Legislature(2007 - 2008)SENATE FINANCE 532
03/13/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB59 | |
| SB81 | |
| HB18 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 59 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 81 | ||
| = | HB 18 | ||
9:03:52 AM SENATE BILL NO. 59 "An Act relating to the use of broadcasting to promote charitable raffles and lotteries." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Stedman announced intent to report this bill from Committee barring any issue raised at this hearing. 9:04:26 AM Senator Huggins moved for adoption of CS SB 59, 25-LS0410\C, as a working document. There was no objection and the committee substitute was ADOPTED. 9:05:24 AM DOUG LETCH, Staff to Senator Gary Stevens, sponsor of the bill, testified to the portion of the bill that relates to the use of broadcast media to promote raffles and lotteries. 9:06:27 AM Mr. Letch expressed the intent of this bill to "level the playing field" for Alaska broadcasters. Currently statute prohibits broadcasters from airing "truthful and non-misleading advertisements" of lawful charitable gaming activity. Because of this, those involved in local charitable organizations, including Boy Scouts of America, Girl Scouts of America, senior centers, football leagues, little leagues, and others, are not allowed to utilize radio and television to advertise raffles and other fundraising events. Such advertisement is allowed in print media. Mr. Letch remarked that existing statute could impede "positive governmental interests" because the Alaska Broadcasting Association member stations are not allowed to assist non-profit organizations in efforts to generate funding. 9:07:10 AM Mr. Letch furthered that the current law could deny broadcasters equal protection under the federal and State constitutions because it prohibits "without rational basis" broadcast media from engaging in conduct allowed for print media. This includes third-party advertising promoting charitable gaming activities. Mr. Letch gave as an example the prohibition against the Boy Scouts of America from advertising its raffles on local radio stations. Mr. Letch spoke of his experience in broadcasting in Alaska and emphasized its importance. 9:07:52 AM Mr. Letch attested that promotion of small raffles is simple. However, larger raffles such as the football league in Kodiak require more promotion, which this legislation would allow. 9:08:59 AM Co-Chair Stedman requested an explanation of the language of Section 5 adding a new paragraph to AS 05.15.690 pertaining to a "cabbage classic" at the Alaska State Fair in Palmer. 9:09:25 AM Mr. Letch deferred to Senator Green's staff. 9:09:37 AM DARWIN PETERSON, Staff to Senator Lyda Green, testified that this language was "selected as a policy call by the Senate President working with the Palmer Rotary Club." The existing language of AS 05.15.690 lists the classics for charitable events permitted by law. Many specify the venue and the administrator of the classic, including the Kenai River Classic, which specifies that the Kenai Chamber of Commerce administers that event. Mr. Peterson qualified that the cabbage classic location would not have to be limited to the Alaska State Fair, nor would it have to be administered by the Palmer Rotary Club. The Palmer Rotary Club has historically operated the contest and the contest has always been held at the Alaska State Fair. Senator Green determined that the language of Section 5 would therefore be consistent with the remainder of the statute. However, the Committee could delete such specification from the bill. The existing classic would be allowed to continue and other cabbage classics would be allowed as well. 9:11:14 AM JAKE LIBBY, President, Palmer Rotary Club, testified via teleconference from an offnet location to the logic of identifying the cabbage classic as the event held at the Alaska State Fair. This event is already nationally recognized in conjunction with the Giant Cabbage Weigh-Off at the Alaska State Fair. Few other opportunities for a cabbage classic exist. 9:12:30 AM Senator Olson surmised from the language of Section 3 that youth organizations in general are unable to participate in charitable events unless those events are listed as exceptions. He asked the reason for this. 9:13:02 AM Mr. Peterson responded that, as a "policy call of the state", such activities have been closely managed. Specific statutory authority allows for this oversight. 9:13:21 AM Senator Olson asked the difference between a raffle and "outright gambling". Mr. Peterson answered that the profits of a raffle are paid to charity. 9:13:34 AM Senator Elton pointed out that because the provision of Section 5 limits the cabbage classic to the one event held at the Alaska State Fair, the language of Section 3 referring to "cabbage classics" should be in the singular rather than plural. 9:14:01 AM Mr. Peterson agreed. 9:14:06 AM Amendment #1: This conceptual amendment deletes "cabbage classics" and inserts "cabbage classic" where it appears in Section 1 on page 1, line 10; in Section 2 on page 2 line 4; and in Section 3 on page 2, line 10. The amended language reads as follows. Section 1. AS 05.15.100(a) is amended to read: (a) The department may issue a permit to a municipality or qualified organization. The permit gives the municipality or qualified organization the privilege of conducting bingo, raffles and lotteries, pull-tab games, ice classics, race classics, rain classics, goose classics, mercury classics, deep freeze classics, canned salmon classics, salmon classics, king salmon classics, dog mushers' contests, snow machine classics, fish derbies, animal classics, crane classics, cabbage classic, Calcutta pools, and contests of skill. Section 2. AS 05.15.115(c) is amended to read: (c) A permittee may not contract with more than one operator at a time to conduct the same type of activity. For the purposes of this subsection, bingo games, raffles and lotteries, pull-tab games, ice classics, race classics, rain classics, goose classics, mercury classics, deep freeze classics, canned salmon classics, salmon classics, king salmon classics, dog mushers' contests, snow machine classics, fish derbies, animal classics, crane classics, cabbage classic, Calcutta pools, and contests of skill are each a different type of activity. Section 3. AS 05.15.180(b) is amended to read: (b) With the exception of raffles, lotteries, bingo games, pull-tab games, rain classics, goose classics, mercury classics, deep freeze classics, dog mushers' contests, snow machine classics, canned salmon classics, salmon classics, animal classics, crane classics, cabbage classic, Calcutta pools, and king salmon classics, an activity may not be licensed under this chapter unless it existed in the state in substantially the same form and was conducted in substantially the same manner before January 1, 1959. A snow machine classic may not be licensed under this chapter unless it has been in existence for at least five years before the licensing. An animal classic may not be licensed under this chapter unless it was in existence before November 1, 2002. Senator Elton offered a motion for adoption. Without objection the amendment was ADOPTED. 9:15:52 AM SCOTT SMITH, President, Alaska Broadcasters Association, testified via teleconference from an offnet location to reiterate the Association's desire to better serve the needs of communities. Currently broadcasters are unable to promote these charitable events in any way. Broadcasters would like to help promote and provide outreach to organizations to assist in these fundraising efforts. 9:17:00 AM BOB KERN, President, TLP Communications Inc., testified via teleconference from Ketchikan, that the corporation operates KFMJ Radio and publishes the local newspaper. He also serves a member of the Alaska Public Broadcasting Commission (APBC), and although he was not speaking on its behalf, this legislation would "favorably impact" the 26 public radio and television stations overseen by the APBC. Those stations would be allowed to assist nonprofit groups and organizations in promoting activities in their communities. Mr. Kern stated that this bill would also eliminate a "huge amount of confusion that exists between Alaska and the other states in the union and FCC [Federal Communications Commission] regulations." Alaska is one of two states in which stations are unable to broadcast gaming or lottery announcements. Mr. Kern told of a situation in which a local radio station in Ketchikan and the American Diabetes Association "ran afoul" of State and federal statutes. In a written statement, the FCC informed it would not prosecute or fine the station because the Association held a gaming permit issued by the State and the raffle was not in violation of FCC regulations. State and FCC rules are not consistent with each other and should be clarified. 9:20:37 AM DENNIS EGAN, President and General Manager, Alaska Juneau Communication, past President and current Board Member, Alaska Broadcasters Association, testified in Juneau in support of the bill, reading his testimony into the record as follows. SB 59 affords a solution to the disparate treatment currently being imposed on Alaska's broadcasters by current Alaska statute. Alaska statute prohibits, but only via radio and television, the advertising of lawful charitable gaming or conduct. Newspapers and related media are free to advertise the very same activity and conduct that radio and television stations may not advertise. Recognizing the unfair burden placed upon broadcasters, Congress passed the Charity Games Advertising Clarification Act of 1988. It has been in effect since 1990. Congress opened the door for broadcasters to advertise for a charity, not to conduct charitable gaming. The new federal law left it up to the individual states to ratify the federal law. To this date, nearly every state has allowed broadcasters in their respective states to become fully consistent with federal law. Under the Charity Games Advertising Act signed into law by President Regan in 1988, federal law prohibits the acceptance of any advertising from a business is primary purpose is the conducting of a gaming activity… charitable or otherwise. We feel that being allowed to announce that the local volunteer fire department is having a raffle to raise funds for CPR equipment, or the senior center is selling tickets on an afghan to raise funds for the senior citizen Care-A- Van, or the high school sports teams are selling tickets for a raffle to raise funds for travel, is not detrimental to anyone. Alaska's broadcasters are not trying to suggest to you what activities should be permissible in the state. What we are asking is that all media including print, electronic, direct mail and even the signs we see on municipal buses have the same ground rules when it comes to promotion. Congress recognized this inequity with passage of the 1988 Charity Games Clarification Act. As a federal licensee, broadcasters are one of the most highly regulated industries in the United States. We urge you to provide equity, and give your favorable consideration of SB 59. 9:23:44 AM Senator Olson requested clarification that Alaska is one of only two states that allow "blanket charitable events being advertised." 9:23:54 AM Mr. Egan affirmed. 9:24:19 AM Co-Chair Stedman pointed out that the fiscal note may need modification to account for increased fee generation from the cabbage classic. 9:25:16 AM Mr. Letch did not oppose this. 9:25:28 AM Senator Huggins offered a motion to report CS SB 59, 25- LS0410\C, as amended from Committee with individual recommendations and a forthcoming fiscal note. There was no objection and CS SB 59 (FIN) was REPORTED from Committee with a forthcoming fiscal note from the Department of Revenue. AT EASE 9:26:05 AM / 9:27:57 AM
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