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SB 27: "An Act establishing the Alaska Gaming Commission; and providing for an effective date."

00SENATE BILL NO. 27 01 "An Act establishing the Alaska Gaming Commission; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 05.15 is amended by adding new sections to read: 05 ARTICLE 4. ALASKA GAMING COMMISSION. 06  Sec. 05.15.300. ALASKA GAMING COMMISSION. (a) The Alaska Gaming 07 Commission is established in the Department of Commerce and Economic 08 Development. The commission is composed of five members appointed by the 09 governor, subject to confirmation by the legislature. 10  (b) Each member of the commission shall at the time of the member's 11 appointment be a resident of the state. One member shall be appointed from each of 12 the four judicial districts of the state, and the fifth member may reside anywhere in the 13 state. 14  (c) A person may not serve as a member of the commission if that person

01  (1) has been convicted of 02  (A) a felony; or 03  (B) an offense under this chapter, AS 11.66.200 - 11.66.280, or 04 a comparable provision of municipal, state, or federal law; 05  (2) holds an operator's license under AS 05.15.122 or a distributor's 06 license under AS 05.15.183; or 07  (3) is an elected official of the state or of a political subdivision of the 08 state. 09  (d) A person may not serve as a member of the commission until the 10 investigation required under AS 18.65.080(b) is completed. 11  (e) The commission shall elect a chair from its membership. 12  (f) Three members of the commission constitute a quorum for the transaction 13 of business. 14  Sec. 05.15.310. TERM OF OFFICE. (a) Members of the commission serve 15 staggered terms of four years. A vacancy is filled by appointment for the unexpired 16 term. 17  (b) A member may not serve for more than eight years. 18  Sec. 05.15.320. REMOVAL AND SUSPENSION OF MEMBERS. (a) The 19 governor may remove a member for cause, including incompetence, neglect of duty, 20 or misconduct in office. A member being removed for cause shall be given a copy of 21 the charges and afforded an opportunity to publicly present a defense in person or by 22 counsel upon not less than 10 days' notice. If a member is removed for cause, the 23 governor shall file with the lieutenant governor a complete statement of all charges 24 made against the member and the governor's findings based on the charges, together 25 with a complete record of the proceedings. 26  (b) The governor may immediately suspend a member for a violation of law 27 or for misconduct in office pending removal from office under (a) of this section. 28  Sec. 05.15.330. COMPENSATION AND PER DIEM. Members of the 29 commission do not receive a salary for their service on the commission but are entitled 30 to per diem and travel expenses authorized for state boards and commissions under 31 AS 39.20.180.

01  Sec. 05.15.340. DUTIES AND POWERS OF THE COMMISSION. (a) The 02 commission shall 03  (1) license, regulate, and supervise games of chance and contests of 04 skill under this chapter; 05  (2) hire an executive director and other staff as needed to enforce and 06 administer this chapter; 07  (3) meet at least once every three months; and 08  (4) adopt regulations necessary to carry out the provisions of this 09 chapter. 10  (b) The commission may appoint a hearing officer to conduct a hearing 11 required by this chapter or by a regulation adopted under it. 12  Sec. 05.15.350. EMPLOYEES OF THE COMMISSION. The executive 13 director of the commission is in the partially exempt service under AS 39.25.120. 14 Other employees of the commission are in the classified service under AS 39.25.100. 15  Sec. 05.15.360. REGULATIONS OF THE COMMISSION. The attorney 16 general shall enforce the regulations of the commission. 17  Sec. 05.15.370. RECORDS OF THE COMMISSION. (a) Except as provided 18 in (b) of this section, all records of the commission are public records and subject to 19 public inspection. 20  (b) Records relating to audits and investigations by the commission, both 21 ongoing and completed, are confidential, except for the audit report issued by the 22 commission and records submitted as evidence in an administrative or judicial 23 proceeding that results from an investigation. 24  Sec. 05.15.380. PROCEEDS. Fees and other money received by the 25 commission shall be paid into the general fund. 26  Sec. 05.15.390. ADMINISTRATIVE PROCEDURE ACT. The operations of 27 the commission are subject to AS 44.62 (Administrative Procedure Act). 28  Sec. 05.15.400. CONFLICT OF INTEREST ACT. The commission is subject 29 to AS 39.50 (conflict of interest). 30 * Sec. 2. AS 05.15.010 is repealed and reenacted to read: 31  Sec. 05.15.010. ALASKA GAMING COMMISSION TO ADMINISTER

01 CHAPTER. The Alaska Gaming Commission shall administer this chapter. 02 * Sec. 3. AS 05.15.100 is amended by adding a new subsection to read: 03  (d) The commissioner may not issue a permit or license under this chapter to 04 a person who has, within one year preceding the person's application for a permit or 05 license, been a member of the Alaska Gaming Commission established under 06 AS 05.15.300. 07 * Sec. 4. AS 05.15.112 is amended by adding a new subsection to read: 08  (e) A person may not serve as a member in charge if the person has, within 09 the preceding one year, been a member of the Alaska Gaming Commission established 10 under AS 05.15.300. 11 * Sec. 5. AS 05.15.210(6) is repealed and reenacted to read: 12  (6) "commission" means the Alaska Gaming Commission; 13 * Sec. 6. AS 11.66.280(2) is amended to read: 14  (2) "gambling" means that a person stakes or risks something of value 15 upon the outcome of a contest of chance or a future contingent event not under the 16 person's control or influence, upon an agreement or understanding that person or 17 someone else will receive something of value in the event of a certain outcome; 18 "gambling" does not include 19  (A) bona fide business transactions valid under the law of 20 contracts for the purchase or sale at a future date of securities or commodities 21 and agreements to compensate for loss caused by the happening of chance, 22 including contracts of indemnity or guaranty and life, health, or accident 23 insurance; [OR] 24  (B) playing an amusement device that 25  (i) confers only an immediate right of replay not 26 exchangeable for something of value other than the privilege of 27 immediate replay; and 28  (ii) does not contain a method or device by 29 which the privilege of immediate replay may be cancelled or revoked; 30 or 31  (C) an activity authorized [BY THE COMMISSIONER OF

01 COMMERCE AND ECONOMIC DEVELOPMENT] under AS 05.15; 02 * Sec. 7. AS 18.65.080 is amended by adding a new subsection to read: 03  (b) The Department of Public Safety shall investigate and ascertain whether 04 a person appointed by the governor to serve as a member of the Alaska Gaming 05 Commission has been convicted of a crime set out in AS 05.15.300(c). 06 * Sec. 8. AS 39.25.120(c) is amended by adding a new paragraph to read: 07  (23) the executive director of the Alaska Gaming Commission. 08 * Sec. 9. AS 39.50.200(b) is amended by adding a new paragraph to read: 09  (55) Alaska Gaming Commission (AS 05.15.300). 10 * Sec. 10. AS 44.62.330(a) is amended by adding a new paragraph to read: 11  (59) Alaska Gaming Commission (AS 05.15.300). 12 * Sec. 11. AS 44.66.010(a) is amended by adding a new paragraph to read: 13  (20) Alaska Gaming Commission (AS 05.15.300) -- June 30, 1997. 14 * Sec. 12. AS 05.15.210(8) and AS 44.33.020(31) are repealed. 15 * Sec. 13. INITIAL COMMISSION APPOINTMENTS. The governor shall make the 16 initial appointment of members of the Alaska Gaming Commission within 120 days after the 17 effective date of this Act. Notwithstanding AS 39.05.055(3), the governor shall set the terms 18 of initial members so that two members serve terms of four years, one member serves a term 19 of three years, one member serves a term of two years, and one member serves a term of one 20 year. 21 * Sec. 14. TRANSITION. (a) Regulations relating to games of chance and contests of 22 skill, adopted by the Department of Revenue or the Department of Commerce and Economic 23 Development under authority of AS 05.15 before July 1, 1993, and in effect on the effective 24 date of this Act remain in effect until regulations relating to that function that are adopted by 25 the Alaska Gaming Commission under AS 05.15 as amended by this Act, take effect. The 26 Alaska Gaming Commission shall administer the Department of Revenue and the Department 27 of Commerce and Economic Development regulations until its own take effect. 28 (b) Until the Alaska Gaming Commission is appointed, the Department of Commerce 29 and Economic Development shall administer games of chance and contests of skill under 30 AS 05.15 and under the regulations referred to in (a) of this section. 31 * Sec. 15. IMPLEMENTATION OF LEGISLATION. To be consistent with the changes

01 made by this legislation, wherever in AS 05.15 and in regulations adopted under those statutes 02 "Department of Commerce and Economic Development," "department," or "commissioner" 03 is used, they shall be read as referring to the Alaska Gaming Commission or commission 04 when to do so would implement the purposes of this Act. Under AS 01.05.031, the revisor 05 of statutes shall implement this section in the statutes, and, under AS 44.62.125(b)(6), the 06 regulations attorney shall implement this section in the administrative regulations. 07 * Sec. 16. This Act takes effect July 1, 1993.