02/06/2007 01:30 PM Senate LABOR & COMMERCE

        SB  59-BROADCASTING PROMOTING CHARITABLE GAMING                                                                     
                                                                                                                                
CHAIR JOHNNY ELLIS announced SB 59 to be up for consideration.                                                                  
                                                                                                                                
SENATOR GARY  STEVENS, sponsor  of SB  59, presented  the sponsor                                                               
statement. Currently  Alaska statute prohibits  broadcasters from                                                               
airing  advertisements of  charitable  gaming activity.  Statutes                                                               
ban only  radio and  TV advertising,  but newspapers  can conduct                                                               
this activity.  For example, local  church and Boy  Scout raffles                                                               
cannot be promoted  by local radio and TV  stations. Even various                                                               
statewide fundraisers, like the Iditarod,  may not be promoted by                                                               
broadcasters  and this  reduces the  ability of  organizations to                                                               
fund  raise.   He  said   SB  59  is   endorsed  by   the  Alaska                                                               
Broadcaster's Association.                                                                                                      
                                                                                                                                
1:32:56 PM                                                                                                                    
SENATOR HOFFMAN joined the committee.                                                                                           
                                                                                                                                
SCOTT SMITH, President, Alaska  Broadcasters Association, said he                                                               
is  also General  Manager of  Morris Communications  in Anchorage                                                               
and an owner  of Kodiak Island Broadcasting; he  supported SB 59.                                                               
He said  these elements  are not  regarded as  a large  influx of                                                               
cash;  it's rather  about the  issue  of having  a level  playing                                                               
field  for advertising  charitable gaming  events. He  added that                                                               
the current law actually  impedes positive governmental interests                                                               
by  prohibiting Alaska's  broadcasters  from assisting  nonprofit                                                               
organizations  in their  efforts to  raise money  to reach  their                                                               
goals.                                                                                                                          
                                                                                                                                
CHAIR  ELLIS asked  if there  had  been any  legal challenges  in                                                               
reference to equal protections issues.                                                                                          
                                                                                                                                
MR.  SMITH replied  no.  However,  there are  those  who want  to                                                               
pursue a legal course.                                                                                                          
                                                                                                                                
DENNIS  EGAN,  President  and   General  Manager,  Alaska  Juneau                                                               
Communications,  said he  is also  a board  member of  the Alaska                                                               
Broadcasters Association,  and supported  SB 59. He  said current                                                               
Alaska  statute treats  broadcasters unfairly  by banning  - only                                                               
from radio and  TV - the advertising of  lawful charitable gaming                                                               
or conduct.  Newspapers and related  media are free  to advertise                                                               
this very same activity.                                                                                                        
                                                                                                                                
MR.  EGAN said  that recognizing  the unfair  burden placed  upon                                                               
broadcasters   nationwide,  Congress   passed  a   charity  games                                                               
advertising clarification  act in  1988 that became  effective in                                                               
1990  and opened  the door  for broadcasters  to advertise  for a                                                               
charity, but  not to conduct  charitable gaming. The  new federal                                                               
law left it up to individual states  to ratify it or not. To this                                                               
date, nearly every  state has allowed its  broadcasters to become                                                               
consistent  with  the  federal  law. Not  one  problem  has  been                                                               
encountered.                                                                                                                    
                                                                                                                                
He pointed out  that under the Charitable  Games Advertising Act,                                                               
federal law  prohibits the acceptance  of any advertising  from a                                                               
business  whose primary  purpose is  conducting gaming  activity,                                                               
charitable or otherwise. He feels  that being allowed to announce                                                               
that the  local volunteer fire  department is having a  raffle to                                                               
raise  funds for  CPR  equipment  or that  the  Senior Center  is                                                               
selling tickets for the Caravan  is not detrimental to anyone. He                                                               
said:                                                                                                                           
                                                                                                                                
          Alaska   broadcasters  are   not  trying   to                                                                         
          suggest  to  you  what activities  should  be                                                                         
          permissible in  the state of Alaska.  What we                                                                         
          are  asking  is   that  all  media  including                                                                         
          print,  electronic,  direct  mail,  even  the                                                                         
          signs  we see  on municipal  buses, have  the                                                                         
          same   ground   rules   when  it   comes   to                                                                         
          promotion....   As    a   federal   licensee,                                                                         
          broadcasters  are  one  of  the  most  highly                                                                         
          regulated    industries    in   the    United                                                                         
          States....                                                                                                            
                                                                                                                                
1:40:41 PM                                                                                                                    
SENATOR BUNDE said  he believed in equity in  advertising, but he                                                               
noted  that the  things Mr.  Egan  listed were  more like  public                                                               
service announcements (PSAs) and he  asked if he meant to include                                                               
groups other than those as well.                                                                                                
                                                                                                                                
MR.  EGAN  replied yes.  He  said  the  PSAs  are aired  free  by                                                               
broadcasters  and the  print media.  If print  was giving  away a                                                               
public  service  announcement  or display  advertisement  talking                                                               
about a raffle, they would be able  to run that at no charge, but                                                               
broadcasters  aren't allowed  to run  that even  free of  charge.                                                               
"It's not a  free of charge-charging issue."  They are prohibited                                                               
by law.                                                                                                                         
                                                                                                                                
1:42:41 PM                                                                                                                    
CHAIR ELLIS asked what other states do.                                                                                         
                                                                                                                                
MR. EGAN replied  only three states haven't  ratified the federal                                                               
act.                                                                                                                            
                                                                                                                                
1:44:02 PM                                                                                                                    
SENATOR BUNDE  asked who  proposed this  measure and  who opposes                                                               
it. He  also asked  for the  reasons this  was disallowed  in the                                                               
first place.                                                                                                                    
                                                                                                                                
SENATOR STEVENS replied that  the Alaska Broadcasters Association                                                               
asked him - last year, actually  - to sponsor the bill. It didn't                                                               
make  it through  the process  last year,  but it  had no  strong                                                               
opposition.                                                                                                                     
                                                                                                                                
CHAIR ELLIS said  his committee had not heard  of any opposition.                                                               
He noted  that he would  take further testimony  on SB 59  in the                                                               
next meeting. There being no  further business to come before the                                                               
committee, he adjourned the meeting at 1:45:53 PM.