CSHB 168(FIN) AM: "An Act establishing a testing program for charitable gaming permittees and operators; relating to the duties of a member in charge; requiring regulations relating to pull-tabs to be consistent with North American Gaming Regulators Association standards on pull-tabs to the extent permitted by charitable gaming laws; allowing permittees to contract with vendors to sell pull-tabs on behalf of the permittee at an establishment holding a package store license and certain establishments holding a beverage dispensary license; allowing municipalities to prohibit vendors from conducting gaming activities within the municipality; restricting the purchase of pull-tabs by permittees, licensees, and vendors and their owners, managers, and employees; requiring receipts before prizes of $50 or more may be awarded in pull-tab games; prohibiting distributors from supplying pull-tabs to vendors; relating to the distribution of pull-tabs from one distributor to another distributor; requiring the registration of vendors and regulating activities involving them; requiring the licensing of out-of-state pull-tab manufacturers and increasing the annual licensing fee for pull-tab manufacturers; requiring the department regulating charitable gaming to approve contracts between permittees and operators before gaming may occur; preventing persons with felony convictions or convictions for crimes involving theft or dishonesty or a violation of gambling laws from being involved in charitable gaming activities as a permittee, licensee, vendor, person responsible for the operation of an activity, fund raiser or consultant of a licensee or vendor, or employee in a managerial or supervisory capacity, and providing exceptions for certain persons whose convictions are at least 10 years old and are not for violation of an unclassified felony described in AS 11, a class A felony, or extortion; relating to multiple-beneficiary charitable gaming permits and door prizes for charitable gaming; requiring operators to pay permittees at least 30 percent of the adjusted gross income from a pull-tab activity and limiting operators to expenses of not more than 70 percent of the adjusted gross income from that activity; requiring operators to pay permittees at least 10 percent of the adjusted gross income from a charitable gaming activity other than pull-tabs and limiting operators to expenses of not more than 90 percent of the adjusted gross income from that activity; requiring a permittee who uses a pull-tab vendor to enter into a contract with that vendor; requiring a vendor contracting with a permittee to pay the permittee at least 70 percent of the ideal net for each pull-tab series delivered to the vendor by the permittee; requiring that operators report an adjusted gross income of at least 15 percent of gross income; allowing the commissioner regulating charitable gaming to issue orders prohibiting violations of state gaming laws; relating to the authority of the commissioner regulating charitable gaming to suspend or revoke a permit, license, or registration; prohibiting the payment of any portion of the net proceeds of a bingo or pull-tab game to a registered lobbyist; providing a penalty for false statements in gaming license applications; providing communities with the authority by local option election to prohibit charitable gaming within the community; and providing for an effective date."
00CS FOR HOUSE BILL NO. 168(FIN) am 01 "An Act establishing a testing program for charitable gaming permittees and 02 operators; relating to the duties of a member in charge; requiring regulations 03 relating to pull-tabs to be consistent with North American Gaming Regulators 04 Association standards on pull-tabs to the extent permitted by charitable gaming 05 laws; allowing permittees to contract with vendors to sell pull-tabs on behalf of 06 the permittee at an establishment holding a package store license and certain 07 establishments holding a beverage dispensary license; allowing municipalities to 08 prohibit vendors from conducting gaming activities within the municipality; 09 restricting the purchase of pull-tabs by permittees, licensees, and vendors and 10 their owners, managers, and employees; requiring receipts before prizes of $50 or 11 more may be awarded in pull-tab games; prohibiting distributors from supplying 12 pull-tabs to vendors; relating to the distribution of pull-tabs from one distributor 13 to another distributor; requiring the registration of vendors and regulating 14 activities involving them; requiring the licensing of out-of-state pull-tab
01 manufacturers and increasing the annual licensing fee for pull-tab manufacturers; 02 requiring the department regulating charitable gaming to approve contracts 03 between permittees and operators before gaming may occur; preventing persons 04 with felony convictions or convictions for crimes involving theft or dishonesty or 05 a violation of gambling laws from being involved in charitable gaming activities 06 as a permittee, licensee, vendor, person responsible for the operation of an 07 activity, fund raiser or consultant of a licensee or vendor, or employee in a 08 managerial or supervisory capacity, and providing exceptions for certain persons 09 whose convictions are at least 10 years old and are not for violation of an 10 unclassified felony described in AS 11, a class A felony, or extortion; relating to 11 multiple-beneficiary charitable gaming permits and door prizes for charitable 12 gaming; requiring operators to pay permittees at least 30 percent of the adjusted 13 gross income from a pull-tab activity and limiting operators to expenses of not 14 more than 70 percent of the adjusted gross income from that activity; requiring 15 operators to pay permittees at least 10 percent of the adjusted gross income from 16 a charitable gaming activity other than pull-tabs and limiting operators to 17 expenses of not more than 90 percent of the adjusted gross income from that 18 activity; requiring a permittee who uses a pull-tab vendor to enter into a 19 contract with that vendor; requiring a vendor contracting with a permittee to pay 20 the permittee at least 70 percent of the ideal net for each pull-tab series 21 delivered to the vendor by the permittee; requiring that operators report an 22 adjusted gross income of at least 15 percent of gross income; allowing the 23 commissioner regulating charitable gaming to issue orders prohibiting violations of 24 state gaming laws; relating to the authority of the commissioner regulating 25 charitable gaming to suspend or revoke a permit, license, or registration; 26 prohibiting the payment of any portion of the net proceeds of a bingo or pull-tab game to a 27 registered lobbyist; providing a penalty for false statements in 28 gaming license applications; providing communities with the authority by local 29 option election to prohibit charitable gaming within the community; and providing 30 for an effective date." 31 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
01 * Section 1. AS 05.15.020(a) is amended to read: 02 (a) A municipality or qualified organization may conduct an activity permitted 03 under this chapter, if the municipality or qualified organization 04 (1) applies for a permit, pays the appropriate permit fee, and receives 05 an annual permit issued by the department; and 06 (2) designates a member in charge and at least one alternate 07 member in charge under AS 05.15.112 who have passed the examination required 08 by AS 05.15.112 [THE ANNUAL PERMIT FEE IS 09 (1) $20 FOR AN APPLICANT THAT DID NOT HOLD A PERMIT 10 DURING THE PRECEDING YEAR; 11 (2) $20 FOR AN APPLICANT THAT HAD GROSS RECEIPTS OF 12 LESS THAN $20,000 FROM ACTIVITIES CONDUCTED UNDER THIS CHAPTER 13 DURING THE PRECEDING YEAR; 14 (3) $50 FOR AN APPLICANT THAT HAD GROSS RECEIPTS OF 15 $20,000 OR MORE BUT NOT EXCEEDING $100,000 FROM ACTIVITIES 16 CONDUCTED UNDER THIS CHAPTER DURING THE PRECEDING YEAR; OR 17 (4) $100 FOR AN APPLICANT THAT HAD GROSS RECEIPTS 18 EXCEEDING $100,000 FROM ACTIVITIES CONDUCTED UNDER THIS 19 CHAPTER DURING THE PRECEDING YEAR]. 20 * Sec. 2. AS 05.15.020 is amended by adding a new subsection to read: 21 (c) The annual permit fee under (a) of this section is 22 (1) $20 for an applicant that did not hold a permit during the preceding 23 year; 24 (2) $20 for an applicant that had gross receipts of less than $20,000 25 from activities conducted under this chapter during the preceding year; 26 (3) $50 for an applicant that had gross receipts of $20,000 or more but 27 not exceeding $100,000 from activities conducted under this chapter during the 28 preceding year; or 29 (4) $100 for an applicant that had gross receipts exceeding $100,000 30 from activities conducted under this chapter during the preceding year. 31 * Sec. 3. AS 05.15.060 is amended to read:
01 Sec. 05.15.060. REGULATIONS. The department shall adopt regulations 02 under the Administrative Procedure Act (AS 44.62) necessary to carry out this chapter 03 covering, but not limited to, 04 (1) the issuance, renewal, and revocation of permits, [AND] licenses, 05 and vendor registrations; 06 (2) a method of ascertaining net proceeds, the determination of items 07 of expense that may be incurred or paid, and the limitation of the amount of the items 08 of expense to prevent the proceeds from the activity permitted from being diverted to 09 noncharitable, noneducational, nonreligious, or profit-making organizations, individuals, 10 or groups; 11 (3) the immediate revocation of permits, [AND] licenses, and vendor 12 registrations authorized under this chapter if this chapter or regulations adopted under 13 it are violated; 14 (4) the requiring of detailed, sworn, financial reports of operations from 15 permittees and licensees including detailed statements of receipts and payments; 16 (5) the investigation of permittees, licensees, registered vendors, and 17 their employees, including the fingerprinting of those permittees, licensees, registered 18 vendors, and employees whom the commissioner considers it advisable to fingerprint; 19 (6) [EXCLUSION FROM PARTICIPATION AS A PERMITTEE, 20 LICENSEE, OR EMPLOYEE OF A PERMITTEE OR LICENSEE, OF A PERSON 21 CONVICTED OF, IN PRISON FOR, OR ON PAROLE FOR A FELONY WITHIN 22 THE PRECEDING FIVE YEARS, OR CONVICTED OF A CRIME INVOLVING 23 THEFT OR DISHONESTY OR OF A VIOLATION OF A MUNICIPAL, STATE, OR 24 FEDERAL GAMBLING LAW; 25 (7)] the method and manner of conducting authorized activities and 26 awarding of prizes or awards, and the equipment that may be used; 27 (7) [(8)] the number of activities that may be held, operated, or 28 conducted under a permit during a specified period; however, the department may not 29 allow more than 14 bingo sessions a month and 35 bingo games a session to be 30 conducted under a permit; the holders of a multiple-beneficiary permit under 31 AS 05.15.100(d) may hold, operate, or conduct the number of sessions and games
01 a month equal to the number allowed an individual permittee per month 02 multiplied by the number of holders of the multiple-beneficiary permit; 03 (8) [(9)] a method of accounting for receipts and disbursements by 04 operators, including the keeping of records and requirements for the deposit of all 05 receipts in a bank; 06 (9) [(10)] the disposition of funds in possession of a permittee, [OR] 07 a person, municipality, or qualified organization that possesses an operator's license, 08 or a registered vendor at the time a permit, [OR] a license, or a vendor registration 09 is surrendered, revoked, or invalidated; 10 (10) [(11)] restrictions on the participation by employees of the 11 Department of Fish and Game in salmon classics; and in king salmon classics, and by 12 employees of Douglas Island Pink and Chum in king salmon classics; 13 (11) [(12)] other matters the commissioner considers necessary to carry 14 out this chapter or protect the best interest of the public. 15 * Sec. 4. AS 05.15.060 is amended by adding a new subsection to read: 16 (b) Regulations adopted by the department under this section relating to 17 charitable gaming activity involving pull-tabs shall, to the extent permitted by this 18 chapter, be consistent with the standards on pull-tabs of the North American Gaming 19 Regulators Association, as amended from time to time. 20 * Sec. 5. AS 05.15.070 is amended to read: 21 Sec. 05.15.070. EXAMINATION OF BOOKS AND RECORDS. The 22 commissioner may examine or have examined the books and records of a permittee, 23 an operator, a registered vendor, or a person licensed to manufacture or to distribute 24 pull-tab games in the state. The commissioner may issue subpoenas for the attendance 25 of witnesses and the production of books, records, and other documents. 26 * Sec. 6. AS 05.15.100 is amended by adding a new subsection to read: 27 (d) The commissioner may issue a multiple-beneficiary permit to two to six 28 municipalities or qualified organizations or to a combination of two to six 29 municipalities and qualified organizations that apply jointly for the permit. The permit 30 gives the permit holders the privilege of jointly conducting the activities specified in 31 (a) and (b) of this section, subject to the restrictions set out in (b) of this section.
01 * Sec. 7. AS 05.15 is amended by adding a new section to read: 02 Sec. 05.15.105. PERSONS PROHIBITED FROM INVOLVEMENT; 03 EXCEPTIONS. (a) If a person has been convicted of a violation of a law of this state 04 that is, or a law or ordinance of another jurisdiction that would be if it had been 05 committed in this state, a felony, or a violation of a law or ordinance of this state or 06 another jurisdiction that is a crime involving theft or dishonesty or a violation of 07 gambling laws 08 (1) the department may not issue a license to the person; 09 (2) the department may not issue a license to, or register as a vendor, 10 an applicant who employs the person in a managerial or supervisory capacity or uses 11 the person as a fund raiser or consultant; 12 (3) the department may not issue a permit for an activity if the person 13 is responsible for the operation of the activity; 14 (4) the person may not be employed in a managerial or supervisory 15 capacity by a licensee or vendor or used as a fund raiser or consultant by a licensee 16 or vendor; 17 (5) the person may not participate in charitable gaming as a permittee, 18 licensee, or vendor. 19 (b) The department shall adopt regulations that provide that a disqualification 20 of a person under (a) of this section based upon a conviction of that person for a 21 violation 22 (1) of a law of this state that is, or a law or ordinance of another 23 jurisdiction that would be if it was committed in this state, a class B felony other than 24 extortion, a class C felony, or an unclassified felony described outside of AS 11, and 25 that is not a crime of dishonesty or theft or a violation of gambling laws, terminates 26 10 years after the person's conviction; 27 (2) of a law or ordinance of this state or another jurisdiction that is a 28 crime involving theft or dishonesty or a violation of gambling laws, and that is not, 29 or would not be if it was committed in this state, an unclassified felony described in 30 AS 11, a class A felony, or extortion, terminates 10 years after the person's conviction, 31 if the department determines that the
01 (A) person is of good character, honesty, and integrity; and 02 (B) person's involvement in charitable gaming is not against the 03 public interest. 04 * Sec. 8. AS 05.15.112(a) is amended to read: 05 (a) Each municipality or qualified organization that receives a permit under 06 this chapter shall designate a member in charge. Municipalities and qualified 07 organizations that hold a multiple-beneficiary permit shall jointly designate one 08 member in charge. 09 * Sec. 9. AS 05.15.112(a) is repealed and reenacted to read: 10 (a) Each municipality or qualified organization that applies for a permit under 11 this chapter shall designate a member in charge and at least one alternate member in 12 charge. The member in charge and alternate members in charge designated must have 13 passed a test formulated by the department on the contents of this chapter and the 14 regulations adopted under this chapter. The department shall administer the test at 15 least four times a year. Municipalities and qualified organizations that hold a multiple 16 beneficiary permit shall jointly designate one member in charge and at least one 17 alternate member in charge. 18 * Sec. 10. AS 05.15.112(b) is amended to read: 19 (b) The member in charge is responsible for preparation, maintenance, and 20 transmittal of all records and reports required of the permittee. The member in charge 21 shall be a member of the qualified organization or the board of directors of the 22 qualified organization or an employee of the municipality. In the case of a multiple-beneficiary permit, the 23 member in charge shall be a member of one of the 24 qualified organizations or the board of directors of one of the qualified 25 organizations or an employee of one of the municipalities. 26 * Sec. 11. AS 05.15.112(b) is repealed and reenacted to read: 27 (b) The member in charge is responsible for preparation, maintenance, and 28 transmittal of all records and reports required of the permittee, and, if the permittee has 29 entered into a contract with an operator under AS 05.15.115, for monitoring the 30 operator's performance under and compliance with that contract. The alternate 31 members in charge are responsible for the duties of the member in charge in the
01 absence of the member in charge. The member in charge and the alternate members 02 in charge shall be members of the qualified organization or the board of directors of 03 the qualified organization or employees of the municipality. In the case of a multiple 04 beneficiary permit, the member in charge and the alternate members in charge shall 05 be members of one of the qualified organizations of the board of directors of one of 06 the qualified organizations or employers of one of the municipalities. 07 * Sec. 12. AS 05.15.112(d) is amended to read: 08 (d) The municipality or qualified organization, or the holders of a multiple-beneficiary permit, shall 09 designate alternate members in charge who are responsible 10 for the duties of the member in charge in the absence of the member in charge. 11 * Sec. 13. AS 05.15.112 is amended by adding a new subsection to read: 12 (e) If a permittee's designated member in charge or sole alternate member in 13 charge resigns or is no longer able to serve as member in charge or alternate member 14 in charge, the permittee has six months to replace the member in charge or alternate 15 member in charge with a person who meets the requirements of this section, and to 16 notify the department of the replacement. If after six months the permittee has not 17 replaced the member in charge or alternate member in charge with a person who meets 18 the requirements of this section, or has not notified the department of the replacement, 19 the permittee's permit is suspended until the requirements of this subsection are met. 20 * Sec. 14. AS 05.15.115(d) is amended to read: 21 (d) A permittee shall submit by certified mail to the department for approval 22 a copy of each contract with an operator with whom the permittee contracts to conduct 23 activities subject to this chapter. The contract must meet the requirements of this 24 section. The department shall approve or disapprove the contract. If the 25 contract is disapproved, reasons for the disapproval shall be provided in writing 26 to the permittee. Activities may not be conducted under the contract before the 27 contract is approved. Subsequent amendments to an approved contract do not 28 take effect until the amendments are approved by the department [THE 29 PERMITTEE SHALL SUBMIT TO THE DEPARTMENT A COPY OF THE 30 CONTRACT OR SUBSEQUENT AMENDMENT OF THE CONTRACT BY 31 CERTIFIED MAIL AT LEAST 15 DAYS BEFORE ACTIVITIES ARE
01 CONDUCTED UNDER THE CONTRACT OR AMENDED CONTRACT]. 02 * Sec. 15. AS 05.15.122(b) is amended to read: 03 (b) The department may issue an operator's license to a natural person, 04 municipality, or qualified organization that 05 (1) applies on the form provided by the department; 06 (2) pays the annual fee of $500; 07 (3) discloses the identity of persons employed by the applicant in a 08 managerial or supervisory capacity; 09 (4) submits proof of liability insurance satisfactory to the department; 10 [AND] 11 (5) posts a bond or security satisfactory to the department in the 12 amount of $25,000 for each permit under which the operator operates up to a 13 maximum of $100,000; and 14 (6) if a natural person, has passed a test formulated by the 15 department on the contents of this chapter and the regulations adopted under this 16 chapter and administered by the department at least four times a year; or, if a 17 municipality or qualified organization, has designated a municipal employee or 18 member of the organization who has passed this test. 19 * Sec. 16. AS 05.15.124 is amended to read: 20 Sec. 05.15.124. MUNICIPAL REGULATION OF OPERATORS. A 21 municipality may by ordinance prohibit an operator or a vendor from conducting 22 activities under this chapter within the municipality. 23 * Sec. 17. AS 05.15.128(a) is amended to read: 24 (a) The department shall revoke the license of an operator who does not 25 (1) report an adjusted gross income of at least 15 percent of gross 26 income annually [FOR TWO CONSECUTIVE QUARTERS] based on the total 27 operation of the operator; or 28 (2) pay to each authorizing permittee annually [FOR TWO 29 CONSECUTIVE QUARTERS] at least 30 percent of the adjusted gross income, as 30 determined under (1) of this subsection, from a pull-tab activity or at least 10 [15] 31 percent of the adjusted gross income, as determined under (1) of this subsection, from
01 a gaming activity other than pull-tabs, received from activities conducted on behalf 02 of the authorizing permittee. 03 * Sec. 18. AS 05.15.140(b) is amended to read: 04 (b) In an application for a permit, a municipality or qualified organization shall 05 disclose the name and address of each person responsible for the operation of the 06 activity and whether any person named 07 (1) has been convicted of [, IN PRISON FOR, OR ON PAROLE FOR] 08 a violation of a law of this state that is, or a law or ordinance of another state that 09 would be if committed in this state, an unclassified felony described in AS 11, a 10 Class A felony, extortion, or a violation of a law or ordinance of this state or 11 another jurisdiction that is [WITHIN THE PRECEDING FIVE YEARS, OR 12 CONVICTED OF] a crime involving theft or dishonesty or [OF] a violation of [A 13 MUNICIPAL, STATE, OR FEDERAL] gambling laws [LAW]; or 14 (2) has a prohibited financial interest, as defined in regulations adopted 15 by the commissioner, in the operation of the activity. 16 * Sec. 19. AS 05.15 is amended by adding a new section to read: 17 Sec. 05.15.145. MULTIPLE-BENEFICIARY PERMITS. (a) Two to six 18 municipalities or qualified organizations, or a combination of two to six municipalities 19 and qualified organizations, may jointly apply for a multiple-beneficiary permit under 20 AS 05.15.100(d). The commissioner may not issue or renew a permit except upon 21 satisfactory proof that each joint applicant is a municipality or qualified organization, 22 the activity may be permitted under this chapter, and the issuance of a permit is not 23 detrimental to the best interests of the public. Upon request of the commissioner, the 24 joint applicants shall prove conclusively each of these requirements before a permit 25 may be issued or renewed. 26 (b) The provisions of AS 05.15.140(b) - (d) apply to multiple-beneficiary 27 permits and applications for them. 28 (c) A municipality or qualified organization that is among the holders of a 29 multiple-beneficiary permit may withdraw from the permit by giving written notice of 30 intent to withdraw to the department and to the other holders of the permit. The 31 effective date of the withdrawal is 30 days after the department receives written notice
01 of intent. A municipality or qualified organization that withdraws from a multiple-beneficiary permit may apply for 02 a permit under AS 05.15.100(a), but its share of the 03 prizes awarded under the multiple-beneficiary permit and the prizes it awards under 04 its own permit are subject to the maximums established in AS 05.15.180(g). 05 (d) The holders of a multiple-beneficiary permit shall jointly file reports with 06 the department that comply with the reporting requirements imposed on operators 07 under AS 05.15.083. 08 * Sec. 20. AS 05.15.150(a) is amended to read: 09 (a) The authority to conduct the activity authorized by this chapter is 10 contingent upon the dedication of the net proceeds of the charitable gaming activity 11 [RAFFLES OR CONTESTS] to the awarding of prizes to contestants or participants 12 and to political, educational, civic, public, charitable, patriotic or religious uses in the 13 state. "Political, educational, civic, public, charitable, patriotic, or religious uses" means 14 uses benefiting persons either by bringing them under the influence of education or 15 religion or relieving them from disease, suffering, or constraint, or by assisting them 16 in establishing themselves in life, or by providing for the promotion of the welfare and 17 well-being of the membership of the organization within their own community, or 18 through aiding candidates for public office or groups that support candidates for public 19 office, or by erecting or maintaining public buildings or works, or lessening the burden 20 on government, but does not include 21 (1) the direct or indirect payment of any portion of the net 22 proceeds of a bingo or pull-tab game to a lobbyist registered under AS 24.45; or 23 (2) the erection, acquisition, improvement, maintenance, or repair of 24 real, personal, or mixed property unless it is used exclusively for one or more of the 25 permitted uses [STATED]. 26 * Sec. 21. AS 05.15.160 is amended by adding new subsections to read: 27 (c) The total amount of authorized expenses that may be incurred under (a) of 28 this section in connection with a pull-tab activity may not exceed 70 percent of the 29 adjusted gross income from that pull-tab activity. 30 (d) The total amount of authorized expenses that may be incurred under (a) of 31 this section in connection with any gaming activity other than pull-tabs may not exceed
01 90 percent of the adjusted gross income from that gaming activity. 02 * Sec. 22. AS 05.15.170 is repealed and reenacted to read: 03 Sec. 05.15.170. SUSPENSION OR REVOCATION OF PERMIT, LICENSE, 04 OR VENDOR REGISTRATION. (a) The department may suspend, for a period of 05 up to one year, or revoke a permit, license, or vendor registration, after giving notice 06 to and an opportunity to be heard by the permittee or licensee, if the permittee, 07 licensee, or vendor 08 (1) violates or fails to comply with a requirement of this chapter or of 09 a regulation adopted under this chapter; 10 (2) breaches a contractual agreement with a permittee, licensee, or 11 registered vendor; 12 (3) becomes disqualified to participate in charitable gaming as provided 13 in AS 05.15.105; for the purposes of this paragraph, a permittee, licensee, or vendor 14 that is not a natural person is considered convicted if an owner or manager of the 15 permittee, licensee, or vendor is convicted; or 16 (4) knowingly submits false information to the department or, in the 17 case of a registered vendor, to a permittee when the vendor knows that the false 18 information will be submitted to the department as part of an application for 19 registration; 20 (5) gives or acts upon any inside information on the status of the prizes 21 awarded or to be awarded in a pull-tab game. 22 (b) If the department revokes a license or vendor registration under this 23 section, it may prohibit the licensee or vendor from reapplying for a license or vendor 24 registration for a period of not more than five years. If the department revokes a 25 permit under this section, it may prohibit the permittee from reapplying for a permit 26 for a period of not more than one year. 27 * Sec. 23. AS 05.15.180(d) is amended to read: 28 (d) The total value of door prizes offered or awarded under authority of a 29 permit issued to a municipality or qualified organization under this chapter or under 30 authority of a multiple-beneficiary permit may not exceed $20,000 a month or 31 $240,000 a year.
01 * Sec. 24. AS 05.15.180(e) is amended to read: 02 (e) The total value of all door prizes offered or awarded at a single facility or 03 bingo hall or parlor by an operator on behalf of authorizing permittees [OR BY A 04 PERMITTEE IN CONJUNCTION WITH OTHER PERMITTEES] may not exceed 05 $20,000 a month or $240,000 a year. 06 * Sec. 25. AS 05.15.180(g) is amended to read: 07 (g) A municipality or a qualified organization may award a maximum of 08 $1,000,000 in prizes each year in activities authorized under this chapter; however, if 09 a municipality or a qualified organization contracts with an operator to conduct on its 10 behalf activities authorized under this chapter, the municipality or qualified 11 organization may award a maximum of $500,000 in prizes each year. The holders of 12 a multiple-beneficiary permit under AS 05.15.100(d) may award a maximum in 13 prizes each year of $1,000,000 times the number of holders of the permit for 14 activities authorized under this chapter. In this subsection "activities authorized 15 under this chapter" means all activities subject to this chapter other than bingo. 16 * Sec. 26. AS 05.15.181(a) is amended to read: 17 (a) A person may not manufacture pull-tabs in the state, and may not sell or 18 distribute a pull-tab that the person has manufactured outside of the state to 19 persons in the state, unless the person has received a pull-tab manufacturer's license 20 issued by the department. 21 * Sec. 27. AS 05.15.181(b) is amended to read: 22 (b) The department may issue a pull-tab manufacturer's license to a person 23 who pays an annual fee of $2,500 [$500]. 24 * Sec. 28. AS 05.15.183 is amended by adding a new subsection to read: 25 (e) A distributor may not 26 (1) take an order for the purchase of a pull-tab series from a vendor; 27 (2) sell a pull-tab series to a vendor; or 28 (3) deliver a pull-tab series to a vendor. 29 * Sec. 29. AS 05.15.185 is amended to read: 30 Sec. 05.15.185. DISTRIBUTION OF PULL-TAB GAMES. Each series of 31 pull-tabs distributed in the state must be sealed and have a serial number label issued
01 by the National Association of Fundraising Ticket Manufacturers or other serial 02 number label approved by the department and may be distributed only to 03 (1) a municipality or a qualified organization that has obtained a permit 04 issued under this chapter; 05 (2) [OR TO] an operator on behalf of an authorizing permittee; or 06 (3) a distributor licensed under this chapter. 07 * Sec. 30. AS 05.15.187(e) is amended to read: 08 (e) Pull-tabs may not be sold to a person under the age of 21 [19] years. A 09 person under the age of 21 [19] years may not purchase a pull-tab. 10 * Sec. 31. AS 05.15.187(f) is amended to read: 11 (f) Each permittee [MUNICIPALITY OR QUALIFIED ORGANIZATION] 12 that had gross receipts exceeding $100,000 during the preceding year from activities 13 conducted under this chapter or that is required to report under AS 05.15.080(a), that 14 conducts a pull-tab game shall maintain records for two years of each prize of $50 or 15 more, the first day and last day that each series was distributed, the serial number of 16 each series, and the distributor from whom each series was purchased. In this section 17 "permittee" includes municipalities and qualified organizations that jointly hold 18 a multiple-beneficiary permit. 19 * Sec. 32. AS 05.15.187 is amended by adding new subsections to read: 20 (h) An owner, manager, or employee of a person holding a permit or license 21 under this chapter, or registered under this chapter as a vendor, may not purchase a 22 pull-tab from a pull-tab series manufactured, distributed, or sold by the permittee, 23 licensee, or registered vendor. 24 (i) A permittee, operator, or registered vendor may not turn over a prize of $50 25 or more to a person with a pull-tab card entitling the person to that prize unless the 26 person signs a receipt for the prize and returns the receipt to the permittee, operator, 27 or vendor. The receipt must be in a form approved by the department. 28 * Sec. 33. AS 05.15 is amended by adding a new section to article 2 to read: 29 Sec. 05.15.188. PULL-TAB SALES BY VENDORS ON BEHALF OF 30 PERMITTEES; VENDOR REGISTRATION. (a) A permittee may contract with a 31 vendor to sell pull-tabs on behalf of the permittee, if the permittee first registers the
01 vendor with the department by applying for registration on a form prescribed by the 02 department and by submitting the registration fee of $50 for each location at which the 03 vendor will sell pull-tabs. 04 (b) Upon approval of the vendor registration, the department shall issue an 05 endorsement to the permittee's permit that authorizes the conduct of pull-tab sales at 06 that vendor location. 07 (c) The endorsement issued under (b) of this section is an extension of the 08 permittee's privilege under AS 05.15.100 to conduct pull-tab sales in this state. A 09 vendor may not sell a pull-tab series until a copy of the permit containing the 10 endorsement for the new vendor location has been posted by the permittee in the 11 registered vendor establishment. The endorsed permit must be clearly visible to the 12 gaming public. 13 (d) A separate endorsement shall be issued for each vendor location. The 14 permittee shall inform the department when a vendor with whom the permittee is 15 contracting changes the physical location at which pull-tabs are sold, and shall return 16 to the department all copies of a permit endorsed to a vendor that is no longer selling 17 pull-tabs on behalf of the permittee. Failure to inform the department of a change in 18 vendor location, or to return the endorsed copies of a permit to the department after 19 a vendor change, may constitute grounds for the suspension or revocation of a 20 permittee's permit. 21 (e) At the time that a permittee annually renews its permit, it shall also renew 22 the registration of all locations where a vendor is selling pull-tabs on the permittee's 23 behalf and shall pay a registration fee of $50 for each vendor location. 24 (f) A permittee that uses a vendor to sell pull-tabs on its behalf shall enter into 25 a written contract with that vendor. The department may inspect this contract. If the 26 contract contains provisions that violate this chapter or the regulations adopted under 27 it, the department may declare the contract void, and may suspend or revoke the 28 registration of the vendor and the permit of the permittee. 29 (g) A person, other than a permittee's member-in-charge, may not directly 30 supply a pull-tab series to a registered vendor for sale by that vendor on behalf of the 31 permittee.
01 (h) If a permittee contracts with a vendor under (a) of this section, the contract 02 must provide that the permittee shall receive no less than 70 percent of the ideal net. 03 (i) An amount equal to the ideal net less the compensation owed to the vendor 04 shall be paid by the vendor to the member-in-charge upon delivery of a pull-tab series 05 to the vendor for sale. The amount required to be paid by the vendor shall be paid by 06 check and the check may not be drawn in a manner that the payee is not identified. 07 (j) An operator may not contract with or use a vendor to sell pull-tabs. 08 (k) A permittee may not contract with more than five vendors under this 09 section. 10 * Sec. 34. AS 05.15 is amended by adding new sections to read: 11 Sec. 05.15.195. ORDER PROHIBITING ACTION IN VIOLATION OF 12 CHAPTER. (a) If the commissioner determines that a person has engaged in an act 13 or practice in violation of this chapter or a regulation adopted under this chapter, the 14 commissioner may, after giving reasonable notice to the person and an opportunity for 15 the person to be heard, issue an order prohibiting the violation by the person. The 16 order remains in effect until the person has submitted evidence acceptable to the 17 commissioner showing that the violation has been corrected. 18 (b) If the public interest requires, the commissioner may issue an emergency 19 order prohibiting an act or practice in violation of this chapter or a regulation adopted 20 under this chapter without notice to or an opportunity to be heard by the person 21 affected by the order. The commissioner shall immediately serve the person with a 22 copy of the emergency order. An emergency order expires 60 days after the date it 23 is issued, if the person affected by the order requests a hearing within 15 days of 24 receipt of the order. If the person does not request a hearing within 15 days of receipt 25 of the emergency order, the order becomes permanent. Following a hearing, the 26 commissioner may rescind, modify, or make permanent the emergency order. 27 (c) A party aggrieved by an order under this section may appeal to the superior 28 court. 29 Sec. 05.15.197. PROHIBITION OF CHARITABLE GAMING. (a) The 30 following question, appearing alone, may be placed before the voters of a municipality 31 or an established village in accordance with AS 05.15.198: "Shall charitable gaming
01 in . . . . . . . (name of municipality or village) be prohibited? (yes or no)". 02 (b) The following question, appearing alone, may be placed before the voters 03 of a municipality or an established village in accordance with AS 05.15.198: "Shall 04 pull-tab sales in . . . . . . . . . . (name of municipality or village) be prohibited? (yes 05 or no)." 06 (c) If a majority of the voters vote "yes" on the question set out in (a) or (b) 07 of this section, the department shall be notified immediately after certification of the 08 results of the election and thereafter the department may not issue a license, permit, 09 or vendor registration authorizing charitable gaming or pull-tab sales, as appropriate, 10 within the boundaries of a municipality and in unincorporated areas within five miles 11 of the boundaries of the municipality or within the perimeter of an established village. 12 As necessary to implement the results of an election under (a) or (b) of this section, 13 existing licenses, permits, and vendor registrations for charitable gaming or pull-tab 14 sales within the boundaries of a municipality and in unincorporated areas within five 15 miles of the boundaries of the municipality or within the perimeter of an established 16 village are void 90 days after the results of the election are certified. A license or 17 vendor registration that will expire during the 90 days after the results of a local option 18 election under this section are certified is void as of the expiration date. 19 Sec. 05.15.198. PROCEDURE FOR LOCAL OPTION ELECTIONS. (a) The 20 local governing body of a municipality, whenever a number of registered voters equal 21 to at least 10 percent of the number of votes cast at the last regular municipal election 22 petition the local governing body to do so, shall place upon a separate ballot at the 23 next regular election or at a special election the question set out in AS 05.15.197 that 24 is the subject of the petition. The local governing body shall conduct the election in 25 accordance with the election ordinance of the municipality. 26 (b) The lieutenant governor, whenever 10 percent of the registered voters 27 residing within an established village petition the lieutenant governor to do so, shall 28 place upon a separate ballot at a special election the question set out in AS 05.15.197 29 that is the subject of the petition. The lieutenant governor shall conduct the election 30 in the manner prescribed by AS 15 (Alaska Election Code). 31 (c) Notwithstanding any other provisions of law, an election under (a) or (b)
01 of this section to remove a restriction on charitable gaming imposed under 02 AS 05.15.197 may not be conducted more than once every 12 months. 03 (d) AS 29.26.110 - 29.26.160 apply to a petition under (a) of this section in 04 a general law municipality except the 05 (1) number of required signatures is determined under (a) of this 06 section rather than under AS 29.26.130; 07 (2) application filed under AS 29.26.110 must contain the question set 08 out under AS 05.15.197 rather than containing an ordinance or resolution; 09 (3) petition must contain the question set out under AS 05.15.197 rather 10 than material required under AS 29.26.120(a)(1) and (2). 11 * Sec. 35. AS 05.15.200(b) is amended to read: 12 (b) A person who, with the intent to mislead a public servant in the 13 performance of the public servant's duty, submits a false statement in an application 14 for a permit, license, or vendor registration under this chapter [,] is guilty of unsworn 15 falsification. 16 * Sec. 36. AS 05.15.210 is amended by adding new paragraphs to read: 17 (36) "established village" means an unincorporated community that is 18 in 19 (A) the unorganized borough and that has 25 or more permanent 20 residents; or 21 (B) an organized borough, has 25 or more permanent residents; 22 and 23 (i) is on a road system and is located more than 50 24 miles outside the boundary limits of a unified municipality; or 25 (ii) is not on a road system and is located more than 15 26 miles outside the boundary limits of a unified municipality; 27 (37) "fund raiser or consultant" means a person who provides advice 28 or technical assistance in support of or concerning the conduct of gaming activities 29 under this chapter, whether the person is or is not an employee of a licensee; 30 (38) "governing body" has the meaning given in AS 29.71.800. 31 (39) "ideal net" means an amount equal to the total amount of receipts
01 that would be received if every individual pull-tab ticket in a series were sold at face 02 value, less the prizes to be awarded for that series; 03 (40) "managerial or supervisory capacity" means that the employee 04 (A) is responsible for gaming receipts; 05 (B) has the authority to hire employees or to dismiss or 06 otherwise discipline them; 07 (C) prepares financial reports required under this chapter; 08 (D) is responsible for keeping the accounts for activities under 09 this chapter; 10 (E) is responsible for conducting activities under this chapter, 11 including the arranging for locations at which those activities will occur; or 12 (F) is a fund raiser or a consultant; 13 (41) "permittee" means a municipality or a qualified organization that 14 holds a valid permit under AS 05.15.100; 15 (42) "vendor" means a business whose primary activity is not regulated 16 by this chapter but that 17 (A) is engaged in the sale of pull-tabs on behalf of a permittee; 18 (B) holds a business license under AS 43.70; and 19 (C) the business is an establishment holding a 20 (i) beverage dispensary license under AS 04.11.090 that 21 has not been designated by the Alcoholic Beverage Control Board under 22 AS 04.16.049(a)(2) - (3), has not been exempted by the Department of 23 Labor under AS 04.16.049(c) and AS 23.10.355, and if the 24 establishment is a hotel, motel, resort, or similar business that caters to 25 the traveling public as a substantial part of its business, does not allow 26 the sale of pull-tabs in a dining room, banquet room, guest room, or 27 other public areas other than a room in which there is regularly 28 maintained a fixed counter or service bar at which alcoholic beverages 29 are sold or served to members of the public for consumption; 30 (ii) an establishment holding a package store license 31 under AS 04.11.150.
01 * Sec. 37. AS 05.15.122(c), 05.15.122(d), and 05.15.140(c) are repealed. 02 * Sec. 38. TRANSITIONAL PROVISION. The Department of Commerce and Economic 03 Development shall prepare the tests required by AS 05.15.112(a), as amended by sec. 9 of this 04 Act, and by AS 05.15.122(b), as amended by sec. 15 of this Act, so that they may first be 05 offered no later than January 1994. 06 * Sec. 39. Except for secs. 1, 2, 9, 11, 13, 15, 17, and 21 of this Act, this Act takes effect 07 immediately under AS 01.10.070(c). 08 * Sec. 40. Sections 17 and 21 of this Act take effect January 1, 1994. 09 * Sec. 41. Sections 1, 2, 9, 11, 13, and 15 of this Act take effect January 1, 1995. 10