HOUSE BILL NO. 146 "An Act relating to sled dog race classics." Co-chair Halford introduced Bryce Edgmon, Legislative Aide to Representative Foster. Mr. Edgmon testified on CSHB 146 (L&C) am. He cited SB 66 as a cross-reference. HB 146 was amended on the House floor to address concerns of legislators from the interior. He indicated that the change to the bill was the removal of the words, "sled dog race classics". This is the gaming term that was originally used. He noted, "sled dog race classics" was removed and "mushing sweepstakes" was added. He said that there are smaller mushing organizations that do conduct raffle activity and use the term "sled dog race classics". He stressed that had legislation gone through in its current form with "sled dog race classics", it would have given Iditarod Trail Committee exclusive authority to use that term. That caused some of the smaller racing organizations concern which subsequently led to the bill being amended on the House floor. Senator Phillips questioned why the title is mushing sweepstakes instead of mushing classics? Mr. Edgmon responded that a generic term was picked. He indicated that the term "sweepstakes" was favored. Discussion was had with regard to the title. Senator Donley asked why the Iditarod Trail Committee make the decisions? Mr. Edgmon responded that there are differing interpretations on language. The attempt in this legislation is to place in the statutes the authority to the trail committee to allow for game activities, and wager on arrival times, check points and finish line into Nome. Senator Donley asked to explore the trail committee's authority. Mr. Edgmon responded that right now, the statutory authority allows for wagering on the racing time of a dog team or of a team position in the race. This bill would allow for the wagering of the arrival times, check points, and finish line of the Iditrod. Co-chair Halford invited Dennis Poshard, Director, Charitable Gaming Division, to the table. Mr. Poshard responded to Senator Donley's question by stating that Statute AS 05.15.690(11), under the definition of dog mushers contest, states: "A contest in which prizes are awarded for the correct guess of the racing time of a dog team or of team position in the race, including prizes to the race contestants." Senator Donley stated that he voted against this in the past. His concern is that unlike the other classics, this one is ripe for potential abuse. He suggested provisions for safeguards. His other objection to this bill is that there are no funds collected to pay for the safeguards. Mr. Poshard mentioned that there is a 1% tax that all permittees pay on gaming proceeds paid annually to the division. Pull Tabs have, in addition to the 1% tax, a 3% tax assessed when they are purchased from the distributor. Co-chair Halford asked what is the difference between a mushing sweepstakes and a dog mushers contest? Mr. Poshard responded that according to the Department of Law, and the Division's interpretation of the statutes, there is no difference. At this time, this type of gaming could be conducted under the current provision of dog mushers contests. Mr. Edgmon mentioned that there are small scale gaming activities similar to what this bill would authorize, but at this point it has never been conducted on a state- wide level. The department does not have regulations pertaining to what is legal. From the department's viewpoint, there is potential for differing interpretation of the language. It is envisioned that the Iditarod Trail Committee will be doing the game activity in a large scale. Co-chair Halford questioned how the department would deal with the concerns that Senator Donley raised? Mr. Poshard responded that it would be the same method being used currently to oversee dog mushers contests as they exist. Discussion was had on the concerns centering around safeguards for potential abuse of the contests. Co-chair Halford suggested a regulatory structure for the department along with a fiscal note if necessary, to provide the safety required for the contests. Senator Donley suggested a higher tax rate for gambling. He stated that gambling is exempt from equal protection under the United States Constitution. Co-chair Halford said that with this particular bill the only game you could tax would be the Iditarod, and he could not support it. Co-chair Halford invited Pam Neal, President, Alaska Chamber of Commerce, to join the table. She stated her support of the legislation. The Chamber's interest is that we've been concerned about the continued funding capabilities of the Iditarod. The Iditarod Committee raised their concerns on funding with the board of directors of the state chamber of commerce, at the legislative priority setting session in December. At that time Ms. Neal stated that the Board of Directors rejected the legislation proposed because it contained the check-off on the permanent fund, along with other issues. The committee subsequently reworded the resolution. The Chamber's interest is to find a path for supporting sled dog racing. Senator Donley asked if the Chamber had solutions to prevent abuses? Ms. Neal indicated it was not a matter of discussion. The focus was on funding. She indicated however, the Chamber would support safeguarding against abuse. Co-chair Halford asked that the department work with Senator Rieger to provide a safety measure that will insure safeguarding the games. He suggests that the legislation stay within the title. Co-chair Halford said that this will be held in committee under "bills previously heard" and address it again next week.