SB 200: "An Act 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 retail establishments, eating establishments, and establishments with liquor licenses; allowing municipalities to prohibit vendors from conducting gaming activities within the municipality; relating to reports by the commissioner regulating charitable gaming to the legislature; requiring registration of vendors; relating to multiple-beneficiary charitable gaming permits and door prizes for charitable gaming; 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 an activity, fund raiser or consultant of a licensee, 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; prohibiting a prize or award of more than $250,000 in a pull-tab game that provides a right to participate in a lottery; requiring a vendor contracting with a permittee to pay the permittee at least 50 percent of the ideal net for each pull-tab series delivered to the vendor by the permittee; and providing for an effective date."
00SENATE BILL NO. 200 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 retail establishments, eating establishments, 09 and establishments with liquor licenses; allowing municipalities to prohibit vendors 10 from conducting gaming activities within the municipality; relating to reports by 11 the commissioner regulating charitable gaming to the legislature; requiring 12 registration of vendors; relating to multiple-beneficiary charitable gaming permits 13 and door prizes for charitable gaming; preventing persons with felony convictions 14 or convictions for crimes involving theft or dishonesty or a violation of gambling
01 laws from being involved in charitable gaming activities as a permittee, licensee, 02 vendor, person responsible for an activity, fund raiser or consultant of a licensee, 03 or employee in a managerial or supervisory capacity and providing exceptions for 04 certain persons whose convictions are at least 10 years old and are not for 05 violation of an unclassified felony described in AS 11, a class A felony, or 06 extortion; prohibiting a prize or award of more than $250,000 in a pull-tab game 07 that provides a right to participate in a lottery; requiring a vendor contracting 08 with a permittee to pay the permittee at least 50 percent of the ideal net for 09 each pull-tab series delivered to the vendor by the permittee; and providing for 10 an effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. AS 05.15.060 is amended to read: 13 Sec. 05.15.060. REGULATIONS. The department shall adopt regulations 14 under the Administrative Procedure Act (AS 44.62) necessary to carry out this chapter 15 covering, but not limited to, 16 (1) the issuance, renewal, and revocation of permits, [AND] licenses, 17 and vendor registrations; 18 (2) a method of ascertaining net proceeds, the determination of items 19 of expense that may be incurred or paid, and the limitation of the amount of the items 20 of expense to prevent the proceeds from the activity permitted from being diverted to 21 noncharitable, noneducational, nonreligious, or profit-making organizations, individuals, 22 or groups; 23 (3) the immediate revocation of permits, [AND] licenses, and vendor 24 registrations authorized under this chapter if this chapter or regulations adopted under 25 it are violated; 26 (4) the requiring of detailed, sworn, financial reports of operations from 27 permittees and licensees including detailed statements of receipts and payments; 28 (5) the investigation of permittees, licensees, registered vendors, and 29 their employees, including the fingerprinting of those permittees, licensees, registered 30 vendors, and employees whom the commissioner considers it advisable to fingerprint; 31 (6) [EXCLUSION FROM PARTICIPATION AS A PERMITTEE,
01 LICENSEE, OR EMPLOYEE OF A PERMITTEE OR LICENSEE, OF A PERSON 02 CONVICTED OF, IN PRISON FOR, OR ON PAROLE FOR A FELONY WITHIN 03 THE PRECEDING FIVE YEARS, OR CONVICTED OF A CRIME INVOLVING 04 THEFT OR DISHONESTY OR OF A VIOLATION OF A MUNICIPAL, STATE, OR 05 FEDERAL GAMBLING LAW; 06 (7)] the method and manner of conducting authorized activities and 07 awarding of prizes or awards, and the equipment that may be used; 08 (7) [(8)] the number of activities that may be held, operated, or 09 conducted under a permit during a specified period; however, the department may not 10 allow more than 14 bingo sessions a month and 35 bingo games a session to be 11 conducted under a permit; the holders of a multiple-beneficiary permit under 12 AS 05.15.100(d) may hold, operate, or conduct the number of sessions and games 13 a month equal to the number allowed an individual permittee per month 14 multiplied by the number of holders of the multiple-beneficiary permit; 15 (8) [(9)] a method of accounting for receipts and disbursements by 16 operators, including the keeping of records and requirements for the deposit of all 17 receipts in a bank; 18 (9) [(10)] the disposition of funds in possession of a permittee, [OR] 19 a person, municipality, or qualified organization that possesses an operator's license, 20 or a registered vendor at the time a permit, [OR] a license, or a vendor registration 21 is surrendered, revoked, or invalidated; 22 (10) [(11)] restrictions on the participation by employees of the 23 Department of Fish and Game in salmon classics; and in king salmon classics, and by 24 employees of Douglas Island Pink and Chum in king salmon classics; 25 (11) [(12)] other matters the commissioner considers necessary to carry 26 out this chapter or protect the best interest of the public. 27 * Sec. 2. AS 05.15.070 is amended to read: 28 Sec. 05.15.070. EXAMINATION OF BOOKS AND RECORDS. The commis- 29 sioner may examine or have examined the books and records of a permittee, an 30 operator, a registered vendor, or a person licensed to manufacture or to distribute 31 pull-tab games in the state. The commissioner may issue subpoenas for the attendance
01 of witnesses and the production of books, records, and other documents. 02 * Sec. 3. AS 05.15.090 is amended to read: 03 Sec. 05.15.090. REPORTS TO THE LEGISLATURE. Before April 15 of each 04 year the commissioner shall submit a detailed report containing a (1) summary of all 05 reports required of permittees, vendors, and operators, and (2) review of all activities 06 conducted under AS 05.15.187(h). The attorney general and the commissioner of 07 public safety shall, within 10 days after the convening of the legislature each year, 08 submit a jointly prepared, detailed report outlining the effect, if any, of the operation 09 of this chapter on the legal and law enforcement activities of the state. 10 * Sec. 4. AS 05.15.090 is repealed and reenacted to read: 11 Sec. 05.15.090. REPORTS TO THE LEGISLATURE. Before April 15 of each 12 year the commissioner shall submit a detailed report containing a summary of all 13 reports required of permittees, vendors, and operators. The attorney general and the 14 commissioner of public safety shall, within 10 days after the convening of the 15 legislature each year, submit a jointly prepared, detailed report outlining the effect, if 16 any, of the operation of this chapter on the legal and law enforcement activities of the 17 state. 18 * Sec. 5. AS 05.15.100 is amended by adding a new subsection to read: 19 (d) The commissioner may issue a multiple-beneficiary permit to two to six 20 municipalities or qualified organizations or to a combination of two to six 21 municipalities and qualified organizations that apply jointly for the permit. The permit 22 gives the permit holders the privilege of jointly conducting the activities specified in 23 (a) and (b) of this section, subject to the restrictions set out in (b) of this section. 24 * Sec. 6. AS 05.15 is amended by adding a new section to read: 25 Sec. 05.15.105. PERSONS PROHIBITED FROM INVOLVEMENT; 26 EXCEPTIONS. (a) If a person has been convicted of a violation of a law of this state 27 that is, or a law or ordinance of another jurisdiction that would be if it had been 28 committed in this state, a felony, or a violation of a law or ordinance of this state or 29 another jurisdiction that is a crime involving theft or dishonesty or a violation of 30 gambling laws 31 (1) the department may not issue a license to the person;
01 (2) the department may not issue a license to, or register as a vendor, 02 an applicant who employs the person in a managerial or supervisory capacity or uses 03 the person as a fund raiser or consultant; 04 (3) the department may not issue a permit for an activity if the person 05 is responsible for the operation of the activity; 06 (4) the person may not be employed in a managerial or supervisory 07 capacity by a licensee or vendor or used as a fund raiser or consultant by a licensee 08 or vendor; 09 (5) the person may not participate in charitable gaming as a permittee, 10 licensee, or vendor. 11 (b) The department shall adopt regulations that provide that a disqualification 12 of a person under (a) of this section based upon a conviction of that person for a 13 violation 14 (1) of a law of this state that is, or a law or ordinance of another 15 jurisdiction that would be if it was committed in this state, a class B felony other than 16 extortion, a class C felony, or an unclassified felony described outside of AS 11, and 17 that is not a crime of dishonesty or theft or a violation of gambling laws, terminates 18 10 years after the person's conviction; 19 (2) of a law or ordinance of this state or another jurisdiction that is a 20 crime involving theft or dishonesty or a violation of gambling laws, and that is not, 21 or would not be if it was committed in this state, an unclassified felony described in 22 AS 11, a class A felony, or extortion, terminates 10 years after the person's conviction, 23 if the department determines that the 24 (A) person is of good character, honesty, and integrity; and 25 (B) person's involvement in charitable gaming is not against the 26 public interest. 27 * Sec. 7. AS 05.15.112(a) is amended to read: 28 (a) Each municipality or qualified organization that receives a permit under 29 this chapter shall designate a member in charge. Municipalities and qualified 30 organizations that hold a multiple-beneficiary permit shall jointly designate one 31 member in charge.
01 * Sec. 8. AS 05.15.112(b) is amended to read: 02 (b) The member in charge is responsible for preparation, maintenance, and 03 transmittal of all records and reports required of the permittee. The member in charge 04 shall be a member of the qualified organization or the board of directors of the 05 qualified organization or an employee of the municipality. In the case of a multiple-beneficiary permit, the 06 member in charge shall be a member of one of the 07 qualified organizations or the board of directors of one of the qualified 08 organizations or an employee of one of the municipalities. 09 * Sec. 9. AS 05.15.112(d) is amended to read: 10 (d) The municipality or qualified organization, or the holders of a multiple-beneficiary permit, shall 11 designate alternate members in charge who are responsible 12 for the duties of the member in charge in the absence of the member in charge. 13 * Sec. 10. AS 05.15.124 is amended to read: 14 Sec. 05.15.124. MUNICIPAL REGULATION OF OPERATORS. A 15 municipality may by ordinance prohibit an operator or a vendor from conducting 16 activities under this chapter within the municipality. 17 * Sec. 11. AS 05.15 is amended by adding a new section to read: 18 Sec. 05.15.145. MULTIPLE-BENEFICIARY PERMITS. (a) Two to six 19 municipalities or qualified organizations, or a combination of two to six municipalities 20 and qualified organizations, may jointly apply for a multiple-beneficiary permit under 21 AS 05.15.100(d). The commissioner may not issue or renew a permit except upon 22 satisfactory proof that each joint applicant is a municipality or qualified organization, 23 the activity may be permitted under this chapter, and the issuance of a permit is not 24 detrimental to the best interests of the public. Upon request of the commissioner, the 25 joint applicants shall prove conclusively each of these requirements before a permit 26 may be issued or renewed. 27 (b) The provisions of AS 05.15.140(b) - (d) apply to multiple-beneficiary 28 permits and applications for them. 29 (c) A municipality or qualified organization that is among the holders of a 30 multiple-beneficiary permit may withdraw from the permit by giving written notice of 31 intent to withdraw to the department and to the other holders of the permit. The
01 effective date of the withdrawal is 30 days after the department receives written notice 02 of intent. A municipality or qualified organization that withdraws from a multiple-beneficiary permit may apply for 03 a permit under AS 05.15.100(a), but its share of the 04 prizes awarded under the multiple-beneficiary permit and the prizes it awards under 05 its own permit are subject to the maximums established in AS 05.15.180(g). 06 (d) The holders of a multiple-beneficiary permit shall jointly file reports with 07 the department that comply with the reporting requirements imposed on operators 08 under AS 05.15.083. 09 * Sec. 12. AS 05.15.170 is repealed and reenacted to read: 10 Sec. 05.15.170. SUSPENSION OR REVOCATION OF PERMIT, LICENSE, 11 OR VENDOR REGISTRATION. (a) The department may suspend, for a period of 12 up to one year, or revoke a permit, license, or vendor registration, after giving notice 13 to and an opportunity to be heard by the permittee or licensee, if the permittee, 14 licensee, or vendor 15 (1) violates or fails to comply with a requirement of this chapter or of 16 a regulation adopted under this chapter; 17 (2) breaches a contractual agreement with a permittee, licensee, or 18 registered vendor; 19 (3) becomes disqualified to participate in charitable gaming as provided 20 in AS 05.15.105; for the purposes of this paragraph, a permittee, licensee, or vendor 21 that is not a natural person is considered convicted if an owner or manager of the 22 permittee, licensee, or vendor is convicted; or 23 (4) knowingly submits false information to the department or, in the 24 case of a registered vendor, to a permittee when the vendor knows that the false 25 information will be submitted to the department as part of an application for 26 registration; 27 (5) gives or acts upon any inside information on the status of the prizes 28 awarded or to be awarded in a pull-tab game. 29 (b) If the department revokes a license or vendor registration under this 30 section, it may prohibit the licensee or vendor from reapplying for a license or vendor 31 registration for a period of not more than five years. If the department revokes a
01 permit under this section, it may prohibit the permittee from reapplying for a permit 02 for a period of not more than one year. 03 * Sec. 13. AS 05.15.180(d) is amended to read: 04 (d) The total value of door prizes offered or awarded under authority of a 05 permit issued to a municipality or qualified organization under this chapter or under 06 authority of a multiple-beneficiary permit may not exceed $20,000 a month or 07 $240,000 a year. 08 * Sec. 14. AS 05.15.180(e) is amended to read: 09 (e) The total value of all door prizes offered or awarded at a single facility or 10 bingo hall or parlor by an operator on behalf of authorizing permittees [OR BY A 11 PERMITTEE IN CONJUNCTION WITH OTHER PERMITTEES] may not exceed 12 $20,000 a month or $240,000 a year. 13 * Sec. 15. AS 05.15.180(g) is amended to read: 14 (g) A municipality or a qualified organization may award a maximum of 15 $1,000,000 in prizes each year in activities authorized under this chapter; however, if 16 a municipality or a qualified organization contracts with an operator to conduct on its 17 behalf activities authorized under this chapter, the municipality or qualified 18 organization may award a maximum of $500,000 in prizes each year. The holders of 19 a multiple-beneficiary permit under AS 05.15.100(d) may award a maximum in 20 prizes each year of $1,000,000 times the number of holders of the permit for 21 activities authorized under this chapter. In this subsection "activities authorized 22 under this chapter" means all activities subject to this chapter other than bingo. 23 * Sec. 16. AS 05.15.183 is amended by adding a new subsection to read: 24 (e) A distributor may not 25 (1) take an order for the purchase of a pull-tab series from a vendor; 26 (2) sell a pull-tab series to a vendor; or 27 (3) deliver a pull-tab series to a vendor. 28 * Sec. 17. AS 05.15.187(f) is amended to read: 29 (f) Each permittee [MUNICIPALITY OR QUALIFIED ORGANIZATION] 30 that had gross receipts exceeding $100,000 during the preceding year from activities 31 conducted under this chapter or that is required to report under AS 05.15.080(a), that
01 conducts a pull-tab game shall maintain records for two years of each prize of $50 or 02 more, the first day and last day that each series was distributed, the serial number of 03 each series, and the distributor from whom each series was purchased. In this section 04 "permittee" includes municipalities and qualified organizations that jointly hold 05 a multiple-beneficiary permit. 06 * Sec. 18. AS 05.15.187(g) is amended to read: 07 (g) Notwithstanding other provisions of this chapter, a pull-tab game that 08 confers an additional right upon all or some of the purchasers of a pull-tab series to 09 participate in a lottery for additional prizes may not be conducted in the state unless 10 (1) a surety bond in the amount of $250,000 conditioned upon payment 11 of all prizes and awards when due is submitted to the department by the operator or 12 authorizing permittee and approved by the attorney general; and 13 (2) each prize or award under the pull-tab series or the lottery does 14 not exceed $250,000. 15 * Sec. 19. 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 20 (1) at the customary place of business of one or more of the 21 participating stations or networks; 22 (2) at another location if the sales are made by an employee of one of 23 the stations or networks; or 24 (3) by a registered vendor. 25 * Sec. 20. AS 05.15 is amended by adding a new section to article 2 to read: 26 Sec. 05.15.188. PULL-TAB SALES BY VENDORS ON BEHALF OF 27 PERMITTEES THAT ARE NONCOMMERCIAL BROADCASTING STATIONS OR 28 NETWORKS OF SUCH STATIONS; VENDOR REGISTRATION. (a) A permittee 29 that is a noncommercial broadcasting station or a network of such stations may 30 contract with a vendor to sell pull-tabs on behalf of the permittee, if the permittee first 31 registers the vendor with the department by applying for registration on a form pre-
01 scribed by the department and by submitting the registration fee of $50 for each 02 location at which the vendor will sell pull-tabs. 03 (b) Upon approval of the vendor registration, the department shall issue an 04 endorsement to the permittee's permit that authorizes the conduct of pull-tab sales at 05 that vendor location. 06 (c) The endorsement issued under (b) of this section is an extension of the 07 permittee's privilege under AS 05.15.100 to conduct pull-tab sales in this state. A 08 vendor may not sell a pull-tab series until a copy of the permit containing the 09 endorsement for the new vendor location has been posted by the permittee in the 10 registered vendor establishment. The endorsed permit must be clearly visible to the 11 gaming public. 12 (d) A separate endorsement shall be issued for each vendor location. The 13 permittee shall inform the department when a vendor with whom the permittee is 14 contracting changes the physical location at which pull-tabs are sold, and shall return 15 to the department all copies of a permit endorsed to a vendor that is no longer selling 16 pull-tabs on behalf of the permittee. Failure to inform the department of a change in 17 vendor location, or to return the endorsed copies of a permit to the department after 18 a vendor change, may constitute grounds for the suspension or revocation of a 19 permittee's permit. 20 (e) At the time that a permittee annually renews its permit, it shall also renew 21 the registration of all locations where a vendor is selling pull-tabs on the permittee's 22 behalf and shall pay a registration fee of $50 for each vendor location. 23 (f) A permittee that uses a vendor to sell pull-tabs on its behalf shall enter into 24 a written contract with that vendor. The department may inspect this contract. If the 25 contract contains provisions that violate this chapter or the regulations adopted under 26 it, the department may declare the contract void, and may suspend or revoke the 27 registration of the vendor and the permit of the permittee. 28 (g) A person, other than a permittee's member-in-charge, may not directly 29 supply a pull-tab series to a registered vendor for sale by that vendor on behalf of the 30 permittee. 31 (h) If a permittee contracts with a vendor under (a) of this section, the contract
01 must provide that the permittee shall receive no less than 50 percent of the ideal net. 02 (i) An amount equal to the ideal net less the compensation owed to the vendor 03 shall be paid by the vendor to the member-in-charge upon delivery of a pull-tab series 04 to the vendor for sale. The amount required to be paid by the vendor shall be paid by 05 check and the check may not be drawn in a manner that the payee is not identified. 06 (j) An operator may not contract with or use a vendor to sell pull-tabs. 07 * Sec. 21. AS 05.15.200(b) is amended to read: 08 (b) A person who, with the intent to mislead a public servant in the 09 performance of the public servant's duty, submits a false statement in an application 10 for a permit, license, or vendor registration under this chapter [,] is guilty of unsworn 11 falsification. 12 * Sec. 22. AS 05.15.210 is amended by adding new paragraphs to read: 13 (36) "ideal net" means an amount equal to the total amount of receipts 14 that would be received if every individual pull-tab ticket in a series were sold at face 15 value, less the prizes to be awarded for that series; 16 (37) "noncommercial broadcasting station" means a radio or television 17 station that is licensed by the Federal Communications Commission to a governmental 18 entity or to an entity that is exempt from federal taxation under 26 U.S.C. 501(c)(3) 19 (Internal Revenue Code); 20 (38) "vendor" means a business whose primary activity is not regulated 21 by this chapter but that is engaged in the sale of pull-tabs on behalf of a permittee, 22 holds a business license under AS 43.70, and is 23 (A) a retail establishment; 24 (B) an eating establishment; or 25 (C) an establishment licensed under AS 04.11. 26 * Sec. 23. AS 05.15.187(h) is repealed July 1, 1996. 27 * Sec. 24. Except for sec. 4 of this Act, this Act takes effect immediately under 28 AS 01.10.070(c). 29 * Sec. 25. Section 4 of this Act takes effect July 1, 1996.