CSHB 509(FIN): "An Act relating to establishing the Alaska Gaming Commission."
00 CS FOR HOUSE BILL NO. 509(FIN) 01 "An Act relating to establishing the Alaska Gaming Commission." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 04.11.370(c) is amended to read: 04 (c) If the board receives notice from the Alaska Gaming Commission 05 [DEPARTMENT OF REVENUE] that a licensee or permittee has violated a provision 06 of AS 05.15 related to gambling, the board 07 (1) may suspend the license or permit; and 08 (2) shall suspend the license or permit for a period of at least 30 days if 09 the offense is the person's second or subsequent violation of AS 05.15 related to 10 gambling. 11 * Sec. 2. AS 05.15.010 is amended to read: 12 Sec. 05.15.010. Alaska Gaming Commission [DEPARTMENT OF 13 REVENUE] to administer chapter. The Alaska Gaming Commission in the 14 Department of Revenue shall administer this chapter. 15 * Sec. 3. AS 05.15.690 is amended by adding a new paragraph to read:
01 (46) "commission" means the Alaska Gaming Commission. 02 * Sec. 4. AS 05 is amended by adding a new chapter to read: 03 Chapter 18. Alaska Gaming Commission. 04 Article 1. Administration. 05 Sec. 05.18.010. Creation of commission. (a) The Alaska Gaming 06 Commission is established for the purposes of generating revenue for the state and 07 regulating gaming activities in the state. The commission is established in the 08 Department of Revenue. The commission consists of five voting members and two ex 09 officio nonvoting members appointed by the governor, subject to confirmation by the 10 legislature. One voting member shall be appointed from each of the four judicial 11 districts of the state. One voting member shall be an at-large member. Not more than 12 three of the seven members may be members of the same political affiliation or party. 13 One voting member of the commission must have at least five years' experience in law 14 enforcement and one voting member must be a certified public accountant. One ex 15 officio member of the commission must hold a permit or license under AS 05.15 and 16 one ex officio member must hold a license or permit under AS 04.11. The voting 17 members of the commission shall elect one voting member to serve as chair of the 18 commission. 19 (b) The voting members serve staggered terms of three years. The ex officio 20 members serve nonstaggered three-year terms. A member may be reappointed but 21 may not serve for more than six years. 22 (c) A member of the commission does not receive a salary for service on the 23 commission but is entitled to per diem and travel expenses authorized for members of 24 boards and commissions under AS 39.20.180. 25 (d) A member of the commission may not have a pecuniary interest in a 26 contract or agreement entered into by the commission. 27 (e) A person may not serve as a voting member of the commission if that person 28 (1) has been convicted of 29 (A) a felony; or 30 (B) an offense under this chapter, AS 11.66.200 - 11.66.280, or a 31 comparable provision of municipal, state, or federal law;
01 (2) is an elected official of the state or of a political subdivision of the 02 state; 03 (3) holds a license, permit, or registration under AS 05.15; or 04 (4) holds a license or permit under AS 04.11. 05 (f) a person may not serve as an ex officio member of the commission if that 06 person has been convicted of a crime listed in (e)(1) of this section or is an elected 07 official of the state or of a political subdivision of the state. 08 (g) A person may not serve as a member of the commission until the 09 investigation required under AS 18.65.080(b) is completed. 10 (h) Three voting members of the commission constitute a quorum for the 11 transaction of business. 12 (i) The governor may remove a member for cause, including incompetence, 13 neglect of duty, or misconduct in office. A member being removed for cause shall be 14 given a copy of the charges and afforded an opportunity to publicly present a defense in 15 person or by counsel upon not less than 10 days' notice. If a member is removed for 16 cause, the governor shall file with the lieutenant governor a complete statement of all 17 charges made against the member and the governor's findings based on the charges, 18 together with a complete record of the proceedings. 19 (j) The governor may immediately suspend a member for a violation of law or 20 for misconduct in office pending removal from office under (a) of this section. 21 Sec. 05.18.020. Meetings. (a) The commission shall meet at least quarterly at 22 the call of the chair, at the request of a majority of the voting members, or at a 23 regularly scheduled time set by the commission. 24 (b) An action of the commission is not binding unless taken at a meeting 25 where three or more of the voting members are present and vote in favor of the action. 26 (c) The voting members of the commission may exclude the ex officio 27 members from executive sessions otherwise permitted by law. 28 Sec. 05.18.030. Duties and powers of commission. The commission shall 29 (1) enter into contracts and agreements necessary to carry out the 30 provisions of this chapter; 31 (2) adopt regulations necessary to carry out the provisions of this
01 chapter; 02 (3) administer, regulate, and enforce the charitable gaming laws under 03 AS 05.15; 04 (4) recommend policy direction for the operation and administration of 05 gaming activities in Alaska; 06 (5) report to the governor and the legislature each quarter on the 07 gaming activities authorized and on the total revenue, prize disbursement, and other 08 expenses for the preceding quarter; 09 (6) report to the governor and the legislature each year on authorized 10 gaming activities, including a full and complete statement of revenue, prize 11 disbursement, and other expenses, and recommendations for changes in this chapter; 12 (7) report to the governor and the legislature as frequently as the 13 commission determines necessary on conclusions from the analysis of the reaction of 14 state residents to gaming activities, and on matters that require changes in the law to 15 prevent violations or evasions of this chapter or to correct undesirable conditions in 16 connection with the operation or administration of gaming activities; 17 (8) monitor the operation of gaming throughout the state; and 18 (9) study and investigate the operation and administration of gaming 19 laws of other states and of federal laws that affect gaming activities. 20 Sec. 05.18.040. Regulations. The commission shall adopt regulations under 21 AS 44.62 (Administrative Procedure Act) to establish 22 (1) the types of gaming activities to be conducted if those activities are 23 permitted under AS 05.18.100; 24 (2) the places and locations where gaming activities under this chapter 25 may be conducted; and 26 (3) all matters necessary or desirable to carry out this chapter to 27 operate gaming activities efficiently and economically, and to make the participation 28 in gaming activities and the distribution of prizes convenient. 29 Sec. 05.18.050. Executive director and employees. (a) The commission 30 shall employ an executive director who is qualified by training and experience to 31 conduct the day-to-day work of the commission. The director may not engage in
01 another profession or occupation. 02 (b) Subject to the approval of the commission, the director may appoint 03 deputies required to carry out the functions and duties of the commission. The 04 director may appoint professional, technical, and clerical employees necessary to 05 perform the duties of the commission. 06 (c) The director is in the exempt service under AS 39.25.110. 07 (d) The commission may not employ a person who has been convicted, 08 including conviction based on a guilty plea or plea of nolo contendere, of an offense 09 that disqualifies a person from being a member of the commission. 10 Sec. 05.18.060. Duties of director. The director shall 11 (1) supervise the operation and administration of gaming activities; 12 (2) act as secretary to the commission; 13 (3) meet at least quarterly with the commission on the operation and 14 administration of gaming activities; 15 (4) make available for inspection by the commission, upon request, all 16 books, records, files, and other information and documents of the commission; 17 (5) advise the commission and make recommendations to improve the 18 operation and administration of gaming in the state; 19 (6) suspend or revoke a contract issued under this chapter for a 20 violation of this chapter or the regulations adopted under this chapter; 21 (7) provide each month to the commission a full and complete 22 statement of the revenue, prize disbursements, and other expenses for the preceding 23 month; and 24 (8) administer and enforce the charitable gaming laws in AS 05.15. 25 Sec. 05.18.070. Subpoenas. (a) The director or the commission may 26 subpoena witnesses and documents in a matter over which the commission has 27 jurisdiction, control, or supervision. The director or the commission may administer 28 oaths and affirmations to persons whose testimony is required. 29 (b) If a person fails to obey a subpoena, or if a person refuses to answer a 30 relevant question or to exhibit a document when ordered to do so by the director or the 31 commission, the director or the commission may apply to the superior court for an
01 order directing the person to comply with the subpoena or the order. The court may 02 order the person to comply. 03 Article 2. Gaming Activities. 04 Sec. 05.18.100. Gaming activities. (a) The commission may not authorize a 05 gaming activity unless that activity is authorized by the legislature in this section. 06 (b) The commission may participate with other states in multi-state gaming 07 activities if that participation and those activities are permitted by the legislature. 08 Article 3. Miscellaneous Provisions. 09 Sec. 05.18.300. State gaming fund and appropriations. There is created in 10 the general fund the state gaming fund. The state gaming fund consists of all revenue 11 received from gaming activities and all other money credited or transferred to the fund 12 from another fund or source. 13 Sec. 05.18.310. Audit. The commission shall have an audit of the books and 14 accounts of the commission performed at least once in each year by certified public 15 accountants. The Legislative Budget and Audit Committee shall annually perform 16 post-audits of the commission and report to the legislature. The commission may have 17 special audits performed at any time on its own motion or at the request of the 18 director. The commission shall file a copy of each audit with the commissioner of 19 revenue and the legislature. 20 Sec. 05.18.320. Prohibited acts. (a) A person may not 21 (1) knowingly act as an agent or sell a gaming product unless the 22 person has a contract with the commission to be an agent, or is an employee of an 23 agent and sells gaming products or awards gaming prizes under the supervision of the 24 agent; 25 (2) knowingly sell or offer to sell a gaming product to a person under 26 21 years of age; 27 (3) knowingly present a counterfeit or altered gaming product for 28 payment or transfer a counterfeit or altered gaming product to another person to 29 present for payment; 30 (4) with intent to defraud, falsely make, alter, forge, utter, pass or 31 counterfeit a gaming product; or
01 (5) impersonate a representative of the commission. 02 (b) A contractor, an agent, the governor, or an officer or employee of the 03 commission may not purchase a gaming product, receive a gaming prize, or participate 04 in a gaming activity under this chapter. 05 (c) An agent or contractor may not knowingly withhold funds owed to the 06 commission. 07 (d) In this section, "knowingly" has the meaning given in AS 11.81.900. 08 Sec. 05.18.330. Assignment of contracts. A person that enters into a contract 09 under this chapter may not assign the contract without the approval of the commission. 10 Sec. 05.18.340. Penalty. A person that violates AS 05.18.320 or 05.18.330 is 11 guilty of a class C felony. 12 Sec. 05.18.350. Statement of odds. Each gaming product must indicate the 13 odds of winning a prize in the particular gaming activity represented by the product. 14 Article 4. General Provisions. 15 Sec. 05.18.900. Definitions. In this chapter, unless the context requires 16 otherwise, 17 (1) "commission" means the Alaska Gaming Commission; 18 (2) "director" means the executive director of the commission; 19 (3) "gaming product" means a ticket, receipt, card, or other item, 20 except a prize, received by a person from an agent or an employee of an agent as 21 evidence of participation in a gaming activity under this chapter; 22 (4) "operation and administration" includes accounting, sales, 23 promotion, and security; 24 (5) "person" has the meaning given in AS 01.10.060 and also includes 25 an estate, receiver, trustee, assignee, referee, or other person acting in a fiduciary or 26 representative capacity, whether appointed by a court or otherwise, and a department, 27 commission, agency, or instrumentality of the state, including a municipality and an 28 agency or instrumentality of a municipality. 29 * Sec. 5. AS 11.66.280(2) is amended to read: 30 (2) "gambling" means that a person stakes or risks something of value 31 upon the outcome of a contest of chance or a future contingent event not under the
01 person's control or influence, upon an agreement or understanding that that person or 02 someone else will receive something of value in the event of a certain outcome; 03 "gambling" does not include 04 (A) bona fide business transactions valid under the law of 05 contracts for the purchase or sale at a future date of securities or commodities 06 and agreements to compensate for loss caused by the happening of chance, 07 including contracts of indemnity or guaranty and life, health, or accident 08 insurance; 09 (B) playing an amusement device that 10 (i) confers only an immediate right of replay not 11 exchangeable for something of value other than the privilege of 12 immediate replay; and 13 (ii) does not contain a method or device by which the 14 privilege of immediate replay may be cancelled or revoked; or 15 (C) an activity authorized by the Alaska Gaming Commission 16 [DEPARTMENT OF REVENUE] under AS 05.15 or AS 05.18; 17 * Sec. 6. AS 18.65.080 is amended by adding a new subsection to read: 18 (b) The Department of Public Safety shall investigate and ascertain whether a 19 person appointed by the governor to serve as a member of the Alaska Gaming 20 Commission has been convicted of a crime set out in AS 05.18.010(e). 21 * Sec. 7. AS 39.25.110 is amended by adding a new paragraph to read: 22 (40) the executive director of the Alaska Gaming Commission. 23 * Sec. 8. AS 39.50.200(b) is amended by adding a new paragraph to read: 24 (58) Alaska Gaming Commission (AS 05.18). 25 * Sec. 9. AS 05.15.690(9) is repealed. 26 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 REVISOR INSTRUCTION. The revisor of statutes is instructed to change references 29 to the "commissioner" and "department" in AS 05.15 to "commission" unless it is clear from 30 the context that "commissioner" refers to a commissioner other than the commissioner of 31 revenue and "department" refers to a department other than the Department of Revenue.