00 CS FOR HOUSE BILL NO. 168(FIN) 01 "An Act allowing the holders of a multiple-beneficiary charitable gaming permit 02 that consists entirely of noncommercial broadcasting stations or networks of such 03 stations to sell a pull-tab series at more than one location during the same day 04 if the sales are made at the customary business location of one or more of the 05 holders, at another location by an employee of one of the stations or networks, 06 or by a registered vendor; allowing permittees that are noncommercial 07 broadcasting stations or networks of such stations to contract with vendors to sell 08 pull-tabs on behalf of the permittee at certain retail establishments and eating 09 establishments; requiring at least 50 percent of the net proceeds of certain 10 activities conducted by noncommercial broadcasting stations and networks of those 11 stations be placed in an endowment fund, the earnings of which may be used 12 for the purposes, and under the procedures, provided by law; prohibiting a pull-tab game that 13 provides a right to participate in a lottery if a prize or award 14 in the lottery exceeds $250,000; requiring a vendor contracting with a permittee 01 that is a noncommercial broadcasting station or a network of such stations to 02 pay the permittee at least 80 percent of the ideal net for each pull-tab series 03 delivered to the vendor by the permittee; requiring regulations relating to pull-tabs to be consistent 04 with North American Gaming Regulators Association 05 standards on pull-tabs to the extent permitted by charitable gaming laws; allowing 06 permittees to contract with vendors to sell pull-tabs on behalf of the permittee 07 at an establishment holding a package store license and certain establishments 08 holding a beverage dispensary license; allowing municipalities to prohibit vendors 09 from conducting gaming activities within the municipality; restricting the purchase 10 of pull-tabs by permittees, licensees, and vendors and their owners, managers, and 11 employees; requiring receipts before prizes of $50 or more may be awarded in 12 pull-tab games; prohibiting distributors from supplying pull-tabs to vendors; 13 requiring the registration of vendors and regulating activities involving them; 14 requiring the licensing of out-of-state pull-tab manufacturers and increasing the 15 annual licensing fee for pull-tab manufacturers; requiring the department 16 regulating charitable gaming to approve contracts between permittees and operators 17 before gaming may occur; preventing persons with felony convictions or 18 convictions for crimes involving theft or dishonesty or a violation of gambling 19 laws from being involved in charitable gaming activities as a permittee, licensee, 20 vendor, person responsible for the operation of an activity, fund raiser or 21 consultant of a licensee or vendor, or employee in a managerial or supervisory 22 capacity, and providing exceptions for certain persons whose convictions are at 23 least 10 years old and are not for violation of an unclassified felony described 24 in AS 11, a class A felony, or extortion; relating to multiple-beneficiary charitable 25 gaming permits and door prizes for charitable gaming; requiring operators to pay 26 permittees each quarter at least 30 percent of the adjusted gross income from 27 a pull-tab activity and limiting operators to expenses of not more than 70 percent 28 of the adjusted gross income from that activity; requiring operators to pay 29 permittees each quarter at least 10 percent of the adjusted gross income from 30 a charitable gaming activity other than pull-tabs and limiting operators to 31 expenses of not more than 90 percent of the adjusted gross income from that 01 activity; requiring a permittee who uses a pull-tab vendor to enter into a 02 contract with that vendor; requiring a vendor contracting with a permittee to pay 03 the permittee at least 70 percent of the ideal net for each pull-tab series 04 delivered to the vendor by the permittee; requiring that operators report an 05 adjusted gross income of at least 15 percent of gross income each quarter; 06 allowing the commissioner regulating charitable gaming to issue orders prohibiting 07 violations of state gaming laws; relating to the authority of the commissioner 08 regulating charitable gaming to suspend or revoke a permit, license, or 09 registration; prohibiting the payment of any portion of the net proceeds of a 10 bingo or pull-tab game to a registered lobbyist; providing a penalty for false 11 statements in gaming license applications; providing communities with the authority 12 by local option election to prohibit charitable gaming within the community; and 13 providing for an effective date." 14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 15 * Section 1. This Act may be known as the Gambling Limitation Act of 1993. 16 * Sec. 2. AS 05.15.060 is amended to read: 17  Sec. 05.15.060. REGULATIONS. The department shall adopt regulations 18 under the Administrative Procedure Act (AS 44.62) necessary to carry out this chapter 19 covering, but not limited to, 20  (1) the issuance, renewal, and revocation of permits, [AND] licenses, 21 and vendor registrations; 22  (2) a method of ascertaining net proceeds, the determination of items 23 of expense that may be incurred or paid, and the limitation of the amount of the items 24 of expense to prevent the proceeds from the activity permitted from being diverted to 25 noncharitable, noneducational, nonreligious, or profit-making organizations, individuals, 26 or groups; 27  (3) the immediate revocation of permits, [AND] licenses, and vendor 28 registrations authorized under this chapter if this chapter or regulations adopted under 29 it are violated; 30  (4) the requiring of detailed, sworn, financial reports of operations from 31 permittees and licensees including detailed statements of receipts and payments; 01  (5) the investigation of permittees, licensees, registered vendors, and 02 their employees, including the fingerprinting of those permittees, licensees, registered 03 vendors, and employees whom the commissioner considers it advisable to fingerprint; 04  (6) [EXCLUSION FROM PARTICIPATION AS A PERMITTEE, 05 LICENSEE, OR EMPLOYEE OF A PERMITTEE OR LICENSEE, OF A PERSON 06 CONVICTED OF, IN PRISON FOR, OR ON PAROLE FOR A FELONY WITHIN 07 THE PRECEDING FIVE YEARS, OR CONVICTED OF A CRIME INVOLVING 08 THEFT OR DISHONESTY OR OF A VIOLATION OF A MUNICIPAL, STATE, OR 09 FEDERAL GAMBLING LAW; 10  (7)] the method and manner of conducting authorized activities and 11 awarding of prizes or awards, and the equipment that may be used; 12  (7) [(8)] the number of activities that may be held, operated, or 13 conducted under a permit during a specified period; however, the department may not 14 allow more than 14 bingo sessions a month and 35 bingo games a session to be 15 conducted under a permit; the holders of a multiple-beneficiary permit under 16 AS 05.15.100(d) may hold, operate, or conduct the number of sessions and games 17 a month equal to the number allowed an individual permittee per month 18 multiplied by the number of holders of the multiple-beneficiary permit; 19  (8) [(9)] 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) [(10)] the disposition of funds in possession of a permittee, [OR] 23 a person, municipality, or qualified organization that possesses an operator's license, 24 or a registered vendor at the time a permit, [OR] a license, or a vendor registration 25 is surrendered, revoked, or invalidated; 26  (10) [(11)] restrictions on the participation by employees of the 27 Department of Fish and Game in salmon classics; and in king salmon classics, and by 28 employees of Douglas Island Pink and Chum in king salmon classics; 29  (11) [(12)] other matters the commissioner considers necessary to carry 30 out this chapter or protect the best interest of the public. 31 * Sec. 3. AS 05.15.060 is amended by adding a new subsection to read: 01  (b) Regulations adopted by the department under this section relating to 02 charitable gaming activity involving pull-tabs shall, to the extent permitted by this 03 chapter, be consistent with the standards on pull-tabs of the North American Gaming 04 Regulators Association, as amended from time to time. 05 * Sec. 4. AS 05.15.070 is amended to read: 06  Sec. 05.15.070. EXAMINATION OF BOOKS AND RECORDS. The 07 commissioner may examine or have examined the books and records of a permittee, 08 an operator, a registered vendor, or a person licensed to manufacture or to distribute 09 pull-tab games in the state. The commissioner may issue subpoenas for the attendance 10 of witnesses and the production of books, records, and other documents. 11 * Sec. 5. AS 05.15.100 is amended by adding a new subsection to read: 12  (d) The commissioner may issue a multiple-beneficiary permit to two to six 13 municipalities or qualified organizations or to a combination of two to six 14 municipalities and qualified organizations that apply jointly for the permit. The permit 15 gives the permit holders the privilege of jointly conducting the activities specified in 16 (a) and (b) of this section, subject to the restrictions set out in (b) of this section. 17 * Sec. 6. AS 05.15 is amended by adding a new section to read: 18  Sec. 05.15.105. PERSONS PROHIBITED FROM INVOLVEMENT; 19 EXCEPTIONS. (a) If a person has been convicted of a violation of a law of this state 20 that is, or a law or ordinance of another jurisdiction that would be if it had been 21 committed in this state, a felony, or a violation of a law or ordinance of this state or 22 another jurisdiction that is a crime involving theft or dishonesty or a violation of 23 gambling laws 24  (1) the department may not issue a license to the person; 25  (2) the department may not issue a license to, or register as a vendor, 26 an applicant who employs the person in a managerial or supervisory capacity or uses 27 the person as a fund raiser or consultant; 28  (3) the department may not issue a permit for an activity if the person 29 is responsible for the operation of the activity; 30  (4) the person may not be employed in a managerial or supervisory 31 capacity by a licensee or vendor or used as a fund raiser or consultant by a licensee 01 or vendor; 02  (5) the person may not participate in charitable gaming as a permittee, 03 licensee, or vendor. 04  (b) The department shall adopt regulations that provide that a disqualification 05 of a person under (a) of this section based upon a conviction of that person for a 06 violation 07  (1) of a law of this state that is, or a law or ordinance of another 08 jurisdiction that would be if it was committed in this state, a class B felony other than 09 extortion, a class C felony, or an unclassified felony described outside of AS 11, and 10 that is not a crime of dishonesty or theft or a violation of gambling laws, terminates 11 10 years after the person's conviction; 12  (2) of a law or ordinance of this state or another jurisdiction that is a 13 crime involving theft or dishonesty or a violation of gambling laws, and that is not, 14 or would not be if it was committed in this state, an unclassified felony described in 15 AS 11, a class A felony, or extortion, terminates 10 years after the person's conviction, 16 if the department determines that the 17  (A) person is of good character, honesty, and integrity; and 18  (B) person's involvement in charitable gaming is not against the 19 public interest. 20 * Sec. 7. AS 05.15.112(a) is amended to read: 21  (a) Each municipality or qualified organization that receives a permit under 22 this chapter shall designate a member in charge. Municipalities and qualified 23 organizations that hold a multiple-beneficiary permit shall jointly designate one 24 member in charge. 25 * Sec. 8. AS 05.15.112(b) is amended to read: 26  (b) The member in charge is responsible for preparation, maintenance, and 27 transmittal of all records and reports required of the permittee. The member in charge 28 shall be a member of the qualified organization or the board of directors of the 29 qualified organization or an employee of the municipality. In the case of a multiple-beneficiary permit, the 30 member in charge shall be a member of one of the 31 qualified organizations or the board of directors of one of the qualified 01 organizations or an employee of one of the municipalities. 02 * Sec. 9. AS 05.15.112(d) is amended to read: 03  (d) The municipality or qualified organization, or the holders of a multiple-beneficiary permit, shall 04 designate alternate members in charge who are responsible 05 for the duties of the member in charge in the absence of the member in charge. 06 * Sec. 10. AS 05.15.115(d) is amended to read: 07  (d) A permittee shall submit by certified mail to the department for approval 08 a copy of each contract with an operator with whom the permittee contracts to conduct 09 activities subject to this chapter. The contract must meet the requirements of this 10 section. The department shall approve or disapprove the contract. If the 11 contract is disapproved, reasons for the disapproval shall be provided in writing 12 to the permittee. Activities may not be conducted under the contract before the 13 contract is approved. Subsequent amendments to an approved contract do not 14 take effect until the amendments are approved by the department [THE 15 PERMITTEE SHALL SUBMIT TO THE DEPARTMENT A COPY OF THE 16 CONTRACT OR SUBSEQUENT AMENDMENT OF THE CONTRACT BY 17 CERTIFIED MAIL AT LEAST 15 DAYS BEFORE ACTIVITIES ARE 18 CONDUCTED UNDER THE CONTRACT OR AMENDED CONTRACT]. 19 * Sec. 11. AS 05.15.124 is amended to read: 20  Sec. 05.15.124. MUNICIPAL REGULATION OF OPERATORS. A 21 municipality may by ordinance prohibit an operator or a vendor from conducting 22 activities under this chapter within the municipality. 23 * Sec. 12. AS 05.15.128(a) is amended to read: 24  (a) The department shall revoke the license of an operator who does not 25  (1) report an adjusted gross income of at least 15 percent of gross 26 income for each quarter [TWO CONSECUTIVE QUARTERS] based on the total 27 operation of the operator; or 28  (2) pay to each authorizing permittee for each quarter [TWO 29 CONSECUTIVE QUARTERS] at least 30 percent of the adjusted gross income, as 30 determined under (1) of this subsection, from a pull-tab activity or at least 10 [15] 31 percent of the adjusted gross income, as determined under (1) of this subsection, from 01 a gaming activity other than pull-tabs, received from activities conducted on behalf 02 of the authorizing permittee. 03 * Sec. 13. AS 05.15.140(b) is amended to read: 04  (b) In an application for a permit, a municipality or qualified organization shall 05 disclose the name and address of each person responsible for the operation of the 06 activity and whether any person named 07  (1) has been convicted of [, IN PRISON FOR, OR ON PAROLE FOR] 08 a violation of a law of this state that is, or a law or ordinance of another state that 09 would be if committed in this state, an unclassified felony described in AS 11, a 10 Class A felony, extortion, or a violation of a law or ordinance of this state or 11 another jurisdiction that is [WITHIN THE PRECEDING FIVE YEARS, OR 12 CONVICTED OF] a crime involving theft or dishonesty or [OF] a violation of [A 13 MUNICIPAL, STATE, OR FEDERAL] gambling laws [LAW]; or 14  (2) has a prohibited financial interest, as defined in regulations adopted 15 by the commissioner, in the operation of the activity. 16 * Sec. 14. AS 05.15 is amended by adding a new section to read: 17  Sec. 05.15.145. MULTIPLE-BENEFICIARY PERMITS. (a) Two to six 18 municipalities or qualified organizations, or a combination of two to six municipalities 19 and qualified organizations, may jointly apply for a multiple-beneficiary permit under 20 AS 05.15.100(d). The commissioner may not issue or renew a permit except upon 21 satisfactory proof that each joint applicant is a municipality or qualified organization, 22 the activity may be permitted under this chapter, and the issuance of a permit is not 23 detrimental to the best interests of the public. Upon request of the commissioner, the 24 joint applicants shall prove conclusively each of these requirements before a permit 25 may be issued or renewed. 26  (b) The provisions of AS 05.15.140(b) - (d) apply to multiple-beneficiary 27 permits and applications for them. 28  (c) A municipality or qualified organization that is among the holders of a 29 multiple-beneficiary permit may withdraw from the permit by giving written notice of 30 intent to withdraw to the department and to the other holders of the permit. The 31 effective date of the withdrawal is 30 days after the department receives written notice 01 of intent. A municipality or qualified organization that withdraws from a multiple-beneficiary permit may apply for 02 a permit under AS 05.15.100(a), but its share of the 03 prizes awarded under the multiple-beneficiary permit and the prizes it awards under 04 its own permit are subject to the maximums established in AS 05.15.180(g). 05  (d) The holders of a multiple-beneficiary permit shall jointly file reports with 06 the department that comply with the reporting requirements imposed on operators 07 under AS 05.15.083. 08 * Sec. 15. AS 05.15.150(a) is amended to read: 09  (a) The authority to conduct the activity authorized by this chapter is 10 contingent upon the dedication of the net proceeds of the charitable gaming activity 11 [RAFFLES OR CONTESTS] to the awarding of prizes to contestants or participants 12 and to political, educational, civic, public, charitable, patriotic or religious uses in the 13 state. "Political, educational, civic, public, charitable, patriotic, or religious uses" means 14 uses benefiting persons either by bringing them under the influence of education or 15 religion or relieving them from disease, suffering, or constraint, or by assisting them 16 in establishing themselves in life, or by providing for the promotion of the welfare and 17 well-being of the membership of the organization within their own community, or 18 through aiding candidates for public office or groups that support candidates for public 19 office, or by erecting or maintaining public buildings or works, or lessening the burden 20 on government, but does not include 21  (1) the direct or indirect payment of any portion of the net 22 proceeds of a bingo or pull-tab game to a lobbyist registered under AS 24.45; or 23  (2) the erection, acquisition, improvement, maintenance, or repair of 24 real, personal, or mixed property unless it is used exclusively for one or more of the 25 permitted uses [STATED]. 26 * Sec. 16. AS 05.15.160 is amended by adding new subsections to read: 27  (c) The total amount of authorized expenses that may be incurred under (a) of 28 this section in connection with a pull-tab activity may not exceed 70 percent of the 29 adjusted gross income from that pull-tab activity. 30  (d) The total amount of authorized expenses that may be incurred under (a) of 31 this section in connection with any gaming activity other than pull-tabs may not exceed 01 90 percent of the adjusted gross income from that gaming activity. 02 * Sec. 17. AS 05.15.170 is repealed and reenacted to read: 03  Sec. 05.15.170. SUSPENSION OR REVOCATION OF PERMIT, LICENSE, 04 OR VENDOR REGISTRATION. (a) The department may suspend, for a period of 05 up to one year, or revoke a permit, license, or vendor registration, after giving notice 06 to and an opportunity to be heard by the permittee or licensee, if the permittee, 07 licensee, or vendor 08  (1) violates or fails to comply with a requirement of this chapter or of 09 a regulation adopted under this chapter; 10  (2) breaches a contractual agreement with a permittee, licensee, or 11 registered vendor; 12  (3) becomes disqualified to participate in charitable gaming as provided 13 in AS 05.15.105; for the purposes of this paragraph, a permittee, licensee, or vendor 14 that is not a natural person is considered convicted if an owner or manager of the 15 permittee, licensee, or vendor is convicted; or 16  (4) knowingly submits false information to the department or, in the 17 case of a registered vendor, to a permittee when the vendor knows that the false 18 information will be submitted to the department as part of an application for 19 registration; 20  (5) gives or acts upon any inside information on the status of the prizes 21 awarded or to be awarded in a pull-tab game. 22  (b) If the department revokes a license or vendor registration under this 23 section, it may prohibit the licensee or vendor from reapplying for a license or vendor 24 registration for a period of not more than five years. If the department revokes a 25 permit under this section, it may prohibit the permittee from reapplying for a permit 26 for a period of not more than one year. 27 * Sec. 18. AS 05.15.180(d) is amended to read: 28  (d) The total value of door prizes offered or awarded under authority of a 29 permit issued to a municipality or qualified organization under this chapter or under 30 authority of a multiple-beneficiary permit may not exceed $20,000 a month or 31 $240,000 a year. 01 * Sec. 19. AS 05.15.180(e) is amended to read: 02  (e) The total value of all door prizes offered or awarded at a single facility or 03 bingo hall or parlor by an operator on behalf of authorizing permittees [OR BY A 04 PERMITTEE IN CONJUNCTION WITH OTHER PERMITTEES] may not exceed 05 $20,000 a month or $240,000 a year. 06 * Sec. 20. AS 05.15.180(g) is amended to read: 07  (g) A municipality or a qualified organization may award a maximum of 08 $1,000,000 in prizes each year in activities authorized under this chapter; however, if 09 a municipality or a qualified organization contracts with an operator to conduct on its 10 behalf activities authorized under this chapter, the municipality or qualified 11 organization may award a maximum of $500,000 in prizes each year. The holders of 12 a multiple-beneficiary permit under AS 05.15.100(d) may award a maximum in 13 prizes each year of $1,000,000 times the number of holders of the permit for 14 activities authorized under this chapter. In this subsection "activities authorized 15 under this chapter" means all activities subject to this chapter other than bingo. 16 * Sec. 21. AS 05.15.181(a) is amended to read: 17  (a) A person may not manufacture pull-tabs in the state, and may not sell or 18 distribute a pull-tab that the person has manufactured outside of the state to 19 persons in the state, unless the person has received a pull-tab manufacturer's license 20 issued by the department. 21 * Sec. 22. AS 05.15.181(b) is amended to read: 22  (b) The department may issue a pull-tab manufacturer's license to a person 23 who pays an annual fee of $2,500 [$500]. 24 * Sec. 23. AS 05.15.183 is amended by adding a new subsection to read: 25  (e) A distributor may not 26  (1) take an order for the purchase of a pull-tab series from a vendor; 27  (2) sell a pull-tab series to a vendor; or 28  (3) deliver a pull-tab series to a vendor. 29 * Sec. 24. AS 05.15.187(e) is amended to read: 30  (e) Pull-tabs may not be sold to a person under the age of 21 [19] years. A 31 person under the age of 21 [19] years may not purchase a pull-tab. 01 * Sec. 25. AS 05.15.187(f) is amended to read: 02  (f) Each permittee [MUNICIPALITY OR QUALIFIED ORGANIZATION] 03 that had gross receipts exceeding $100,000 during the preceding year from activities 04 conducted under this chapter or that is required to report under AS 05.15.080(a), that 05 conducts a pull-tab game shall maintain records for two years of each prize of $50 or 06 more, the first day and last day that each series was distributed, the serial number of 07 each series, and the distributor from whom each series was purchased. In this section 08 "permittee" includes municipalities and qualified organizations that jointly hold 09 a multiple-beneficiary permit. 10 * Sec. 26. AS 05.15.187(g) is amended to read: 11  (g) Notwithstanding other provisions of this chapter, a pull-tab game that 12 confers an additional right upon all or some of the purchasers of a pull-tab series to 13 participate in a lottery for additional prizes may not be conducted in the state unless 14  (1) a surety bond in the amount of $250,000 conditioned upon payment 15 of all prizes and awards when due is submitted to the department by the operator or 16 authorizing permittee and approved by the attorney general; and 17  (2) each prize or award under the lottery does not exceed $250,000. 18 * Sec. 27. AS 05.15.187 is amended by adding new subsections to read: 19  (h) An owner, manager, or employee of a person holding a permit or license 20 under this chapter, or registered under this chapter as a vendor, may not purchase a 21 pull-tab from a pull-tab series manufactured, distributed, or sold by the permittee, 22 licensee, or registered vendor. 23  (i) A permittee, operator, or registered vendor may not turn over a prize of $50 24 or more to a person with a pull-tab card entitling the person to that prize unless the 25 person signs a receipt for the prize and returns the receipt to the permittee, operator, 26 or vendor. The receipt must be in a form approved by the department. 27  (j) Notwithstanding (b) of this section, the department shall allow the 28 permittees of a multiple-beneficiary charitable gaming permit that is held solely by 29 noncommercial broadcasting stations or networks of those stations to sell a pull-tab 30 series at more than one location during the same day if the sales are made (1) at the 31 customary place of business of one or more of the participating stations or networks; 01 (2) at another location if the sales are made by an employee of one of the stations or 02 networks; or (3) by a registered vendor. Notwithstanding AS 05.15.188(i), if the sales 03 under this subsection are made by a registered vendor, the contract between the 04 permittees and the vendor must provide that the permittees shall receive no less than 05 80 percent of the ideal net. Not less than 50 percent of the net proceeds from an 06 activity conducted under this subsection must be placed by the noncommercial 07 broadcasting stations or networks of those stations in an endowment fund, the earnings 08 of which may be used, for the purposes and uses, and under the procedures, provided 09 in AS 05.15.150. 10 * Sec. 28. AS 05.15 is amended by adding a new section to article 2 to read: 11  Sec. 05.15.188. PULL-TAB SALES BY VENDORS ON BEHALF OF 12 PERMITTEES; VENDOR REGISTRATION. (a) A permittee may contract with a 13 vendor to sell pull-tabs on behalf of the permittee, if the permittee first registers the 14 vendor with the department by applying for registration on a form prescribed by the 15 department and by submitting the registration fee of $50 for each location at which the 16 vendor will sell pull-tabs. 17  (b) A permittee that is a noncommercial broadcasting station or a network of 18 such stations may not contract with a vendor as defined under AS 05.15.210(43)(C)(ii) 19 to sell pull-tabs on behalf of the permittee. 20  (c) Upon approval of the vendor registration, the department shall issue an 21 endorsement to the permittee's permit that authorizes the conduct of pull-tab sales at 22 that vendor location. 23  (d) The endorsement issued under (c) of this section is an extension of the 24 permittee's privilege under AS 05.15.100 to conduct pull-tab sales in this state. A 25 vendor may not sell a pull-tab series until a copy of the permit containing the 26 endorsement for the new vendor location has been posted by the permittee in the 27 registered vendor establishment. The endorsed permit must be clearly visible to the 28 gaming public. 29  (e) A separate endorsement shall be issued for each vendor location. The 30 permittee shall inform the department when a vendor with whom the permittee is 31 contracting changes the physical location at which pull-tabs are sold, and shall return 01 to the department all copies of a permit endorsed to a vendor that is no longer selling 02 pull-tabs on behalf of the permittee. Failure to inform the department of a change in 03 vendor location, or to return the endorsed copies of a permit to the department after 04 a vendor change, may constitute grounds for the suspension or revocation of a 05 permittee's permit. 06  (f) At the time that a permittee annually renews its permit, it shall also renew 07 the registration of all locations where a vendor is selling pull-tabs on the permittee's 08 behalf and shall pay a registration fee of $50 for each vendor location. 09  (g) A permittee that uses a vendor to sell pull-tabs on its behalf shall enter into 10 a written contract with that vendor. The department may inspect this contract. If the 11 contract contains provisions that violate this chapter or the regulations adopted under 12 it, the department may declare the contract void, and may suspend or revoke the 13 registration of the vendor and the permit of the permittee. 14  (h) A person, other than a permittee's member-in-charge, may not directly 15 supply a pull-tab series to a registered vendor for sale by that vendor on behalf of the 16 permittee. 17  (i) If a permittee contracts with a vendor under (a) of this section, the contract 18 must provide that the permittee shall receive no less than 70 percent of the ideal net. 19  (j) An amount equal to the ideal net less the compensation owed to the vendor 20 shall be paid by the vendor to the member-in-charge upon delivery of a pull-tab series 21 to the vendor for sale. The amount required to be paid by the vendor shall be paid by 22 check and the check may not be drawn in a manner that the payee is not identified. 23  (k) An operator may not contract with or use a vendor to sell pull-tabs. 24  (l) A permittee may not contract with more than five vendors under this 25 section. 26 * Sec. 29. AS 05.15 is amended by adding new sections to read: 27  Sec. 05.15.195. ORDER PROHIBITING ACTION IN VIOLATION OF 28 CHAPTER. (a) If the commissioner determines that a person has engaged in an act 29 or practice in violation of this chapter or a regulation adopted under this chapter, the 30 commissioner may, after giving reasonable notice to the person and an opportunity for 31 the person to be heard, issue an order prohibiting the violation by the person. The 01 order remains in effect until the person has submitted evidence acceptable to the 02 commissioner showing that the violation has been corrected. 03  (b) If the public interest requires, the commissioner may issue an emergency 04 order prohibiting an act or practice in violation of this chapter or a regulation adopted 05 under this chapter without notice to or an opportunity to be heard by the person 06 affected by the order. The commissioner shall immediately serve the person with a 07 copy of the emergency order. An emergency order expires 60 days after the date it 08 is issued, if the person affected by the order requests a hearing within 15 days of 09 receipt of the order. If the person does not request a hearing within 15 days of receipt 10 of the emergency order, the order becomes permanent. Following a hearing, the 11 commissioner may rescind, modify, or make permanent the emergency order. 12  (c) A party aggrieved by an order under this section may appeal to the superior 13 court. 14  Sec. 05.15.197. PROHIBITION OF CHARITABLE GAMING. (a) The 15 following question, appearing alone, may be placed before the voters of a municipality 16 or an established village in accordance with AS 05.15.198: "Shall charitable gaming 17 in . . . . . . . (name of municipality or village) be prohibited? (yes or no)". 18  (b) If a majority of the voters vote "yes" on the question set out in (a) of this 19 section, the department shall be notified immediately after certification of the results 20 of the election and thereafter the department may not issue a license, permit, or vendor 21 registration authorizing charitable gaming within the boundaries of a municipality and 22 in unincorporated areas within five miles of the boundaries of the municipality or 23 within the perimeter of an established village. Existing licenses, permits, and vendor 24 registrations for charitable gaming within the boundaries of a municipality and in 25 unincorporated areas within five miles of the boundaries of the municipality or within 26 the perimeter of an established village that has prohibited charitable gaming by local 27 option election held under this section are void 90 days after the results of the election 28 are certified. A license or vendor registration that will expire during the 90 days after 29 the results of a local option election under this section are certified is void as of the 30 expiration date. 31  Sec. 05.15.198. PROCEDURE FOR LOCAL OPTION ELECTIONS. (a) The 01 local governing body of a municipality, whenever a number of registered voters equal 02 to at least 10 percent of the number of votes cast at the last regular municipal election 03 petition the local governing body to do so, shall place upon a separate ballot at the 04 next regular election or at a special election the question set out in AS 05.15.197 that 05 is the subject of the petition. The local governing body shall conduct the election in 06 accordance with the election ordinance of the municipality. 07  (b) The lieutenant governor, whenever 10 percent of the registered voters 08 residing within an established village petition the lieutenant governor to do so, shall 09 place upon a separate ballot at a special election the question set out in AS 05.15.197 10 that is the subject of the petition. The lieutenant governor shall conduct the election 11 in the manner prescribed by AS 15 (Alaska Election Code). 12  (c) Notwithstanding any other provisions of law, an election under (a) or (b) 13 of this section to remove a restriction on charitable gaming imposed under 14 AS 05.15.197 may not be conducted more than once every 12 months. 15  (d) AS 29.26.110 - 29.26.160 apply to a petition under (a) of this section in 16 a general law municipality except the 17  (1) number of required signatures is determined under (a) of this 18 section rather than under AS 29.26.130; 19  (2) application filed under AS 29.26.110 must contain the question set 20 out under AS 05.15.197 rather than containing an ordinance or resolution; 21  (3) petition must contain the question set out under AS 05.15.197 rather 22 than material required under AS 29.26.120(a)(1) and (2). 23 * Sec. 30. AS 05.15.200(b) is amended to read: 24  (b) A person who, with the intent to mislead a public servant in the 25 performance of the public servant's duty, submits a false statement in an application 26 for a permit, license, or vendor registration under this chapter [,] is guilty of unsworn 27 falsification. 28 * Sec. 31. AS 05.15.210 is amended by adding new paragraphs to read: 29  (36) "established village" means an unincorporated community that is 30 in 31  (A) the unorganized borough and that has 25 or more permanent 01 residents; or 02  (B) an organized borough, has 25 or more permanent residents; 03 and 04  (i) is on a road system and is located more than 50 05 miles outside the boundary limits of a unified municipality; or 06  (ii) is not on a road system and is located more than 15 07 miles outside the boundary limits of a unified municipality; 08  (37) "fund raiser or consultant" means a person who provides advice 09 or technical assistance in support of or concerning the conduct of gaming activities 10 under this chapter, whether the person is or is not an employee of a licensee; 11  (38) "governing body" has the meaning given in AS 29.71.800. 12  (39) "ideal net" means an amount equal to the total amount of receipts 13 that would be received if every individual pull-tab ticket in a series were sold at face 14 value, less the prizes to be awarded for that series; 15  (40) "managerial or supervisory capacity" means that the employee 16  (A) is responsible for gaming receipts; 17  (B) has the authority to hire employees or to dismiss or 18 otherwise discipline them; 19  (C) prepares financial reports required under this chapter; 20  (D) is responsible for keeping the accounts for activities under 21 this chapter; 22  (E) is responsible for conducting activities under this chapter, 23 including the arranging for locations at which those activities will occur; or 24  (F) is a fund raiser or a consultant; 25  (41) "noncommercial broadcasting station" means a radio or television 26 station that is licensed by the Federal Communications Commission to a governmental 27 entity or to an entity that is exempt from federal taxation under 26 U.S.C. 501(c)(3) 28 (Internal Revenue Code); 29  (42) "permittee" means a municipality or a qualified organization that 30 holds a valid permit under AS 05.15.100; 31  (43) "vendor" means a business whose primary activity is not regulated 01 by this chapter but that 02  (A) is engaged in the sale of pull-tabs on behalf of a permittee; 03  (B) holds a business license under AS 43.70; and 04  (C) if 05  (i) a permittee is a noncommercial broadcasting station 06 or a network of those stations, the business is a retail establishment or 07 an eating establishment, and the establishment is not licensed under 08 AS 04.11.090 or 04.11.150; or 09  (ii) a permittee is other than a permittee described in (i) 10 of this subparagraph, the business is an establishment holding a 11 beverage dispensary license under AS 04.11.090 that has not been 12 designated by the Alcoholic Beverage Control Board under 13 AS 04.16.049(a)(2) - (3), has not been exempted by the Department of 14 Labor under AS 04.16.049(c) and AS 23.10.355, and if the 15 establishment is a hotel, motel, resort, or similar business that caters to 16 the traveling public as a substantial part of its business, does not allow 17 the sale of pull-tabs in a dining room, banquet room, guest room, or 18 other public areas other than a room in which there is regularly 19 maintained a fixed counter or service bar at which alcoholic beverages 20 are sold or served to members of the public for consumption; or an 21 establishment holding a package store license under AS 04.11.150. 22 * Sec. 32. AS 05.15.122(c), 05.15.122(d), and 05.15.140(c) are repealed. 23 * Sec. 33. AS 05.15.187(g)(2), 05.15.187(j), 05.15.188(b), 05.15.210(39), and 24 05.15.210(43)(C)(i), are repealed January 1, 1996. 25 * Sec. 34. Except for secs. 12 and 16 of this Act, this Act takes effect immediately under 26 AS 01.10.070(c). 27 * Sec. 35. Sections 12 and 16 of this Act take effect January 1, 1994.