HOUSE BILL NO. 245 "An Act establishing a snow classic as an authorized form of charitable gaming." 2:10:52 PM Co-Chair Stoltze discussed housekeeping. Vice-chair Fairclough MOVED to ADOPT proposed committee substitute for HB 245, Work Draft 27-LS0862\E (Luckhaupt, 3/19/12). There being NO OBJECTION, it was so ordered. JOE MICHEL, STAFF, REPRESENTATIVE BILL STOLTZE, explained the changes in the CS. He stated that the first three Sections of the legislation remained the same. He drew committee attention to Section 4, which had been amended to include the internet or an internet communication. Representative Costello clarified that the use of the internet was for informational purposes only and that the sale of tickets through the internet was prohibited. Mr. Michel replied in the affirmative. He added that rules on the federal level related to interstate commerce had necessitated the prohibition. Co-Chair Stoltze noted that the CS had been drafted in concurrence with the bill sponsor. He furthered that the internet had been included in the legislation in order to address the increase of internet advertising. JULI LUCKY, STAFF, REPRESENTATIVE MIKE HAWKER (via teleconference), testified that the sponsor had no objection to the changes in the CS. Co-Chair Stoltze noted there was not an updated fiscal note. Vice-chair Fairclough wondered whether there was a limit on the cost of raffle tickets. She reported that the state had limited the price of raffle tickets to $10. She believed the number was very low. She added that under current law any non-profit organization that sold tickets at a price higher than $10 was in violation. 2:14:56 PM Co-Chair Stoltze relayed that he had purchased raffle tickets that were over $10. He requested that the Department of Revenue (DOR) speak to the specific regulations. JEFF PRATHER, SUPERVISOR, GAMING GROUP, TAX DIVISION, DEPARTMENT OF REVENUE, clarified that there was a $10 per ticket limit on special draw raffles. There was no limit on any other type of raffle ticket. Co-Chair Stoltze asked for a definition of a special draw raffle. Mr. Prather explained that the special draw raffle was a raffle where the winner was determined by means other than a drawing. Vice-chair Fairclough felt that the law was currently being interpreted incorrectly. She asked if there were limits on balloon or ring draw sales. Mr. Prather replied that the special draw permit capped the price at $10. Co-Chair Stoltze believed there needed to be a better education process among the non-profits conducting the raffle events. Vice-chair Fairclough shared that the issue had troubled her for years. She stated that she had repeatedly asked DOR why the price was set at $10 but had received no response. She furthered that charities attempting to raise money were limited by the low price. 2:20:18 PM Vice-chair Fairclough MOVED to report CSHB 245(FIN) out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 245(FIN) was REPORTED out of committee with a "do pass" recommendation and with a previously published zero fiscal note: FN1 (REV). 2:20:54 PM AT EASE 2:23:31 PM RECONVENED