CSHB 272(FIN) am: "An Act relating to card rooms and card operations, and permitting issuance of a license to own a card room and conduct card games in a municipality of the state if the municipality has adopted an ordinance, ratified by a majority of the municipal voters voting on the question, authorizing card rooms and card games in that municipality."
00 CS FOR HOUSE BILL NO. 272(FIN) am 01 "An Act relating to card rooms and card operations, and permitting issuance of a 02 license to own a card room and conduct card games in a municipality of the state if the 03 municipality has adopted an ordinance, ratified by a majority of the municipal voters 04 voting on the question, authorizing card rooms and card games in that municipality." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 LEGISLATIVE INTENT. This chapter is intended to benefit the people of Alaska by 09 promoting tourism and assisting economic development. The public's confidence and trust 10 will be maintained only through the comprehensive law enforcement supervision and strict 11 regulation of card rooms and card operations under AS 05.18. 12 * Sec. 2. AS 05 is amended by adding a new chapter to read: 13 Chapter 18. Card Rooms. 14 Article 1. Card Games and Card Rooms.
01 Sec. 05.18.010. Card rooms. (a) A person may establish and operate a card 02 room in the state if the person complies with the licensing and other requirements of 03 this chapter, as well as the statutory requirements applying to businesses generally. 04 (b) The following non-banking card games may be played in a card room, 05 according to rules prescribed in regulation by the department: 06 (1) poker; 07 (2) pan; 08 (3) rummy; 09 (4) bridge; and 10 (5) cribbage. 11 Sec. 05.18.020. Presence of department employees in card rooms. 12 Employees of the department have the right to be present in a card room or any 13 adjacent facilities under the control of a licensed owner. 14 Sec. 05.18.030. Wagers. (a) The department shall determine minimum and 15 maximum wagers on card games. 16 (b) A licensed owner may not permit any form of wagering on card games 17 except as permitted under this chapter. 18 (c) Wagers may be received only from a person present in a licensed card 19 room. A person present in a card room may not place or attempt to place a wager on 20 behalf of another person who is not present in the card room. 21 (d) Wagering may not be conducted with money or other negotiable currency. 22 (e) All tokens or chips that are used to make wagers must be purchased from 23 the owner of the card room while the purchaser is in the card room or at a facility that 24 is adjacent to the card room and has been approved by the department. 25 Sec. 05.18.040. Persons under 21 years of age. (a) A person who is under 26 21 years of age may not be present in a card room. 27 (b) A person who is under 21 years of age may not make a wager under this 28 chapter. 29 Article 2. Administration. 30 Sec. 05.18.110. Administration, regulation, and enforcement. (a) The 31 department shall administer, regulate, and enforce the provisions of this chapter. The
01 department: 02 (1) shall have all powers and duties specified in this chapter; 03 (2) shall have all powers necessary to execute this chapter; 04 (3) shall exercise jurisdiction and supervision over the following: 05 (A) all authorized card operations in the state; 06 (B) all persons in card rooms where card operations are 07 conducted; 08 (4) shall investigate and reinvestigate applicants and license holders 09 and determine the eligibility of applicants for licenses and to require applicants and 10 license holders to reimburse the department for the costs of the investigation and 11 reinvestigation; 12 (5) shall select from among competing applicants the applicants that 13 promote the most economic development and that best serve the interests of the 14 citizens of the state; 15 (6) shall take appropriate administrative enforcement or disciplinary 16 action against a licensee under this chapter that violates the provisions of this chapter; 17 (7) shall investigate alleged violations of this chapter; 18 (8) shall establish fees for the review and investigation of applications 19 for the licenses that are authorized under this chapter; 20 (9) may conduct hearings; 21 (10) may issue subpoenas to compel the attendance of witnesses and 22 subpoenas duces tecum for the production of books, records, and other relevant 23 documents; 24 (11) may administer oaths and affirmations to witnesses; 25 (12) shall prescribe a form to be used by a licensed owner as an 26 application for employment by potential employees of the card room and licensees of 27 the department; 28 (13) may revoke, suspend, or renew licenses issued under this chapter; 29 (14) may hire employees to gather information, conduct investigations, 30 and carry out other tasks under this chapter; 31 (15) may take any appropriate action to enforce this chapter, including
01 the issuance of notices of violations of this chapter or regulations of the department, 02 orders to cease and desist, and closure orders; 03 (16) may adopt regulations for the implementation and enforcement of 04 this chapter; 05 (17) shall adopt regulations governing the conduct of card games that 06 may be played in card rooms; 07 (18) shall adopt regulations specifying the form and amount of charges 08 a card room may impose on players for playing card games in the card room; 09 (19) may, through the office of the attorney general, apply to the courts 10 for injunctive and declaratory relief in aid of any action or decision of the department 11 on any matter within the jurisdiction of the department. 12 (b) The Department of Public Safety and the attorney general may assist the 13 department in conducting background investigations of applicants. The department 14 shall reimburse the Department of Public Safety for the costs incurred by the 15 department as a result of assistance provided to the department under this section. The 16 department shall make the payment from fees collected from applicants for licenses. 17 Sec. 05.18.120. Violations; fees; inspections. (a) The department shall 18 (1) provide for the establishment and collection of license fees 19 imposed under this chapter and deposit the license fees in the state gaming fund; 20 (2) levy and collect penalties for noncriminal violations of this chapter 21 and deposit the penalties in the state gaming fund. 22 (b) The department may enter an office, a card room, or other premises of a 23 person holding an owner's license where evidence of compliance or noncompliance 24 with this chapter is likely to be found. 25 Sec. 05.18.130. Licensing. (a) The department shall adopt standards for the 26 licensing of persons regulated under this chapter. 27 (b) The department shall require that the records, including financial 28 statements, of a person holding an owner's license must be maintained in the manner 29 prescribed by the department. 30 (c) The department may not issue a license to a person who has been 31 convicted of a felony in this or another jurisdiction.
01 (d) An applicant for a license under this chapter shall provide the following 02 information to the department: 03 (1) the name, business address, and business telephone number of the 04 applicant; 05 (2) an identification of the applicant; 06 (3) the following information for an applicant that is not an individual: 07 (A) the state of incorporation and any states where the 08 corporation is registered to do business; 09 (B) the names and addresses of all corporate officers; 10 (C) the identity of 11 (i) any entity in which the applicant has an equity 12 interest of at least 20 percent; the identification must include the state 13 of incorporation or registration, if applicable; however, an applicant 14 that has a pending registration statement filed with the United States 15 Securities and Exchange Commission is not required to provide 16 information under this item; 17 (ii) the shareholders or participants of the applicant; an 18 applicant that has a pending registration statement filed with the United 19 States Securities and Exchange Commission is required to provide only 20 the names of persons holding an interest of more than 20 percent of all 21 shares; 22 (4) a statement of whether the applicant has applied for or held any 23 other licenses related to card rooms or card operations, and if so, the state or other 24 licensing jurisdiction, the date of application, the license number if a license was 25 issued, or in the case of an unsuccessful application, the reason the license was not 26 issued; 27 (5) an identification of any business, including the state of 28 incorporation and all states where the business is registered to do business, if 29 applicable, in which an applicant or the spouse or children of an applicant has an 30 equity interest of more than 20 percent of all shares; 31 (6) if the applicant has been indicted, been convicted, pled guilty or
01 nolo contendere, or forfeited bail concerning a criminal offense other than a traffic 02 violation under the laws of any jurisdiction, the applicant must include the following 03 information under this paragraph: 04 (A) the name and location of the court, the arresting agency, 05 and the prosecuting agency; 06 (B) the case number; 07 (C) the date and type of offense; 08 (D) the disposition of the charge; 09 (E) the location and length of incarceration, if any; 10 (7) a statement of whether the applicant has filed or had filed against 11 the applicant a proceeding in bankruptcy or been involved in a formal process to 12 adjust, defer, suspend, or work out the payment of a debt, including the date of filing, 13 the name and location of the court, and the case and number of the disposition; 14 (8) a statement of whether the applicant has filed or been served with a 15 complaint or notice filed with a public body concerning a delinquency in the payment 16 of or a dispute over a filing concerning the payment of a tax required under federal, 17 state, or local law, including the amount, type of tax, taxing agency, and times 18 involved; 19 (9) the name and business telephone number of the attorney, if any, 20 who will represent the applicant in matters before the department; 21 (10) a description of a proposed or an approved card room, including 22 the expected economic benefit to local communities; 23 (11) the following information from each licensee involved in the 24 ownership or management of card operations: 25 (A) an annual balance sheet; 26 (B) an annual income statement; 27 (C) a list of the stockholders or other persons having at least 20 28 percent beneficial interest in the card room activities of the person who has 29 been issued the owner's license; 30 (D) any other information the department considers necessary 31 for the effective administration of this chapter.
01 (e) The department shall review and approve or disapprove promptly and in 02 reasonable order all license applications. 03 (f) A party aggrieved by an action of the department denying, suspending, 04 revoking, restricting, or refusing the renewal of a license may request a hearing before 05 the department. A request for a hearing must be made to the department in writing not 06 more than 10 days after service of notice of the action of the department. 07 (g) Except as provided in AS 05.18.180, the department shall serve notice of 08 the department's actions under this section on a party by personal delivery or by 09 certified mail. Notice served by certified mail is considered complete three business 10 days following the date of the mailing. 11 (h) The department shall conduct all requested hearings under this section 12 promptly and in reasonable order. 13 Sec. 05.18.140. Card room advisory board. (a) The governor shall appoint 14 five individuals to serve on a card room advisory board. Appointments to the board 15 shall be for a period of five years. 16 (b) The card room advisory board shall make recommendations to the 17 department relating to license applications and policy issues relating to card rooms. 18 (c) Members of the card room advisory board serve without compensation and 19 are not entitled to per diem and travel expenses authorized by law for boards and 20 commissions under AS 39.20.180. 21 Sec. 05.18.150. Violations of chapter; fraudulent acts. If a licensee or an 22 employee of a licensee violates this chapter or engages in a fraudulent act, the 23 department may 24 (1) suspend, revoke, or restrict the license of a licensee; 25 (2) require the removal of a licensee or an employee of a licensee from 26 the card room; 27 (3) impose a civil penalty of not more than $5,000 against an 28 individual who has been issued an occupational license for each violation of this 29 chapter; 30 (4) impose for each violation of this chapter by a licensed owner a 31 penalty of not more than the greater of $10,000 or an amount equal to the licensee's
01 daily gross receipts for each day of the violation. 02 Sec. 05.18.160. Investigative procedure; complaints. (a) The department 03 shall review and make a determination on a complaint by a person who has been 04 issued an owner's license concerning an investigative procedure that the licensee 05 alleges is unnecessarily disruptive of card operations. 06 (b) A licensee filing a complaint under this section must prove by clear and 07 convincing evidence that the investigative procedure 08 (1) does not have a reasonable law enforcement purpose; and 09 (2) is so disruptive as to unreasonably inhibit card operations. 10 (c) For purposes of this section, the need to inspect and investigate a licensee 11 shall be presumed at all times. 12 Sec. 05.18.170. Transfer of licenses; rules of procedure; prohibitions. (a) 13 A licensed owner or another person shall apply for and must receive the department's 14 approval before an owner's license is transferred, sold, or, purchased or a voting trust 15 agreement or other similar agreement is established with respect to the owner's 16 license. A licensed owner or another person may not lease, hypothecate, or borrow or 17 loan money against an owner's license. 18 (b) The department shall adopt regulations governing the procedure a licensed 19 owner or another person shall follow to take an action under (a) of this section. The 20 regulations must specify that a person who obtains an ownership interest in a license 21 shall meet the criteria of this chapter and regulations adopted by the department. A 22 licensed owner may transfer an owner's license only in accordance with this chapter 23 and regulations adopted by the department. 24 Sec. 05.18.180. Suspension of license without notice or hearing; revocation 25 of license. (a) The department may suspend a license issued to the owner of a card 26 room without notice or hearing if the department determines that the safety or health 27 of patrons or employees would be threatened by the continued operation of the card 28 room. The opportunity for a hearing shall be provided within a reasonable time 29 following a suspension. 30 (b) The suspension of a license under this section may remain in effect until 31 the department determines that the cause for suspension has been abated. The
01 department may revoke the license if the department determines that the owner has not 02 made satisfactory progress toward abating the hazard. 03 Sec. 05.18.190. Department records. All records pertaining to licenses, 04 applications, and activities authorized under this chapter are public records and may be 05 inspected and copied subject to AS 40.25.110 and 40.25.120. 06 Article 3. Licenses. 07 Sec. 05.18.200. Owner's licenses. (a) The department may issue to a person 08 a license to own a card room and conduct card games. If the population of a 09 municipality is less than 30,000, only one owner's license may be issued in the 10 municipality. If the population of a municipality is 30,000 or more, the total number 11 of owner's licenses issued in the municipality may not exceed the total population of 12 the municipality divided by 30,000. The population of a municipality under this 13 subsection shall be determined by the most recent federal census information. 14 (b) A person applying for an owner's license under this chapter shall pay a 15 nonrefundable $25,000 application fee to the department. 16 (c) An applicant shall submit the following on forms provided by the 17 department: 18 (1) the information required under AS 05.18.130; 19 (2) if the applicant is an individual, two sets of the individual's 20 fingerprints; 21 (3) if the applicant is not an individual, two sets of fingerprints for 22 each officer and director of the applicant. 23 (d) The department shall review an application for an owner's license under 24 this chapter and inform each applicant of the department's decision concerning the 25 issuance of an owner's license. 26 (e) The costs of investigation of an applicant for an owner's license under this 27 chapter shall be included in the application fee paid by the applicant. 28 (f) An applicant for an owner's license under this chapter shall pay all 29 additional costs that are associated with the investigation of the applicant that exceed 30 the portion of the application fee paid by the applicant that is assessed for the 31 investigation.
01 (g) The department may not issue an owner's license under this chapter to a 02 person if the person 03 (1) has been convicted of a felony under the laws of the state, the laws 04 of another state, or laws of the United States; 05 (2) has knowingly or intentionally submitted an application for a 06 license under this chapter that contains false information; 07 (3) has previously had their license to operate a gambling facility or 08 activity revoked in the State of Alaska or any other state or territory of the United 09 States or in any other jurisdiction; 10 (4) is an officer, a director, or a managerial employee of a person 11 described in (1), (2) or (3) of this subsection; or 12 (5) employs an individual described in (1), (2), (3) or (4) of this 13 subsection and that individual participates in the management or operation of card 14 operations authorized under this chapter. 15 Sec. 05.18.210. Factors considered in granting owner's licenses; 16 submission of design. In determining whether to grant an owner's license to an 17 applicant, the department 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 card room or proposed card room; 25 (3) the good faith affirmative action plan of each applicant to recruit, 26 train, and upgrade minorities in all employment classifications; 27 (4) the financial ability of the applicant to purchase and maintain 28 adequate liability and casualty insurance; 29 (5) whether the applicant has adequate capitalization to provide and 30 maintain the card room for the duration of the license; 31 (6) the extent to which the applicant exceeds or meets other standards
01 adopted by the department by regulation. 02 Sec. 05.18.220. Issuance of license; fee; bond. (a) The department may 03 issue an owner's license to an eligible person if the person pays an initial license fee 04 and posts a bond as required in this section. The annual license fee is $10,000 for each 05 card table. After a license has been issued, additional tables may be added for an 06 initial license fee of $10,000 each; however, the full annual renewal fee for each table 07 must be paid on or before the anniversary of issuance of the owner's license, 08 regardless of when the table was added. The department may suspend or revoke a 09 license if the annual license fee is not paid in a timely fashion. 10 (b) A licensed owner must post a $500,000 cash bond with the department at 11 least 60 days before the commencement of the construction of a card room or the 12 commencement of a card operation under the license, whichever is earlier. 13 (c) The principal of the bond shall be placed without restriction at the disposal 14 of the department, but interest earned on the principal shall inure to the benefit of the 15 licensee. 16 (d) The bond is subject to the approval of the department and must be payable 17 to the department for use by the department in satisfaction of the licensed owner's 18 financial obligations to the local community, the state, and other parties, as determined 19 by regulations of the department. 20 (e) If, following a hearing held after at least five days written notice, the 21 department determines that the amount of a licensed owner's bond is insufficient, the 22 licensed owner shall, upon written demand of the department, file a new bond. 23 (f) The department may require a licensed owner to file a new bond with a 24 satisfactory surety in the same form and amount if 25 (1) liability on the old bond is discharged or reduced by judgment 26 rendered, payment made, or otherwise; or 27 (2) in the opinion of the department, a surety on the old bond becomes 28 unsatisfactory. 29 (g) If a new bond obtained under (e) or (f) of this section is unsatisfactory, the 30 department shall cancel the owner's license. If the new bond is satisfactorily 31 furnished, the department shall release, in writing, the surety on the old bond from any
01 liability accruing after the effective date of the new bond. 02 (h) The total and aggregate liability of the surety on a bond is limited to the 03 amount specified in the bond, and the continuous nature of the bond may not be 04 construed as allowing the liability of the surety under a bond to accumulate for each 05 successive approval period during which the bond is in force. 06 (i) A bond filed under this section is released 60 days after the owner's license 07 expires and a written request for release is submitted by the licensed owner. 08 Sec. 05.18.230. Tournaments. The holder of an owner's license for a card 09 room shall host a card tournament at least once each calendar quarter, with the gross 10 proceeds of the tournament to be distributed to a nonprofit educational institution or 11 group designated by the owner. An application for issuance or renewal of an owner's 12 license must include proposed dates for the tournaments, and specify the nonprofit 13 educational institution or group designated to benefit from each tournament. The 14 licensed owner shall notify the department of any change in the date or beneficiary of 15 a tournament. A nonprofit educational institution or group may be the designated 16 beneficiary of only one tournament each year under this section. 17 Sec. 05.18.240. Term of a license. An owner's initial license expires five 18 years after the effective date of the license. 19 Sec. 05.18.250. Revocation of owner's license for delay. The department 20 may revoke an owner's license if 21 (1) the licensee begins regular operations more than 12 months after 22 receiving the department's approval of the application for the license; and 23 (2) the department determines that the revocation of the license is in 24 the best interests of the state. 25 Sec. 05.18.260. Renewal of owner's license; compliance investigations. (a) 26 The owner's license may be renewed for an additional five-year period, provided that 27 the bond required under AS 05.18.220 remains in force, the annual license fees have 28 been paid in a timely fashion, and the requirements of this section are met. 29 (b) A licensed owner shall undergo a complete investigation by the 30 department every five years to determine whether the licensed owner remains in 31 compliance with this chapter.
01 (c) Notwithstanding (b) of this section, the department may investigate a 02 licensed owner at any time the department determines necessary to ensure that the 03 licensee remains in compliance with this chapter. 04 (d) The licensed owner shall bear the cost of an investigation or 05 reinvestigation of the licensed owner and an investigation resulting from a potential 06 transfer of ownership. 07 Sec. 05.18.270. Schools for training occupational licensees. This chapter 08 does not prohibit a licensed owner from operating a school for the training of 09 occupational licensees. 10 Sec. 05.18.280. Nature of license. An owner's license is a revocable privilege 11 granted by the state and is not a property right. 12 Sec. 05.18.290. Occupations requiring license. The department shall 13 determine the occupations related to card games and card rooms that require a license 14 under this chapter. The department shall require that an individual applying for an 15 occupational license may manage card operations for only one licensed owner. 16 Sec. 05.18.300. Occupational license; requirements; fees; duration; 17 renewal; compliance investigations. (a) The department may issue an occupational 18 license to an individual if 19 (1) the individual has applied for the occupational license and provided 20 the information required under AS 05.18.130; 21 (2) a nonrefundable application fee set by the department has been 22 paid on behalf of the applicant in accordance with (b) of this section; 23 (3) the department has determined that the applicant is eligible for an 24 occupational license; and 25 (4) an annual license fee set by the department has been paid on behalf 26 of the applicant in accordance with (b) of this section. 27 (b) A licensed owner or an applicant for an owner's license shall pay the 28 application fee of an individual applying for an occupational license to work at the 29 licensed owner's card operation and any renewal fees on behalf of an employee or 30 potential employee. The licensed owner or applicant for an owner's license may seek 31 reimbursement of the application fee or annual license fee from an employee who is
01 issued an occupational license by the department. 02 (c) A license issued under this section is valid for two years after the date of 03 issuance. 04 (d) Unless an occupational license is suspended, expires, or is revoked by the 05 department, the occupational license may be renewed biennially upon the payment of 06 a license renewal fee by the licensed owner on behalf of the licensee, or by the 07 licensee in an amount established by the department and a determination by the 08 department that the licensee is in compliance with this chapter. 09 (e) The department may investigate the holder of an occupational license at 10 any time the department determines necessary to ensure that the licensee is in 11 compliance with this chapter. 12 (f) A licensed owner or an applicant for an owner's license shall pay the cost 13 of an investigation or reinvestigation by the department of a holder of an occupational 14 license who is employed by the licensed owner. The licensed owner or applicant for 15 an owner's license may seek reimbursement of the cost of an investigation or 16 reinvestigation from an employee who holds an occupational license. 17 Sec. 05.18.310. Qualifications for occupational license. The department 18 may not issue an occupational license to an individual unless the individual 19 (1) is at least 21 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 department 23 determines is necessary to operate card games; and 24 (4) has met standards of character and fitness adopted by the 25 department for the holding of an occupational license. 26 Sec. 05.18.320. Application for occupational license. (a) An application for 27 an occupational license shall be made on forms prescribed by the department and 28 contain all information required by the department. 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 applied for or held any
01 other licenses related to card rooms, and, if so, the state or other licensing jurisdiction, 02 the date of application, the license number if a license was issued, or in the case of an 03 unsuccessful application, the reason the license was not issued; 04 (2) if the applicant has been licensed in another state under any other 05 name, the name under which the applicant was licensed in the other state; 06 (3) the applicant's age. 07 (c) An applicant for an occupational license shall submit with the application 08 two sets of the applicant's fingerprints. The applicant must submit the fingerprints on 09 forms provided by the department. The department shall charge each applicant the fee 10 set by the Department of Public Safety for state and national fingerprint record 11 searches. 12 Sec. 05.18.330. Restrictions on issuance of occupational license. The 13 department may refuse to issue an occupational license to an individual who 14 (1) is unqualified to perform the duties required of the applicant; 15 (2) does not disclose or states falsely any information required by the 16 application; 17 (3) has been found guilty of a violation of this chapter; or 18 (4) has not met standards of character and fitness adopted by the 19 department for the holding of an occupational license. 20 Sec. 05.18.340. Suspension, revocation, or restriction of licenses. The 21 department may suspend, revoke, or restrict an occupational licensee for 22 (1) a violation of this chapter; 23 (2) a cause that, if known to the department, would have disqualified 24 the applicant from receiving the occupational license; 25 (3) a default in the payment of an obligation or a debt due to the state; 26 or 27 (4) any other just cause. 28 Sec. 05.18.350. Schools for training occupational licensees. (a) This 29 chapter does not prohibit a licensed owner from entering into an agreement with a 30 school approved by the department for the training of an occupational licensee. 31 (b) Training offered by a school described in (a) of this section must be in
01 accordance with a written agreement between the licensed owner and the school and 02 approved by the department. 03 Sec. 05.18.360. Training locations. Training provided for occupational 04 licensees may be conducted in a card room or at a school with which a licensed owner 05 has entered into an agreement under this chapter. 06 Article 4. Crimes. 07 Sec. 05.18.400. Crimes. (a) A person commits a class A misdemeanor if the 08 person 09 (1) with criminal negligence makes a false statement on an application 10 submitted under this chapter; 11 (2) with criminal negligence owns or operates a card operation in 12 which wagering is conducted or is to be conducted in a manner other than the manner 13 required under this chapter; 14 (3) with criminal negligence permits a person under 21 years of age to 15 make a wager; 16 (4) recklessly aids, induces, or causes a person under 21 years of age 17 who is not an employee of the card room to enter or attempt to enter the card room; or 18 (5) knowingly enters or attempts to enter a card room and is not an 19 employee of the card room and is under 21 years of age. 20 (b) A person commits a class C felony if the person knowingly 21 (1) offers, promises, or gives anything of value or benefit 22 (A) to a person who is connected with the owner of a card 23 room, including an officer or an employee of a licensed owner or holder of an 24 occupational license; and 25 (B) under an agreement to influence or with the intent to 26 influence 27 (i) the actions of the person to whom the offer, promise, 28 or gift was made in order to affect or attempt to affect the outcome of a 29 card game; or 30 (ii) an official action of the department; 31 (2) solicits, accepts, or receives a promise of anything of value or
01 benefit 02 (A) while the person is connected with a card room, including 03 an officer or employee of a licensed owner or a holder of an occupational 04 license; and 05 (B) under an agreement to influence or with the intent to 06 influence the actions of the person to affect or attempt to affect the outcome of 07 a card game or an official action of the department; 08 (3) uses, or possesses with the intent to use, a device to assist in 09 projecting the outcome of a card game; 10 (4) cheats at a card game; 11 (5) manufactures, sells, or distributes any cards, chips, or device that is 12 intended to be used to violate this chapter; 13 (6) alters or misrepresents the outcome of a card 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 card game after acquiring 17 knowledge that is not available to all players and that concerns the outcome of the card 18 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 card game; 21 (9) claims, collects, takes, or attempts to claim, collect, or take money 22 or anything of value in or from a card game with the intent to defraud or without 23 having made a wager contingent on winning a card game; 24 (10) claims, collects, or takes an amount of money or thing of value of 25 greater value than the amount won in a card game; 26 (11) uses or possesses counterfeit chips or tokens in or for use in a card 27 game; 28 (12) possesses a key or device designed for opening, entering, or 29 affecting the operation of a card game, a drop box, or an electronic or mechanical 30 device connected with the card game or removing coins, tokens, chips, or other 31 contents of a card game; this paragraph does not apply to a licensee or an employee of
01 a licensee acting in the course of the employee's employment; 02 (13) possesses materials intended to be used in a manner that violates 03 this chapter; 04 (14) knowingly owns or operates a card operation in which wagering is 05 conducted or is to be conducted in a manner other than the manner required under this 06 chapter. 07 (c) A person who violates (a) of this section is guilty of a class C felony if, 08 within the five years preceding the violation, the person has been previously convicted 09 under 10 (1) this section; or 11 (2) a law or ordinance of this or another jurisdiction with elements 12 substantially similar to this section. 13 Sec. 05.18.410. Possession of cheating devices; presumption. The 14 possession of more than one of the devices described in AS 05.18.400(b) as cheating 15 devices creates a rebuttable presumption that the possessor intended to use the devices 16 for cheating. 17 Article 5. General Provisions. 18 Sec. 05.18.500. State gaming fund. There is created in the general fund the 19 state gaming fund. The state gaming fund consists of all revenue received from card 20 room activities under this chapter and all other money credited or transferred to the 21 fund from another fund or source. 22 Sec. 05.18.900. Definitions. (a) In this chapter, 23 (1) "card game" means a non-banking card game listed in 24 AS 05.18.010(b); 25 (2) "card operation" means the conduct of card games in a licensed 26 card room; 27 (3) "card room" means a structure in which card games authorized 28 under this chapter are conducted by an owner licensed under this chapter; 29 (4) "cheat" means to alter the selection of criteria that determine the 30 result of a card game or the amount or frequency of payment in a card game; 31 (5) "department" means the Department of Revenue;
01 (6) "gross receipts" means the total amount of money exchanged for 02 the purchase of chips or tokens by card room patrons; 03 (7) "license" means a license issued by the department under this 04 chapter; 05 (8) "licensed owner" means a person that owns a card room who is 06 licensed under this chapter; 07 (9) "licensee" means a person holding a license issued under this 08 chapter; 09 (10) "owner's license" means a license issued under this chapter that 10 allows a person to own and operate a card room. 11 (b) In this chapter, the terms "intentionally," "knowingly," "recklessly," and 12 "with criminal negligence" have the meanings given in AS 11.81.900(a). 13 * Sec. 3. AS 11.66.280(2) is amended to read: 14 (2) "gambling" means that a person stakes or risks something of value 15 upon the outcome of a contest of chance or a future contingent event not under the 16 person's control or influence, upon an agreement or understanding that that person or 17 someone else will receive something of value in the event of a certain outcome; 18 "gambling" does not include 19 (A) bona fide business transactions valid under the law of 20 contracts for the purchase or sale at a future date of securities or commodities 21 and agreements to compensate for loss caused by the happening of chance, 22 including contracts of indemnity or guaranty and life, health, or accident 23 insurance; 24 (B) playing an amusement device that 25 (i) confers only an immediate right of replay not 26 exchangeable for something of value other than the privilege of 27 immediate replay; and 28 (ii) does not contain a method or device by which the 29 privilege of immediate replay may be cancelled or revoked; or 30 (C) an activity authorized by the Department of Revenue under 31 AS 05.15 or AS 05.18;
01 * Sec. 4. AS 44.64.030(a)(2) is amended to read: 02 (2) AS 05.15 and AS 05.18 (charitable gaming; card rooms);