HB 536: "An Act relating to charitable gaming."
00HOUSE BILL NO. 536 01 "An Act relating to charitable gaming." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 05.15.020(b) is repealed and reenacted to read: 04 (b) In addition to the fee provided in (c) of this section, each municipality or 05 qualified organization that has gross receipts of $20,000 or more from an authorized 06 activity, other than bingo or pull-tab games, shall annually pay to the department one 07 percent of the net proceeds received during the preceding year from that authorized 08 activity. 09 * Sec. 2. AS 05.15.060(a) is amended to read: 10 (a) The department shall adopt regulations under AS 44.62 (Administrative 11 Procedure Act) necessary to carry out this chapter covering, but not limited to, 12 (1) the issuance, renewal, and revocation of permits, licenses, and 13 vendor registrations; 14 (2) a method of
01 (A) ascertaining net proceeds of 02 (i) an activity conducted by a permittee or operator 03 other than bingo or pull-tab games, the determination of items of 04 expense that may be incurred or paid, and the limitation of the amount 05 of the items of expense to prevent the proceeds from the activity 06 permitted from being diverted to noncharitable, noneducational, 07 nonreligious, or profit-making organizations, individuals, or groups; 08 (ii) bingo or pull-tab games conducted by the holders 09 of a multiple-beneficiary permit, the determination of items of 10 expense that may be incurred or paid, and the limitation of the 11 amount of the items of expense to prevent the proceeds from the 12 activity permitted from being diverted to noncharitable, 13 noneducational, nonreligious, or profit-making organizations, 14 individuals, or groups; 15 (B) accounting for gross receipts from bingo or pull-tab 16 games conducted by a municipality or qualified organization or an 17 operator and of assuring that payments due to permittees, the holders of 18 a multiple-beneficiary permit, and the department are made at the times 19 and in the amounts or percentages required and to prevent the proceeds 20 from the activity permitted from being diverted to noncharitable, 21 noneducational, nonreligious, or profit-making organizations, individuals, 22 or groups; 23 (3) the immediate revocation of permits, licenses, and vendor 24 registrations authorized under this chapter if this chapter or regulations adopted under 25 it are violated; 26 (4) the requiring of detailed, sworn, financial reports of operations from 27 permittees and licensees including detailed statements of receipts and payments; 28 (5) the investigation of permittees, licensees, registered vendors, and 29 their employees, including the fingerprinting of those permittees, licensees, registered 30 vendors, and employees whom the department considers it advisable to fingerprint; 31 (6) the method and manner of conducting authorized activities and
01 awarding of prizes or awards, and the equipment that may be used; 02 (7) the number of activities that may be held, operated, or conducted 03 under a permit during a specified period; however, the department may not allow more 04 than 14 bingo sessions a month and 35 bingo games a session to be conducted under 05 a permit; the holders of a multiple-beneficiary permit under AS 05.15.100(d) may hold, 06 operate, or conduct the number of sessions and games a month equal to the number 07 allowed an individual permittee per month multiplied by the number of municipalities 08 and qualified organizations that hold [HOLDERS OF] the multiple-beneficiary 09 permit; 10 (8) a method of accounting for receipts and disbursements by operators, 11 including the keeping of records and requirements for the deposit of all receipts in a 12 bank; 13 (9) the disposition of funds in possession of a permittee, a person, 14 municipality, or qualified organization that possesses an operator's license, or a 15 registered vendor at the time a permit, a license, or a vendor registration is 16 surrendered, revoked, or invalidated; 17 (10) restrictions on the participation by employees of the Department 18 of Fish and Game in salmon classics and in king salmon classics, and by employees 19 of Douglas Island Pink and Chum in king salmon classics; 20 (11) other matters the department considers necessary to carry out this 21 chapter or protect the best interest of the public. 22 * Sec. 3. AS 05.15 is amended by adding a new section to read: 23 Sec. 05.15.075. BINGO AND PULL-TAB GAME TAX. Each municipality or 24 qualified organization that is permitted to conduct, or that is one of the holders of a 25 multiple-beneficiary permit to conduct, a bingo or pull-tab game shall pay a bingo and 26 pull-tab game tax in the amount of (1) five percent of the total gross receipts from 27 bingo and pull-tab games, other than pull-tab games conducted by a registered vendor, 28 and (2) five percent of the ideal gross from a pull-tab game conducted by a registered 29 vendor. The tax shall be paid quarterly in the manner provided in AS 05.15.080. 30 * Sec. 4. AS 05.15.080(a) is amended to read: 31 (a) A municipality or a qualified organization issued a permit under this
01 chapter shall file a report with the department by the 45th day following each calendar 02 quarter in which the permittee had gross receipts from bingo or pull-tab games [OF 03 $50,000 OR MORE FROM ACTIVITIES] authorized under this chapter. The report 04 must include, for the bingo and pull-tab games [THE TYPE OF ACTIVITY 05 CONDUCTED], the dates [DATE] and locations [LOCATION] of the games, the 06 amount of gross receipts from bingo and [ACTIVITY], the amount of gross receipts 07 from pull-tab games, the amount of gaming [AUTHORIZED] expenses, the value of 08 prizes awarded, [THE AMOUNT OF NET PROCEEDS,] and other information the 09 department may require. The quarterly tax payment required under AS 05.15.075 10 shall be submitted with the report. A [HOWEVER, IF THE ONLY ACTIVITY 11 CONDUCTED BY A] municipality or qualified organization that has not conducted 12 bingo or pull-tab games during a calendar quarter is [A RAFFLE OR LOTTERY, 13 THEN THE MUNICIPALITY OR QUALIFIED ORGANIZATION IS] not required 14 to file a report under this subsection [UNTIL THE RAFFLE OR LOTTERY IS 15 COMPLETED]. 16 * Sec. 5. AS 05.15 is amended by adding a new section to read: 17 Sec. 05.15.082. REPORTS AND FEES REQUIRED OF MULTIPLE- 18 BENEFICIARY PERMITS. (a) The holders of a multiple-beneficiary permit shall file a 19 report with the department by the 45th day following each calendar quarter in which the 20 multiple-beneficiary permit had gross receipts from bingo or pull-tab games authorized under 21 this chapter. The report must include for the bingo and pull-tab games, the dates and locations 22 of the games, the amount of gross receipts from bingo and the amount of gross receipts from 23 pull-tab games, the amount of authorized expenses, the value of prizes awarded, the amount 24 of net proceeds, a completed Internal Revenue Service Form 941, a copy of the employer 25 contributions and wage reports submitted to the Department of Labor for the quarter for those 26 employed by the holders of the multiple-beneficiary permits to conduct activities under this 27 chapter, and other information the department may require. The quarterly tax payment 28 required under AS 05.15.075 shall be submitted with the report. A multiple-beneficiary 29 permittee that has not conducted bingo or pull-tab games during a calendar quarter is not 30 required to file a report under this subsection. 31 (b) The holders of a multiple-beneficiary permit shall file an annual report with
01 the department by March 15 of the year following the year in which activities were 02 conducted, accompanied by the payment of the additional fee, as may be required 03 under AS 05.15.020(b). The report must list the types of activities conducted, the total 04 amount of gross receipts from bingo and the total amount of gross receipts from pull- 05 tab games, the percentage of gross receipts from bingo and pull-tab games paid to each 06 municipality and qualified organization that holds the multiple-beneficiary permit, and the 07 amount of gross receipts, authorized expenses, prizes awarded, and net proceeds for each 08 activity conducted other than bingo or pull-tab games. The annual report must also include 09 a completed Internal Revenue Service Form W-2 for each person employed by the operator 10 during the preceding year. 11 * Sec. 6. AS 05.15.083 is amended to read: 12 Sec. 05.15.083. REPORTS TO DEPARTMENT BY OPERATORS. (a) An 13 operator shall file a report with the department by the last business day of the month 14 following each calendar quarter in which an activity was conducted. The report must 15 include, for each authorizing permittee on whose behalf an activity was conducted 16 during the quarter, the date and location of each activity, the type of activity 17 conducted, and, if the activity was 18 (1) a bingo or pull-tab game, the amount of gross receipts for bingo 19 and the amount of gross receipts for pull-tab games, the amount of gaming 20 [AUTHORIZED] expenses, the value of prizes awarded, the amount of gross receipts 21 [NET PROCEEDS] paid to the permittee for bingo and the amount of gross 22 receipts paid to the permittee for pull-tab games, and other information the 23 department may require; 24 (2) other than a bingo or pull-tab game, the amount of gross 25 receipts for the activity, the amount of authorized expenses, the value of prizes 26 awarded, the amount of net proceeds paid to the permittee, a completed Internal 27 Revenue Service Form 941, [; AND] a copy of the operator's employer contributions 28 and wage reports submitted to the Department of Labor for the quarter, and other 29 information the department may require; however [. HOWEVER], if the only 30 activity conducted by an operator during the calendar quarter is a raffle or lottery, then 31 the operator is not required to file a report under this subsection until the raffle or
01 lottery is completed. 02 (b) An operator shall file an annual report with the department no later than 03 February 28 of the year following the year in which activities were conducted. The 04 report must include, for each authorizing permittee on whose behalf an activity was 05 conducted, the types of activities conducted, the total amount of gross receipts for 06 each activity conducted, the total amount of authorized expenses, the total value of 07 prizes awarded, the total amount of gross receipts from bingo and the total amount 08 of gross receipts from pull-tab games paid to each authorizing permittee, and the 09 total amount of net proceeds from activities other than bingo or pull-tabs paid to 10 each authorizing permittee. The annual report must also include a completed Internal 11 Revenue Service Form W-2 for each person employed by the operator during the 12 preceding year. 13 * Sec. 7. AS 05.15.087(a) is amended to read: 14 (a) An operator shall file a monthly report with each authorizing permittee for 15 which the operator has conducted an activity during the preceding month. The report 16 must include a daily summary of activity conducted under the permit issued to the 17 authorizing permittee and a daily [AN] accounting of gross receipts from bingo, gross 18 receipts from pull-tab games, and gross receipts, expenses, and net proceeds from 19 each activity other than bingo or pull-tab games conducted that [FOR THE] 20 month. A check in the amount of the gross receipts from bingo and gross receipts 21 from pull-tab games and in the amount of the net proceeds from activities other 22 than bingo or pull-tabs due to the authorizing permittee for the month must 23 accompany the report. The operator shall file the report by the 15th day after the end 24 of the month covered by the report. 25 * Sec. 8. AS 05.15.087(b) is amended to read: 26 (b) An operator shall file a quarterly report with each authorizing permittee for 27 which the operator has conducted an activity during the preceding calendar quarter. 28 The report must at a minimum contain the information required to be submitted 29 to the department [QUARTERLY SUMMARIES AND YEAR-TO-DATE TOTALS 30 OF THE INFORMATION PROVIDED] under AS 05.15.083(a) [(a) OF THIS 31 SECTION]. The operator shall file the report by the last day of the month following
01 the end of the calendar quarter. 02 * Sec. 9. AS 05.15.095(b) is amended to read: 03 (b) A permittee or operator may not conduct an activity under this chapter 04 during a period in which a report, tax, or fee is delinquent. 05 * Sec. 10. AS 05.15.095(c) is amended to read: 06 (c) A delinquent fee or tax bears interest at the rate set by AS 43.05.225. 07 * Sec. 11. AS 05.15.095(d) is amended to read: 08 (d) A permittee or licensee under this chapter shall pay a penalty of one 09 percent of the unpaid balance, as determined by the department, of a fee or tax due 10 under this chapter for each 30-day period or part of a 30-day period that the fee or tax 11 is delinquent. The department may waive the penalty if the failure to pay the fee or 12 tax on time is due to a reasonable cause, as defined by regulation adopted by the 13 department. The amount of the penalty may not exceed 25 percent of the unpaid fee 14 or tax. 15 * Sec. 12. AS 05.15.100(d) is amended to read: 16 (d) The department may issue a multiple-beneficiary permit to two to six 17 municipalities or qualified organizations or to a combination of two to six 18 municipalities and qualified organizations that apply jointly for the multiple- 19 beneficiary permit. The multiple-beneficiary permit gives the permit holders the privilege 20 of jointly conducting the activities specified in (a) of this section. In this title, unless the 21 context clearly requires otherwise, "permit" includes a multiple- 22 beneficiary permit. 23 * Sec. 13. AS 05.15.115(b) is amended to read: 24 (b) The contract between an authorizing permittee and an operator must 25 include the amount and form of compensation to be paid to the operator, the term of 26 the contract, the activities to be conducted by the operator on behalf of the permittee, 27 the location where the activities are to be conducted, the name and address of the 28 member in charge, and other provisions the department may require. The contract 29 may not contain a provision that requires the permittee to pay to the operator, 30 whether from gaming receipts or proceeds or from other separate funds of the 31 permittee, an amount that would result in the permittee realizing less from the
01 gaming activity than the minimum percentages of gross receipts from bingo and 02 pull-tab games required to be paid to a permittee and the minimum net proceeds 03 required to be paid to a permittee for activities other than bingo and pull-tab 04 games. 05 * Sec. 14. AS 05.15.115(d) is amended to read: 06 (d) A permittee shall submit by certified mail to the department for review 07 [APPROVAL] a copy of each contract with an operator with whom the permittee 08 contracts to conduct activities subject to this chapter. The contract must meet the 09 requirements of this section. If the contract does not meet the requirements of this 10 section or contains provisions that violate this chapter or the regulations adopted 11 under it, the [THE] department shall declare [APPROVE OR DISAPPROVE] the 12 contract void, and may suspend or revoke the license of the operator and the 13 permit of the permittee. Any changes to a contract must be submitted to the 14 department for review under this section [. IF THE CONTRACT IS 15 DISAPPROVED, REASONS FOR THE DISAPPROVAL SHALL BE PROVIDED IN 16 WRITING TO THE PERMITTEE. ACTIVITIES MAY NOT BE CONDUCTED 17 UNDER THE CONTRACT BEFORE THE CONTRACT IS APPROVED. 18 SUBSEQUENT AMENDMENTS TO AN APPROVED CONTRACT DO NOT TAKE 19 EFFECT UNTIL THE AMENDMENTS ARE APPROVED BY THE DEPARTMENT]. 20 * Sec. 15. AS 05.15.128(a) is repealed and reenacted to read: 21 (a) The department shall revoke the license of an operator who does not pay 22 to each authorizing permittee 23 (1) quarterly at least 25 percent of the gross receipts from bingo and 24 25 percent of the gross receipts from a pull-tab game; or 25 (2) annually at least 10 percent of the adjusted gross income from an 26 activity other than bingo or pull-tab games. 27 * Sec. 16. AS 05.15.145(a) is amended to read: 28 (a) Two to six municipalities or qualified organizations, or a combination of 29 two to six municipalities and qualified organizations, may jointly apply for a multiple- 30 beneficiary permit under AS 05.15.100(d). The commissioner may not issue or renew a 31 permit except upon satisfactory proof that each joint applicant is a municipality or qualified
01 organization, the activity may be permitted under this chapter, and the issuance of a permit 02 is not detrimental to the best interests of the public. To apply for a multiple-beneficiary 03 permit, each municipality or qualified organization must at the time of application have 04 a valid permit to individually conduct the activities to be conducted under the multiple-beneficiary permit. The 05 application must also include the contract between the 06 municipalities or qualified organizations that will hold the multiple-beneficiary permit. 07 The contract must describe how the gaming activity will be conducted and how the 08 distribution of the receipts or proceeds will be conducted and must contain a provision 09 that expenses may not be distributed to the holders of the multiple-beneficiary permit. 10 Upon request of the commissioner, the joint applicants shall prove conclusively each of these 11 requirements before a multiple-beneficiary permit may be issued or renewed. 12 * Sec. 17. AS 05.15.145(d) is amended to read: 13 (d) The holders of a multiple-beneficiary permit shall jointly file reports with 14 the department as required [THAT COMPLY WITH THE REPORTING 15 REQUIREMENTS IMPOSED ON OPERATORS] under AS 05.15.082. The holders 16 of a multiple-beneficiary permit are jointly responsible for the conduct of the 17 activities permitted. Suspension, revocation, or other action by the department 18 against a multiple-beneficiary permit is an action against each holder of the 19 permit. The suspension or revocation of a multiple-beneficiary permit also results 20 in the suspension or revocation of the individual permits of the holders of the 21 multiple-beneficiary permit [AS 05.15.083]. 22 * Sec. 18. AS 05.15.145 is amended by adding new subsections to read: 23 (e) The commissioner shall revoke a multiple-beneficiary permit if the 24 following amounts are not distributed to the holders of the multiple-beneficiary permit: 25 (1) for bingo and pull-tab games, quarterly, the greater of 26 (A) at least 25 percent of the gross receipts from bingo and 25 27 percent of the gross receipts from pull-tab games; or 28 (B) the net proceeds from bingo and pull-tab games; and 29 (2) annually, for activities other than bingo or pull-tab games, not less 30 than 10 percent of the adjusted gross income from the activity. 31 (f) The holders of a multiple-beneficiary permit may not
01 (1) charge losses resulting from bad checks or uncollectible debts 02 against the percentage of gross receipts or the net proceeds due to the authorizing 03 permittee; 04 (2) extend credit to players; 05 (3) employ house players; 06 (4) allow the employees of the holders of the multiple-beneficiary 07 permit to play a game conducted under the multiple-beneficiary permit at the location 08 where the employee works for the holders of the multiple-beneficiary permit. 09 * Sec. 19. AS 05.15.150 is amended to read: 10 Sec. 05.15.150. LIMITATION ON USE OF RECEIPTS OR PROCEEDS. 11 (a) The percentage of gross receipts, the ideal gross, and the net proceeds that are 12 required to be paid to, or retained by, a permittee or the holders of a multiple- 13 beneficiary permit for an [AUTHORITY TO CONDUCT THE] activity authorized by this 14 chapter may only be expended by the permittee or the holders of the multiple-beneficiary 15 permit for (1) the payment of the bingo and pull-tab tax under AS 05.15.075, (2) the 16 payment of the federal excise tax on pull-tabs, (3) the payment of the state and federal 17 business income taxes realized from the sale of pull-tabs, (4) the payment of municipal 18 sales taxes on pull-tabs, and (5) [IS CONTINGENT UPON THE DEDICATION OF THE 19 NET PROCEEDS OF THE CHARITABLE GAMING ACTIVITY TO THE AWARDING OF 20 PRIZES TO CONTESTANTS OR PARTICIPANTS AND TO] political, educational, civic, 21 public, charitable, patriotic, or religious uses in the state. "Political, educational, civic, public, 22 charitable, patriotic, or religious uses" means uses benefiting persons either by bringing them 23 under the influence of education or religion or relieving them from disease, suffering, or 24 constraint, or by assisting them in establishing themselves in life, or by providing for the 25 promotion of the welfare and well-being of the membership of the organization within their 26 own community, or through aiding candidates for public office or groups that support 27 candidates for public office, or by erecting or maintaining public buildings or works, or 28 lessening the burden on government. "Political, educational, civic, public, charitable, 29 patriotic, or religious uses" do [, BUT DOES] not include 30 [(1)] the direct or indirect payment of any portion of the gross receipts 31 paid or retained, the ideal gross paid to a permittee, or the net proceeds of a bingo
01 or pull-tab game to a lobbyist registered under AS 24.45, [;] or 02 [(2)] the erection, acquisition, improvement, maintenance, or repair of 03 real, personal, or mixed property unless it is used exclusively for one or more of the 04 permitted uses. The expenditure of gross receipts, ideal gross, or net proceeds paid 05 to, or required to be retained by, a permittee or the holders of a multiple- 06 beneficiary permit to pay gaming expenses or for any other purpose, except as 07 specifically authorized in this section, is prohibited. The commissioner may revoke the 08 permit of a municipality or qualified organization that expends funds in a manner 09 prohibited by this section. 10 (b) The percentage of gross receipts from bingo or pull-tab games required 11 to be paid to a permittee, the percentage of gross receipts or the net proceeds 12 from bingo or pull-tab games required to be paid to the holders of a multiple- 13 beneficiary permit, the percentage of gross receipts or ideal gross from bingo or pull-tab 14 games required to be retained by a permittee, and the net proceeds derived from an [THE] 15 activity other than bingo or pull-tab games must be devoted within one year to one or more 16 of the uses stated in (a) of this section. A municipality or qualified organization desiring to 17 hold the gross receipts, ideal gross, or net proceeds for a period longer than one year must 18 apply to the department for special permission and upon good cause shown the department 19 may grant the request. The accumulation and expenditure of funds held more than one 20 year must be reported to the department and accounted for by the municipality or 21 qualified organization annually. 22 * Sec. 20. AS 05.15 is amended by adding a new section to read: 23 Sec. 05.15.155. PERCENTAGE OF GROSS RECEIPTS FROM BINGO AND 24 PULL-TAB GAMES CONDUCTED BY PERMITTEES. (a) A municipality or 25 qualified organization that conducts a bingo or pull-tab activity must retain at least 25 26 percent of the gross receipts from bingo and 25 percent of the gross receipts from pull- 27 tab games for 28 (1) payment of the tax required under AS 05.15.075 and any other 29 state, municipal, or federal taxes; and 30 (2) dedication to political, educational, civic, public, charitable, 31 patriotic, or religious uses.
01 (b) The commissioner shall revoke the permit of a municipality or qualified 02 organization that fails to retain at least 25 percent of the gross receipts from bingo and 03 25 percent of the gross receipts from pull-tab games as provided in (a) of this section. 04 (c) In this section, "political, educational, civic, public, charitable, patriotic, or 05 religious uses" has the meaning given in AS 05.15.150. 06 * Sec. 21. AS 05.15.160 is amended to read: 07 Sec. 05.15.160. AUTHORIZED EXPENSES. (a) The only expenses that may 08 be incurred or paid in connection with the conduct [OPERATION] of an activity by 09 (1) the holders of a multiple-beneficiary permit are bona fide 10 expenses reasonably necessary for 11 (A) goods, wares, and merchandise necessary for the conduct 12 of the activity; 13 (B) personal services involved with the conduct of the 14 activity, including those performed by an employee of the holders of a 15 multiple-beneficiary permit; 16 (2) a permittee or an operator on behalf of a permittee under a 17 permit issued under this chapter for the conduct of an activity other than bingo or 18 pull-tab games are bona fide expenses reasonably necessary for 19 (A) [(1)] goods, wares, and merchandise necessary for the 20 conduct [OPERATION] of the activity; 21 (B) [(2)] personal services involved with the conduct 22 [OPERATION] of the activity, including those performed by 23 (i) [(A)] an employee of the permittee; or 24 (ii) [(B)] an operator hired by the permittee to conduct 25 the activity if the compensation is not related to the receipts from the 26 activity. 27 (b) Expenses for personal services under (a) of this section are bona fide 28 if the [MUNICIPALITIES, QUALIFIED ORGANIZATIONS, AND OPERATORS 29 MAY PAY THEIR EMPLOYEES A REASONABLE AMOUNT IN] wages or other 30 compensation for personal services are reasonable in amount [RENDERED BY 31 THEIR EMPLOYEES WHILE THE EMPLOYEES ARE ENGAGED IN ACTIVITIES
01 SUBJECT TO THIS CHAPTER]. A reasonable amount of compensation is an amount 02 approximating the amount ordinarily paid by similar businesses for similar work 03 performed under similar circumstances. 04 (c) The total amount of authorized expenses that may be incurred under (a)(1) 05 [(a)] of this section in connection with a bingo or pull-tab game [ACTIVITY] may 06 not exceed 75 [70] percent of the gross receipts [ADJUSTED GROSS INCOME] from 07 the bingo or [THAT] pull-tab games [ACTIVITY]. 08 (d) The total amount of authorized expenses that may be incurred under (a) of 09 this section in connection with any gaming activity other than bingo or pull-tab 10 games [PULL-TABS] may not exceed 90 percent of the adjusted gross income from 11 that gaming activity. 12 * Sec. 22. AS 05.15.165(a) is amended to read: 13 (a) An operator shall pay percentages of gross receipts and the net proceeds 14 to the authorizing permittee by check. 15 * Sec. 23. AS 05.15.165(f) is amended to read: 16 (f) An operator may not 17 (1) charge losses resulting from bad checks or uncollectible debts 18 against the percentage of gross receipts or the net proceeds due to the authorizing 19 permittee; 20 (2) extend credit to players; 21 (3) employ house players; 22 (4) allow the operator's employees to play a game conducted by the 23 operator at the location where the employee works for the operator. 24 * Sec. 24. AS 05.15.167(a) is amended to read: 25 (a) The bond or security filed under AS 05.15.122(b) must be made payable 26 to the department and must be conditioned upon payment of the amounts due to the 27 department and payment of the percentage of gross receipts or the net proceeds due 28 to the authorizing permittee. If the operator fails to make the required payments, the 29 operator forfeits the bond or security to the department. 30 * Sec. 25. AS 05.15.167(b) is amended to read: 31 (b) The amount forfeited under (a) of this section shall be first used to satisfy
01 delinquent fees, taxes, interest, and penalties due the department under this chapter. 02 If the bond or security is not exhausted by payment of delinquent fees, taxes, interest, 03 and penalties, the department may use the remaining amount to pay the percentage 04 of gross receipts and the net proceeds due an authorizing permittee. The total 05 amount available for payment of the percentage of gross receipts and the net 06 proceeds shall be prorated among the permittees to whom gross receipts or proceeds 07 are due from that operator. 08 * Sec. 26. AS 05.15.188(h) is amended to read: 09 (h) If a permittee contracts with a vendor under (a) of this section, the contract 10 must provide that the permittee shall receive no less than 27 [70] percent of the ideal 11 gross [NET]. 12 * Sec. 27. AS 05.15.188(i) is amended to read: 13 (i) An amount equal to the ideal gross [NET] less the compensation owed to 14 the vendor shall be paid by the vendor to the member-in-charge upon delivery of a 15 pull-tab series to the vendor for sale. The amount required to be paid by the vendor 16 shall be paid by check and the check may not be drawn in a manner that the payee is 17 not identified. 18 * Sec. 28. AS 05.15.690(23) is amended to read: 19 (23) "ideal gross [NET]" means an amount equal to the total amount 20 of receipts that would be received if every individual pull-tab ticket in a series were 21 sold at face value [, LESS THE PRIZES TO BE AWARDED FOR THAT SERIES]; 22 * Sec. 29. AS 05.15.184 is repealed.