HB 146 - SLED DOG RACE CLASSIC  Number 076 REPRESENTATIVE GAIL PHILLIPS expressed how important the Iditarod was to her. She served on the Board of Directors and has served as race coordinator for three years. She stated that people all across the country and around the world are interested in the Iditarod. In recent years, however, the race has been the subject of much unwarranted controversy generated by extensive misinformation campaigns initiated by animal rights extremists. She stated that these extremists intentionally distort the Iditarod's noble history and tradition in an effort to generate contributions from outsiders unfamiliar with the sport. She continued that the barrage of negative and misinformed publicity has led to the withdrawal of several large national sponsorships. She stated that this year sponsor withdrawals total $390,000, and an additional $175,000 will be lost next year. She pointed out that without these revenues, the ability of the Iditarod Trail Committee (ITC) to stage the race is threatened. She concluded by stating that the Iditarod Sweepstakes Sled Classic is a game of chance, similar to the Kenai River Snow Goose Classic, the Nenana River Ice Classic, salmon classics and many other classics currently authorized by statute. Authorizing this fund raising activity would assist the committee in it's efforts to replace lost sponsorship revenues. REPRESENTATIVE BRIAN PORTER joined the meeting at 3:15. Number 182 SENATOR LYDA GREEN stated that she had sponsored similar legislation in the Senate. She concurred with Representative Phillips and stated that the ITC should be making sure arrangements have been made and that all of the check points are in place, rather than having to spend so much time on fund raising and outside efforts. She stated since 1977, the state has contributed to the Iditarod in excess of $1 million. This is a trend the ITC would like to reverse. Through this method the ITC could become self supporting. Number 212 DAVE LAMBERT, PRESIDENT, ALASKA DOG MUSHER'S ASSOCIATION (ADMA), testified via teleconference. He asked what the purpose of HB 146 was. He stated that the ITC can now, and always has been able to, hold a sled dog classic. He continued that the ADMA is currently holding a classic on the Open North American Sled Dog Race. He stated that this legislation will not give the ITC the right to do anything they can't do now. What it will do, he stated, is ban any other organization from having sled dog race classics. He inquired again as to the purpose of this bill. Number 214 CHAIRMAN KOTT explained that a person would bet on winning times into checkpoints and the finishing time into Nome. BRYCE EDGMON, LEGISLATIVE ASSISTANT TO REPRESENTATIVE RICHARD FOSTER, stated that he did have a legal opinion from Jerry Luckhaupt, Legislative Council, that states "the committee substitute that is before you would not prevent other sled dog races from doing anything they're currently permitted to do." Mr. Edgmon emphasized that this bill has no restrictive qualities. Number 262 MR. LAMBERT reiterated his query of what the purpose of the legislation was. He stated that the way he reads the legislation, it does say "limited to the Iditarod Sweepstakes". MR. EDGMON stated that this legislation creates sled dog classics and gives the ITC the ability to conduct statewide sweepstakes under the banner of "Sled Dog Classic." He continued that under Title 5, there is statutory authority for dog races to conduct gaming activities to bet on the finishing times of mushers or the individual mushers themselves. He explained that this bill allows for the clarification of wagering on arrival times into check points as well as the finish line into Nome. Number 282 MR. LAMBERT disagreed. He stated that the Nenana Ice Classic still needs to get approval from local municipalities just like any other group. Number 292 REPRESENTATIVE BEVERLY MASEK, in reference to the memorandum to Senator Green from Jerry Luckhaupt, asked what the different types of charitable games were. MR. EDGMON stated that the intent of Representative Foster was to give the ITC the gaming authority to conduct statewide sweepstakes. Once this legislation has passed, the ITC will have the authority to devise the particulars in gaming activities, working in conjunction with the Division of Charitable Gaming. Number 315 CHAIRMAN KOTT stated that it was his opinion that this bill would not diminish any of the opportunities that currently exist under AS 5.15.690. MR. EDGMON stated that was correct and that this point has been reinforced by the Department of Law and Legislative Legal Services. Number 329 REPRESENTATIVE ROKEBERG inquired into the differences. MR. EDGMON answered that this legislation gives the ITC the authority to bet on arrival times and to use sled dog race classics in conducting these activities. Number 340 CHAIRMAN KOTT stated that, under present law, you cannot wager based on finishing times or checkpoint times. MR. EDGMON observed that these statutes are generally worded. He said that it is clearly stated that the objective is to create sled dog classics for the ITC to administer. CHAIRMAN KOTT inquired whether, if this legislation were to pass, and was applied to the Iditarod Classic, they then would be excluded as a dog musher contest. MR. EDGMON stated that they wouldn't be excluded. Number 360 DENNIS BOSHARD, DIVISION OF CHARITABLE GAMING, DEPARTMENT OF REVENUE, stated that this legislation would not prohibit other organizations from getting the proper permits and conducting a dog mushers contest of the same nature. He pointed out that there is no discussion of arrival times into checkpoints in the current statute. Number 381 REPRESENTATIVE MASEK asked who would be overseeing these activities. MR. BOSHARD responded that all charitable gaming is overseen by the Division of Charitable Gaming. Number 397 REPRESENTATIVE ROKEBERG stated that he still hadn't heard an answer to his question. CHAIRMAN KOTT stated, for the record, that they did not have the CSHB 146 before the committee; they had HB 146 before the committee. Number 403 SENATOR GREEN stated that, up until now, there was a connection with a particular musher or dog team. She stated that the bill would only cover elapsed time. REPRESENTATIVE ROKEBERG asked why it had individual checkpoints in the statute. REPRESENTATIVE PORTER answered that there would be more opportunities for betting. CHAIRMAN KOTT pointed out that in the existing language, it ties in with individual teams. He stated that in HB 146 they were not "musher specific." REPRESENTATIVE JERRY SANDERS stated that Section 4, would make the actions of this bill exclusive to the ITC. He asked if they would consider an amendment to delete Section 4. REPRESENTATIVE PORTER commented that if Section 4 is eliminated, it would eliminate the bill. REPRESENTATIVE PORTER made a motion to adopt the CSHB 146 version G, dated 2-21-95. REPRESENTATIVE GENE KUBINA stated that he didn't see a difference in the two. Number 489 MR. EDGMON stated that the difference was in the title. The intent of the title change is to make the bill specific to the Iditarod. CHAIRMAN KOTT noted that the motion before them was for work draft G, which would be the CS. REPRESENTATIVE ELTON stated that he had an amendment that would broaden this legislation. CHAIRMAN KOTT interjected that they should adopt the draft for discussion. He asked for objections. Hearing none, the motion was adopted. REPRESENTATIVE ELTON explained the following: On page 2, lines 12 and 13, strike everything after "checkpoints along the race" and insert "provided the game of chance is administered by the non-profit organization that conducts the sled dog race." He noted that this amendment would also require a title change. Number 534 REPRESENTATIVE PORTER objected. He stated that he didn't disagree with the amendment, but he feels that the legislature would lose the ability to say that we're trying to do something for the Iditarod. REPRESENTATIVE KUBINA felt that the amendment might limit other organizations from holding classics on other races. Number 560 REPRESENTATIVE ELTON stated that this broadens the definition of a sled dog classic to include other races. It wouldn't restrict practices that are already occurring. He commented that some of the other races have now been targeted by the Humane Society of the United States (HSUS) creating financial difficulties for them as well. He pointed out that they can't forget about the qualifying races for the Iditarod. Number 585 CHAIRMAN KOTT concurred with Representative Porter that they were trying to bail out one aspect of Alaska's dog racing. REPRESENTATIVE MASEK observed that they should not forget about sprint, mid and long distance racing in the state. She stated that she was not against helping out the Iditarod but felt they should look at the mushing community as a whole. MR. EDGMON noted that the smaller races conduct gaming activities. This bill doesn't shut the door on these races. Instead, it opens the door for the Iditarod to conduct statewide sweepstakes under the banner of sled dog race classic. CHAIRMAN KOTT asked Mr. Edgmon to comment on the amendment. MR. EDGMON answered right now, other organizations could conduct sweepstakes on the Iditarod. This would narrow it down to just the ITC having the ability to do that. CHAIRMAN KOTT asked if the objection was still maintained. REPRESENTATIVE PORTER answered that it was. CHAIRMAN KOTT asked for a roll call vote. Voting for the amendment were Representatives Sanders, Masek and Elton. Voting against the amendment were Representatives Kubina, Porter and Kott. CHAIRMAN KOTT stated Amendment 1 failed to be adopted. Number 630 REPRESENTATIVE PORTER made a motion to move CSHB 146(L&C) with individual recommendations and accompanying fiscal notes out of committee. CHAIRMAN KOTT asked if there were objections. Hearing none, the motion passed.