HOUSE BILL NO. 447 "An Act relating to the use of broadcasting to promote raffles and lotteries." CRAIG JOHNSON, STAFF, REPRESENTATIVE LESIL MCGUIRE, explained the bill. The bill levels the playing field between broadcast advertising and the print media regarding the advertising of lawful "charitable gaming activity". He referred to examples of newspaper advertisements in members' packets. Currently, an FCC rule does not allow for those types of activities to be advertised on radio or television. The FCC states that local communities can dictate whether or not they can be advertised on broadcast media. He emphasized that the bill will not increase gaming. 3:19:49 PM Representative Weyhrauch asked why the words "other than animal classics" are needed in this bill. Mr. Johnson replied that it was an amendment added by a member of the Labor and Commerce Committee. Representative Stoltze clarified that the animal classic bill did not provide for advertising. Mr. Johnson said he was referring to previous legislation. 3:21:24 PM At-ease. 3:24:19 PM VICKI MUZIK, KRMJ RADIO, KETCHIKAN, concurred with Mr. Johnson's statements. She related that the bill is a platform to level the playing field. The non-profits that are seeking to raise money are not gambling institutions. She testified in favor of the bill. RIC SCHMIDT, GENERAL MANAGER, KNOM-AM/FM, NOME, reported that his hands are tied when it comes to helping organizations raise funds for charity. He testified in support of the bill. He asked the legislators to "help us help them", referring to the non-profits. Representative Foster noted that there are many raffles for the needy, which can't be aired. Representative Stoltze asked if the bill could be used as a revenue source. Mr. Schmidt said it could be used for that, especially for non-profits. He said he is not talking about a lot of money. He spoke of the Rotary Duck Race and the scholarships it supports. 3:31:01 PM Co-Chair Chenault asked if Mr. Schmidt does public service announcements. Mr. Schmidt said if there is a raffle they can't mention it. 3:32:16 PM DENNIS BOOKEY, MORRIS COMMUNICATIONS, ANCHORAGE, agreed with the previous testimony and spoke in support of the bill. He pointed out that some of the gaming events are part of a bigger event. Broadcasters are not asking to change gaming, just the promotion of it. Representative Stoltze asked if advertising to increase participation would increase gambling. Mr. Bookey replied that it could help increase the funds going to non-profit organizations. Representative Stoltze inferred that Mr. Bookey is also talking about bingo halls. 3:34:28 PM STUART WHYTE, KFMJ RADIO, KETCHIKAN, testified in support of the bill. He emphasized that radio is looking for a level playing field. Right now, raffles not allowed to be advertised. The bill would allow charitable events to run at good times during the day. Representative Foster asked if there are only two radio stations in Nome. One can accept paid advertising and one can't. He asked if that is correct. Mr. Schmidt said that is correct. The stations are very competitive on the commercial side, but very cooperative when it comes to public interest. 3:37:38 PM Representative Stoltze asked if the expense limitation comes out of the 30 percent amount that charities receive. JEFF PRATHER, GAMING GROUP, TAX DIVISION, DEPARTMENT OF REVENUE, said it would have no effect on the expense limitation. Representative Stoltze asked if the bill would allow interactive gaming. Mr. Prather replied that the bill would allow raffles to be promoted over broadcast media. Representative Stoltze repeated the question. Mr. Prather said he did not see that happening. 3:39:53 PM Representative Kerttula asked if there is any analysis of inequities between broadcast and print media. Mr. Prather said no. Representative Stoltze noted sympathy for fund-raisers, but cautioned about gambling and gaming. He voiced concern about politics in gaming. Representative Hawker spoke in support of the bill. He offered Conceptual Amendment 1, to remove on page 1, line 7, the section on "other than animal classics". There being NO OBJECTION, it was so ordered. Representative Stoltze MOVED to adopt Conceptual Amendment 2, on page 1, line 8, to add the words "if the broadcasting is limited to public service announcements provided free of charge by a broadcaster to a permittee" following "broadcasting". 3:46:15 PM At-ease. 3:51:55 PM Representative Hawker OBJECTED. Representative Stoltze spoke to his amendment. He addressed a concern. Representative Stoltze WITHDREW Conceptual Amendment 2. Representative Foster MOVED to report CSHB 447 (FIN) out of Committee, as amended, with individual recommendations and the accompanying fiscal note. Representative Weyhrauch OBJECTED. He questioned why the bill is necessary. He WITHDREW his OBJECTION. There being NO OBJECTION, it was so ordered. CSHB 447 was REPORTED out of Committee with a "do pass" recommendation and with zero fiscal note #1 by the Department of Revenue. 3:56:30 PM