Legislature(2005 - 2006)
05/04/2005 04:45 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB46 | |
| HB61 | |
| HB33 | |
| HB149 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
AT EASE 5:43:08 PM / 5:44:18 PM CS FOR HOUSE BILL NO. 61(FIN) "An Act relating to Calcutta pools and crane classics as authorized forms of charitable gaming." This was the first hearing for this bill in the Senate Finance Committee. SHALON SZYMANSKI, Staff to Representative Lesil McGuire, the bill's sponsor, explained that current State law contains "a very narrow and specific list of allowable games of chance and skill for charitable purposes". This bill would add Calcutta pools and crane classics to that list. "Calcutta pools have been held in the past and they have proven to be a very effective way to raise money for charities across the State." The operation of a Calcutta pool would consist of the following scenario: the day before the sporting event, people would bid, in an auction format, on the team that they believe would win the tournament; and the winning team's high bidder would receive a predetermined percentage of the pot. This bill would require that at least 50-percent of the pot be provided to the charity. Other limitations specify that a Calcutta pool could only be held in conjunction with a sporting event occurring within the State of Alaska; could not be held in conjunction with elementary, secondary, or post-secondary schools or other youth sporting event organizations; bid participants must be at least 18 years of age; and the event must be conducted in an auction format to which a permit issued by the Department of Revenue must be acquired. 5:46:26 PM Ms. Szymanski pointed out that only one Calcutta permit could be issued per event, and that the only entity that could obtain the permit would be the person or organization holding the event. For example, only one Calcutta permit could be issued in regards to the Iditarod Sled Dog Race, and the Iditarod Committee would be the only entity that could request that permit from the Department of Revenue. She reiterated that no less than 50-percent of the Calcutta earnings could be provided to the charity. Ms. Szymanski avowed that inclusion of Calcutta games in the list of allowable games of chance would incur "no more harm than other charitable games events" that are permitted. Examples of permitted games would include rat races, pull-tabs, and classics. 5:47:26 PM Co-Chair Green asked for clarity as to whether a Calcutta pool permit would be limited to a specific one-time event. Ms. Szymanski replied in the affirmative. One permit per sporting event would be issued. Co-Chair Green understood therefore that a single permit could not be utilized for an entire football season. Ms. Szymanski affirmed that it could not; an individual permit would be required for each football game. Senator Stedman professed being unfamiliar with this gambling scenario, and, to that point, he asked for further clarification as to whether the football game, for example, must occur in the State of Alaska. Ms. Szymanski confirmed that the game must take place within the State. Co-Chair Wilken asked whether Calcutta pools are currently being conducted in the State. Ms. Szymanski replied that, "there have been Calcutta pools held in the past". A [unidentified] legal opinion issued a few years earlier ruled, "that Calcutta pools are an illegal activity". Most organizations ceased conducting Calcutta pools after that ruling. Co-Chair Wilken understood therefore that the State does not differentiate between Calcutta games conducted by non-profit organizations or other entities. Therefore, the Court ruling could be characterized as "a blanket" ruling that prohibited any Calcutta game from occurring in the State. Ms. Szymanski affirmed. Co-Chair Wilken understood therefore that this legislation would alter that scenario. Ms. Szymanski affirmed. Co-Chair Green interjected that this legislation would specifically state that Calcutta games would be limited to charitable gaming. Senator Dyson furthered Senator Stedman's question by asking for confirmation that both the Calcutta pool and the event must be held in the State of Alaska. Ms. Szymanski clarified that the event must be held in the State. For instance, a hockey game to which a Calcutta pool was being held must be played in the State. Senator Dyson asked whether for-profit businesses could be involved in organizing and conducting a Calcutta game. Ms. Szymanski expressed that the bill would specifically apply to a non-profit organization that is raising money for charitable purposes. Therefore, a for-profit business would not be eligible to obtain a permit for a Calcutta pool. 5:50:37 PM Senator Dyson noted however, that there are numerous "organizations hustling around looking for charities who, they can 'quote help out' by doing some charitable gaming for them. Such organizations make a significant amount of revenue out of doing this charitable gaming fundraising activity on behalf of some charity." The question is therefore, whether this legislation would "engender that activity". Ms. Szymanski replied that "significant changes" have been made "to the bill to insure that its only non-profit organizations that can obtain the permit". Senator Dyson opined that for-profit entities seek out non-profit organizations; they "offer to help" the non-profit by raising money from a large number of people who traditionally had not helped that organization. They offer to assist in obtaining the permit, conducting the event, and to share the proceeds with the non-profit organization. Ms. Szymanski stated that the bill does contain language to prevent the hiring of an outside operator to run the event. That language is located in Sec. 4 page two beginning on line 19. Senator Dyson appreciated the inclusion of such language. Co-Chair Green asked for further explanation of the "other than a Calcutta pool" language specified in Sec. 4. Ms. Szymanski expressed that that language would prohibit the hiring of an operator to run the pool. 5:53:03 PM Co-Chair Green asked for "the best example" of an event and how the pool would be facilitated. Ms. Szymanski expressed that most organizations would hold a reception the evening before the actual sporting event. An auction would be conducted at that reception. People would bid on the team they thought would win. Traditionally, Calcutta games have been held in conjunction with pool or golf tournaments due to the large number of teams that are usually involved. Co-Chair Green ascertained therefore that the income would be generated from the people who bet on the different teams. 50- percent of the money received would be provided to the winner of the pool and 50-percent would be provided to the charity. Ms. Szymanski affirmed. Co-Chair Green understood that there would be no holding, handling, finders, or event fees. Ms. Szymanski stated that that was correct. 5:54:29 PM Senator Stedman noted that most of the information in the bill packet examples Calcutta pools that have been held in states such as Montana, Wyoming, and North Dakota. He was curious as to the impact these pools might have incurred to those states and their citizens. He asked whether these games would be more popular in one region of the state verses another; in other words, would there be an expectation that this game would be more popular in Anchorage and Fairbanks than in other areas of the State. Ms. Szymanski stated that Calcutta pools could occur in any area of the State. An area with a large number of golf courses might experience more golf-related Calcutta events. 5:55:53 PM Co-Chair Green surmised that "the normal trend" would be that the event must attract a crowd. Therefore a more populated area might hold more Calcutta events. Ms. Szymanski agreed. Another factor would be the charity itself. The goal would be to attract as many people as possible to the auction in order to raise money for the charity. Senator Stedman asked the reason that more states are not involved in this endeavor. Ms. Szymanski replied that Alaska is "one of the few states that does not allow legalized gambling", even on the reservations. This "is very different" from other states, many of which have casinos. North Dakota and Montana are similar to Alaska in this regard. Co-Chair Green stated that Alaska is one of the few states that limits gaming to pull-tabs and bingo. Ms. Szymanski affirmed. The State is "very strict when it comes to allowing the expansion of gaming in any way". The scenario is however "different when it comes to raising money for charities". It is "a fun way to raise money for charities" as long as limitations are in place. The State would not allow "charitable gaming to rise to a level that none of us would want to see". This bill would incorporate "significant limitations to insure that the charitable gaming in this case would not get out of hand…" Senator Dyson asked regarding the magnitude of the monetary prize in a Calcutta event involving 300 people. Ms. Szymanski responded that it would depend on the amount of money that was raised during the auction. People might bid anywhere from $20 to $1,000 on a team. At the end of the auction, the money would be placed into a pot, and upon the conclusion of the sports tournament, the high bidder of the winning team would be given their percentage of the money. The amount of that money would depend on a number of factors including the number of bidders and the amount of money being bid on each team. 5:59:15 PM Senator Dyson asked whether a $300,000 pot might be possible. Ms. Szymanski affirmed that it could. Senator Hoffman asked regarding the Sand Hills Crane Classic. Ms. Szymanski noted that the Sand Hills Crane Classic was added during the bill's hearing in the House of Representatives House Finance Committee, at the urging of Representative Mark Neuman. The Sand Hills Crane Classic occurs in the Talkeetna area. People would guess the time and date of when the cranes would land on a pond in that area. People would buy a ticket and make their guess. The person closest to the actual time would win a percent of the money raised through the ticket sales. REPRESENTATIVE MARK NEUMAN explained that a group of public radio supporters in Talkeetna have a non-profit gaming license though which they are seeking to hold an event to raise money for the public radio station. The event would be similar to the Nenana Ice Classic, as the organizers would set of a series of cameras to film the Sand Hills Cranes as they land on the pond during their annual migration through the area. In addition to supporting Talkeetna public radio, a portion of the money would be used to protect the area in which the pond is located. The Sand Hills Crane Classic must be added to the list of permissible gaming events in order to conduct the event. 6:02:15 PM JEFF BARNHILL, Representative, Palmer Golf Course, testified via teleconference from offnet site and voiced support for the legislation. Like other golf courses, tournaments comprise 30- percent of the Palmer Golf Course's business. The majority of the tournaments are fund-raisers for non-profits. A Calcutta would provide another opportunity through which to raise money for non- profits such as the Boys and Girls Clubs. Any additional tournaments that might result would positively impact the golf course by encouraging more business. Most areas of the State host some events to which a Calcutta could apply. A Calcutta would not incur any costs to the State. 6:05:23 PM Co-Chair Green noted that the testifier had identified a youth organization as a possible recipient of Calcutta funds. To that point, she asked whether youth organizations would be eligible for Calcutta events. Ms. Szymanski clarified that the only restriction in the bill is that a Calcutta could not be held in regards to a youth organization's sporting event such as a youth soccer game. However, money could be raised to support a youth organization. Co-Chair Green understood therefore that raising money for a youth organization would be permissible. Ms. Szymanski affirmed. Senator Stedman asked whether a fishing derby could qualify as a Calcutta. Ms. Szymanski qualified that the event must include teams that could be auctioned off. Senator Stedman asked whether a boat or a team on a boat could be recognized as a team. Ms. Szymanski affirmed that competing boats would qualify for a Calcutta as people could bid on which boat would win. 6:06:59 PM Senator Olson asked the origin of the name. 6:07:10 PM Ms. Szymanski stated that the game had originated in regards to horseraces that were held in Calcutta India. Senator Olson asked whether a single entrant such as a dog team in the Iditarod Sled Dog Race would qualify as a team as opposed to a basketball team. Ms. Szymanski responded that an entrant could be a team or an individual. AT EASE 6:08:04 PM / 6:09:52 PM The bill was HELD in Committee.
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