                                                                    
safely travel  to Alaska. She  stated that  promoting Alaska                                                                    
at  present  through  the  rest  of  the  year,  could  help                                                                    
generate   much  needed   economic   activity  for   tourism                                                                    
businesses and communities.                                                                                                     
                                                                                                                                
Ms.  Leonard moved  to  slide 23  and  spoke about  traveler                                                                    
sentiment.  She  reported  there  were  increasing  positive                                                                    
trends  related  to  traveler  sentiment.  She  shared  that                                                                    
Destination Analysts,  a national research  consulting firm,                                                                    
was predicting amidst the stress  of the pandemic, Americans                                                                    
were prioritizing relaxation, and  many were ready to travel                                                                    
to  achieve  it.  She  relayed  that  nearly  9  out  of  10                                                                    
travelers  agreed  that  having  a trip  planned  gave  them                                                                    
something  to look  forward  to and  that  travel made  them                                                                    
excited, happy,  and hopeful. She stated  that a record-high                                                                    
74 percent  of American  travelers did  some sort  of travel                                                                    
planning and  dreaming in the  recent past weeks  alone. She                                                                    
reported that close to 87  percent of American travelers had                                                                    
travel plans within  the next six months  (the highest level                                                                    
seen since March 2020).                                                                                                         
                                                                                                                                
Ms. Leonard  advanced to  slide 24  and stated  that vaccine                                                                    
availability would play a huge  roll in travel recovery. She                                                                    
relayed that  ATIA was optimistic  the rollout  would expand                                                                    
to  reach more  people in  the coming  months. She  reported                                                                    
that Destination  Analysts and U.S. Travel  shared that over                                                                    
half of Americans  expected to get a vaccine  by June, older                                                                    
Americans   (part  of   Alaska's   target  demographic   for                                                                    
travelers) were  more likely to  get vaccinated or  had been                                                                    
vaccinated,  and younger  travelers  were  the likeliest  to                                                                    
plan for  travel as vaccines  became more  widely available.                                                                    
Following the May 1 goal  to open vaccine eligibility to all                                                                    
U.S. adults,  60 percent of  travelers were  confident there                                                                    
would be a return to "normal" by summer.                                                                                        
                                                                                                                                
1:53:29 PM                                                                                                                    
                                                                                                                                
Ms.  Leonard turned  to  slide  26 and  stated  that it  was                                                                    
necessary to reach travelers  with the necessary information                                                                    
on how  to travel safely  and visit Alaska;  therefore, ATIA                                                                    
had  produced   a  video  invitation  in   partnership  with                                                                    
Governor  Dunleavy  to  invite   travelers  to  Alaska.  The                                                                    
association  was  sharing  travel-safe  information  in  its                                                                    
messaging on a  limited budget. She looked at  slides 27 and                                                                    
28  and  relayed  that ATIA  continued  to  reach  travelers                                                                    
through its  current marketing  channels digital  assets via                                                                    
social media, advertising, and  public relations. She shared                                                                    
that ATIA was also renewing  its Show Up for Alaska campaign                                                                    
encouraging  residents  to get  out  and  explore places  in                                                                    
their own backyard throughout the year.                                                                                         
                                                                                                                                
1:54:27 PM                                                                                                                    
                                                                                                                                
Ms. Leonard returned to a chart  on slide 25 and stated that                                                                    
the circle  of economic life  for Alaska travel  and tourism                                                                    
meant more at  present than ever before.  She expounded that                                                                    
destination marketing  would help Alaska travel  and tourism                                                                    
toward recovery.  The return on investment  with destination                                                                    
marketing really  stood out when  it was gone.  She detailed                                                                    
that pre-pandemic,  Alaska's visitor industry  provided over                                                                    
$4 billion  in economic  activity and  supported one  in ten                                                                    
jobs  in Alaska.  She elaborated  that  when visitors  spent                                                                    
money in a destination, they  contributed to local and state                                                                    
budgets.  She stressed  that Alaska  needed to  be marketing                                                                    
currently  to   travelers  who  were  making   their  travel                                                                    
decisions  in order  to recover  jobs and  generate economic                                                                    
benefits for Alaska communities and the state.                                                                                  
                                                                                                                                
1:55:15 PM                                                                                                                    
                                                                                                                                
Ms. Leonard advanced  to slide 29 and  thanked the committee                                                                    
for its support of the tourism industry.                                                                                        
                                                                                                                                
Representative Josephson  asked if the ATIA  board had taken                                                                    
a position on the emergency declaration debate.                                                                                 
                                                                                                                                
Ms. Leonard  answered that the  ATIA board of  directors had                                                                    
not  taken a  formal position  on the  emergency declaration                                                                    
order.  The   board  supported   the  governor   having  the                                                                    
necessary tools needed in a public health emergency.                                                                            
                                                                                                                                
Representative LeBon referred to  Ms. Leonard's reference to                                                                    
highway  traffic  through   Canada  currently  being  closed                                                                    
through  April. He  asked when  highway  traffic may  reopen                                                                    
through Canada.                                                                                                                 
                                                                                                                                
Ms.  Leonard answered  that  she wished  she  had a  crystal                                                                    
ball. The  organization had advocated  that safe  travel was                                                                    
possible. She elaborated travelers  were looking at being in                                                                    
their own vehicles as an easier  way to be safe to travel up                                                                    
through Alaska.  She had heard anecdotally  it was dependent                                                                    
on  each province  and  Canadian  government officials  were                                                                    
being  conservative  about  opening up  nonessential  travel                                                                    
over  land. She  communicated  her  understanding there  was                                                                    
another 30-day extension through April.                                                                                         
                                                                                                                                
Representative  LeBon referenced  Ms.  Leonard's remarks  on                                                                    
state support  for destination marketing. He  asked how much                                                                    
money was raised  through ATIA members to  promote Alaska as                                                                    
a destination.                                                                                                                  
                                                                                                                                
Ms.  Leonard   replied  that  it   depended  on   the  state                                                                    
investment.   She  detailed   that  ATIA   had  historically                                                                    
partnered  with  the  state and  leveraged  the  funding  by                                                                    
raising   cooperative  marketing   opportunity  sales   from                                                                    
industry. She detailed  that some years, ATIA  had raised $1                                                                    
million  from industry  to leverage  a state  public/private                                                                    
investment or  grant, while other  times ATIA had  raised $2                                                                    
million.  Overall,  the  association received  revenue  from                                                                    
membership  dues   and  convention  in  normal   years.  She                                                                    
reported that  in the past year,  ATIA had not made  any net                                                                    
revenue on  its conventions  for obvious reasons.  She added                                                                    
that  it  was  not  necessary   to  be  an  ATIA  member  to                                                                    
participate  in its  cooperative marketing  programs offered                                                                    
at different  levels depending  on ATIA's  marketing program                                                                    
budget.                                                                                                                         
                                                                                                                                
1:58:53 PM                                                                                                                    
                                                                                                                                
Representative  LeBon  asked  if  there was  still  an  open                                                                    
window  that may  allow for  larger cruise  ships (exceeding                                                                    
100 passengers) to come to Alaska in 2021.                                                                                      
                                                                                                                                
Ms.  Leonard  answered  that she  believed  the  window  was                                                                    
closing  rapidly on  seeing any  large cruise  ships in  the                                                                    
coming summer.                                                                                                                  
                                                                                                                                
Representative  Rasmussen   thanked  Ms.  Leonard   for  her                                                                    
presentation.  She spoke  about  small businesses  servicing                                                                    
the cruise  ship industry.  She asked  Ms. Leonard  to speak                                                                    
about  the relationship  between cruise  ship companies  and                                                                    
smaller businesses and whether  ATIA had members who offered                                                                    
expeditions  on land.  She asked  how the  state could  help                                                                    
those  businesses as  it was  facing another  season without                                                                    
cruise tourism.  She thought it  would be very  difficult to                                                                    
keep  doors  open  for small  companies  reliant  on  cruise                                                                    
passengers.                                                                                                                     
                                                                                                                                
Ms.   Leonard  responded   that  the   majority  of   ATIA's                                                                    
membership  was   made  up  of   small  to   medium  tourism                                                                    
businesses  with 3  to 5  employees  or 7  to 20  employees,                                                                    
respectively. She  elaborated that ATIA had  membership from                                                                    
smaller business  operators in Southeast, the  Interior, and                                                                    
throughout the state.  She believed the state  could step in                                                                    
to  help provide  the  needed cash  and  liquidity for  some                                                                    
businesses  that may  see low  or no  revenue in  the coming                                                                    
summer season.  She suggested that  the state could  step in                                                                    
with  a grant  program  like  it had  the  previous year  to                                                                    
provide gap  resources to enable  businesses to  get through                                                                    
the tough coming summer season.                                                                                                 
                                                                                                                                
2:01:41 PM                                                                                                                    
                                                                                                                                
Representative  Rasmussen   remarked  that  the   state  was                                                                    
struggling with  limited General Fund dollars.  She asked if                                                                    
visitors would  support a slight  increase in parks  fees to                                                                    
help offset  some of the  budget gap.  She did not  know how                                                                    
Alaska  compared  to other  states,  but  she believed  many                                                                    
people went  on vacation knowing  they would spend a  bit of                                                                    
money.  She   recalled  visiting  theme  parks   in  Florida                                                                    
recently where it  had cost $25 to $30 per  day to park. She                                                                    
surmised  that  people  traveled  to  Alaska  to  experience                                                                    
nature. She wondered if a  fee increase would be detrimental                                                                    
to people coming up.                                                                                                            
                                                                                                                                
Ms.  Leonard  could not  answer  the  question without  more                                                                    
detail  on the  amount of  an increase  or how  it would  be                                                                    
implemented.   She   believed   when   fees   were   imposed                                                                    
unexpectedly, visitors expressed  frustration. She explained                                                                    
that it  took time to plan  a trip to Alaska  because it was                                                                    
considered  a  long-haul  destination. She  added  ATIA  was                                                                    
doing everything  possible to make  it easier for  people to                                                                    
travel  to Alaska  by providing  necessary information.  She                                                                    
stated that because of the  loss potentially of a large ship                                                                    
cruise season and the volume  of visitors normally expected,                                                                    
there would be  many businesses looking to gain  any kind of                                                                    
economic activity throughout the rest of the year.                                                                              
                                                                                                                                
2:03:58 PM                                                                                                                    
                                                                                                                                
Representative Rasmussen  remarked that she would  talk with                                                                    
Ms. Leonard more  offline about the idea.  She clarified she                                                                    
was not suggesting  an increase in the  neighborhood of $100                                                                    
for  a  parking  fee.  She   thanked  Ms.  Leonard  for  her                                                                    
comments.                                                                                                                       
                                                                                                                                
Representative  Johnson  recognized  the large  downturn  in                                                                    
tourism dollars  due to  the [absence  of] cruise  ships and                                                                    
the  ALCAN [Alaska-Canadian  Highway]  closure. She  pointed                                                                    
out that  AMHS ridership had gone  down significantly during                                                                    
the past  year. She asked  about a shift in  marketing focus                                                                    
to increase ridership on the state's ferries.                                                                                   
                                                                                                                                
Ms.  Leonard  answered  that  it was  the  reason  ATIA  had                                                                    
shifted its  messaging because people could  reach Alaska by                                                                    
air travel  and do independent  travel in the  coming summer                                                                    
season into the  fall. She detailed that  messaging had been                                                                    
shifted to  highlight experiences like AMHS.  She elaborated                                                                    
that  messaging included  posts  on social  media and  video                                                                    
targeting  destinations in  the Lower  48 that  normally saw                                                                    
visitation. She  agreed AMHS ridership  had not been  at the                                                                    
volume seen  in typical years  and it could not  replace the                                                                    
large  cruise  ship  visitor  volume,  but  ATIA  was  doing                                                                    
everything  possible   to  share   the  story  of   an  AMHS                                                                    
experience  to   hopefully  increase  ridership   and  other                                                                    
independent experiences in Alaska.                                                                                              
                                                                                                                                
Representative   Johnson  thought   some  more   adventurous                                                                    
travelers  may  not  know  the  ferry  system  existed.  She                                                                    
believed there may be a  bit of opportunity to see something                                                                    
positive.                                                                                                                       
                                                                                                                                
2:06:46 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster recognized Representative  Mike Cronk in the                                                                    
audience.                                                                                                                       
                                                                                                                                
Representative  Wool noted  that Representative  Johnson had                                                                    
mentioned  an interesting  concept about  AMHS. He  surmised                                                                    
that  ferry travel  between and  Washington was  exempt from                                                                    
the  passenger  ship  restriction.  He  noted  it  would  be                                                                    
possible  to bring  up hundreds  of passengers  on AMHS  and                                                                    
suggested getting  a bar  on the  ferry from  Bellingham. He                                                                    
noted the ferries  did not serve alcohol and he  may want to                                                                    
fix the problem  if he were on a six-day  trip to Alaska. He                                                                    
referenced  Ms.  Leonard's  statement that  the  window  was                                                                    
closing  for  large cruise  ship  travel  to Alaska  in  the                                                                    
coming summer. He hoped the  window could be wedged open for                                                                    
part of  the summer. He  remarked that travel  was obviously                                                                    
not  closed for  air travel,  and he  understood there  were                                                                    
additional airlines servicing Alaska.  He asked whether ATIA                                                                    
members who  had not been  interested in advertising  in the                                                                    
past  due  to dependable  business  from  cruise travel  had                                                                    
expressed interest  to ATIA  about increasing  marketing. He                                                                    
used a  float plane business  located next to a  cruise ship                                                                    
dock  in  Juneau  as  an example.  He  elaborated  that  the                                                                    
business had a  built-in audience with every  ship. He asked                                                                    
whether  the  businesses  were interested  in  marketing  to                                                                    
other  areas because  cruise ships  may be  on hiatus  for a                                                                    
while. He had  heard from other legislators that  due to the                                                                    
economic crisis the state could  not justify any expense. He                                                                    
countered that it  could be argued that  promoting Alaska to                                                                    
the outside  world during  the critical  time, may  pay back                                                                    
many  times over.  He reiterated  his previous  question and                                                                    
wondered  whether  members  were  interested  in  increasing                                                                    
their contribution to marketing.                                                                                                
                                                                                                                                
2:09:08 PM                                                                                                                    
                                                                                                                                
Ms.  Leonard  responded  that  there  had  been  discussions                                                                    
within the membership  of people shifting gears  in order to                                                                    
make  something  work.  However,  many  businesses  thinking                                                                    
about how to  bring in revenue in the coming  summer may not                                                                    
have  the  extra  resources  to   put  into  marketing.  She                                                                    
explained  it was  one of  the reasons  businesses partnered                                                                    
with ATIA  to rely on  a statewide marketing effort  to help                                                                    
with  limited dollars  to gain  reach and  scale into  other                                                                    
domestic  markets.   She  heard  the  conversation   in  the                                                                    
industry and ATIA membership about  finding any way to adapt                                                                    
and  generate some  economic revenue.  She  added that  some                                                                    
businesses had decided  to close and try to  hang on another                                                                    
summer season.                                                                                                                  
                                                                                                                                
Representative  Wool  felt for  all  of  the businesses.  He                                                                    
stated his understanding  that in the past,  the cruise ship                                                                    
industry within ATIA  felt it did much of  its own marketing                                                                    
and did not  need ATIA marketing. He understood  that it had                                                                    
been  somewhat  of an  issue.  He  stated that  because  the                                                                    
cruise ship industry was currently  hurting, it could not be                                                                    
relied  on to  increase  its marketing  to  come to  Alaska,                                                                    
especially  if   ships  could  not  travel   to  Alaska.  He                                                                    
recognized  that the  state's contribution  toward marketing                                                                    
had declined  drastically, which he  thought may need  to be                                                                    
reevaluated.  He understood  the  desire  to avoid  spending                                                                    
money when times  were tough, but he thought  perhaps it was                                                                    
necessary to spend  a bit of money in order  to fill some of                                                                    
the  gaps. He  hoped to  get  cruise ships  coming back  and                                                                    
considered that  perhaps the resolution  would help  make it                                                                    
happen.                                                                                                                         
                                                                                                                                
2:11:33 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz spoke  about  federal  relief efforts  and                                                                    
asked  if ATIA  members had  vocalized difficulty  accessing                                                                    
the federal funds. He asked  Ms. Leonard how the state could                                                                    
do a better job making the resources accessible.                                                                                
                                                                                                                                
Ms. Leonard  answered that in  the past year there  had been                                                                    
numerous   challenges  for   businesses  accessing   federal                                                                    
stimulus  funds.  She  explained that  many  small  business                                                                    
owners did  not have  an accounting  or financial  person on                                                                    
staff   to   navigate   through  what   could   be   complex                                                                    
applications. She  relayed that the Department  of Commerce,                                                                    
Community  and  Economic  Development  had  stepped  in  the                                                                    
previous year  to help smooth the  Coronavirus grant process                                                                    
for  small  businesses.  She  had  heard  members  recommend                                                                    
building on that  successful program to get  out grants, not                                                                    
loans,  to small  business organizations  as seamlessly  and                                                                    
quickly as possible. She pointed  out that the new ARPA gave                                                                    
consideration  to  the  travel   and  tourism  industry  and                                                                    
businesses and organizations in  hospitality. She noted that                                                                    
the  past the  tourism sector,  which  had been  one of  the                                                                    
hardest hit sectors, had not been highlighted.                                                                                  
                                                                                                                                
2:14:04 PM                                                                                                                    
                                                                                                                                
Representative Josephson  understood that  approximately ten                                                                    
years  back ATIA  had received  around $19  million for  the                                                                    
industry collectively, which he  believed was the high water                                                                    
mark  for  contributions  from  the  state.  He  provided  a                                                                    
scenario where  a similar  amount came  to the  industry via                                                                    
ARPA funds. He  asked whether the industry would  be able to                                                                    
use the funds if they arrived in late May.                                                                                      
                                                                                                                                
Ms. Leonard  answered in the affirmative.  She recalled past                                                                    
grants  of  $16  million  that had  been  leveraged  by  the                                                                    
industry.  She underscored  that the  industry could  employ                                                                    
the funds to help market Alaska.                                                                                                
                                                                                                                                
Representative  Thompson  referenced  Ms.  Leonard's  remark                                                                    
that  the state  had put  about $16  million into  marketing                                                                    
several years back.  He recalled at the time  the amount had                                                                    
been compared to Hawaii, which  was putting $50 million into                                                                    
marketing for a destination. He  asked if the difference was                                                                    
similar or had increased.                                                                                                       
                                                                                                                                
Ms.  Leonard answered  that  she did  not  know the  precise                                                                    
difference  at  present.  In discussions  with  other  state                                                                    
tourism director  colleagues, as recently as  2020 there had                                                                    
been Western states  spending $15 million to  $17 million on                                                                    
destination marketing to be open  for business. Alaska had a                                                                    
different environment  and had  necessary health  and safety                                                                    
in place; however,  it was ready and would  be competing for                                                                    
travelers. She  noted there were  destinations in  the Lower                                                                    
48 that were already marketing and opening for business.                                                                        
                                                                                                                                
Co-Chair Foster  thanked Ms.  Leonard for  her presentation.                                                                    
He passed the gavel to Co-Chair Merrick.                                                                                        
                                                                                                                                
2:16:43 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:17:30 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 128                                                                                                            
                                                                                                                                
     "An Act relating to charitable gaming online ticket                                                                        
     sales and activities."                                                                                                     
                                                                                                                                
2:17:36 PM                                                                                                                    
                                                                                                                                
Co-Chair  Merrick   stated  the  committee   would  consider                                                                    
amendments  to  HB  128. She  listed  individuals  available                                                                    
online for questions.                                                                                                           
                                                                                                                                
Representative  Rasmussen MOVED  to ADOPT  Amendment 1,  32-                                                                    
LS0649\A.2 (Radford, 3/25/21) (copy on file):                                                                                   
                                                                                                                                
     Page 1, line 1, following "activities":                                                                                    
     Insert"; and providing for an effective date"                                                                              
                                                                                                                                
     Page 2, line 27, through page 3, line 1:                                                                                   
     Delete all material and insert:                                                                                            
     "age and location verification requirements;"                                                                              
                                                                                                                                
     Page 3, lines 10 - 11:                                                                                                     
     Delete  "permittee, an  operator, or  the holders  of a                                                                    
     multiple-beneficiary  permit  operating  under  (d)  of                                                                    
     this section"                                                                                                              
     Insert "purchaser"                                                                                                         
                                                                                                                                
     Page 3, line 11:                                                                                                           
     Delete "verify"                                                                                                            
     Insert "certify"                                                                                                           
                                                                                                                                
     Page 3, lines 13 - 16:                                                                                                     
     Delete all material and insert:                                                                                            
     "is  of  legal purchasing  age  and  is not  physically                                                                    
     present  in an  area that  has adopted  a local  option                                                                    
     prohibiting charitable gaming.                                                                                             
     (f)  A permittee,  operator, or  holder of  a multiple-                                                                    
     beneficiary  permit  conducting   a  charitable  gaming                                                                    
     activity under  (d) of this  section shall  conduct the                                                                    
     charitable gaming activity in  the state and determine,                                                                    
     in  the  state, the  winner  of  the charitable  gaming                                                                    
     activity.                                                                                                                  
     * Sec.  3. This Act  takes effect immediately  under AS                                                                    
     0l.10.070(c)."                                                                                                             
                                                                                                                                
Representative Wool OBJECTED for discussion.                                                                                    
                                                                                                                                
Representative Rasmussen explained the amendment with a                                                                         
prepared statement:                                                                                                             
                                                                                                                                
     Last week  in committee  there were  a few  issues that                                                                    
     were  brought up  by members  during our  discussion on                                                                    
     House  Bill 128.  After working  with  the sponsor  and                                                                    
     Legislative Legal  we believe this  amendment addresses                                                                    
     most, if not all, of  the issues raised. This amendment                                                                    
     eliminates  the requirement  for  a purchaser  to be  a                                                                    
     resident  of the  State of  Alaska.  It eliminates  the                                                                    
     requirement  that the  raffle licensee  verify the  age                                                                    
     and  location  of  the  purchaser.  It  eliminates  the                                                                    
     prohibition  of  sales  to people  located  outside  of                                                                    
     state  if the  organization  wishes to  open  it up  to                                                                    
     outside sales.  For internet sales, the  purchaser, not                                                                    
     the  licensee,  will  verify their  age  and  that  the                                                                    
     individual  resides  in a  state  where  purchase of  a                                                                    
     raffle ticket is not prohibited.  It clarifies that any                                                                    
     raffle covered  in this bill  occurs in this  state and                                                                    
     the  winner  is  determined  in   the  state.  It  also                                                                    
     includes an immediate effective date.                                                                                      
                                                                                                                                
Co-Chair Merrick asked to hear from the sponsor.                                                                                
                                                                                                                                
REPRESENTATIVE   ZACK   FIELDS,   SPONSOR,   supported   the                                                                    
amendment and  appreciated the opportunity to  work with the                                                                    
amendment sponsor.                                                                                                              
                                                                                                                                
Representative Wool WITHDREW his OBJECTION.                                                                                     
                                                                                                                                
There being NO further OBJECTION, Amendment 1 was ADOPTED.                                                                      
                                                                                                                                
2:19:29 PM                                                                                                                    
                                                                                                                                
Representative  LeBon  MOVED  to   ADOPT  Amendment  2,  32-                                                                    
LS0649\A.4 (Radford, 3/26/21) (copy on file):                                                                                   
                                                                                                                                
     Page 3, line 8, following "permittee""                                                                                     
     Insert",  an operator,  or the  holder  of a  multiple-                                                                    
     beneficiary permit"                                                                                                        
                                                                                                                                
     Page 3, line 9, following "online":                                                                                        
     Insert "or by other electronic or digital means"                                                                           
                                                                                                                                
Vice-Chair Ortiz OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative LeBon  explained that he had  an amendment to                                                                    
Amendment 2 that  he would like to adopt  before speaking to                                                                    
Amendment 2. He MOVED to ADOPT Amendment 1 to Amendment 2:                                                                      
                                                                                                                                
     Page 1, line 2 of the amendment, following "permit":                                                                       
     Insert "conducting  a raffle  or lottery,  dog mushers'                                                                    
     contest,  derby,  or  type of  classic  defined  in  AS                                                                    
     05.15.690"                                                                                                                 
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative  LeBon shared  that he  intended to  withdraw                                                                    
the amendment but wanted to put  a few things on the record.                                                                    
He  explained  Amendment  2  as   amended  with  a  prepared                                                                    
statement:                                                                                                                      
                                                                                                                                
     Amendment 2  as amended clarifies the  language when it                                                                    
     comes to  how a permittee,  an operator, or  the holder                                                                    
     of  a   multiple  beneficiary  permit  may   conduct  a                                                                    
     charitable raffle  or lottery, a dog  mushers' contest,                                                                    
     derby, or classic.  The new language on page  3, line 8                                                                    
     would read "a permittee, an  operator, or the holder of                                                                    
     a  multiple-beneficiary permit  conducting a  raffle or                                                                    
     lottery,  dog  mushers'  contest,  derby,  or  type  of                                                                    
     classic  defined  in  AS  05.15.690  may  draw  winning                                                                    
     tickets  online  or  by  other  electronic  or  digital                                                                    
     means."  The  language  would  allow,  in  addition  to                                                                    
     permittees,   operators,   and    holders   of   multi-                                                                    
     beneficiary permits, to draw  winning tickets online or                                                                    
     utilize  electronic or  digital  means  on a  computer.                                                                    
     Utilization of electronic tools  for drawing of winning                                                                    
     tickets  brings increased  efficiencies  such as  those                                                                    
     noted  by stakeholders  during  invited testimony.  The                                                                    
     department  has interpreted  the definition  of "raffle                                                                    
     and lottery" in AS  05.15.690 Section 41 very strictly.                                                                    
     Such  that drawing  winning tickets  by lot  only means                                                                    
     drawing physical  tickets in  a barrel draw.  My desire                                                                    
     is to  make clear to  the department that we  intend to                                                                    
     allow drawings to be conducted electronically.                                                                             
                                                                                                                                
     This  amendment came  to me  from the  suggestion of  a                                                                    
     letter  from  the  Public  Employees  Local  71,  which                                                                    
     utilizes a charitable gaming  operator who also happens                                                                    
     to  be  one   of  my  constituents,  to   help  fund  a                                                                    
     scholarship  and wellness  fund for  members and  their                                                                    
     families. As the bill is  written now, only permittees,                                                                    
     not operators or  holders of multi-beneficiary permits,                                                                    
     may  draw  tickets  online.  Many  nonprofits  rely  on                                                                    
     operators to raise funds for  them, reducing the effort                                                                    
     of  organizing massive  fundraising events  themselves.                                                                    
     It  is  not my  intent  with  this language  to  enable                                                                    
     electronic  pull  tabs  or electronic  bingo,  which  I                                                                    
     believe is only made more  explicit by the amendment to                                                                    
     the  amendment specifying  this would  only apply  to a                                                                    
     raffle  or lottery,  dog  mushers'  contest, derby,  or                                                                    
     classic.                                                                                                                   
                                                                                                                                
     I believe  the drafter  Claire Radford  is on  the line                                                                    
     and I believe she can  clarify some of these points and                                                                    
     I  would  also  like  to   get  an  assessment  by  the                                                                    
     Department  of Revenue.  Before we  go to  the drafter,                                                                    
     there has  been concern expressed by  some stakeholders                                                                    
     who are  not comfortable with  the amount of  time that                                                                    
     they  have  had  to  review   this  amendment.  I  have                                                                    
     communicated  with  the  sponsor  who  has  assured  my                                                                    
     office that  they are willing  to work with me  on this                                                                    
     amendment  on the  House floor.  So, in  good faith,  I                                                                    
     intend to withdraw it so it can be offered on the                                                                          
     floor once those groups have had a chance to get                                                                           
     further review.                                                                                                            
                                                                                                                                
Representative LeBon WITHDREW Amendment 2 as amended.                                                                           
                                                                                                                                
2:23:46 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:25:26 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Merrick noted the amendment process had concluded.                                                                     
                                                                                                                                
Representative Wool  had questions about the  amendment that                                                                    
had  been withdrawn  related to  online  raffle and  lottery                                                                    
sales. He  asked how  to combine the  use of  online tickets                                                                    
and  paper tickets  to draw  a winning  ticket. He  asked if                                                                    
online  tickets would  be converted  to  paper. He  surmised                                                                    
that the idea of electronic  tickets was temporarily off the                                                                    
table, but the issue could  be addressed on the House floor.                                                                    
He  thought the  House Finance  Committee setting  may be  a                                                                    
better  place to  figure the  issue out.  He reiterated  his                                                                    
prior questions and asked how  the winner would be drawn. He                                                                    
asked  about a  scenario where  the  winner was  drawn at  a                                                                    
banquet. He asked  if the digital ones would  be included on                                                                    
paper in  the drawing.  He asked  about scenarios  where the                                                                    
tickets were  sold out-of-state. He  asked if the  number of                                                                    
tickets to  be sold was made  clear before the start  of the                                                                    
lottery. He  asked for verification  that tickets  could not                                                                    
be  added  to the  original  number  after the  lottery  had                                                                    
begun.                                                                                                                          
                                                                                                                                
2:27:18 PM                                                                                                                    
                                                                                                                                
Representative Fields believed the  statute was clear that a                                                                    
drawing had to be fair and  transparent with a record of the                                                                    
tickets in  an in-person  only or  a combined  in-person and                                                                    
online  lottery.  He  explained  that the  operator  of  the                                                                    
raffle  would  have  to consolidate  the  paper  and  online                                                                    
tickets in  one way  or another.  He believed  the committee                                                                    
had  heard   in  invited   testimony  that   permittees  and                                                                    
charitable  organizations believed  online  sales were  more                                                                    
easily traceable.  He stated his  understanding that  HB 128                                                                    
already allowed  for the drawing  of a ticket from  a barrel                                                                    
in   an  online   manner.  He   was  happy   to  work   with                                                                    
Representative LeBon  on the  issue to  ensure there  was no                                                                    
ambiguity.  He deferred  to  Legislative  Legal for  further                                                                    
detail.                                                                                                                         
                                                                                                                                
Representative Wool  understood that a digital  ticket could                                                                    
be  pulled from  a digital  barrel. He  wondered what  would                                                                    
happen  if paper  tickets were  also sold.  He asked  if the                                                                    
paper tickets would  be entered into the  digital barrel. He                                                                    
remarked  that sometimes  people  wanted  a ceremonial  draw                                                                    
instead of a random number generator.                                                                                           
                                                                                                                                
2:29:09 PM                                                                                                                    
                                                                                                                                
Representative Fields believed the  statute was pretty clear                                                                    
that if  250 tickets were sold  online and 250 were  sold in                                                                    
person with  an in-person  drawing, there  would need  to be                                                                    
500 tickets in the barrel to have an equal chance.                                                                              
                                                                                                                                
Representative Wool  asked for verification that  the number                                                                    
of tickets  in a raffle  had to be  set at the  beginning of                                                                    
the process.                                                                                                                    
                                                                                                                                
Representative   Fields   deferred  to   Legislative   Legal                                                                    
regarding the number of tickets that could be sold.                                                                             
                                                                                                                                
2:29:51 PM                                                                                                                    
                                                                                                                                
CLAIRE  RADFORD,  LEGISLATIVE   COUNSEL,  LEGISLATIVE  LEGAL                                                                    
SERVICES (via  teleconference), replied  that she  could get                                                                    
back to the committee with an answer.                                                                                           
                                                                                                                                
Co-Chair Merrick  noted the committee was  having difficulty                                                                    
hearing Ms. Radford. She asked to have the answer repeated.                                                                     
                                                                                                                                
Ms. Radford would look into the question and follow up.                                                                         
                                                                                                                                
COLLEEN  GLOVER,  DIRECTOR,   TAX  DIVISION,  DEPARTMENT  OF                                                                    
REVENUE  (via  teleconference),   answered  that  she  could                                                                    
follow  up on  the  question.  She knew  tickets  had to  be                                                                    
sequentially numbered.                                                                                                          
                                                                                                                                
Representative  Wool  wanted to  know  there  were a  finite                                                                    
number of tickets being sold in a raffle.                                                                                       
                                                                                                                                
2:32:23 PM                                                                                                                    
                                                                                                                                
Ms. Glover replied  that she did not see  the issue included                                                                    
in regulation.  She noted the DOR  charitable gaming manager                                                                    
was not  currently available due  to the state  holiday. She                                                                    
would follow up with an answer.                                                                                                 
                                                                                                                                
Representative  Rasmussen  remarked  that it  did  not  seem                                                                    
appropriate   for  the   legislature   to  micromanage   how                                                                    
operators  chose  to  manage  their  raffles  if  they  were                                                                    
operating  within  the  legal   bounds.  She  had  purchased                                                                    
numerous  raffle tickets,  which always  seemed to  disclose                                                                    
the number  of raffle tickets and  the time and date  of the                                                                    
drawing.  She believed  adding the  digital component  would                                                                    
eliminate  some of  the data  entry and  administrative work                                                                    
and provided  for more accurate online  records. She thought                                                                    
that  paper   could  get  lost  much   easier  than  digital                                                                    
footprints  and she  believed it  added to  transparency and                                                                    
provided more flexibility to raffle operators.                                                                                  
                                                                                                                                
2:33:38 PM                                                                                                                    
                                                                                                                                
Representative LeBon  stated that the language  in Amendment                                                                    
2 attempted  to broaden the  scope to include  operators and                                                                    
multi-beneficiary  permittee   holders.  He  asked   if  the                                                                    
amendment  would enable  electronic bingo,  pull tabs,  slot                                                                    
machines, or other class III gaming.                                                                                            
                                                                                                                                
Representative Fields  answered that it was  the concern the                                                                    
sponsor had heard from stakeholders  that the language could                                                                    
be  misconstrued. He  understood it  was not  the intent  of                                                                    
Amendment  2. He  wanted to  be certain  the plain  language                                                                    
would  only  be interpreted  one  way,  consistent with  the                                                                    
sponsor's intent.                                                                                                               
                                                                                                                                
Representative LeBon  asked if allowing a  digital ticket to                                                                    
be drawn by digital means would   create a conflict with the                                                                    
definition of raffle  and lottery by the  drawing for prizes                                                                    
by lot and as was defined in state statute.                                                                                     
                                                                                                                                
Representative  Fields replied  that  there was  a bit  that                                                                    
hinged  on the  definition of  "by lot"  and whether  it was                                                                    
limited  to  a   drawing  from  a  barrel   in  physical  or                                                                    
electronic  means. He  believed  the  legislature needed  to                                                                    
ensure  they  were  narrowly referring  to  drawing  from  a                                                                    
barrel  and  not permitting  online  pull  tabs, slots,  and                                                                    
sports   gaming,  all   of   which   raised  problems   with                                                                    
stakeholder  conflicts and  legal problems  potentially with                                                                    
federal law. He had not  heard concerns from any stakeholder                                                                    
about  electronically  drawing from  a  barrel,  but he  had                                                                    
heard  numerous concerns  about language  being misconstrued                                                                    
to  permit  other  activities,   which  were  likely  better                                                                    
addressed  in comprehensive  legislation. He  disclosed that                                                                    
Local  71 was  one of  his  wife's employers.  He noted  the                                                                    
union had  weighed in with  the proposal, albeit he  had not                                                                    
supported it.                                                                                                                   
                                                                                                                                
2:35:55 PM                                                                                                                    
                                                                                                                                
Representative LeBon asked if  the amendment would result in                                                                    
a significant  expansion of gaming  revenue. He asked  if it                                                                    
was a net plus for the industry.                                                                                                
                                                                                                                                
Representative  Fields   answered  that   it  was   not  his                                                                    
intention for the bill to  expand the scope of online gaming                                                                    
beyond online raffle  sales. He stated that  if an amendment                                                                    
were misconstrued to allow such  a broad expansion of online                                                                    
gaming,  whether it  would  lead  to significant  additional                                                                    
revenue was hard to know. He  would not want to go down that                                                                    
road without understanding all of the implications.                                                                             
                                                                                                                                
2:36:35 PM                                                                                                                    
                                                                                                                                
Representative  Josephson asked  for  verification that  the                                                                    
bill made no changes to pull tab laws.                                                                                          
                                                                                                                                
Representative Fields replied in the affirmative.                                                                               
                                                                                                                                
Representative Josephson referred  to Representative Fields'                                                                    
reference to  the definition  of "by  lot." He  relayed that                                                                    
the  committee  had  received  an  email  the  past  weekend                                                                    
mentioning  other   reforms.  For   example,  there   was  a                                                                    
requirement that an  operator or permittee have  a lease for                                                                    
bingo  or pull  tab  locations. The  email  had pointed  out                                                                    
there  were instances  where the  requirement was  silly. He                                                                    
asked if it was further  reform the bill sponsor was looking                                                                    
to engage in or leave for another day.                                                                                          
                                                                                                                                
Representative Fields  replied that since the  bill had been                                                                    
introduced,  he had  heard a  number  of good  ideas in  the                                                                    
realm  of charitable  gaming. He  communicated  his hope  to                                                                    
address  broader  reforms  in separate  legislation  because                                                                    
there were  pending events that  groups were trying  to plan                                                                    
in the  midst of a  pandemic that were contingent  on online                                                                    
raffle sales. He would hate for  the bill to not pass in the                                                                    
current year  and render  numerous important  events planned                                                                    
to  take place  over  the  next six  months  unable to  move                                                                    
forward.                                                                                                                        
                                                                                                                                
Representative  Rasmussen  elaborated legislators  were  all                                                                    
aware that DOR  was actively working with  a consultant that                                                                    
would  take  a  deep  dive into  all  gaming.  She  believed                                                                    
whether bingo  and pull  tab operators  would be  allowed to                                                                    
operate  online  was  something the  legislature  needed  to                                                                    
discuss after it received a  report from the consultant. She                                                                    
agreed  that  it was  prudent  to  provide the  ability  for                                                                    
raffles  and  events  to  move  forward.  She  believed  the                                                                    
legislature  would   have  substantial   conversation  about                                                                    
gaming in  the next year.  She agreed with the  bill sponsor                                                                    
on the need to keep the bill topic tight.                                                                                       
                                                                                                                                
Representative  Wool supported  the bill,  the concept,  and                                                                    
the nonprofits wanting  to sell tickets. He  did not believe                                                                    
the  circumstances   were  as   dire  at  present   -  bars,                                                                    
restaurants, and supermarkets were  open and people could be                                                                    
out  in public  and do  much  of the  same activities  where                                                                    
raffle tickets  had been  sold in the  past. He  returned to                                                                    
his previous question and remarked  that the House floor was                                                                    
not  a place  to  fix legislation.  He  provided a  scenario                                                                    
where a  raffle ticket was $100  with a 500 or  1,000 ticket                                                                    
cap. He stated that the  concept extended to the $5 tickets.                                                                    
He wanted  to ensure that once  the number of tickets  for a                                                                    
raffle had been  decided and announced, it  was not possible                                                                    
to add  more tickets on  at a later  time. He was  trying to                                                                    
determine whether the rule was in regulation or statute.                                                                        
                                                                                                                                
2:41:17 PM                                                                                                                    
                                                                                                                                
Representative Fields deferred to his staff.                                                                                    
                                                                                                                                
TRISTAN WALSH,  STAFF, REPRESENTATIVE ZACK  FIELDS, answered                                                                    
that 15  AAC 160.670  was one  of the  regulations regarding                                                                    
the  printing  and record  keeping  of  raffles tickets.  He                                                                    
reported that  the sponsor's office had  heard from numerous                                                                    
stakeholders that looking at a  mixed barrel operation, they                                                                    
would  continue   to  list  things   and  follow   laws  and                                                                    
regulations regarding  the maximum number of  tickets in the                                                                    
raffle.  He detailed  that a  software  platform could  help                                                                    
operators track sales  and deduct tickets as  they went. For                                                                    
example, if  someone was  selling tickets  at Safeway  on an                                                                    
iPad,  it  was  possible  to  track  tickets  sold  at  each                                                                    
location to  ensure there  was no issue  with the  number of                                                                    
tickets sold. In regard to  the drawing of the ticket, there                                                                    
were software  programs and services  that allowed  a ticket                                                                    
to  be drawn  electronically.  Additionally, operators  also                                                                    
had the option of making a  paper copy of digital tickets to                                                                    
draw  the drum.  He added  that the  bill retained,  with an                                                                    
amendment  from  the  committee   member  from  district  20                                                                    
[district  22],  the  instruction   for  the  department  to                                                                    
develop  regulations to  implement and  contemplate some  of                                                                    
the issues that local organizations may encounter.                                                                              
                                                                                                                                
2:43:11 PM                                                                                                                    
                                                                                                                                
Representative Wool asked if the  statute specified that the                                                                    
number of tickets  was set out at the beginning  of a raffle                                                                    
as a finite number.                                                                                                             
                                                                                                                                
Mr. Walsh  replied that he  would have  to follow up  on the                                                                    
question.                                                                                                                       
                                                                                                                                
Representative  Carpenter stated  the  issue sounded  fairly                                                                    
benign allowing nonprofits to  raise money more effectively.                                                                    
He asked  how the  additional funds were  used, specifically                                                                    
related  to lobbying  and  political  causes. He  referenced                                                                    
conversations about  dark money. He  wanted to be  clear the                                                                    
bill was  about nonpolitical related fundraising  that would                                                                    
not increase  the amount of  funds being used  for political                                                                    
campaigns.  He was  curious if  it  was an  effect the  bill                                                                    
would have.                                                                                                                     
                                                                                                                                
2:44:43 PM                                                                                                                    
                                                                                                                                
Representative  Fields answered  not  to  his knowledge.  He                                                                    
relayed there  were just under  1000 permittees  affected by                                                                    
the bill.  He was not  familiar with all of  the permittees.                                                                    
He had engaged  with the derbies, classics, and  many of the                                                                    
sportsman  groups conducting  rallies. His  office had  also                                                                    
coordinated with other  stakeholders currently not affected,                                                                    
basically  to ensure  they  were not  affected.  He was  not                                                                    
aware of a circumstance where  the bill would get around any                                                                    
of Alaska's  campaign laws.  He was  not aware  of political                                                                    
groups   that   used   anything   allowed   by   the   bill.                                                                    
Additionally, nothing  in the bill would  enable a nonprofit                                                                    
to get around  Alaska's dark money laws,  which would remain                                                                    
in place.                                                                                                                       
                                                                                                                                
Representative Johnson asked if  some [raffles] would be in-                                                                    
person and some would be online.                                                                                                
                                                                                                                                
Representative  Fields  answered   in  the  affirmative.  He                                                                    
elaborated  that his  office had  heard that  permittees had                                                                    
been  doing the  combined sales  during the  pandemic, which                                                                    
had been valuable.                                                                                                              
                                                                                                                                
Representative  Johnson believed  selling tickets  in-person                                                                    
provided a  connection to a  real person instead  of online.                                                                    
She  hoped  the  bill  would primarily  benefit  people  and                                                                    
organizations  that   ticket  purchasers  cared   about  and                                                                    
appreciated. She  thought requiring a certain  percentage of                                                                    
the tickets  to be sold  in-person may connect the  sales to                                                                    
reality. She  stated that random number  generators were not                                                                    
all created  the same.  She elaborated  that there  was much                                                                    
dabbling and  different kinds  of security  when it  came to                                                                    
random numbers.  She understood the  topic was  not included                                                                    
in the bill, but she believed  it would have to be addressed                                                                    
at some point to make it fair and equitable.                                                                                    
                                                                                                                                
Representative  Fields responded  that he  believed concepts                                                                    
highlighted by  Representative Johnson  were good  things to                                                                    
address  in  regulation  to   ensure  opportunities  to  win                                                                    
remained as equitable  as they were in  statute for physical                                                                    
tickets.  For example,  the Kenai  River Sportfish  Alliance                                                                    
had  sold just  over  half  its tickets  in  person and  the                                                                    
remainder   online  during   the   pandemic.  Overall,   the                                                                    
organization had raised more money.  He had heard from other                                                                    
operators, such as  the downtown duck race in  Ship Creek in                                                                    
his  district.  He  elaborated   that  the  operators  would                                                                    
continue to  sell online and in  downtown establishments. He                                                                    
hoped there  would be  great tourist  seasons in  the future                                                                    
and  that tourists  would buy  tickets in  local stores.  He                                                                    
believed  the in-person  connection  was  essential for  any                                                                    
functional  event.  He provided  the  Nenana  or Bethel  Ice                                                                    
Classic  as examples  and did  not foresee  the events  ever                                                                    
discontinuing the sale  of tickets in person  given the size                                                                    
of the community and the nature of the local event.                                                                             
                                                                                                                                
Representative Fields addressed the  benefit of online sales                                                                    
with an  example of a  person in downtown Anchorage  who was                                                                    
traveling outside  who wanted to  purchase a  raffle ticket.                                                                    
In the  case of some  of the conservation groups,  they sold                                                                    
high value  raffle tickets to  nonresidents and  the tickets                                                                    
had ability to raise  substantial money for conservation and                                                                    
natural resources.  He believed  it was a  win even  if most                                                                    
tickets were still purchased in person by Alaska residents.                                                                     
                                                                                                                                
2:49:00 PM                                                                                                                    
                                                                                                                                
Representative  Wool  shared   that  whenever  he  travelled                                                                    
outside of  Alaska, he typically purchased  a lottery ticket                                                                    
for  fun. He  did  not  believe he  could  purchase a  state                                                                    
lottery ticket online  in Alaska because there  was no state                                                                    
lottery.  He asked  if he  was  correct. He  asked if  other                                                                    
states allowed online sales to other states.                                                                                    
                                                                                                                                
Representative  Fields answered  that it  was a  complicated                                                                    
legal  issue. He  explained  that  lotteries were  different                                                                    
from raffles, which  was the reason for the  narrow scope of                                                                    
the bill. He elaborated that he  was not trying to permit an                                                                    
online lottery  conducted in Alaska that  would allow people                                                                    
in  multiple states  to participate.  He  noted the  concept                                                                    
would be much more complicated  to pursue. He concluded that                                                                    
the idea was far beyond the scope of the bill.                                                                                  
                                                                                                                                
Representative  Wool  shared  that  he had  just  bought  an                                                                    
online  ticket on  the Permanent  Fund Dividend  website for                                                                    
the  [Senator]   Click  Bishop  lottery   [Alaska  Education                                                                    
Lottery].  He believed  it was  an  online-only lottery.  He                                                                    
pointed out there  were online lottery tickets  of a limited                                                                    
style. He  remarked there  was not  a limited  ticket number                                                                    
because the goal was to sell  as many as possible - the more                                                                    
tickets sold,  the larger the  pot. He did not  know whether                                                                    
the bill covered online lottery tickets.                                                                                        
                                                                                                                                
Representative  Fields replied  that he  did not  believe it                                                                    
did. He deferred to his staff.                                                                                                  
                                                                                                                                
Mr.  Walsh answered  that the  Alaska Education  Lottery was                                                                    
established under  a different title in  statute; therefore,                                                                    
it was not  necessarily governed by the changes  made in the                                                                    
bill. He  deferred to Legislative  Legal for  any additional                                                                    
input.                                                                                                                          
                                                                                                                                
Ms. Radford agreed. She confirmed  that the Alaska Education                                                                    
Lottery had been established in  a different statute and was                                                                    
not covered under the bill.                                                                                                     
                                                                                                                                
2:51:34 PM                                                                                                                    
                                                                                                                                
Representative  Josephson  noted  that the  new  subsection,                                                                    
Section  2, referred  to lottery  on  line 7.  He asked  for                                                                    
detail.                                                                                                                         
                                                                                                                                
Representative Fields  explained that the  language referred                                                                    
to the  set of events with  permittees traditionally thought                                                                    
of as derbies, classics,  and charitable gaming classics, as                                                                    
opposed to  a lottery seen  in the  Lower 48, some  of which                                                                    
were multistate.  He deferred to  Legislative Legal  for the                                                                    
legal definition.                                                                                                               
                                                                                                                                
Ms. Radford  answered that raffle  and lottery  were defined                                                                    
as one and  the same under AS 05.15.690.  She explained that                                                                    
statute pertained  to the selling  of rights  to participate                                                                    
and awarding of prizes in a  game of chance conducted by the                                                                    
drawing of prizes by lot.                                                                                                       
                                                                                                                                
2:52:45 PM                                                                                                                    
                                                                                                                                
Representative Rasmussen  stated her understanding  that the                                                                    
Permanent  Fund  lottery  was closed  to  nonresidents.  She                                                                    
thought  a  person could  only  donate  a portion  of  their                                                                    
Permanent Fund Dividend (PFD) [to enter the lottery].                                                                           
                                                                                                                                
Ms. Radford agreed.  She confirmed that the  raffle was only                                                                    
through the Permanent Fund.                                                                                                     
                                                                                                                                
Representative   Rasmussen  asked   for  verification   that                                                                    
someone could not go online and  pay $100 to purchase a spot                                                                    
in  the  lottery.  She  stated  her  understanding  that  an                                                                    
entrant  had to  be an  Alaskan resident  and had  to use  a                                                                    
portion of their PFD to enter.                                                                                                  
                                                                                                                                
Ms. Radford  agreed. She confirmed  that a person  needed to                                                                    
be in-state and using their PFD to purchase a spot.                                                                             
                                                                                                                                
Mr. Walsh  responded to earlier questions  by Representative                                                                    
Josephson  and Representative  Wool. He  and explained  that                                                                    
the amendment by the member  from District 22 added language                                                                    
that  was protective  for the  state's interest  as well  as                                                                    
those operating a  raffle or lottery under  AS 5.15.690. The                                                                    
amendment  clarified that  charitable gaming  activity would                                                                    
take place in  the state and the winner  would be determined                                                                    
in the  state. The  guidance the  bill sponsor  had received                                                                    
from   legal  experts   on   behalf   of  stakeholders   had                                                                    
communicated the amendment language  would allow raffles and                                                                    
lotteries to  be conducted with  as much safety  as possible                                                                    
regarding interpretation.                                                                                                       
                                                                                                                                
2:54:41 PM                                                                                                                    
                                                                                                                                
Representative    Carpenter     spoke    about    unintended                                                                    
consequences. He  looked at support  within the  bill packet                                                                    
from   the  Safari   Club  and   Kenai  River   Sportfishing                                                                    
Association. He  remarked that  both organizations  did good                                                                    
things within  the state.  He shared  that he  was a  fan of                                                                    
hunting and fishing.  He stated that the  committee had just                                                                    
amended the  bill to  allow raffle  tickets to  be purchased                                                                    
out-of-state.  He elaborated  that the  Safari Club  mission                                                                    
was  advocacy and  its website  specified it  would advocate                                                                    
for  specific  legislation.  He remarked  that  the  state's                                                                    
campaign  finance   laws  would   not  be  changed   by  the                                                                    
legislation; however, he was  concerned about the unintended                                                                    
consequence  of advocacy  for local  and state  laws through                                                                    
the purchase of raffle tickets  by people outside Alaska. He                                                                    
expounded  that without  the  amendment  the dollars  raised                                                                    
through  raffles  would  be by  Alaskans  for  Alaskans.  He                                                                    
highlighted  that [with  the  amendment]  larger amounts  of                                                                    
money could  potentially be coming  in from  out-of-state to                                                                    
local organizations  dealing with  local issues.  He thought                                                                    
it warranted further consideration.                                                                                             
                                                                                                                                
Representative Fields  answered that  prior to  the pandemic                                                                    
the organizations sold raffle  tickets to residents of other                                                                    
states. He  gave an example  of a person  saving up to  do a                                                                    
big  Kodiak bear  hunt or  something  similar. He  explained                                                                    
that  the  pandemic  had hit,  and  the  administration  had                                                                    
issued temporary  guidance on online sales.  He relayed that                                                                    
when he  had heard from business  and nonprofit stakeholders                                                                    
that  wanted  to  continue  online  sales,  his  office  had                                                                    
drafted the bill to align  closely with the administration's                                                                    
temporary guidance. He explained  that after the drafting of                                                                    
the  bill, his  office had  heard from  sporting groups  and                                                                    
others that  previous to the  pandemic they had  sold raffle                                                                    
tickets  outside Alaska.  The  origin of  the amendment  was                                                                    
meant  to  continue a  preexisting  ability  to sell  raffle                                                                    
tickets  outside  Alaska  online.   He  clarified  that  the                                                                    
amendment protected an  existing power and did  not create a                                                                    
new one.                                                                                                                        
                                                                                                                                
2:57:34 PM                                                                                                                    
                                                                                                                                
Representative  LeBon   referenced  the  phrase   "may  draw                                                                    
winning  tickets online"  currently in  the legislation.  He                                                                    
asked if  it allowed for  a random number generator  for use                                                                    
of drawing the "winning ticket."                                                                                                
                                                                                                                                
Representative Fields deferred to Legislative Legal.                                                                            
                                                                                                                                
Ms. Radford  answered that the  language was  ambiguous, and                                                                    
it was unclear  how the department would look at  it; it was                                                                    
possible the department would  interpret the language fairly                                                                    
broadly to allow for a random number generator.                                                                                 
                                                                                                                                
Representative LeBon  asked whether  a "ghost  ticket" would                                                                    
be  printed  to put  into  the  physical barrel  if  someone                                                                    
purchased a ticket online.                                                                                                      
                                                                                                                                
Representative Fields  agreed that it would  be necessary to                                                                    
print  online  tickets  to  include  a  barrel  because  the                                                                    
statute  was  predicated on  the  equal  chances of  winning                                                                    
concept.                                                                                                                        
                                                                                                                                
2:59:12 PM                                                                                                                    
                                                                                                                                
Representative  Rasmussen   referenced  the   discussion  by                                                                    
Representative   Carpenter.   She   thought  they   may   be                                                                    
overstating impacts.  She did not  believe there would  be a                                                                    
coordinated  effort by  people  who  strongly oppose  Safari                                                                    
Club's mission  statement to purchase  a $20 to  $100 raffle                                                                    
ticket  with the  intention of  trying to  sway or  move the                                                                    
issues advocated by a group.  She thought it was more likely                                                                    
that people outside  of the state would  support the mission                                                                    
and may purchase a raffle ticket  to support the cause.  She                                                                    
noted   that  elected   officials   took  donations   during                                                                    
campaigns,  but no  donation from  any  group or  individual                                                                    
determined how elected officials  acted. She elaborated that                                                                    
people  donated to  elected officials  because of  what they                                                                    
stood  for just  like  people purchasing  raffle tickets  in                                                                    
support of the  mission of a group. She shared  that she had                                                                    
family members out-of-state who  loved fishing in Alaska and                                                                    
would be happy to support the cause online.                                                                                     
                                                                                                                                
Representative  Carpenter stated  it  was a  fair point.  He                                                                    
clarified that he was not  speaking positively or negatively                                                                    
about the  two organizations  he had referenced  earlier. He                                                                    
believed the  amendment enabled  outside influence  to occur                                                                    
more easily because  it was occurring over  the internet. He                                                                    
was not  speaking about a  specific organization.  He stated                                                                    
there   could   be  an   organization   that   he  did   not                                                                    
philosophically  support, and  the change  would support  it                                                                    
just  as  much  as  it  would  benefit  an  organization  he                                                                    
supported.  He  stated that  the  effect  on local  politics                                                                    
would be  more money pouring into  organizations established                                                                    
to influence politics because it  was easier to have raffles                                                                    
and receive  money from out-of-state.  He thought  it should                                                                    
be concerning.                                                                                                                  
                                                                                                                                
3:02:30 PM                                                                                                                    
                                                                                                                                
Representative  Wool thought  there were  interesting points                                                                    
being  brought  up,  especially regarding  out-of-state.  He                                                                    
thought  it underscored  the  importance  of establishing  a                                                                    
ticket limit.  He provided a  scenario where the  ticket was                                                                    
$1,000 and 100 were sold.  He remarked that someone may want                                                                    
to  know  where   the  money  had  come   from.  He  thought                                                                    
establishing parameters  and limits  from the outset  of any                                                                    
lottery  it would  prevent any  "funny business"  from going                                                                    
on. He thought it was an  important component to any game of                                                                    
chance.                                                                                                                         
                                                                                                                                
Representative  Fields answered  that  every  raffle he  had                                                                    
ever seen  or participated in advertised  the information at                                                                    
the outset,  which was part of  the appeal. He noted  it was                                                                    
different than purchasing  a lottery ticket in  the Lower 48                                                                    
where  the goal  was for  as many  people to  participate as                                                                    
possible, which at some point  materially decreased the odds                                                                    
of winning. With  a raffle there was a  finite number, which                                                                    
was part of the appeal. He  would look into the issue and if                                                                    
it was  not currently addressed,  he was open  to addressing                                                                    
it  assuming  there  was  concurrence  by  stakeholders.  He                                                                    
thought it seemed to be something that was done already.                                                                        
                                                                                                                                
3:04:07 PM                                                                                                                    
                                                                                                                                
Representative Wool  clarified that  a ticket limit  was not                                                                    
desirable  for certain  things like  the Nenana  Ice Classic                                                                    
where the  goal was to sell  as many tickets as  possible to                                                                    
generate a large pot of  money. He understood it was already                                                                    
addressed in statute.                                                                                                           
                                                                                                                                
Ms.  Glover   replied  to  Representative   Wool's  question                                                                    
related to  the number of  raffle tickets. She  relayed that                                                                    
the limit did  not exist in regulation.  She explained there                                                                    
was nothing  limiting the  number of  tickets being  sold or                                                                    
requiring the  operator to notify purchasers  of the number.                                                                    
She stated it  was possible for an organization  to market a                                                                    
raffle at  a certain  number of tickets  and add  more later                                                                    
on.  She  did not  know  whether  it  happened, but  it  was                                                                    
allowable.  She  added   that  current  regulation  required                                                                    
numbered  sequential tickets  and  for  the organization  to                                                                    
account for every ticket (whether sold or not).                                                                                 
                                                                                                                                
Representative Wool  thought it  was an important  point. He                                                                    
stated  that  the requirement  for  tickets  to be  numbered                                                                    
sequentially was  great; however, he thought  a ticket limit                                                                    
should  be addressed  to account  for  raffles tickets  sold                                                                    
globally. He  did not feel  comfortable with the  bill until                                                                    
the issue was addressed.                                                                                                        
                                                                                                                                
3:05:57 PM                                                                                                                    
                                                                                                                                
Representative  Johnson asked  if  the process  was used  by                                                                    
other states.                                                                                                                   
                                                                                                                                
Representative  Fields  confirmed   that  other  states  had                                                                    
language very similar  to the language included  in the bill                                                                    
and  the  [adopted]  amendment sponsored  by  Representative                                                                    
Rasmussen. The  amendment basically outlined how  to have an                                                                    
instate  organization  conducting   a  raffle  instate  with                                                                    
participation  from residents  of  other  states. He  shared                                                                    
that his office had reviewed  some of those examples and had                                                                    
tried  to make  the bill  consistent with  what seemed  like                                                                    
best practices.                                                                                                                 
                                                                                                                                
Representative Johnson provided a  scenario where a national                                                                    
nonprofit established  a raffle  in Alaska and  sold tickets                                                                    
online nationally.  She asked if  the organization  would be                                                                    
required to be  registered as a nonprofit in  Alaska or have                                                                    
an Alaska business license.                                                                                                     
                                                                                                                                
Representative  Fields referenced  AS 05.15,  which included                                                                    
limitations  on what  constituted a  qualified organization.                                                                    
He explained that an organization  had to exist for at least                                                                    
three consecutive years prior to  applying and have at least                                                                    
25  members who  were Alaska  residents. He  explained there                                                                    
were    some    safeguards   included    against    national                                                                    
organizations using  Alaska as  a haven to  conduct raffles.                                                                    
He deferred to Mr. Walsh for additional detail.                                                                                 
                                                                                                                                
Mr.  Walsh added  there  were  40 to  45  other states  that                                                                    
allowed online raffles  in some form. He  detailed that most                                                                    
were  restricted to  charitable  gaming  for nonprofits.  In                                                                    
regard to  a national  organization looking  to find  a home                                                                    
base, there were  a majority of other states  with some form                                                                    
of the practice included in the bill.                                                                                           
                                                                                                                                
3:08:11 PM                                                                                                                    
                                                                                                                                
Representative Wool  gathered that  the bill  was on  a fast                                                                    
track to  be reported out  of committee. He remarked  on the                                                                    
absence  of a  requirement to  limit the  number of  tickets                                                                    
being  sold.  He   stated  it  would  be   possible  for  an                                                                    
organization to say  they were selling 100  tickets and then                                                                    
sell 10,000.  He wanted to  amend the bill. He  relayed that                                                                    
he did not want to amend the  bill on the House floor due to                                                                    
the unpredictability.  He wondered whether the  bill sponsor                                                                    
would  be amenable  to a  conceptual amendment.  He remarked                                                                    
that it was not his intent  to slow the bill down. He stated                                                                    
that allowing tickets to be  sold globally meant a person in                                                                    
Jaipur, India could purchase tickets.                                                                                           
                                                                                                                                
3:09:07 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:11:04 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Foster  MOVED  to  REPORT  CSHB  128(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Representative Carpenter OBJECTED.                                                                                              
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Edgmon,   Josephson,   LeBon,  Ortiz,   Rasmussen,                                                                    
Thompson, Wool, Merrick, Foster                                                                                                 
OPPOSED: Carpenter                                                                                                              
                                                                                                                                
The MOTION PASSED (9/1).                                                                                                        
                                                                                                                                
Representative Johnson was absent from the vote.                                                                                
                                                                                                                                
There  being   NO  further  OBJECTION,  CSHB   128(FIN)  was                                                                    
REPORTED   out   of   committee    with   four   "do   pass"                                                                    
recommendations, three  "no recommendation" recommendations,                                                                    
and   four  "amend"   recommendations  and   with  one   new                                                                    
indeterminate fiscal note from the Department of Revenue.                                                                       
                                                                                                                                
3:12:24 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:15:58 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 27                                                                                                             
                                                                                                                                
     "An Act naming the irene Webber Bridge."                                                                                   
                                                                                                                                
3:16:04 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick reported that she had received no                                                                              
amendments for the bill.                                                                                                        
                                                                                                                                
Co-Chair Foster MOVED to REPORT HB 27 out of committee with                                                                     
individual recommendations and the accompanying fiscal                                                                          
note.                                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB 27 was REPORTED out of committee with a "do pass"                                                                            
recommendation and with one previously published fiscal                                                                         
impact note: FN1 (DOT).                                                                                                         
                                                                                                                                
Co-Chair Merrick reviewed the schedule for the following                                                                        
day.                                                                                                                            
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
3:17:05 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:17 p.m.                                                                                          

Document Name Date/Time Subjects
ATIA and COVID19 Impacts_ATIA-HFIN 032921.pdf HFIN 3/29/2021 1:30:00 PM
HB 128 Amendments 032821.pdf HFIN 3/29/2021 1:30:00 PM
HB 128
HB 128 Public Testimony Pkt 3 032921.pdf HFIN 3/29/2021 1:30:00 PM
HB 128