SB 277: "An Act relating to charitable gaming and gaming on state ferries; and providing for an effective date."
00SENATE BILL NO. 277 01 "An Act relating to charitable gaming and gaming on state ferries; and providing 02 for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 05.15.070 is amended to read: 05 Sec. 05.15.070. EXAMINATION OF BOOKS AND RECORDS. The 06 department may examine or have examined the books and records of a permittee, an 07 operator, a registered vendor, or a person licensed to manufacture or to distribute video 08 lottery machines [PULL-TAB GAMES] in the state. The department may issue 09 subpoenas for the attendance of witnesses and the production of books, records, and 10 other documents. 11 * Sec. 2. AS 05.15.095(a) is amended to read: 12 (a) The applications and reports to the department required by this chapter 13 shall be signed under penalty of unsworn falsification by the following person, as 14 applicable:
01 (1) the member in charge for the qualified organization; 02 (2) a person authorized to sign on behalf of the municipality; 03 (3) the operator or the operator's agent; 04 (4) the licensed video lottery machine [PULL-TAB] distributor or the 05 distributor's agent; [OR] 06 (5) the licensed video lottery machine [PULL-TAB] manufacturer or 07 the manufacturer's agent; or 08 (6) the registered vendor or the vendor's agent. 09 * Sec. 3. AS 05.15.100(a) is amended to read: 10 (a) The department may issue a permit to a municipality or qualified 11 organization. The permit gives the municipality or qualified organization the privilege 12 of conducting bingo, raffles, [AND] lotteries, [PULL-TAB GAMES,] ice classics, rain 13 classics, goose classics, mercury classics, deep freeze classics, mushing sweepstakes, 14 canned salmon classics, salmon classics, king salmon classics, dog mushers' contests, 15 snow machine classics, fish derbies, and contests of skill. 16 * Sec. 4. AS 05.15.100 is amended by adding a new subsection to read: 17 (e) The department may issue a permit to a municipality or qualified 18 organization to conduct video lotteries through the use of video lottery machines by 19 registered vendors. 20 * Sec. 5. AS 05.15.115(c) is amended to read: 21 (c) A permittee may not contract with more than one operator at a time to 22 conduct the same type of activity. For the purposes of this subsection, bingo games, 23 raffles, lotteries, [PULL-TAB GAMES,] ice classics, rain classics, goose classics, 24 mercury classics, deep freeze classics, mushing sweepstakes, canned salmon classics, 25 salmon classics, king salmon classics, dog mushers' contests, snow machine classics, 26 fish derbies, and contests of skill are each a different type of activity. A permittee 27 may not contract with an operator to conduct video lotteries. 28 * Sec. 6. AS 05.15.128(a) is amended to read: 29 (a) The department shall revoke the license of an operator who does not 30 (1) report an adjusted gross income of at least 15 percent of gross 31 income annually based on the total operation of the operator; or
01 (2) pay to each authorizing permittee annually at least [30 PERCENT 02 OF THE ADJUSTED GROSS INCOME, AS DETERMINED UNDER (1) OF THIS 03 SUBSECTION, FROM A PULL-TAB ACTIVITY OR AT LEAST] 10 percent of the 04 adjusted gross income, as determined under (1) of this subsection, [FROM A 05 GAMING ACTIVITY OTHER THAN PULL-TABS,] received from activities 06 conducted on behalf of the authorizing permittee. 07 * Sec. 7. AS 05.15.150(a) is amended to read: 08 (a) The authority to conduct the activity authorized by this chapter is 09 contingent upon the dedication of the net proceeds of the charitable gaming activity 10 to the awarding of prizes to contestants or participants and to [POLITICAL,] 11 educational, civic, public, charitable, patriotic, or religious uses in the state. 12 "Educational [POLITICAL, EDUCATIONAL], civic, public, charitable, patriotic, or 13 religious uses" means uses benefiting persons either by bringing them under the 14 influence of education or religion or relieving them from disease, suffering, or 15 constraint, or by assisting them in establishing themselves in life, or by providing for 16 the promotion of the welfare and well-being of the membership of the organization 17 within their own community, [OR THROUGH AIDING CANDIDATES FOR PUBLIC 18 OFFICE OR GROUPS THAT SUPPORT CANDIDATES FOR PUBLIC OFFICE,] or 19 by erecting or maintaining public buildings or works, or lessening the burden on 20 government, but does not include 21 (1) the direct or indirect payment of any portion of the net proceeds of 22 a bingo or video lottery [PULL-TAB GAME] to a lobbyist registered under AS 24.45; 23 or 24 (2) the erection, acquisition, improvement, maintenance, or repair of 25 real, personal, or mixed property unless it is used exclusively for one or more of the 26 permitted uses. 27 * Sec. 8. AS 05.15.160(d) is amended to read: 28 (d) The total amount of authorized expenses that may be incurred under (a) of 29 this section in connection with any gaming activity other than video lotteries 30 [PULL-TABS] may not exceed 90 percent of the adjusted gross income from that 31 gaming activity.
01 * Sec. 9. AS 05.15.180(a) is amended to read: 02 (a) Except as provided in AS 05.15.300 - 05.15.360, this [THIS] chapter does 03 not authorize the use of playing cards, dice, roulette wheels, coin-operated instruments 04 or machines, or other objects or instruments used, designed, or intended primarily for 05 gaming or gambling or any other method or implement not expressly authorized by the 06 department. 07 * Sec. 10. AS 05.15.180(b) is amended to read: 08 (b) With the exception of raffles, lotteries, bingo games, video lotteries 09 [PULL-TAB GAMES], rain classics, goose classics, mercury classics, deep freeze 10 classics, snow machine classics, mushing sweepstakes, canned salmon classics, salmon 11 classics, king salmon classics, an activity may not be licensed under this chapter unless 12 it existed in the state in substantially the same form and was conducted in substantially 13 the same manner before January 1, 1959. A snow machine classic may not be licensed 14 under this chapter unless it has been in existence for at least five years before the 15 licensing. 16 * Sec. 11. AS 05.15.180(g) is amended to read: 17 (g) A municipality or a qualified organization may award a maximum of 18 $1,000,000 in prizes each year in activities authorized under this chapter; however, if 19 a municipality or a qualified organization contracts with an operator to conduct on its 20 behalf activities authorized under this chapter, the municipality or qualified 21 organization may award a maximum of $500,000 in prizes each year. The holders of 22 a multiple-beneficiary permit under AS 05.15.100(d) may award a maximum in prizes 23 each year of $1,000,000 times the number of holders of the permit for activities 24 authorized under this chapter. In this subsection, "activities authorized under this 25 chapter" means all activities subject to this chapter other than bingo and video 26 lotteries. 27 * Sec. 12. AS 05.15 is amended by adding new sections to read: 28 ARTICLE 2A. VIDEO LOTTERIES. 29 Sec. 05.15.300. VIDEO LOTTERY. (a) The department may issue a video 30 lottery endorsement to a permittee to conduct video lottery charitable gaming. The 31 endorsement provides the permittee with the authority to
01 (1) contract with a vendor to conduct video lottery charitable gaming 02 by use of video lottery machines; or 03 (2) if the permittee has a club license under AS 04.11.110, conduct 04 video lottery charitable gaming by use of video lottery machines. 05 (b) To obtain an video lottery endorsement under 06 (1) (a)(1) of this section, a permittee shall register the vendor with the 07 department by applying for registration on a form prescribed by the department and 08 by submitting a fee of $100 for each location at which the vendor will conduct video 09 lottery charitable gaming and a fee of $100 for each video lottery machine the 10 permittee will have at each location; 11 (2) (a)(2) of this section, the permittee shall submit proof of the club 12 license to the department and submit a fee of $100 for each licensed location and a fee 13 of $100 for each video lottery machine the permittee will operate at each location. 14 (c) The endorsement issued under (a) of this section is an extension of the 15 permittee's privilege to conduct charitable gaming in this state. In addition to the 16 endorsement, the department shall issue a machine permit for each video lottery 17 machine for which the permittee has paid the fee required under (b) of this section. 18 A permittee or registered vendor may not conduct video lottery charitable gaming until 19 a copy of the permit and the endorsement is posted by the permittee at the 20 establishment where the machine is located and the machine permit is posted on the 21 machine. The permit, endorsement, and each machine permit must be clearly visible 22 to the public. 23 (d) A separate endorsement shall be issued for each permittee or vendor 24 location. The permittee shall inform the department when the permittee, or a vendor 25 with whom the permittee is contracting, changes the physical location at which video 26 lottery charitable gaming is conducted and shall return to the department all copies of 27 a permit endorsed to a permittee, or a vendor, that is no longer conducting video 28 lottery charitable gaming. Failure to inform the department of a change in permittee 29 or vendor location, or to return the endorsed copies of a permit to the department after 30 a permittee or vendor change, constitutes grounds for the suspension or revocation of 31 a permittee's permit.
01 (e) At the time that a permittee annually renews its permit, the permittee shall 02 also renew the registration of all locations where the permittee or a vendor is 03 conducting video lottery charitable gaming and shall pay the fees required under (b) 04 of this section for each location and machine. 05 (f) A permittee that uses a vendor to conduct video lottery charitable gaming 06 on its behalf shall enter into a written contract with that vendor. The department may 07 inspect this contract. If the contract contains provisions that violate this chapter or the 08 regulations adopted under it, the department may declare the contract void, and may 09 suspend or revoke the registration of the vendor and the permit of the permittee. The 10 contract must contain provisions regarding the allocation of the costs of purchasing or 11 leasing the video lottery machines. 12 (g) Only video lottery machines approved by the department may be used for 13 video lottery charitable gaming. A permittee may purchase the machines directly from 14 a licensed video lottery machine distributor or may enter into a lease or lease-purchase 15 arrangement for the machines with the distributor. A lease or lease-purchase 16 arrangement must be approved by the department. 17 (h) If a permittee 18 (1) contracts with a vendor under (a)(1) of this section, the contract 19 must provide that the 20 (A) permittee shall receive 30 percent of the net machine 21 income; 22 (B) registered vendor shall receive 30 percent of the net 23 machine income; 24 (C) state shall receive 15 percent of the net machine income; 25 and 26 (D) municipality in which each machine is located, or the state 27 if the machine is located in the unorganized borough outside of municipalities, 28 shall receive 25 percent of the net machine income; 29 (2) conducts video lottery charitable gaming under (a)(2) of this 30 section, the permittee must remit the percentages of net machine income under (1) of 31 this subsection to the state and municipality, if any, at times set by the department by
01 regulation. 02 (i) The odds of winning each video lottery game shall be posted on or near 03 each video lottery machine. The manner in which the odds are calculated and how 04 they are posted shall be set by the department by regulation. 05 (j) A video lottery machine may 06 (1) not be played by a person under the age of 21; 07 (2) only be played during the legal hours of operation allowed by the 08 permittee's or vendor's license under AS 04.11 and applicable municipal ordinance; 09 (3) not be played if the machine permit is not posted on the machine. 10 (k) A permittee may not contract with more than five vendors under this 11 section. A vendor may not have more than 10 video lottery machines at each vendor 12 location. 13 (l) All video lottery machines shall be monitored by the vendor during 14 business hours. Monitoring shall be accomplished by the physical presence of an 15 employee of the vendor or by an employee using video cameras or mirrors and by 16 periodic personal inspections of the machines and the area in which the machines are 17 located. 18 (m) A permittee or a registered vendor may not advertise in any manner the 19 possession or availability of video lottery machines on their premises or under their 20 permit or registration. 21 (n) If the sale of alcoholic beverages has been prohibited within a municipality 22 under AS 04.11.490, the department may issue a video lottery endorsement to a 23 permittee within the municipality that provides the permittee with the authority to 24 conduct video lottery charitable gaming by use of video lottery machines in the manner 25 permittees with club licenses under AS 04.11.110 are authorized to conduct video 26 lottery charitable gaming if the video lottery charitable gaming is only conducted 27 within a location into which the access is restricted to persons 21 years of age or older. 28 Sec. 05.15.310. VIDEO LOTTERY MACHINES. The department may not 29 approve a video lottery machine unless the machine 30 (1) offers only games authorized by the department; 31 (2) does not have any means of manipulation that affect the random
01 probabilities of winning a game; 02 (3) is designed to accept coins or cash in the form of bills, to prevent 03 the obtaining of plays or credits without paying by stringing, slamming, drilling, or 04 other means of manipulation, and to suspend itself from operation until it is physically 05 reset if physically tampered with; 06 (4) has nonresettable meters housed in a readily accessible locked 07 machine area that keeps a permanent record of all money inserted into the machine, 08 all refunds of winnings made by the machine's printer, credits played for video lottery 09 games, and credits won by video lottery players; 10 (5) does not directly pay off winning players by means of coins, cash, 11 or tokens but is capable of printing a ticket voucher stating the value of the prize for 12 the player at the completion of each video lottery game, the time of day in a 24-hour 13 format showing hours and minutes, the date, the machine serial number, the sequential 14 number of the ticket vouchers, and an encrypted validation number from which the 15 validity of the prize may be determined; 16 (6) has accounting software that keeps an electronic record that includes 17 total money inserted into the machine, the value of winning tickets claimed by players, 18 the total video lottery credits awarded by a video lottery game, and the payback 19 percentages credited players of each video lottery game; 20 (7) is linked under a central communications system to provide auditing 21 program information as approved by the department; the communications system 22 approved by the department under this paragraph may not limit participation to only 23 one manufacturer of video lottery machines by either the cost of implementing the 24 necessary program modifications to communicate or the inability to communicate with 25 the central communications system; this paragraph does not require that a machine to 26 be approved must be on-line or otherwise in constant communication with a central 27 computer; 28 (8) does not allow more than $2 to be played on a game or award free 29 games or credits in excess of the value of $125 per credit value of $.25 played; 30 (9) has a total payoff of at least 80 percent of the value of one $.25 31 credit.
01 Sec. 05.15.320. VIDEO LOTTERY MACHINE MANUFACTURERS. (a) A 02 person may not manufacture video lottery machines or associated equipment in the 03 state, and may not sell or distribute a video lottery machine or associated equipment 04 that the person has manufactured outside of the state to persons in the state, unless the 05 person has received a video lottery manufacturer's license issued by the department. 06 (b) The department may issue a video lottery machine manufacturer's license 07 to a person who pays an annual fee of $5,000. 08 (c) A video lottery machine or associated equipment may not be manufactured, 09 sold, or distributed in the state unless it has been approved by the department. The 10 department shall examine prototypes of video lottery machines and associated 11 equipment that a licensed manufacturer wishes to manufacture, sell, or distribute in the 12 state. The manufacturer shall pay in advance the costs of the examination and 13 approval of a video lottery machine or associated equipment. The department may 14 contract with another state or person for the examination required under this 15 subsection. 16 (d) A video lottery machine manufacturer may distribute video lottery 17 machines and associated equipment only to a licensed video lottery machine distributor 18 unless the video lottery machine manufacturer is also a licensed video lottery machine 19 distributor. 20 (e) A video lottery machine manufacturer shall report to the department by the 21 last business day of the month on each machine or associated equipment sold or 22 distributed within the state during the preceding month, including the serial number of 23 each machine or associated equipment distributed and the name of the distributor to 24 whom the machine or associated equipment was sold or distributed. 25 Sec. 05.15.330. VIDEO LOTTERY MACHINE DISTRIBUTORS. (a) A 26 person may not distribute video lottery machines or associated equipment unless the 27 person has received a video lottery machine distributor's license issued by the 28 department. 29 (b) The department may issue a video lottery machine distributor's license to 30 a person who pays an annual fee of $5,000. 31 (c) Video lottery machines and associated equipment may be distributed only
01 from a location in the state. A person may not distribute video lottery machines or 02 associated equipment directly to another person in the state from a location outside of 03 this state. 04 (d) A video lottery distributor shall report to the department by the last 05 business day of each month on each video lottery machine and associated equipment 06 distributed in the preceding month. The report must include the name of the permittee 07 to whom each video lottery machine or associated equipment is distributed and the 08 serial number of each machine. 09 (e) A distributor may not 10 (1) take an order for the purchase of a video lottery machine or 11 associated equipment from a vendor; or 12 (2) sell a video lottery machine or associated equipment to a vendor. 13 Sec. 05.15.340. DISTRIBUTION OF NET INCOME FROM VIDEO 14 LOTTERY CHARITABLE GAMING. The department shall immediately revoke the 15 video lottery endorsement of a permittee or vendor that fails to pay the following 16 percentages of net machine income from each video lottery machine at the times 17 directed by the department: 18 (1) 30 percent to the vendor; 19 (2) 30 percent to the permittee; 20 (3) 15 percent to the state; 21 (4) 25 percent to the municipality in which the machine is located, or 22 to the state if the machine is located in the unorganized borough outside of 23 municipalities. 24 Sec. 05.15.350. VIDEO LOTTERY REVENUES MAY BE APPROPRIATED 25 FOR EDUCATION. The state's percentage of video lottery charitable adjusted gross 26 income received under AS 05.15.340 shall be deposited in the general fund. The 27 annual estimated balance in the account maintained under AS 37.05.142 for money 28 received under AS 05.15.340 may be appropriated by the legislature to provide for 29 education. Nothing in this section creates a dedicated fund. 30 Sec. 05.15.360. DEPARTMENT TO CONTRACT. The department, to the 31 maximum extent practicable, shall solicit bids and contract for the performance of
01 duties required to monitor and conduct video lottery charitable gaming when the 02 contracting will not jeopardize the integrity of the gaming and enforcement of the laws 03 of the state. 04 * Sec. 13. AS 05.15.620(b) is amended to read: 05 (b) The following question, appearing alone, may be placed before the voters 06 of a municipality or an established village in accordance with AS 05.15.625: "Shall 07 video lotteries [PULL-TAB SALES] in ................. (name of municipality or village) 08 be prohibited? (yes or no)." 09 * Sec. 14. AS 05.15.620(c) is amended to read: 10 (c) If a majority of the voters vote "yes" on the question set out in (a) or (b) 11 of this section, the department shall be notified immediately after certification of the 12 results of the election and thereafter the department may not issue a license, permit, 13 or vendor registration authorizing charitable gaming or video lotteries [PULL-TAB 14 SALES], as appropriate, within the boundaries of a municipality and in unincorporated 15 areas within five miles of the boundaries of the municipality or within the perimeter 16 of an established village. As necessary to implement the results of an election under 17 (a) or (b) of this section, existing licenses, permits, and vendor registrations for 18 charitable gaming or video lotteries [PULL-TAB SALES] within the boundaries of a 19 municipality and in unincorporated areas within five miles of the boundaries of the 20 municipality or within the perimeter of an established village are void 90 days after 21 the results of the election are certified. A license or vendor registration that will 22 expire during the 90 days after the results of a local option election under this section 23 are certified is void as of the expiration date. 24 * Sec. 15. AS 05.15.680(a) is amended to read: 25 (a) Except as provided in (c) of this section, a [A] person who knowingly 26 violates or aids or solicits a person to violate this chapter is guilty of a violation for 27 the first offense and a class B misdemeanor for the second and each subsequent 28 offense. 29 * Sec. 16. AS 05.15.680 is amended by adding new subsections to read: 30 (c) A person 31 (1) may not, with criminal negligence as that term is defined in
01 AS 11.81.900, allow a person under 21 years of age to use a video lottery machine; 02 (2) who is under the age of 21, may not use a video lottery machine; 03 (3) may not manipulate or attempt to manipulate the outcome or payoff 04 of a video lottery machine by tampering or otherwise interfering with the proper 05 functioning of the machine. 06 (d) Violation of (c) of this section is a class A misdemeanor. 07 * Sec. 17. AS 05.15.690(36) is amended to read: 08 (36) "qualified organization" means a bona fide civic or service 09 organization or a bona fide religious, charitable, fraternal, veterans, [LABOR, 10 POLITICAL,] or educational organization, police or fire department and company, dog 11 mushers' association, outboard motor association, or fishing derby or nonprofit trade 12 association in the state, that operates without profits to its members and that has been 13 in existence continually for a period of three years immediately before applying for a 14 license; the organization may be a firm, corporation, company, association, or 15 partnership; 16 * Sec. 18. AS 05.15.690(43) is amended to read: 17 (43) "vendor" means a business whose primary activity is not regulated 18 by this chapter but that 19 (A) conducts video lotteries [IS ENGAGED IN THE SALE 20 OF PULL-TABS] on behalf of a permittee; 21 (B) holds a business license under AS 43.70; and 22 (C) is an establishment holding a 23 (i) beverage dispensary license under AS 04.11.090 that 24 has not been designated by the Alcoholic Beverage Control Board under 25 AS 04.16.049(a)(2) - (3), has not been exempted by the Department of 26 Labor under AS 04.16.049(c) and AS 23.10.355, and, if the 27 establishment is a hotel, motel, resort, or similar business that caters to 28 the traveling public as a substantial part of its business, does not 29 conduct the video lotteries [ALLOW THE SALE OF PULL-TABS] 30 in a dining room, banquet room, guest room, or other public areas other 31 than a room in which there is regularly maintained a fixed counter or
01 service bar at which alcoholic beverages are sold or served to members 02 of the public for consumption; 03 (ii) package store license under AS 04.11.150; 04 * Sec. 19. AS 05.15.690 is amended by adding new paragraphs to read: 05 (45) "net machine income" means money put into a video lottery 06 machine minus credits paid out in cash; 07 (46) "video lottery machine" means an electronic video game machine 08 that upon insertion of coin or cash is able to play or simulate the play of a video 09 game, including video poker, keno, or blackjack, authorized by the department using 10 a video display and microprocessors in which, by chance, the player may receive free 11 games or credits that can be redeemed for cash. 12 * Sec. 20. AS 11.66.280(2) is amended to read: 13 (2) "gambling" means that a person stakes or risks something of value 14 upon the outcome of a contest of chance or a future contingent event not under the 15 person's control or influence, upon an agreement or understanding that that person or 16 someone else will receive something of value in the event of a certain outcome; 17 "gambling" does not include 18 (A) bona fide business transactions valid under the law of 19 contracts for the purchase or sale at a future date of securities or commodities 20 and agreements to compensate for loss caused by the happening of chance, 21 including contracts of indemnity or guaranty and life, health, or accident 22 insurance; or 23 (B) playing an amusement device that 24 (i) confers only an immediate right of replay not 25 exchangeable for something of value other than the privilege of 26 immediate replay; and 27 (ii) does not contain a method or device by which the 28 privilege of immediate replay may be canceled or revoked; 29 (C) an activity authorized by the Department of Revenue under 30 AS 05.15 or AS 19.65.030; 31 * Sec. 21. AS 11.66.280(3) is amended to read:
01 (3) "gambling device" means any device, machine, paraphernalia, or 02 equipment that is used or usable in the playing phases of unlawful gambling, whether 03 it consists of gambling between persons or gambling by a person involving the playing 04 of a machine; "gambling device" does not include 05 (A) lottery tickets, policy slips, or other items used in the 06 playing phases of lottery or policy schemes; [OR] 07 (B) an amusement device as described in (2)(B) of this section; 08 or 09 (C) a video lottery machine permitted by the commissioner 10 of revenue under AS 05.15 or AS 19.65.030; 11 * Sec. 22. AS 11.66.280(4) is amended to read: 12 (4) "gambling enterprise" means a gambling business that 13 (A) includes five or more persons who conduct, finance, 14 manage, supervise, direct, or own all or part of the business; 15 (B) has been or remains in substantially continuous operation 16 for a period in excess of 30 days or has a gross income of $2,000 or more in 17 any single day; and 18 (C) is not a 19 (i) vessel of the Alaska marine highway system or the 20 Department of Transportation and Public Facilities when they are 21 lawfully conducting an activity licensed under AS 19.65.030; or 22 (ii) municipality or a qualified organization under 23 AS 05.15.690, except that, for purposes of this paragraph, no 24 application for a license under AS 05.15 is required to be considered a 25 qualified organization; 26 * Sec. 23. AS 19.65 is amended by adding new sections to article 1 to read: 27 Sec. 19.65.030. VIDEO LOTTERY MACHINES AUTHORIZED. (a) The 28 Department of Revenue may license a vessel of the Alaska marine highway system to 29 operate video lottery machines in a portion of the vessel that persons under 21 years 30 of age are prohibited from entering. 31 (b) A license issued under (a) of this section is not valid when the vessel is
01 in a jurisdiction outside of the state unless that jurisdiction also allows the licensed 02 activity. 03 (c) The Department of Transportation and Public Facilities shall operate video 04 lottery machines aboard a vessel of the Alaska marine highway system licensed under 05 (a) of this section or may contract for their operation under AS 36.30. 06 (d) The commissioner of revenue shall adopt regulations under AS 44.62 07 (Administrative Procedure Act) to implement this section. Those regulations must be 08 consistent, to the extent practicable, with statutes or regulations governing video 09 lotteries and video lottery machines under AS 05.15. 10 Sec. 19.65.035. PROHIBITIONS ON VIDEO LOTTERY MACHINE 11 OPERATION; PENALTIES. (a) An employee of the Alaska marine highway system 12 or of a contractor under AS 19.65.030(c) may not with criminal negligence allow a 13 person under 21 years of age to use a video lottery machine authorized under 14 AS 19.65.030. A person under 21 years of age may not use a video lottery machine 15 authorized under AS 19.65.030. In this subsection, "criminal negligence" has the 16 meaning given in AS 11.81.900. 17 (b) A person may not manipulate or attempt to manipulate the outcome or 18 payoff of a video lottery machine authorized under AS 19.65.030 by tampering or 19 otherwise interfering with the proper functioning of the machine. 20 (c) Violation of this section is a class A misdemeanor. 21 Sec. 19.65.040. REVENUES TO GENERAL FUND; APPROPRIATION FOR 22 ALASKA MARINE HIGHWAY SYSTEM. Revenues from video lottery machines, 23 less prizes awarded, shall be deposited in the general fund. The legislature may 24 appropriate the annual estimated balance in the account maintained under 25 AS 37.05.142 for revenues deposited under this section for the Alaska marine highway 26 system. Nothing in this section creates a dedicated fund. 27 Sec. 19.65.045. DEFINITION FOR AS 19.65.030 - 19.65.045. In 28 AS 19.65.030 - 19.65.045, "video lottery machine" has the meaning given in 29 AS 05.15.690. 30 * Sec. 24. Section 2, ch. 13, SLA 1995, is repealed and reenacted to read: 31 Sec. 2. AS 05.15.100(a) is repealed and reenacted to read:
01 (a) The department may issue a permit to a municipality or qualified 02 organization. The permit gives the municipality or qualified organization the privilege 03 of conducting bingo, raffles and lotteries, ice classics, rain classics, goose classics, 04 mercury classics, deep freeze classics, canned salmon classics, salmon classics, king 05 salmon classics, dog mushers' contests, snow machine classics, fish derbies, and 06 contests of skill. 07 * Sec. 25. Section 4, ch. 13, SLA 1995, is repealed and reenacted to read: 08 Sec. 4. AS 05.15.115(c) is repealed and reenacted to read: 09 (c) A permittee may not contract with more than one operator at a time to 10 conduct the same type of activity. For the purposes of this subsection, bingo games, 11 raffles, lotteries, ice classics, rain classics, goose classics, mercury classics, canned 12 salmon classics, salmon classics, king salmon classics, deep freeze classics, dog 13 mushers' contests, snow machine classics, fish derbies, contests of skill, and all 14 activities permitted under AS 05.15.100(b) are each a different type of activity. A 15 permittee may not contract with an operator to conduct video lotteries. 16 * Sec. 26. Section 6, ch. 13, SLA 1995, is repealed and reenacted to read: 17 Sec. 6. AS 05.15.180(b) is repealed and reenacted to read: 18 (b) With the exception of raffles, lotteries, bingo games, rain classics, goose 19 classics, mercury classics, deep freeze classics, snow machine classics, canned salmon 20 classics, salmon classics, king salmon classics, and other activities authorized under 21 AS 05.15.100(b), an activity may not be licensed under this chapter unless it existed 22 in the state in substantially the same form and was conducted in substantially the same 23 manner before January 1, 1959. 24 * Sec. 27. AS 05.15.060(b), 05.15.160(c), 05.15.170(a)(5), 05.15.181, 05.15.183, 05.15.184, 25 05.15.185, 05.15.187, 05.15.188, 05.15.690(23), 05.15.690(25), 05.15.690(34), 05.15.690(35), 26 and 05.15.690(41) are repealed. 27 * Sec. 28. Notwithstanding the effective date of secs. 1 - 27 of this Act, the Department 28 of Revenue shall begin the process under AS 44.62 of adopting regulations to implement this 29 Act so that the regulations can take effect January 1, 1997, or as soon thereafter as is possible. 30 * Sec. 29. Except for sec. 28 of this Act, this Act takes effect January 1, 1997. 31 * Sec. 30. Section 28 of this Act takes effect immediately under AS 01.10.070(c).