Legislature(2005 - 2006)HOUSE FINANCE 519

04/11/2006 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 08:30 AM 04/12/06 --
+ HB 308 CALLER ID HACKERS TELECONFERENCED
<Bill Hearing Canceled>
+ HB 447 BROADCASTING PROMOTING CHARITABLE GAMING TELECONFERENCED
Moved CSHB 447(FIN) Out of Committee
+= HB 470 MANDATORY USE OF HEADLIGHTS TELECONFERENCED
<Bill Hearing Postponed>
+ HB 475 PUB EMPLOYEE & TEACHER RETIREMENT & SBS TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 485 STATE PHARMACISTS/DOCTORS/AUDITOR EXEMPT TELECONFERENCED
Moved Out of Committee
+= HB 93 DENTISTS AND DENTAL HYGIENISTS TELECONFERENCED
Moved CSHB 93(FIN) Out of Committee
HOUSE BILL NO. 447                                                                                                            
                                                                                                                                
     "An Act relating to the use of broadcasting to promote                                                                     
     raffles and lotteries."                                                                                                    
                                                                                                                                
CRAIG   JOHNSON,   STAFF,   REPRESENTATIVE    LESIL   MCGUIRE,                                                                  
explained  the  bill.   The  bill  levels  the  playing  field                                                                  
between broadcast  advertising and  the print media  regarding                                                                  
the advertising  of lawful "charitable  gaming activity".   He                                                                  
referred to examples  of newspaper advertisements  in members'                                                                  
packets.   Currently,  an FCC rule  does not  allow for  those                                                                  
types of activities  to be advertised on radio  or television.                                                                  
The FCC states  that local communities can dictate  whether or                                                                  
not  they   can  be  advertised   on  broadcast  media.     He                                                                  
emphasized that the bill will not increase gaming.                                                                              
                                                                                                                                
3:19:49 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch  asked  why  the words  "other  than                                                                  
animal  classics"  are  needed  in this  bill.    Mr.  Johnson                                                                  
replied  that it was  an amendment  added by  a member  of the                                                                  
Labor and Commerce Committee.                                                                                                   
                                                                                                                                
Representative  Stoltze  clarified  that  the  animal  classic                                                                  
bill did not provide for advertising.                                                                                           
                                                                                                                                
Mr. Johnson said he was referring to previous legislation.                                                                      
                                                                                                                                
3:21:24 PM                                                                                                                    
                                                                                                                                
At-ease.                                                                                                                        
                                                                                                                                
3:24:19 PM                                                                                                                    
                                                                                                                                
VICKI  MUZIK,  KRMJ  RADIO,  KETCHIKAN,   concurred  with  Mr.                                                                  
Johnson's  statements.    She  related  that  the  bill  is  a                                                                  
platform  to level the  playing field.   The non-profits  that                                                                  
are  seeking to  raise money  are not  gambling  institutions.                                                                  
She testified in favor of the bill.                                                                                             
                                                                                                                                
RIC  SCHMIDT,  GENERAL  MANAGER,  KNOM-AM/FM,  NOME,  reported                                                                  
that   his  hands   are  tied   when  it   comes  to   helping                                                                  
organizations  raise  funds  for  charity.   He  testified  in                                                                  
support of  the bill.   He asked the  legislators to  "help us                                                                  
help them", referring to the non-profits.                                                                                       
                                                                                                                                
Representative  Foster noted that  there are many  raffles for                                                                  
the needy, which can't be aired.                                                                                                
                                                                                                                                
Representative  Stoltze asked if the  bill could be used  as a                                                                  
revenue source.   Mr. Schmidt said it could be  used for that,                                                                  
especially for  non-profits.  He said he is not  talking about                                                                  
a lot  of money.   He spoke  of the Rotary  Duck Race  and the                                                                  
scholarships it supports.                                                                                                       
                                                                                                                                
3:31:01 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault asked  if Mr. Schmidt  does public  service                                                                  
announcements.   Mr. Schmidt  said if there  is a raffle  they                                                                  
can't mention it.                                                                                                               
                                                                                                                                
3:32:16 PM                                                                                                                    
                                                                                                                                
DENNIS BOOKEY,  MORRIS COMMUNICATIONS, ANCHORAGE,  agreed with                                                                  
the previous testimony  and spoke in support of  the bill.  He                                                                  
pointed  out that  some of  the gaming  events are  part  of a                                                                  
bigger event.   Broadcasters are not asking to  change gaming,                                                                  
just the promotion of it.                                                                                                       
                                                                                                                                
Representative  Stoltze  asked   if  advertising  to  increase                                                                  
participation  would increase  gambling.   Mr. Bookey  replied                                                                  
that  it could  help increase  the funds  going to  non-profit                                                                  
organizations.    Representative  Stoltze  inferred  that  Mr.                                                                  
Bookey is also talking about bingo halls.                                                                                       
                                                                                                                                
3:34:28 PM                                                                                                                    
                                                                                                                                
STUART WHYTE, KFMJ  RADIO, KETCHIKAN, testified  in support of                                                                  
the bill.   He emphasized  that radio  is looking for  a level                                                                  
playing  field.    Right  now,  raffles   not  allowed  to  be                                                                  
advertised.   The bill  would allow  charitable events  to run                                                                  
at good times during the day.                                                                                                   
                                                                                                                                
Representative  Foster  asked  if  there are  only  two  radio                                                                  
stations  in Nome.  One  can accept  paid advertising  and one                                                                  
can't.  He  asked if that is  correct.  Mr. Schmidt  said that                                                                  
is  correct.    The  stations  are  very  competitive  on  the                                                                  
commercial  side,  but  very  cooperative  when  it  comes  to                                                                  
public interest.                                                                                                                
                                                                                                                                
3:37:38 PM                                                                                                                    
                                                                                                                                
Representative  Stoltze asked if the expense limitation  comes                                                                  
out of the 30 percent amount that charities receive.                                                                            
                                                                                                                                
JEFF  PRATHER,  GAMING  GROUP,  TAX  DIVISION,  DEPARTMENT  OF                                                                  
REVENUE,  said  it  would  have   no  effect  on  the  expense                                                                  
limitation.                                                                                                                     
                                                                                                                                
Representative   Stoltze  asked   if  the  bill  would   allow                                                                  
interactive gaming.   Mr. Prather replied that  the bill would                                                                  
allow   raffles  to   be   promoted  over   broadcast   media.                                                                  
Representative  Stoltze repeated  the question.   Mr.  Prather                                                                  
said he did not see that happening.                                                                                             
                                                                                                                                
3:39:53 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula  asked if  there is  any analysis  of                                                                  
inequities  between broadcast  and print  media.  Mr.  Prather                                                                  
said no.                                                                                                                        
                                                                                                                                
Representative  Stoltze noted sympathy  for fund-raisers,  but                                                                  
cautioned  about  gambling  and  gaming.   He  voiced  concern                                                                  
about politics in gaming.                                                                                                       
                                                                                                                                
Representative  Hawker  spoke  in support  of  the  bill.   He                                                                  
offered Conceptual  Amendment 1, to remove on  page 1, line 7,                                                                  
the section on  "other than animal classics".   There being NO                                                                  
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Representative  Stoltze MOVED  to adopt  Conceptual  Amendment                                                                  
2, on page  1, line 8, to add  the words "if the  broadcasting                                                                  
is limited  to public service  announcements provided  free of                                                                  
charge   by   a  broadcaster   to   a   permittee"   following                                                                  
"broadcasting".                                                                                                                 
                                                                                                                                
3:46:15 PM                                                                                                                    
                                                                                                                                
At-ease.                                                                                                                        
                                                                                                                                
3:51:55 PM                                                                                                                    
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative  Stoltze spoke to his amendment.   He addressed                                                                  
a  concern.     Representative  Stoltze  WITHDREW   Conceptual                                                                  
Amendment 2.                                                                                                                    
                                                                                                                                
Representative  Foster MOVED to  report CSHB 447 (FIN)  out of                                                                  
Committee,  as amended,  with individual  recommendations  and                                                                  
the accompanying fiscal note.                                                                                                   
                                                                                                                                
Representative  Weyhrauch  OBJECTED.   He  questioned why  the                                                                  
bill is necessary.  He WITHDREW his OBJECTION.                                                                                  
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CSHB  447 was  REPORTED  out of  Committee  with  a "do  pass"                                                                  
recommendation   and  with   zero  fiscal   note  #1   by  the                                                                  
Department of Revenue.                                                                                                          
                                                                                                                                
3:56:30 PM                                                                                                                    
                                                                                                                                

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