Legislature(2005 - 2006)CAPITOL 17

01/31/2005 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 35 EXTEND BD ARCHITECTS/ENGINEERS/SURVEYORS TELECONFERENCED
Moved Out of Committee
*+ HB 61 CHARITABLE GAMING; CALCUTTA POOLS TELECONFERENCED
Moved CSHB 61(L&C) Out of Committee
Bills Previously Heard/Scheduled
= HB 15 SEASONAL HUNT/FISH LODGE LIQUOR LICENSE
Moved CSHB 15(L&C) Out of Committee
                                                                                                                              
HB  61-CHARITABLE GAMING; CALCUTTA POOLS                                                                                    
                                                                                                                                
CHAIR ANDERSON announced  that the first order  of business would                                                               
be  HOUSE BILL  NO.  61,  "An Act  relating  to  licensing for  a                                                               
Calcutta pool as a game of chance."                                                                                             
                                                                                                                                
SHALON SZYMANSKI,  Staff to Representative Lesil  McGuire, Alaska                                                               
State   Legislature,  testified   on  behalf   of  Representative                                                               
McGuire, sponsor  of HB 61.   She pointed out that  under current                                                               
state law there  is a very narrow and specific  list of allowable                                                               
games of chance  and skill for charitable purposes.   She related                                                               
that HB 61 would add Calcutta  pools to this list as an allowable                                                               
charitable  gaming event  in Alaska.   She  stated that  Calcutta                                                               
pools have  been held  in the past  and have been  shown to  be a                                                               
very  effective  way to  raise  money  for charities  across  the                                                               
state.  She said:                                                                                                               
                                                                                                                                
     The way that a Calcutta pool  is ran is that prior to a                                                                    
     golf  or  pool  tournament, teams  are  auctioned  off.                                                                    
     People then bid  on the team that they  think will win.                                                                    
     All the  money that is raised  is then put into  a pot.                                                                    
     The person who  is the high bidder on  the winning team                                                                    
     gets  a  predetermined percentage  of  that  pot.   The                                                                    
     remaining money goes to the  organization who holds the                                                                    
     event  and the  charity. ...  Calcutta pools  certainly                                                                    
     present  no  more  harm than  other  charitable  giving                                                                    
     events  such   as  rat  races  or   classics  that  are                                                                    
     currently legal under state law.                                                                                           
                                                                                                                                
LARRY MEYERS,  Deputy Director,  Tax Division,  Alaska Department                                                               
of  Revenue,  pointed  out  that  Calcutta  pools  are  currently                                                               
considered gambling,  which is illegal  in Alaska.   He commented                                                               
that the  current version of the  bill is very broad  and doesn't                                                               
limit  the types  of gaming.   In  order to  make the  pools more                                                               
reasonable for  the department to  administer, he asked  that the                                                               
legislature make the bill more restrictive.                                                                                     
                                                                                                                                
CHAIR  ANDERSON, referring  to  a  previous conversation  between                                                               
Chair Anderson  and Mr. Meyer, he  said, "I think you  wanted the                                                               
30 percent  'take-out' by the  permitted conducting the  event to                                                               
be distributed to the charities."                                                                                               
                                                                                                                                
MR. MEYER agreed.                                                                                                               
                                                                                                                                
CHAIR ANDERSON moved to adopt  CSHB61, Version 24-LS0281\G as the                                                               
working  document.   There  being  no  objection, Version  G  was                                                               
before the committee.                                                                                                           
                                                                                                                                
MS.   SZYMANSKI,  is   response  to   Representative  Guttenberg,                                                               
explained  that, for  Version  G, the  term  "Calcutta pool"  was                                                               
removed from Section 3, page 2, line 11 of HB 61.                                                                               
                                                                                                                                
VICKI  OTTE, Executive  Director, Association  of ANCSA  Regional                                                               
Corporation Presidents  and CEOs, stated that  she was testifying                                                               
in favor  of HB 61  as an avid  golfer and  as a board  member of                                                               
several  nonprofits  in  Alaska  that have  benefited  from  golf                                                               
tournaments.  She remarked:                                                                                                     
                                                                                                                                
     In this day and age,  raising money for nonprofits that                                                                    
     benefit people in need is  very difficult. ... There is                                                                    
     a group of  people in the state, however,  that love to                                                                    
     golf and play  in golf tournaments, and  they also like                                                                    
     to give money to charities.   At any golf course on any                                                                    
     given day  there is  at least  one tournament.   People                                                                    
     play in these tournaments, of  course, to have fun, but                                                                    
     they  also do  so in  order to  support those  agencies                                                                    
     that  provide necessary  benefits to  people that  need                                                                    
     help. ... There  was one premier golf  classic that was                                                                    
     ceased in 2001.  Up  until that time that special event                                                                    
     rained  over  $800,000  that  was  given  to  charities                                                                    
     throughout  the state.   ...  People and  organizations                                                                    
     like  to give  money to  charities, ...  but they  also                                                                    
     like  to  have fun  doing  it.    Golf  as a  sport  is                                                                    
     becoming  more   and  more   popular  in   this  state.                                                                    
     Calcutta's  are  a  time-honored method  of  charitable                                                                    
     fundraising, uniquely  suited to golfing events.   They                                                                    
     raise substantial  amounts of money ...  and present no                                                                    
     [more]  harm  to  the   public  than  other  charitable                                                                    
     activities, including  pull-tabs, rat races,  and other                                                                    
     classics, which are  already legal under state  law.  I                                                                    
     speak in  support of HB  61 and urge that  you consider                                                                    
     passing this bill.                                                                                                         
                                                                                                                                
CHAIR ANDERSON asked Ms. Otte is  she could explain exactly how a                                                               
Calcutta pool for a golf tournament would work.                                                                                 
                                                                                                                                
MS. OTTE replied:                                                                                                               
                                                                                                                                
     The Calcutta  is held before  the golfing  event, where                                                                    
     the  teams  are  auctioned  off for  a  certain  dollar                                                                    
     amount.   In this particular  event, 50 percent  of the                                                                    
     proceeds  went to  the  nonprofit  organization and  50                                                                    
     percent was paid back to  the golfers or the purchasers                                                                    
     of  those teams;  you purchase  a  team of  four.   And                                                                    
     they're  broken down  by percentage  so there  might be                                                                    
     ... 144 players,  I can't remember how  many teams that                                                                    
     is, but they might pick ...  the top 20 teams and break                                                                    
     down  the   proceeds  that  would  go   back  to  those                                                                    
     particular teams.                                                                                                          
                                                                                                                                
JEFF  BARNHART, Head  Professional,  Palmer  Golf Course,  stated                                                               
that he was formerly the assistant  manager of the Moose Run Golf                                                               
Course in  Anchorage, and  was the past  president of  the Alaska                                                               
Sled  dog and  Racing Association  in Anchorage.   He  commented,                                                               
"Calcutta's were  a part of  the dog  racing and the  heritage of                                                               
the Last Frontier  ... as much as they were  a fundraising effort                                                               
for golf  tournaments."  He remarked  that he has been  a part of                                                               
fundraising  efforts in  the golfing  business in  Alaska for  20                                                               
years.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  if donated  prizes are  sometimes                                                               
awarded for  the team  placement rather than  the cash,  which is                                                               
basically a take in a part of the charity.                                                                                      
                                                                                                                                
MR.  BARNHART  replied  affirmatively  and  said  that  [donating                                                               
prizes]  is one  way of  donating money  through the  trade of  a                                                               
service or a product.                                                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked if "mandating a  certain amount of                                                               
take would cause any administrative difficulties".                                                                              
                                                                                                                                
3:33:46 PM                                                                                                                    
                                                                                                                                
MR. BARNHART responded:                                                                                                         
                                                                                                                                
     I believe  it would be to  the benefit of both  the ...                                                                    
     facility   hosting  the   event   and  the   charitable                                                                    
     organization to  do it.   It certainly  would be  a lot                                                                    
     better than  any of these ...  backdoor operations that                                                                    
     go  on  throughout  the  state, and  it  would  be  our                                                                    
     pleasure  and  probably to  the  benefit  of every  ...                                                                    
     activity to be able to  administer that, whether it had                                                                    
     limits or  not, and that's  probably to the  benefit of                                                                    
     ...  both the  state and  all activities  to have  some                                                                    
     limits, and  requirements and  have it  administered to                                                                    
     some degree.   It certainly would be  something that we                                                                    
     would  look  forward to  doing  because  it is  such  a                                                                    
     super-effort. ... Eighty percent  of the tournaments at                                                                    
     any of our facilities in  the state are for fundraising                                                                    
     efforts.   And a  lot of those  events ...  looking for                                                                    
     better methods of adding to the fundraising efforts.                                                                       
                                                                                                                                
MR. BARNHART,  in response  to Representative  Rokeberg, remarked                                                               
that there  are historical accounts  of Calcutta pools  where the                                                               
proceeds  did not  go to  charity.   However, he  said, "Most  of                                                               
those  Calcuttas have  been done  away with  since the  laws have                                                               
changed here in the last few  years, and I think this legislation                                                               
would bring that ... complete turn,  and we would look forward to                                                               
raising additional funds."                                                                                                      
                                                                                                                                
REPRESENTATIVE ROKEBERG commented:                                                                                              
                                                                                                                                
     There is a  tradition in the game of golf.   It is most                                                                    
     certainly  the  game  played by  gentlemen  and  gentle                                                                    
     ladies, and  has ... protocol, etiquette  and the rules                                                                    
     are very, very  important.  But one aspect  of the game                                                                    
     is  the  fact  that,  in  order  to  develop  a  little                                                                    
     internal  competition,  is  there is  some  de  minumus                                                                    
     wagering that goes on ... If  we continue to ... try to                                                                    
     legislate every particular  activity, I'm worried about                                                                    
     it intruding on  the privacy of people  that ... engage                                                                    
     in a little private wager here  and about.  I just want                                                                    
     to go  on record saying  that ...  I hope it's  not the                                                                    
     case  that  that  we have  the  Department  of  Revenue                                                                    
     sneaking around on the first tee of the golf courses.                                                                      
                                                                                                                                
REPRESENTATIVE  GUTTENBERG pointed  out that  Calcutta pools  are                                                               
[well-defined  in the  bill], and  he  asked Mr.  Barnhart if  he                                                               
foresaw  the Calcutta  pools being  expanded out  to events  like                                                               
bowling or basketball tournaments.                                                                                              
                                                                                                                                
MR. BARNHART  answered that Calcutta  pools "could go  just about                                                               
anywhere you wanted  them to go."  As an  example, he referred to                                                               
the  Fur  Rendezvous  World   Championship  Dogsled  Race,  which                                                               
historically had a Calcutta pool.                                                                                               
                                                                                                                                
3:38:33 PM                                                                                                                    
                                                                                                                                
MR. BARNHART stated that, the way  a Calcutta pool is set up, "it                                                               
could fit  anything that had  some ... level  of competitiveness,                                                               
or competitive  game, where there's  multiple participants."   In                                                               
comparing  dog-sledding and  golf, he  said that  there are  many                                                               
things  within both  of these  activities that  regulate a  level                                                               
playing field  for all  competitors, and  "helps a  potential ...                                                               
auctioning   person  to   evaluate  what   level  they   want  to                                                               
participate."                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  asked  if  Calcutta  pools  could  be                                                               
expanded to the Great Alaska Shootout.                                                                                          
                                                                                                                                
MR. BARNHART replied, "There is no  reason why is could not.  But                                                               
... it's a much better  fundraiser when there's more participants                                                               
than  the 12  or  the 16  ...  because ...  now  you're only  ...                                                               
auctioning off 10 items instead of potentially 35 or 40 items."                                                                 
                                                                                                                                
CHAIR ANDERSON commented that the  bill's sponsor only added pool                                                               
and golf  because that's traditionally  where the  Calcutta games                                                               
are usually  played, but  "I'm sure  you could  expand it  out to                                                               
quite a few,  and I think it's  good to put that  on the record."                                                               
He noted that  Montana, North Dakota, and  Wyoming already permit                                                               
Calcutta  pool   "as  long  as   it's  charitably-gamed   with  a                                                               
percentage given to charities and to the state."                                                                                
                                                                                                                                
3:41:05 PM                                                                                                                    
                                                                                                                                
JEFF  BARNHART remarked,  "One of  the  most high-profile  things                                                               
that  the state  offers ...  is  the Iditarod,  and the  Iditarod                                                               
would be a perfect match for this situation also."                                                                              
                                                                                                                                
SHARON  MCCONNELL-GILLIS, Executive  Director, Doyon  Foundation,                                                               
stated that  the Doyon Foundation  is a 501c3  private foundation                                                               
established  in  1989  by Doyon,  Limited,  the  regional  native                                                               
corporation for Interior Alaska.  She said:                                                                                     
                                                                                                                                
     [The   foundation's]  mission   is  to   promote  self-                                                                    
     reliance,  and the  economic and  social well-being  of                                                                    
     Doyon shareholders  and descendants, and  to strengthen                                                                    
     our native culture and heritage  through education.  To                                                                    
     accomplish  this  mission,  [the  foundation  provides]                                                                    
     scholarships for higher education  to over 300 students                                                                    
     each year  that total  about $350,000.   To  award this                                                                    
     amount, the foundation relies  on a yearly contribution                                                                    
     from  [the] parent  company, Doyon,  Limited, and  also                                                                    
     revenue received from  corporate and individual donors.                                                                    
     Tuition and living costs are  quite high and the amount                                                                    
     that  is awarded  does not  nearly  fund the  students'                                                                    
     needs.   Doyon Foundation does  have a State  of Alaska                                                                    
     gaming permit that  allows us to hold  raffles and this                                                                    
     had proven  very beneficial to  raise needed  funds for                                                                    
     our scholarship  program.   However if  Calcutta's were                                                                    
     legal  the amount  raised  could  ... be  substantially                                                                    
     more,  which  in  turn   would  mean  more  scholarship                                                                    
     dollars  that we  could provide.    So therefore  Doyon                                                                    
     Foundation is in support of [HB 61].                                                                                       
                                                                                                                                
CHAIR  ANDERSON asked,  "If we  don't  pass [HB  61], doesn't  it                                                               
create a problem  in the converse, which is  now potentially it's                                                               
perceived as illegal  gaming, and all the folks that  do this for                                                               
charities may have a problem  doing the activities in the future?                                                               
... Isn't the legislation really critical?"                                                                                     
                                                                                                                                
MS.  MCCONNELL-GILLIS agreed  that Calcutta's  are very  critical                                                               
and that they benefit nonprofits a lot.                                                                                         
                                                                                                                                
STAN HARRINGTON,  Anchor Point Chamber  of Commerce,  stated that                                                               
he   also  represents   the  South   Kenai  Peninsula   Sportsman                                                               
Association.     He  explained  that  the   term  "Calcutta"  was                                                               
originally  from India,  and used  for fundraising  activities in                                                               
polo tournaments.  Since then  it's been adopted to several other                                                               
methods  of   fundraising  for  both  nonprofit   and  for-profit                                                               
organizations in the United States.   He remarked that his father                                                               
was  the world  champion  Calcutta auctioneer  in  Colorado.   In                                                               
Anchor Point, he said:                                                                                                          
                                                                                                                                
     We've  been  sponsoring  a  Calcutta  tournament  since                                                                    
     1994,  and  this  is  a  king  salmon  tournament.  ...                                                                    
     Typically we  will have  anywhere from  25 to  40 boats                                                                    
     enter  the tournament.   This  is the  sole fundraising                                                                    
     activity    for   the    South   Peninsula    Sportsmen                                                                    
     Association.  They receive 25  percent of the proceeds;                                                                    
     75  percent of  the proceeds  then go  back out  to the                                                                    
     fishermen  and  the boats.    And  how the  auction  is                                                                    
     conducted  is, the  night prior  to the  tournament, we                                                                    
     have  a  banquet,  and  I'll do  the  auction  at  that                                                                    
     banquet and all the boats  have to preregister.  And at                                                                    
     that time I'll  auction each of the  boats off; betters                                                                    
     will bid on  a boat that they feel is  going to win the                                                                    
     tournament.  ... The next  day when fishing starts, ...                                                                    
     it's  a   one-fish-wins-all;  whoever  brings   in  the                                                                    
     largest  king  salmon  wins  50  percent  of  the  pot.                                                                    
     Whoever bid on  the high boat gets 25  percent, and the                                                                    
     South   Peninsula   Sportsmen  Association   gets   the                                                                    
     remaining 25 percent, which they  utilize for a variety                                                                    
     of youth  programs, hunting safety  classes ...  in the                                                                    
     Anchor  Point and  Homer area.    I'd like  to see  the                                                                    
     Calcutta reinstated.  ... It's essential  for nonprofit                                                                    
     organizations in this  day and age to  have some method                                                                    
     to   raise   funds,   especially  when   you're   small                                                                    
     communities  ... unincorporated  communities that  have                                                                    
     no other way of raising funds.                                                                                             
                                                                                                                                
CHAIR  ANDERSON  commented, "Mr.  Harrington  brings  up a  point                                                               
that, of course,  is always either the fear  or apprehension when                                                               
a bill  like this  is brought forward,  which is,  everybody then                                                               
wants to  add in" other sports  or games, such as  salmon derbies                                                               
and dogsled races.  He said:                                                                                                    
                                                                                                                                
     I don't  know if the  sponsor's intent was to  do that.                                                                    
     I   think   from   the  associations   that   came   to                                                                    
     Representative   McGuire   it   was   just   pool   and                                                                    
     specifically golf  that they  were intending.  ... This                                                                    
     may require  an amendment. ... Then  everybody who does                                                                    
     a  Calcutta, so  it's  not illegal,  will  want to  add                                                                    
     their activity to the legislation.                                                                                         
                                                                                                                                
AMY FREEDEN, Senior Controller,  Shared Services Department, Cook                                                               
Inlet  Tribal Council,  she  said  that she  works  with over  40                                                               
nonprofit organizations  as the financial advisor.   She remarked                                                               
that  she  also  serves  on several  boards  and  volunteers  for                                                               
several nonprofit  organizations.   She stated that  she supports                                                               
HB 61  because Calcutta pools  are a very cost-effective  way for                                                               
nonprofit organizations  to raise  funds to support  their direct                                                               
services.     She  said   that  she   has  worked   with  several                                                               
organizations   that  have   had   golf   tournaments,  and   one                                                               
organization raised  $42,000 for  educational scholarships.   She                                                               
commented  that this  past  year, without  a  Calcutta pool,  the                                                               
funding  was  cut  in  half.    She  said,  "There's  over  2,000                                                               
nonprofits in the State of  Alaska and they are could potentially                                                               
benefit from this."                                                                                                             
                                                                                                                                
CHAIR ANDERSON closed public testimony.                                                                                         
                                                                                                                                
3:52:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ROKEBERG  declared   a  potential   conflict  of                                                               
interest,  "I have  an insignificant,  or perhaps  a significant,                                                               
ownership interest  in the  Settler Bay  Golf Course  in Wasilla,                                                               
Alaska.  Therefore  there is the possibility that  the passage of                                                               
this bill may affect or not  affect the activities of my business                                                               
interest.   However we're  not sure  whether it's  significant or                                                               
insignificant."                                                                                                                 
                                                                                                                                
CHAIR ANDERSON noted the conflict  and stated that Representative                                                               
Rokeberg  will  still be  required  to  vote.   He  then  offered                                                               
Conceptual Amendment 1,  which deletes the current  Section 4 and                                                               
adds a new Section 4.  He said:                                                                                                 
                                                                                                                                
     Section 4 simply defines Calcutta  pool, and it states,                                                                    
     "Calcutta  pool means  wagering on  a contest  of skill                                                                    
     limited  to   an  amateur   golf  or   pool  tournament                                                                    
     conducted  by a  permittee  in which  those who  wager,                                                                    
     bid, and  auction for the  exclusive right  to purchase                                                                    
     or  wager upon  a particular  contestant or  entrant in                                                                    
     the event.  And when the  outcome of the event has been                                                                    
     decided,  the total  wagers comprised  in  the pool  no                                                                    
     less  than  30  percent  'take-out'  by  the  permittee                                                                    
     conducting the  event is distributed  to", and  we have                                                                    
     knocked out in  the copy that it  has been distributed.                                                                    
     That last line  we have added, "to the  charities".  So                                                                    
     30 percent  at a minimum  must go  to a charity  from a                                                                    
     Calcutta  pool.    But   in  offering  this  Conceptual                                                                    
     Amendment 1  I want to  add in, and the  legal services                                                                    
     drafter  can  place  this where  necessary,  presumably                                                                    
     with  a comma  after "pool"  on the  first line  of the                                                                    
     amendment, "fishing derbies, and sled dog racing"."                                                                        
                                                                                                                                
CHAIR  ANDERSON  moved  [to  adopt  Conceptual  Amendment  1]  as                                                               
written.                                                                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG objected.                                                                                               
                                                                                                                                
CHAIR  ANDERSON  made  the friendly  amendment,  adding  "fishing                                                               
derbies and sled dog racing" to Section 4 of Version G.                                                                         
                                                                                                                                
3:54:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  commented that  perhaps the  wording could                                                               
be "professional and amateur sports tournaments".                                                                               
                                                                                                                                
REPRESENTATIVE KOTT asked for clarification  regarding the use of                                                               
the words "sports activities"; he  wondered if this would include                                                               
viewing as well as participating in sports.                                                                                     
                                                                                                                                
3:56:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOTT  said that  they need  to think  this through                                                               
further.   He then goes  on to ask if  these are sports  that you                                                               
are participating in or are they ones that are being viewed.                                                                    
                                                                                                                                
3:57:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROKEBERG  stated  his support  of  Representative                                                               
LeDoux's idea and said,                                                                                                         
                                                                                                                                
     Clearly  from  the  testimony, to  try  to  narrow  the                                                                    
     definition is going  to be problematic. ...  This is an                                                                    
     old, kind  of traditional fundraising mechanism.   I've                                                                    
     got   some   concerns    about   mandating   charitable                                                                    
     contributions....   It's  ironic  enough  that once  we                                                                    
     start  talking about  this in  the legislature,  people                                                                    
     start  shutting  these  things down;  there's  a  worry                                                                    
     about  enforcing so-called  gambling that's  been self-                                                                    
     policed for  years and now ...  all of a sudden  it's a                                                                    
     no-no.                                                                                                                     
                                                                                                                                
                                                                                                                                
REPRESENTATIVE ROKEBERG  continued by stating that  it was a                                                                    
shame  that the  government  has to  intrude  on stuff  like                                                                    
this.  He said  that  by introducing  more legislation  like                                                                    
this that more Calcuttas will be created.                                                                                       
                                                                                                                                
CHAIR  ANDERSON  announced  that  while we  have  the  conceptual                                                               
amendment before us,  the committees should go  to the witnesses.                                                               
He asked Mr.  Meyers if he had  any thoughts on how  it should be                                                               
defined and how it could be phrased.                                                                                            
                                                                                                                                
MR. MEYERS said:                                                                                                                
                                                                                                                                
     We  are working  under the  charitable gaming  statutes                                                                    
     and  regulations,  this  is  what  this  bill  is  been                                                                    
     introduced in. ... If we  issue a permit to a qualified                                                                    
     organization to  have a charitable gaming  permit, they                                                                    
     have  certain guidelines.   And  they  will lose  their                                                                    
     permit  if they're  conducting  unauthorized gaming  or                                                                    
     gambling.  In  this instance it would  be the Calcutta;                                                                    
     that  is illegal  gambling in  the state  as it  stands                                                                    
     right now.  What we're  working with under this bill is                                                                    
     trying  to  bring in  certain  types  of Calcutta  that                                                                    
     would  fit   within  the   definition  that   would  be                                                                    
     allowable under  charitable gaming.   What  we propose,                                                                    
     because   there  already   existed  by   definition  is                                                                    
     "contest of skill",  which means "a contest  or game in                                                                    
     which  prizes awarded  for the  demonstration of  human                                                                    
     skill  in  marksmanship,   races,  and  other  athletic                                                                    
     events."    So  by  it's nature  that  fits  in  nicely                                                                    
     talking  about human  sports, and  we've also  inserted                                                                    
     ... the  word "amateur" so  that we don't  get involved                                                                    
     in  ...[a situation]  where you  could have  a Calcutta                                                                    
     betting  on professional  sporting activities,  because                                                                    
     that is again taking it into a whole new realm.                                                                            
                                                                                                                                
3:59:53 PM                                                                                                                    
                                                                                                                                
CHAIR  ANDERSON  suggested  changing   [the  bill]  to  define  a                                                               
Calcutta  pool as  "wagering on  a  contest of  skill limited  to                                                               
amateur events in the state."                                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG  objected.  He commented  that there have                                                               
been  professional  golf tournaments  such  as  the Alaska  Open,                                                               
where as many as 50 professional  golfers were invited to play in                                                               
tournament.   He pointed out that  the Calcutta has been  a major                                                               
proportion of  the fundraising to  create an  actual professional                                                               
purse  for that  event.   Therefore he  stated his  opposition to                                                               
restricting the wagering to solely amateur sports.                                                                              
                                                                                                                                
MR.   MEYERS   commented    that   perhaps   "professional   golf                                                               
tournaments" could  be added  to the  wording, but  he encouraged                                                               
the committee members  to keep the word "amateur" in  for as many                                                               
activities as possible.                                                                                                         
                                                                                                                                
CHAIR  ANDERSON   asked  if  Representative  Rokeberg   would  be                                                               
satisfied with  the deletion  of the  "golf and  pool tournament"                                                               
reference and  replaced it with "amateur  events and professional                                                               
golf".                                                                                                                          
                                                                                                                                
REPRESENTATIVE LEDOUX pointed  out that if this  change was made,                                                               
the Iditarod would be eliminated.                                                                                               
                                                                                                                                
REPRESENTATIVE  KOTT   commented  that  if  Calcutta   pools  are                                                               
currently  illegal  then  with   this  bill  the  legislature  is                                                               
"legitimizing what  I would view as  illegitimate activities that                                                               
are currently  ongoing in the  state".   He said, "If  we adopted                                                               
this  amendment   like  it  is  currently   written,  then  those                                                               
activities that would be sanctioned  would be those that would be                                                               
held  within the  state,  therefore they  would  exclude ...  the                                                               
March Madness  [basketball tournament]." He asked  Mr. Meyers for                                                               
confirmation of this.                                                                                                           
                                                                                                                                
MR. MEYERS agreed with Representative  Kott's statement and said,                                                               
"That's why the  key word is 'in  the state'.  That  fits in with                                                               
the rest of the charitable activities."                                                                                         
                                                                                                                                
4:03:33 PM                                                                                                                    
                                                                                                                                
CHAIR  ANDERSON recommended  that Representative  McGuire's staff                                                               
rewrite the bill.  He withdrew  Conceptual Amendment 1.  He said,                                                               
"I still  don't think we have  a target on what  exactly we want,                                                               
and maybe consider  Mr. Harrington's concern in  Anchor Point, so                                                               
we don't debate  and throw in each sport  or interested activity,                                                               
and I  don't think we'll be  content with the final  result if we                                                               
don't have it worked out.  ... Then we'll bring the bill back."                                                                 
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that he  is concerned about the 30                                                               
percent [required to  be given to a  charitable organization] and                                                               
he asked Mr. Meyer, from  an enforcement standpoint, "how and who                                                               
has deemed this a problem in the  first place and why are we even                                                               
messing with this issue."                                                                                                       
                                                                                                                                
MR.  MEYERS replied,  "The  ... 30  percent  is actually  already                                                               
included for  certain types of  gaming activities  that currently                                                               
exist.   This  is to  ensure that  the charities  based on  using                                                               
their name  and their permit  and their efforts are  guaranteed a                                                               
certain minimum contribution back to  them.  After all that's the                                                               
purpose of  this."  He pointed  out that pull-tabs have  the same                                                               
percentage.                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG asked if 30 percent was high or low.                                                                  
                                                                                                                                
MR.  MEYERS replied  that the  30 percent  minimum is  similar to                                                               
other  types of  gaming in  the state.   He  reiterated that  the                                                               
whole point  of the Calcutta  is for  the charities and  this way                                                               
they are guaranteed a certain minimum.                                                                                          
                                                                                                                                
REPRESENTATIVE KOTT asked  Mr. Meyer if he had  found any glaring                                                               
problems in Section 4 of Version 24-LS0281\G.                                                                                   
                                                                                                                                
MR. MEYERS  stated that  the definition as  written in  Section 4                                                               
had been borrowed from a Wyoming statute.                                                                                       
                                                                                                                                
CHAIR ANDERSON announced  that the bill would be  brought back to                                                               
the  committee once  the version  was corrected  and the  working                                                               
amendment was phrased right.                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOTT  commented,  "I   think  that  the  existing                                                               
Section 4  is an appropriate section  of the bill.   I think it's                                                               
less intrusive; it  doesn't establish maximums or  minimums.  The                                                               
charities and the operators can  hold a Calcutta on whatever they                                                               
want to hold it on, whether it's fishing or golfing or bowling."                                                                
                                                                                                                                
4:07:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ROKEBERG  asked   Mr.  Meyer   what  defines   a                                                               
qualifying organization.                                                                                                        
                                                                                                                                
MR. MEYERS read from AS 05.15.690(36):                                                                                          
                                                                                                                                
     "Qualified  Organization" means  a bona  fide civic  or                                                                    
     service   organization  or   a  bona   fide  religious,                                                                    
     charitable, fraternal,  veterans, labor,  political, or                                                                    
     educational  organization,  police or  fire  department                                                                    
     and company,  dog mushers' association,  outboard motor                                                                    
     association,  or  fishing   derby  or  nonprofit  trade                                                                    
     association  in   the  state,  that   operates  without                                                                    
     profits to its  members and that has  been in existence                                                                    
     continually  for a  period of  three years  immediately                                                                    
     before  applying   for  the  license  or   permit;  the                                                                    
     organization  may  be  a  firm,  corporation,  company,                                                                    
     association, or partnership."                                                                                              
                                                                                                                                
REPRESENTATIVE ROKEBERG asked what the permitting fee costs are.                                                                
                                                                                                                                
MR. MEYERS  replied that it  is generally  $20 and "if  they have                                                               
activities of more  than [$]20,000 ... the year  before it's $50,                                                               
and if it's over [$]100,000 it's $100".                                                                                         
                                                                                                                                
REPRESENTATIVE  KOTT  moved  to   report  CSHB  61,  Version  24-                                                               
LS0281\G,  from  committee.    There  being  no  objection,  CSHB
61(L&C) was reported  from the House Labor  and Commerce Standing                                                               
Committee.                                                                                                                      
                                                                                                                              

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