HOUSE BILL NO. 61 "An Act relating to licensing for a Calcutta pool as a game of chance." SHALON SZYMANSKI, STAFF, REPRESENTATIVE MCGUIRE, explained that under current state law there is a very narrow and specific list of allowable games of chance for charitable purposes. This bill would add "Calcutta pool" to that list. Calcutta pools have been held in the past to raise money for charity. The way that one is run is that prior to the sporting event, the teams are auctioned off and the money is put into a pot. The person who is the high bidder on the winning team gets a predetermined percentage of the pot and the remaining money goes to the organization holding the permit. Calcutta pools present no more harm to the public than other charitable giving activities such as "rat races", classics, and pull tabs, which are already legal. Representative Stoltz MOVED to ADOPT work draft 24-LS0281\F, Luckhaupt, 3/04/05. There being NO OBJECTION, it was so ordered. In response to Representative Weyhrauch's question, Ms. Szymanski explained how a Calcutta pool works. Representative Stoltz asked about the derivation of the game. Ms. Szymanski replied that she does not know. 3:18:21 PM Representative Hawker noted that there have been three expansions of the statutes. He questioned why the prohibition on municipalities conducting games of skill and chance are not just removed. Ms. Szymanski declined to answer. 3:20:07 PM LARRY MEYERS, DEPUTY DIRECTOR, TAX DIVISION, ALASKA DEPARTMENT OF REVENUE, testified via teleconference. He noted that he oversees charitable gaming for the department. 3:20:52 PM Vice-Chair Stoltze asked how the proposed statute would interface with existing statute. He observed the complexity of the statutes. Mr. Meyer noted that Calcutta pools have been in the state of Alaska in an unauthorized form. It would be an expansion and would have an impact around the state. He noted that communities from around the state could game on the winner of the Iditarod. They would need to provide gaming permits and reports and the state would receive one percent of the prizes awarded. The real benefit would go to the charities. Calcutta gaming occurs in only three other states, all in western areas. He predicted that Calcutta pools would be exciting events. 3:25:40 PM Vice-Chair Stoltze observed that it would be a significant change and questioned the department's position. Mr. Meyers stated that there are risks and rewards with every new program. From the charity's point of view, the activity will be beneficial. He stressed the need to bring current practices "above the table". He noted limitations on participation: no one under 18 can wager. 3:28:12 PM In response to a question from Vice-Chair Stoltze, Mr. Meyers suggested that the scope could be limited to specific classifications and the legislation could narrowly define events. 3:29:22 PM Representative Croft asked what the effect would be of allowing entities to do whatever they want. Mr. Meyer observed that there are social and economic impacts to the extension of charitable gaming. He was not prepared to comment further on the ramifications. 3:30:44 PM VICKIE OTTE, EXECUTIVE DIRECTOR, ASSOCIATION OF ALASKA NATIVE CLAIMS SETTLEMENT ACT (ANCSA), testified via teleconference in support of the legislation. She observed that charitable gaming helps to provide assistance to non-profits and people in need. She stressed the difficulty of raising money for charities and noted that many would participate in golf tournaments. One Calcutta event raised $800 thousand for charity before it was deemed to be illegal. She spoke in support of the legislation and emphasized those that it would help. 3:33:52 PM SHARON MCCONNELL-GILLIS, EXECUTIVE DIRECTOR, DOYON FOUNDATION, testified via teleconference in support of the legislation. She observed that Doyon provides scholarships, which rely on revenues from fundraisers and corporate contributions. Doyon Foundation anticipates additional scholarship dollars could be raised through Calcutta pools. 3:35:43 PM KATHY MAYO, PRESIDENT, DOYON FOUNDATION, testified via teleconference in support of SB 61. She opined that Calcutta pools would bring in money from new sources. AMY FREEDEN, SENIOR CONTROLLER, SHARED SERVICES DEPARTMENT, COOK INLET TRIBAL COUNCIL, testified via teleconference in support of HB 61, which would provide another tool for non- profit fundraising. She observed the reduction of support for non-profits and the difficulty of maintaining funds. She thought that the Calcutta pools would be centered on golf. 3:38:44 PM Vice-Chair Stoltze noted that the testimony centered on golf. WILLIAM BOMAR, SETTLERS BAY, testified via teleconference in support of HB 61. He noted that he has participated in a number of Calcutta pools, which only benefited the players. He stressed that the legislation would be a successful way for non-profits and local charities to raise funds. 3:42:08 PM STAN HARRINGTON, ANCHOR POINT CHAMBER OF COMMERCE, testified via teleconference in support of the bill. He observed that they have operated a Calcutta tournament for the last two years unaware of its illegality. He echoed sentiments of previous testifiers and encouraged passage of HB 61 with an effective date. He added that they plan to hold a King Salmon tournament during Mother's Day. 3:45:39 PM CHIP WAGONER, EXECUTIVE DIRECTOR, CATHOLIC COMMUNITY CONFERENCE (CCC), Juneau, responded to previous questions. Each game of skill and chance should be evaluated to see its affect on population. Addiction to gaming is the primary issue. The Catholic community is concerned about its effects on children and about wagering on college campuses. If Calcutta pools cause addictive behavior there would be concern. Three percent of gamblers are addicted, at immense cost to society. 3:49:26 PM Vice-Chair Stoltze noted that CCC sells raffle tickets. Mr. Wagoner observed that they are curtailing raffle activities. Vice-Chair Stoltze referred to testimony that indicated that the legislation would greatly expand gaming activities and questioned if the scope should be narrowed. Mr. Wagoner agreed. 3:51:12 PM Vice-Chair Stoltze MOVED to ADOPT Amendment 1 on behalf of Representative Neuman. Co-Chair Meyer OBJECTED for the purpose of discussion. REPRESENTATIVE MARK NEUMAN, spoke in support of Amendment 1. He noted that it would allow a crane classic as an authorized form of charitable gaming. Profits would go to a non-profit radio station in Talkeetna and to sandhill crane land preserves. 3:53:55 PM Representative Holm clarified that the radio station (KFAR) in Fairbanks, a non-profit, has a goose classic. He inquired if birds fell into the category of animal classics. In response to a question by Representative Holm, Vice-Chair Stoltze noted that the goose classic was passed in the mid- eighties in Fairbanks. All of the animal classics have specific references and are in the generic animal classic category. Representative Holm questioned where it would end, if there should be statutes for every animal that comes back to Alaska in the spring. He suggested that "animal classic" should be identified. 3:55:38 PM Representative Neuman observed that the Game Commission has to identify each activity. He noted that the crane classic refers to sandhill cranes. Co-Chair Meyer WITHDREW his OBJECTION. Vice-Chair Stoltze WITHDREW Amendment 1. HB 61 was heard and HELD in committee for further consideration. 3:57:44 PM