HOUSE BILL NO. 232 "An Act relating to mercury classics; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken stated that this bill, "allows the Homer chapter of the Kenai Peninsula Boys and Girls Club to operate and implement the Homer Mercury Classic." REPRESENTATIVE PAUL SEATON, sponsor, testified this bill would establish the Homer Mercury Classic, which would operate similarly to other classics including the Nenana Ice Classic. He stated this bill would allow the Boys and Girls Club to offer $2 tickets, of which 50 percent would be paid out in prizes. He told of past mercury classics held in Fairbanks in 1987 and 1988, noting these were the only authorized mercury classics. He informed of a computerized weather station located on the roof of the Boys and Girls Club building that would allow for temperature monitoring. He explained the weather station would be used to determine the first instance in the spring when the temperature rises to 55 degrees and the first instance in the fall when the temperature lowers to 15 degrees. Amendment #1: This amendment inserts "relating to contests of skill under the charitable gaming laws;" into the title of the bill. The amended title reads as follows. "An Act relating to contests of skill under the charitable gaming laws; relating to mercury classics; and providing for an effective date." This amendment also inserts a new bill section on page 1, line 3 to read as follows. Section 1. AS 05.15.180(g) is amended to read: (g) A municipality or a qualified organization may award a maximum of $1,000,000 in prizes each year in activities authorized under this chapter; however, if a municipality or a qualified organization contracts with an operator to conduct on its behalf activities authorized under this chapter, the municipality or qualified organization may award a maximum of $500,000 in prizes each year. A municipality or a qualified organization that conducts a contest of skill and awards more than $500,000 in prizes to the participants in that contest of skill, may exclude $500,000 in prizes awarded to those participants from the $1,000,000 maximum allowed in this subsection. The holders of a multiple-beneficiary permit under AS 05.15.100(d) may award a maximum in prizes each year of $1,000,000 times the number of holders of the permit for activities authorized under this chapter. In this subsection "activities authorized under this chapter" means all activities subject to this chapter other than bingo. NEW TEXT UNDERLINED [DELETED TEXT BRACKETED] Senator Olson moved for adoption. Co-Chair Wilken objected for an explanation. Senator Olson noted this amendment specifically pertains to the Iditarod Trail sled dog race and would allow an organization to award over $1 million in total prize payouts for a game of skill. He expressed that the Iditarod has been a popular activity for Western Alaska in the winter months. Co-Chair Wilken asked if the Iditarod game or any other game of chance has reached the $1 million payout limit. Co-Chair Green referenced a letter dated May 17, 2003 to Senator Olson from Stan Hooley, Executive Director, The Iditarod Trail Committee, Inc., [copy on file] predicting that the total payout would exceed $1 million in the year 2004. Co-Chair Wilken therefore deemed this amendment necessary. Co-Chair Wilken noted earlier questions were raised relating to the legality of this provision and asked if the issues have been resolved. Senator Olson assured this amendment is legal. Senator Taylor suggested that without the amendment, the bill would be subject to criticism in that it specifies only one charity and one community. Co-Chair Wilken removed his objection and the amendment was ADOPTED. Co-Chair Green offered a motion to report HB 232, as amended, from Committee with individual recommendations and accompanying fiscal note. Senator Taylor objected to rhetorically ask whether the sponsor would object to an amendment to include video gaming. Senator Taylor withdrew his objection. Without objection, SCS HB 232 (FIN) MOVED from Committee with zero fiscal note #1 from the Department of Revenue. AT EASE 1:11 PM / 1:11 PM