HOUSE BILL NO. 268 "An Act relating to big bull moose derbies." 2:53:46 PM Representative Tammy Wilson discussed the bill. She read from the Sponsor Statement (copy on file). House Bill 268 would allow the Tanana Valley Sportsmen Association to raise funds for their organization and the University of Fairbanks Nanooks Rifle team equally. The big bull moose derby would be operated much like other contests already allowed under statute. This will take place during the annual moose season, by individuals that have acquired all the proper documentation already implemented by the State of Alaska to stay within the legal boundaries of the moose season. Participants must purchase a derby ticket prior to the open day of the season… The Tanana Valley Sportsmen's Association (TVSA) is a nonprofit organization that hosts training and completion events for the nationally ranked University of Alaska Nanooks Rifle Team as well as the local high schools… House Bill 268 would allow the raising of funds to further the use of the TVSA club house and support the efforts of the nationally ranked UAF Nanooks Rifle team…. Representative Wilson explained that the rifle team had a fire in its facility several years ago and was trying to recover. Most of the team's funding was provided through community support. She wished to provide opportunities for the team to raise money without having to ask for state assistance. She noted that HB 268 was changed from the original version to include the Snow Town Ice Classic, operated by the Advocates for Victims of Violence (AVV). Representative Costello MOVED to ADOPT the proposed committee substitute for HB 268 (FIN), Work Draft 28- LS085\P (Martin 2/25/14). Representative Guttenberg OBJECTED for discussion. DANIEL GEORGE, STAFF, CO-CHAIR STOLTZE, discussed the committee substitute (CS). He explained that the CS contained changes to Section 4 and Section 6, which resulted in a title change. He read the addition to the title on page 1, lines 1 to 2: "…and relating to permits for games of chance and contests of skill." The title change was generated by the changes to Section 4, page 3, lines 20 through 26: … (big) bull moose derbies, and king salmon classics, a permit may not be issued for an activity [MAY NOT BE LICENSED] under this chapter unless it existed in the state in substantially the same form and was conducted in substantially the same manner before January 1, 1959. A permit may not be issued for a snow machine classic [MAY NOT BE LICENSED] under this chapter unless it has been in existence for at least five years before the permit is issued [LICENSING]. A permit may not be issued for an [AN] animal classic [MAY NOT BE LICENSED] under this chapter. Mr. George furthered that references to "permits" replaced preferences to "licensed." The Department of Revenue (DOR) advised that the language was more consistent with existing statute. He noted that in Section 6, page 4, line 16 the words "for harvesting bull moose" were removed and the word "moose" prior to the word "antlers" was added. Co-Chair Stoltze OPENED public testimony. 2:59:53 PM GRANT LEWIS, TANANA VALLEY SPORTSMAN ASSOCIATION, FAIRBANKS (via teleconference), spoke in favor of the legislation. He recounted that the club was founded in 1911. The association was incorporated as a non-profit in 1937. The association hosted the local high school team practices and competitions and had its own youth shooting club with 100 members. The association taught gun safety and marksmanship. In addition, three other high school and two middle school shooting clubs used the facility. The money earned from the derby would be split between the club and the University to help maintain the facility and to support the youth programs. DAN JORDAN, UNIVERSITY OF ALASKA FAIRBANKS, COACH, NANOOKS RIFLE TEAM (via teleconference), testified in favor of the legislation. He stated that the club won multiple national championships. He stated that over the years seven team members had participated in the Olympics. Team members won medals in the last Olympic Games. He noted that he was always searching for new ways to find funding for the program and was working on the derby concept for 9 years. He thought teaming up with TVSA and the youth in the community was a "win-win" situation. Representative Guttenberg expressed congratulations for the team's national qualification. He asked how the team planned to operate the derby. Mr. Jordan replied that team would work in conjunction with TVSA and use its gaming permit. He hoped to develop a website and organize the derby in a similar fashion as the halibut derby in Valdez. MIKE TINKER, TANANA VALLEY SPORTSMAN ASSOCIATION, FAIRBANKS (via teleconference), testified in favor of the legislation. He was a supporter of the university team. He noted that TVSA had other gaming permits in the past. The association diligently prepared for the legislation's gaming permit. The association enthusiastically supported the event and was looking forward to the next step. He appreciated the committee's consideration of HB 268. Co-Chair Stoltze commended the association's process to ensure the legislation was properly vetted. MEL BOWEN, DIRECTOR, ADVOCATES FOR VICTIMS OF VIOLENCE, VALDEZ (via teleconference), supported the legislation. She described the program. The Advocates for Victims of Violence (AVV) was one of twenty programs that provided services for victims of domestic violence and sexual assault for 18 communities from Glennallen to Valdez. The programs costs had risen over $20 thousand within the last year. State funding was divided between 20 programs in the state. The program would need an additional $25 thousand over the current state funding level. She hoped to meet the projected shortfall with eligibility to receive funding from the snow classic. She wanted to avoid cuts to program services or turning away victims. DARRELL VERFAILLIE, DIRECTOR, PARKS, RECREATION, AND CULTURAL SERVICES, VALDEZ (via teleconference), voiced that the City of Valdez would not receive any revenues from the event. The department would coordinate and assist with the event on behalf of AVV. The classic would help generate AVV revenues and bolster the department's winter offerings. 3:11:07 PM Co-Chair Stoltze CLOSED public testimony. JOSEPH KOSS, TAX AUDITOR, TAX DIVISION, DEPARTMENT OF REVENUE, ANCHORAGE (via teleconference), discussed the changes in the CS. He explained that the gaming statute contained three sections and all three were contained in HB 268, which listed the legal gaming activities in the state. The first two sections concerned permitting gaming activities and the third section dealt with licensing. He delineated that DOR licensed operators who conduct activities on behalf of permittees and granted permits to organizations to conduct the gaming activities. The changes allowed consistency between Section 3 and Sections 1 and 2. Co-Chair Stoltze stated that a description of the gaming activity was typically described in statute. He asked whether the description was contained in the bill. Mr. Koss replied that the Snow Town Ice Classic was included in the basic ice classic definition in Section 5 of the legislation. Representative Guttenberg referred to the many different classics events in the state. He indicated that the moose derby involved hunting big game. He asked if the Department of Fish and Game (DFG) was consulted. Representative Wilson clarified that DFG was consulted. The derby would take place during the regular moose hunting season. Participants could guess the spread of the antlers without hunting. The event was taking advantage of hunting that was already going on. She mentioned extensive discussion in the House Resources Committee. The event could merely be a game of chance based on the data from hunters after they documented their moose and did not add additional work for the department. Representative Guttenberg clarified that his concern was whether hunting behavior would be changed. Representative Wilson understood that the hunting patterns were currently tracked by the department and much discussion regarding the issue took place in the previous committee. She surmised that if a hunter was trophy hunting instead of hunting for food the hunter already was engaged in that type of behavior. She thought that the event would not alter hunting behavior. Representative Guttenberg asked whether guided trophy hunters would be eligible. Representative Wilson relayed that only employees of DFG were ineligible to participate. The operator of the gaming event had the prerogative to exclude any group. Co-Chair Stoltze commented that the legislature conventionally included the rules of conduct in statute. He wished to see a description of the activities in the legislation. He thought that Alaskans were hesitant about gaming expansions although non-profit games of chance were generally accepted. 3:20:05 PM Representative Gara asked whether DFG would discuss the potential game population impacts. Co-Chair Stoltze answered that the premise of the bill was a function of DOR concerning gaming and games of chance. He wondered why the legislation was referred to the House Resources Committee since it did not pertain to resource management issues. Representative Wilson addressed the ice classic portion of the legislation. She pointed out that the event was described on page 3 of the legislation. She read the following: "…ice classic" means a game of chance where a prize of money is awarded for the closest guess of the time the ice moves in a body of water or watercourse in the state and is limited to the Nenana and Chena Ice Pools in the same…" Representative Wilson added that the event was very similar to the Nenana Ice Classic. Representative Wilson addressed Representative Gara's question. She detailed that DFG examined the bill due to the title and found the legislation acceptable. She restated that the bill would not affect any changes in the way the department carried out moose hunts nor would it add any additional permits. She reiterated that most people hunt for meat and a few might hunt for trophy but she didn't believe the bill would change any hunting behavior. She relayed that DFG had not raised any objections. 3:23:16 PM Representative Gara wondered whether DFG would have authority to cancel the derby to protect the moose population in a time of shortage. Co-Chair Stoltze deduced that DFG managed game and not the gaming regulation portion of the derby. Representative Wilson stated that the moose population would determine the number of permits. The department routinely provided permits based on the moose population. She stated that DFG historically had closed areas. She emphasized that the derby could not increase the amount of hunters or effort due to the limited number of moose hunting permits. The department would act in the best interest of the resource for the state regardless of a derby. Vice-Chair Neuman remarked that the Board of Game set the allowable harvest within certain regions of the state. The bill merely allowed community members to enter the derby, support the organizations, engage in family activities, and enjoy the outdoors. Representative Wilson concurred. JOHANNA BALES, DEPUTY DIRECTOR, TAX DIVISION, DEPARTMENT OF REVENUE, ANCHORAGE (via teleconference), clarified that Representative Wilson explained exactly how the legislation would work. She concurred that the definition of ice classic was included in the bill and that the derby did not affect the permitting process with DFG. 3:28:58 PM Representative Costello noted that the new Department of Revenue fiscal note showed no fiscal impact. Vice-Chair Neuman MOVED to REPORT CSHB 268(FIN) out of committee with individual recommendations and the accompanying zero fiscal note. CSHB 268(FIN) was REPORTED out of committee with a no recommendation and with one new zero fiscal note from the Department of Revenue.