Legislature(1995 - 1996)

03/28/1995 09:15 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
       HOUSE BILL NO. 146                                                      
                                                                               
       "An Act relating to sled dog race classics."                            
                                                                               
  Co-chair  Halford   invited  Leo   Rasmussen  to   join  the                 
  committee.    Mr.  Rasmussen  spoke  to the  words  "mushing                 
  classics".   He expressed that within  five years this would                 
  potentially  provide a revenue  stream for Iditarod.   He is                 
  convinced that  it would  take away  the financing  problems                 
  that  have  plagued  Iditarod  in   the  past.  Iditarod  is                 
  responsible for making Alaska an internationally known race.                 
  It has become a premiere event in Alaska which will increase                 
  tourism.                                                                     
                                                                               
  Mr. Rasmussen testified that he has been an official checker                 
  for Iditarod.   He retired from  the Board in 1991  after 19                 
  years, but is still actively involved in trail mail. Senator                 
  Rieger asked if he thought the increasing competitiveness of                 
  the  race  has  improved  the  character  of  the  race.  He                 
  testified as to the negativity  of the race back in  1973 as                 
  compared  to now.  Mr. Rasmussen said  that there is much to                 
  be proud of  in spite of what the humane  society is saying.                 
  Co-chair Halford  agreed  to obtaining  and maintaining  the                 
  volunteer support as  much as possible.   The flavor of  the                 
  race has  changed.  It is now able to pay its bills, it does                 
  a better job economically, but along the way it has lost the                 
                                                                               
                                                                               
  earlier attitudes of the 70's.  Mr. Rasmussen indicated that                 
  it takes 10,000-20,000 volunteers to make the race work.  He                 
  estimates that  perhaps a third receives  some compensation.                 
  He noted  that there were people all over the world who took                 
  place in the race this year.  This allows the locals to take                 
  a break and  come back at another  time fresh and new.   The                 
  turnover has happened  this year  and is  an on-going  trend                 
  every three to four years.                                                   
                                                                               
  Co-chair Halford asked  what could be done to safeguard this                 
  race from  abuse?  Mr.  Rasmussen supported regulation.   He                 
  stated   that  there   is   history   with  the   All-Alaska                 
  Sweepstakes.  There was extensive discussion regarding prior                 
  abuses in  the race along with possible solutions.  Co-chair                 
  Halford stated that this legislation has been slowed down to                 
  find a way  to safeguard  this game.   He stated that  there                 
  must be a mechanism between the department and the committee                 
  that guarantees the  ability to safeguard.   Various methods                 
  of  protection  were discussed  to  keep a  black  mark from                 
  occurring on  the Iditarod.   Mr. Rasmussen assured  that he                 
  did not have an answer, but does support the reasoning.                      
                                                                               
  Senator Frank  interjected that it  is important to  keep it                 
  from  becoming  a  game of  chance,  but  to  keep the  game                 
  interesting.  He does  not want it  to become a lottery,  he                 
  likes the idea of trying  to guess when the musher  is going                 
  to cross the  line.   He supports placing  sanctions on  the                 
  musher  or  any  other  person  attempting  to  defraud  the                 
  situation.  He  suggests language that says,  "mushers can't                 
  bet or  be involved  in  the betting,  nor is  it legal  for                 
  anyone  to  ensnare  or  entangle  a  musher  in  a  betting                 
  situation."   He  elaborated on  the language and  said that                 
  when sanctions are placed  on the mushers the abuse  will be                 
  limited.                                                                     
                                                                               
  Co-chair Halford suggested placing bets on the combined time                 
  of the top three or four finishers, maintaining a historical                 
  perspective of past races.   He suggested that the committee                 
  wanted  to respond to  this bill,  the legislature  wants to                 
  help the  Iditarod, but that safeguards are  needed and that                 
  the sponsors and  the trail committee  need to come back  to                 
  the  committee  with   something  that  gives  a   level  of                 
  confidence needed on how it will happen.                                     
                                                                               
  Co-chair Halford invited  Mr. Edgmon to join  the committee.                 
  He stated that he did not have any solutions to safeguarding                 
  against abuse, but that his office would be glad to research                 
  it and come back  with language which could be  amended into                 
  the bill.   Co-chair Halford stressed that  the participants                 
  are  also  the volunteers  and  supporters of  the Iditarod.                 
  Therefore,  he advocated not  eliminating them from betting.                 
  He indicated that the direct participants and family members                 
  of  mushers  on the  trail, as  well  as race  officials and                 
  staff, should not  be betting on  the race.  Senator  Donley                 
                                                                               
                                                                               
  reiterated all the variables and does not know how to attack                 
  the problem.  He  suggested deferring it to someone  who has                 
  the level  of  expertise to  deal  with it.    He felt  that                 
  deferring the problem to the division would require a fiscal                 
  note.                                                                        
                                                                               
  Co-chair Halford suggested adding a sunset of 4 years to the                 
  bill and with  a fiscal note of $25.0 along with a letter of                 
  intent that provides  criteria to  protect the integrity  of                 
  this lottery. Co-chair  Frank suggested  a fiscal note  from                 
  program receipts.                                                            
                                                                               
  Senator Zharoff raised  his concern  over the term  "mushing                 
  sweepstakes" and that  soon there  will be other  activities                 
  around the state like the  Beaver Roundup, Yukon Quest, etc.                 
  that want to participate too.  The definition that is in the                 
  bill is rather narrow.   Mr. Edgmon stated the  intention of                 
  the Division of Gaming, is that there is statutory authority                 
  for the  race organizations  to conduct  the game  activity.                 
  Some of the  interior race organizations do  conduct lottery                 
  game activity.   The  intent of  this bill  is  to put  this                 
  language  specifically in  the  statute  that  entitles  the                 
  Iditarod Trail  Committee to sell  tickets.  The  sponsor of                 
  the bill, after  speaking to legislative legal  council, the                 
  Gaming Division,  and the  Department of  Law, has  specific                 
  questions as  to the activity  of wagering  on the  arrival,                 
  check-point and finish line, and that it may not be allowed.                 
                                                                               
                                                                               
  Co-chair Halford suggested a fiscal note of $25.0 in program                 
  receipts, and pass  the bill out with a 4-year sunset.  This                 
  gives  the  trail  committee  4   years  to  work  with  the                 
  department.  If approved now, they will have it next year.                   
                                                                               
  Senator Sharp   expressed  his agreement. He  said it  would                 
  behoove  the  Iditarod  Committee  to  maintain the  highest                 
  integrity in  the checks.   Mr.  Rasmussen agreed  that with                 
  time  the race  is going  to have  to be  handled much  more                 
  professional than in the past.                                               
                                                                               
  Co-chair Halford asked for a motion to add a program receipt                 
  fiscal note of $25.0,  recognizing that it will  be reviewed                 
  when  the  budget  is  closed  out  and  the information  is                 
  provided by  the  department.   Discussion  was had  on  the                 
  amount of the fiscal note.                                                   
                                                                               
  Senator  Donley reiterated that gambling makes people behave                 
  differently.   There  have been few  things in  the statutes                 
  that have encouraged and encountered as much litigation over                 
  the precise meaning of them as  gambling.  The lawsuits come                 
  rapid  fire.    When there  is  money  involved  there is  a                 
  pecuniary  interest to file law-suits.   An activity such as                 
  this, paying 1% tax on gross,  has the potential for immense                 
                                                                               
                                                                               
  profits.  Careful thinking and  well-thought out planning is                 
  urged.  He associated  the complexity of this race  with the                 
  intricate regulations for parimutuel horse betting.                          
                                                                               
  Senator Rieger said that the concern over human interference                 
  can cause potential  abuse to the  race.  He suggested  that                 
  the more elements  of uncertainty introduced into  the race,                 
  the harder  it is for someone to  control.  He introduced an                 
  amendment that  would  indicate that  the  sweepstakes  must                 
  include  at  least   three  variables.    For   example,  in                 
  submitting a guess,  it might include  the names of the  top                 
  ten teams that finish, the winning time and perhaps the time                 
  between the arrival of the first  and second teams. It would                 
  be impossible  to rig that  sort of complexity  of guessing.                 
  This might take away Senator Donley's concern.                               
                                                                               
  Co-chair Halford said that  Senator Rieger's language leaves                 
  a lot up to the trail committee.  The existing language says                 
  that the only  thing they can  bet on is the  winning finish                 
  time.  He  stated  that  with  Mr.  Rasmussen  supporting  a                 
  concern, it validates the need  to address the problem  now.                 
  He also supports  making the betting  easy as stated by  Co-                 
  chair Frank, and  likes the  language introduced by  Senator                 
  Rieger.                                                                      
                                                                               
  Senator Rieger asked Mr.  Edgmon if he as in  agreement with                 
  the intent of the  amendment?  Mr. Edgmon indicated  that he                 
  didn't think the sponsor of the bill would be opposed to the                 
  amendment.   The bill  did pass the  House 30  to 5. Senator                 
  Rieger moved to adopt the Amendment.  Senator Frank OBJECTED                 
  to  the  amendment.  He  withdrew  his  debate  but  not his                 
  objection.    Co-chair  Halford  asked,  "Shall  the  Rieger                 
  Amendment be adopted?"   The Rieger Amendment passed 5  to 2                 
  and was ADOPTED.                                                             
                                                                               
                                                                               
  Senator Donley MOVED for  passage of a $25.0 fiscal  note to                 
  the  department  of program  receipts  with  a 4  yr  sunset                 
  provision. No objection having being raised, it was ADOPTED.                 
  Senator Sharp MOVED for passage of  SCSCSHB 146 (FIN) out of                 
  committee with individual recommendations  with accompanying                 
  fiscal note.   No objection having been  raised, SCSCSHB 146                 
  (FIN) was REPORTED  OUT of  committee with the  accompanying                 
  $25.0 program  receipt fiscal  note from  the Department  of                 
  Revenue.                                                                     
                                                                               

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