03/11/2025 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

                      HB  50-SNOW CLASSICS                                                                                  
                                                                                                                                
8:02:21 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HIMSCHOOT announced  that the  first order  of business                                                               
would be HOUSE BILL NO. 50, "An Act relating to snow classics."                                                                 
                                                                                                                                
8:02:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SARA  HANNAN, Alaska  State Legislature,  as prime                                                               
sponsor,  paraphrased  the  sponsor statement  [included  in  the                                                               
committee packet],  which read  as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Currently in  statute, conducting a "snow  classic"   a                                                                    
     game of chance  in which prize money is  awarded to the                                                                    
     closest  guess of  the total  snow accumulation  on the                                                                    
     ground at  a specific location  on a specific  date and                                                                    
     time    is  limited  to  a site  on  Mount Alyeska  and                                                                    
     administered by Four Valleys Community School, Inc.                                                                        
                                                                                                                                
     HB  50 would  remove these  two restrictions,  allowing                                                                    
     other  entities  around  the   state  to  conduct  snow                                                                    
     classics to raise money for worthy causes.                                                                                 
                                                                                                                                
     Permitting for such games of  chance is administered by                                                                    
     the Tax Division in the  Department of Revenue. Permits                                                                    
     are   limited    to   municipalities    and   qualified                                                                    
     organizations,    such   as    civic   or    charitable                                                                    
     organizations,  that operate  without profits  to their                                                                    
     membership.                                                                                                                
                                                                                                                                
     I would be grateful for your support of HB 50.                                                                             
                                                                                                                                
8:04:32 AM                                                                                                                    
                                                                                                                                
HUNTER MEACHUM,  Staff, Representative Sara Hannan,  Alaska State                                                               
Legislature, on  behalf of Representative Hannan,  prime sponsor,                                                               
presented  the sectional  analysis  for HB  50  [included in  the                                                               
committee packet],  which read  as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Sec.  1: AS  05.15.690(47),  The definition  of a  snow                                                                    
     classic is  broadened by  removing the  requirement for                                                                    
     snow  classics  to  be  exclusively  operated  by  Four                                                                    
     Valleys Community  School, Inc. for a  specific site on                                                                    
     Mount Alyeska.                                                                                                             
                                                                                                                                
8:05:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLLAND  asked what  proliferation the  bill would                                                               
have and whether  the Tax Division would  implement guidelines on                                                               
the allowable number of events per area.                                                                                        
                                                                                                                                
MS. MEACHUM stated that the  Department of Revenue (DOR) requires                                                               
snow  classic  participants  to   be  a  qualified  501(c)(3)  or                                                               
municipality.                                                                                                                   
                                                                                                                                
8:07:59 AM                                                                                                                    
                                                                                                                                
MARTHA ABEL,  Gaming Group Manager,  Tax Division,  Department of                                                               
Revenue  (DOR), said  there's  no  limit on  the  number of  snow                                                               
classic events that can be held by a permit holder.                                                                             
                                                                                                                                
REPRESENTATIVE  HOLLAND  inquired  as  to the  number  of  permit                                                               
holders in the state.                                                                                                           
                                                                                                                                
MS. ABEL reported that there were 1,036 permit holders in 2023.                                                                 
                                                                                                                                
REPRESENTATIVE HANNAN  asked Ms. Abel  to describe what  it takes                                                               
to be a permit holder.                                                                                                          
                                                                                                                                
MS.  ABEL  said   permit  holders  are  required   to  submit  an                                                               
application,  bylaws, and  meeting minutes,  and are  required to                                                               
set up  a checking account  specifically for gaming.   The entity                                                               
must be  either a  nonprofit organization  or a  municipality and                                                               
must have been active for the past three years.                                                                                 
                                                                                                                                
8:11:54 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  MEARS asked  whether there  are  parallels between  the                                                               
snow classic and other raffle opportunities, for example.                                                                       
                                                                                                                                
MS. ABEL  agreed that the  raffle is a  similar game type  with a                                                               
fee structure, a prize, and the winner being selected by chance.                                                                
                                                                                                                                
8:13:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HALL inquired as to  the background and history of                                                               
the snow classic.                                                                                                               
                                                                                                                                
MS. ABEL did not know the answer.                                                                                               
                                                                                                                                
MS.  MEACHUM explained  that the  snow classic  originated as  an                                                               
idea in  2011 from former  Representative Mike Hawker  and passed                                                               
the legislature in 2012.                                                                                                        
                                                                                                                                
8:14:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  asked  how  "snow  accumulation"  would  be                                                               
defined.                                                                                                                        
                                                                                                                                
MS.  MEACHUM shared  her  understanding  that the  administrative                                                               
organization would measure the snow.                                                                                            
                                                                                                                                
8:15:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE  asked  whether the  bill  would  allow                                                               
anyone to offer a snow classic.                                                                                                 
                                                                                                                                
MS. MEACHUM reiterated that  any qualified nonprofit organization                                                               
or municipality could administer a  snow classic if they obtained                                                               
a permit from DOR.                                                                                                              
                                                                                                                                
CO-CHAIR  HIMSCHOOT asked  whether  the snow  classic could  take                                                               
place anywhere in Alaska.                                                                                                       
                                                                                                                                
MS. MEACHUM said yes, any specific location on a specific date.                                                                 
                                                                                                                                
8:16:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN added that the  permit holder would have to                                                               
select a specific  location and could further  define "total snow                                                               
accumulation" in  the permit  application.   She noted  that snow                                                               
classics are  not significant revenue generators  because tickets                                                               
are sold individually.                                                                                                          
                                                                                                                                
8:18:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX expressed  concern  that  the definition  of                                                               
"total  snow  accumulation"  could be  challenged  for  litigious                                                               
purposes.                                                                                                                       
                                                                                                                                
REPRESENTATIVE HANNAN responded that  it would behoove the entity                                                               
to use  a less generalized  term than "total  snow accumulation,"                                                               
and  instead, specify  depth  of snow  on a  specific  date at  a                                                               
specific time.                                                                                                                  
                                                                                                                                
8:20:58 AM                                                                                                                    
                                                                                                                                
FRANKIE PILLIFANT, President, Juneau  Nordic Ski Club Board, gave                                                               
invited testimony during  the hearing on HB 50.   She paraphrased                                                               
from written testimony [included  in the committee packet], which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     On  behalf of  the  Juneau Nordic  Ski  Club (JNSC),  I                                                                    
     write  to  express   our  501c3  organization's  strong                                                                    
     support for the passage of  HB50. This bill would allow                                                                    
     the JNSC  to operate a fundraiser,  the 'Snow Classic',                                                                    
     for  the purpose  of additional  financial support  for                                                                    
     our  youth programs.  Currently  the  JNSC raises  more                                                                    
     than $30,000 annually to support  our youth skiers, but                                                                    
     our sources are strained  with the ever-increasing cost                                                                    
     of  equipment, insurance,  travel, and  the many  other                                                                    
     costs  associated with  operating  a  ski program.  The                                                                    
     passage  of HB50  is an  essential complement  to other                                                                    
     fundraising efforts.                                                                                                       
                                                                                                                                
     The JNSC is dedicated to  promoting the sport of cross-                                                                    
     country  skiing  and  fostering  community  connections                                                                    
     through  outdoor recreation.  Our youth  programs offer                                                                    
     opportunities for local students  to engage in healthy,                                                                    
     challenging  age-appropriate activities  while building                                                                    
     life  skills   such  as  teamwork,   perseverance,  and                                                                    
     discipline.  The High  School  Ski  Team has  developed                                                                    
     exceptional  athletes who  have  gone  on to  represent                                                                    
     Alaska in regional and state competitions.                                                                                 
                                                                                                                                
     Fundraising is vital in  providing financial support to                                                                    
     our athletes,  ensuring that  all have  the opportunity                                                                    
     to participate.  Many youth sports programs  Alaska not                                                                    
     connected  by  road   are  presented  with  significant                                                                    
     financial   challenges   and  conduct   community-based                                                                    
     fundraising  to  support  the higher  cost  of  travel,                                                                    
     equipment,  and   coaching.  HB50  legislation   is  an                                                                    
     essential  fundraising tool  for the  continued success                                                                    
     and  growth  of the  youth  ski  programs that  include                                                                    
     elementary, middle, and high school levels.                                                                                
                                                                                                                                
      Your passage of HB50 will add to the JNSC financial                                                                       
         tools that support the local cross-country ski                                                                         
     programs. We urge you to vote yes on HB50.                                                                                 
                                                                                                                                
       Thank you for your time and consideration of this                                                                        
     request. Please reach out with any questions.                                                                              
                                                                                                                                
8:26:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLLAND asked how  the funds from this fundraising                                                               
source would be used.                                                                                                           
                                                                                                                                
MS. PILLIFANT said she envisioned  it going to the youth program,                                                               
which accounts for half of the club's budget due to travel.                                                                     
                                                                                                                                
8:28:00 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HIMSCHOOT announced that HB 50 would be held over.