Legislature(1995 - 1996)
03/21/1995 09:15 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 146
"An Act relating to sled dog race classics."
Co-chair Halford introduced Bryce Edgmon, Legislative Aide
to Representative Foster. Mr. Edgmon testified on CSHB 146
(L&C) am.
He cited SB 66 as a cross-reference. HB 146 was amended on
the House floor to address concerns of legislators from the
interior. He indicated that the change to the bill was the
removal of the words, "sled dog race classics". This is the
gaming term that was originally used. He noted, "sled dog
race classics" was removed and "mushing sweepstakes" was
added. He said that there are smaller mushing organizations
that do conduct raffle activity and use the term "sled dog
race classics". He stressed that had legislation gone
through in its current form with "sled dog race classics",
it would have given Iditarod Trail Committee exclusive
authority to use that term. That caused some of the smaller
racing organizations concern which subsequently led to the
bill being amended on the House floor.
Senator Phillips questioned why the title is mushing
sweepstakes instead of mushing classics? Mr. Edgmon
responded that a generic term was picked. He indicated that
the term "sweepstakes" was favored. Discussion was had with
regard to the title.
Senator Donley asked why the Iditarod Trail Committee make
the decisions? Mr. Edgmon responded that there are
differing interpretations on language. The attempt in this
legislation is to place in the statutes the authority to the
trail committee to allow for game activities, and wager on
arrival times, check points and finish line into Nome.
Senator Donley asked to explore the trail committee's
authority. Mr. Edgmon responded that right now, the
statutory authority allows for wagering on the racing time
of a dog team or of a team position in the race. This bill
would allow for the wagering of the arrival times, check
points, and finish line of the Iditrod.
Co-chair Halford invited Dennis Poshard, Director,
Charitable Gaming Division, to the table. Mr. Poshard
responded to Senator Donley's question by stating that
Statute AS 05.15.690(11), under the definition of dog
mushers contest, states: "A contest in which prizes are
awarded for the correct guess of the racing time of a dog
team or of team position in the race, including prizes to
the race contestants."
Senator Donley stated that he voted against this in the
past. His concern is that unlike the other classics, this
one is ripe for potential abuse. He suggested provisions
for safeguards. His other objection to this bill is that
there are no funds collected to pay for the safeguards. Mr.
Poshard mentioned that there is a 1% tax that all permittees
pay on gaming proceeds paid annually to the division. Pull
Tabs have, in addition to the 1% tax, a 3% tax assessed when
they are purchased from the distributor.
Co-chair Halford asked what is the difference between a
mushing sweepstakes and a dog mushers contest? Mr. Poshard
responded that according to the Department of Law, and the
Division's interpretation of the statutes, there is no
difference. At this time, this type of gaming could be
conducted under the current provision of dog mushers
contests. Mr. Edgmon mentioned that there are small scale
gaming activities similar to what this bill would authorize,
but at this point it has never been conducted on a state-
wide level. The department does not have regulations
pertaining to what is legal. From the department's
viewpoint, there is potential for differing interpretation
of the language. It is envisioned that the Iditarod Trail
Committee will be doing the game activity in a large scale.
Co-chair Halford questioned how the department would deal
with the concerns that Senator Donley raised? Mr. Poshard
responded that it would be the same method being used
currently to oversee dog mushers contests as they exist.
Discussion was had on the concerns centering around
safeguards for potential abuse of the contests. Co-chair
Halford suggested a regulatory structure for the department
along with a fiscal note if necessary, to provide the safety
required for the contests.
Senator Donley suggested a higher tax rate for gambling. He
stated that gambling is exempt from equal protection under
the United States Constitution. Co-chair Halford said that
with this particular bill the only game you could tax would
be the Iditarod, and he could not support it.
Co-chair Halford invited Pam Neal, President, Alaska Chamber
of Commerce, to join the table. She stated her support of
the legislation. The Chamber's interest is that we've been
concerned about the continued funding capabilities of the
Iditarod. The Iditarod Committee raised their concerns on
funding with the board of directors of the state chamber of
commerce, at the legislative priority setting session in
December. At that time Ms. Neal stated that the Board of
Directors rejected the legislation proposed because it
contained the check-off on the permanent fund, along with
other issues. The committee subsequently reworded the
resolution. The Chamber's interest is to find a path for
supporting sled dog racing.
Senator Donley asked if the Chamber had solutions to prevent
abuses? Ms. Neal indicated it was not a matter of
discussion. The focus was on funding. She indicated
however, the Chamber would support safeguarding against
abuse.
Co-chair Halford asked that the department work with Senator
Rieger to provide a safety measure that will insure
safeguarding the games. He suggests that the legislation
stay within the title.
Co-chair Halford said that this will be held in committee
under "bills previously heard" and address it again next
week.
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