Legislature(2007 - 2008)CAPITOL 17
02/19/2007 03:00 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HJR8 | |
| HB116 | |
| HB28 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 116 | TELECONFERENCED | |
| *+ | HB 28 | TELECONFERENCED | |
| += | HJR 8 | TELECONFERENCED | |
HB 116-BROADCASTING PROMOTING CHARITABLE GAMING CHAIR OLSON announced that the next order of business would be HOUSE BILL NO. 116, "An Act relating to the use of broadcasting to promote charitable raffles and lotteries." 3:18:34 PM REPRESENTATIVE KYLE JOHANSEN, Alaska State Legislature, sponsor, explained that HB 116 would allow lawful charitable organizations to advertise charitable "gaming" activities on television and radio. Currently, these organizations may only promote using newsprint. In 1988, the federal gaming law was amended, giving states the option to allow charitable organizations to promote raffles on radio or television. He went on to say that 48 states have exercised this option. HB 116 would benefit charitable organizations throughout the state, along with those individuals who are helped with money raised at the aforementioned raffles. Letters of support have been received from numerous charitable organizations. REPRESENTATIVE JOHANSEN relayed a story involving a fundraiser for diabetes in Ketchikan, Alaska, the previous year. An announcement was made on the local radio station, resulting in a warning from the Federal Communications Commission (FCC). After researching this issue, he discovered that Alaska is one of two states that do not currently allow charitable organizations to advertise raffles and fundraisers in this manner. 3:21:24 PM REPRESENTATIVE NEUMAN asked if current statute allows a public radio station to advertise its own charitable gaming events. 3:22:24 PM RANDY RUARO, Staff to Representative Kyle Johansen, Alaska State Legislature, sponsor, offered his understanding that this is not currently legal. The broadcasting of any type of raffle [charitable or otherwise], is not allowed. He explained that HB 116 would amend current statute, thus allowing charitable gaming events to be advertised. 3:23:18 PM REPRESENTATIVE RAMRAS opined that the current law is "antiquated." His business hosts many charitable events, which often fail due to poor advertising. He stated that this is much needed and will have a positive effect on communities across the state. REPRESENTATIVE LEDOUX commented that a similar bill was introduced during the previous legislative session, and inquired as to why the aforementioned bill did not pass. REPRESENTATIVE JOHANSEN offered his understanding that this legislation was delayed in the House Rules Committee. REPRESENTATIVE GATTO pointed out the bill would allow the promotion of a "fish derby." He inquired as to whether this would unintentionally allow other types of gambling to occur. REPRESENTATIVE JOHANSEN replied that his office has been working with Legislative Legal and Research Services to ensure that this is not the case. He reiterated that the intent of the bill is to allow charitable organizations to advertise in a "more efficient way." In response to an additional question, he stated that his office has not received any concerns or opposition of this legislation from newspapers. MR. RUARO agreed that this is correct. 3:28:29 PM BOB KERN, President, TLP Communications, Inc.; Commissioner, Alaska Public Broadcasting Commission (APBC), stated that TLP Communications, Inc. owns and operates KFMJ Radio in Ketchikan, Alaska, in addition to publishing The Local Paper. He explained that while he is not speaking on behalf of the APBC, he feels this legislation would favorably impact public broadcasting. He urged passage of HB 116, as it would allow radio stations to assist non-profit organizations in fundraising efforts. In addition, it would eliminate the confusion that currently exists regarding this issue. He then offered examples of the confusion that occurs. In response to a question from Chair Olson, he confirmed that he is in favor of HB 116. 3:34:02 PM JULIE SLANAKER, Rainy Day Quilter's Guild; Ketchikan Little League, stated that both organizations strongly support HB 116. She explained that the Rainy Day Quilter's Guild holds two quilt raffles each year. The funds raised at these raffles are used for scholarships and community service projects. It has been difficult to increase the amount of fundraising without substantially increasing advertising costs. In regard to Ketchikan Little League, she explained that there are strict fundraising rules which apply. While raffles are approved, it would be possible to raise more funds if radio and television advertising was allowed. She stated that locally, the cost of print advertising has gone up more than 25 percent over the past three years. However, broadcasting rates have remained relatively stable, in addition to offering special rates for non-profit organizations. 3:36:33 PM DENNIS BOOKIE, General Manager, Anchorage Media Group, Morris Communications Company, LLC, commented that "everyone [is] in support." He pointed out that HB 116 would also allow public service announcements (PSAs). He explained that this would allow broadcasters to use any unused inventory for PSAs advertising charitable gaming events. In regard to opposition by print media, he stated that Morris Communications Company, LLC, owns several newspapers across the state, and offered his understanding that there is no opposition to this legislation. However, revenue streams may be effected. 3:37:46 PM DENNIS EGAN, President and General Manager, Alaska Juneau Communications, stated that he is also a member of the Alaska Broadcasters Association (ABA) Board of Directors. He is in support of HB 116, which provides a solution to the "disparate treatment" which is being imposed on Alaska's broadcasters. He stated that newspapers are currently allowed to promote charitable gaming, while the broadcasting of such events is illegal. In 1988, U.S. Congress passed the "Charity Games Advertising Clarification Act." He stated that only two states have not ratified this Act. Alaska's broadcasters, he said, are asking that all media be given the same treatment with regard to the type of advertising that is allowed. 3:40:48 PM REPRESENTATIVE NEUMAN inquired as to whether there are additional inconsistencies in the media restrictions. MR. EGAN replied yes. For example, he said, broadcasters are prohibited from charging political candidates the going rate, while print media is not. He explained that broadcasters are required to charge the "lowest unit charge," which can be difficult to calculate and report. In response to an additional question, he stated that charging political candidates a rate higher than the current going rate is prohibited by federal law. 3:42:47 PM REPRESENTATIVE GATTO requested clarification of the term "broadcasting." MR. EGAN explained that "broadcasting" is "electronic distribution over ... publicly owned airways." REPRESENTATIVE GATTO inquired as to why broadcasting was prohibited from promoting charitable gaming. MR. EGAN replied that he does not know. REPRESENTATIVE LEDOUX inquired as to how this applies to internet advertising. MR. EGAN replied that currently, there are no statutory restrictions on internet advertising. In response to an additional question, he offered his understanding that web sites based in the U.S. and funded in foreign countries which run online gaming can not be restricted at this time. REPRESENTATIVE LEDOUX asked for clarification that Alaska is unable to restrict these web sites. MR. EGAN explained that because these websites are being run in another country, there are no restrictions. This is currently being debated by the U.S. Congress. In response to an additional request for clarification, he stated that currently, the federal law supersedes state law in regard to internet web sites. REPRESENTATIVE NEUMAN asked when AS 05.15.640 was enacted. MR. EGAN replied that he does not have this information. In response to a question from Representative Gatto, he explained that federal law does not oppose the advertising of charitable gaming; however, the decision of whether or not to allow this is left to each state. 3:46:41 PM REPRESENTATIVE NEUMAN moved to report HB 116 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 116 was reported from the House Labor and Commerce Standing Committee. The committee took an at-ease from 3:47:37 PM to 3:50:03 PM.
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