Legislature(2021 - 2022)BELTZ 105 (TSBldg)
02/21/2022 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB201 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 201 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 201-USE OF INTERNET FOR CHARITABLE GAMING
1:35:13 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
201 "An Act relating to charitable gaming online ticket sales
and activities; and providing for an effective date."
1:35:47 PM
MELODIE WILTERDINK, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, presented SB 201 on behalf of the
Senate Labor and Commerce Standing Committee. She read the
following sponsor statement into the record:
[Original punctuation provided.]
Charities in Alaska have long utilized raffles and
classics as a way to fundraise for important causes.
But a huge hinderance to these fundraising efforts is
the requirement to sell raffle tickets and draw
winners in person. In a state as vast as ours, this
has limited the ability of charities to receive
support from all corners of Alaska, whether that
charity is located in a population center or a remote
community.
Senate Bill 201 would modernize Alaska's gaming
statutes to allow raffle tickets to be sold online and
for winning tickets to be drawn online. Instead of
needing to participate in person, an individual from
Hyder could buy a raffle ticket to support a charity
hundreds of miles away in Nome and vice versa.
Modernizing charitable gaming by allowing online
ticket sales for raffles and classics will give
nonprofit organizations across Alaska an opportunity
to increase their fundraising and expand their
charitable efforts in our communities.
1:37:15 PM
MS. WILTERDINK read the sectional analysis for SB 201 into the
record:
Sec. 1 AS 05.15.060(a) Page 1, Lines 4-14, & Page 2,
Lines 1-31
Amends AS 05.15.060(a) by adding subsection (11) to
direct the Department of Revenue to adopt regulations
to establish standards for online ticket sales to
ensure compliance with charitable gaming laws,
including age and location verification.
Sec. 2 AS 05.15.640 Page 3, Lines 1-13
Amends AS 05.15.640 by adding three new subsections:
(d), (e), and (f).
Subsection (d) authorizes permittees, operators, and
holders of a multiple-beneficiary permit to use the
Internet to conduct charitable gaming activities for
raffles, lotteries, dog mushers' contests, derbies,
and many types of classics, as defined in AS
05.15.690. Subsection (d) also authorizes permittees
to draw winning tickets online.
Subsection (e) requires the purchasers of tickets to
certify that they are of legal purchasing age and not
physically present in an area that prohibits
charitable gaming at the time of the ticket sale.
Subsection (f) requires permittees, operators, and
holders of a multiple-beneficiary permit to conduct
all charitable gaming activities within the state of
Alaska, including determining the winners of any
charitable gaming activities.
Sec. 3 Page 3, Line 14
Provides for an immediate effective date
MS. WILTERDINK offered to discuss the definitions in Section 2
for classics, contests, and derbies.
CHAIR COSTELLO asked her to first clarify whether or not the
bill is proposing something new or extending an activity that is
already authorized and taking place.
MS. WILTERDINK explained that a provision in last year's
disaster declaration allowed charities in Alaska to sell raffle
tickets online. SB 201 would make that provision permanent.
CHAIR COSTELLO asked for some examples of charitable gaming
activities.
1:40:20 PM
MS. WILTERDINK recounted that the Big Bull Moose Derby is a
contest in which prizes are awarded based on the spread of moose
antlers; the Cabbage Classic is a game of chance where prize
money is awarded for the closest guess of the weight of the
winner of the Giant Cabbage Weigh-Off at the Alaska State Fair;
the Canned Salmon Classic is a game of chance in which prize
money is awarded for the guess closest to the total number of
cases of canned salmon that will be packed at the Petersburg
salmon canneries during a certain timeframe; a Crane Classic is
a game of chance in which prize money is awarded for the closest
time of arrival of the first Sandhill Crane to a particular
location; a fish derby is a contest in which prizes are awarded
for catching fish; a goose classic is similar to a crane classic
but specifically for the arrival of the first goose to arrive in
the spring at Creamers Field in Fairbanks or the Kenai River
flats. The latter must be run by the Fairbanks Montessori
Association, the Friends of Creamers Field, or the Kenai Chamber
of Commerce. As a general rule, she said these are all games of
chance and prize money is awarded.
1:42:21 PM
CHAIR COSTELLO turned to invited testimony.
1:42:33 PM
KEVIN KEHOE, President, Alaska Wild Sheep Foundation (AWSF),
Anchorage, Alaska, testified by invitation on SB 201 in support
of SB 201. He explained that the bill continues the current
rules [regarding online charitable gaming] that have been very
beneficial for AWSF and other conservation organizations in
Alaska. AWSF is a 501(c)(3) organization of about 700 members
and about 2,500 Facebook followers. Last year the organization
brought in about $1.2 million in gross revenue. About $300,000
of the gross came from online raffles and 85 percent of those
sales came from outside the state. He also pointed out that the
bill includes measures to help avoid common pitfalls of online
gaming and take advantage of best practices from other
jurisdictions.
MR. KEHOE highlighted the ancillary advantages to online
charitable gaming. These include: access to a broader audience;
inclusion of people who do not typically participate in
charitable gaming; increased efficiency of sales; the ability to
adapt to new norms related to venue; secure financial
transactions; faster reporting; speedier compliance; better
tracking of sales data; and continual marketing of Alaska.
MR. KEHOE restated support for SB 201, opining that there is no
reason to support small business and not allow them to leverage
the internet to increase business.
CHAIR COSTELLO thanked him for taking time to testify and making
a good case for the legislation.
1:48:37 PM
DON WINCHESTER, President, Dimond Alumni Foundation, Anchorage,
Alaska, testified by invitation in support of SB 201. He
explained that about 35 booster clubs and teams in Anchorage
fall under the umbrella of Diamond Alumni Foundation. The
organization was formed about 30 years ago to help schools
manage fundraising activities. Raffles have always been an
integral part of fundraising, and this was interrupted during
the COVID-19 pandemic because the students could not sell
tickets in person. Allowing tickets to be sold and winners drawn
by using the internet was a game changer. It also reflects
changing times and the fact that young people are very
comfortable using the internet. Online sales now are seen as an
integral part of fundraising. He clarified that despite the
name, Dimond Alumni Foundation serves several high schools and
well over half of the elementary schools in Anchorage. He
restated support for SB 201.
CHAIR COSTELLO thanked him for testifying and for everything he
had done for Alaska and Anchorage to ensure that every young
person is able to participate, regardless of their sport.
MR. WINCHESTER said the raffles have made it possible for every
youth who wants to play to have the opportunity to do so.
SENATOR REVAK thanked Mr. Winchester and Mr. Kehoa for what they
had done in the community. He agreed with Mr. Kehoa's
observation that because of this policy change, more revenue is
coming from out of state to support nonprofits and the Alaska
Department of Fish and Game (ADF&G).
MR. WINCHESTER opined that participation would expand as people
get more comfortable with online gaming.
1:54:26 PM
JOHN STURGEON, President, Safari Club International -Alaska,
Anchorage, Alaska, provided invited testimony in support of SB
201. He stated that the Safari Club mission is to protect and
enhance hunting opportunities for the Alaska hunting community.
The organization also sponsors hunts for Wounded Warriors and
other veterans, youth camping and shooting programs, wildlife
conservation projects, ADF&G programs, college scholarships, and
outdoor education. As a nonprofit they must raise all funds
through banquets and raffles. He mentioned a governor's tag and
guided hunt raffle that is expected to bring in more than
$500,000. After expenses, the proceeds are split with 70 percent
going to ADF&G and 30 percent to the Safari Club. This money is
spent on wildlife programs. In this particular raffle, 54
percent of the sales were from nonresidents. Also, the funds
that go to fish and game are matched 3:1 with Pittman-Robinson
dollars. He restated strong support for SB 201.
1:56:28 PM
DAVID LAMBERT, representing self, Fairbanks, Alaska, testified
in support of SB 201. He stated he is a charitable gaming
operator and online sales have been very beneficial. He thanked
the committee for introducing the bill and stressed the
importance of its passage.
1:57:05 PM
At ease
1:57:21 PM
CHAIR COSTELLO reconvened the meeting and opened public
testimony on SB 201.
1:57:34 PM
MICHELLE DEWITT, Executive Director, Bethel Community Services
Foundation, Bethel, Alaska, testified in support of SB 201. She
reported that the organization operates the Kuskokwim Ice
Classic. Being able to move the ice classic online last year was
a great opportunity to use technology to reduce human errors and
substantially expand the reach of the classic. The net proceeds
from the contest go to local nonprofit groups, primarily for
youths and animal rescue. She restated strong support for SB
201.
2:00:01 PM
CHAIR COSTELLO discerned nobody else wished to comment and
closed public testimony on SB 201.
2:00:06 PM
At ease
2:01:23 PM
CHAIR COSTELLO reconvened the meeting.
2:01:30 PM
SENATOR MICCICHE offered his belief that the fiscal note for SB
201 should be zero rather than indeterminate. He said the
Department of Revenue does not know what the incremental impact
to state revenues might be from online gaming, but there ought
to be a bottom line on what qualifies as indeterminate and his
belief is that this goes beyond the bottom line.
2:02:18 PM
SENATOR MICCICHE moved to eliminate the indeterminate part of
the fiscal note, thereby making it zero. He highlighted that the
fiscal note analysis says that the "potential incremental impact
to state revenues is insignificant."
2:03:25 PM
SENATOR REVAK objected to remind members that this is already in
practice and he could not agree more with the President's
comments.
SENATOR REVAK removed his objection.
CHAIR COSTELLO found no objection and the motion to zero the
fiscal note for SB 201 passed.
2:04:10 PM
SENATOR REVAK moved to report SB 201, work order 32-LS1509\A,
from committee with individual recommendations and fiscal
note(s) that the committee had zeroed.
CHAIR COSTELLO found no objection and SB 201 with the zeroed
fiscal note moved from the Senate Labor and Commerce Standing
Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 201 Sponsor Statement.pdf |
SL&C 2/21/2022 1:30:00 PM |
SB 201 |
| SB 201 Sectional Analysis version A.pdf |
SL&C 2/21/2022 1:30:00 PM |
SB 201 |
| SB 201 Fiscal Note 2476 - DOR.pdf |
SL&C 2/21/2022 1:30:00 PM |
SB 201 |
| SB 201 Fiscal Note 2476 - DOR updated 2.21.22.pdf |
SL&C 2/21/2022 1:30:00 PM |
SB 201 |
| SB 201 Written Testimony Received as of 2.20.22.pdf |
SL&C 2/21/2022 1:30:00 PM |
SB 201 |
| SB 201 Written Testimony Received as of 2.21.22.pdf |
SL&C 2/21/2022 1:30:00 PM |
SB 201 |