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HB 197: "An Act relating to gaming activities on Alaska marine highway system vessels; and providing for an effective date."

00 HOUSE BILL NO. 197 01 "An Act relating to gaming activities on Alaska marine highway system vessels; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 05.15.020 is amended by adding a new subsection to read: 05 (d) The annual permit fee to conduct gaming activities on a vessel of the 06 Alaska marine highway system is $10,000. 07 * Sec. 2. 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 10 TO,] 11 (1) the issuance, renewal, and revocation of permits, licenses, and 12 vendor registrations; 13 (2) a method of ascertaining net proceeds, the determination of items 14 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 month multiplied by the number of holders of the 20 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 and 02 location verification requirements; 03 (12) gaming activities on vessels of the Alaska marine highway 04 system; 05 (13) [(12)] other matters the department considers necessary to carry 06 out this chapter or protect the best interest of the public. 07 * Sec. 3. AS 05.15 is amended by adding new sections to read: 08 Article 2A. Gaming on Alaska marine highway system vessels. 09 Sec. 05.15.300. Gaming on a vessel; tax; records. (a) Notwithstanding 10 AS 05.15.180 and AS 11.66.200 - 11.66.280, a person may conduct gaming activities 11 on a vessel if 12 (1) the person is issued a permit by the department under AS 05.15.310 13 for the gaming activities being conducted; 14 (2) the gaming activities are conducted only 15 (A) when a vessel is at least three nautical miles away from 16 shore; and 17 (B) in designated areas, which may not include dining areas, 18 areas primarily designated for children, and passenger cabins; and 19 (3) participation in gaming activities is limited to a person who is 21 20 years of age or older. 21 (b) A person operating gaming activities under this section shall pay to the 22 department a tax equal to 10 percent of the gross receipts less prizes awarded on 23 gaming activities. The person shall pay to the department the tax collected in the 24 preceding month by the 15th day of the following month. 25 (c) A person conducting a gaming activity on a vessel shall maintain records 26 of all gaming transactions and make the records available to the department for 27 inspection. 28 (d) The department may not issue more than one permit for a vessel. A person 29 may conduct more than one type of gaming activity on a vessel and may conduct 30 gaming activities on more than one vessel if the person holds a permit for each vessel. 31 Sec. 05.15.310. Permits. Notwithstanding AS 05.15.120, the department may

01 issue a permit to conduct gaming activities on a vessel to a qualified organization or a 02 business that is registered and in good standing with the Department of Commerce, 03 Community, and Economic Development and that has entered into a contract with a 04 qualified organization to operate gaming activities on behalf of the qualified 05 organization. 06 Sec. 05.15.320. Penalty. A person who conducts a gaming activity onboard a 07 vessel without a valid permit issued under AS 05.15.310 or a person who conducts or 08 participates in gaming activities onboard a vessel that violates AS 05.15.300 - 09 05.15.330 or a regulation adopted under AS 05.15.300 - 05.15.330 is guilty of a class 10 B misdemeanor. 11 Sec. 05.15.330. Definitions. In AS 05.15.300 - 05.15.330, 12 (1) "gaming activity" means bingo, pull-tab activities, raffles, lotteries, 13 card games, dice games, slot machines, video lottery terminals, or other games of 14 chance authorized by the department; 15 (2) "vessel" means a vessel of the Alaska marine highway system. 16 * Sec. 4. This Act takes effect July 1, 2023.