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HCS CSSB 204(FIN) am H: "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 displaying fishing, hunting, and trapping licenses on an electronic device; 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) am H 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 displaying fishing, hunting, and trapping licenses on an electronic device; relating to 04 auctions or raffles for hunting harvest permits, bear viewing permits, and big game 05 tags; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 05.15.060(a) is amended to read: 08 (a) The department shall adopt regulations under AS 44.62 (Administrative 09 Procedure Act) necessary to carry out this chapter covering, but not limited to, 10 (1) the issuance, renewal, and revocation of permits, licenses, and 11 vendor registrations; 12 (2) a method of ascertaining net proceeds, the determination of items 13 of expense that may be incurred or paid, and the limitation of the amount of the items

01 of expense to prevent the proceeds from the activity permitted from being diverted to 02 noncharitable, noneducational, nonreligious, or profit-making organizations, 03 individuals, or groups; 04 (3) the immediate revocation of permits, licenses, and vendor 05 registrations authorized under this chapter if this chapter or regulations adopted under 06 it are violated; 07 (4) the requiring of detailed, sworn, financial reports of operations 08 from permittees and licensees including detailed statements of receipts and payments; 09 (5) the investigation of permittees, licensees, registered vendors, and 10 their employees, including the fingerprinting of those permittees, licensees, registered 11 vendors, and employees whom the department considers it advisable to fingerprint; 12 (6) the method and manner of conducting authorized activities and 13 awarding of prizes or awards, and the equipment that may be used; 14 (7) the number of activities that may be held, operated, or conducted 15 under a permit during a specified period; however, the department may not allow more 16 than 14 bingo sessions a month and 35 bingo games a session to be conducted under a 17 permit; the holders of a multiple-beneficiary permit under AS 05.15.100(d) may hold, 18 operate, or conduct the number of sessions and games a month equal to the number 19 allowed an individual permittee a [PER] month multiplied by the number of holders of 20 the multiple-beneficiary permit; 21 (8) a method of accounting for receipts and disbursements by 22 operators, including the keeping of records and requirements for the deposit of all 23 receipts in a bank; 24 (9) the disposition of funds in possession of a permittee, a person, 25 municipality, or qualified organization that possesses an operator's license, or a 26 registered vendor at the time a permit, a license, or a vendor registration is 27 surrendered, revoked, or invalidated; 28 (10) restrictions on the participation by employees of the Department 29 of Fish and Game in salmon classics, king salmon classics, and big bull moose 30 derbies, and by employees of Douglas Island Pink and Chum in king salmon classics; 31 (11) establishment of standards for online ticket sales under

01 AS 05.15.640(d) to ensure compliance with charitable gaming laws, including age 02 and location verification requirements; 03 (12) [(11)] other matters the department considers necessary to carry 04 out this chapter or protect the best interest of the public. 05 * Sec. 2. AS 05.15.100(a) is amended to read: 06 (a) The department may issue a permit to a municipality or qualified 07 organization. The permit gives the municipality or qualified organization the privilege 08 of conducting bingo, raffles and lotteries, pull-tab games, freeze-up classics, ice 09 classics, race classics, rain classics, goose classics, mercury classics, deep freeze 10 classics, canned salmon classics, salmon classics, king salmon classics, dog mushers' 11 contests, snow classics, snow machine classics, fish derbies, animal classics, crane 12 classics, cabbage classics, Calcutta pools, big bull moose derbies, and contests of skill. 13 * Sec. 3. AS 05.15.115(c) is amended to read: 14 (c) A permittee may not contract with more than one operator at a time to 15 conduct the same type of activity. For the purposes of this subsection, bingo games, 16 raffles, lotteries, pull-tab games, freeze-up classics, ice classics, race classics, rain 17 classics, goose classics, mercury classics, deep freeze classics, canned salmon classics, 18 salmon classics, king salmon classics, dog mushers' contests, snow classics, snow 19 machine classics, fish derbies, animal classics, crane classics, cabbage classics, big 20 bull moose derbies, and contests of skill are each a different type of activity. 21 * Sec. 4. AS 05.15.150 is amended to read: 22 Sec. 05.15.150. Limitation on use of proceeds. (a) Except as provided in (c) 23 of this section, the [THE] authority to conduct the activity authorized by this chapter 24 is contingent upon the dedication of the net proceeds of the charitable gaming activity 25 to the awarding of prizes to contestants or participants and to political, educational, 26 civic, public, charitable, patriotic, or religious uses in the state. In this subsection, 27 "political, educational, civic, public, charitable, patriotic, or religious uses" means uses 28 benefiting persons either by bringing them under the influence of education or religion 29 or relieving them from disease, suffering, or constraint, or by assisting them in 30 establishing themselves in life, or by providing for the promotion of the welfare and 31 well-being of the membership of the organization within their own community, or

01 through aiding candidates for public office or groups that support candidates for public 02 office, or by erecting or maintaining public buildings or works, or lessening the burden 03 on government, but does not include 04 (1) the direct or indirect payment of any portion of the net proceeds of 05 a bingo or pull-tab game to a lobbyist registered under AS 24.45; 06 (2) the erection, acquisition, improvement, maintenance, or repair of 07 real, personal, or mixed property unless it is used exclusively for one or more of the 08 permitted uses; or 09 (3) the direct or indirect payment of any portion of the net proceeds of 10 a charitable gaming activity, except the proceeds of a raffle and lottery that are not 11 derived from online ticket sales under AS 05.15.640(d), 12 (A) to aid candidates for public office or groups that support or 13 oppose candidates for public office; 14 (B) to a political party or to an organization affiliated with a 15 political party; or 16 (C) to a group, as that term is defined in AS 15.13.400, or a 17 political group, as that term is defined in AS 15.80, that seeks to influence the 18 outcome of an election. 19 (b) The net proceeds derived from the activity must be devoted within one 20 year to one or more of the uses stated in (a) or (c) of this section. A municipality or 21 qualified organization desiring to hold the net proceeds for a period longer than one 22 year must apply to the department for special permission and upon good cause shown 23 the department may grant the request. 24 * Sec. 5. AS 05.15.150 is amended by adding a new subsection to read: 25 (c) A permittee, operator, or holder of a multiple-beneficiary permit 26 conducting a charitable gaming activity authorized by this chapter may use proceeds 27 from the charitable gaming activity for use outside the state if the proceeds are used 28 for humanitarian aid to benefit the people of a country that has been invaded by 29 another country. 30 * Sec. 6. AS 05.15.180(b) is amended to read: 31 (b) With the exception of raffles, lotteries, bingo games, pull-tab games,

01 freeze-up classics, race classics, rain classics, goose classics, mercury classics, deep 02 freeze classics, dog mushers' contests, snow classics, snow machine classics, canned 03 salmon classics, salmon classics, animal classics, crane classics, cabbage classics, 04 Calcutta pools, big bull moose derbies, and king salmon classics, a permit may not be 05 issued for an activity under this chapter unless it existed in the state in substantially the 06 same form and was conducted in substantially the same manner before January 1, 07 1959. A permit may not be issued for a snow machine classic under this chapter unless 08 it has been in existence for at least five years before the permit is issued. A permit may 09 not be issued for an animal classic under this chapter unless it was in existence before 10 November 1, 2002. 11 * Sec. 7. AS 05.15.640 is amended by adding new subsections to read: 12 (d) Notwithstanding (a) of this section, a permittee, an operator, or the holder 13 of a multiple-beneficiary permit may use the Internet or an Internet communication to 14 conduct a charitable gaming activity for a raffle or lottery, dog mushers' contest, 15 derby, or type of classic defined in AS 05.15.690. The permittee, an operator, or the 16 holder of a multiple-beneficiary permit may draw winning tickets online or by other 17 electronic or digital means. 18 (e) A purchaser shall, at the time of an online ticket sale, certify that the 19 purchaser is of legal purchasing age and is not physically present in an area that has 20 adopted a local option prohibiting charitable gaming. 21 (f) A permittee, operator, or holder of a multiple-beneficiary permit 22 conducting a charitable gaming activity under (d) of this section shall conduct the 23 charitable gaming activity in the state and determine, in the state, the winner of the 24 charitable gaming activity. 25 (g) A permittee, operator, or holder of a multiple-beneficiary permit 26 conducting a raffle or lottery under (d) of this section shall advertise the maximum 27 number of available raffle or lottery tickets at the beginning of the raffle. The 28 maximum number of available raffle or lottery tickets may be unlimited if the 29 maximum number is advertised as unlimited. The maximum number of available 30 raffle or lottery tickets may not be increased after advertisement. 31 * Sec. 8. AS 05.15.690 is amended by adding a new paragraph to read:

01 (50) "freeze-up classic" means a game of chance in which a prize of 02 money is awarded by the drawing of lot among persons who correctly guess whether a 03 body of water or watercourse in the state freezes by the date determined by the 04 administrator of the game and is limited to a Kenai River Freeze-Up Classic operated 05 and administered by the Kenai Rotary Club, the Soldotna Rotary Club, or jointly by 06 the Kenai Rotary Club and the Soldotna Rotary Club. 07 * Sec. 9. AS 16.05.130 is amended by adding a new subsection to read: 08 (h) Money accruing to the state from the auction or raffle of bear viewing 09 permits under AS 16.05.343(c) shall be deposited in a separate account known as the 10 nongame conservation account in the fish and game fund. Money in the account shall 11 be allocated to programs relating to wildlife sanctuaries and refuges, fish and wildlife 12 diversity, wildlife viewing, educational programs, and related outreach efforts. 13 * Sec. 10. AS 16.05.330 is amended by adding a new subsection to read: 14 (i) Displaying proof of a license on an electronic device under (g) of this 15 section does not constitute consent for a peace officer to access other contents of the 16 electronic device. 17 * Sec. 11. AS 16.05.343(a) is amended to read: 18 (a) The department may donate each year for a competitive auction or raffle 19 up to two harvest permits for [FOUR] elk from the Etolin, Afognak, or Raspberry 20 Island herds [HERD] and one harvest permit for bison. The donation may be made 21 only to a nonprofit corporation established to promote education in outdoor traditions 22 and wildlife conservation and wildlife protection programs in partnership with the 23 department, subject to the terms of a memorandum of agreement developed by the 24 department. 25 * Sec. 12. AS 16.05.343(c) is amended to read: 26 (c) The department, subject to regulations adopted by the commissioner, may 27 issue, through a competitive auction or raffle, up to four [THREE] harvest permits 28 each year for each of the following species: emperor goose, Dall sheep, [UP TO 29 TWO HARVEST PERMITS EACH YEAR FOR] bison, [AND UP TO FOUR 30 HARVEST PERMITS EACH YEAR FOR EACH OF THE FOLLOWING BIG 31 GAME SPECIES:] musk ox, brown or grizzly bear, black bear, moose, caribou, goat,

01 elk, and wolf. Subject to regulations, if the department issues permits that allow 02 persons to view bears in the McNeil River State Game Sanctuary established 03 under AS 16.20.160 and 16.20.162, the department may issue up to four of the 04 viewing permits through a competitive auction or raffle. Notwithstanding 05 AS 36.30, the department may authorize a qualified organization selected under (e) of 06 this section to conduct the auction or raffle on behalf of the department. If the 07 department does authorize a qualified organization to conduct an auction or raffle for a 08 [BIG GAME] species, the department shall make available to a qualified organization 09 at least one harvest permit for that species. [IF THE AUCTION OR RAFFLE IS 10 CONDUCTED BY A QUALIFIED ORGANIZATION, THE ORGANIZATION 11 MAY RETAIN AN AMOUNT FROM THE GROSS PROCEEDS OF THE 12 AUCTION OR RAFFLE EQUAL TO THE ADMINISTRATIVE COST OF THE 13 AUCTION OR RAFFLE PLUS AN AMOUNT NOT TO EXCEED 30 PERCENT OF 14 THE NET PROCEEDS. THE PERCENT OF THE PROCEEDS FROM THE 15 AUCTION OR RAFFLE OF A BIG GAME HARVEST PERMIT RETAINED BY 16 THE ORGANIZATION MAY BE USED ONLY TO SUPPORT OUTDOOR 17 TRADITION EDUCATION PROJECTS AND CONSERVATION AND WILDLIFE 18 PROTECTION PROGRAMS APPROVED BY THE DEPARTMENT AND MAY 19 NOT BE USED TO MAKE A CONTRIBUTION TO ANY CANDIDATE FOR 20 POLITICAL OFFICE OR TO ANY ORGANIZATION SUPPORTING OR 21 OPPOSING BALLOT PROPOSITIONS OR TO PAY EXPENSES ASSOCIATED 22 WITH LOBBYING THE LEGISLATURE OR ADMINISTRATION. ALL 23 PROCEEDS FROM THE AUCTION OR RAFFLE OF THE BIG GAME HARVEST 24 PERMIT LESS THE AMOUNT THAT IS RETAINED BY A QUALIFIED 25 ORGANIZATION UNDER THIS SUBSECTION SHALL BE DEPOSITED IN THE 26 FISH AND GAME FUND UNDER AS 16.05.100.] A person who is issued a [BIG 27 GAME] harvest permit under this subsection shall receive upon the person's request a 28 complimentary hunting license and, if applicable, a big game tag for the [BIG 29 GAME] species for which the [BIG GAME] harvest permit is issued. A hunting 30 license issued under this subsection must bear the inscription "Governor's license" or a 31 similar designation. Notwithstanding an inscription as a "Governor's license" or a

01 similar designation, the commissioner shall issue licenses under this section. A 02 person who receives a [BIG GAME] harvest permit, hunting license, or big game tag 03 under this subsection may exercise the privileges conveyed by the permit, license, or 04 tag only in accordance with applicable law. In this subsection, "qualified organization" 05 means an organization selected under (e) of this section. 06 * Sec. 13. AS 16.05.343(e) is amended to read: 07 (e) The department may select a nonprofit organization that promotes 08 education in outdoor traditions and wildlife conservation and that conducts wildlife 09 conservation and wildlife protection programs to conduct auctions or raffles for the 10 department under (c) of this section. An organization selected under this subsection is 11 a qualified organization for purposes of (c) of this section if the organization 12 (1) is incorporated in the state as a nonprofit corporation; and 13 (2) in the judgment of the department, demonstrates support for a state- 14 based model through a user-pays system based on sustained yield and use principles. 15 * Sec. 14. AS 16.05.343 is amended by adding new subsections to read: 16 (f) If an auction or raffle is conducted by an organization qualified under (e) of 17 this section, the organization may retain an amount from the gross proceeds of the 18 auction or raffle equal to the administrative cost of the auction or raffle plus an 19 additional amount from the auction or raffle not to exceed 30 percent of the net 20 proceeds if the organization will use the funds to support outdoor tradition and wildlife 21 conservation education projects and wildlife conservation and wildlife protection 22 programs approved by the department. 23 (g) Proceeds from a raffle or lottery held under this section may be used only 24 by an organization qualified under (e) of this section for the purposes provided by (f) 25 of this section, and may not be used to make a contribution to a candidate for political 26 office or to an organization supporting or opposing ballot propositions or paying 27 expenses associated with lobbying the legislature or administration. All proceeds from 28 the auction or raffle of the harvest permit less the amount that is retained by a 29 qualified organization under this subsection shall be deposited in the fish and game 30 fund under AS 16.05.100. 31 * Sec. 15. AS 05.15.150(c) is repealed July 1, 2023.

01 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSITION: REGULATIONS. The Department of Revenue may adopt regulations 04 necessary to implement secs. 2, 3, 6, and 8 of this Act. The regulations take effect under 05 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 06 implemented by the regulation. 07 * Sec. 17. Sections 2, 3, 6, and 8 of this Act take effect January 1, 2023. 08 * Sec. 18. Except as provided in sec. 17 of this Act, this Act takes effect immediately under 09 AS 01.10.070(c).