CSSB 199(JUD): "An Act relating to charitable gaming and to gaming on state ferries; and providing for an effective date."
00CS FOR SENATE BILL NO. 199(JUD) 01 "An Act relating to charitable gaming and to gaming on state ferries; and 02 providing 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 department may 06 examine or have examined the books and records of a permittee, an operator, a 07 registered vendor, or a person licensed to manufacture or to distribute video lottery 08 machines [PULL-TAB GAMES] in the state. The department may issue subpoenas 09 for the attendance of witnesses and the production of books, records, and other 10 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, race 13 classics, rain classics, goose classics, mercury classics, deep freeze classics, mushing 14 sweepstakes, canned salmon classics, salmon classics, king salmon classics, dog 15 mushers' contests, 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, race classics, rain classics, goose 24 classics, mercury classics, deep freeze classics, mushing sweepstakes, canned salmon 25 classics, salmon classics, king salmon classics, dog mushers' contests, snow machine 26 classics, fish derbies, and contests of skill are each a different type of activity. A 27 permittee 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 contingent 09 upon the dedication of the net proceeds and the permittee's share of net machine 10 income of a [THE] charitable gaming activity to the awarding of prizes to contestants 11 or participants and to [POLITICAL,] educational, civic, public, charitable, patriotic, or 12 religious uses in the state. " Educational [POLITICAL, EDUCATIONAL], civic, public, 13 charitable, patriotic, or religious uses" means uses benefiting persons either by bringing 14 them under the influence of education or religion or relieving them from disease, 15 suffering, or constraint, or by assisting them in establishing themselves in life, or by 16 providing for the promotion of the welfare and well-being of the membership of the 17 organization within their own community, [OR THROUGH AIDING CANDIDATES 18 FOR PUBLIC OFFICE OR GROUPS THAT SUPPORT CANDIDATES FOR PUBLIC 19 OFFICE,] or by erecting or maintaining public buildings or works, or lessening the 20 burden on government, but does not include 21 (1) the direct or indirect payment of any portion of the net proceeds of 22 a bingo game or the permittee's share of the net machine income of a video lottery 23 [PULL-TAB GAME] to a lobbyist registered under AS 24.45; 24 (2) the erection, acquisition, improvement, maintenance, or repair of real, 25 personal, or mixed property unless it is used exclusively for one or more of the permitted 26 uses; or 27 (3) the direct or indirect payment of any portion of the net proceeds or 28 a permittee's share of a net machine income of a charitable gaming activity, except 29 the proceeds of a raffle and lottery, 30 (A) to aid candidates for public office or groups that support or 31 oppose candidates for public office;
01 (B) to a political party or to an organization affiliated with a 02 political party; or 03 (C) to a group, as that term is defined in AS 15.13.400, or a 04 political group, as that term is defined in AS 15.60, that seeks to influence the 05 outcome of an election. 06 * Sec. 8. AS 05.15.160(d) is amended to read: 07 (d) The total amount of authorized expenses that may be incurred under (a) of 08 this section in connection with any gaming activity other than video lotteries [PULL- 09 TABS] may not exceed 90 percent of the adjusted gross income from that gaming activity. 10 * Sec. 9. AS 05.15.180(a) is amended to read: 11 (a) Except as provided in AS 05.15.300 - 05.15.360, this [THIS] chapter does 12 not authorize the use of playing cards, dice, roulette wheels, coin-operated instruments 13 or machines, or other objects or instruments used, designed, or intended primarily for 14 gaming or gambling or any other method or implement not expressly authorized by the 15 department. 16 * Sec. 10. AS 05.15.180(b) is amended to read: 17 (b) With the exception of raffles, lotteries, bingo games, video lotteries [PULL- 18 TAB GAMES], race classics, rain classics, goose classics, mercury classics, deep freeze classics, 19 snow machine classics, mushing sweepstakes, canned salmon classics, salmon classics, and king 20 salmon classics, an activity may not be licensed under this chapter unless it existed in the state 21 in substantially the same form and was conducted in substantially the same manner before 22 January 1, 1959. A snow machine classic may not be licensed under this chapter unless it has 23 been in existence for at least five years before the licensing. 24 * Sec. 11. AS 05.15.180(g) is amended to read: 25 (g) A municipality or a qualified organization may award a maximum of 26 $1,000,000 in prizes each year in activities authorized under this chapter; however, if a 27 municipality or a qualified organization contracts with an operator to conduct on its 28 behalf activities authorized under this chapter, the municipality or qualified organization 29 may award a maximum of $500,000 in prizes each year. The holders of a 30 multiple-beneficiary permit under AS 05.15.100(d) may award a maximum in prizes each 31 year of $1,000,000 times the number of holders of the permit for activities authorized
01 under this chapter. In this subsection , "activities authorized under this chapter" means 02 all activities subject to this chapter other than bingo and video lotteries . 03 * Sec. 12. AS 05.15 is amended by adding new sections to read: 04 Article 2A. Video Lotteries. 05 Sec. 05.15.300. Video lottery. (a) The department may issue a video lottery 06 endorsement to a permittee to conduct video lottery charitable gaming. The endorsement 07 provides the permittee with the authority to 08 (1) contract with a vendor to conduct video lottery charitable gaming by 09 use of video lottery machines; or 10 (2) if the permittee has a club license under AS 04.11.110, conduct video 11 lottery charitable gaming by use of video lottery machines. 12 (b) To obtain a video lottery endorsement under 13 (1) (a)(1) of this section, a permittee shall register the vendor with the 14 department by applying for registration on a form prescribed by the department and by 15 submitting a fee of $100 for each location at which the vendor will conduct video lottery 16 charitable gaming and a fee of $100 for each video lottery machine the permittee will 17 have at each location; 18 (2) (a)(2) of this section, the permittee shall submit proof of the club 19 license to the department and submit a fee of $100 for each licensed location and a fee 20 of $100 for each video lottery machine the permittee will operate at each location. 21 (c) The endorsement issued under (a) of this section is an extension of the 22 permittee's privilege to conduct charitable gaming in this state. In addition to the 23 endorsement, the department shall issue a machine permit for each video lottery machine 24 for which the permittee has paid the fee required under (b) of this section. A permittee 25 or registered vendor may not conduct video lottery charitable gaming until a copy of the 26 permit and the endorsement is posted by the permittee at the establishment where the 27 machine is located and the machine permit is posted on the machine. The permit, 28 endorsement, and each machine permit must be clearly visible to the public. 29 (d) A separate endorsement shall be issued for each permittee or vendor location. 30 The permittee shall inform the department when the permittee, or a vendor with whom 31 the permittee is contracting, changes the physical location at which video lottery
01 charitable gaming is conducted and shall return to the department all copies of a permit 02 endorsed to a permittee, or a vendor, that is no longer conducting video lottery charitable 03 gaming. Failure to inform the department of a change in permittee or vendor location, 04 or to return the endorsed copies of a permit to the department after a permittee or vendor 05 change, constitutes grounds for the suspension or revocation of a permittee's permit. 06 (e) At the time that a permittee annually renews its permit, the permittee shall 07 also renew the registration of all locations where the permittee or a vendor is conducting 08 video lottery charitable gaming and shall pay the fees required under (b) of this section 09 for each location and machine. 10 (f) A permittee that uses a vendor to conduct video lottery charitable gaming on 11 its behalf shall enter into a written contract with that vendor. The department may 12 inspect this contract. If the contract contains provisions that violate this chapter or the 13 regulations adopted under it, the department may declare the contract void, and may 14 suspend or revoke the registration of the vendor and the permit of the permittee. The 15 contract must contain provisions regarding the allocation of the costs of purchasing or 16 leasing the video lottery machines. 17 (g) Only video lottery machines approved by the department may be used for 18 video lottery charitable gaming. A permittee may purchase the machines directly from 19 a licensed video lottery machine distributor or may enter into a lease or lease-purchase 20 arrangement for the machines with the distributor. A lease or lease-purchase 21 arrangement must be approved by the department. 22 (h) If a permittee 23 (1) contracts with a vendor under (a)(1) of this section, the contract must 24 provide that the 25 (A) permittee shall receive 30 percent of the net machine income; 26 (B) registered vendor shall receive 30 percent of the net machine 27 income; 28 (C) state shall receive 15 percent of the net machine income; and 29 (D) municipality in which each machine is located, or the state 30 if the machine is located in the unorganized borough outside of municipalities, 31 shall receive 25 percent of the net machine income;
01 (2) conducts video lottery charitable gaming under (a)(2) of this section, 02 the permittee must remit the percentages of net machine income under (1) of this 03 subsection to the state and municipality, if any, at times set by the department by 04 regulation. 05 (i) The odds of winning each video lottery game shall be posted on or near each 06 video lottery machine. The manner in which the odds are calculated and how they are 07 posted shall be set by the department by regulation. 08 (j) A video lottery machine may 09 (1) not be played by a person under the age of 21; 10 (2) only be played during the legal hours of operation allowed by the 11 permittee's or vendor's license under AS 04.11 and applicable municipal ordinance; 12 (3) not be played if the machine permit is not posted on the machine. 13 (k) A permittee may not contract with more than five vendors under this section. 14 A vendor may not have more than 10 video lottery machines at each vendor location. 15 (l) All video lottery machines shall be monitored by the vendor during business 16 hours. Monitoring shall be accomplished by the physical presence of an employee of the 17 vendor or by an employee using video cameras or mirrors and by periodic personal 18 inspections of the machines and the area in which the machines are located. 19 (m) A permittee or a registered vendor may not advertise in any manner the 20 possession or availability of video lottery machines on their premises or under their 21 permit or registration. 22 (n) If the sale of alcoholic beverages has been prohibited within a municipality 23 under AS 04.11.491, the department may issue a video lottery endorsement to a permittee 24 within the municipality that provides the permittee with the authority to conduct video 25 lottery charitable gaming by use of video lottery machines in the manner permittees with 26 club licenses under AS 04.11.110 are authorized to conduct video lottery charitable 27 gaming if the video lottery charitable gaming is only conducted within a location into 28 which the access is restricted to persons 21 years of age or older. 29 Sec. 05.15.310. Video lottery machines. The department may not approve a 30 video lottery machine unless the machine 31 (1) offers only games authorized by the department;
01 (2) does not have any means of manipulation that affect the random 02 probabilities of winning a game; 03 (3) is designed to accept coins or cash in the form of bills, to prevent the 04 obtaining of plays or credits without paying by stringing, slamming, drilling, or other 05 means of manipulation, and to suspend itself from operation until it is physically reset 06 if physically tampered with; 07 (4) has nonresettable meters housed in a readily accessible locked 08 machine area that keep a permanent record of all money inserted into the machine, all 09 refunds of winnings made by the machine's printer, credits played for video lottery 10 games, and credits won by video lottery players; 11 (5) does not directly pay off winning players by means of coins, cash, 12 or tokens but is capable of printing a ticket voucher stating the value of the prize for the 13 player at the completion of each video lottery game, the time of day in a 24-hour format 14 showing hours and minutes, the date, the machine serial number, the sequential number 15 of the ticket vouchers, and an encrypted validation number from which the validity of 16 the prize may be determined; 17 (6) has accounting software that keeps an electronic record that includes 18 total money inserted into the machine, the value of winning tickets claimed by players, 19 the total video lottery credits awarded by a video lottery game, and the payback 20 percentages credited players of each video lottery game; 21 (7) is linked under a central communications system to provide auditing 22 program information as approved by the department; the communications system 23 approved by the department under this paragraph may not limit participation to only one 24 manufacturer of video lottery machines by either the cost of implementing the necessary 25 program modifications to communicate or the inability to communicate with the central 26 communications system; this paragraph does not require that a machine to be approved 27 must be on-line or otherwise in constant communication with a central 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; and 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 person may not 02 manufacture video lottery machines or associated equipment in the state, and may not 03 sell or distribute a video lottery machine or associated equipment that the person has 04 manufactured outside of the state to persons in the state, unless the person has received 05 a video lottery manufacturer's license issued by the department. 06 (b) The department may issue a video lottery machine manufacturer's license to 07 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 equipment 11 that a licensed manufacturer wishes to manufacture, sell, or distribute in the state. The 12 manufacturer shall pay in advance the costs of the examination and approval of a video 13 lottery machine or associated equipment. The department may contract with another 14 state or person for the examination required under this subsection. 15 (d) A video lottery machine manufacturer may distribute video lottery machines 16 and associated equipment only to a licensed video lottery machine distributor unless the 17 video lottery machine manufacturer is also a licensed video lottery machine distributor. 18 (e) A video lottery machine manufacturer shall report to the department by the 19 last business day of the month on each machine or associated equipment sold or 20 distributed within the state during the preceding month, including the serial number of 21 each machine or associated equipment distributed and the name of the distributor to 22 whom the machine or associated equipment was sold or distributed. 23 Sec. 05.15.330. Video lottery machine distributors. (a) A person may not 24 distribute video lottery machines or associated equipment unless the person has received 25 a video lottery machine distributor's license issued by the department. 26 (b) The department may issue a video lottery machine distributor's license to a 27 person who pays an annual fee of $5,000. 28 (c) Video lottery machines and associated equipment may be distributed only 29 from a location in the state. A person may not distribute video lottery machines or 30 associated equipment directly to another person in the state from a location outside of 31 this state.
01 (d) A video lottery distributor shall report to the department by the last business 02 day of each month on each video lottery machine and associated equipment distributed 03 in the preceding month. The report must include the name of the permittee to whom 04 each video lottery machine or associated equipment is distributed and the serial number 05 of each machine. 06 (e) A distributor may not 07 (1) take an order for the purchase of a video lottery machine or 08 associated equipment from a vendor; or 09 (2) sell a video lottery machine or associated equipment to a vendor. 10 Sec. 05.15.340. Distribution of net income from video lottery charitable 11 gaming. The department shall immediately revoke the video lottery endorsement of a 12 permittee or vendor that fails to pay the following percentages of net machine income 13 from each video lottery machine at the times directed by the department: 14 (1) 30 percent to the vendor; 15 (2) 30 percent to the permittee; 16 (3) 15 percent to the state; and 17 (4) 25 percent to the municipality in which the machine is located, or to 18 the state if the machine is located in the unorganized borough outside of municipalities. 19 Sec. 05.15.350. Video lottery revenues may be appropriated for education. 20 The state's percentage of video lottery net machine income received under AS 05.15.340 21 shall be deposited in the general fund. The annual estimated balance in the account 22 maintained under AS 37.05.142 for money received under AS 05.15.340 may be 23 appropriated by the legislature to provide for education. Nothing in this section creates 24 a dedicated fund. 25 Sec. 05.15.360. Department to contract. The department, to the maximum 26 extent practicable, shall solicit bids and contract for the performance of duties required 27 to monitor and conduct video lottery charitable gaming when the contracting will not 28 jeopardize the integrity of the gaming and enforcement of the laws of the state. 29 * Sec. 13. AS 05.15.620(b) is amended to read: 30 (b) The following question, appearing alone, may be placed before the voters of 31 a municipality or an established village in accordance with AS 05.15.625: "Shall video
01 lotteries [PULL-TAB SALES] in ................. (name of municipality or village) be 02 prohibited? (yes or no)." 03 * Sec. 14. AS 05.15.620(c) is amended to read: 04 (c) If a majority of the voters vote "yes" on the question set out in (a) or (b) of 05 this section, the department shall be notified immediately after certification of the results 06 of the election and thereafter the department may not issue a license, permit, or vendor 07 registration authorizing charitable gaming or video lotteries [PULL-TAB SALES], as 08 appropriate, within the boundaries of a municipality and in unincorporated areas within 09 five miles of the boundaries of the municipality or within the perimeter of an established 10 village. As necessary to implement the results of an election under (a) or (b) of this 11 section, existing licenses, permits, and vendor registrations for charitable gaming or video 12 lotteries [PULL-TAB SALES] within the boundaries of a municipality and in 13 unincorporated areas within five miles of the boundaries of the municipality or within 14 the perimeter of an established village are void 90 days after the results of the election 15 are certified. A license or vendor registration that will expire during the 90 days after 16 the results of a local option election under this section are certified is void as of the 17 expiration date. 18 * Sec. 15. AS 05.15.680(a) is amended to read: 19 (a) Except as provided in (c) of this section, a [A] person who knowingly 20 violates or aids or solicits a person to violate this chapter is guilty of a violation for 21 the first offense and a class B misdemeanor for the second and each subsequent 22 offense. 23 * Sec. 16. AS 05.15.680 is amended by adding new subsections to read: 24 (c) A person 25 (1) may not, with criminal negligence as that term is defined in 26 AS 11.81.900, allow a person under 21 years of age to use a video lottery machine; 27 (2) who is under the age of 21 may not use a video lottery machine; 28 (3) may not manipulate or attempt to manipulate the outcome or payoff 29 of a video lottery machine by tampering or otherwise interfering with the proper 30 functioning of the machine. 31 (d) Violation of (c) of this section is a class A misdemeanor.
01 * Sec. 17. AS 05.15.690(36) is amended to read: 02 (36) "qualified organization" means a bona fide civic or service 03 organization or a bona fide religious, charitable, fraternal, veterans, [LABOR, 04 POLITICAL,] or educational organization, police or fire department and company, dog 05 mushers' association, outboard motor association, or fishing derby or nonprofit trade 06 association in the state, that operates without profits to its members and that has been 07 in existence continually for a period of three years immediately before applying for a 08 license; the organization may be a firm, corporation, company, association, or 09 partnership; 10 * Sec. 18. AS 05.15.690(44) is amended to read: 11 (44) "vendor" means a business whose primary activity is not regulated 12 by this chapter but that 13 (A) conducts video lotteries [IS ENGAGED IN THE SALE 14 OF PULL-TABS] on behalf of a permittee; 15 (B) holds a business license under AS 43.70; and 16 (C) is an establishment holding a 17 (i) beverage dispensary license under AS 04.11.090 that 18 has not been designated by the Alcoholic Beverage Control Board under 19 AS 04.16.049(a)(2) - (3), has not been exempted by the Department of 20 Labor under AS 04.16.049(c) and AS 23.10.355, and , if the 21 establishment is a hotel, motel, resort, or similar business that caters to 22 the traveling public as a substantial part of its business, does not 23 conduct the video lotteries [ALLOW THE SALE OF PULL-TABS] 24 in a dining room, banquet room, guest room, or other public areas other 25 than a room in which there is regularly maintained a fixed counter or 26 service bar at which alcoholic beverages are sold or served to members 27 of the public for consumption; 28 (ii) package store license under AS 04.11.150; 29 * Sec. 19. AS 05.15.690 is amended by adding new paragraphs to read: 30 (46) "net machine income" means money put into a video lottery 31 machine minus credits paid out in cash;
01 (47) "video lottery machine" means an electronic video game machine 02 that upon insertion of coin or cash is able to play or simulate the play of a video 03 game, including video poker, keno, or blackjack, authorized by the department using 04 a video display and microprocessors in which, by chance, the player may receive free 05 games or credits that can be redeemed for cash; 06 * Sec. 20. AS 11.66.280(2) is amended to read: 07 (2) "gambling" means that a person stakes or risks something of value 08 upon the outcome of a contest of chance or a future contingent event not under the 09 person's control or influence, upon an agreement or understanding that that person or 10 someone else will receive something of value in the event of a certain outcome; 11 "gambling" does not include 12 (A) bona fide business transactions valid under the law of 13 contracts for the purchase or sale at a future date of securities or commodities 14 and agreements to compensate for loss caused by the happening of chance, 15 including contracts of indemnity or guaranty and life, health, or accident 16 insurance; or 17 (B) playing an amusement device that 18 (i) confers only an immediate right of replay not 19 exchangeable for something of value other than the privilege of 20 immediate replay; and 21 (ii) does not contain a method or device by which the 22 privilege of immediate replay may be canceled or revoked; 23 (C) an activity authorized by the Department of Revenue under 24 AS 05.15 or AS 19.65.035 ; 25 * Sec. 21. AS 11.66.280(3) is amended to read: 26 (3) "gambling device" means any device, machine, paraphernalia, or 27 equipment that is used or usable in the playing phases of unlawful gambling, whether 28 it consists of gambling between persons or gambling by a person involving the playing 29 of a machine; "gambling device" does not include 30 (A) lottery tickets, policy slips, or other items used in the 31 playing phases of lottery or policy schemes; [OR]
01 (B) an amusement device as described in (2)(B) of this section; 02 or 03 (C) a video lottery machine permitted by the commissioner 04 of revenue under AS 05.15 or AS 19.65.035; 05 * Sec. 22. AS 11.66.280(4) is amended to read: 06 (4) "gambling enterprise" means a gambling business that 07 (A) includes five or more persons who conduct, finance, 08 manage, supervise, direct, or own all or part of the business; 09 (B) has been or remains in substantially continuous operation 10 for a period in excess of 30 days or has a gross income of $2,000 or more in 11 any single day; and 12 (C) is not a 13 (i) vessel of the Alaska marine highway system or the 14 Department of Transportation and Public Facilities when they are 15 lawfully conducting an activity licensed under AS 19.65.035; or 16 (ii) municipality or a qualified organization under 17 AS 05.15.690, except that, for purposes of this paragraph, no 18 application for a license under AS 05.15 is required to be considered a 19 qualified organization; 20 * Sec. 23. AS 19.65 is amended by adding new sections to article 1 to read: 21 Sec. 19.65.035. Video lottery machines authorized. (a) The Department of 22 Revenue may license a vessel of the Alaska marine highway system to operate video 23 lottery machines in a portion of the vessel that persons under 21 years of age are 24 prohibited from entering. 25 (b) A license issued under (a) of this section is not valid when the vessel is 26 in a jurisdiction outside of the state unless that jurisdiction also allows the licensed 27 activity. 28 (c) The Department of Transportation and Public Facilities shall operate video 29 lottery machines aboard a vessel of the Alaska marine highway system licensed under 30 (a) of this section or may contract for their operation under AS 36.30. 31 (d) The commissioner of revenue shall adopt regulations under AS 44.62
01 (Administrative Procedure Act) to implement this section. Those regulations must be 02 consistent, to the extent practicable, with statutes or regulations governing video 03 lotteries and video lottery machines under AS 05.15. 04 Sec. 19.65.040. Prohibitions on video lottery machine operation; penalties. 05 (a) An employee of the Alaska marine highway system or of a contractor under 06 AS 19.65.035(c) may not with criminal negligence allow a person under 21 years of 07 age to use a video lottery machine authorized under AS 19.65.035. A person under 08 21 years of age may not use a video lottery machine authorized under AS 19.65.035. 09 In this subsection, "criminal negligence" has the meaning given in AS 11.81.900. 10 (b) A person may not manipulate or attempt to manipulate the outcome or 11 payoff of a video lottery machine authorized under AS 19.65.035 by tampering or 12 otherwise interfering with the proper functioning of the machine. 13 (c) Violation of this section is a class A misdemeanor. 14 Sec. 19.65.045. Revenues to general fund; appropriation for Alaska marine 15 highway system. Revenues from video lottery machines, less prizes awarded, shall 16 be deposited in the general fund. The legislature may appropriate the annual estimated 17 balance in the account maintained under AS 37.05.142 for revenues deposited under 18 this section for the Alaska marine highway system. Nothing in this section creates 19 a dedicated fund. 20 Sec. 19.65.050. Definition for AS 19.65.035 - 19.65.050. In AS 19.65.035 - 21 19.65.050, "video lottery machine" has the meaning given in AS 05.15.690. 22 * Sec. 24. Section 2, ch. 13, SLA 1995, as repealed and reenacted by sec. 6, ch. 41, SLA 23 1997, is repealed and reenacted to read: 24 Sec. 2. AS 05.15.100(a) is repealed and reenacted to read: 25 (a) The department may issue a permit to a municipality or qualified 26 organization. The permit gives the municipality or qualified organization the privilege 27 of conducting bingo, raffles, lotteries, ice classics, race classics, rain classics, goose 28 classics, mercury classics, deep freeze classics, canned salmon classics, salmon 29 classics, king salmon classics, dog mushers' contests, snow machine classics, fish 30 derbies, and contests of skill. 31 * Sec. 25. Section 4, ch. 13, SLA 1995, as repealed and reenacted by sec. 7, ch. 41, SLA
01 1997, is repealed and reenacted to read: 02 Sec. 4. AS 05.15.115(c) is repealed and reenacted to read: 03 (c) A permittee may not contract with more than one operator at a time to 04 conduct the same type of activity. For the purposes of this subsection, bingo games, 05 raffles, lotteries, ice classics, race classics, rain classics, goose classics, mercury 06 classics, canned salmon classics, salmon classics, king salmon classics, deep freeze 07 classics, dog mushers' contests, snow machine classics, fish derbies, contests of skill, 08 and all activities permitted under AS 05.15.100(b) are each a different type of activity. 09 A permittee may not contract with an operator to conduct video lotteries. 10 * Sec. 26. Section 6, ch. 13, SLA 1995, as repealed and reenacted by sec. 8, ch. 41, SLA 11 1997, is repealed and reenacted to read: 12 Sec. 6. AS 05.15.180(b) is repealed and reenacted to read: 13 (b) With the exception of raffles, lotteries, bingo games, video lotteries, race 14 classics, rain classics, goose classics, mercury classics, deep freeze classics, snow 15 machine classics, canned salmon classics, salmon classics, king salmon classics, and 16 other activities authorized under AS 05.15.100(b), an activity may not be licensed 17 under this chapter unless it existed in the state in substantially the same form and was 18 conducted in substantially the same manner before January 1, 1959. 19 * 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, 20 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), 21 and 05.15.690(42) are repealed. 22 * Sec. 28. Notwithstanding the effective date of secs. 1 - 27 of this Act, the Department 23 of Revenue shall begin the process under AS 44.62 of adopting regulations to implement this 24 Act so that the regulations can take effect January 1, 1999, or as soon thereafter as is possible. 25 * Sec. 29. Except for sec. 28 of this Act, this Act takes effect January 1, 1999. 26 * Sec. 30. Section 28 of this Act takes effect immediately under AS 01.10.070(c).