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Web posted Thursday, March 14, 2008

House rejects on-air advertising for charitable gaming

By Bradners’ Alaska Legislative Digest


Alaska broadcasters may again be frustrated in their effort to legalize on-air advertising of charitable gaming after the House rejected the second conference committee's report on Senate Bill 59 on a 19-14 vote, March 10. The Senate unanimously adopted the report on Feb. 29.

The absence of seven House members when the report was considered suggests the bill could pick up the two votes it needs for passage, but its only remaining route to passage would be for the House to first rescind the rejection.

The original bill simply brought the state into conformance with the federal Charity Gaming Clarification Act of 1988, a necessity to meet Federal Communication Commission requirements for broadcast gaming ads.

An amendment offered by Rep. Bill Stoltze, R-Chugiak, in the House Finance Committee that banned the use of charitable gaming proceeds for political campaigns, started the bill's problems. Before the House action Stoltze announced on the floor that he would vote against adoption of the conference committee report "in protest."

Besides authorizing on-air ads the bill raises to $2 million the maximum prize limit for municipalities and qualified entities other than contractors that conduct charitable gaming activities. The prize limit remains $500,000 for charitable gaming operated by a contractor.

Rep. Reggie Joule, D-Kotzebue, added the increase in another Finance Committee amendment to allow local governments that conduct charitable gaming events to raise funds for capital projects to catch up with inflation.

Joule was not present for the floor vote, but Rep. Carl Gatto, R-Palmer, who also cast a no vote, suggested a third conference committee to adjust the higher limit. He said the higher cap causes problems for minor league baseball teams in Anchorage that use pull-tabs as fund-raisers for their operating expenses. However, a third conference committee is not possible under legislative rules.

The bill also authorizes the Palmer Rotary Club's state fair cabbage classic fund-raiser, which may leave Gatto with a difficult choice.

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