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CSSB 273(FIN): "An Act requiring that gross receipts and ideal gross be used to account for charitable gaming activities; making records received by the Department of Revenue under AS 05.15 subject to the laws relating to public records and providing that the Department of Revenue does not have to make those records available to the public until 90 days following the receipt of the records; requiring municipalities to provide to the state records concerning sales taxes assessed for charitable gaming activities; relating to requiring that a charitable share of charitable gaming receipts be dedicated to charitable uses; relating to reports required for charitable gaming activities; relating to payments to the state from gross receipts of charitable gaming; relating to contracts between operators or vendors and permittees; relating to licensing of multiple-beneficiary permittees and to the duties of a multiple-beneficiary permittee to each holder of the permit; requiring a person employed as a gaming manager to be certified by the state and relating to the duties of a gaming manager; limiting the expenditure of amounts of gross receipts and ideal gross required to be paid to permittees or retained by permittees; relating to the amount of gross receipts and prizes allowed under a permit or a multiple-beneficiary permit; allowing operators to pool gross receipts, prizes, and door prizes among permittees; and providing for an effective date."

00CS FOR SENATE BILL NO. 273(FIN) 01 "An Act requiring that gross receipts and ideal gross be used to account for 02 charitable gaming activities; making records received by the Department of 03 Revenue under AS 05.15 subject to the laws relating to public records and 04 providing that the Department of Revenue does not have to make those records 05 available to the public until 90 days following the receipt of the records; 06 requiring municipalities to provide to the state records concerning sales taxes 07 assessed for charitable gaming activities; relating to requiring that a charitable 08 share of charitable gaming receipts be dedicated to charitable uses; relating to 09 reports required for charitable gaming activities; relating to payments to the state 10 from gross receipts of charitable gaming; relating to contracts between operators 11 or vendors and permittees; relating to licensing of multiple-beneficiary permittees 12 and to the duties of a multiple-beneficiary permittee to each holder of the permit; 13 requiring a person employed as a gaming manager to be certified by the state 14 and relating to the duties of a gaming manager; limiting the expenditure of

01 amounts of gross receipts and ideal gross required to be paid to permittees or 02 retained by permittees; relating to the amount of gross receipts and prizes allowed 03 under a permit or a multiple-beneficiary permit; allowing operators to pool gross 04 receipts, prizes, and door prizes among permittees; and providing for an effective 05 date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 05.15.020(b) is amended to read: 08  (b) A gaming [AN ADDITIONAL] fee of one percent of the charitable share 09 [NET PROCEEDS] received during the preceding year from the activities authorized 10 under the permit shall be paid to the department annually by the municipality or 11 qualified organization authorized to conduct activities under this chapter [,] if the gross 12 receipts for the activities were $20,000 or more. 13 * Sec. 2. AS 05.15.060(a) is amended to read: 14  (a) The department shall adopt regulations under AS 44.62 (Administrative 15 Procedure Act) necessary to carry out this chapter covering, but not limited to, 16  (1) the issuance, renewal, and revocation of permits, certificates, 17 licenses, and vendor registrations; 18  (2) a method of accounting for gross receipts from activities 19 conducted by a municipality or qualified organization or an operator and of 20 assuring that payments due to permittees, the holders of a multiple-beneficiary 21 permit, and the department are made at the times and in the amounts or 22 percentages required [ASCERTAINING NET PROCEEDS, THE DETERMINATION 23 OF ITEMS OF EXPENSE THAT MAY BE INCURRED OR PAID, AND THE 24 LIMITATION OF THE AMOUNT OF THE ITEMS OF EXPENSE] to prevent the 25 proceeds from the activity permitted from being diverted to noncharitable, 26 noneducational, nonreligious, or profit-making organizations, individuals, or groups; 27  (3) the immediate revocation of permits, certificates, licenses, and 28 vendor registrations authorized under this chapter if this chapter or regulations adopted 29 under it are violated; 30  (4) the requiring of detailed, sworn, financial reports of operations from 31 permittees and licensees including detailed statements of receipts and payments;

01  (5) the investigation of permittees, gaming managers, licensees, 02 registered vendors, and their employees, including the fingerprinting of those 03 permittees, gaming managers, licensees, registered vendors, and employees whom the 04 department considers it advisable to fingerprint; 05  (6) the method and manner of conducting authorized activities and 06 awarding of prizes or awards, and the equipment that may be used; 07  (7) the number of activities that may be held, operated, or conducted 08 under a permit during a specified period; however, the department may not allow more 09 than 14 bingo sessions a month and 35 bingo games a session to be conducted under 10 a permit; the holders of a multiple-beneficiary permit under AS 05.15.100(d) may hold, 11 operate, or conduct the number of sessions and games a month equal to the number 12 allowed an individual permittee per month multiplied by the number of municipalities 13 and qualified organizations that hold [HOLDERS OF] the multiple-beneficiary 14 permit; 15  (8) a method of accounting for receipts and disbursements by operators, 16 including the keeping of records and requirements for the deposit of all receipts in a 17 bank; 18  (9) the disposition of funds in possession of a permittee, a gaming 19 manager, a person, municipality, or qualified organization that possesses an operator's 20 license, or a registered vendor at the time a permit, a certificate, a license, or a vendor 21 registration is surrendered, revoked, or invalidated; 22  (10) restrictions on the participation by employees of the Department 23 of Fish and Game in salmon classics and in king salmon classics, and by employees 24 of Douglas Island Pink and Chum in king salmon classics; 25  (11) other matters the department considers necessary to carry out this 26 chapter or protect the best interest of the public. 27 * Sec. 3. AS 05.15.060 is amended by adding a new subsection to read: 28  (c) Records received under this chapter are subject to AS 09.25.110 - 29 09.25.220. Notwithstanding AS 09.25.100 - 09.25.220, the department does not have 30 to make available to the public records received under this chapter until 90 days after 31 the record is received by the department. The department shall release the records to

01 the public after 90 days. 02 * Sec. 4. AS 05.15.070 is amended to read: 03  Sec. 05.15.070. Examination of books and records; access to municipal 04 sales tax records. The department may examine or have examined the books and 05 records of a permittee, an operator, a registered vendor, a gaming manager, or a 06 person licensed to manufacture or to distribute pull-tab games in the state. The 07 department may issue subpoenas for the attendance of witnesses and the production of 08 books, records, and other documents. 09 * Sec. 5. AS 05.15.070 is amended by adding a new subsection to read: 10  (b) A municipality that levies a sales tax on a permittee, an operator, or a 11 registered vendor for activities conducted or allowed under this chapter shall provide 12 the department with information concerning the levy, assessment, and collection of the 13 sales tax when requested by the department. 14 * Sec. 6. AS 05.15.080 is amended to read: 15  Sec. 05.15.080. Reports and fees required of municipalities and qualified 16 organizations. (a) A municipality or a qualified organization issued a permit under 17 this chapter shall file a report with the department by the 45th day following each 18 calendar quarter in which the permittee had gross receipts of $50,000 or more from 19 activities authorized under this chapter. The report must include the type of activity 20 conducted, the dates [DATE] and locations [LOCATION] of the activities 21 [ACTIVITY], the amount of gross receipts from each activity [, THE AMOUNT OF 22 AUTHORIZED EXPENSES], the value of prizes awarded for each activity [, THE 23 AMOUNT OF NET PROCEEDS], and other information the department may require. 24 However, if the only activity conducted by a municipality or qualified organization 25 during a calendar quarter is a raffle and [OR] lottery, then the municipality or 26 qualified organization is not required to file a report under this subsection until the 27 raffle and [OR] lottery is completed. 28  (b) A municipality or a qualified organization issued a permit under this 29 chapter shall file an annual report with the department by March 15 of the year 30 following the year in which activities were conducted, accompanied by the payment 31 of the gaming [ADDITIONAL] fee, as may be required under AS 05.15.020(b). The

01 report must list the types of activities conducted, and, for each activity, the total 02 amount of gross receipts, [THE TOTAL AMOUNT OF AUTHORIZED EXPENSES,] 03 the total value of prizes awarded, and the total amount of the charitable share [NET 04 PROCEEDS]. 05 * Sec. 7. AS 05.15.083 is amended to read: 06  Sec. 05.15.083. Reports to department by operators. (a) An operator shall 07 file a report with the department by the last business day of the month following each 08 calendar quarter in which an activity was conducted. The report must include, for each 09 authorizing permittee on whose behalf an activity was conducted during the quarter, 10 the date and location of each activity, the type of activity conducted, the amount of 11 gross receipts from each activity [, THE AMOUNT OF AUTHORIZED EXPENSES], 12 the value of prizes awarded for each activity , the amount of the charitable share 13 [NET PROCEEDS] paid to the permittee from each activity , and other information 14 the department may require; a completed Internal Revenue Service Form 941; and a 15 copy of the operator's employer contributions and wage reports submitted to the 16 Department of Labor for the quarter. However, if the only activity conducted by an 17 operator during the calendar quarter is a raffle and [OR] lottery, then the operator is 18 not required to file a report under this subsection until the raffle and [OR] lottery is 19 completed. 20  (b) An operator shall file an annual report with the department no later than 21 February 28 of the year following the year in which activities were conducted. The 22 report must include, for each authorizing permittee on whose behalf an activity was 23 conducted, the types of activities conducted, the total amount of gross receipts from 24 each activity conducted [, THE TOTAL AMOUNT OF AUTHORIZED EXPENSES], 25 the total value of prizes awarded for each activity , and the total amount of the 26 charitable share from each activity [NET PROCEEDS] paid to each authorizing 27 permittee. The annual report must also include a completed Internal Revenue Service 28 Form W-2 for each person employed by the operator during the preceding year. 29 * Sec. 8. AS 05.15.083 is amended by adding a new subsection to read: 30  (c) An operator shall deliver to each authorizing permittee a copy of the 31 reports required under this section and shall certify on the report to the department that

01 delivery has been made to the permittee. 02 * Sec. 9. AS 05.15.087(a) is repealed and reenacted to read: 03  (a) An operator shall pay at least the minimum charitable shares described in 04 AS 05.15.128 due to an authorizing permittee by the 15th day of the month following 05 the calendar quarter in which the operator conducted an activity on behalf of the 06 permittee. 07 * Sec. 10. AS 05.15.105(a) is amended to read: 08  (a) If a person has been convicted of a violation of a law of this state that is, 09 or a law or ordinance of another jurisdiction that would be if it had been committed 10 in this state, a felony, or a violation of a law or ordinance of this state or another 11 jurisdiction that is a crime involving theft or dishonesty or a violation of gambling 12 laws , 13  (1) the department may not issue a license to the person; 14  (2) the department may not issue a license to, or register as a vendor, 15 an applicant who employs the person as a gaming manager or in a managerial or 16 supervisory capacity or uses the person as a fund raiser or consultant; 17  (3) the department may not issue a permit for an activity if the person 18 is responsible for the operation of the activity; 19  (4) the person may not be employed as a gaming manager or in a 20 managerial or supervisory capacity by a licensee or vendor or used as a fund raiser or 21 consultant by a licensee or vendor; 22  (5) the person may not participate in charitable gaming as a permittee, 23 gaming manager, licensee, or vendor ; 24  (6) the person may not be certified as a gaming manager . 25 * Sec. 11. AS 05.15 is amended by adding a new section to read: 26  Sec. 05.15.114. Gaming manager. (a) A permittee may not employ, contract 27 with, or in any way engage a person to act as a gaming manager unless the person is 28 certified by the department as a gaming manager. A person may not act as a gaming 29 manager unless the person is certified by the department as a gaming manager. 30  (b) The department may certify a person as a gaming manager if the person 31  (1) applies under oath on a form provided by the department;

01  (2) pays the annual fee of $50; and 02  (3) has passed a test formulated by the department on the contents of 03 this chapter and the regulations adopted under this chapter. 04  (c) A gaming manager is accountable to the permittee or the holders of a 05 multiple-beneficiary permit for the legal conduct of gaming activities, the accurate 06 accounting of the total amount of gross receipts and the total value of prizes awarded, 07 and the accurate reporting and timely remittance of the charitable share due. 08 * Sec. 12. AS 05.15.115(b) is amended to read: 09  (b) The contract between an authorizing permittee and an operator must 10 include [THE AMOUNT AND FORM OF COMPENSATION TO BE PAID TO THE 11 OPERATOR,] the term of the contract, the activities to be conducted by the operator 12 on behalf of the permittee, the location where the activities are to be conducted, the 13 name and address of the member in charge, and other provisions the department may 14 require. The contract may not contain a provision that requires the authorizing 15 permittee to pay to the operator, whether from gaming receipts or proceeds or 16 from other separate funds of the permittee, an amount that would result in the 17 permittee realizing less from the gaming activity than the minimum charitable 18 share required to be paid to a permittee under this chapter. 19 * Sec. 13. AS 05.15.115(d) is amended to read: 20  (d) A permittee shall submit by certified mail to the department for review 21 [APPROVAL] a copy of each contract with an operator with whom the permittee 22 contracts to conduct activities subject to this chapter. The contract must meet the 23 requirements of this section. If the contract does not meet the requirements of this 24 section or contains provisions that violate this chapter or the regulations adopted 25 under it, the [THE] department shall declare [APPROVE OR DISAPPROVE] the 26 contract void. Any changes to a contract must be submitted to the department for 27 review under this section . If the contract is declared void, the [DISAPPROVED,] 28 reasons [FOR THE DISAPPROVAL] shall be provided in writing to the permittee. 29 Activities may not be conducted under a [THE] contract declared void [BEFORE 30 THE CONTRACT IS APPROVED. SUBSEQUENT AMENDMENTS TO AN 31 APPROVED CONTRACT DO NOT TAKE EFFECT UNTIL THE AMENDMENTS

01 ARE APPROVED BY THE DEPARTMENT]. 02 * Sec. 14. AS 05.15.128(a) is repealed and reenacted to read: 03  (a) The department shall revoke the license of an operator who does not on an 04 annual basis pay at least the following minimum charitable shares to each authorizing 05 permittee: 06  (1) one and one-half percent of the gross receipts from bingo; 07  (2) seven percent of the gross receipts from a pull-tab game; and 08  (3) 10 percent of the gross receipts from an activity other than bingo 09 or pull-tab games. 10 * Sec. 15. AS 05.15.145(a) is amended to read: 11  (a) Two to six municipalities or qualified organizations, or a combination of 12 two to six municipalities and qualified organizations, may jointly apply for a multiple- 13 beneficiary permit under AS 05.15.100(d). The commissioner may not issue or renew a 14 permit except upon satisfactory proof that (1) each joint applicant is a municipality or 15 qualified organization, (2) the activity may be permitted under this chapter, (3) the multiple-beneficiary 16 permittee has a gaming manager certified by the department under 17 AS 05.15.114, and (4) the issuance of a permit is not detrimental to the best interests of the 18 public. Upon request of the commissioner, the joint applicants shall prove conclusively each 19 of these requirements before a permit may be issued or renewed. 20 * Sec. 16. AS 05.15.145(d) is amended to read: 21  (d) The holders of a multiple-beneficiary permit shall jointly file reports with 22 the department that comply with the reporting requirements imposed on operators 23 under AS 05.15.083. A multiple-beneficiary permittee shall file with each holder 24 of the multiple-beneficiary permit quarterly and annual reports that comply and 25 are consistent with the reporting and payment requirements imposed on operators 26 under AS 05.15.083 and 05.15.087. 27 * Sec. 17. AS 05.15.145 is amended by adding new subsections to read: 28  (e) The department shall revoke a multiple-beneficiary permit if on an annual 29 basis at least the following minimum charitable shares are not distributed to the holders 30 of the multiple-beneficiary permit: 31  (1) one and one-half percent of the gross receipts from bingo;

01  (2) seven percent of the gross receipts from pull-tab games; and 02  (3) 10 percent of the gross receipts from an activity other than bingo 03 or pull-tab games. 04  (f) A multiple-beneficiary permittee 05  (1) shall pay the charitable share due to the holders of the multiple- 06 beneficiary permit by check; 07  (2) shall post a copy of the multiple-beneficiary permit in a public 08 place on the premises where the activities are conducted; 09  (3) shall have its financial records reviewed annually by a certified 10 public accountant; the multiple-beneficiary permittee shall submit the results of the 11 review to the department by February 28 of the year following the year for which the 12 review is conducted; and 13  (4) may not 14  (A) charge losses resulting from bad checks or uncollectible 15 debts against the charitable shares due to the holders of the multiple-beneficiary 16 permit; 17  (B) extend credit to players; 18  (C) employ house players; 19  (D) allow the permittee's employees to play a game conducted 20 by the permittee. 21 * Sec. 18. AS 05.15.150 is amended to read: 22  Sec. 05.15.150. Limitation on use of charitable share [PROCEEDS]. (a) 23 The charitable share that is paid to or retained by a permittee for an 24 [AUTHORITY TO CONDUCT THE] activity authorized by this chapter may only be 25 expended by the permittee for [IS CONTINGENT UPON THE DEDICATION OF 26 THE NET PROCEEDS OF THE CHARITABLE GAMING ACTIVITY TO THE 27 AWARDING OF PRIZES TO CONTESTANTS OR PARTICIPANTS AND TO] 28 political, educational, civic, public, charitable, patriotic, or religious uses in the state. 29 "Political, educational, civic, public, charitable, patriotic, or religious uses" means uses 30 benefiting persons either by bringing them under the influence of education or religion 31 or relieving them from disease, suffering, or constraint, or by assisting them in

01 establishing themselves in life, or by providing for the promotion of the welfare and 02 well-being of the membership of the organization within their own community, or 03 through aiding candidates for public office or groups that support candidates for public 04 office, or by erecting or maintaining public buildings or works, or lessening the burden 05 on government . "Political, educational, civic, public, charitable, patriotic, or 06 religious uses" [, BUT] does not include 07  (1) the direct or indirect payment of any portion of the charitable 08 share paid to or retained by a permittee [NET PROCEEDS] of a bingo or pull-tab 09 game to a lobbyist registered under AS 24.45; 10  (2) the erection, acquisition, improvement, maintenance, or repair of 11 real, personal, or mixed property unless it is used exclusively for one or more of the 12 permitted uses; or 13  (3) the direct or indirect payment of any portion of the charitable 14 share paid to or retained by a permittee [NET PROCEEDS] of a charitable gaming 15 activity, except the charitable share [PROCEEDS] of a raffle and lottery, 16  (A) to aid candidates for public office or groups that support or 17 oppose candidates for public office; 18  (B) to a political party or to an organization affiliated with a 19 political party; or 20  (C) to a group, as that term is defined in AS 15.13.400, or a 21 political group, as that term is defined in AS 15.60, that seeks to influence the 22 outcome of an election. 23  (b) The charitable share [NET PROCEEDS] derived from the activity must 24 be devoted within one year to one or more of the uses stated in (a) of this section. A 25 municipality or qualified organization desiring to hold the charitable share [NET 26 PROCEEDS] for a period longer than one year must apply to the department for 27 special permission , and , upon good cause shown , the department may grant the request. 28 * Sec. 19. AS 05.15.150 is amended by adding a new subsection to read: 29  (c) Notwithstanding (a) and (b) of this section, a dog mushers' association may 30 elect to apply the charitable share realized from activities conducted under this chapter 31 to prizes for contestants in a dog mushers' contest conducted in the following year.

01 * Sec. 20. AS 05.15 is amended by adding a new section to read: 02  Sec. 05.15.155. Required charitable share from activities conducted by 03 permittees. The department shall revoke the permit of a municipality or qualified 04 organization that fails on an annual basis to retain at least the following minimum 05 charitable shares: 06  (1) one and one-half percent of the gross receipts from bingo; 07  (2) seven percent of the 08  (A) gross receipts from pull-tab games not conducted by a 09 vendor; and 10  (B) ideal gross from pull-tab games conducted by a vendor; and 11  (3) 10 percent of the gross receipts from an activity other than bingo 12 or pull-tab games. 13 * Sec. 21. AS 05.15.165(a) is amended to read: 14  (a) An operator shall pay the charitable share [NET PROCEEDS] to the 15 authorizing permittee by check. 16 * Sec. 22. AS 05.15.165(f) is amended to read: 17  (f) An operator may not 18  (1) charge losses resulting from bad checks or uncollectible debts 19 against the gross receipts from the activity or against the charitable share [NET 20 PROCEEDS] due to the authorizing permittee; 21  (2) extend credit to players; 22  (3) employ house players; 23  (4) allow the operator's employees to play a game conducted by the 24 operator at the location where the employee works for the operator. 25 * Sec. 23. AS 05.15 is amended by adding a new section to read: 26  Sec. 05.15.166. Pooling of gross receipts, prizes, and door prizes. (a) An 27 operator that conducts bingo, pull-tab, or other games under this chapter on behalf of 28 two or more permittees may monthly allocate the gross receipts and the total value of 29 the prizes offered or awarded, including the value of door prizes, among all of the 30 permittees whose permits are in use during the month in which the games are 31 conducted.

01  (b) A multiple-beneficiary permittee that conducts bingo, pull-tab, or other 02 games under this chapter may monthly allocate the gross receipts and the total value 03 of the prizes offered or awarded, including the value of door prizes, among all of the 04 holders of the multiple-beneficiary permit during the month in which the games are 05 conducted. 06  (c) An allocation made under 07  (1) (a) of this section shall be based on the number of days of the 08 month that each permit is in play for each type of gaming activity; 09  (2) (b) of this section must be based on a preexisting written agreement 10 between the holders of the multiple-beneficiary permit; 11  (3) (a) or (b) of this section must allocate a permittee's gross receipts 12 at the same rate the total value of the prizes offered or awarded, including the value 13 of door prizes, is allocated; and 14  (4) (a) or (b) of this section may not result in a permittee exceeding the 15 prize limitations of AS 05.15.180. 16 * Sec. 24. AS 05.15.167(a) is amended to read: 17  (a) The bond or security filed under AS 05.15.122(b) must be made payable 18 to the department and must be conditioned upon payment of the amounts due to the 19 department and payment of the charitable share [NET PROCEEDS] due to the 20 authorizing permittee. If the operator fails to make the required payments, the operator 21 forfeits the bond or security to the department. 22 * Sec. 25. AS 05.15.167(b) is amended to read: 23  (b) The amount forfeited under (a) of this section shall be first used to satisfy 24 delinquent fees, interest, and penalties due the department under this chapter. If the 25 bond or security is not exhausted by payment of delinquent fees, interest, and 26 penalties, the department may use the remaining amount to pay the charitable share 27 [NET PROCEEDS] due an authorizing permittee. The total amount available for 28 payment of the charitable share [NET PROCEEDS] shall be prorated among the 29 permittees to whom charitable shares [PROCEEDS] are due from that operator. 30 * Sec. 26. AS 05.15.170 is amended to read: 31  Sec. 05.15.170. Suspension or revocation of permit, certificate, license, or

01 vendor registration. (a) The department may suspend, for a period of up to one 02 year, or revoke a permit, certificate, license, or vendor registration, after giving notice 03 to and an opportunity to be heard by the permittee , gaming manager, or licensee, if 04 the permittee, gaming manager, licensee, or vendor 05  (1) violates or fails to comply with a requirement of this chapter or of 06 a regulation adopted under this chapter; 07  (2) breaches a contractual agreement with a permittee, licensee, or 08 registered vendor; 09  (3) becomes disqualified to participate in charitable gaming as provided 10 in AS 05.15.105; for the purposes of this paragraph, a permittee, licensee, or vendor 11 that is not a natural person is considered convicted if an owner or manager of the 12 permittee, licensee, or vendor is convicted; 13  (4) knowingly submits false information to the department or, in the 14 case of a registered vendor, to a permittee when the vendor knows that the false 15 information will be submitted to the department as part of an application for 16 registration; or 17  (5) gives or acts upon any inside information on the status of the prizes 18 awarded or to be awarded in a pull-tab game. 19  (b) If the department revokes a 20  (1) license or vendor registration under this section, it may prohibit the 21 licensee or vendor from reapplying for a license or vendor registration for a period of 22 not more than five years ; 23  (2) [. IF THE DEPARTMENT REVOKES A] permit under this section, 24 it may prohibit the permittee from reapplying for a permit for a period of not more 25 than one year ; 26  (3) gaming manager certificate, it must revoke the certificate for 27 a minimum of one year and not more than five years; 28  (4) multiple-beneficiary permit, it may not issue a multiple- 29 beneficiary permit to a holder of the revoked permit for the one-year period immediately 30 following the revocation and may refuse to issue a multiple- 31 beneficiary permit for up to five years following the revocation .

01 * Sec. 27. AS 05.15.180(g) is repealed and reenacted to read: 02  (g) Under this chapter, 03  (1) a permittee may 04  (A) have gross receipts in a calendar year of not more than 05  (i) $1,300,000 from pull-tab games, except that a 06 permittee who contracts with an operator may have gross receipts of not 07 more than $650,000 from pull-tab games; 08  (ii) $750,000 from all charitable gaming activities 09 conducted under this chapter other than bingo and pull-tabs; 10  (B) award in a calendar year a maximum of $840,000 in prizes 11 for bingo, except that a permittee who contracts with an operator may award 12 in a calendar year a maximum of $660,000 in prizes for bingo; 13  (2) the holders of a multiple-beneficiary permit may 14  (A) have gross receipts in a calendar year from 15  (i) pull-tab games of not more than $1,300,000 16 multiplied by the number of holders of the multiple-beneficiary permit; 17  (ii) charitable gaming activities other than bingo and 18 pull-tab games of not more than $750,000 multiplied by the number of 19 holders of the multiple-beneficiary permit; 20  (B) award prizes in a calendar year for bingo games of a 21 maximum of $840,000 multiplied by the number of holders of the multiple- 22 beneficiary permit. 23 * Sec. 28. AS 05.15.188(h) is amended to read: 24  (h) If a permittee contracts with a vendor under (a) of this section, the contract 25 must provide that the permittee shall receive no less than 16 [70] percent of the ideal 26 gross [NET]. 27 * Sec. 29. AS 05.15.188(i) is repealed and reenacted to read: 28  (i) The amount required to be paid to the permittee under (h) of this section 29 shall be paid by the vendor to the member-in-charge upon delivery of a pull-tab series 30 to the vendor for sale. The amount required to be paid by the vendor shall be paid by 31 check, and the check may not be drawn in a manner that the payee is not identified.

01 * Sec. 30. AS 05.15.680(b) is amended to read: 02  (b) A person who, with the intent to mislead a public servant in the 03 performance of the public servant's duty, submits a false statement in an application 04 for a permit, certificate, license, or vendor registration under this chapter is guilty of 05 unsworn falsification. 06 * Sec. 31. AS 05.15.690(21) is amended to read: 07  (21) "gross receipts" means the total receipts , excluding local sales 08 and federal excise taxes collected on the sale of the shares, tickets, or rights, 09 without deducting any prize or expense, from the sale of shares, tickets, or rights 10 connected with participation in any activity permitted under this chapter or the right 11 to participate, including admission, fee or charge, sale of equipment or supplies, and 12 all other miscellaneous receipts; 13 * Sec. 32. AS 05.15.690(23) is amended to read: 14  (23) "ideal gross [NET]" means an amount equal to the total amount 15 of receipts that would be received if every individual pull-tab ticket in a series were 16 sold at face value [, LESS THE PRIZES TO BE AWARDED FOR THAT SERIES]; 17 * Sec. 33. AS 05.15.690 is amended by adding new paragraphs to read: 18  (46) "charitable share" means the percentage of gross receipts or ideal 19 gross paid to or retained by a permittee; 20  (47) "gaming manager" means the principal individual who manages, 21 controls, or oversees the pull-tab or bingo gaming activities of a permittee and who 22 directly or indirectly receives compensation in any form for that management, control, 23 or oversight. 24 * Sec. 34. AS 05.15.087(b), 05.15.087(c), 05.15.160, 05.15.165(b), and 05.15.690(29) are 25 repealed. 26 * Sec. 35. Notwithstanding sec. 36 of this Act, the Department of Revenue may proceed 27 to adopt regulations necessary to implement the changes made by this Act. The regulations 28 take effect under AS 44.62 (Administrative Procedure Act) but not before January 1, 1999. 29 * Sec. 36. Except for sec. 35 of this Act, this Act takes effect January 1, 1999. 30 * Sec. 37. Section 35 of this Act takes effect immediately under AS 01.10.070(c).