02/03/2017 03:15 PM House LABOR & COMMERCE

                      HB 18-RACE CLASSICS                                                                                   
                                                                                                                                
3:21:56 PM                                                                                                                    
                                                                                                                                
CHAIR KITO announced that the first order of business would be                                                                  
HOUSE BILL NO. 18, "An Act relating to race classics."                                                                          
                                                                                                                                
3:22:44 PM                                                                                                                    
                                                                                                                                
CHAIR KITO closed public testimony on HB 18.                                                                                    
                                                                                                                                
3:23:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BIRCH moved  to adopt  Amendment 1,  [labeled 30-                                                               
LS0199\A.1, Martin, 1/31/17], which read as follows:                                                                            
                                                                                                                                
     Page 1, lines 4 - 10:                                                                                                      
          Delete all material and insert:                                                                                       
               "(40)  "race classic" means a game of chance                                                                     
     where  prizes  are awarded  for  the  closest guess  or                                                                    
     guesses of the  official winning times of  a human race                                                                    
     or races  [, AND  IS LIMITED TO  THE MT.  MARATHON RACE                                                                    
     CLASSIC  OPERATED   AND  ADMINISTERED  BY   THE  SEWARD                                                                    
     CHAMBER OF COMMERCE CONVENTION AND VISITORS' BUREAU];"                                                                     
                                                                                                                                
REPRESENTATIVE BIRCH  stated that the amendment  removes the need                                                               
for Ketchikan  to ask for legislation  for the race classic.   He                                                               
also mentioned a letter of support from Seward.                                                                                 
                                                                                                                                
REPRESENTATIVE WOOL objected for discussion purposes.                                                                           
                                                                                                                                
3:24:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAN   ORTIZ,  Alaska  State   Legislature,  prime                                                               
sponsor of  HB 18, stated  that he  is neutral to  the amendment.                                                               
He mentioned  that he has  heard some concern from  his community                                                               
about the  potential of other  groups being  able to "hop  on" to                                                               
the  Race to  Alaska or  other  race classics  around the  state.                                                               
Notwithstanding that, he  acknowledged that in order to  do so, a                                                               
group would have to have a permit.                                                                                              
                                                                                                                                
REPRESENTATIVE BIRCH  stated that  HB 18 brought  new information                                                               
to him.   He noted  the effort,  energy, and initiative  taken by                                                               
the [Greater Ketchikan  Chamber of Commerce] to be  added to host                                                               
a classic,  and he stated  that the amendment would  simplify the                                                               
process.    The  amendment allows  any  community,  appropriately                                                               
regulated with a gaming permit, to  do a similar fundraiser.  The                                                               
amendment reduces the amount of state statutes in consideration.                                                                
                                                                                                                                
3:26:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP  spoke in  support  of  Amendment 1,  which                                                               
simplifies  community   participation  in  annual  events.     He                                                               
mentioned there are other safeguards in place.                                                                                  
                                                                                                                                
3:27:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  stated that  pre-existing classics  would be                                                               
diluted if every  community had a classic.  He  asked if a gaming                                                               
permit is easy to obtain and could be used for multiple events.                                                                 
                                                                                                                                
REPRESENTATIVE BIRCH said  the legislature doesn't need  to be in                                                               
"the business of  picking the winners and losers."  He noted that                                                               
the bill  addresses the definition  of race classics, and  in the                                                               
years since  the law  has been  around, there  has only  been one                                                               
race  classic.   He stated  that Amendment  1 would  simplify the                                                               
process and  make for better  governance.   He opined that  it is                                                               
not  the legislature's  business to  determine which  communities                                                               
can  have classics.   He  said, "Let  the entrepreneurial  spirit                                                               
rise, and if  somebody wants to have a classic  ... we should not                                                               
stand in the way."                                                                                                              
                                                                                                                                
3:29:48 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO  clarified that  ice  classics  are identified  in  a                                                               
separate part of the same statute.                                                                                              
                                                                                                                                
REPRESENTATIVE WOOL maintained his objection.                                                                                   
                                                                                                                                
3:30:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ORTIZ asked  for  [the  Department of  Revenue's]                                                               
observation on the likelihood of  a piling-on effect if Amendment                                                               
1 was adopted.                                                                                                                  
                                                                                                                                
CHAIR KITO paraphrased Representative  Ortiz's question about the                                                               
impact of not  identifying individual classics on  the success of                                                               
any individual classic.                                                                                                         
                                                                                                                                
REPRESENTATIVE ORTIZ reiterated the  concerns of his constituency                                                               
and  the   Greater  Ketchikan  Chamber  of   Commerce  about  the                                                               
potential of groups to pile on to existing races.                                                                               
                                                                                                                                
3:31:51 PM                                                                                                                    
                                                                                                                                
KATRINA  MITCHELL, Gaming  Group  Manager,  Tax Division,  stated                                                               
that she  cannot answer  the question.   She stated  that nothing                                                               
has come  to her  attention [regarding  a piling-on  effect], and                                                               
that there is not a list of  groups wanting to get in on classics                                                               
limited to certain organizations.  She  stated that it is hard to                                                               
predict how groups would react.                                                                                                 
                                                                                                                                
3:33:08 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Knopp, Sullivan-                                                               
Leonard,   and   Birch   voted   in   favor   of   Amendment   1.                                                               
Representatives Stutes,  Josephson, Wool, and Kito  voted against                                                               
it.  Therefore, Amendment 1 failed to  be adopted by a vote of 3-                                                               
4.                                                                                                                              
                                                                                                                                
3:33:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL moved to report  HB 18, out of committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection, HB 18  was moved from the  House Labor                                                               
and Commerce Standing Committee.