Legislature(2005 - 2006)CAPITOL 17
02/22/2006 04:00 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB260 | |
| HB394 | |
| HB447 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 260 | ||
| *+ | HB 394 | TELECONFERENCED | |
| *+ | HB 447 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 447-BROADCASTING PROMOTING CHARITABLE GAMING CHAIR ANDERSON announced that the final order of business would be HOUSE BILL NO. 447, "An Act relating to the use of broadcasting to promote raffles and lotteries." CRAIG JOHNSON, Staff to Representative Lesil McGuire, Alaska State Legislature, sponsor, began by saying that the bill would allow radio and television broadcasters the same rights that newspapers currently have. This is, he said, the ability to advertise for charitable gaming. Currently, if a nonprofit organization wanted to advertise on television or radio, the stations would not be able to do this, as it is against the law. He stated that Utah and Alaska are the only two states that do not allow this. He noted that this has been ruled as constitutional by the federal government and the Federal Communications Commission (FCC) agrees that it is legal. He said this does not expand gaming, but gives nonprofit organizations the opportunity to "get their message out" by radio and television. CHAIR ANDERSON commented that the Nenana Ice Classic is able to advertise on radio and television, while the Girl Scouts and Special Olympics are not. MR. JOHNSON surmised that if the Girl Scouts were to call the raffle a "Classic," they would be able to advertise on the radio and television. He said that he is a member of Rotary International and explained that [one goal] of Rotary International is to eradicate the polio virus worldwide. To raise funds, he said, Rotary International holds a snow machine raffle, but is unable to advertise via radio or television. He indicated that most radio and television companies would be likely to offer the ad as a public service announcement (PSA). REPRESENTATIVE LEDOUX asked if all broadcasting companies are aware of the current prohibition and said that she has heard advertisements for raffles and for lotteries. MR. JOHNSON replied that the broadcasting companies are most likely aware, although some may choose not to recognize the prohibition. He said that the licensing process for radio stations is extensive, and not abiding by state law puts this license in jeopardy. He said that the aforementioned ads may have been for the Rat Race Classic in Anchorage, which is allowed due to a statutory loophole created by [House Bill 366, which passed during the Twenty-Third Alaska State Legislature]. REPRESENTATIVE CRAWFORD said that, as a general rule, he is opposed to the expansion of gambling. He stated that he has read the bill several times, and is not sure that the sponsor statement portrays the bill correctly. Referring to page 1, line 4 of the bill, he asked why the sponsor included the word "conduct." He also asked if the broadcasting is limited to PSAs, and, if this is the case, inquired as to where this language can be found in the bill. 4:47:25 PM MR. JOHNSON replied that it is not the intent of the bill to limit the advertisements to PSAs, adding that if a nonprofit wanted to pay for advertising, this would be allowed. In regard to including the word "conduct," he said that a representative from the Alaska Broadcasters Association would be able to explain this in detail. CHAIR ANDERSON, in regard to the word "conduct," said that this is included to prevent lotteries from being allowed. REPRESENTATIVE CRAWFORD said that he does not want to allow organizations to "conduct" gaming activities. He expressed concern with the addition of "raffle" and "lottery," which, he opined, does not only apply to charitable events. CHAIR ANDERSON offered his interpretation of Representative Crawford's concerns. He said that he does not feel that if HB 447 were to pass, lotteries would be allowed. MR. JOHNSON stated that this is not the intent of the bill. REPRESENTATIVE ROKEBERG asked if any lotteries are legal and inquired as to the definition of "lottery." MR. JOHNSON said that the event being advertised must be legal, and noted that the bill does not broaden the [legal] requirements. REPRESENTATIVE CRAWFORD opined that if the statute does not specify what is legal, this may change in the future [to allow gambling]. He said that he would prefer to limit the bill to PSAs, and not allow the [advertising of for-profit gambling]. 4:51:01 PM JEFF PRATHER, Gaming Group, Juneau Office, Tax Division, Department of Revenue, in response to a question, said that the division does not foresee the bill expanding gaming in any way. He stated that the bill would only allow the addition of raffles to the types of activities that may be promoted via radio or television broadcasting. He noted that selling tickets or drawing tickets would fall under "conducting an activity" and would be prohibited. REPRESENTATIVE CRAWFORD asked what type of raffle or lottery would be allowed, as the bill does not specify. He opined that if, in the future, Powerball or any other type of lottery was made legal, it would be allowed to advertise [via television or radio] to which he expressed opposition. MR. PRATHER replied that "raffle" and "lottery" currently have the same definition in statute, which he quoted as follows: "raffle and lottery" means the selling of rights to participate and the awarding of prizes in a game of chance conducted by the drawing for prizes by lot. REPRESENTATIVE CRAWFORD asked if this definition includes Powerball. MR. PRATHER replied that Powerball is not included, as it would require gambling machines. In response to further questioning, he explained that current regulations define a raffle or lottery as "a drawing of tickets by lot, from a container." He said that Powerball would require the approval of the department. He referred to AS 05.15.180(a), which reads as follows: (a) This chapter does not authorize the use of playing cards, dice, roulette wheels, coin-operated instruments or machines, or other objects or instruments used, designed, or intended primarily for gaming or gambling or any other method or implement not expressly authorized by the department. 4:55:10 PM CHAIR ANDERSON asked if "lottery" is necessary based on the statutory definition, or if this can be removed. MR. PRATHER replied that he does not know why "lottery" was included in the definition. CHAIR ANDERSON asked who requested the legislation. MR. JOHNSON replied that the Alaska Broadcasters Association requested the bill. REPRESENTATIVE CRAWFORD maintained his concern that the bill may unintentionally allow lotteries in the future. CHAIR ANDERSON said that the bill was requested by a "neutral figure" that would like the option of advertising charitable gaming. REPRESENTATIVE ROKEBERG stated that "raffle and lottery" is a term of art under current statute. REPRESENTATIVE CRAWFORD reiterated his belief that the bill should only apply to PSAs, which would preclude the addition of for-profit gambling. 4:58:57 PM RICK SCHMIDT, President, Alaska Broadcasters Association (ABA), explained that radio stations are not able to broadcast charitable gaming events, such as raffles and races. As a result, it is necessary to purchase ad space in the local newspaper and hope that enough money is raised. He stated that at times, the charity events have not raised enough money, and expressed frustration with the inability to advertise with radio and television. He said that "lottery" is included in the bill as a result of the current statutory definition. 5:02:32 PM CHAIR ANDERSON asked if the general format of the advertisements would be PSAs. MR. SCHMIDT replied yes. He said that he is against Powerball lotteries, and added that it is important to have a strong community base to ensure that these events are broadcast in a responsible manner, so that the charities can benefit. REPRESENTATIVE CRAWFORD said that he does not believe the intent of the bill is to expand gambling; however, it may have unintentional consequences of opening up this avenue. He said that keeping the PSA format would prevent abuse. He asked if the ABA would be amenable to this change. MR. SCHMIDT replied that he would not have a problem with this change, although one reason for the legislation is to have a "[level] playing field" between newspaper, radio, and television. Newspapers, he said, are not restricted to PSAs. 5:05:50 PM REPRESENTATIVE CRAWFORD asked if an amendment to restrict newspapers to advertising charitable gaming with PSAs would make this a "level playing field." MR. SCHMIDT replied that this may "level the playing field" somewhat; however, he would still like the opportunity to purchase air time or newspaper ad space, if needed. 5:07:28 PM REPRESENTATIVE CRAWFORD asked if the duck race could be classified as a "classic," since it is legal to advertise on television and radio. MR. SCHMIDT noted that he has researched this issue. He opined that in the next 100-200 years, everything would be classified as a "classic." He said that with this legislation, the charities would be on equal terms and if passed today, he would be able to give local charities the opportunity to gain community support. 5:08:56 PM REPRESENTATIVE CRAWFORD asked if the PSA would help the Girl Scouts. MR. SCHMIDT replied that it would. REPRESENTATIVE ROKEBERG asked for clarification regarding the legality of the aforementioned duck race. MR. PRATHER explained that the "rubber ducky race" is considered a special draw raffle, therefore it is legal. 5:10:29 PM STUART A. WHYTE, Advertising Consultant, KFMJ-FM Radio, Ketchikan, said that the bill will enable over-the-air broadcasters to advertise activities that are currently legal. He stated that the bill does not seek to further the cause of those whose intent is to make other forms of gambling legal in the state. He opined that HB 447 addresses an issue which should have been resolved "years ago." He stated that not allowing this type of advertising not only creates an uneven playing field, but also creates confusion with those who would like to advertise and are not aware of this law. He said that this confusion can lead to anger and resentment toward the broadcasting community. He expressed that those involved in broadcasting believe in the power and reach of this type of media, and not being allowed to use this power to assist nonprofits is "unconscionable." He said that he is a member of a nonprofit that raises money by selling pull tabs. He said that the Ketchikan Chamber of Commerce holds an annual auction and dance, during which there is a raffle to raise funds for the Chamber. He noted that the radio can advertise for all portions of the event, with the exception of the raffle, which, he opined, does not make sense. 5:15:03 PM CHAIR ANDERSON noted that certain members of the committee would like to hold the bill. 5:15:12 PM REPRESENTATIVE LYNN said that the bill is not "as easy as it appears" and added that he would like to speak with Legislative Legal and Research Services regarding possible amendments. CHAIR ANDERSON inquired as to the subject matter of the amendments. REPRESENTATIVE LYNN replied that he would like to limit the bill to PSAs, in addition to expanding the bill to prohibit the broadcasting of "rat-races," which was only intended to apply to the state fair. REPRESENTATIVE ROKEBERG suggested removing "animal classics," from line 6. REPRESENTATIVE GUTTENBERG asked what the restrictions are for advertising gaming. MR. PRATHER replied that he is only aware of a U.S. Postal Service prohibition against mailing raffle tickets. CHAIR ANDERSON stated that the bill would be held over. REPRESENTATIVE LEDOUX noted that the fiscal note refers to Internet, e-mail, and web sites, although the bill does not. She asked how the sponsor would feel about expanding the bill to include these areas. MR. PRATHER said that the division views the bill as authorizing the use of the Internet. CHAIR ANDERSON said that e-mail may be used to advertise a raffle. REPRESENTATIVE LEDOUX asked where this is in the bill. REPRESENTATIVE ROKEBERG noted that he would not read it this way. MR. PRATHER said that in current regulation, "broadcasting" includes the Internet. MR. PRATHER, in response to questions, said that a raffle may be advertised on the Internet, but gaming activities may not be conducted over the Internet. REPRESENTATIVE LEDOUX asked if the regulation is inconsistent with the statute if it does not read the same as the regulation. MR. PRATHER replied that the division has been advised that the language in the bill meets the definition of the Internet. [HB 447 was held over.]
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