Legislature(1993 - 1994)
1993-05-08 House Journal
Full Journal pdf1993-05-08 House Journal Page 1744 HB 168 CSHB 168(FIN) am Second Reading Amendment No. 10 YEAS: 16 NAYS: 24 EXCUSED: 0 ABSENT: 0 Yeas: Barnes, G.Davis, Finkelstein, Green, Hanley, Kott, Martin, Mulder, Nordlund, Olberg, Parnell, Porter, Sanders, Therriault, Toohey, Vezey Nays: Brice, Brown, Bunde, Carney, Davidson, Davies, B.Davis, Foster, Grussendorf, Hoffman, Hudson, James, Larson, Mackie, MacLean, Menard, Moses, Navarre, Nicholia, Phillips, Sitton, Ulmer, Williams, Willis And so, Amendment No. 10 was not adopted. Amendment No. 11 was offered by Representative Davies: Page 3, line 21, following "community;" (title amendment): Insert "providing civil penalties, including suspension of liquor licenses and permits, for certain violations of the charitable gaming laws;" Page 3, after line 24: Insert a new bill section to read: "* Sec. 2. AS 04.11.370 is amended by adding a new subsection to read: (b) The board (1) shall suspend, under the conditions and for the periods set out in AS 05.15.200(c)(2) and (3), the license or permit of a person who violates AS05.15; (2) may suspend for the period set out in AS05.15.200(c)(1), the license or permit of a person who violates AS05.15; if the board does not suspend the license or permit, the board shall issue a written statement of the reason the permit or license was not revoked." Renumber the following bill sections accordingly. 1993-05-08 House Journal Page 1745 HB 168 Page 17, following line 12: Insert a new bill section to read: "* Sec. 32. AS05.15.200 is amended by adding a new subsection to read: (c) Notwithstanding any other provision of this chapter, if the commissioner determines that a violation of this chapter by a permittee, vendor, or licensee has occurred, the commissioner shall impose a civil penalty as follows: (1) for a first violation within the preceding 10 years, the commissioner shall, if the permittee, vendor, or licensee had gross receipts of (A) less than $20,000 from activities conducted under this chapter during the preceding calendar year, assess a civil penalty of not more than $1,000, or an amount equal to the monetary gain realized by the permittee, vendor, or licensee as a result of the violation, whichever is greater; or (B) $20,000 or more from activities conducted under this chapter during the preceding calendar year, suspend for 30 days all of the licenses, permits, or registrations held by the permittee, vendor, or licensee; and assess a civil penalty of the greater of (i) at least $1,000, but not more than $5,000; or (ii) an amount equal to the monetary gain realized by the permittee, licensee, or vendor as a result of the violation; if the permittee, vendor, or licensee also holds a license or permit issued under AS04.11, the commissioner shall transmit a copy of the record to the Alcoholic Beverage Control Board and the board may suspend that license or permit for not more than 30 days; (2) for a second violation within 10 years of the first violation, the commissioner shall suspend for one year all of the permits, licenses, or registrations held by the permittee, vendor, or licensee, and assess a civil penalty of the greater of (A) at least $2,500, but not more than $10,000; or (B) an amount equal to the monetary gain realized by the permittee, vendor, or licensee as a result of the violation; if the permittee, vendor, or licensee also holds a license or permit issued under AS 04.11, the commissioner shall transmit a copy of the record to the Alcoholic Beverage Control Board and the board shall suspend that license or permit for at least 30 days; and (3) for a third or subsequent violation within a 10-year period, the commissioner shall revoke all of the permits, licenses, or registrations held by the permittee, vendor, or licensee and 1993-05-08 House Journal Page 1746 HB 168 assess a civil penalty of the greater of (A) at least $10,000, but not more than $25,000; or (B) an amount equal to the monetary gain realized by the permittee, vendor, or licensee as a result of the violation; if the permittee, vendor, or licensee also holds a license or permit issued under AS 04.11, the commissioner shall transmit a copy of the record to the Alcoholic Beverage Control Board and the board shall suspend that license or permit for at least one year; a permittee, licensee, or vendor whose permit, license, or registration has been revoked under this paragraph may not apply for a new permit, license, or registration until at least 10 years have elapsed;" Renumber the following sections accordingly. Page 19, line 10: Delete "12 and 16" Insert "13 and 17" Page 19, line 12: Delete "12 and 16" Insert "13 and 17" Representative Davies moved and asked unanimous consent that Amendment No. 11 be adopted. Representative Mackie objected. The question being: "Shall Amendment No. 11 be adopted?" The roll was taken with the following result: CSHB 168(FIN) am Second Reading Amendment No. 11 YEAS: 20 NAYS: 20 EXCUSED: 0 ABSENT: 0 Yeas: Barnes, Brice, Brown, Bunde, Carney, Davidson, Davies, B.Davis, Finkelstein, Green, Hanley, Kott, Martin, Menard, Navarre, Nordlund, Parnell, Sitton, Ulmer, Willis 1993-05-08 House Journal Page 1747 HB 168 Nays: G.Davis, Foster, Grussendorf, Hoffman, Hudson, James, Larson, Mackie, MacLean, Moses, Mulder, Nicholia, Olberg, Phillips, Porter, Sanders, Therriault, Toohey, Vezey, Williams And so, Amendment No. 11 was not adopted. Amendment No. 12 was offered by Representative Davidson: Page 2, line 14, after "vendors;" (title amendment): Insert "relating to the distribution of pull-tabs from one distributor to another distributor;" Page 12, after line 13: Insert a new bill section to read: "* Sec. 24. AS05.15.185 is amended to read: Sec. 05.15.185. DISTRIBUTION OF PULL-TAB GAMES. Each series of pull-tabs distributed in the state must be sealed and have a serial number label issued by the National Association of Fundraising Ticket Manufacturers or other serial number label approved by the department and may be distributed only to (1) a municipality or a qualified organization that has obtained a permit issued under this chapter; (2) [OR TO] an operator on behalf of an authorizing permittee; or (3) a distributor licensed under this chapter." Renumber the following bill sections accordingly. Representative Davidson moved and asked unanimous consent that Amendment No. 12 be adopted. Objection was heard. The question being: "Shall Amendment No. 12 be adopted?" The roll was taken with the following result: CSHB 168(FIN) am Second Reading Amendment No. 12 YEAS: 39 NAYS: 1 EXCUSED: 0 ABSENT: 0 1993-05-08 House Journal Page 1748 HB 168 Yeas: Barnes, Brice, Brown, Bunde, Carney, Davidson, Davies, B.Davis, G.Davis, Finkelstein, Foster, Green, Grussendorf, Hanley, Hoffman, Hudson, James, Kott, Larson, Mackie, MacLean, Martin, Menard, Moses, Mulder, Navarre, Nicholia, Nordlund, Olberg, Parnell, Phillips, Porter, Sitton, Therriault, Toohey, Ulmer, Vezey, Williams, Willis Nays: Sanders And so, Amendment No. 12 was adopted, and the new title appears below: "An Act establishing a testing program for charitable gaming permittees and operators; relating to the duties of members in charge; allowing the holders of a multiple-beneficiary charitable gaming permit that consists entirely of noncommercial broadcasting stations or networks of such stations to sell a pull-tab series at more than one location during the same day if the sales are made at the customary business location of one or more of the holders, at another location by an employee of one of the stations or networks, or by a registered vendor; allowing permittees that are noncommercial broadcasting stations or networks of such stations to contract with vendors to sell pull-tabs on behalf of the permittee at certain retail establishments and eating establishments; requiring at least 50 percent of the net proceeds of certain activities conducted by noncommercial broadcasting stations and networks of those stations be placed in an endowment fund, the earnings of which may be used for the purposes, and under the procedures, provided by law; prohibiting a pull-tab game that provides a right to participate in a lottery if a prize or award in the lottery exceeds $250,000; requiring a vendor contracting with a permittee that is a noncommercial broadcasting station or a network of such stations to pay the permittee at least 80 percent of the ideal net for each pull-tab series delivered to the vendor by the permittee; requiring regulations relating to pull-tabs to be consistent with North American Gaming Regulators Association standards on pull-tabs to the extent permitted by charitable gaming laws; allowing permittees to contract with vendors to sell pull-tabs on behalf of the permittee at an establishment holding a package store license and certain establishments holding a beverage 1993-05-08 House Journal Page 1749 HB 168 dispensary license; allowing municipalities to prohibit vendors from conducting gaming activities within the municipality; restricting the purchase of pull-tabs by permittees, licensees, and vendors and their owners, managers, and employees; requiring receipts before prizes of $50 or more may be awarded in pull-tab games; prohibiting distributors from supplying pull-tabs to vendors; relating to the distribution of pull-tabs from one distributor to another distributor; requiring the registration of vendors and regulating activities involving them; requiring the licensing of out-of-state pull-tab manufacturers and increasing the annual licensing fee for pull-tab manufacturers; requiring the department regulating charitable gaming to approve contracts between permittees and operators before gaming may occur; preventing persons with felony convictions or convictions for crimes involving theft or dishonesty or a violation of gambling laws from being involved in charitable gaming activities as a permittee, licensee, vendor, person responsible for the operation of an activity, fund raiser or consultant of a licensee or vendor, or employee in a managerial or supervisory capacity, and providing exceptions for certain persons whose convictions are at least 10 years old and are not for violation of an unclassified felony described in AS 11, a class A felony, or extortion; relating to multiple-beneficiary charitable gaming permits and door prizes for charitable gaming; requiring operators to pay permittees at least 30 percent of the adjusted gross income from a pull-tab activity and limiting operators to expenses of not more than 70 percent of the adjusted gross income from that activity; requiring operators to pay permittees at least 10 percent of the adjusted gross income from a charitable gaming activity other than pull-tabs and limiting operators to expenses of not more than 90 percent of the adjusted gross income from that activity; requiring a permittee who uses a pull-tab vendor to enter into a contract with that vendor; requiring a vendor contracting with a permittee to pay the permittee at least 70 percent of the ideal net for each pull-tab series delivered to the vendor by the permittee; requiring that operators report an adjusted gross income of at least 15 percent of gross income; allowing the commissioner regulating charitable gaming to issue orders prohibiting violations of state gaming laws; relating to the authority of the commissioner regulating charitable gaming to suspend or revoke a permit, license, or registration; prohibiting the 1993-05-08 House Journal Page 1750 HB 168 payment of any portion of the net proceeds of a bingo or pull-tab game to a registered lobbyist; providing a penalty for false statements in gaming license applications; providing communities with the authority by local option election to prohibit charitable gaming within the community; and providing for an effective date." Amendment No. 13 was offered by Representative Therriault: Page 3, line 18, following "registration;": Insert "prohibiting the direct or indirect contribution of any portion of a charitable gaming activity to a candidate for public office, to that candidate's campaign organization, to a political party, or to an organization or club organized under or formally affiliated with a political party; providing that a political organization is not a charitable organization for purposes of participation in charitable gaming" Page 9, line 24, through page 10, line 10: Delete all material and insert: "* Sec. 15. AS 05.15.150(a) is repealed and reenacted to read: (a) The authority to conduct the activity authorized by this chapter is contingent upon the dedication of the net proceeds of the charitable gaming activity to the awarding of prizes to contestants or participants and to educational, civic, public, charitable, patriotic or religious uses in the state. "Educational, civic, public, charitable, patriotic, or religious uses" means uses benefiting persons either by bringing them under the influence of education or religion or relieving them from disease, suffering, or constraint, or by assisting them in establishing themselves in life, or by providing for the promotion of the welfare and well-being of the membership of the organization within their own community, or by erecting or maintaining public buildings or works, or lessening the burden on government, but does not include (1) the direct or indirect contribution of any portion of the proceeds of a charitable gaming activity to a candidate for a public office of the state or a political subdivision of the state, to that candidate's campaign organization, to a political party as 1993-05-08 House Journal Page 1751 HB 168 defined under AS15.60, or to an organization or club organized under or formally affiliated with a political party; (2) the payment of any portion directly or indirectly of the net proceeds of the charitable gaming activity to a lobbyist registered under AS24.45; or (3) the erection, acquisition, improvement, maintenance, or repair of real, personal, or mixed property unless it is used exclusively for one or more of the permitted uses." Page 17, following line 12: Insert a new bill section to read: "* Sec. 31. AS 05.15.210(29) is amended to read: (29) "qualified organization" means a bona fide civic or service organization or a bona fide religious, charitable, fraternal, veterans, labor, [POLITICAL,] or educational organization, police or fire department and company, dog mushers' association, outboard motor association, or fishing derby or nonprofit trade association in the state, that operates without profits to its members and that has been in existence continually for a period of three years immediately before applying for a license; the organization may be a firm, corporation, company, association, or partnership;" Renumber the following bill sections accordingly. Page 19, following line 7: Insert a new bill section to read: "* Sec. 34. AS 05.15.210(27) is repealed." Renumber the following bill sections accordingly. Page 19, line 10: Delete "and 16" Insert ", 15, 16, 31, and 34" Page 19, line 12: Delete "and 16" Insert ", 15, 16, 31, and 34" Representative Therriault moved and asked unanimous consent that Amendment No. 13 be adopted. 1993-05-08 House Journal Page 1752 HB 168 Representative Davies objected. The Speaker stated that CSHB 168(FIN) am would be held in second reading with all pending amendments for the May 9, 1993, calendar.