HB 18-RACE CLASSICS  3:21:56 PM CHAIR KITO announced that the first order of business would be HOUSE BILL NO. 18, "An Act relating to race classics." 3:22:44 PM CHAIR KITO closed public testimony on HB 18. 3:23:17 PM REPRESENTATIVE BIRCH moved to adopt Amendment 1, [labeled 30- LS0199\A.1, Martin, 1/31/17], which read as follows: Page 1, lines 4 - 10: Delete all material and insert: "(40) "race classic" means a game of chance where prizes are awarded for the closest guess or guesses of the official winning times of a human race or races [, AND IS LIMITED TO THE MT. MARATHON RACE CLASSIC OPERATED AND ADMINISTERED BY THE SEWARD CHAMBER OF COMMERCE CONVENTION AND VISITORS' BUREAU];" REPRESENTATIVE BIRCH stated that the amendment removes the need for Ketchikan to ask for legislation for the race classic. He also mentioned a letter of support from Seward. REPRESENTATIVE WOOL objected for discussion purposes. 3:24:06 PM REPRESENTATIVE DAN ORTIZ, Alaska State Legislature, prime sponsor of HB 18, stated that he is neutral to the amendment. He mentioned that he has heard some concern from his community about the potential of other groups being able to "hop on" to the Race to Alaska or other race classics around the state. Notwithstanding that, he acknowledged that in order to do so, a group would have to have a permit. REPRESENTATIVE BIRCH stated that HB 18 brought new information to him. He noted the effort, energy, and initiative taken by the [Greater Ketchikan Chamber of Commerce] to be added to host a classic, and he stated that the amendment would simplify the process. The amendment allows any community, appropriately regulated with a gaming permit, to do a similar fundraiser. The amendment reduces the amount of state statutes in consideration. 3:26:40 PM REPRESENTATIVE KNOPP spoke in support of Amendment 1, which simplifies community participation in annual events. He mentioned there are other safeguards in place. 3:27:20 PM REPRESENTATIVE WOOL stated that pre-existing classics would be diluted if every community had a classic. He asked if a gaming permit is easy to obtain and could be used for multiple events. REPRESENTATIVE BIRCH said the legislature doesn't need to be in "the business of picking the winners and losers." He noted that the bill addresses the definition of race classics, and in the years since the law has been around, there has only been one race classic. He stated that Amendment 1 would simplify the process and make for better governance. He opined that it is not the legislature's business to determine which communities can have classics. He said, "Let the entrepreneurial spirit rise, and if somebody wants to have a classic ... we should not stand in the way." 3:29:48 PM CHAIR KITO clarified that ice classics are identified in a separate part of the same statute. REPRESENTATIVE WOOL maintained his objection. 3:30:14 PM REPRESENTATIVE ORTIZ asked for [the Department of Revenue's] observation on the likelihood of a piling-on effect if Amendment 1 was adopted. CHAIR KITO paraphrased Representative Ortiz's question about the impact of not identifying individual classics on the success of any individual classic. REPRESENTATIVE ORTIZ reiterated the concerns of his constituency and the Greater Ketchikan Chamber of Commerce about the potential of groups to pile on to existing races. 3:31:51 PM KATRINA MITCHELL, Gaming Group Manager, Tax Division, stated that she cannot answer the question. She stated that nothing has come to her attention [regarding a piling-on effect], and that there is not a list of groups wanting to get in on classics limited to certain organizations. She stated that it is hard to predict how groups would react. 3:33:08 PM A roll call vote was taken. Representatives Knopp, Sullivan- Leonard, and Birch voted in favor of Amendment 1. Representatives Stutes, Josephson, Wool, and Kito voted against it. Therefore, Amendment 1 failed to be adopted by a vote of 3- 4. 3:33:52 PM REPRESENTATIVE WOOL moved to report HB 18, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 18 was moved from the House Labor and Commerce Standing Committee.