CSHB 168(JUD): "An Act relating to multiple-beneficiary charitable gaming permits and door prizes for charitable gaming; requiring Department of Commerce and Economic Development approval of contracts between charitable gaming permittees and operators before gaming may occur; limiting the amount of authorized expenses to a percentage of adjusted gross income for a charitable gaming activity; and providing for an effective date."
00CS FOR HOUSE BILL NO. 168(JUD) 01 "An Act relating to multiple-beneficiary charitable gaming permits and door prizes 02 for charitable gaming; requiring Department of Commerce and Economic 03 Development approval of contracts between charitable gaming permittees and 04 operators before gaming may occur; limiting the amount of authorized expenses 05 to a percentage of adjusted gross income for a charitable gaming activity; and 06 providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 05.15.060(8) is amended to read: 09 (8) the number of activities that may be held, operated, or conducted 10 under a permit during a specified period; however, the department may not allow more 11 than 14 bingo sessions a month and 35 bingo games a session to be conducted under 12 a permit; the holders of a multiple-beneficiary permit under AS 05.15.100(d) may 13 hold, operate, or conduct the number of sessions and games a month equal to the 14 number allowed an individual permittee multiplied by the number of holders of
01 the multiple-beneficiary permit; 02 * Sec. 2. AS 05.15.100 is amended by adding a new subsection to read: 03 (d) The commissioner may issue a multiple-beneficiary permit to two to six 04 municipalities or qualified organizations or to a combination of two to six 05 municipalities and qualified organizations that apply jointly for the permit. The permit 06 gives the permit holders the privilege of jointly conducting the activities specified in 07 (a) and (b) of this section, subject to the restrictions set out in (b) of this section. 08 * Sec. 3. AS 05.15.112(a) is amended to read: 09 (a) Each municipality or qualified organization that receives a permit under 10 this chapter shall designate a member in charge. Municipalities and qualified 11 organizations that hold a multiple-beneficiary permit shall jointly designate one 12 member in charge. 13 * Sec. 4. AS 05.15.112(b) is amended to read: 14 (b) The member in charge is responsible for preparation, maintenance, and 15 transmittal of all records and reports required of the permittee. The member in charge 16 shall be a member of the qualified organization or the board of directors of the 17 qualified organization or an employee of the municipality. In the case of a multiple-beneficiary permit, the 18 member in charge shall be a member of one of the 19 qualified organizations or the board of directors of one of the qualified 20 organizations or an employee of one of the municipalities. 21 * Sec. 5. AS 05.15.112(d) is amended to read: 22 (d) The municipality or qualified organization, or the holders of a multiple-beneficiary permit, shall 23 designate alternate members in charge who are responsible 24 for the duties of the member in charge in the absence of the member in charge. 25 * Sec. 6. AS 05.15.115(d) is amended to read: 26 (d) A permittee shall submit by certified mail to the department for approval 27 a copy of each contract with an operator with whom the permittee contracts to conduct 28 activities subject to this chapter. The contract must meet the requirements of this 29 section. The department shall approve or disapprove the contract. If the 30 contract is disapproved, reasons for the disapproval shall be provided in writing 31 to the permittee. Activities may not be conducted under the contract before the
01 contract is approved. Subsequent amendments to an approved contract do not 02 take effect until the amendments are approved by the department [THE 03 PERMITTEE SHALL SUBMIT TO THE DEPARTMENT A COPY OF THE 04 CONTRACT OR SUBSEQUENT AMENDMENT OF THE CONTRACT BY 05 CERTIFIED MAIL AT LEAST 15 DAYS BEFORE ACTIVITIES ARE 06 CONDUCTED UNDER THE CONTRACT OR AMENDED CONTRACT]. 07 * Sec. 7. AS 05.15.128(a) is amended to read: 08 (a) The department shall revoke the license of an operator who does not 09 (1) report an adjusted gross income of at least 15 percent of gross 10 income for two consecutive quarters based on the total operation of the operator; or 11 (2) pay to each authorizing permittee for two consecutive quarters at 12 least 40 percent of the adjusted gross income, as determined under (1) of this 13 subsection, from a pull-tab activity or at least 15 percent of the adjusted gross 14 income, as determined under (1) of this subsection, from a gaming activity other 15 than pull-tabs, received from activities conducted on behalf of the authorizing 16 permittee. 17 * Sec. 8. AS 05.15 is amended by adding a new section to read: 18 Sec. 05.15.145. MULTIPLE-BENEFICIARY PERMITS. (a) Two to six 19 municipalities or qualified organizations, or a combination of two to six municipalities 20 and qualified organizations, may jointly apply for a multiple-beneficiary permit under 21 AS 05.15.100(d). The commissioner may not issue or renew a permit except upon 22 satisfactory proof that each joint applicant is a municipality or qualified organization, 23 the activity may be permitted under this chapter, and the issuance of a permit is not 24 detrimental to the best interests of the public. Upon request of the commissioner, the 25 joint applicants shall prove conclusively each of these requirements before a permit 26 may be issued or renewed. 27 (b) The provisions of AS 05.15.140(b) - (d) apply to multiple-beneficiary 28 permits and applications for them. 29 (c) A municipality or qualified organization that is among the holders of a 30 multiple-beneficiary permit may not hold another permit under this chapter. 31 (d) A municipality or qualified organization that is among the holders of a
01 multiple-beneficiary permit may withdraw from the permit by giving written notice of 02 intent to withdraw to the department and to the other holders of the permit. The 03 effective date of the withdrawal is 30 days after the department receives written notice 04 of intent. A municipality or qualified organization that withdraws from a multiple-beneficiary permit may apply for 05 a permit under AS 05.15.100(a), but its share of the 06 prizes awarded under the multiple-beneficiary permit and the prizes it awards under 07 its own permit are subject to the maximums established in AS 05.15.180(g). 08 (e) The holders of a multiple-beneficiary permit shall jointly file reports with 09 the department that comply with the reporting requirements imposed on operators 10 under AS 05.15.083. 11 * Sec. 9. AS 05.15.160 is amended by adding new subsections to read: 12 (c) The total amount of authorized expenses that may be incurred under (a) of 13 this section in connection with a pull-tab activity may not exceed 60 percent of the 14 adjusted gross income from that pull-tab activity. 15 (d) The total amount of authorized expenses that may be incurred under (a) of 16 this section in connection with any gaming activity other than pull-tabs may not exceed 17 85 percent of the adjusted gross income from that gaming activity. 18 * Sec. 10. AS 05.15.180(d) is amended to read: 19 (d) The total value of door prizes offered or awarded under authority of a 20 permit issued to a municipality or qualified organization under this chapter or under 21 authority of a multiple-beneficiary permit may not exceed $20,000 a month or 22 $240,000 a year. 23 * Sec. 11. AS 05.15.180(e) is amended to read: 24 (e) The total value of all door prizes offered or awarded at a single facility or 25 bingo hall or parlor by an operator on behalf of authorizing permittees [OR BY A 26 PERMITTEE IN CONJUNCTION WITH OTHER PERMITTEES] may not exceed 27 $20,000 a month or $240,000 a year. 28 * Sec. 12. AS 05.15.180(g) is amended to read: 29 (g) A municipality or a qualified organization may award a maximum of 30 $1,000,000 in prizes each year in activities authorized under this chapter; however, if 31 a municipality or a qualified organization contracts with an operator to conduct on its
01 behalf activities authorized under this chapter, the municipality or qualified 02 organization may award a maximum of $500,000 in prizes each year. The holders of 03 a multiple-beneficiary permit under AS 05.15.100(d) may award a maximum in 04 prizes each year of $1,000,000 times the number of holders of the permit for 05 activities authorized under this chapter. In this subsection "activities authorized 06 under this chapter" means all activities subject to this chapter other than bingo. 07 * Sec. 13. AS 05.15.187(f) is amended to read: 08 (f) Each permittee [MUNICIPALITY OR QUALIFIED ORGANIZATION] 09 that had gross receipts exceeding $100,000 during the preceding year from activities 10 conducted under this chapter or that is required to report under AS 05.15.080(a), that 11 conducts a pull-tab game shall maintain records for two years of each prize of $50 or 12 more, the first day and last day that each series was distributed, the serial number of 13 each series, and the distributor from whom each series was purchased. In this section 14 "permittee" includes municipalities and qualified organizations that jointly hold 15 a multiple-beneficiary permit. 16 * Sec. 14. Except for secs. 7 and 9 of this Act, this Act takes effect immediately under 17 AS 01.10.070(c). 18 * Sec. 15. Sections 7 and 9 of this Act take effect January 1, 1994.