Legislature(1995 - 1996)
03/28/1995 09:15 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 146
"An Act relating to sled dog race classics."
Co-chair Halford invited Leo Rasmussen to join the
committee. Mr. Rasmussen spoke to the words "mushing
classics". He expressed that within five years this would
potentially provide a revenue stream for Iditarod. He is
convinced that it would take away the financing problems
that have plagued Iditarod in the past. Iditarod is
responsible for making Alaska an internationally known race.
It has become a premiere event in Alaska which will increase
tourism.
Mr. Rasmussen testified that he has been an official checker
for Iditarod. He retired from the Board in 1991 after 19
years, but is still actively involved in trail mail. Senator
Rieger asked if he thought the increasing competitiveness of
the race has improved the character of the race. He
testified as to the negativity of the race back in 1973 as
compared to now. Mr. Rasmussen said that there is much to
be proud of in spite of what the humane society is saying.
Co-chair Halford agreed to obtaining and maintaining the
volunteer support as much as possible. The flavor of the
race has changed. It is now able to pay its bills, it does
a better job economically, but along the way it has lost the
earlier attitudes of the 70's. Mr. Rasmussen indicated that
it takes 10,000-20,000 volunteers to make the race work. He
estimates that perhaps a third receives some compensation.
He noted that there were people all over the world who took
place in the race this year. This allows the locals to take
a break and come back at another time fresh and new. The
turnover has happened this year and is an on-going trend
every three to four years.
Co-chair Halford asked what could be done to safeguard this
race from abuse? Mr. Rasmussen supported regulation. He
stated that there is history with the All-Alaska
Sweepstakes. There was extensive discussion regarding prior
abuses in the race along with possible solutions. Co-chair
Halford stated that this legislation has been slowed down to
find a way to safeguard this game. He stated that there
must be a mechanism between the department and the committee
that guarantees the ability to safeguard. Various methods
of protection were discussed to keep a black mark from
occurring on the Iditarod. Mr. Rasmussen assured that he
did not have an answer, but does support the reasoning.
Senator Frank interjected that it is important to keep it
from becoming a game of chance, but to keep the game
interesting. He does not want it to become a lottery, he
likes the idea of trying to guess when the musher is going
to cross the line. He supports placing sanctions on the
musher or any other person attempting to defraud the
situation. He suggests language that says, "mushers can't
bet or be involved in the betting, nor is it legal for
anyone to ensnare or entangle a musher in a betting
situation." He elaborated on the language and said that
when sanctions are placed on the mushers the abuse will be
limited.
Co-chair Halford suggested placing bets on the combined time
of the top three or four finishers, maintaining a historical
perspective of past races. He suggested that the committee
wanted to respond to this bill, the legislature wants to
help the Iditarod, but that safeguards are needed and that
the sponsors and the trail committee need to come back to
the committee with something that gives a level of
confidence needed on how it will happen.
Co-chair Halford invited Mr. Edgmon to join the committee.
He stated that he did not have any solutions to safeguarding
against abuse, but that his office would be glad to research
it and come back with language which could be amended into
the bill. Co-chair Halford stressed that the participants
are also the volunteers and supporters of the Iditarod.
Therefore, he advocated not eliminating them from betting.
He indicated that the direct participants and family members
of mushers on the trail, as well as race officials and
staff, should not be betting on the race. Senator Donley
reiterated all the variables and does not know how to attack
the problem. He suggested deferring it to someone who has
the level of expertise to deal with it. He felt that
deferring the problem to the division would require a fiscal
note.
Co-chair Halford suggested adding a sunset of 4 years to the
bill and with a fiscal note of $25.0 along with a letter of
intent that provides criteria to protect the integrity of
this lottery. Co-chair Frank suggested a fiscal note from
program receipts.
Senator Zharoff raised his concern over the term "mushing
sweepstakes" and that soon there will be other activities
around the state like the Beaver Roundup, Yukon Quest, etc.
that want to participate too. The definition that is in the
bill is rather narrow. Mr. Edgmon stated the intention of
the Division of Gaming, is that there is statutory authority
for the race organizations to conduct the game activity.
Some of the interior race organizations do conduct lottery
game activity. The intent of this bill is to put this
language specifically in the statute that entitles the
Iditarod Trail Committee to sell tickets. The sponsor of
the bill, after speaking to legislative legal council, the
Gaming Division, and the Department of Law, has specific
questions as to the activity of wagering on the arrival,
check-point and finish line, and that it may not be allowed.
Co-chair Halford suggested a fiscal note of $25.0 in program
receipts, and pass the bill out with a 4-year sunset. This
gives the trail committee 4 years to work with the
department. If approved now, they will have it next year.
Senator Sharp expressed his agreement. He said it would
behoove the Iditarod Committee to maintain the highest
integrity in the checks. Mr. Rasmussen agreed that with
time the race is going to have to be handled much more
professional than in the past.
Co-chair Halford asked for a motion to add a program receipt
fiscal note of $25.0, recognizing that it will be reviewed
when the budget is closed out and the information is
provided by the department. Discussion was had on the
amount of the fiscal note.
Senator Donley reiterated that gambling makes people behave
differently. There have been few things in the statutes
that have encouraged and encountered as much litigation over
the precise meaning of them as gambling. The lawsuits come
rapid fire. When there is money involved there is a
pecuniary interest to file law-suits. An activity such as
this, paying 1% tax on gross, has the potential for immense
profits. Careful thinking and well-thought out planning is
urged. He associated the complexity of this race with the
intricate regulations for parimutuel horse betting.
Senator Rieger said that the concern over human interference
can cause potential abuse to the race. He suggested that
the more elements of uncertainty introduced into the race,
the harder it is for someone to control. He introduced an
amendment that would indicate that the sweepstakes must
include at least three variables. For example, in
submitting a guess, it might include the names of the top
ten teams that finish, the winning time and perhaps the time
between the arrival of the first and second teams. It would
be impossible to rig that sort of complexity of guessing.
This might take away Senator Donley's concern.
Co-chair Halford said that Senator Rieger's language leaves
a lot up to the trail committee. The existing language says
that the only thing they can bet on is the winning finish
time. He stated that with Mr. Rasmussen supporting a
concern, it validates the need to address the problem now.
He also supports making the betting easy as stated by Co-
chair Frank, and likes the language introduced by Senator
Rieger.
Senator Rieger asked Mr. Edgmon if he as in agreement with
the intent of the amendment? Mr. Edgmon indicated that he
didn't think the sponsor of the bill would be opposed to the
amendment. The bill did pass the House 30 to 5. Senator
Rieger moved to adopt the Amendment. Senator Frank OBJECTED
to the amendment. He withdrew his debate but not his
objection. Co-chair Halford asked, "Shall the Rieger
Amendment be adopted?" The Rieger Amendment passed 5 to 2
and was ADOPTED.
Senator Donley MOVED for passage of a $25.0 fiscal note to
the department of program receipts with a 4 yr sunset
provision. No objection having being raised, it was ADOPTED.
Senator Sharp MOVED for passage of SCSCSHB 146 (FIN) out of
committee with individual recommendations with accompanying
fiscal note. No objection having been raised, SCSCSHB 146
(FIN) was REPORTED OUT of committee with the accompanying
$25.0 program receipt fiscal note from the Department of
Revenue.
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