SB 146-SNOW CLASSIC  1:35:11 PM CHAIR EGAN announced consideration of SB 146. 1:36:39 PM SENATOR DAVIS joined the committee. 1:38:36 PM SENATOR GIESSEL, sponsor of SB 146, said that this measure would establish a snow classic like the Nenana Ice Classic only in reverse; instead of melting ice as a gaming activity this would measure snow fall at a specific location on Mount Alyeska and people would guess how much snow is there. This is in addition to charitable gaming, which would benefit the Four Valleys Community School. At ease from 1:38:36 p.m. to 1:39:20 p.m. 1:40:55 PM SENATOR GIESSEL explained that the Anchorage School District used to have a program called community schools that used school buildings in the evening and volunteer educators; it was a wonderful program. Now the community schools program continues to exist only in the community of Girdwood where Four Valleys Community School runs the education program. The Community of Girdwood has a lot of athletes, but they also have a lot of young people going to college and the proceeds of this classic would go to scholarships for them. The bill just inserts "snow classics" as an option for charitable gaming; language in Section 4 makes it very specific to Four Valleys Community School. CHAIR EGAN objected for a sectional analysis. 1:41:59 PM LINDSAY WILLIAMS, staff to Senator Giessel, explained that section 1 adds "snow classic" to the existing list of games of chance and skill that can be permitted by the Department of Revenue. Section 2 adds "snow classics" to the existing definition of activity for the purposes of AS 05.15.115(c), which limits how permittees can contract with operators. Section 3 adds "snow classic" to the existing list of activities that can be licensed under AS 05.15 Games of Chance and Contests of Skill. Section 4 defines and describes "snow classic." 1:42:59 PM SENATOR PASKVAN asked if the Mount Alyeska Snow Classic currently exists and if so, for how long. MS. WILLIAMS answered there currently isn't a Mount Alyeska Snow Classic; this legislation would start one. SENATOR MENARD said this bill would just benefit the Four Valleys Community School and she wanted to allow other communities to do the same thing without passing another law. MS. WILLIAMS replied that would be a policy call for the legislature to make. She said that Four Valleys Community Schools asked Senator Giessel to introduce this legislation. She added that a couple of games of chance are open to an unlimited number of participants; for example the Crane Classic, the Rain Classic and others. SENATOR MENARD said she was struggling with the role of government getting involved in non-profits that benefit one group and not the other. MS. WILLIAMS responded that the sponsor would be open to those discussions. SENATOR GIESSEL said absolutely and that she also wanted to hear from the folks on line who administer the program about some possible constraints. 1:47:05 PM At ease from 1:47:05 to 1:47:28 p.m. 1:47:50 PM REBECCA REICHLIN, Chair, Advisory Board, Four Valleys Community School, Girdwood, said the board is in full support of SB 146. She explained that Four Valleys Community School had been the primary source of education, recreation and cultural opportunities for the community members of all ages in Girdwood, Indian and Bird Creek and Portage Valley since 1981. They serve approximately 6,800 participants and have 700 volunteers on an annual basis. As an organization they have had a long and stable history of providing quality programs for the community. 1:50:30 PM She said she has worked with community schools in one form or another for 23 years. The program provides year-round recreation opportunities and is a model for programs like it. They provide cross country running, fall trail running, indoor soccer, downhill and Nordic skiing, gymnastics, outdoor soccer, softball, baseball, wrestling and more for youth and adults. They offer more than 250 classes annually; the adult programs range from recreating, to cooking, sewing and to fine arts and crafts. Since 1984, Four Valleys has administered public funds awarded to it by the Girdwood Board of Supervisors. These monies all go to provide direct services for the community. To help with the funding, they have established collaborations and partnerships with local businesses and non-profits and private groups to provide the full spectrum of services the community seeks. They have lots of volunteers who contribute their time and support in a wide range of activities. 1:52:20 PM MS. REICHLIN said even though they work very hard to make their funding work on an annual basis, they still need to request yearly grant funds from the Girdwood Board of Supervisors and have a previous history of utilizing gaming activities that the community supported to raise funds. Years ago they had a very successful Gold Rush Monte Carlo Night that raised substantial funds, but when the gaming regulations changed they weren't able to hold that event again. She said they have used pull tabs, bingo night and raffles; they also understand gaming regulations and reporting requirements. She said SB 146 would allow Four Valleys Community School to control their own financial destiny. The Snow Classic would allow them to raise funds to support their mission, would allow them to utilize other resources beyond the community to support their services. It would eliminate dependence on property tax dollars through GVOS grants and would help the school to meet its goal of self-sufficiency. SB 146 does not require new gaming regulations, but expands on what is already enacted. It would enable Four Valleys Community School to help itself. 1:53:59 PM DIANNA HIIBNER, Ski Area General Manager, Alyeska Resort, Girdwood, said she also represented Hotel Alyeska and the Alyeska Ski Area, and they all fully support SB 146. She said that Alyeska Resort has been involved with the concept of the Alyeska Snow Classic since the beginning and Four Valleys Community School is a great program that is fully supported by the community. She said snow is a big deal in Girdwood and they feel the Snow Classic could be a fun and popular event. 1:55:48 PM LYNNE DORAN, Secretary, Advisory Board, Four Valleys Community School, said she had lived in Girdwood since 1995. Basically she wanted to let them know how the Classic would be structured. It would be a split-the-pot event similar to the Nenana Ice Classic. A measuring device would be put on Mount Alyeska separate from the resort and tickets would be sold for a specific period of time when people could guess how much snow had accumulated on the mountain at their location. Selling tickets would have a cut off time and there would be a wait and see approach to build up anticipation. They would have a big announcement of how much snow there was - again similar to the Nenana Ice Classic - and after tallying the ticket information they would announce the winners who would split the pot with Four Valleys Community School after administrative costs. She said DOR's gaming supervisor could tell them why Four Valleys is specifically asking for the Alyeska Snow Classic and the steps an organization has to go through to be able to have a classic versus just running an event on their own. SENATOR PASKVAN said the fiscal note indicates that the revenue is a maximum of $1,000 and asked where the Tax Division got that figure. 1:57:50 PM JEFF PRATHER, Gaming Supervisor, Department of Revenue, said the $1,000 is an estimate of what the department would get if Four Valleys gets this permit and grossed $100,000. The tax in gaming is 1 percent of the profit. SENATOR MENARD asked if he anticipated they would make $100,000 the first year. MR. PRATHER replied that he had no idea what this event would bring in and used that as a way to prepare the fiscal note. SENATOR MENARD asked if there is other history of when other classics started up, like the Nenana Ice Classic. MR. PRATHER said he didn't know how the Nenana Ice Classic fiscal note was written. He added that classics typically do not bring in a lot of money. SENATOR DAVIS said it would be good to hear the history about the Nenana Classic and commented that she didn't think this classic would make that much in the first year. MR. PRATHER said he would get that information. 2:01:13 PM SENATOR GIESSEL said it would be fun to find out about the Nenana Ice Classic and that it was started in 1917 by some railroad workers and there probably wasn't a gaming law then. She asked Mr. Prather to illuminate why this is so specific to Four Valleys. Why does gaming law specify who the operator of these various things can be in some cases? MR. PRATHER answered that over time the legislature has chosen to allow certain activities for certain tax payers. These classics are generally limited to 1 to 6 permittees; three are open to everyone. 2:02:11 PM SENATOR MENARD asked if classics are proprietary, because that is how the law was set up with the Gaming Board. MR. PRATHER said that was correct. CHAIR EGAN asked how many of these permits have been issued now. MR. PRATHER answered 14. SENATOR PASKVAN said it's his general understanding that this discussion arose out of the greater discussion about legalization of gambling in Alaska and the question is whether historical contests would be recognized or not. Hence his reluctance to raise the general concept of legalization of gambling, but he wanted to know how this fits into any historical context. The universe of permittees is very discrete now and this might use a different standard for legalizing gambling. MR. PRATHER replied this is a guessing game and guessing games aren't allowed in the gaming statutes except for classics, which were established by the legislature and are under its purview. That is what he told Four Valleys when they asked. SENATOR PASKVAN asked what the 14 classics are. He suspected they went back in the history of Alaska for quite some time. MR. PRATHER replied that he would get the list for him. SENATOR GIESSEL noted that the Cabbage Classic is limited to the Palmer Rotary, the Canned Salmon Classic is limited to the Petersburg Chamber, the Deep Freeze Classic is limited to the Delta Chamber, the Goose Classic is limited to the Creamer's Field in Fairbanks, the Snow Goose Classic on the Kenai River Flats and there are several ice classics in McGrath and Big Lake; and the Greater Juneau Chamber has the King Salmon Classic. Homer has the Mercury Classic. There is a pretty long list in statute. 2:05:57 PM SENATOR MENARD said she wanted a number of snow classics, because Alaska gets a lot of snow as well as ice. MR. PRATHER said three classics are generic for anyone to use: the Crane Classic, the Rain Classic and the Snow Machine Classic. SENATOR MENARD asked if he thought it reasonable for anyone to apply for a snow classic. MR. PRATHER answered that it has been done before, but it would have to be less specific. SENATOR PASKVAN said the first sentence of section 3 seems to incorporate all the types of gambling activities including all the types of definitions of classics in saying that the activity may not be licensed unless it was in existence before January 1, 1959. He asked if that was the general beginning of the discussion of who may have been permitted under the statute as it currently reads. 2:08:29 PM MR. PRATHER replied there must have been a classic available at that time. He assumed that the Nenana Ice Classic was out there prior to statehood. SENATOR PASKVAN said two other sentences, one dealing with the Snow Machine Classic and the other with an Animal Classic, seem to address the need for long term duration. He didn't see any other criteria to allow something that hasn't existed for quite some time if not from the time of statehood in current AS 05.015.180(b). MR. PRATHER said he was correct. 2:09:53 PM JERRY LUCKHAUPT, Assistant Reviser of Statutes, Legislative Legal Department, Legislative Affairs Agency, Alaska State Legislature, said traditionally the legislature has been very proprietary in setting up these classics. A lot of people who sponsor them don't want a whole lot of competition. He was not saying that is occurring here, but this the traditional way for someone to request a new classic. When the Cabbage Classic was added a few years ago, that bill specifically provided that the Palmer Chamber of Commerce could be the only sponsor of it; and the contest is about the weighted of the big cabbage to the Palmer Fair each year. There are a lot of classics with reference to Senator Paskvan's question about section 3. He said when the legislature started regulating gaming after statehood, gambling was outlawed (even in the territorial days). Gaming was allowed for charitable purposes. So, the legislature at that time said if didn't exist before 1959 you couldn't do it except in certain enumerated circumstances. Since that time, a whole bunch of other classics have been added; about 10 of the 14 Mr. Prather mentioned were added in last 20-some years. He wasn't sure they were all still operating. For example, the King Salmon Classic in Juneau operated for a year or two in the 1990s and then gave up. It's still on the books and the Juneau Chamber is still the only one that can do it. 2:12:38 PM MR. LUCKHAUPT said a lot of effort from volunteer help goes into putting these on and it takes a while for them to catch on with the public. People must be prepared to go through some lean years to make it work. He said the Nenana Ice Classic sustains itself now, but at least four or five other ice classics have been allowed over the years - and he hasn't heard anything about them. It's all up to the legislature as to whether they want it to be for a specific thing or not. Every area of the state has its own specific things and a lot of times classics are based upon a particular geological feature: the Mount Marathon Race Classic, for example, or the Goose Classic in Creamer's Field. They had a little problem with the animal classics in reference to the other item in section 3. The State Fair had a wheel that turns with a hamster crawling into a hole and people bet on what color the hole will be. Someone raised the issue of gambling. People thought it had been going on since statehood, but there was no actual proof to use the 1959 exception. So, then the idea became they had records of it operating since 2002 and everybody loves to do it. That is why the specific exemption was crafted by the legislature. MR. LUCKHAUPT described another game that is allowed because it had been used in another state where people would bet on where a cow in a field would leave his "road apple." They've done that in Palmer, too, he said. 2:16:05 PM SENATOR MENARD said she appreciated him coming up before them. They are deliberating a long time because the state has so many non-profits and she didn't think 14 classics was a lot. MR. LUCKHAUPT responded that it's totally within the legislature's discretion to do what it wants. 2:17:46 PM SENATOR DAVIS complimented the Four Valleys Community School saying if any group could make this work that group could. CHAIR EGAN held SB 146.