Legislature(2021 - 2022)ADAMS 519

05/12/2022 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 201 USE OF INTERNET FOR CHARITABLE GAMING TELECONFERENCED
Heard & Held
+= SB 204 HUNTING PERMIT/TAG AUCTIONS/RAFFLES TELECONFERENCED
Heard & Held
SENATE BILL NO. 201 am                                                                                                        
                                                                                                                                
     "An  Act relating  to charitable  gaming online  ticket                                                                    
     sales  and activities;  relating  to charitable  gaming                                                                    
     proceeds; and providing for an effective date."                                                                            
                                                                                                                                
1:35:31 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick indicated that  SB 201 was previously heard                                                                    
in   committee  on   May  3,   2022.   She  commented   that                                                                    
Representative Johnson joined the meeting.                                                                                      
                                                                                                                                
Representative  Wool   MOVED  to  ADOPT  Amendment   1,  32-                                                                    
LS1509\A.A.1 (Radford, 5/2/22) (copy on file):                                                                                  
                                                                                                                                
     Page 4, following line 21:                                                                                                 
     Insert a new subsection to read:                                                                                           
                                                                                                                                
     "(g) A  permittee, operator, or  holder of  a multiple-                                                                    
     beneficiary  permit  conducting  a  raffle  or  lottery                                                                    
     under (d)  of this section shall  advertise the maximum                                                                    
     number of  available raffle or  lottery tickets  at the                                                                    
     beginning  of   the  raffle.  The  maximum   number  of                                                                    
     available  raffle   or  lottery  tickets  may   not  be                                                                    
     increased after advertisement."                                                                                            
                                                                                                                                
Co-Chair Merrick OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative  Wool explained  that  under current  statute                                                                    
when an  organization sold paper  tickets there had to  be a                                                                    
finite number and each ticket  had to be numbered. He wanted                                                                    
the  same  type  of  system for  online  raffle  or  lottery                                                                    
tickets and the  language in the bill was  not explicit. The                                                                    
amendment  required   the  organization  to   advertise  the                                                                    
maximum number of tickets so  people can determine the odds.                                                                    
In addition,  the bill  uses the  words  raffle  or lottery                                                                     
since that was  the language used in statute.  He noted that                                                                    
classics,  like  the  Nenana Ice  Classic  was  specifically                                                                    
defined in law.                                                                                                                 
                                                                                                                                
1:37:26 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick WITHDREW her OBJECTION.                                                                                        
                                                                                                                                
There being NO further OBJECTION, Amendment 1 was ADOPTED.                                                                      
                                                                                                                                
1:37:37 PM                                                                                                                    
                                                                                                                                
Representative Carpenter MOVED to ADOPT Amendment 2, 32-                                                                        
LS1509\A.A.2 (Radford, 5/3/22) (copy on file):                                                                                  
                                                                                                                                
     Page 1, line 2, following "proceeds;":                                                                                     
     Insert   "establishing   the  Kenai   River   Freeze-Up                                                                    
     Classic;"                                                                                                                  
                                                                                                                                
     Page 2, following line 31:                                                                                                 
     Insert new bill sections to read:                                                                                          
     "* Sec. 2. AS 05.15.l00(a) is amended to read:                                                                             
     (a)   The  department   may  issue   a   permit  to   a                                                                    
     municipality  or  qualified  organization.  The  permit                                                                    
     gives  the municipality  or qualified  organization the                                                                    
     privilege of  conducting bingo, raffles  and lotteries,                                                                    
     pull-tab games, freeze-up  classics, ice classics, race                                                                    
     classics,  rain   classics,  goose   classics,  mercury                                                                    
     classics,   deep   freeze   classics,   canned   salmon                                                                    
     classics,  salmon classics,  king salmon  classics, dog                                                                    
     mushers'   contests,   snow  classics,   snow   machine                                                                    
     classics,   fish   derbies,  animal   classics,   crane                                                                    
     classics,  cabbage classics,  Calcutta pools,  big bull                                                                    
     moose derbies, and contests of skill.                                                                                      
                                                                                                                                
     * Sec. 3. AS 05.15.l l S(c) is amended to read:                                                                            
     (c) A  permittee may  not contract  with more  than one                                                                    
     operator  at  a  time  to  conduct  the  same  type  of                                                                    
     activity. For  the purposes  of this  subsection, bingo                                                                    
     games,  raffles, lotteries,  pull-tab games,  freeze-up                                                                    
     classics, ice  classics, race classics,  rain classics,                                                                    
     goose   classics,   mercury   classics,   deep   freeze                                                                    
     classics,  canned  salmon  classics,  salmon  classics,                                                                    
     king  salmon  classics,  dog  mushers'  contests,  snow                                                                    
     classics, snow  machine classics, fish  derbies, animal                                                                    
     classics,  crane classics,  cabbage classics,  big bull                                                                    
     moose  derbies,  and  contests  of  skill  are  each  a                                                                    
     different type of activity."                                                                                               
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
     Page 4, following line 7:                                                                                                  
     Insert a new bill section to read:                                                                                         
     "* Sec. 6. AS 05.15.l 80(b) is amended to read:                                                                            
     (b)  With the  exception of  raffles, lotteries,  bingo                                                                    
     games,   pull-tab  games,   freeze-up  classics,   race                                                                    
     classics,  rain   classics,  goose   classics,  mercury                                                                    
     classics, deep freeze  classics, dog mushers' contests,                                                                    
     snow  classics, snow  machine  classics, canned  salmon                                                                    
     classics,  salmon  classics,   animal  classics,  crane                                                                    
     classics,  cabbage classics,  Calcutta pools,  big bull                                                                    
     moose derbies,  and king salmon classics,  a permit may                                                                    
     not  be  issued  for  an activity  under  this  chapter                                                                    
     unless  it existed  in the  state in  substantially the                                                                    
     same form  and was conducted in  substantially the same                                                                    
     manner  before January  1, 1959.  A permit  may not  be                                                                    
     issued for  a snow  machine classic under  this chapter                                                                    
     unless  it has  been  in existence  for  at least  five                                                                    
     years before the permit is  issued. A permit may not be                                                                    
     issued for an animal  classic under this chapter unless                                                                    
     it was in existence before November 1, 2002."                                                                              
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 4, following line 21:                                                                                                 
     Insert a new bill section to read:                                                                                         
     "* Sec.  8. AS 05 .15  .690 is amended by  adding a new                                                                    
     paragraph  to read:  (50) "freeze-up  classic" means  a                                                                    
     game of chance in which a  prize of money is awarded by                                                                    
     the drawing  of lot  among persons who  correctly guess                                                                    
     whether a  body of  water or  watercourse in  the state                                                                    
     freezes by the date  determined by the administrator of                                                                    
     the  game and  is limited  to a  Kenai River  Freeze-Up                                                                    
     Classic operated  and administered by the  Kenai Rotary                                                                    
     Club,  the  Soldotna Rotary  Club,  or  jointly by  the                                                                    
     Kenai Rotary Club and the Soldotna Rotary Club."                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Delete all material and insert:                                                                                            
     "* Sec. 10.  The uncodified law of the  State of Alaska                                                                    
     is amended by adding a new section to read:                                                                                
     TRANSITION: REGULATIONS. The  Department of Revenue may                                                                    
     adopt regulations  necessary to  implement secs.  2, 3,                                                                    
     6,  and 8  of  this Act.  The  regulations take  effect                                                                    
     under AS 44.62 (Administrative  Procedure Act), but not                                                                    
     before  the effective  date of  the law  implemented by                                                                    
     the regulation.                                                                                                            
     * Sec.  11. Sections 2,  3, 6, and  8 of this  Act take                                                                    
     effect January 1, 2023.                                                                                                    
     * Sec. 12.  Except as provided in sec. 11  of this Act,                                                                    
     this   Act   takes    effect   immediately   under   AS                                                                    
     0l.10.070(c)."                                                                                                             
                                                                                                                                
Co-Chair Merrick OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Carpenter  explained that the  amendment that                                                                    
would add freeze-up  classics that was the  opposite of when                                                                    
the  ice  thawed  and  happened  when  the  ice  froze.  The                                                                    
amendment specifically addressed and  would enable the Kenai                                                                    
River Ice Classic.                                                                                                              
                                                                                                                                
Vice-Chair   Ortiz  asked   how  freeze   up  was   defined.                                                                    
Representative Carpenter had no  idea. He thought there were                                                                    
likely  multiple ways  to create  an understanding  with the                                                                    
public.  He was  not  entirely sure  what  the criteria  for                                                                    
winning was but the concept was similar to a thaw classic.                                                                      
                                                                                                                                
1:39:20 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick WITHDREW her OBJECTION.                                                                                        
                                                                                                                                
There being NO further OBJECTION, Amendment 2 was ADOPTED.                                                                      
                                                                                                                                
1:39:31 PM                                                                                                                    
                                                                                                                                
Representative Wool MOVED to ADOPT Amendment 3, 32-                                                                             
LS1509\A.A.3 (Radford, 5/3/22) (copy on file):                                                                                  
                                                                                                                                
     Page 3, line 21, following "lottery":                                                                                      
                                                                                                                                
     Insert "that  are not derived from  online ticket sales                                                                    
     under AS 05.15.640(d)"                                                                                                     
                                                                                                                                
Co-Chair Merrick OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative  Wool explained  the amendment.  He indicated                                                                    
that amendment 3 would close  a loophole. He pointed to page                                                                    
3, line 21 of the bill  and noted that the language would be                                                                    
inserted after  subsection (3) and affected  the subsections                                                                    
(A) through (C). He delineated  that currently, it was legal                                                                    
to hold  a raffle  or lottery to  aid candidates  for public                                                                    
office, or for groups that  support or oppose candidates, or                                                                    
for  political  parties  or groups.  He  deemed  that  since                                                                    
online  sales  were  offered  nationwide  and  globally,  if                                                                    
online tickets were  used for such purposes,  it could bring                                                                    
in  thousands or  millions  of dollars  and  could open  the                                                                    
floodgates  for political  contributions in  the guise  of a                                                                    
lottery.  He  believed  that   paper  tickets  limited  such                                                                    
outcomes, and it was not the intention of the legislation.                                                                      
                                                                                                                                
Co-Chair Merrick WITHDREW her OBJECTION.                                                                                        
                                                                                                                                
Representative  Carpenter OBJECTED.  He  asked  if the  bill                                                                    
sponsor supported the amendment.                                                                                                
                                                                                                                                
SENATOR MIA  COSTELLO, SPONSOR, had not  previously seen the                                                                    
amendment but based on the explanation she was supportive.                                                                      
                                                                                                                                
Representative Carpenter WITHDREW his OBJECTION.                                                                                
                                                                                                                                
There being NO further OBJECTION, Amendment 3 was ADOPTED.                                                                      
                                                                                                                                
1:42:47 PM                                                                                                                    
                                                                                                                                
Representative  LeBon  MOVED  to   ADOPT  Amendment  4,  32-                                                                    
LS1509\A.A.5 (Radford, 5/11/22) (copy on file):                                                                                 
                                                                                                                                
     Page 4, following line 21:                                                                                                 
     Insert a new subsection to read:                                                                                           
                                                                                                                                
     "(g) A  permittee, operator, or  holder of  a multiple-                                                                    
     beneficiary  permit  conducting  a  raffle  or  lottery                                                                    
     under (d)  of this section shall  advertise the maximum                                                                    
     number of  available raffle or  lottery tickets  at the                                                                    
     beginning  of   the  raffle.  The  maximum   number  of                                                                    
     available raffle  or lottery  tickets may  be unlimited                                                                    
     if the  maximum number is advertised  as unlimited. The                                                                    
     maximum number  of available raffle or  lottery tickets                                                                    
     may not be increased after advertisement."                                                                                 
                                                                                                                                
Co-Chair Merrick OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative   LeBon    explained   the    amendment.   He                                                                    
communicated  that  Amendment  4  was  almost  identical  to                                                                    
Amendment  1 except  for the  following language  :  may  be                                                                    
unlimited   if  the   maximum   number   is  advertised   as                                                                    
unlimited.  He exemplified a fifty  percent to fifty percent                                                                    
(50/50) raffle  that were common  at school  sporting events                                                                    
where the number  of tickets sold was  unlimited because the                                                                    
pot  grew as  more  tickets  were sold.  A  player of  50/50                                                                    
raffles  wanted as  many  tickets sold  as  possible so  the                                                                    
winnings  would increase.  He commented  that the  amendment                                                                    
would  allow that  type of  raffle and  agreed it  should be                                                                    
advertised as unlimited ticket sales.                                                                                           
                                                                                                                                
Representative Wool  agreed with Representative  LeBon about                                                                    
the 50/50 raffle. He noted  that it was already addressed in                                                                    
regulation where it  was called a  split the  pot.  He added                                                                    
that the  limitation on a split  the pot was that  in had to                                                                    
happen over  a single  day and  sold only  at the  event. He                                                                    
maintained  that  there  was  already  uncodified  law  that                                                                    
covered  split the  pot raffles  and other  types of  chance                                                                    
games like  pull tabs  and bingo.  He thought  the amendment                                                                    
was  unnecessary.  He  noted  that  Alaska  lacked  a  state                                                                    
lottery that operated  on the same concept.  He worried that                                                                    
the  amendment  would  open  the  door  to  state  lotteries                                                                    
because it lacked limiting language.                                                                                            
                                                                                                                                
1:46:58 PM                                                                                                                    
                                                                                                                                
CLAIRE  RADFORD,  LEGISLATIVE   COUNSEL,  LEGISLATIVE  LEGAL                                                                    
SERVICES (via teleconference), confirmed  that split the pot                                                                    
raffles currently  existed in regulation.  She was  not sure                                                                    
that  split  the pot  raffles  would  be exempted  with  the                                                                    
language  in Amendment  5. She  advised  that the  unlimited                                                                    
language be added to the amendment.                                                                                             
                                                                                                                                
Representative Wool was confused  by Ms. Radfords  comments.                                                                    
He asked  for clarification. Ms. Radford  responded that she                                                                    
had  been  speaking  to  Amendment  4.  She  clarified  that                                                                    
without  the  language,   the maximum  number  of  available                                                                    
raffle  or lottery  tickets may  be unlimited   was included                                                                    
she was not confident a split  the pot raffle would not fall                                                                    
under the new subsection without the language included.                                                                         
                                                                                                                                
Co-Chair Merrick  referenced Amendment 1 and  noted that Ms.                                                                    
Radford  had  drafted  the  amendment.   She  asked  if  the                                                                    
Amendments  1 and  4  were basically  the  same without  the                                                                    
"unlimited"   portion.   Ms.   Radford   answered   in   the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz deemed  that  the amendment  did not  only                                                                    
speak to 50/50 raffles and  applied to many types of raffles                                                                    
and lotteries. The distinction with  Amendment 4 was that it                                                                    
was  legal  to  market  them   online  as  long  as  it  was                                                                    
advertised as unlimited.                                                                                                        
                                                                                                                                
1:50:13 PM                                                                                                                    
                                                                                                                                
Representative  LeBon  asked to  hear  an  opinion from  the                                                                    
sponsor.  He  was  not  trying  to  hold  up  the  bill.  He                                                                    
attempted to  make it clear  that sometimes the goal  was to                                                                    
sell unlimited tickets.                                                                                                         
                                                                                                                                
Co-Chair  Merrick asked  if  a 50/50  split  the pot  raffle                                                                    
ticket could be sold online  if the bill passed. Ms. Radford                                                                    
replied  that  the  regulations required  a  split  the  pot                                                                    
raffle be conducted at a single  event at a single time with                                                                    
all players  present. She deduced  that it was  not possible                                                                    
to conduct a split the pot raffle online.                                                                                       
                                                                                                                                
Co-Chair Merrick asked whether a  person who was not present                                                                    
won or if a new number would have to be redrawn.                                                                                
                                                                                                                                
1:51:48 PM                                                                                                                    
                                                                                                                                
Ms. Radford responded  that she was uncertain  how it worked                                                                    
in practice.  She deemed that  it may mean all  players must                                                                    
be present to  purchase the ticket. She  deferred the answer                                                                    
to the department. She offered  to investigate the issue and                                                                    
report to the committee.                                                                                                        
                                                                                                                                
Representative LeBon offered a lighthearted comment.                                                                            
                                                                                                                                
1:53:09 PM                                                                                                                    
                                                                                                                                
Representative  Johnson  stated  her  understanding  of  the                                                                    
amendments.  She ascertained  that  due to  the adoption  of                                                                    
Amendment 1, potentially the unlimited  split the pot raffle                                                                    
tickets  would not  be allowed.  She asked  whether she  was                                                                    
correct. Ms.  Radford answered  that the  organization could                                                                    
offer  a split  the  pot  raffle but  would  need  to set  a                                                                    
maximum number  of tickets and  the number would need  to be                                                                    
advertised. Representative Johnson  stated her understanding                                                                    
was the unlimited language was  necessary to conduct a split                                                                    
the  pot raffle.  She  asked if  the  committee adopted  the                                                                    
amendment with  the intent  to allow  split the  pot raffles                                                                    
could it  result in  a broader effect  of allowing  a raffle                                                                    
awarding  prizes  to  sell unlimited  tickets.  Ms.  Radford                                                                    
answered in the affirmative.                                                                                                    
                                                                                                                                
1:55:18 PM                                                                                                                    
                                                                                                                                
Representative Johnson liked  the idea of the  split the pot                                                                    
and liked the idea of Amendment  4 but did not like the idea                                                                    
of unlimited tickets for all  raffles. She hoped there was a                                                                    
hybrid compromise that would work.                                                                                              
                                                                                                                                
Representative Wool  pointed out  that currently  lottery or                                                                    
raffle tickets had  to be numbered and  also unlimited split                                                                    
the  pot  raffles were  allowed,  therefore,  split the  pot                                                                    
raffles were  already covered under law.  He summarized that                                                                    
currently simultaneous unlimited split  the pot and numbered                                                                    
tickets were allowed.  He was confused by  Amendment 4 since                                                                    
the bill  dealt with online  raffles or lotteries  and split                                                                    
the pot was  conducted in person. He wondered  how split the                                                                    
pot raffles would  work online, but if it  happened it would                                                                    
likely need to  follow the same regulations.  He was willing                                                                    
to amend  the amendment  to specify it  covered a  split the                                                                    
pot or 50/50 raffle. He felt  that it would cover the issue.                                                                    
He  did not  want  to  complicate the  bill  any further  by                                                                    
allowing language  that might be  interpreted as  allowing a                                                                    
state lottery.                                                                                                                  
                                                                                                                                
1:57:38 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:09:48 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  LeBon  explained   that  the  committee  was                                                                    
discussing  Amendment  4  that  would allow  for  raffle  or                                                                    
lottery tickets  in an  unlimited number to  be sold  if the                                                                    
raffle or  lottery was advertised as  unlimited. He wondered                                                                    
whether the  Department of Revenue  (DOR) had an  opinion on                                                                    
whether  that would satisfy disclosure for the player.                                                                          
                                                                                                                                
KATRINE MITCHELL,  CHARITABLE GAMING PROGRAM,  DEPARTMENT OF                                                                    
REVENUE  (via   teleconference),  introduced   herself.  She                                                                    
responded  that currently  under raffle  rules there  was no                                                                    
limit. She  asked if  there was a  limit proposed  under the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Senator Costello replied that  the version that was referred                                                                    
to  the  committee  did  not  have  a  limit;  however,  the                                                                    
recently  adopted  Amendment  1 required  that  the  maximum                                                                    
number of available tickets were advertised.                                                                                    
                                                                                                                                
2:12:06 PM                                                                                                                    
                                                                                                                                
Ms.  Mitchell  asked  Representative  LeBon  to  repeat  the                                                                    
question.                                                                                                                       
                                                                                                                                
Representative  LeBon repeated  his question  and elaborated                                                                    
on  the issue  of split  the  pot raffles  where sales  were                                                                    
unlimited.  He reiterated  that  Amendment  1 would  require                                                                    
some disclosure if  the number of sales  were unlimited. Ms.                                                                    
Mitchell  asked  if  Representative  LeBon  was  asking  her                                                                    
opinion about  disclosing the number of  raffle tickets sold                                                                    
as unlimited.                                                                                                                   
                                                                                                                                
Representative LeBon asked to  hear from Representative Wool                                                                    
who had deduced that Amendment 4 may be unnecessary.                                                                            
                                                                                                                                
Representative  Wool explained  Amendment  1. He  understood                                                                    
that  lottery  and  raffle  tickets  in  Alaska  had  to  be                                                                    
numbered. He  considered that  perhaps they  only had  to be                                                                    
numbered  and  there was  no  limit.  He furthered  that  by                                                                    
moving to  an online raffle  market, the market  became much                                                                    
larger and theoretically worldwide.  He believed that people                                                                    
wanted  to know  how many  tickets were  being sold  so they                                                                    
could  deduce  the  odds  of winning.  He  asked  if  raffle                                                                    
tickets had to be numbered.                                                                                                     
                                                                                                                                
2:15:08 PM                                                                                                                    
                                                                                                                                
Ms.  Mitchell  answered that  currently  tickets  had to  be                                                                    
consecutively numbered but there was  no limit and there was                                                                    
not a requirement to specify  the ticket was some number out                                                                    
of   the  total   number   available.  Representative   Wool                                                                    
explained that  Amendment 1 required  the seller  to specify                                                                    
the  maximum  number  of  raffle  tickets.  He  stated  that                                                                    
Representative LeBon  had mentioned  split the  pot raffles.                                                                    
He  thought Amendment  4 was  unneeded for  a split  the pot                                                                    
raffle  because it  was already  covered  in regulation.  He                                                                    
asked  whether he  was request.  Ms. Mitchell  answered that                                                                    
with  a standard  raffle the  tickets must  be consecutively                                                                    
numbered; however, there  was a carve out for  split the pot                                                                    
or 50/50  raffles. She stated  that if the 50/50  raffle was                                                                    
held at one  location at one time with  all players present,                                                                    
the seller  was not  required to  print out  raffle tickets,                                                                    
they merely used roll tickets.                                                                                                  
                                                                                                                                
2:17:29 PM                                                                                                                    
                                                                                                                                
Representative  Wool referenced  the introduction  of online                                                                    
sales. He asked  how the seller would  satisfy the numbering                                                                    
requirement. He guessed  that there would be  a receipt with                                                                    
a number. He  asked if Amendment 1 would  change the current                                                                    
law to say  raffle tickets were not  unlimited. Ms. Mitchell                                                                    
apologized that  she did  not have  the amendments  on hand.                                                                    
She addressed a  split the pot raffle and  confirmed that it                                                                    
required the  raffle to be held  at one event, at  one time,                                                                    
with  all players  present.  She  did not  see  how a  50/50                                                                    
raffle  could be  held online.  She ascertained  that for  a                                                                    
 regular  raffle,  if the  proposal was  to state  the total                                                                    
number of tickets it was  possible. Representative Wool read                                                                    
Amendment  1  that  passed  earlier.   He  pointed  out  the                                                                    
Amendment 4 allowed unlimited ticket  sales if advertised as                                                                    
such. He guessed that the  two amendments could coexist, and                                                                    
it  would be  up to  the raffle  holder how  they wanted  to                                                                    
carry out the raffle.                                                                                                           
                                                                                                                                
2:20:31 PM                                                                                                                    
                                                                                                                                
Senator Costello appreciated  the discussion. She understood                                                                    
that stating the  number of tickets was  common practice and                                                                    
Amendment  1 would  place  that in  statute.  She noted  the                                                                    
carve  out   for  50/50  raffles  in   existing  regulation,                                                                    
therefore;  it was  her understanding  Amendment 4  would be                                                                    
unnecessary because it was already handled in regulation.                                                                       
                                                                                                                                
Ms.  Mitchell   clarified  her  understanding  of   the  two                                                                    
amendments and asked whether she was correct.                                                                                   
                                                                                                                                
Senator Costello  ascertained that  if the  committee wanted                                                                    
the unlimited scenario  to apply to all  raffles Amendment 4                                                                    
would apply and if it  wanted the unlimited scenario to only                                                                    
apply  to  50/50  raffles  that  was  currently  handled  in                                                                    
regulation.                                                                                                                     
                                                                                                                                
Representative LeBon  maintained that it was  unnecessary to                                                                    
limit the sales opportunity if  there was full disclosure to                                                                    
the  ticket  purchaser  the raffle  was  open  to  unlimited                                                                    
sales.  He  relayed  a situation  from  personal  experience                                                                    
where the  prizes were costly,  and the  organization wanted                                                                    
to sell as many raffle tickets as possible.                                                                                     
                                                                                                                                
2:23:34 PM                                                                                                                    
                                                                                                                                
Representative  Wool  saw  both   sides  of  the  issue.  He                                                                    
countered that  there were  raffles that  had a  high dollar                                                                    
value and he believed that it  was fair for the purchaser to                                                                    
be aware  of the odds  of winning.  He asked if  Amendment 4                                                                    
were adopted,  whether it would only  apply if it was  a one                                                                    
day closed event and the  pot could not extend over multiple                                                                    
days.                                                                                                                           
                                                                                                                                
Co-Chair  Merrick  asked if  it  would  be helpful  for  Ms.                                                                    
Mitchell to see the amendments.                                                                                                 
                                                                                                                                
Ms.  Mitchell   stated  that  she  had   just  received  the                                                                    
amendments.   She   answered  that   Representative   Wool's                                                                    
statement  was correct  and added  that  ticket sales  would                                                                    
apply to the one event on one day.                                                                                              
                                                                                                                                
2:26:07 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick  asked if a  person was  considered present                                                                    
at  an event  if  they were  on a  Zoom  call. Ms.  Mitchell                                                                    
answered that it was not addressed in statute                                                                                   
                                                                                                                                
Representative  Wool ultimately  decided  that he  preferred                                                                    
Amendment 1.                                                                                                                    
                                                                                                                                
Representative   LeBon   asked    if   Representative   Wool                                                                    
maintained his objection.                                                                                                       
                                                                                                                                
Co-Chair  Merrick  clarified  it   was  her  objection.  She                                                                    
WITHDREW her OBJECTION.                                                                                                         
                                                                                                                                
There being NO further OBJECTION, Amendment 4 was ADOPTED.                                                                      
                                                                                                                                
2:27:41 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:34:08 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Merrick noted conceptual  Amendment 5 was sponsored                                                                    
by Representative Johnson and Representative Wool.                                                                              
                                                                                                                                
Representative Johnson  MOVED to ADOPT  conceptual Amendment                                                                    
5:                                                                                                                              
                                                                                                                                
     Page 4, line 22                                                                                                            
     delete "2024" and following "July 1," insert "2023."                                                                       
                                                                                                                                
     Page 4, line 6                                                                                                             
     following "used" insert "for humanitarian aid."                                                                            
                                                                                                                                
Co-Chair Merrick OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Johnson explained  the amendment. She pointed                                                                    
to Section  3, page 4, lines  4 through 7, of  the bill that                                                                    
related to online  gaming for the purpose of  sending aid to                                                                    
benefit the  people of  a country that  had been  invaded by                                                                    
another country.  She cited  Section 5,  line 22,  and noted                                                                    
the  repealer date  of  July  1, 2024.  She  noted that  the                                                                    
current language in the bill  was added specifically for aid                                                                    
to  Ukraine. The  amendment shortened  the date  window from                                                                    
2024 to 2023.                                                                                                                   
                                                                                                                                
Representative  Wool  explained  the   second  part  of  the                                                                    
amendment.  He had  spoken with  [lobbyist] Thor  Stacey who                                                                    
supported the amendment. He learned  that the added language                                                                    
was specifically  for an event  to send humanitarian  aid to                                                                    
the Ukraine.  He indicated that the  amendment clarified the                                                                    
raffle was  not to  purchase ammunition  or weapons  but was                                                                    
specifically  for  humanitarian  aid.   He  added  that  the                                                                    
amendment inserted  the  language  for  humanitarian aid  on                                                                    
page 4, line 6, after the word, used.                                                                                           
                                                                                                                                
2:36:50 PM                                                                                                                    
                                                                                                                                
Co-Chair  Merrick asked  Representative  Wool  to state  who                                                                    
Thor Stacey was.                                                                                                                
                                                                                                                                
Representative Wool  clarified that Thor  Stacey represented                                                                    
Safari  Club International,  a group  that  wanted to  raise                                                                    
funds for the people of Ukraine.                                                                                                
                                                                                                                                
Vice-Chair Ortiz  asked why the  amendment would  reduce the                                                                    
time window. Representative  Johnson stated that originally,                                                                    
she had  wanted to  delete the  paragraph altogether  due to                                                                    
her concern that the paragraph  did not specify Ukraine. She                                                                    
observed that it was hard  to oversee what the funding would                                                                    
actually  be used  for once  the money  left the  state. She                                                                    
shared that  her first concern  was about what kind  of help                                                                    
the  organization was  sending. She  stated that  making the                                                                    
sunset date a  little over one year made it  clearer that it                                                                    
was from the people of  Alaska. She stated that  shorter was                                                                    
better for matters of international politics.                                                                                   
                                                                                                                                
2:39:05 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz  asked if the  amendment presumed  that the                                                                    
war would be resolved in Ukraine by the date.                                                                                   
                                                                                                                                
Representative  Johnson  clarified  that the  bill  did  not                                                                    
specify the Ukraine and could  apply to any number of places                                                                    
such as Venezuela  or North Korea. She did not  want to make                                                                    
the amendment too broad. She  reiterated that she wanted the                                                                    
language removed  but offered the amendment  as a concession                                                                    
to  allow  the Safari  Club  fund  raiser. Vice-Chair  Ortiz                                                                    
understood there may be a  concern because the bill language                                                                    
did not  specifically speak  to Ukraine.  He asked  if there                                                                    
had to be  some sort of trust between the  purchaser and the                                                                    
organizer whether the funds would  go to Ukraine. He did not                                                                    
understand the reason for shortening  the window. It was his                                                                    
understanding  that  a  purchaser  or seller  of  a  lottery                                                                    
ticket would specify  the purpose of the  lottery. He deemed                                                                    
that the disclosure would  cover the concern. Representative                                                                    
Johnson  stated  that   in  the  perfect  world,  yes.   She                                                                    
reiterated  that once  the money  was out  of Alaska  or the                                                                    
United States (U.S.)  it was difficult to  track. She opined                                                                    
that it  set a  dangerous precedent  to have  lotteries that                                                                    
benefitted anyone outside of Alaska.                                                                                            
                                                                                                                                
2:42:31 PM                                                                                                                    
                                                                                                                                
Representative  LeBon clarified  that the  reference to  the                                                                    
Safari Club  International was incorrect and  should be made                                                                    
to  the Alaska  Professional  Hunters  Association and  Wild                                                                    
Sheep Foundation.                                                                                                               
                                                                                                                                
Representative Carpenter asked  how the administration would                                                                    
enforce the proposed amendment.                                                                                                 
                                                                                                                                
Ms.  Mitchell  responded that  they  would  need to  have  a                                                                    
definition  of invaded.  She did  not know  how it  would be                                                                    
enforced without a clear definition.                                                                                            
                                                                                                                                
2:44:34 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  restated his understanding  of the                                                                    
amendment  and  his  question.  Ms.  Mitchell  restated  her                                                                    
previous  answer.  She  thought  it would  be  difficult  if                                                                    
invaded  country  and  humanitarian aid  were  not  defined.                                                                    
Representative  Carpenter asked  if the  amendment specified                                                                    
the Ukraine, how the state would enforce the statute.                                                                           
                                                                                                                                
COLLEEN  GLOVER,  DIRECTOR,   TAX  DIVISION,  DEPARTMENT  OF                                                                    
REVENUE (via  teleconference), answered that  the department                                                                    
would have to implement  regulations and define the concepts                                                                    
therefore,  it  was  difficult   to  say  exactly  what  the                                                                    
department  would   do  until  the  bill   had  passed.  She                                                                    
furthered that the  amount going to the state  was small and                                                                    
the department  had limited resources  to perform  audits or                                                                    
quality compliance for charitable gaming.                                                                                       
                                                                                                                                
2:47:10 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  stated that if he  made a donation                                                                    
to   the  American   Cancer  Society,   he  would   have  an                                                                    
expectation  the  funds  would  go to  the  American  Cancer                                                                    
Society. He was  not assured under the  current scenario, it                                                                    
was   possible   to   guarantee  the   funds   directed   to                                                                    
humanitarian aid  would be  used for  that purpose  only. He                                                                    
believed that  it was not  enforceable. He wondered  how the                                                                    
restriction was enforceable. He  deduced the answer was that                                                                    
the matter was unenforceable.                                                                                                   
                                                                                                                                
Senator  Costello appreciated  the questions.  She had  been                                                                    
told by  the legislative legal  drafters not to  specify the                                                                    
country. She  had followed up  on a question of  whether the                                                                    
proceeds could go through another  organization like the Red                                                                    
Cross  or  UNICEF and  discovered  that  was allowable.  She                                                                    
recommended  specifying  an  organization  the  Safari  Club                                                                    
would be working with to  further focus the amendment on the                                                                    
explicit event.                                                                                                                 
                                                                                                                                
2:49:12 PM                                                                                                                    
                                                                                                                                
Representative  Thompson  deduced  that  someone  trying  to                                                                    
raise  money  for humanitarian  aid  for  the Ukraine  would                                                                    
specify  how the  funds would  be  used on  the tickets.  He                                                                    
reasoned  that  no one  would  by  the tickets  if  specific                                                                    
information was not  listed on the tickets. He  was in favor                                                                    
of the amendment.                                                                                                               
                                                                                                                                
Co-Chair Merrick  stated her office  would reach out  to the                                                                    
Safari  Club on  its objective  on  how the  funds would  be                                                                    
used.                                                                                                                           
                                                                                                                                
2:50:58 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
                                                                                                                                
2:52:35 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Merrick  reiterated the proper names  of the groups                                                                    
that would  be performing the  raffles as stated  earlier by                                                                    
Representative LeBon.                                                                                                           
                                                                                                                                
Vice-Chair Ortiz  spoke to  the enforceability  question. He                                                                    
asked if  there was currently  any online raffle  tickets or                                                                    
gambling   in  Alaska.   Ms.  Mitchell   replied  that   the                                                                    
department  had   received  many  complaints   about  online                                                                    
gambling in Alaska.                                                                                                             
                                                                                                                                
Vice-Chair Ortiz  surmised online  gambling was  illegal. He                                                                    
mentioned  enforceability and  guessed  that  there was  not                                                                    
much  the state  could do  about it.  Ms. Mitchell  answered                                                                    
that  selling raffle  tickets online  was permissible  under                                                                    
the Charitable  Gaming Act. She  added that  online gambling                                                                    
was illegal and against the criminal code in Alaska.                                                                            
                                                                                                                                
Vice-Chair   Ortiz  asked   if   lotteries  were   currently                                                                    
happening online.  Ms. Mitchell answered  that organizations                                                                    
with  charitable  gaming  permits   could  hold  raffles  or                                                                    
lotteries online.                                                                                                               
                                                                                                                                
2:55:18 PM                                                                                                                    
                                                                                                                                
Ms.  Glover  clarified  that the  bill  made  online  gaming                                                                    
permanent,  which  was  currently  allowed  under  temporary                                                                    
legislation that expired in June 2022.                                                                                          
                                                                                                                                
Senator  Costello  relayed  that the  action  was  currently                                                                    
allowed  and  there  were  over  800  organizations  holding                                                                    
online  charitable gaming.  She  furthered  that they  would                                                                    
lose the  ability to hold  online gaming  at the end  of the                                                                    
fiscal  year. She  reminded  Representative  Ortiz that  the                                                                    
temporary authorization  happened in  response to  the COVID                                                                    
pandemic.  The  bill  would make  online  charitable  gaming                                                                    
permanent.  The  section  about Ukraine  was  added  on  the                                                                    
Senate floor.                                                                                                                   
                                                                                                                                
Representative Wool  returned to the issue  about support of                                                                    
another  country.  He  determined that  a  country  invading                                                                    
another country  was very broad.  He discussed  the entities                                                                    
currently organizing a raffle  for Ukraine. He had suggested                                                                    
that its members donate to  UNICEF but the organizers wanted                                                                    
to  hold  a  raffle.  He   agreed  that  the  provision  was                                                                    
unenforceable,  and he  was torn  on the  issue. He  was not                                                                    
convinced it was  for the best. The  amendment shortened the                                                                    
provision to one  year. He did not believe there  would be a                                                                    
lot of  raffles related to  the provision in that  amount of                                                                    
time. He believed that the language was concerning.                                                                             
                                                                                                                                
Representative Carpenter CALLED the PREVIOUS QUESTION.                                                                          
                                                                                                                                
2:59:05 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:59:28 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Merrick WITHDREW her OBJECTION.                                                                                        
                                                                                                                                
There being NO further OBJECTION, Amendment 5 was ADOPTED.                                                                      
                                                                                                                                
SB  201 am  was  HEARD  and HELD  in  committee for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
2:59:54 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:04:28 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
SB 201 Public Testimony Rec'd by 051222_.pdf HFIN 5/12/2022 1:30:00 PM
SB 201
SB 204 Amendment 1 Josephson 051222.pdf HFIN 5/12/2022 1:30:00 PM
SB 204
SB 201 Amendments 1-4 051222.pdf HFIN 5/12/2022 1:30:00 PM
SB 201
SB 201 Amendment 5 Johnson Wool 051222.pdf HFIN 5/12/2022 1:30:00 PM
SB 201
HB 66 Public Testimony Rec'd by 051222_.pdf HFIN 5/12/2022 1:30:00 PM
HB 66