CSHB 552(FIN) am: "An Act relating to the creation of the Alaska Gaming Commission to regulate gambling; authorizing the Alaska Gaming Commission to license gambling games and gambling casino owners and suppliers and to issue occupational licenses for gambling employees; limiting casino gambling to municipalities with a population of 150,000 or more; allowing the Alaska Gaming Commission to issue only one owner's license for a gambling casino in certain municipalities with a population of 150,000 or more; creating crimes relating to gambling and setting requirements for gambling; creating the state gaming fund in the general fund; setting a gross receipts tax on gambling games; limiting the authority of a municipality to tax the adjusted gross receipts of gambling games."
00 CS FOR HOUSE BILL NO. 552(FIN) am 01 "An Act relating to the creation of the Alaska Gaming Commission to regulate 02 gambling; authorizing the Alaska Gaming Commission to license gambling games and 03 gambling casino owners and suppliers and to issue occupational licenses for gambling 04 employees; limiting casino gambling to municipalities with a population of 150,000 or 05 more; allowing the Alaska Gaming Commission to issue only one owner's license for a 06 gambling casino in certain municipalities with a population of 150,000 or more; creating 07 crimes relating to gambling and setting requirements for gambling; creating the state 08 gaming fund in the general fund; setting a gross receipts tax on gambling games; 09 limiting the authority of a municipality to tax the adjusted gross receipts of gambling 10 games." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section
01 to read: 02 LEGISLATIVE INTENT. This chapter is intended to benefit the people of Alaska by 03 promoting tourism and assisting economic development. The public's confidence and trust 04 will be maintained only through 05 (1) comprehensive law enforcement supervision; and 06 (2) the strict regulation of facilities, persons, associations, and gambling 07 operations under AS 05.18. 08 * Sec. 2. AS 05 is amended by adding a new chapter to read: 09 Chapter 18. Gambling and the Alaska Gaming Commission. 10 Sec. 05.18.010. Gaming Commission established; membership. (a) The 11 Alaska Gaming Commission is established in the Department of Revenue. 12 (b) The commission consists of three members appointed by the governor. 13 Each member of the commission must be a resident of the state. At least one member 14 shall be experienced in law enforcement and criminal investigation. At least one 15 member shall be a certified public accountant experienced in accounting and auditing. 16 Not more than two members may be affiliated with the same political affiliation or 17 party. The governor shall designate one member to serve as chair. 18 (c) Except as provided in (b) of this section the term of office of a commission 19 member is three years. Each member of the commission is eligible for reappointment 20 at the discretion of the governor. 21 (d) Each member of the commission is entitled to receive 22 (1) salary as determined by the commission for each day the member 23 (A) attends a meeting of the commission; or 24 (B) conducts a hearing under this chapter; 25 (2) per diem and travel expenses authorized for members of boards and 26 commissions under AS 39.20.180. 27 (e) A person may not be appointed to the commission or continue to be a 28 member of the commission if the person or the person's spouse, child, or parent is a 29 member of the board of directors of or financially interested in a gambling operation 30 subject to the jurisdiction of the commission under this chapter or a permittee, 31 licensee, or registrant under AS 05.15.
01 (f) A member of the commission may not be a public officer of the state 02 except by the member's service on the commission. In this subsection, "public officer" 03 has the meaning given in AS 39.52.960. 04 (g) A person may not serve on the commission if the person 05 (1) has knowingly provided false statements or information of a 06 material nature to the commission; 07 (2) has been determined by the governor or the commission to be a 08 person whose prior activities, criminal record, if any, or reputation, habits, and 09 associations pose a threat to the public interest or to the effective regulation or control 10 of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices, 11 methods, and activities in the regulation of gaming; or 12 (3) has been convicted of or is under indictment for a felony under the 13 laws of any state in the United States, or of the United States. 14 (h) A member of the commission may be removed by the governor for 15 (1) neglect of duty, including lack of attendance at meetings of the 16 commission; the failure of a member to attend at least 50 percent of the meetings in 17 any 12-month period is prima facie evidence of neglect of duty under this paragraph; 18 (2) misfeasance, which is the improper performance of an act within 19 the power of the member or the commission; 20 (3) malfeasance, which is the performance of an act not within the 21 power of the member or the commission; 22 (4) nonfeasance, which is the failure to perform an act within the 23 power of the member or the commission that should be performed; 24 (5) becoming unqualified to be a member of the commission under (e) 25 - (g) of this section. 26 (i) Each member of the commission shall, before beginning the discharge of 27 the duties of the member's office, provide a bond to the state that is in the amount of 28 $25,000, is approved by the governor, and is recorded in the office of the lieutenant 29 governor. If the governor determines that the bond of a commission member has 30 become or is likely to become invalid or insufficient, the governor shall immediately 31 require the member to renew the member's bond. To be valid, a bond renewed under
01 this section must be approved by the governor. The governor shall remove a member 02 of the commission who does not provide the required bond within 30 days after the 03 member is appointed to the commission or fails to renew the bond required by this 04 subsection within 30 days after the governor requires the renewal. The commission 05 may pay the cost of a bond obtained by a member of the commission under this 06 chapter. 07 Sec. 05.18.020. Staff support; personnel. (a) The commission may hire 08 staff to carry out the duties of the commission. A person may not be employed to 09 serve the commission if 10 (1) the person or the person's spouse, parent, or child is 11 (A) an official of a licensee engaged in gambling operations or 12 charitable gaming in the state; or 13 (B) a person with a financial interest in or a financial 14 relationship with a licensee engaged in gambling operations or charitable 15 gaming in the state; or 16 (2) the person is a spouse, parent, or child of a commission member. 17 (b) The commission may employ or contract with inspectors and agents 18 required to carry out the duties required in this chapter. A licensed owner shall, in the 19 manner prescribed by the rules of the commission, reimburse the commission for the 20 salaries and other expenses of the inspectors and agents or other commission 21 employees and contractors required to be present during the time gambling operations 22 are conducted in a gambling facility. 23 Sec. 05.18.030. Executive director; compensation; duties. (a) The 24 governor shall appoint an executive director of the commission to serve at the pleasure 25 of the governor. The executive director is entitled to compensation at an amount to be 26 approved annually by the governor. 27 (b) The executive director shall perform the duties assigned to the executive 28 director by the commission. 29 (c) The executive director shall devote the executive director's full time to the 30 duties of the office and may not hold another office or employment. The executive 31 director shall
01 (1) keep records of all proceedings of the commission; 02 (2) preserve all papers, books, documents, and other records belonging 03 to or held by the commission; 04 (3) supervise and manage the staff of the commission in accordance 05 with the policies established by the commission; 06 (4) ensure the financial integrity of all aspects of the operations of the 07 commission; and 08 (5) perform other duties the commission may from time to time 09 delegate to the executive director. 10 Sec. 05.18.040. Meetings; records. (a) The commission shall meet at least 11 quarterly. 12 (b) The chair or any member of the commission may call a special meeting. A 13 special meeting may be held not earlier than 72 hours after written notice has been 14 sent to each member. 15 (c) Two members of the commission constitute a quorum of the commission. 16 Two affirmative votes are required for the commission to take official action. 17 (d) The commission shall keep a complete and accurate record of the 18 commission's meetings. The commission's records shall be available for public 19 inspection and must accurately reflect all commission proceedings. 20 Sec. 05.18.050. Annual report. (a) The commission shall file a written 21 annual report with the governor and the legislature before March 1 of each year. The 22 commission shall file any additional reports that the governor requests. 23 (b) The annual report must include a statement describing 24 (1) the receipts and disbursements of the commission; 25 (2) licensing, enforcement, and other actions taken by the commission; 26 (3) any additional information and recommendations that the 27 commission considers useful or the governor requests. 28 Sec. 05.18.060. Hearings. (a) If approved by a majority of the commission, a 29 commission member or an administrative law judge appointed by the commission may 30 (1) conduct a hearing authorized under this chapter; 31 (2) recommend findings of fact and conclusions of law to the
01 commission. 02 (b) A member of the commission or administrative law judge conducting a 03 hearing has all the powers, rights, and duties granted to the commission. When 04 conducting a public hearing, the commission may not limit the number of speakers 05 who may testify. However, the commission may set reasonable time limits on the 06 length of an individual's testimony or the total amount of time allotted to proponents 07 and opponents of an issue before the commission. 08 (c) A person may seek judicial review of a final administrative order of the 09 commission in the manner provided in AS 44.62.560 and 44.62.570. 10 Sec. 05.18.070. Administration, regulation, and enforcement. (a) The 11 commission has the following powers and duties for the purpose of administering, 12 regulating, and enforcing the gambling operations authorized under this chapter: 13 (1) all powers and duties specified in this chapter; 14 (2) all powers necessary to execute this chapter; 15 (3) jurisdiction and supervision over the following: 16 (A) all authorized gambling operations in the state; 17 (B) all persons in gambling facilities where gambling 18 operations are conducted; 19 (4) the power and duty to investigate and reinvestigate applicants and 20 license holders and determine the eligibility of applicants for licenses and to require 21 applicants and license holders to reimburse the commission for the costs of the 22 investigation and reinvestigation; 23 (5) the power and duty to select from among competing applicants the 24 applicants that promote the most economic development and that best serve the 25 interests of the citizens of the state; 26 (6) the power and duty to take appropriate administrative enforcement 27 or disciplinary action against a licensee under this chapter; 28 (7) the power and duty to investigate alleged violations of this chapter; 29 (8) the power and duty to establish fees for the review and 30 investigation of applications for the licenses that are authorized under this chapter; 31 (9) the power and duty to adopt appropriate standards for the design,
01 appearance, aesthetics, and construction of gaming facilities; 02 (10) the power to conduct hearings; 03 (11) the power to issue subpoenas to compel the attendance of 04 witnesses and subpoenas duces tecum for the production of books, records, and other 05 relevant documents; 06 (12) the power to administer oaths and affirmations to witnesses; 07 (13) the power and duty to prescribe a form to be used by a licensed 08 owner as an application for employment by potential employees of the gambling 09 facility and licensees of the commission; 10 (14) the power to revoke, suspend, or renew licenses issued under this 11 chapter; 12 (15) the power to hire employees to gather information, conduct 13 investigations, and carry out other tasks under this chapter; 14 (16) the power to take any appropriate action to enforce this chapter, 15 including the issuance of notices of violations of this chapter or regulations of the 16 commission, orders to cease and desist, and closure orders; 17 (17) the power to adopt regulations for the implementation and 18 enforcement of this chapter; 19 (18) the power to, through the office of the attorney general, apply to 20 the courts for injunctive and declaratory relief in aid of any action or decision of the 21 commission on any matter within the jurisdiction of the commission. 22 (b) The Department of Public Safety and the attorney general shall assist the 23 commission in conducting background investigations of applicants. The commission 24 shall reimburse the Department of Public Safety for the costs incurred by the 25 department as a result of assistance provided to the commission. The commission 26 shall make the payment from fees collected from applicants for licenses. 27 (c) The commission shall require any person holding an owner's license to 28 adopt policies concerning the preferential hiring of residents of the state. 29 Sec. 05.18.080. Violations; fees and taxes; inspections. (a) The commission 30 shall 31 (1) provide for the establishment and collection of license fees and
01 taxes imposed under this chapter and deposit the license fees and taxes in the state 02 gaming fund under AS 05.18.570; 03 (2) levy and collect penalties for noncriminal violations of this chapter 04 and deposit the penalties in the state gaming fund under AS 05.18.570; 05 (3) be present through the commission's inspectors and agents during 06 the time gambling operations are conducted in a gambling facility to do the following: 07 (A) certify the revenue received by gambling facilities as a 08 result of gambling operations; 09 (B) receive complaints from the public; 10 (C) conduct other investigations into the conduct of the 11 gambling games, the maintenance of the gambling equipment, and the 12 operation of the gambling facility as the commission considers necessary and 13 proper. 14 (b) The commission may enter an office, a gambling facility, or other premises 15 of a person holding an owner's or supplier's license where evidence of compliance or 16 noncompliance with this chapter is likely to be found. 17 Sec. 05.18.090. Licensing. (a) The commission shall adopt standards for the 18 licensing of 19 (1) persons regulated under this chapter; 20 (2) electronic or mechanical gambling games. 21 (b) The commission shall require that the records, including financial 22 statements, of a person holding an owner's or supplier's license must be maintained in 23 the manner prescribed by the commission. 24 (c) The commission may not issue a license to a person who has been 25 convicted of a felony in this or another jurisdiction. 26 (d) An applicant for a license under this chapter shall provide the following 27 information to the commission: 28 (1) the name, business address, and business telephone number of the 29 applicant; 30 (2) an identification of the applicant; 31 (3) the following information for an applicant that is not an individual:
01 (A) the state of incorporation and any states where the 02 corporation is registered to do business; 03 (B) the names and addresses of all corporate officers; 04 (C) the identity of 05 (i) any entity in which the applicant has an equity 06 interest of at least one percent; the identification must include the state 07 of incorporation or registration, if applicable; however, an applicant 08 that has a pending registration statement filed with the United States 09 Securities and Exchange Commission is not required to provide 10 information under this item; 11 (ii) the shareholders or participants of the applicant; an 12 applicant that has a pending registration statement filed with the United 13 States Securities and Exchange Commission is required to provide only 14 the names of persons holding an interest of more than one percent of all 15 shares; 16 (4) an identification of any business, including the state of 17 incorporation and all states where the business is registered to do business, if 18 applicable, in which an applicant or the spouse or children of an applicant has an 19 equity interest of more than one percent of all shares; 20 (5) if the applicant has been indicted, been convicted, pled guilty or 21 nolo contendere, or forfeited bail concerning a criminal offense other than a traffic 22 violation under the laws of any jurisdiction, the applicant must include the following 23 information under this paragraph: 24 (A) the name and location of the court, the arresting agency, 25 and the prosecuting agency; 26 (B) the case number; 27 (C) the date and type of offense; 28 (D) the disposition of the charge; 29 (E) the location and length of incarceration, if any; 30 (6) if the applicant has had a license or certificate issued by a licensing 31 authority in this state or any other jurisdiction denied, restricted, suspended, revoked,
01 or not renewed, the applicant must provide the following information under this 02 paragraph: 03 (A) a statement describing the facts and circumstances 04 concerning the denial, restriction, suspension, revocation, or nonrenewal; 05 (B) the date each action described in (A) of this paragraph was 06 taken; 07 (C) the reason each action described in (A) of this paragraph 08 was taken; 09 (7) a statement of whether the applicant has filed or had filed against 10 the applicant a proceeding in bankruptcy or been involved in a formal process to 11 adjust, defer, suspend, or work out the payment of a debt, including the date of filing, 12 the name and location of the court, and the case and number of the disposition; 13 (8) a statement of whether the applicant has filed or been served with a 14 complaint or notice filed with a public body concerning a delinquency in the payment 15 of or a dispute over a filing concerning the payment of a tax required under federal, 16 state, or local law, including the amount, type of tax, taxing agency, and times 17 involved; 18 (9) a statement listing the names and titles of public officials or 19 officers of units of government and relatives of the public officials or officers who 20 directly or indirectly have a financial interest in, have a beneficial interest in, are the 21 creditors of, hold a debt instrument issued by, or have an interest in a contractual or 22 service relationship with the applicant; 23 (10) the name and business telephone number of the attorney who will 24 represent the applicant in matters before the commission; 25 (11) a description of a proposed or an approved gambling facility, 26 including the following information: 27 (A) the expected economic benefit to local communities; 28 (B) the anticipated or actual number of employees; 29 (C) any statements from the applicant concerning compliance 30 with federal and state affirmative action guidelines; 31 (D) the anticipated or actual number of patrons;
01 (E) the anticipated or actual gross receipts; 02 (12) a description of the product or service to be supplied by the 03 applicant if the applicant has applied for a supplier's license; 04 (13) the following information from each licensee involved in the 05 ownership or management of gambling operations: 06 (A) an annual balance sheet; 07 (B) an annual income statement; 08 (C) a list of the stockholders or other persons having at least 09 one percent beneficial interest in the gambling activities of the person who has 10 been issued the owner's license; 11 (D) any other information the commission considers necessary 12 for the effective administration of this chapter. 13 (e) The commission shall review and approve or disapprove promptly and in 14 reasonable order all license applications. 15 (f) A party aggrieved by an action of the commission denying, suspending, 16 revoking, restricting, or refusing the renewal of a license may request a hearing before 17 the commission. A request for a hearing must be made to the commission in writing 18 not more than 10 days after service of notice of the action of the commission. 19 (g) Except as provided in AS 05.18.140, the commission shall serve notice of 20 the commission's actions under this section on a party by personal delivery or by 21 certified mail. Notice served by certified mail is considered complete on the business 22 day following the date of the mailing. 23 (h) The commission shall conduct all requested hearings under this section 24 promptly and in reasonable order. 25 (i) The commission shall require an applicant for a license to submit 26 fingerprints and the fees required by the Department of Public Safety for criminal 27 justice information and a national criminal history record check. The commission 28 shall forward the fingerprints and fees to the Department of Public Safety for a report 29 of criminal justice information under AS 12.62 and a national criminal history record 30 check and shall use the results to evaluate applicants. 31 Sec. 05.18.100. Ejection or exclusion from facilities. (a) The commission
01 may eject or exclude or authorize the ejection or exclusion of a person from a 02 gambling facility if 03 (1) the person violates this chapter or a regulation adopted by the 04 commission; or 05 (2) the commission determines that the person's conduct or reputation 06 is such that the person's presence within the gambling facility may 07 (A) call into question the honesty and integrity of the gambling 08 operations; or 09 (B) interfere with the orderly conduct of the gambling 10 operations. 11 (b) A person may petition the commission for a hearing on the person's 12 ejection or exclusion from a gambling facility under this section. 13 Sec. 05.18.110. Violations of chapter; fraudulent acts. If a licensee or an 14 employee of a licensee violates this chapter or engages in a fraudulent act, the 15 commission may 16 (1) suspend, revoke, or restrict the license of a licensee; 17 (2) require the removal of a licensee or an employee of a licensee from 18 the gambling facility; 19 (3) impose a civil penalty of not more than $5,000 against an 20 individual who has been issued an occupational license or a person who has been 21 issued a supplier's license for each violation of this chapter; 22 (4) impose for each violation of this chapter by a licensed owner a 23 penalty of not more than the greater of $10,000 or an amount equal to the licensee's 24 daily gross receipts for each day of the violation. 25 Sec. 05.18.120. Investigative procedure; complaints. (a) The commission 26 shall review and make a determination on a complaint by a person who has been 27 issued an owner's license concerning an investigative procedure that the licensee 28 alleges is unnecessarily disruptive of gambling operations. 29 (b) A licensee filing a complaint under this section must prove by clear and 30 convincing evidence that the investigative procedure 31 (1) does not have a reasonable law enforcement purpose; and
01 (2) is so disruptive as to unreasonably inhibit gambling operations. 02 (c) For purposes of this section, the need to inspect and investigate a licensee 03 shall be presumed at all times. 04 Sec. 05.18.130. Transfer of licenses; rules of procedure; prohibitions. (a) 05 A licensed owner or another person shall apply for and receive the commission's 06 approval before an owner's license is transferred, sold, or, purchased or a voting trust 07 agreement or other similar agreement is established with respect to the owner's 08 license. A licensed owner or another person may not lease, hypothecate, or borrow or 09 loan money against an owner's license. 10 (b) The commission shall adopt regulations governing the procedure a 11 licensed owner or another person shall follow to take an action under (a) of this 12 section. The regulations must specify that a person who obtains an ownership interest 13 in a license shall meet the criteria of this chapter and regulations adopted by the 14 commission. A licensed owner may transfer an owner's license only in accordance 15 with this chapter and regulations adopted by the commission. 16 Sec. 05.18.140. Suspension of license without notice or hearing; revocation 17 of license. (a) The commission may suspend a license issued to the owner of a 18 gambling facility without notice or hearing if the commission determines that the 19 safety or health of patrons or employees would be threatened by the continued 20 operation of the gambling facility. The opportunity for a hearing shall be provided 21 within a reasonable time following a suspension. 22 (b) The suspension of a license under this section may remain in effect until 23 the commission determines that the cause for suspension has been abated. The 24 commission may revoke the license if the commission determines that the owner has 25 not made satisfactory progress toward abating the hazard. 26 Sec. 05.18.150. Commission records. (a) Notwithstanding any other law, 27 upon written request from a person, the commission shall provide the following 28 information to the person: 29 (1) the information provided under this chapter concerning a licensee 30 or an applicant; 31 (2) the amount of the adjusted gross receipts tax under AS 05.18.580
01 paid daily to the state by a licensed owner; 02 (3) a copy of a letter providing the reasons for the denial of an owner's 03 license; 04 (4) a copy of a letter providing the reasons for the commission's refusal 05 to allow an applicant to withdraw the applicant's application. 06 (b) The commission may assess fees for the copying of information provided 07 by the commission to a person requesting information under (a) of this section. 08 Sec. 05.18.160. Owner's licenses. (a) The commission may issue to a person 09 a license to own and conduct gambling games at a specified gambling facility in any 10 municipality of the state with a population of at least 150,000 according to the most 11 recent federal census information if the municipality has adopted an ordinance, ratified 12 by a majority of the municipal voters voting on the question, authorizing gambling in 13 that municipality. A person may not have more than one owner's license in effect at 14 any time. Only one owner's license may be issued in a municipality. 15 (b) A person applying for an owner's license under this chapter shall pay a 16 nonrefundable application fee to the commission. The commission shall determine the 17 amount of the application fee. 18 (c) An applicant shall submit the following on forms provided by the 19 commission: 20 (1) the information required under AS 05.18.090; 21 (2) if the applicant is an individual, two sets of the individual's 22 fingerprints; 23 (3) if the applicant is not an individual, two sets of fingerprints for 24 each officer and director of the applicant. 25 (d) The commission shall review an application for an owner's license under 26 this chapter and inform each applicant of the commission's decision concerning the 27 issuance of an owner's license. 28 (e) The costs of investigation of an applicant for an owner's license under this 29 chapter shall be included in the application fee paid by the applicant. 30 (f) An applicant for an owner's license under this chapter shall pay all 31 additional costs that are associated with the investigation of the applicant that exceed
01 the portion of the application fee paid by the applicant that is assessed for the 02 investigation. 03 (g) The commission may not issue an owner's license under this chapter to a 04 person if the person 05 (1) has been convicted of a felony under the laws of the state, the laws 06 of another state, or laws of the United States; 07 (2) has knowingly or intentionally submitted an application for a 08 license under this chapter that contains false information; 09 (3) is a member of the commission; 10 (4) is an officer, a director, or a managerial employee of a person 11 described in (1) or (2) of this subsection; or 12 (5) employs an individual described in (1), (2), or (3) of this subsection 13 and that individual participates in the management or operation of gambling 14 operations authorized under this chapter. 15 Sec. 05.18.170. Factors considered in granting owner's licenses; 16 submission of design. (a) In determining whether to grant an owner's license to an 17 applicant, the commission shall consider 18 (1) the character, reputation, experience, and financial integrity of 19 (A) the applicant; 20 (B) a person that 21 (i) directly or indirectly controls the applicant; or 22 (ii) is directly or indirectly controlled by the applicant 23 or by a person that directly or indirectly controls the applicant; 24 (2) the facilities or proposed facilities for the conduct of gambling; 25 (3) the highest prospective total revenue to be collected by the state 26 from the conduct of gambling; 27 (4) the good faith affirmative action plan of each applicant to recruit, 28 train, and upgrade minorities in all employment classifications; 29 (5) the financial ability of the applicant to purchase and maintain 30 adequate liability and casualty insurance; 31 (6) whether the applicant has adequate capitalization to provide and
01 maintain the gambling facility for the duration of the license; 02 (7) the extent to which the applicant exceeds or meets other standards 03 adopted by the commission by regulation. 04 (b) In an application for an owner's license, the applicant must submit to the 05 commission a proposed design of the gambling facility. 06 Sec. 05.18.180. Issuance of license; fee; bond. (a) The commission may 07 issue an owner's license to an eligible person if the person pays an initial license fee of 08 $50,000 and posts a bond as required in this section. 09 (b) A licensed owner must post a bond with the commission at least 60 days 10 before the commencement of the construction of a gambling facility or the 11 commencement of gambling under the license, whichever is earlier. The bond shall be 12 furnished in 13 (1) cash or negotiable securities; 14 (2) a surety bond with a surety company approved by the commission 15 and guaranteed by a satisfactory guarantor; or 16 (3) an irrevocable letter of credit issued by a banking institution in this 17 state that is acceptable to the commission. 18 (c) If a bond is furnished in cash or negotiable securities, the principal shall be 19 placed without restriction at the disposal of the commission, but any income earned on 20 the principal shall be paid to the benefit of the licensee. 21 (d) The bond is subject to the approval of the commission and must be payable 22 to the commission for use by the commission in satisfaction of the licensed owner's 23 financial obligations to the local community, the state, and other parties, as determined 24 by regulations of the commission. 25 (e) If, following a hearing held after at least five days written notice, the 26 commission determines that the amount of a licensed owner's bond is insufficient, the 27 licensed owner shall, upon written demand of the commission, file a new bond. 28 (f) The commission may require a licensed owner to file a new bond with a 29 satisfactory surety in the same form and amount if 30 (1) liability on the old bond is discharged or reduced by judgment 31 rendered, payment made, or otherwise; or
01 (2) in the opinion of the commission, a surety on the old bond becomes 02 unsatisfactory. 03 (g) If a new bond obtained under (e) or (f) of this section is unsatisfactory, the 04 commission shall cancel the owner's license. If the new bond is satisfactorily 05 furnished, the commission shall release, in writing, the surety on the old bond from 06 any liability accruing after the effective date of the new bond. 07 (h) A bond is released on the condition earlier of 08 (1) five years from the effective date of the owner's license if the 09 licensed owner remains at the site for which the owner's license is granted for the 10 entire five-year period; or 11 (2) the date on which the commission grants a license to another 12 licensed owner to operate from the site for which the bond was posted. 13 (i) A licensed owner who does not meet the requirements of (h)(1) of this 14 section forfeits a bond filed under this section. The proceeds of a bond that is in 15 default under this subsection are paid to the commission for the benefit of the local 16 unit of government from which the gambling facility is operated. 17 (j) The total and aggregate liability of the surety on a bond is limited to the 18 amount specified in the bond, and the continuous nature of the bond may not be 19 construed as allowing the liability of the surety under a bond to accumulate for each 20 successive approval period during which the bond is in force. 21 (k) A bond filed under this section is released 60 days after the time has run 22 under (h) of this section and a written request for release is submitted by the licensed 23 owner. 24 Sec. 05.18.190. Term of a license. An owner's initial license expires five 25 years after the effective date of the license and may be renewed for additional five- 26 year periods under AS 05.18.210. 27 Sec. 05.18.200. Revocation of owner's license for delay. The commission 28 may revoke an owner's license if 29 (1) the licensee begins regular operations more than 12 months after 30 receiving the commission's approval of the application for the license; and 31 (2) the commission determines that the revocation of the license is in
01 the best interests of the state. 02 Sec. 05.18.210. Renewal of owner's license; compliance investigations. (a) 03 Unless the commission determines that a licensed owner does not qualify to hold a 04 license under the terms of this chapter, the owner's license shall be renewed for an 05 additional five-year period upon the payment of a $50,000 renewal fee. 06 (b) A licensed owner shall undergo a complete investigation by the 07 commission every five years to determine whether the licensed owner remains in 08 compliance with this chapter. 09 (c) Notwithstanding (b) of this section, the commission may investigate a 10 licensed owner at any time the commission determines necessary to ensure that the 11 licensee remains in compliance with this chapter. 12 (d) The licensed owner shall bear the cost of an investigation or 13 reinvestigation of the licensed owner and an investigation resulting from a potential 14 transfer of ownership. 15 Sec. 05.18.220. Other licenses. A licensed owner may apply to the 16 commission for and may hold licenses that are necessary for the operation of a 17 gambling facility, including a license to prepare and serve food for human 18 consumption, and any other necessary license. 19 Sec. 05.18.230. Gambling equipment, devices, and supplies. A licensed 20 owner may own gambling equipment, devices, and supplies. A licensed owner shall 21 file an annual report listing the licensed owner's inventories of gambling equipment, 22 devices, and supplies. 23 Sec. 05.18.240. Schools for training occupational licensees. This chapter 24 does not prohibit a licensed owner from operating a school for the training of 25 occupational licensees. 26 Sec. 05.18.250. Nature of license. An owner's license is a revocable privilege 27 granted by the state and is not a property right. 28 Sec. 05.18.260. Supplier's license; requirements. The commission may issue 29 a supplier's license under this chapter to a person if the commission determines that 30 the person is eligible for a supplier's license and the person has 31 (1) applied for the supplier's license and provided the information
01 required under AS 05.18.090; 02 (2) paid a nonrefundable application fee set by the commission; 03 (3) paid a annual license fee set by the commission; and 04 (4) submitted the following on forms provided by the commission: 05 (A) if the applicant is an individual, two sets of the individual's 06 fingerprints; and 07 (B) if the applicant is not an individual, two sets of fingerprints 08 for each officer and director of the applicant. 09 Sec. 05.18.270. Gambling equipment and supplies; distribution. (a) A 10 person holding a supplier's license may sell, lease, and contract to sell or lease security 11 and surveillance services and supplies, money counting services and supplies, or 12 gambling equipment and supplies to a licensee involved in the ownership or 13 management of a gambling facility. 14 (b) Gambling equipment and supplies may not be distributed unless the 15 gambling supplies and equipment conform to standards adopted by the commission. 16 Sec. 05.18.280. Restrictions on issuance of supplier's license. A person may 17 not receive a supplier's license if 18 (1) the person has been convicted of a felony under the laws of this 19 state, the laws of another state, or the laws of the United States; 20 (2) the person has knowingly or intentionally submitted an application 21 for a license under this chapter that contains false information; 22 (3) the person is a member of the commission; 23 (4) the person is an officer, a director, or a managerial employee of a 24 person described in (1) or (2) of this section; 25 (5) the commission determines that the person does not have the 26 character reputation, experience, and financial integrity necessary for a licensee; 27 (6) the person employs an individual described in (1), (2), or (3) of this 28 section and that individual participates in the management or operation of gambling 29 operations authorized under this chapter. 30 Sec. 05.18.290. Necessity of supplier's license; exception. (a) Except as 31 provided in (b) of this section, a person may not furnish security and surveillance
01 services and supplies, money counting services and supplies, or gambling equipment, 02 devices, or supplies to a gambling operation unless the person possesses a supplier's 03 license. 04 (b) A person holding a valid license to deal in alcoholic beverages may supply 05 alcoholic beverages to a gambling operation without possessing a supplier's license. 06 Sec. 05.18.300. Sale or lease of equipment, devices, and supplies; 07 information furnished to commission. (a) A supplier shall furnish to the 08 commission a list of all services, equipment, devices, and supplies offered for sale or 09 lease in connection with gambling games authorized under this chapter. 10 (b) A supplier shall keep books and records for the furnishing of services, 11 equipment, devices, and supplies to gambling operations separate from books and 12 records of any other business operated by the supplier. 13 (c) A supplier shall file a quarterly return with the commission listing all sales 14 and leases. 15 (d) A supplier shall permanently affix the supplier's name to all of the 16 supplier's equipment, devices, and supplies for gambling operations. 17 Sec. 05.18.310. Forfeiture of equipment, devices, or supplies. A supplier's 18 equipment, devices, or supplies that are used by a person in an unauthorized gambling 19 operation shall be forfeited to the state. 20 Sec. 05.18.320. Repair of equipment, devices, and supplies. Gambling 21 equipment, devices, and supplies that are provided by a supplier may be repaired in 22 the gambling facility or removed for repair from the gambling facility to a facility 23 owned by a licensed supplier. 24 Sec. 05.18.330. Renewal of supplier's license; compliance investigations. 25 (a) Unless a supplier's license is suspended, expires, or is revoked, the supplier's 26 license may be renewed upon the payment of a renewal fee in an amount established 27 by the commission and a determination by the commission that the licensee is in 28 compliance with this chapter. 29 (b) A licensed supplier shall undergo a complete investigation by the 30 commission every five years to determine whether the licensee is in compliance with 31 this chapter.
01 (c) Notwithstanding (b) of this section, the commission may investigate a 02 licensed supplier at any time the commission determines necessary to ensure that the 03 licensee is in compliance with this chapter. 04 (d) A licensed supplier shall bear the cost of an investigation or reinvestigation 05 of the licensee and an investigation resulting from a potential transfer of ownership. 06 Sec. 05.18.340. Occupations requiring license. The commission shall 07 determine the occupations related to gambling that require a license under this chapter. 08 The commission shall require that an individual applying for an occupational license 09 (1) to manage gambling operations under this chapter is subject to 10 background inquiries and requirements similar to those required for an applicant for an 11 owner's license under this chapter; and 12 (2) may manage gambling operations for only one licensed owner. 13 Sec. 05.18.350. Occupational license; requirements; fees; duration; 14 renewal; compliance investigations. (a) The commission may issue an occupational 15 license to an individual if 16 (1) the individual has applied for the occupational license and provided 17 the information required under AS 05.18.090; 18 (2) a nonrefundable application fee set by the commission has been 19 paid on behalf of the applicant in accordance with (b) of this section; 20 (3) the commission has determined that the applicant is eligible for an 21 occupational license; and 22 (4) an annual license fee set by the commission has been paid on 23 behalf of the applicant in accordance with (b) of this section. 24 (b) A licensed owner, an applicant for an owner's license, or a licensed 25 supplier shall pay the application fee of an individual applying for an occupational 26 license to work at the licensed owner's gambling operation or for the licensed supplier. 27 The licensed owner, applicant for an owner's license, or licensed supplier shall pay the 28 annual occupational license fee on behalf of an employee or potential employee. The 29 licensed owner, applicant for an owner's license, or licensed supplier may seek 30 reimbursement of the application fee or annual license fee from an employee who is 31 issued an occupational license by the commission.
01 (c) A license issued under this section is valid for one year after the date of 02 issuance. 03 (d) Unless an occupational license is suspended, expires, or is revoked by the 04 commission, the occupational license may be renewed annually upon the payment of 05 an annual license fee by the licensed owner or licensed supplier on behalf of the 06 licensee, or by the licensee in an amount established by the commission and a 07 determination by the commission that the licensee is in compliance with this chapter. 08 (e) The commission may investigate the holder of an occupational license at 09 any time the commission determines necessary to ensure that the licensee is in 10 compliance with this chapter. 11 (f) A licensed owner, an applicant for an owner's license, or a licensed 12 supplier shall pay the cost of an investigation or reinvestigation by the commission of 13 a holder of an occupational license who is employed by the licensed owner or licensed 14 supplier. The licensed owner, applicant for an owner's license, or licensed supplier 15 may seek reimbursement of the cost of an investigation or reinvestigation from an 16 employee who holds an occupational license. 17 Sec. 05.18.360. Qualifications for occupational license. The commission 18 may not issue an occupational license to an individual unless the individual 19 (1) is at least 18 years of age; 20 (2) has not been convicted of a felony under the laws of this state, the 21 laws of another state, or the laws of the United States; 22 (3) has demonstrated a level of skill or knowledge that the commission 23 determines is necessary to operate gambling games; and 24 (4) has met standards of character and fitness adopted by the 25 commission for the holding of an occupational license. 26 Sec. 05.18.370. Application for occupational license. (a) An application for 27 an occupational license shall be made on forms prescribed by the commission and 28 contain all information required by the commission. 29 (b) An applicant for an occupational license shall provide the following 30 information in the application: 31 (1) a statement of whether the applicant has held any other licenses
01 related to gambling; 02 (2) if the applicant has been licensed in another state under any other 03 name, the name under which the applicant was licensed in the other state; 04 (3) the applicant's age; 05 (4) if a permit or license issued to the applicant in another state has 06 been suspended, restricted, or revoked, the date, duration, and nature of the 07 suspension, restriction, or revocation. 08 (c) An applicant for an occupational license shall submit with the application 09 two sets of the applicant's fingerprints. The applicant must submit the fingerprints on 10 forms provided by the commission. The commission shall charge each applicant the 11 fee set by the Department of Public Safety for state and national fingerprint record 12 searches. 13 Sec. 05.18.380. Restrictions on issuance of occupational license. Unless a 14 person is granted a waiver under AS 05.18.420, the commission may refuse to issue an 15 occupational license to an individual who 16 (1) is unqualified to perform the duties required of the applicant; 17 (2) does not disclose or states falsely any information required by the 18 application; 19 (3) has been found guilty of a violation of this chapter; 20 (4) has had a gambling-related license or an application for a 21 gambling-related license suspended, restricted, revoked, or denied for just cause in 22 another state; or 23 (5) has not met standards of character and fitness adopted by the 24 commission for the holding of an occupational license. 25 Sec. 05.18.390. Suspension, revocation, or restriction of licenses. The 26 commission may suspend, revoke, or restrict an occupational licensee for 27 (1) a violation of this chapter; 28 (2) a cause that, if known to the commission, would have disqualified 29 the applicant from receiving the occupational license; 30 (3) a default in the payment of an obligation or a debt due to the state; 31 or
01 (4) any other just cause. 02 Sec. 05.18.400. Schools for training occupational licensees. (a) This 03 chapter does not prohibit a licensed owner from entering into an agreement with a 04 school approved by the commission for the training of an occupational licensee. 05 (b) Training offered by a school described in (a) of this section must be in 06 accordance with a written agreement between the licensed owner and the school and 07 approved by the commission. 08 Sec. 05.18.410. Training locations. Training provided for occupational 09 licensees may be conducted in a gambling facility or at a school with which a licensed 10 owner has entered into an agreement under this chapter. 11 Sec. 05.18.420. Convicted felons; rehabilitation; waiver. (a) An individual 12 applying for an occupational license who is disqualified under AS 05.18.360 due to a 13 conviction for a felony may apply to the commission for a waiver of that 14 disqualification, and the commission may issue a license to the person if the 15 commission determines that the individual has demonstrated by clear and convincing 16 evidence the individual's rehabilitation. 17 (b) In determining whether the individual applying for the occupational 18 license has demonstrated rehabilitation under (a) of this section, the commission shall 19 consider 20 (1) the nature and duties of the position for which the individual has 21 applied; 22 (2) the nature and seriousness of the offense or conduct; 23 (3) the circumstances under which the offense or conduct occurred; 24 (4) the date of the offense or conduct; 25 (5) the age of the individual when the offense or conduct was 26 committed; 27 (6) whether the offense or conduct was an isolated or a repeated 28 incident; 29 (7) a social condition that may have contributed to the offense or 30 conduct; 31 (8) evidence of rehabilitation, including good conduct in prison or in
01 the community, counseling or psychiatric treatment received, acquisition of additional 02 academic or vocational education, successful participation in a correctional work 03 release program, or the recommendation of a person who supervises or has supervised 04 the individual; 05 (9) the complete criminal record of the individual; 06 (10) the prospective employer's written statement that 07 (A) the employer has been advised of all of the facts and 08 circumstances of the individual's criminal record; and 09 (B) after having considered the facts and circumstances, the 10 prospective employer will hire the individual if the commission grants a waiver 11 of the requirements of this chapter. 12 (c) The commission may not waive the requirements of this chapter for an 13 individual who has been convicted of committing any of the following: 14 (1) a felony in violation of federal law, as classified in 18 U.S.C. 3559; 15 (2) a felony of fraud, deceit, or misrepresentation under the laws of this 16 state or another jurisdiction; 17 (3) a felony of conspiracy to commit a felony of fraud, deceit, or 18 misrepresentation under the laws of this state or another jurisdiction; or 19 (4) a felony related to gambling under the laws of this state or a crime 20 in another jurisdiction in which the elements of the crime for which the conviction was 21 entered are substantially similar to the elements of a felony related to gambling under 22 the laws of this state. 23 Sec. 05.18.430. Gambling permitted in gambling facilities. Gambling 24 operations shall only be conducted by a licensed owner in a gambling facility. 25 Sec. 05.18.440. Minimum and maximum wagers. Minimum and maximum 26 wagers on gambling games shall be determined by the commission. 27 Sec. 05.18.450. Inspection of gambling facilities. The following persons may 28 inspect a gambling facility at any time to determine if this chapter is being violated: 29 (1) employees of the commission; 30 (2) officers of the Department of Public Safety. 31 Sec. 05.18.460. Presence of commission employees in gambling facilities.
01 Employees of the commission have the right to be present in a gambling facility or any 02 adjacent facilities under the control of a licensed owner. 03 Sec. 05.18.470. Gambling equipment and supplies; purchase or lease. 04 Gambling equipment and supplies customarily used in conducting gambling 05 operations may be purchased or leased only from suppliers licensed under this chapter. 06 Sec. 05.18.480. Permitted forms of wagering. A licensed owner may not 07 permit any form of wagering on gambling games except as permitted under this 08 chapter. 09 Sec. 05.18.490. Presence required for wagering. Wagers may be received 10 only from a person present in a licensed gambling facility. A person present in a 11 gambling facility may not place or attempt to place a wager on behalf of another 12 person who is not present in the gambling facility. 13 Sec. 05.18.500. Wagering prohibited with negotiable currency. Wagering 14 may not be conducted with money or other negotiable currency. 15 Sec. 05.18.510. Persons under 21 years of age; presence in gambling area. 16 (a) Except as provided in (b) of this section, a person who is under 21 years of age 17 may not be present in the area where gambling is being conducted in a gambling 18 facility. 19 (b) A person who is at least 18 years of age and who is an employee of the 20 gambling facility may be present in an area where gambling is conducted. However, 21 an employee who is under 21 years of age may not perform a function involving 22 gambling by the patrons or the sale and distribution of alcoholic beverages. 23 Sec. 05.18.520. Persons under 21 years of age; wagering prohibited. A 24 person who is under 21 years of age may not make a wager under this chapter. 25 Sec. 05.18.530. Tokens, chips, or electronic cards; purchase. (a) All tokens, 26 chips, or electronic cards that are used to make wagers must be purchased from the 27 owner of the gambling facility while in the gambling facility or at a facility that is 28 adjacent to the gambling facility and has been approved by the commission. 29 (b) The tokens, chips, or electronic cards may be purchased by means of an 30 agreement under which the licensed owner extends credit to the patron. 31 Sec. 05.18.540. Crimes. (a) A person commits a class A misdemeanor if the
01 person knowingly 02 (1) makes a false statement on an application submitted under this 03 chapter; 04 (2) operates a gambling operation in which wagering is conducted or is 05 to be conducted in a manner other than the manner required under this chapter; 06 (3) permits a person under 21 years of age to make a wager; 07 (4) aids, induces, or causes a person under 21 years of age who is not 08 an employee of the gambling facility to enter or attempt to enter the gambling facility; 09 (5) wagers or accepts a wager at a location other than a gambling 10 facility owned by a licensed owner; 11 (6) makes a false statement on an application submitted to the 12 commission under this chapter; or 13 (7) enters or attempts to enter a gambling facility and is not an 14 employee of the gambling operation and is under 21 years of age. 15 (b) A person commits a class C felony if the person knowingly 16 (1) offers, promises, or gives anything of value or benefit 17 (A) to a person who is connected with the owner of a gambling 18 facility, including an officer or an employee of a licensed owner or holder of 19 an occupational license; and 20 (B) under an agreement to influence or with the intent to 21 influence 22 (i) the actions of the person to whom the offer, promise, 23 or gift was made in order to affect or attempt to affect the outcome of a 24 gambling game; or 25 (ii) an official action of a member of the commission; 26 (2) solicits, accepts, or receives a promise of anything of value or 27 benefit 28 (A) while the person is connected with a gambling facility, 29 including an officer or employee of a licensed owner or a holder of an 30 occupational license; and 31 (B) under an agreement to influence or with the intent to
01 influence the actions of the person to affect or attempt to affect the outcome of 02 a gambling game or an official action of a commission member; 03 (3) uses, or possesses with the intent to use, a device to assist in 04 (A) projecting the outcome of a game; 05 (B) keeping track of the cards played; 06 (C) analyzing the probability of the occurrence of an event 07 relating to a gambling game; or 08 (D) analyzing the strategy for playing or betting to be used in a 09 game, except as permitted by the commission; 10 (4) cheats at a gambling game; 11 (5) manufactures, sells, or distributes any cards, chips, dice, game, or 12 device that is intended to be used to violate this chapter; 13 (6) alters or misrepresents the outcome of a gambling game on which 14 wagers have been made after the outcome is made sure but before the outcome is 15 revealed to the players; 16 (7) places a bet on the outcome of a gambling game after acquiring 17 knowledge that is not available to all players and that concerns the outcome of the 18 gambling game that is the subject of the bet; 19 (8) aids a person in acquiring the knowledge described in (7) of this 20 subsection for the purpose of placing a bet contingent on the outcome of a gambling 21 game; 22 (9) claims, collects, takes, or attempts to claim, collect, or take money 23 or anything of value in or from a gambling game with the intent to defraud or without 24 having made a wager contingent on winning a gambling game; 25 (10) claims, collects, or takes an amount of money or thing of value of 26 greater value than the amount won in a gambling game; 27 (11) uses or possesses counterfeit chips or tokens in or for use in a 28 gambling game; 29 (12) possesses a key or device designed for opening, entering, or 30 affecting the operation of a gambling game, a drop box, or an electronic or mechanical 31 device connected with the gambling game or removing coins, tokens, chips, or other
01 contents of a gambling game; this paragraph does not apply to a licensee or an 02 employee of a licensee acting in the course of the employee's employment; 03 (13) possesses materials used to manufacture a slug or device intended 04 to be used in a manner that violates this chapter. 05 Sec. 05.18.550. Possession of cheating devices; presumption. The 06 possession of more than one of the devices described in AS 05.18.540(b) as cheating 07 devices creates a rebuttable presumption that the possessor intended to use the devices 08 for cheating. 09 Sec. 05.18.560. Convicted felons; entering gambling facilities prohibited. 10 A person who is convicted of a felony described in AS 05.18.540(b) is barred for life 11 from entering a gambling facility in this state. 12 Sec. 05.18.570. State gaming fund. There is created in the general fund the 13 state gaming fund. The state gaming fund consists of all revenue received from 14 gambling activities under AS 05.18 and all other money credited or transferred to the 15 fund from another fund or source. 16 Sec. 05.18.580. Adjusted gross receipts tax; rate; payment. (a) A tax is 17 imposed on the adjusted gross receipts received from gambling games authorized 18 under this chapter at the rate of 17 percent of the amount of the adjusted gross receipts. 19 (b) The licensed owner shall remit the tax imposed by this section to the 20 department before the close of the business day following the day the wagers are 21 made. 22 (c) The department may require payment under this section to be made by 23 electronic funds transfer. 24 (d) If the department requires taxes to be remitted under this section by 25 electronic funds transfer, the department may allow the licensed owner to file a 26 monthly report to reconcile the amounts remitted to the department. 27 (e) A municipality in which a gambling facility is located may not tax the 28 adjusted gross receipts received from gambling games authorized under this chapter at 29 a rate of more than three percent of the amount of the adjusted gross receipts. This 30 subsection applies to home rule and general law municipalities. 31 Sec. 05.18.900. Definitions. In this chapter,
01 (1) "adjusted gross receipts" means the total of all cash and property, 02 including checks received by a licensee, whether collected or not, received by a 03 licensee from gambling operations, minus the total of all cash paid out as winnings to 04 patrons and uncollectible gaming receivables, not to exceed the lesser of a reasonable 05 protection for uncollectible patron checks received from gambling operations or two 06 percent of the total of all sums, including checks, whether collected or not, less the 07 amount paid out as winnings to patrons; for purposes of this paragraph, a counter or 08 personal check that is invalid or unenforceable under this chapter is considered cash 09 received by the licensee from gambling operations; 10 (2) "cheat" means to alter the selection of criteria that determine the 11 result of a gambling game or the amount or frequency of payment in a gambling game; 12 (3) "commission" means the Alaska Gaming Commission established 13 by AS 05.18.010; 14 (4) "department" means the Department of Revenue; 15 (5) "gambling facility" means a structure in which lawful gambling is 16 conducted by a licensed owner; 17 (6) "gambling game" includes any of the following if approved by the 18 commission: baccarat, twenty-one, poker, craps, slot machines, video games of 19 chance, roulette, Klondike table, punchboard, faro layout, keno layout, numbers ticket, 20 push card, jar ticket, pull tab, big six; 21 (7) gambling operation" means the conduct of authorized gambling 22 games in a licensed gambling facility; 23 (8) "gross receipts" means the total amount of money exchanged for 24 the purchase of chips, tokens, or electronic cards by gambling facility patrons; 25 (9) "intentionally" has the meaning given in AS 11.81.900; 26 (10) "knowingly" has the meaning given in AS 11.81.900; 27 (11) "license" means a license issued by the commission under this 28 chapter; 29 (12) "licensed owner" means a person that owns a gambling facility 30 who is licensed under this chapter; 31 (13) "licensee" means a person holding a license issued under this
01 chapter; 02 (14) "owner's license" means a license issued under this chapter that 03 allows a person to own and operate a gambling facility; 04 (15) "supplier's license" means a license issued under this chapter that 05 allows a person to supply security and surveillance services and supplies, money 06 counting services and supplies, and gambling paraphernalia and equipment to a 07 licensed owner. 08 * Sec. 3. AS 11.66.280(2) is amended to read: 09 (2) "gambling" means that a person stakes or risks something of value 10 upon the outcome of a contest of chance or a future contingent event not under the 11 person's control or influence, upon an agreement or understanding that that person or 12 someone else will receive something of value in the event of a certain outcome; 13 "gambling" does not include 14 (A) bona fide business transactions valid under the law of 15 contracts for the purchase or sale at a future date of securities or commodities 16 and agreements to compensate for loss caused by the happening of chance, 17 including contracts of indemnity or guaranty and life, health, or accident 18 insurance; 19 (B) playing an amusement device that 20 (i) confers only an immediate right of replay not 21 exchangeable for something of value other than the privilege of 22 immediate replay; and 23 (ii) does not contain a method or device by which the 24 privilege of immediate replay may be cancelled or revoked; or 25 (C) an activity authorized by the Department of Revenue under 26 AS 05.15 or by the Alaska Gaming Commission under AS 05.18; 27 * Sec. 4. AS 18.65.080 is amended by adding a new subsection to read: 28 (b) The Department of Public Safety shall investigate and ascertain whether a 29 person appointed by the governor to serve as a member of the Alaska Gaming 30 Commission has been convicted of a crime set out in AS 05.18.010(g). 31 * Sec. 5. AS 39.25.110(11) is amended to read:
01 (11) the officers and employees of the following boards, commissions, 02 and authorities: 03 (A) [REPEALED 04 (B)] Alaska Permanent Fund Corporation; 05 (B) [(C)] Alaska Industrial Development and Export Authority; 06 (C) [(D)] Alaska Commercial Fisheries Entry Commission; 07 (D) [(E)] Alaska Commission on Postsecondary Education; 08 (E) [(F)] Alaska Aerospace Development Corporation; 09 (F) [(G)] Alaska Natural Gas Development Authority; 10 (G) Alaska Gaming Commission; 11 * Sec. 6. AS 39.50.200(b) is amended by adding a new paragraph to read: 12 (58) Alaska Gaming Commission (AS 05.18).