Legislature(2007 - 2008)BELTZ 211

02/08/2007 01:30 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 68 MOTOR VEHICLE INSURANCE TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
+= SB 59 BROADCASTING PROMOTING CHARITABLE GAMING TELECONFERENCED
Moved SB 59 Out of Committee
        SB  59-BROADCASTING PROMOTING CHARITABLE GAMING                                                                     
                                                                                                                                
CHAIR ELLIS announced SB 59 to be up for consideration.                                                                         
                                                                                                                                
STUART WHITE, KFMJ Radio, Ketchikan,  supported SB 59 and said it                                                               
will not  allow more gambling  in Alaska. It fixes  problems with                                                               
AS 05.15.640(a) that should have  been fixed long ago by enabling                                                               
over-the-air  broadcasters  to   advertise  activities  that  are                                                               
already legal. Newspapers are not  banned from this activity, but                                                               
it  may  deny broadcasters  equal  protection  under federal  and                                                               
state  constitutions  as well  as  just  being confusing  to  the                                                               
potential advertisers who are not aware of this discrepancy.                                                                    
                                                                                                                                
1:34:55 PM                                                                                                                    
SENATOR HOFFMAN joined the committee.                                                                                           
                                                                                                                                
1:36:30 PM                                                                                                                    
SENATOR  BUNDE stated  that Mr.  White said  this bill  would not                                                               
expand gambling, but he also  said advertising on the radio would                                                               
increase  the number  of customers  who know  about a  lottery by                                                               
three or four times. Therefore,  he reasoned, it may not increase                                                               
new kinds of  gambling, but it would encourage more  people to be                                                               
involved in gambling.                                                                                                           
                                                                                                                                
MR. WHITE  countered that  non-profit organizations  already have                                                               
the legal right  to present these games and, "The  fact that they                                                               
would either survive or go away  is kind of the important crux of                                                               
it there."                                                                                                                      
                                                                                                                                
He  told  them  that  increased  ticket  sales  for  groups  that                                                               
contribute to the  community would be a positive  result and that                                                               
new  types  of gambling,  like  riverboats  and Bali's,  wouldn't                                                               
happen here.                                                                                                                    
                                                                                                                                
1:39:21 PM                                                                                                                    
BOB  KERN, President,  TLP  Communications,  Ketchikan, said  TLP                                                               
owns and operates  KFMJ Radio and publishes  the local newspaper.                                                               
He supported  Mr. White's comments  and expanded  specifically on                                                               
the huge confusion among broadcasters  between what the state and                                                               
federal  governments allow.  He  thought  this legislation  would                                                               
prevent station owners from being  fined or having their licenses                                                               
threatened  by  the  actions  of  employees  or  others  who  are                                                               
misunderstanding the  conflicting regulations  they have  to deal                                                               
with. What  is legal to broadcast  in 48 of the  United States is                                                               
not legal in Alaska.                                                                                                            
                                                                                                                                
Another issue he clarified is  that gaming spots could be allowed                                                               
to be broadcast  as free public service  announcements (PSAs). In                                                               
fact, though, most  of the day air-time is sold  out and any free                                                               
PSAs get relegated  to the midnight to 5 a.m.  time period, which                                                               
would do the non-profits very  little good. Newspapers don't give                                                               
away their space  and he didn't think radio  stations should have                                                               
to either.                                                                                                                      
                                                                                                                                
MR. KERN also  added that passing this  legislation would clarify                                                               
how   to  advertise   self-conducted  lotteries   and  that   the                                                               
definition  of "broadcasting"  should  include  the Internet.  He                                                               
said that just putting up a web  page that anyone can click on is                                                               
broadcasting and that audio is now getting streamed regularly.                                                                  
                                                                                                                                
He suggested  deleting the broadcasting definition  section in SB
68 because he  didn't know of anybody in television  or radio who                                                               
transmitted by  2,500 megahertz. He  also didn't know  of anybody                                                               
who broadcasts  on microwave video since  it is a point  to point                                                               
communication system; and slow-scan  television has not been used                                                               
for  years  by  anyone  except   maybe  amateur  operators.    He                                                               
suggested  deleting  "programming  by  way  of  satellite,  cable                                                               
teletype",  which   nobody  uses   anymore,  and   "or  facsimile                                                               
transmission  and distribution  methods". He  suggested inserting                                                               
"digital  distribution  methods",  since  so  many  stations  are                                                               
transmitting in  the digital  mode now, which  is not  exactly in                                                               
the traditional definition of broadcasting.                                                                                     
                                                                                                                                
He also suggested  that the state and  federal regulations should                                                               
be more aligned  with each other. As an example,  he related that                                                               
a  Ketchikan station  was reported  to the  FCC for  broadcasting                                                               
lottery  information and  promoting it  quite heavily  last year.                                                               
The FCC ruled:                                                                                                                  
                                                                                                                                
        Although 18 USC 13.04 prohibits the broadcast of                                                                        
    information    concerning    a    lottery,    18    USC                                                                     
     13.07(a)(2)(a)  states that  the  provision  of 18  USC                                                                    
     13.04 shall not apply  to an advertisement concerning a                                                                    
     lottery that is authorized  or otherwise not prohibited                                                                    
     by  the state  in which  it is  conducted and  which is                                                                    
     conducted   by  a   not-for-profit  organization.   The                                                                    
     information before us  indicates [the American Diabetes                                                                    
     Association  (ADA)]  is a  not-for-profit  organization                                                                    
     that  has  conducted  the  event  and  raffle  as  fund                                                                    
     raisers and that the State  of Alaska had given the ADA                                                                    
     a charitable  gaming permit for  the period  covered by                                                                    
     the event.  Thus, [the  FCC says]  it appears  that the                                                                    
     stations did  not violate 18  USC 13.04 or  the related                                                                    
     commission  rule   in  as  much  as   their  provisions                                                                    
     specifically  are  not   applicable  to  advertisements                                                                    
     about  events  which  are  conducted  by  the  American                                                                    
     Diabetes Association. Therefore, we close this matter.                                                                     
                                                                                                                                
1:49:16 PM                                                                                                                    
JULIE  SLANAKER, Rainy  Day Quilter  Guild  and Ketchikan  Little                                                               
League Baseball,  said she  has been  a fund-raising  officer for                                                               
both of these  non-profit organizations for the  last three years                                                               
and she has noticed it's more  difficult than ever to raise funds                                                               
for both groups'  expenses. The Quilt Guild that  has two raffles                                                               
every  year would  do significantly  better if  she were  able to                                                               
advertise on the radio.                                                                                                         
                                                                                                                                
She said  that one thing  parents and kids can  still participate                                                               
in  is selling  raffle  tickets. In  Ketchikan, every  charitable                                                               
organization has  raffle tickets at  different times of  the year                                                               
and the  more people who  know about  a raffle, the  more tickets                                                               
can be sold. It costs a lot to  advertise in the paper - a single                                                               
ad for  one day runs  about $80 with  a nonprofit rate.  For that                                                               
same  $80 she  could advertise  with  KFMJ and  receive a  week's                                                               
worth of advertising  that would promote one of her  raffles in a                                                               
much more efficient manner.                                                                                                     
                                                                                                                                
1:53:58 PM                                                                                                                    
CHAIR ELLIS  thanked her for  her comments and closed  the public                                                               
hearing. He set SB  59 aside, but said he would  take it up later                                                               
in the meeting.                                                                                                                 
        SB  59-BROADCASTING PROMOTING CHARITABLE GAMING                                                                     
                                                                                                                                
CHAIR ELLIS announced SB 59 to be back before the committee and                                                                 
asked if there was any committee discussion. There was none.                                                                    
                                                                                                                                
2:24:32 PM                                                                                                                    
SENATOR STEVENS moved to pass SB 59 with the attached fiscal and                                                                
individual recommendations. There were no objections and SB 59                                                                  
moved out of committee.                                                                                                         

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