00 CS FOR SENATE BILL NO. 200(FIN) am 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; allowing 13 municipalities to prohibit vendors from conducting gaming activities within the 14 municipality; relating to reports by the commissioner regulating charitable gaming 01 to the legislature; requiring registration of vendors; relating to multiple-beneficiary 02 charitable gaming permits and door prizes for charitable gaming; preventing 03 persons with certain convictions from being involved in charitable gaming activities 04 as a vendor; prohibiting a pull-tab game that provides a right to participate in 05 a lottery if a prize or award in the lottery exceeds $250,000; requiring a vendor 06 contracting with a permittee that is a noncommercial broadcasting station or a 07 network of such stations to pay the permittee at least 80 percent of the ideal 08 net for each pull-tab series delivered to the vendor by the permittee; and 09 providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. AS 05.15.060 is amended to read: 12  Sec. 05.15.060. REGULATIONS. The department shall adopt regulations 13 under the Administrative Procedure Act (AS 44.62) necessary to carry out this chapter 14 covering, but not limited to, 15  (1) the issuance, renewal, and revocation of permits, [AND] licenses, 16 and vendor registrations; 17  (2) a method of ascertaining net proceeds, the determination of items 18 of expense that may be incurred or paid, and the limitation of the amount of the items 19 of expense to prevent the proceeds from the activity permitted from being diverted to 20 noncharitable, noneducational, nonreligious, or profit-making organizations, individuals, 21 or groups; 22  (3) the immediate revocation of permits, [AND] licenses, and vendor 23 registrations authorized under this chapter if this chapter or regulations adopted under 24 it are violated; 25  (4) the requiring of detailed, sworn, financial reports of operations from 26 permittees and licensees including detailed statements of receipts and payments; 27  (5) the investigation of permittees, licensees, registered vendors, and 28 their employees, including the fingerprinting of those permittees, licensees, registered 29 vendors, and employees whom the commissioner considers it advisable to fingerprint; 30  (6) exclusion from participation as a permittee, licensee, vendor, or 31 employee of a permittee, [OR] licensee, or vendor of a person convicted of, in prison 01 for, or on parole for a felony within the preceding five years, or convicted of a crime 02 involving theft or dishonesty or of a violation of a municipal, state, or federal 03 gambling law; 04  (7) the method and manner of conducting authorized activities and 05 awarding of prizes or awards, and the equipment that may be used; 06  (8) the number of activities that may be held, operated, or conducted 07 under a permit during a specified period; however, the department may not allow more 08 than 14 bingo sessions a month and 35 bingo games a session to be conducted under 09 a permit; the holders of a multiple-beneficiary permit under AS 05.15.100(d) may 10 hold, operate, or conduct the number of sessions and games a month equal to the 11 number allowed an individual permittee per month multiplied by the number of 12 holders of the multiple-beneficiary permit; 13  (9) a method of accounting for receipts and disbursements by operators, 14 including the keeping of records and requirements for the deposit of all receipts in a 15 bank; 16  (10) the disposition of funds in possession of a permittee, [OR] a 17 person, municipality, or qualified organization that possesses an operator's license, or 18 a registered vendor at the time a permit, [OR] a license, or a vendor registration 19 is surrendered, revoked, or invalidated; 20  (11) restrictions on the participation by employees of the Department 21 of Fish and Game in salmon classics; and in king salmon classics, and by employees 22 of Douglas Island Pink and Chum in king salmon classics; 23  (12) other matters the commissioner considers necessary to carry out 24 this chapter or protect the best interest of the public. 25 * Sec. 2. AS 05.15.070 is amended to read: 26  Sec. 05.15.070. EXAMINATION OF BOOKS AND RECORDS. The commis- 27 sioner may examine or have examined the books and records of a permittee, an 28 operator, a registered vendor, or a person licensed to manufacture or to distribute 29 pull-tab games in the state. The commissioner may issue subpoenas for the attendance 30 of witnesses and the production of books, records, and other documents. 31 * Sec. 3. AS 05.15.090 is amended to read: 01  Sec. 05.15.090. REPORTS TO THE LEGISLATURE. Before April 15 of each 02 year the commissioner shall submit a detailed report containing a (1) summary of all 03 reports required of permittees, vendors, and operators, and (2) review of all activities 04 conducted under AS 05.15.187(h). The attorney general and the commissioner of 05 public safety shall, within 10 days after the convening of the legislature each year, 06 submit a jointly prepared, detailed report outlining the effect, if any, of the operation 07 of this chapter on the legal and law enforcement activities of the state. 08 * Sec. 4. AS 05.15.090 is repealed and reenacted to read: 09  Sec. 05.15.090. REPORTS TO THE LEGISLATURE. Before April 15 of each 10 year the commissioner shall submit a detailed report containing a summary of all 11 reports required of permittees, vendors, and operators. The attorney general and the 12 commissioner of public safety shall, within 10 days after the convening of the 13 legislature each year, submit a jointly prepared, detailed report outlining the effect, if 14 any, of the operation of this chapter on the legal and law enforcement activities of the 15 state. 16 * Sec. 5. AS 05.15.100 is amended by adding a new subsection to read: 17  (d) The commissioner may issue a multiple-beneficiary permit to two to six 18 municipalities or qualified organizations or to a combination of two to six 19 municipalities and qualified organizations that apply jointly for the permit. The permit 20 gives the permit holders the privilege of jointly conducting the activities specified in 21 (a) and (b) of this section, subject to the restrictions set out in (b) of this section. 22 * Sec. 6. AS 05.15.112(a) is amended to read: 23  (a) Each municipality or qualified organization that receives a permit under 24 this chapter shall designate a member in charge. Municipalities and qualified 25 organizations that hold a multiple-beneficiary permit shall jointly designate one 26 member in charge. 27 * Sec. 7. AS 05.15.112(b) is amended to read: 28  (b) The member in charge is responsible for preparation, maintenance, and 29 transmittal of all records and reports required of the permittee. The member in charge 30 shall be a member of the qualified organization or the board of directors of the 31 qualified organization or an employee of the municipality. In the case of a multiple-beneficiary permit, the 01 member in charge shall be a member of one of the 02 qualified organizations or the board of directors of one of the qualified 03 organizations or an employee of one of the municipalities. 04 * Sec. 8. AS 05.15.112(d) is amended to read: 05  (d) The municipality or qualified organization, or the holders of a multiple-beneficiary permit, shall 06 designate alternate members in charge who are responsible 07 for the duties of the member in charge in the absence of the member in charge. 08 * Sec. 9. AS 05.15.124 is amended to read: 09  Sec. 05.15.124. MUNICIPAL REGULATION OF OPERATORS. A 10 municipality may by ordinance prohibit an operator or a vendor from conducting 11 activities under this chapter within the municipality. 12 * Sec. 10. AS 05.15 is amended by adding a new section to read: 13  Sec. 05.15.145. MULTIPLE-BENEFICIARY PERMITS. (a) Two to six 14 municipalities or qualified organizations, or a combination of two to six municipalities 15 and qualified organizations, may jointly apply for a multiple-beneficiary permit under 16 AS 05.15.100(d). The commissioner may not issue or renew a permit except upon 17 satisfactory proof that each joint applicant is a municipality or qualified organization, 18 the activity may be permitted under this chapter, and the issuance of a permit is not 19 detrimental to the best interests of the public. Upon request of the commissioner, the 20 joint applicants shall prove conclusively each of these requirements before a permit 21 may be issued or renewed. 22  (b) The provisions of AS 05.15.140(b) - (d) apply to multiple-beneficiary 23 permits and applications for them. 24  (c) A municipality or qualified organization that is among the holders of a 25 multiple-beneficiary permit may withdraw from the permit by giving written notice of 26 intent to withdraw to the department and to the other holders of the permit. The 27 effective date of the withdrawal is 30 days after the department receives written notice 28 of intent. A municipality or qualified organization that withdraws from a multiple-beneficiary permit may apply for 29 a permit under AS 05.15.100(a), but its share of the 30 prizes awarded under the multiple-beneficiary permit and the prizes it awards under 31 its own permit are subject to the maximums established in AS 05.15.180(g). 01  (d) The holders of a multiple-beneficiary permit shall jointly file reports with 02 the department that comply with the reporting requirements imposed on operators 03 under AS 05.15.083. 04 * Sec. 11. AS 05.15.180(d) is amended to read: 05  (d) The total value of door prizes offered or awarded under authority of a 06 permit issued to a municipality or qualified organization under this chapter or under 07 authority of a multiple-beneficiary permit may not exceed $20,000 a month or 08 $240,000 a year. 09 * Sec. 12. AS 05.15.180(e) is amended to read: 10  (e) The total value of all door prizes offered or awarded at a single facility or 11 bingo hall or parlor by an operator on behalf of authorizing permittees [OR BY A 12 PERMITTEE IN CONJUNCTION WITH OTHER PERMITTEES] may not exceed 13 $20,000 a month or $240,000 a year. 14 * Sec. 13. AS 05.15.180(g) is amended to read: 15  (g) A municipality or a qualified organization may award a maximum of 16 $1,000,000 in prizes each year in activities authorized under this chapter; however, if 17 a municipality or a qualified organization contracts with an operator to conduct on its 18 behalf activities authorized under this chapter, the municipality or qualified 19 organization may award a maximum of $500,000 in prizes each year. The holders of 20 a multiple-beneficiary permit under AS 05.15.100(d) may award a maximum in 21 prizes each year of $1,000,000 times the number of holders of the permit for 22 activities authorized under this chapter. In this subsection "activities authorized 23 under this chapter" means all activities subject to this chapter other than bingo. 24 * Sec. 14. 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. 15. AS 05.15.187(f) is amended to read: 30  (f) Each permittee [MUNICIPALITY OR QUALIFIED ORGANIZATION] 31 that had gross receipts exceeding $100,000 during the preceding year from activities 01 conducted under this chapter or that is required to report under AS 05.15.080(a), that 02 conducts a pull-tab game shall maintain records for two years of each prize of $50 or 03 more, the first day and last day that each series was distributed, the serial number of 04 each series, and the distributor from whom each series was purchased. In this section 05 "permittee" includes municipalities and qualified organizations that jointly hold 06 a multiple-beneficiary permit. 07 * Sec. 16. AS 05.15.187(g) is amended to read: 08  (g) Notwithstanding other provisions of this chapter, a pull-tab game that 09 confers an additional right upon all or some of the purchasers of a pull-tab series to 10 participate in a lottery for additional prizes may not be conducted in the state unless 11  (1) a surety bond in the amount of $250,000 conditioned upon payment 12 of all prizes and awards when due is submitted to the department by the operator or 13 authorizing permittee and approved by the attorney general; and 14  (2) each prize or award under the lottery does not exceed $250,000. 15 * Sec. 17. AS 05.15.187 is amended by adding a new subsection to read: 16  (h) Notwithstanding (b) of this section, the department shall allow the 17 permittees of a multiple-beneficiary charitable gaming permit that is held solely by 18 noncommercial broadcasting stations or networks of those stations to sell a pull-tab 19 series at more than one location during the same day if the sales are made (1) at the 20 customary place of business of one or more of the participating stations or networks; 21 (2) at another location if the sales are made by an employee of one of the stations or 22 networks; or (3) by a registered vendor. If the sales under this section are made by 23 a registered vendor, the contract between the permittees and the vendor must provide 24 that the permittees shall receive no less than 80 percent of the ideal net. Not less than 25 50 percent of the net proceeds from an activity conducted under this subsection must 26 be placed by the noncommercial broadcasting stations or networks of those stations in 27 an endowment fund, the earnings of which may be used, for the purposes and uses, 28 and under the procedures, provided in AS 05.15.150. 29 * Sec. 18. AS 05.15 is amended by adding a new section to article 2 to read: 30  Sec. 05.15.188. PULL-TAB SALES BY VENDORS ON BEHALF OF 31 PERMITTEES THAT ARE NONCOMMERCIAL BROADCASTING STATIONS OR 01 NETWORKS OF SUCH STATIONS; VENDOR REGISTRATION. (a) A permittee 02 that is a noncommercial broadcasting station or a network of such stations may 03 contract with a vendor to sell pull-tabs on behalf of the permittee, if the permittee first 04 registers the vendor with the department by applying for registration on a form pre- 05 scribed by the department and by submitting the registration fee of $50 for each 06 location at which the vendor will sell pull-tabs. 07  (b) Upon approval of the vendor registration, the department shall issue an 08 endorsement to the permittee's permit that authorizes the conduct of pull-tab sales at 09 that vendor location. 10  (c) The endorsement issued under (b) of this section is an extension of the 11 permittee's privilege under AS 05.15.100 to conduct pull-tab sales in this state. A 12 vendor may not sell a pull-tab series until a copy of the permit containing the 13 endorsement for the new vendor location has been posted by the permittee in the 14 registered vendor establishment. The endorsed permit must be clearly visible to the 15 gaming public. 16  (d) A separate endorsement shall be issued for each vendor location. The 17 permittee shall inform the department when a vendor with whom the permittee is 18 contracting changes the physical location at which pull-tabs are sold, and shall return 19 to the department all copies of a permit endorsed to a vendor that is no longer selling 20 pull-tabs on behalf of the permittee. Failure to inform the department of a change in 21 vendor location, or to return the endorsed copies of a permit to the department after 22 a vendor change, may constitute grounds for the suspension or revocation of a 23 permittee's permit. 24  (e) At the time that a permittee annually renews its permit, it shall also renew 25 the registration of all locations where a vendor is selling pull-tabs on the permittee's 26 behalf and shall pay a registration fee of $50 for each vendor location. 27  (f) A permittee that uses a vendor to sell pull-tabs on its behalf shall enter into 28 a written contract with that vendor. The department may inspect this contract. If the 29 contract contains provisions that violate this chapter or the regulations adopted under 30 it, the department may declare the contract void, and may suspend or revoke the 31 registration of the vendor and the permit of the permittee. 01  (g) A person, other than a permittee's member-in-charge, may not directly 02 supply a pull-tab series to a registered vendor for sale by that vendor on behalf of the 03 permittee. 04  (h) An amount equal to the ideal net less the compensation owed to the vendor 05 shall be paid by the vendor to the member-in-charge upon delivery of a pull-tab series 06 to the vendor for sale. The amount required to be paid by the vendor shall be paid by 07 check and the check may not be drawn in a manner that the payee is not identified. 08  (i) An operator may not contract with or use a vendor to sell pull-tabs. 09 * Sec. 19. AS 05.15.200(b) is amended to read: 10  (b) A person who, with the intent to mislead a public servant in the 11 performance of the public servant's duty, submits a false statement in an application 12 for a permit, license, or vendor registration under this chapter [,] is guilty of unsworn 13 falsification. 14 * Sec. 20. AS 05.15.210 is amended by adding new paragraphs to read: 15  (36) "ideal net" means an amount equal to the total amount of receipts 16 that would be received if every individual pull-tab ticket in a series were sold at face 17 value, less the prizes to be awarded for that series; 18  (37) "noncommercial broadcasting station" means a radio or television 19 station that is licensed by the Federal Communications Commission to a governmental 20 entity or to an entity that is exempt from federal taxation under 26 U.S.C. 501(c)(3) 21 (Internal Revenue Code); 22  (38) "vendor" means a business whose primary activity is not regulated 23 by this chapter but that is engaged in the sale of pull-tabs on behalf of a permittee, 24 holds a business license under AS 43.70, and is a retail establishment or an eating 25 establishment, and the establishment is not licensed under AS 04.11.090 or 04.11.150. 26 * Sec. 21. AS 05.15.187(h) is repealed July 1, 1996. 27 * Sec. 22. Except for sec. 4 of this Act, this Act takes effect immediately under 28 AS 01.10.070(c). 29 * Sec. 23. Section 4 of this Act takes effect July 1, 1996.