SENATE CS FOR CS FOR HOUSE BILL NO. 61(L&C) "An Act relating to Calcutta pools and crane classics as authorized forms of charitable gaming." This was the second hearing for this bill in the Senate Finance Committee. 4:55:40 PM Senator Dyson spoke to the concern he had raised during the first hearing on this bill regarding whether a for-profit entity might make a business out of helping charities with a Calcutta endeavor. While the answer had been that the inclusion of the term "operator" would deter such activity, he has learned that the term "operator" is simply defined as an entity that is licensed and bonded. Thus, "there is nothing that would keep enterprising individuals" from assisting in organizing a sporting event "and making a deal with some charity to conduct a Calcutta pool. While this activity would raise money for the charity, for-profit entities could also use this tactic as "an opportunity" to make money. This has been experienced in other states; a Calcutta pool was bid up and behind the scene deals were made in regards to which team would win. While he hoped that such a scenario would not occur in Alaska, he warned that it could occur in relationship to major sporting events. Senator Stedman asked whether the intent was to move the bill from Committee. Co-Chair Green affirmed. Senator Stedman voiced being "uncomfortable with enlarging the gambling opportunities in the state in general". While he would not contest moving the bill from Committee, it was unlikely that he would support it passing from the Senate. 4:58:38 PM Co-Chair Green understood "the reality" to be that Calcutta games are occurring in the State. While that does not make that occurrence okay, this legislation would allow places such as the Palmer Golf Course to increase their business and raise money for charitable organizations. Co-Chair Green asked whether the bill contains a mechanism through which to account for the money that would be raised during the auction associated with the event. SHALON SZYMANSKI, Staff to Representative Lesil McGuire, the bill's sponsor, responded that Sec. 2 page two lines two through ten specifies that the event organizer must file a report with the Department of Revenue upon the conclusion of the event. The Department of Revenue would develop the report form, which would require an accounting of the money raised as well as the money provided to the charity. 5:00:26 PM Co-Chair Green read the requirements listed in Sec. 2. She asked for clarification as to timeframe in which the report must be received by the Department of Revenue. 5:00:32 PM Ms. Szymanski clarified that the report must be filed after the event. 5:00:57 PM Co-Chair Green asked for an example of what information would meet the "amount and nature of each expense" requirement as specified in Sec. 2 page two, line eight. Ms. Szymanski replied that expenses for such things as banners advertising the event must be reported. Co-Chair Green asked for further information about the auction that would occur the night before the sporting event; specifically what allowable expenses the operator or the host of the event could conduct. Ms. Szymanski stated that the auction would usually be held in a banquet setting the night before the sporting event. The teams participating in the event would be auctioned off, and people would bid on the team they believed would win the tournament. After the conclusion of the sporting event, the high bidder on the winning team would receive up to 50-percent of the money raised. The organization holding the event could specify the percent of the revenue that would be contributed to the charity; it could range between a minimum of 50-percent and 100-percent of the revenue. Co-Chair Green asked whether the amount specified for the charity would be 50-percent of the net or gross revenue. Ms. Szymanski understood that it would be 50-percent of the money raised during the auction. Co-Chair Wilken moved to report the bill from committee with individual recommendations and accompanying fiscal notes. There being no objection, SCS CS HB 61 (L&C) was REPORTED from Committee with previous indeterminate fiscal note #2 dated April 14, 2005 from the Department of Revenue. 5:04:07 PM