02/01/2012 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB245 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 245 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 1, 2012
3:20 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Craig Johnson, Vice Chair
Representative Mike Chenault
Representative Dan Saddler
Representative Steve Thompson
Representative Lindsey Holmes
Representative Bob Miller
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 245
"An Act establishing a snow classic as an authorized form of
charitable gaming."
- MOVED HB 245 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 245
SHORT TITLE: SNOW CLASSIC
SPONSOR(s): REPRESENTATIVE(s) HAWKER
01/17/12 (H) PREFILE RELEASED 1/6/12
01/17/12 (H) READ THE FIRST TIME - REFERRALS
01/17/12 (H) L&C, FIN
02/01/12 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE MIKE HAWKER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the bill as the sponsor of HB
245.
JULI LUCKY, Staff
Representative Mike Hawker
Juneau, Alaska
POSITION STATEMENT: Testified and answered questions during the
discussion of HB 245 on behalf of the bill's sponsor,
Representative Mike Hawker.
JEFF PRATHER, Gaming Group Manager
Juneau Office; Tax Division
Department of Revenue (DOR)
Juneau, Alaska
POSITION STATEMENT: Testified and answered questions during the
discussion of HB 245.
REBECCA REICHLIN, Chair
Four Valleys Community School, Inc. (FVCS)
Girdwood, Alaska
POSITION STATEMENT: Testified in support of HB 245.
SAM DANIEL
Girdwood, Alaska
POSITION STATEMENT: Testified during the discussion of HB 245.
DIANE HIIBNER, Area General Manager
Alyeska Resort
Girdwood, Alaska
POSITION STATEMENT: Testified in support of HB 245.
LYNNE' DORAN, Board member
Four Valleys Community School (FVCS)
Girdwood, Alaska
POSITION STATEMENT: Testified in support of HB 245.
CHRIS VON IMHOF
Girdwood, Alaska
POSITION STATEMENT: Testified during the discussion of HB 245.
ACTION NARRATIVE
3:20:57 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:20 p.m. Representatives
Johnson, Thompson, Holmes, Miller, Chenault, and Olson were
present at the call to order. Representative Saddler arrived as
the meeting was in progress.
HB 245-SNOW CLASSIC
3:21:17 PM
CHAIR OLSON announced that the only order of business would be
HOUSE BILL NO. 245, "An Act establishing a snow classic as an
authorized form of charitable gaming."
3:21:39 PM
REPRESENTATIVE MIKE HAWKER stated that HB 245 was introduced at
the request of members of the community of Girdwood. This bill
would allow the Four Valleys Community School (FVCS) to conduct
a snow classic to raise funds for their organization. The snow
classic would be operated very much like other forms of
charitable gaming already allowed in statute, such as the Nenana
Ice Classic. The snow classic contestants would buy a ticket
and write a guess of the depth of snow accumulated by a specific
date and time on Mount Alyeska. Four Valleys Community School,
Inc., a nonprofit organization, has identified the snow classic
as a means to fund its operation. He stated that the FVCS is a
pretty amazing organization that offers more than 250 year-round
classes and sponsors community events. He characterized the
FVCS as a central feature in this small community of Girdwood.
REPRESENTATIVE HAWKER pointed out that a lengthy description of
FVCS is in members' packets. He explained that FVCS really came
into its own when the Anchorage School District eliminated
community school funding; however, the FVCS has faced challenges
to raise funds, which it has done through volunteer efforts and
programs. He reiterated the cohesiveness this organization
brings to the Girdwood community. This bill would allow FVCS an
opportunity to raise money by conducting a snow classic. He
said, "It's a simple policy call for us. Do we as legislators
wish to expand our charitable gaming statutes to allow this
organization to conduct a snow classic on Mount Alyeska in
Girdwood?"
3:24:20 PM
REPRESENTATIVE SADDLER related that he reviewed the bill packet
and discovered a snow machine classic is already in statute. He
inquired as to the difference between the two charitable gaming
activities.
REPRESENTATIVE HAWKER described the statutory process for
charitable gaming. The charitable gaming statutes authorize a
specific activity by a specific organization. In this instance,
the FVCS would ask for authority to conduct a snow classic. He
surmised that a snow machine classic would involve snow
machines, whereas the snow classic involves guessing when the
snow falls. He summarized that each activity of charitable
gaming is a separate policy call by the legislature.
REPRESENTATIVE SADDLER asked whether the design of the snow
classic would be left up to the FVCS and if a person would buy a
ticket for a guess as to the snow depth on a particular day or
place bets, such as $100 for 100 inches of snowfall.
3:25:57 PM
JULI LUCKY, Staff, Representative Mike Hawker, noted the FVCS's
board members are participating by teleconference are available
to provide more detail. She referred to the information
contained in members' packets for an explanation of how the snow
classic would be conducted. She summarized the snow classic
process, noting the FVCS would select a date, time, and place
where the snow will be measured. The tickets would be for one
guess on how deep the snow will be for the selected date, time,
and place. She related her understanding that the only guess is
for the depth of snow.
3:27:03 PM
REPRESENTATIVE CHENAULT referred to the fiscal note. He
highlighted the department's analysis that a snow classic would
generate minimal revenue under $1,000. He asked whether that
was an estimate.
REPRESENTATIVE HAWKER answered that if the snow classic were
sufficiently marketed to attract public interest substantial
funds for the FVCS could be raised; however, if the FVCS fails
in their marketing development of the program little money might
be raised. He recapped that the revenue raised will depend on
how well the FVCS's administration develops its marketing
program.
REPRESENTATIVE CHENAULT said he was unsure of the permit costs,
and whether any other costs are associated with the permit.
3:28:50 PM
JEFF PRATHER, Gaming Group Manager, Juneau Office, Tax Division,
Department of Revenue (DOR), introduced himself.
3:29:17 PM
REPRESENTATIVE CHENAULT asked for clarification on the
permitting cost to the organization.
MR. PRATHER answered that the cost of the permit ranges between
$20 and $100, depending on the prior year's gross income. He
stated that if this organization had a raffle permit last year
there would be no additional cost to add this event to their
activities.
REPRESENTATIVE CHENAULT asked for clarification as to whether
the permit costs are based on revenues received.
MR. PRATHER answered that the permit costs are based on revenues
received in the prior year.
REPRESENTATIVE CHENAULT related a scenario in which the
organization had earned $1,000, which would result in little
revenue; however, the next year the organization might earn
$100,000. He inquired as to the amount the state would receive.
MR. PRATHER explained that the fee for gaming on $100,000 gross
would be $1,000 or 1 percent of the gross.
3:30:40 PM
REPRESENTATIVE CHENAULT offered that he likes these types of
raffles. He thinks these are good ways for communities to raise
funds for a good purpose. He expressed concern about the zero
fiscal note for the bill. He acknowledged that the cost was
small, but cautioned that fiscal impacts of $500 or less can add
up to real money. He suggested that this is not the sponsor's
fault nor did he blame the department; however, he characterized
this as a pet peeve of his. He stated that perhaps one solution
would be for the finance committees to decide that all fiscal
impacts of less than $500 do not require a fiscal note and those
over $500 would require a fiscal note.
3:31:58 PM
CHAIR OLSON stated his intent to move the bill, with the caveat
that the committee would request another fiscal note. He
offered that this bill has a further referral to the House
Finance Standing Committee.
REPRESENTATIVE CHENAULT stated that he did not have any
objection to do so.
3:32:33 PM
REPRESENTATIVE JOHNSON asked for clarification on how other
community organizations, such as ones in Fairbanks, could
conduct a snow classic. He asked whether they would need to
come back to the legislature with a separate bill in order to do
so. He related his understanding that this bill does not open
the door to anyone who wants to measure snow and give away
prizes.
MR. PRATHER agreed. He indicated that usually classic are
limited to one organization, but up to five or six permittees.
He named some classics that are open to anyone, including the
rain classic, the crane classic, and the snow machine classic.
He stated that the rest are all restricted to one or a very few
permittees.
3:33:30 PM
REPRESENTATIVE JOHNSON inquired as to whether this would
essentially be issuing a copyright to FVCS, and that someone
else in the state who wanted to hold a snow classic could not do
so.
MR. PRATHER answered that the Department of Revenue (DOR) would
not issue a permit for a snow classic to any other organization
except to the FVCS.
3:34:22 PM
REPRESENTATIVE JOHNSON recalled the "Fur Rondy" used to have
some type of snow classic such as a Fur Rondy Snow Classic. He
asked whether that would be acceptable and if the Fur Rondy
would be excluded forever from holding a snow classic.
3:35:05 PM
MR. PRATHER offered that anyone can conduct a snow machine
classic.
REPRESENTATIVE JOHNSON asked whether the Juneau Chamber of
Commerce could conduct a snow classic.
MR. PRATHER said the snow classic is not listed in statute as a
gaming type. In further response, he added that if HB 245 were
to pass, it would limit the snow classic to the FVCS who would
benefit from the permit. No other organization would be allowed
to issue snow classics unless the legislature authorized the
snow classic for them.
3:36:24 PM
REPRESENTATIVE JOHNSON identified this type of activity as
charitable gaming activity. He asked whether a group in
Fairbanks, such as Fairbanks senior citizens, who meet all the
other criteria, could have a bill introduced that uses the term
"snow classic." He reiterated his concern as to whether this
bill would grant someone a name that no one else could use. He
suggested his question is essentially a legal question.
MR. PRATHER agreed that the question is a legal question;
however, he offered his belief that the DOR, as a regulator
issuing permits, would not issue a snow classic permit to
another organization since the snow classic belongs to the FVCS.
In response to a question, he agreed that the name of the snow
classic could be changed to Girdwood Snow Classic or some other
name.
3:37:57 PM
REPRESENTATIVE JOHNSON suggested that he did not want to drag
this out and supports this 100 percent. He related his
understanding that the bill would grant the exclusive name of
"snow classic" to one organization and no other organization
could use the name "snow classic" in their title. He also
suggested that if that is the case it is a little bit
problematic and it might be necessary to change the title. He
reiterated his concern was to grant to one group sole use of the
term "snow classic." He acknowledged that the Iditarod and the
Iron Dog are copyrighted; however, people can still use the term
"dog race." He asked to verify that no one else could use a
title that used the term "snow classic." It may not be a
problem, but if so, the matter could be easily corrected.
3:39:07 PM
REPRESENTATIVE THOMPSON referred to page 2, lines 16-20 of HB
245, which grants "snow classic" exclusively to the Alyeska Snow
Classic, which is operated and administered by Four Valleys
Community School, Inc. He said he was aware of other
organizations with interest in guessing games. He highlighted
that any other organization would need to be listed after
Alyeska Snow Classic in the bill. He offered his belief that
"snow classic" could also be used in the new organization's
title.
REPRESENTATIVE JOHNSON agreed, but he admitted he was somewhat
confused.
3:40:38 PM
The committee took an at-ease from 3:40 p.m. to 3:43 p.m.
3:43:23 PM
REPRESENTATIVE SADDLER referred to Section 4, and offered that
that the way the bill is written it specifically says that "snow
classic" is only at Mount Alyeska for FVCS. He inquired if
anyone else could offer a "snow classic" if HB 245 were to pass
the legislature.
MR. PRATHER answered that the department would not issue a "snow
classic" permit to anyone else since "snow classic" is defined
in this bill and it applies to the FVCS.
3:44:05 PM
REPRESENTATIVE SADDLER asked the sponsor if he would insist on
this actively being called the snow classic or whether changing
the name to the Alyeska Snow Classic would satisfy any
confusion.
3:44:44 PM
REPRESENTATIVE HAWKER said he has listened to the questions. He
related that this bill was specifically crafted to only allow
one instance of a "snow classic." He referred to page 2, lines
15-20 to Section 4 of HB 245, which read, "snow classic" means a
game of chance in which a prize of money is awarded to the
closest guess of the total snow accumulation on the ground at a
specific location on Mount Alyeska..." This bill would
authorize one authority for one activity involving guessing the
snow accumulation on a specific date and time and is limited.
He read, "...is limited to the Alyeska Snow Classic operated and
administrated by the Four Valleys Community School, Inc." He
offered his belief that the state is protected by not creating a
franchise and by identifying very clearly that this bill
pertains to: one event, one activity, one location - the snow
on Mount Alyeska - one name - the Alyeska Snow Classic and one
operator - the Four Valleys Community School, Inc. He added
that the state is also protected by the corporations' laws to
prevent someone to attempt to "game" our system by calling
themselves the Four Valleys Community School, Inc., and
operating a snow classic on Mount Alyeska in Girdwood, since it
prohibits incorporating an entity under the same corporate name.
He related that generic language is added in Sections 1 through
3, by adding charitable gaming activities known as a snow
classic; however, Section 4 adds the definition of snow classic.
He summarized that Section 4 of the bill delineates the activity
to one event, one activity, one location, and one operator - the
FVCS.
REPRESENTATIVE HAWKER emphasized that this bill does not
authorize a franchise.
3:48:15 PM
REPRESENTATIVE JOHNSON related a scenario in which the Fairbanks
Community Center wanted to offer a snow classic. He referred to
page 2, lines 16-20, and related that before the Fairbanks
Community Center could offer a snow classic, the bill would need
to be amended to add their organization to the list of
organizations offering a snow classic. He stated that he did
not want to guarantee the snow classic to one organization
forever. He related his understanding that it would address his
concern if Section 4 was amended to add another organization,
such as the Fairbanks Community Center.
REPRESENTATIVE HAWKER agreed it would address the concern just
outlined. He said the legislature has the authority to do so
and it would be possible to broaden the definition. He said the
bill could be defined to simply state that a snow classic is a
game of chance where prize monies are awarded for guessing the
snowfall anywhere in the state.
3:49:39 PM
REPRESENTATIVE JOHNSON related that with that explanation he was
comfortable with the bill.
3:50:39 PM
REBECCA REICHLIN, Chair, Four Valleys Community School, Inc.
(FVCS) stated that the FVCS's board fully supports the Alyeska
Snow Classic. Since 1981, FVCS has been the primary source of
educational, recreational, and cultural opportunities for the
community. The community has had a long and stable history of
providing quality programs for the Girdwood community. She has
lived in Girdwood for 34 years and has been involved with the
community schools for 23 years as a volunteer instructor,
coordinator, and board member. The community school program
provides year-round programming. The FVCS has been a model to
the state in terms of the opportunities it provides for its
youth to be physically active and to recreate year round.
Additionally, the FVCS also provides lots of programs for
adults, up to 250 classes a year. Since 1984, the community
school program has administered public funds for programs the
community has deemed important. These funds have provided
direct services to the community. The FVCS has worked to create
partnerships and collaboration with local businesses and
nonprofit organizations, and donors in order to provide a full
spectrum of services.
3:53:00 PM
MS. REICHLIN gave a brief history of the FVCS's gaming
activities. Since 1990, the FVCS has held a permit and has
conducted activities, such as the Gold Rush event, bingo, pull
tabs, and raffles. The FVCS's experience in gaming has given
personnel an understanding of the gaming regulations and the
reporting requirements. This bill would allow FVCS to control
its own destiny. All of the projects in this small community of
2,000 solicit community support, and everyone donates, raises
funds, and draws from a small pool of people and businesses in
the community. The snow classic would allow the FVCS to raise
funds to support the FVCS's mission. It would also use other
resources beyond the community to provide other valley services
and help eliminate the dependence on property tax dollars from
Girdwood Board of Supervisors' grant. Further, it would help
the FVCS to meet its goal of self-sufficiency. This bill
expands on existing statutes for gaming. She urged members to
support HB 245, which will create the charitable gaming event
called the Alyeska Snow Classic.
3:54:34 PM
SAM DANIEL thanked the committee for the opportunity to speak in
support of HB 245. He said he and his wife have raised three
children in the Girdwood community. He said he is known as the
local historian, and also served as the community school's
coordinator from 1987 to 1994. He also has observed the process
throughout this time. The FVCS has not only survived and
evolved, but the community school has learned to survive on its
own.
3:55:52 PM
MR. DANIEL recapped a brief history of the community school
program. The community school program began in Girdwood in 1981
as part of the Municipality of Anchorage's Parks and Recreation
program. It was initially housed in the old Anchorage downtown
city gymnasium. In 1986, when funding disappeared, the
community school program moved to the Anchorage School District.
In 1988, when funding for the district was cut, the community
school program formed its own nonprofit corporation. The FVCS
has been supported through a series of local fundraising
efforts, combined with support from the old Girdwood Road
Service Area's budget. He described the FVCS organization as
"the last man standing." He acknowledged a few community school
programs exist throughout the state; however, he characterized
the FVCS as the centerpiece of the community of Girdwood. The
FVCS helps to create a sense of community and is the glue that
binds it together. The FVCS enables other nonprofit
organizations to work closely together. He listed events such
as parents watching kids play soccer and people attending
community events, which has led - in his family - to his
daughter competing in competitive volleyball at the YMCA level.
He attributed his daughter's success to the community school
program class she took in Girdwood. He added that he is also a
local realtor, and he has found that prospective buyers are
attracted to the year-round resort atmosphere of Mount Alyeska,
and the year-round community services available to residents.
He urged members to support HB 245. He offered his belief that
this bill will provide needed funding so volunteers can focus on
providing services.
3:58:38 PM
REPRESENTATIVE SADDLER asked whether the residents have ever had
an informal snow classic.
MR. DANIEL answered no. He recalled that Girdwood did have a
Monte Carlo night called Gold Rush.
3:59:49 PM
DIANE HIIBNER, Area General Manager, Alyeska Resort, related
that Girdwood has held a similar event - not a classic - but an
event in which people would guess the first inch of snowfall.
She offered her belief that nonprofits did not benefit from this
informal event. She described the guessing event as one in
which people would "chip into the pot." She thanked the
committee for hearing HB 245. She said she was speaking on
behalf of herself and the Alyeska Resort, in offering full
support for HB 245 and the Alyeska Snow Classic. The resort has
been involved in the concept of the snow classic from the
beginning. The Alyeska Resort supports the snow class as a
great idea and one that will benefit the community of Girdwood
and FVCS by allowing the community to raise money for the
nonprofit. She urged members to support the bill.
4:01:53 PM
LYNNE' DORAN, Board member, Four Valleys Community School
(FVCS), stated that the concept for the snow classic in HB 245
mimics the format of the Nenana Ice Classic. She described how
the snow classic would work, that a separate measuring device
would be installed, one separate from measuring devices of
Alyeska Resort. The FVCS would sell tickets to people who would
guess the accumulated snowfall on a specific date and time and
ticket sales would cease 30 days prior to reading the amount of
the accumulated snowfall. At the time of the measuring, the
FVCS would make a public announcement of the total accumulated
snowfall. At a later date, the FVCS would announce the winner
or winners and the amount of money raised by the event. The
winnings would be split with the FVCS after administrative costs
were deducted. She supported prior testimony that indicated the
benefits will help support the FVCS and also reduce the
necessity to rely on municipal funds to support the FVCS's
program.
4:03:16 PM
CHRIS VON IMHOF stated that he was the former General Manager of
the Alyeska Resort for many years. He said he is still active
in the Girdwood community and serves in a number of
organizations. He stated that he has lived in Girdwood for over
40 years. He offered his belief that the FVCS is the absolutely
best community school in terms of the courses offered. He asked
for the committee's support for HB 245, which he emphasized as
being for a good cause. He urged members to support and pass
out the bill.
4:04:06 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 245.
4:04:11 PM
REPRESENTATIVE JOHNSON thanked the members of the FVCS. He
offered his belief that the truly great legislation comes from
the grass roots.
REPRESENTATIVE JOHNSON moved to report HB 245 out of committee
with individual recommendations and the accompanying zero fiscal
note. There being no objection, HB 245 was reported from the
House Labor and Commerce Standing Committee.
4:04:56 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:04 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB245 Sectional Analysis.pdf |
HL&C 2/1/2012 3:15:00 PM |
HB 245 |
| HB245 Supporting Documents-Letters of Support.pdf |
HL&C 2/1/2012 3:15:00 PM |
HB 245 |
| HB245 Sponsor Statement.pdf |
HL&C 2/1/2012 3:15:00 PM |
HB 245 |
| HB245 Supporting Documents-FVCS Background Information.pdf |
HL&C 2/1/2012 3:15:00 PM |
HB 245 |
| HB245 ver B.PDF |
HL&C 2/1/2012 3:15:00 PM |
HB 245 |
| HB245 Fiscal Note-DOR-TAX-01-10-12.pdf |
HL&C 2/1/2012 3:15:00 PM |
HB 245 |