Legislature(2005 - 2006)HOUSE FINANCE 519
03/16/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB108 | |
| HB61 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| HB 88 | |||
| = | HB 61 | ||
| HB 108 | |||
| SB 42 | |||
HOUSE BILL NO. 61
"An Act relating to licensing for a Calcutta pool as a
game of chance."
SHALON SZYMANSKI, STAFF, REPRESENTATIVE MCGUIRE, explained
that under current state law there is a very narrow and
specific list of allowable games of chance for charitable
purposes. This bill would add "Calcutta pool" to that list.
Calcutta pools have been held in the past to raise money for
charity. The way that one is run is that prior to the
sporting event, the teams are auctioned off and the money is
put into a pot. The person who is the high bidder on the
winning team gets a predetermined percentage of the pot and
the remaining money goes to the organization holding the
permit. Calcutta pools present no more harm to the public
than other charitable giving activities such as "rat races",
classics, and pull tabs, which are already legal.
Representative Stoltz MOVED to ADOPT work draft 24-LS0281\F,
Luckhaupt, 3/04/05. There being NO OBJECTION, it was so
ordered.
In response to Representative Weyhrauch's question, Ms.
Szymanski explained how a Calcutta pool works.
Representative Stoltz asked about the derivation of the
game. Ms. Szymanski replied that she does not know.
3:18:21 PM
Representative Hawker noted that there have been three
expansions of the statutes. He questioned why the
prohibition on municipalities conducting games of skill and
chance are not just removed. Ms. Szymanski declined to
answer.
3:20:07 PM
LARRY MEYERS, DEPUTY DIRECTOR, TAX DIVISION, ALASKA
DEPARTMENT OF REVENUE, testified via teleconference. He
noted that he oversees charitable gaming for the department.
3:20:52 PM
Vice-Chair Stoltze asked how the proposed statute would
interface with existing statute. He observed the complexity
of the statutes.
Mr. Meyer noted that Calcutta pools have been in the state
of Alaska in an unauthorized form. It would be an expansion
and would have an impact around the state. He noted that
communities from around the state could game on the winner
of the Iditarod. They would need to provide gaming permits
and reports and the state would receive one percent of the
prizes awarded. The real benefit would go to the charities.
Calcutta gaming occurs in only three other states, all in
western areas. He predicted that Calcutta pools would be
exciting events.
3:25:40 PM
Vice-Chair Stoltze observed that it would be a significant
change and questioned the department's position. Mr. Meyers
stated that there are risks and rewards with every new
program. From the charity's point of view, the activity
will be beneficial. He stressed the need to bring current
practices "above the table". He noted limitations on
participation: no one under 18 can wager.
3:28:12 PM
In response to a question from Vice-Chair Stoltze, Mr.
Meyers suggested that the scope could be limited to specific
classifications and the legislation could narrowly define
events.
3:29:22 PM
Representative Croft asked what the effect would be of
allowing entities to do whatever they want. Mr. Meyer
observed that there are social and economic impacts to the
extension of charitable gaming. He was not prepared to
comment further on the ramifications.
3:30:44 PM
VICKIE OTTE, EXECUTIVE DIRECTOR, ASSOCIATION OF ALASKA NATIVE
CLAIMS SETTLEMENT ACT (ANCSA), testified via teleconference
in support of the legislation. She observed that charitable
gaming helps to provide assistance to non-profits and people
in need. She stressed the difficulty of raising money for
charities and noted that many would participate in golf
tournaments. One Calcutta event raised $800 thousand for
charity before it was deemed to be illegal. She spoke in
support of the legislation and emphasized those that it would
help.
3:33:52 PM
SHARON MCCONNELL-GILLIS, EXECUTIVE DIRECTOR, DOYON
FOUNDATION, testified via teleconference in support of the
legislation. She observed that Doyon provides scholarships,
which rely on revenues from fundraisers and corporate
contributions. Doyon Foundation anticipates additional
scholarship dollars could be raised through Calcutta pools.
3:35:43 PM
KATHY MAYO, PRESIDENT, DOYON FOUNDATION, testified via
teleconference in support of SB 61. She opined that Calcutta
pools would bring in money from new sources.
AMY FREEDEN, SENIOR CONTROLLER, SHARED SERVICES DEPARTMENT,
COOK INLET TRIBAL COUNCIL, testified via teleconference in
support of HB 61, which would provide another tool for non-
profit fundraising. She observed the reduction of support
for non-profits and the difficulty of maintaining funds. She
thought that the Calcutta pools would be centered on golf.
3:38:44 PM
Vice-Chair Stoltze noted that the testimony centered on golf.
WILLIAM BOMAR, SETTLERS BAY, testified via teleconference in
support of HB 61. He noted that he has participated in a
number of Calcutta pools, which only benefited the players.
He stressed that the legislation would be a successful way
for non-profits and local charities to raise funds.
3:42:08 PM
STAN HARRINGTON, ANCHOR POINT CHAMBER OF COMMERCE, testified
via teleconference in support of the bill. He observed that
they have operated a Calcutta tournament for the last two
years unaware of its illegality. He echoed sentiments of
previous testifiers and encouraged passage of HB 61 with an
effective date. He added that they plan to hold a King
Salmon tournament during Mother's Day.
3:45:39 PM
CHIP WAGONER, EXECUTIVE DIRECTOR, CATHOLIC COMMUNITY
CONFERENCE (CCC), Juneau, responded to previous questions.
Each game of skill and chance should be evaluated to see its
affect on population. Addiction to gaming is the primary
issue. The Catholic community is concerned about its
effects on children and about wagering on college campuses.
If Calcutta pools cause addictive behavior there would be
concern. Three percent of gamblers are addicted, at immense
cost to society.
3:49:26 PM
Vice-Chair Stoltze noted that CCC sells raffle tickets. Mr.
Wagoner observed that they are curtailing raffle activities.
Vice-Chair Stoltze referred to testimony that indicated that
the legislation would greatly expand gaming activities and
questioned if the scope should be narrowed. Mr. Wagoner
agreed.
3:51:12 PM
Vice-Chair Stoltze MOVED to ADOPT Amendment 1 on behalf of
Representative Neuman. Co-Chair Meyer OBJECTED for the
purpose of discussion.
REPRESENTATIVE MARK NEUMAN, spoke in support of Amendment 1.
He noted that it would allow a crane classic as an
authorized form of charitable gaming. Profits would go to a
non-profit radio station in Talkeetna and to sandhill crane
land preserves.
3:53:55 PM
Representative Holm clarified that the radio station (KFAR)
in Fairbanks, a non-profit, has a goose classic. He
inquired if birds fell into the category of animal classics.
In response to a question by Representative Holm, Vice-Chair
Stoltze noted that the goose classic was passed in the mid-
eighties in Fairbanks. All of the animal classics have
specific references and are in the generic animal classic
category.
Representative Holm questioned where it would end, if there
should be statutes for every animal that comes back to
Alaska in the spring. He suggested that "animal classic"
should be identified.
3:55:38 PM
Representative Neuman observed that the Game Commission has
to identify each activity. He noted that the crane classic
refers to sandhill cranes.
Co-Chair Meyer WITHDREW his OBJECTION. Vice-Chair Stoltze
WITHDREW Amendment 1.
HB 61 was heard and HELD in committee for further
consideration.
3:57:44 PM
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