HCS CSSB 204(FIN): "An Act relating to charitable gaming online ticket sales and activities; relating to charitable gaming proceeds; establishing the Kenai River Freeze-Up Classic; relating to auctions or raffles for hunting harvest permits, bear viewing permits, and big game tags; and providing for an effective date."
00 HOUSE CS FOR CS FOR SENATE BILL NO. 204(FIN) 01 "An Act relating to charitable gaming online ticket sales and activities; relating to 02 charitable gaming proceeds; establishing the Kenai River Freeze-Up Classic; relating to 03 auctions or raffles for hunting harvest permits, bear viewing permits, and big game 04 tags; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 05.15.060(a) is amended to read: 07 (a) The department shall adopt regulations under AS 44.62 (Administrative 08 Procedure Act) necessary to carry out this chapter covering, but not limited to, 09 (1) the issuance, renewal, and revocation of permits, licenses, and 10 vendor registrations; 11 (2) a method of ascertaining net proceeds, the determination of items 12 of expense that may be incurred or paid, and the limitation of the amount of the items 13 of expense to prevent the proceeds from the activity permitted from being diverted to 14 noncharitable, noneducational, nonreligious, or profit-making organizations,
01 individuals, or groups; 02 (3) the immediate revocation of permits, licenses, and vendor 03 registrations authorized under this chapter if this chapter or regulations adopted under 04 it are violated; 05 (4) the requiring of detailed, sworn, financial reports of operations 06 from permittees and licensees including detailed statements of receipts and payments; 07 (5) the investigation of permittees, licensees, registered vendors, and 08 their employees, including the fingerprinting of those permittees, licensees, registered 09 vendors, and employees whom the department considers it advisable to fingerprint; 10 (6) the method and manner of conducting authorized activities and 11 awarding of prizes or awards, and the equipment that may be used; 12 (7) the number of activities that may be held, operated, or conducted 13 under a permit during a specified period; however, the department may not allow more 14 than 14 bingo sessions a month and 35 bingo games a session to be conducted under a 15 permit; the holders of a multiple-beneficiary permit under AS 05.15.100(d) may hold, 16 operate, or conduct the number of sessions and games a month equal to the number 17 allowed an individual permittee a [PER] month multiplied by the number of holders of 18 the multiple-beneficiary permit; 19 (8) a method of accounting for receipts and disbursements by 20 operators, including the keeping of records and requirements for the deposit of all 21 receipts in a bank; 22 (9) the disposition of funds in possession of a permittee, a person, 23 municipality, or qualified organization that possesses an operator's license, or a 24 registered vendor at the time a permit, a license, or a vendor registration is 25 surrendered, revoked, or invalidated; 26 (10) restrictions on the participation by employees of the Department 27 of Fish and Game in salmon classics, king salmon classics, and big bull moose 28 derbies, and by employees of Douglas Island Pink and Chum in king salmon classics; 29 (11) establishment of standards for online ticket sales under 30 AS 05.15.640(d) to ensure compliance with charitable gaming laws, including age 31 and location verification requirements;
01 (12) [(11)] other matters the department considers necessary to carry 02 out this chapter or protect the best interest of the public. 03 * Sec. 2. AS 05.15.100(a) is amended to read: 04 (a) The department may issue a permit to a municipality or qualified 05 organization. The permit gives the municipality or qualified organization the privilege 06 of conducting bingo, raffles and lotteries, pull-tab games, freeze-up classics, ice 07 classics, race classics, rain classics, goose classics, mercury classics, deep freeze 08 classics, canned salmon classics, salmon classics, king salmon classics, dog mushers' 09 contests, snow classics, snow machine classics, fish derbies, animal classics, crane 10 classics, cabbage classics, Calcutta pools, big bull moose derbies, and contests of skill. 11 * Sec. 3. AS 05.15.115(c) is amended to read: 12 (c) A permittee may not contract with more than one operator at a time to 13 conduct the same type of activity. For the purposes of this subsection, bingo games, 14 raffles, lotteries, pull-tab games, freeze-up classics, ice classics, race classics, rain 15 classics, goose classics, mercury classics, deep freeze classics, canned salmon classics, 16 salmon classics, king salmon classics, dog mushers' contests, snow classics, snow 17 machine classics, fish derbies, animal classics, crane classics, cabbage classics, big 18 bull moose derbies, and contests of skill are each a different type of activity. 19 * Sec. 4. AS 05.15.150 is amended to read: 20 Sec. 05.15.150. Limitation on use of proceeds. (a) Except as provided in (c) 21 of this section, the [THE] authority to conduct the activity authorized by this chapter 22 is contingent upon the dedication of the net proceeds of the charitable gaming activity 23 to the awarding of prizes to contestants or participants and to political, educational, 24 civic, public, charitable, patriotic, or religious uses in the state. In this subsection, 25 "political, educational, civic, public, charitable, patriotic, or religious uses" means uses 26 benefiting persons either by bringing them under the influence of education or religion 27 or relieving them from disease, suffering, or constraint, or by assisting them in 28 establishing themselves in life, or by providing for the promotion of the welfare and 29 well-being of the membership of the organization within their own community, or 30 through aiding candidates for public office or groups that support candidates for public 31 office, or by erecting or maintaining public buildings or works, or lessening the burden
01 on government, but does not include 02 (1) the direct or indirect payment of any portion of the net proceeds of 03 a bingo or pull-tab game to a lobbyist registered under AS 24.45; 04 (2) the erection, acquisition, improvement, maintenance, or repair of 05 real, personal, or mixed property unless it is used exclusively for one or more of the 06 permitted uses; or 07 (3) the direct or indirect payment of any portion of the net proceeds of 08 a charitable gaming activity, except the proceeds of a raffle and lottery that are not 09 derived from online ticket sales under AS 05.15.640(d), 10 (A) to aid candidates for public office or groups that support or 11 oppose candidates for public office; 12 (B) to a political party or to an organization affiliated with a 13 political party; or 14 (C) to a group, as that term is defined in AS 15.13.400, or a 15 political group, as that term is defined in AS 15.80, that seeks to influence the 16 outcome of an election. 17 (b) The net proceeds derived from the activity must be devoted within one 18 year to one or more of the uses stated in (a) or (c) of this section. A municipality or 19 qualified organization desiring to hold the net proceeds for a period longer than one 20 year must apply to the department for special permission and upon good cause shown 21 the department may grant the request. 22 * Sec. 5. AS 05.15.150 is amended by adding a new subsection to read: 23 (c) A permittee, operator, or holder of a multiple-beneficiary permit 24 conducting a charitable gaming activity authorized by this chapter may use proceeds 25 from the charitable gaming activity for use outside the state if the proceeds are used 26 for humanitarian aid to benefit the people of a country that has been invaded by 27 another country. 28 * Sec. 6. AS 05.15.180(b) is amended to read: 29 (b) With the exception of raffles, lotteries, bingo games, pull-tab games, 30 freeze-up classics, race classics, rain classics, goose classics, mercury classics, deep 31 freeze classics, dog mushers' contests, snow classics, snow machine classics, canned
01 salmon classics, salmon classics, animal classics, crane classics, cabbage classics, 02 Calcutta pools, big bull moose derbies, and king salmon classics, a permit may not be 03 issued for an activity under this chapter unless it existed in the state in substantially the 04 same form and was conducted in substantially the same manner before January 1, 05 1959. A permit may not be issued for a snow machine classic under this chapter unless 06 it has been in existence for at least five years before the permit is issued. A permit may 07 not be issued for an animal classic under this chapter unless it was in existence before 08 November 1, 2002. 09 * Sec. 7. AS 05.15.640 is amended by adding new subsections to read: 10 (d) Notwithstanding (a) of this section, a permittee, an operator, or the holder 11 of a multiple-beneficiary permit may use the Internet or an Internet communication to 12 conduct a charitable gaming activity for a raffle or lottery, dog mushers' contest, 13 derby, or type of classic defined in AS 05.15.690. The permittee, an operator, or the 14 holder of a multiple-beneficiary permit may draw winning tickets online or by other 15 electronic or digital means. 16 (e) A purchaser shall, at the time of an online ticket sale, certify that the 17 purchaser is of legal purchasing age and is not physically present in an area that has 18 adopted a local option prohibiting charitable gaming. 19 (f) A permittee, operator, or holder of a multiple-beneficiary permit 20 conducting a charitable gaming activity under (d) of this section shall conduct the 21 charitable gaming activity in the state and determine, in the state, the winner of the 22 charitable gaming activity. 23 (g) A permittee, operator, or holder of a multiple-beneficiary permit 24 conducting a raffle or lottery under (d) of this section shall advertise the maximum 25 number of available raffle or lottery tickets at the beginning of the raffle. The 26 maximum number of available raffle or lottery tickets may be unlimited if the 27 maximum number is advertised as unlimited. The maximum number of available 28 raffle or lottery tickets may not be increased after advertisement. 29 * Sec. 8. AS 05.15.690 is amended by adding a new paragraph to read: 30 (50) "freeze-up classic" means a game of chance in which a prize of 31 money is awarded by the drawing of lot among persons who correctly guess whether a
01 body of water or watercourse in the state freezes by the date determined by the 02 administrator of the game and is limited to a Kenai River Freeze-Up Classic operated 03 and administered by the Kenai Rotary Club, the Soldotna Rotary Club, or jointly by 04 the Kenai Rotary Club and the Soldotna Rotary Club. 05 * Sec. 9. AS 16.05.130 is amended by adding a new subsection to read: 06 (h) Money accruing to the state from the auction or raffle of bear viewing 07 permits under AS 16.05.343(c) shall be deposited in a separate account known as the 08 nongame conservation account in the fish and game fund. Money in the account shall 09 be allocated to programs relating to wildlife sanctuaries and refuges, fish and wildlife 10 diversity, wildlife viewing, educational programs, and related outreach efforts. 11 * Sec. 10. AS 16.05.343(a) is amended to read: 12 (a) The department may donate each year for a competitive auction or raffle 13 up to two harvest permits for [FOUR] elk from the Etolin, Afognak, or Raspberry 14 Island herds [HERD] and one harvest permit for bison. The donation may be made 15 only to a nonprofit corporation established to promote education in outdoor traditions 16 and wildlife conservation and wildlife protection programs in partnership with the 17 department, subject to the terms of a memorandum of agreement developed by the 18 department. 19 * Sec. 11. AS 16.05.343(c) is amended to read: 20 (c) The department, subject to regulations adopted by the commissioner, may 21 issue, through a competitive auction or raffle, up to four [THREE] harvest permits 22 each year for each of the following species: emperor goose, Dall sheep, [UP TO 23 TWO HARVEST PERMITS EACH YEAR FOR] bison, [AND UP TO FOUR 24 HARVEST PERMITS EACH YEAR FOR EACH OF THE FOLLOWING BIG 25 GAME SPECIES:] musk ox, brown or grizzly bear, black bear, moose, caribou, goat, 26 elk, and wolf. Subject to regulations, if the department issues permits that allow 27 persons to view bears in the McNeil River State Game Sanctuary established 28 under AS 16.20.160 and 16.20.162, the department may issue up to four of the 29 viewing permits through a competitive auction or raffle. Notwithstanding 30 AS 36.30, the department may authorize a qualified organization selected under (e) of 31 this section to conduct the auction or raffle on behalf of the department. If the
01 department does authorize a qualified organization to conduct an auction or raffle for a 02 [BIG GAME] species, the department shall make available to a qualified organization 03 at least one harvest permit for that species. [IF THE AUCTION OR RAFFLE IS 04 CONDUCTED BY A QUALIFIED ORGANIZATION, THE ORGANIZATION 05 MAY RETAIN AN AMOUNT FROM THE GROSS PROCEEDS OF THE 06 AUCTION OR RAFFLE EQUAL TO THE ADMINISTRATIVE COST OF THE 07 AUCTION OR RAFFLE PLUS AN AMOUNT NOT TO EXCEED 30 PERCENT OF 08 THE NET PROCEEDS. THE PERCENT OF THE PROCEEDS FROM THE 09 AUCTION OR RAFFLE OF A BIG GAME HARVEST PERMIT RETAINED BY 10 THE ORGANIZATION MAY BE USED ONLY TO SUPPORT OUTDOOR 11 TRADITION EDUCATION PROJECTS AND CONSERVATION AND WILDLIFE 12 PROTECTION PROGRAMS APPROVED BY THE DEPARTMENT AND MAY 13 NOT BE USED TO MAKE A CONTRIBUTION TO ANY CANDIDATE FOR 14 POLITICAL OFFICE OR TO ANY ORGANIZATION SUPPORTING OR 15 OPPOSING BALLOT PROPOSITIONS OR TO PAY EXPENSES ASSOCIATED 16 WITH LOBBYING THE LEGISLATURE OR ADMINISTRATION. ALL 17 PROCEEDS FROM THE AUCTION OR RAFFLE OF THE BIG GAME HARVEST 18 PERMIT LESS THE AMOUNT THAT IS RETAINED BY A QUALIFIED 19 ORGANIZATION UNDER THIS SUBSECTION SHALL BE DEPOSITED IN THE 20 FISH AND GAME FUND UNDER AS 16.05.100.] A person who is issued a [BIG 21 GAME] harvest permit under this subsection shall receive upon the person's request a 22 complimentary hunting license and, if applicable, a big game tag for the [BIG 23 GAME] species for which the [BIG GAME] harvest permit is issued. A hunting 24 license issued under this subsection must bear the inscription "Governor's license" or a 25 similar designation. Notwithstanding an inscription as a "Governor's license" or a 26 similar designation, the commissioner shall issue licenses under this section. A 27 person who receives a [BIG GAME] harvest permit, hunting license, or big game tag 28 under this subsection may exercise the privileges conveyed by the permit, license, or 29 tag only in accordance with applicable law. In this subsection, "qualified organization" 30 means an organization selected under (e) of this section. 31 * Sec. 12. AS 16.05.343(e) is amended to read:
01 (e) The department may select a nonprofit organization that promotes 02 education in outdoor traditions and wildlife conservation and that conducts wildlife 03 conservation and wildlife protection programs to conduct auctions or raffles for the 04 department under (c) of this section. An organization selected under this subsection is 05 a qualified organization for purposes of (c) of this section if the organization 06 (1) is incorporated in the state as a nonprofit corporation; and 07 (2) in the judgment of the department, demonstrates support for a state- 08 based model through a user-pays system based on sustained yield and use principles. 09 * Sec. 13. AS 16.05.343 is amended by adding new subsections to read: 10 (f) If an auction or raffle is conducted by an organization qualified under (e) of 11 this section, the organization may retain an amount from the gross proceeds of the 12 auction or raffle equal to the administrative cost of the auction or raffle plus an 13 additional amount from the auction or raffle not to exceed 30 percent of the net 14 proceeds if the organization will use the funds to support outdoor tradition and wildlife 15 conservation education projects and wildlife conservation and wildlife protection 16 programs approved by the department. 17 (g) Proceeds from a raffle or lottery held under this section may be used only 18 by an organization qualified under (e) of this section for the purposes provided by (f) 19 of this section, and may not be used to make a contribution to a candidate for political 20 office or to an organization supporting or opposing ballot propositions or paying 21 expenses associated with lobbying the legislature or administration. All proceeds from 22 the auction or raffle of the harvest permit less the amount that is retained by a 23 qualified organization under this subsection shall be deposited in the fish and game 24 fund under AS 16.05.100. 25 * Sec. 14. AS 05.15.150(c) is repealed July 1, 2023. 26 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 TRANSITION: REGULATIONS. The Department of Revenue may adopt regulations 29 necessary to implement secs. 2, 3, 6, and 8 of this Act. The regulations take effect under 30 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 31 implemented by the regulation.
01 * Sec. 16. Sections 2, 3, 6, and 8 of this Act take effect January 1, 2023. 02 * Sec. 17. Except as provided in sec. 16 of this Act, this Act takes effect immediately under 03 AS 01.10.070(c).