Legislature(1997 - 1998)
02/20/1997 08:21 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 50 - ALLOW BROADCASTING OF RAFFLES AND CLASSIC The next order of business to come before the House State Affairs Standing Committee was HB 50, "An Act relating to the use of broadcasting to promote or conduct certain classics or sweepstakes; and providing for an effective date." CHAIR JAMES called on Representative Mark Hodgins, sponsor of HB 50, to present the bill. Number 333 REPRESENTATIVE MARK HODGINS, Alaska State Legislature, explained HB 50 was an act relating to the use of broadcasting to promote or to conduct certain classics or sweepstakes; and to provide for an effective date. REPRESENTATIVE HODGINS further stated that the intent of the bill was to remove the prohibition on broadcast advertising for legislatively established non-profit classics within the state. REPRESENTATIVE HODGINS cited the following classics: Canned Salmon, Deep Freeze, Goose, Ice, King Salmon, Mercury, Mushing Sweepstakes, and Salmon. REPRESENTATIVE HODGINS further explained the only non-profit classics that could advertize, currently, were the fishing derbies. Therefore, by providing this advertising vehicle the legislature would assist these organizations by increasing the public awareness of each event. The bill did not include the ability of pull-tabs, bingo or raffle events to broadcast. REPRESENTATIVE HODGINS further explained there was an amendment to the bill, of which, he did not have a problem with it. The amendment added another non-profit classic to the bill that was moving through the House of Representatives now. Number 379 REPRESENTATIVE KIM ELTON wondered if the expansion of the ability to broadcast would take up more of the existing pie. He was concerned it would harm other non-profits that were also trying to raise money. Number 388 REPRESENTATIVE HODGINS replied the non-profits explicitly referred to in the bill were legislatively established. Therefore, there was a restriction on how much of their funding could be used for advertizing. House Bill 50 called for a restriction of 12 hours of total advertizing. In addition, most of the non-profits would receive community support from radio and television stations. The classics used the money for the good of the community-scholarships and social activities, for example. "I believe that with the restrictions that they have on with the amount of revenue that they can dedicate to advertizing or broadcasting, I don't think that that would be a concern, Representative Elton." Number 406 REPRESENTATIVE BERKOWITZ referred the committee members to page 2 of a memorandum dated December 23, 1996 from Gerald P. Luckhaupt, Legislative Counsel, Division of Legal and Research Services, and read, "If this limited authorization was challenged a court would have to accept the justification advanced by Senator Torgerson during our conference call the other day." He asked Representative Hodgins if he knew what that was about? Number 413 REPRESENTATIVE HODGINS replied he was with Senator John Torgerson when it was decided a remedy was needed for the exclusion of broadcasting for the legislatively established non-profit classics. The court was concerned that the bill would open broadcasting up to everything. As a result, the specific classics that the bill would cover were listed in the bill. Number 424 REPRESENTATIVE BERKOWITZ replied he just wanted to be clear because any sort of court interpretation would hinge on that conversation. Number 427 REPRESENTATIVE HODGINS replied, as a common person, I could not answer that. REPRESENTATIVE BERKOWITZ replied, "There's no such thing as a common person." Number 429 CHAIR JAMES stated that the classics listed were community based funding mechanisms as opposed to special interests. She asked Representative Hodgins if her statement was correct? Number 435 REPRESENTATIVE HODGINS replied, "I would believe so, Madame Chairman." Some of the funds were used for scholarships and community events. He did not know of anything that would be targeted to a small group within the community. Generally, it was a community based effort. Number 443 REPRESENTATIVE IVAN IVAN moved that Amendment 1, 0-LS0288/A.1, Luckhaupt, 2/19/97, be adopted. REPRESENTATIVE IVAN suggested the amendment because there was a bill before the House of Representatives that allowed for another permitted activity. This would also prevent future legislatures from amending the provision. Specifically, the amendment would allow dog mushing contests to participate in broadcast advertizing. In addition, he believed the amendment allowed for future participation by groups without having another hoop to jump through. Number 463 REPRESENTATIVE ELTON objected to the motion. REPRESENTATIVE ELTON stated he saw this as an expansion of gaming and as another way to redivide the pie. He was concerned about the effect on the "true charities" rather than some of the "for fun" kind of activities. He announced he also objected to the bill. CHAIR JAMES stated the committee members remembered his first statement made on this issue; his Calvinistic background. CHAIR JAMES called for a roll call vote. Representatives James, Berkowitz, Dyson, Hodgins, Ivan and Vezey voted in favor of the motion. Representative Elton voted against the motion. The amendment was adopted. Number 482 REPRESENTATIVE BERKOWITZ asked if he could make a friendly amendment to the amendment? CHAIR JAMES stated it was too late now. A new amendment would be needed. REPRESENTATIVE BERKOWITZ moved that the word "permitted" be inserted between the words "activity" and "under." REPRESENTATIVE ELTON stated that was language that was being deleted. REPRESENTATIVE BERKOWITZ withdrew his motion. Number 497 LAURA MEASLES, Executive Director, Kenai Chamber of Commerce, was the first person to testify via teleconference in Kenai. She explained the Kenai Chamber started the Snow Goose Classic in 1994. To date, the chamber had spent approximately $20,000 to promote the classic, of which, was also matched by the local media. In addition, the classic's major sponsor, Tesoro Alaska Petroleum, also contributed a total of $30,000 to help build the classic. The chamber was concerned about the legality of adding a gaming entity and for allowing one media type of coverage versus another. The proceeds from the classic funded scholarships and various community events. Moreover, every non-profit was required to file a financial statement with the Charitable Gaming Division each year, of which, check numbers and bank statements were required to prove that the intent had been accomplished. It was legal to broadcast on the airways or television provided that it was conducted as a news item. However, the Goose Classic was not as visible and the pot was not as large as the Iditarod Sled Dog Race and the Nenana Ice Classic, for example, which had received a lot of coverage. The chamber tried desperately to receive the same coverage, but to no avail. The chamber was also concerned about the financial impact on the local radio station. She thanked Representative Hodgins for sponsoring the bill. Number 536 STEVE HOLLOWAY, Operations Manger/Marketing Director, KSRM Radio, was the next person to testify via teleconference in Kenai. The money that the chamber would spend with the radio station would not make or break the station. "But, it is a little frustrating when you open up the paper every other day and there's a big ad for it. And, here we are giving away free time to them; trying in an indirect way with news stories to promote this just to keep our chamber going and help out." The Federal Communication Commission (FCC) required that it give away time to charities. And, now that requirement went by the wayside. However, radio and television continued to give away much of their product to promote the local community. Here was a chance to help the chamber raise money and "to put a little money into our coffers. And, now the legislature said radio and television could not, but the newspaper could, and, for some reason that doesn't seem fair. Maybe it seems fair to you, but it sure doesn't to me." Studies indicated that people were reading less newspapers, and watching more television. "Whether that's good or bad, you know, that's not for us to say." The station had always given a two for one special for non-profit rates. In addition, this was not an expansion of gaming. It was a chance to successfully promote current fund raisers a little better. The station reached 10,000 to 15,000 people every day, while the local paper reached 3,000 to 4,000 people. "I don't why they wouldn't want these charities promoting their products more successfully that way they're not begging the legislature for more money every time you turn around." It would be fun to promote this the way it should be promoted. "I'm sure the Iditarod people would feel the same way as well." Number 572 CHAIR JAMES announced Dennis Poshard, Director, Charitable Gaming Division, Department of Revenue, was here to answer any questions. Number 574 REPRESENTATIVE BERKOWITZ moved that HB 50, as amended, move from the committee with the attached fiscal note(s) and individual recommendations. Number 576 REPRESENTATIVE ELTON objected. REPRESENTATIVE VEZEY stated for clarification, that if the bill was passed out of the committee without the amendment, the amendment would also go to the next committee of referral. He asked Chair James if she meant to pass the bill as a committee substitute? CHAIR JAMES replied, at this point, "I think we'll just move it on with the amendment." REPRESENTATIVE VEZEY replied, "Pass the bill out with the amendment?" CHAIR JAMES replied, "Yes, that's what we'll do." CHAIR JAMES called for a roll call vote. Representatives James, Berkowitz, Dyson, Hodgins, Ivan and Vezey voted in favor of the motion. Representative Elton voted against the motion. House Bill 50, as amended, was so moved from the House State Affairs Standing Committee.
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