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CSSB 273(FIN) AM: "An Act requiring that gross receipts and ideal gross be used to account for charitable gaming activities; making records received by the Department of Revenue under AS 05.15 subject to the laws relating to public records and providing that the Department of Revenue does not have to make those records available to the public until 90 days following the receipt of the records; requiring municipalities to provide to the state records concerning sales taxes assessed for charitable gaming activities; relating to requiring that a charitable share of charitable gaming receipts be dedicated to charitable uses; relating to reports required for charitable gaming activities; relating to payments to the state from gross receipts of charitable gaming; relating to contracts between operators or vendors and permittees; relating to licensing of multiple-beneficiary permittees and to the duties of a multiple-beneficiary permittee to each holder of the permit; requiring a person employed as a gaming manager to be certified by the state; limiting the expenditure of amounts of gross receipts and ideal gross required to be paid to permittees or retained by permittees; relating to the amount of gross receipts and prizes allowed under a permit or a multiple-beneficiary permit; allowing operators to pool gross receipts, prizes, and door prizes among permittees; and providing for an effective date."

00CS FOR SENATE BILL NO. 273(FIN) am 01 "An Act requiring that gross receipts and ideal gross be used to account for 02 charitable gaming activities; making records received by the Department of 03 Revenue under AS 05.15 subject to the laws relating to public records and 04 providing that the Department of Revenue does not have to make those records 05 available to the public until 90 days following the receipt of the records; 06 requiring municipalities to provide to the state records concerning sales taxes 07 assessed for charitable gaming activities; relating to requiring that a charitable 08 share of charitable gaming receipts be dedicated to charitable uses; relating to 09 reports required for charitable gaming activities; relating to payments to the state 10 from gross receipts of charitable gaming; relating to contracts between operators 11 or vendors and permittees; relating to licensing of multiple-beneficiary permittees 12 and to the duties of a multiple-beneficiary permittee to each holder of the permit; 13 requiring a person employed as a gaming manager to be certified by the state; 14 limiting the expenditure of amounts of gross receipts and ideal gross required to

01 be paid to permittees or retained by permittees; relating to the amount of gross 02 receipts and prizes allowed under a permit or a multiple-beneficiary permit; 03 allowing operators to pool gross receipts, prizes, and door prizes among 04 permittees; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 05.15.020(b) is amended to read: 07  (b) A gaming [AN ADDITIONAL] fee of one percent of the charitable share 08 [NET PROCEEDS] received during the preceding year from the activities authorized 09 under the permit shall be paid to the department annually by the municipality or 10 qualified organization authorized to conduct activities under this chapter [,] if the gross 11 receipts for the activities were $20,000 or more. 12 * Sec. 2. AS 05.15.060(a) is amended to read: 13  (a) The department shall adopt regulations under AS 44.62 (Administrative 14 Procedure Act) necessary to carry out this chapter covering, but not limited to, 15  (1) the issuance, renewal, and revocation of permits, certificates, 16 licenses, and vendor registrations; 17  (2) a method of accounting for gross receipts from activities 18 conducted by a municipality or qualified organization or an operator and of 19 assuring that payments due to permittees, the holders of a multiple-beneficiary 20 permit, and the department are made at the times and in the amounts or 21 percentages required [ASCERTAINING NET PROCEEDS, THE DETERMINATION 22 OF ITEMS OF EXPENSE THAT MAY BE INCURRED OR PAID, AND THE 23 LIMITATION OF THE AMOUNT OF THE ITEMS OF EXPENSE] to prevent the 24 proceeds from the activity permitted from being diverted to noncharitable, 25 noneducational, nonreligious, or profit-making organizations, individuals, or groups; 26  (3) the immediate revocation of permits, certificates, licenses, and 27 vendor registrations authorized under this chapter if this chapter or regulations adopted 28 under it are violated; 29  (4) the requiring of detailed, sworn, financial reports of operations from 30 permittees and licensees including detailed statements of receipts and payments; 31  (5) the investigation of permittees, gaming managers, licensees,

01 registered vendors, and their employees, including the fingerprinting of those 02 permittees, gaming managers, licensees, registered vendors, and employees whom the 03 department considers it advisable to fingerprint; 04  (6) the method and manner of conducting authorized activities and 05 awarding of prizes or awards, and the equipment that may be used; 06  (7) the number of activities that may be held, operated, or conducted 07 under a permit during a specified period; however, the department may not allow more 08 than 14 bingo sessions a month and 35 bingo games a session to be conducted under 09 a permit; the holders of a multiple-beneficiary permit under AS 05.15.100(d) may hold, 10 operate, or conduct the number of sessions and games a month equal to the number 11 allowed an individual permittee per month multiplied by the number of municipalities 12 and qualified organizations that hold [HOLDERS OF] the multiple-beneficiary 13 permit; 14  (8) a method of accounting for receipts and disbursements by operators, 15 including the keeping of records and requirements for the deposit of all receipts in a 16 bank; 17  (9) the disposition of funds in possession of a permittee, a gaming 18 manager, a person, municipality, or qualified organization that possesses an operator's 19 license, or a registered vendor at the time a permit, a certificate, a license, or a vendor 20 registration is surrendered, revoked, or invalidated; 21  (10) restrictions on the participation by employees of the Department 22 of Fish and Game in salmon classics and in king salmon classics, and by employees 23 of Douglas Island Pink and Chum in king salmon classics; 24  (11) other matters the department considers necessary to carry out this 25 chapter or protect the best interest of the public. 26 * Sec. 3. AS 05.15.060 is amended by adding a new subsection to read: 27  (c) Records received under this chapter are subject to AS 09.25.110 - 28 09.25.220. Notwithstanding AS 09.25.100 - 09.25.220, the department does not have 29 to make available to the public records received under this chapter until 90 days after 30 the record is received by the department. The department shall release the records to 31 the public after 90 days.

01 * Sec. 4. AS 05.15.070 is amended to read: 02  Sec. 05.15.070. Examination of books and records; access to municipal 03 sales tax records. The department may examine or have examined the books and 04 records of a permittee, an operator, a registered vendor, a gaming manager, or a 05 person licensed to manufacture or to distribute pull-tab games in the state. The 06 department may issue subpoenas for the attendance of witnesses and the production of 07 books, records, and other documents. 08 * Sec. 5. AS 05.15.070 is amended by adding a new subsection to read: 09  (b) A municipality that levies a sales tax on a permittee, an operator, or a 10 registered vendor for activities conducted or allowed under this chapter shall provide 11 the department with information concerning the levy, assessment, and collection of the 12 sales tax when requested by the department. 13 * Sec. 6. AS 05.15.080 is amended to read: 14  Sec. 05.15.080. Reports and fees required of municipalities and qualified 15 organizations. (a) A municipality or a qualified organization issued a permit under 16 this chapter shall file a report with the department by the 45th day following each 17 calendar quarter in which the permittee had gross receipts of $50,000 or more from 18 activities authorized under this chapter. The report must include the type of activity 19 conducted, the dates [DATE] and locations [LOCATION] of the activities 20 [ACTIVITY], the amount of gross receipts from each activity [, THE AMOUNT OF 21 AUTHORIZED EXPENSES], the value of prizes awarded for each activity [, THE 22 AMOUNT OF NET PROCEEDS], and other information the department may require. 23 However, if the only activity conducted by a municipality or qualified organization 24 during a calendar quarter is a raffle and [OR] lottery, then the municipality or 25 qualified organization is not required to file a report under this subsection until the 26 raffle and [OR] lottery is completed. 27  (b) A municipality or a qualified organization issued a permit under this 28 chapter shall file an annual report with the department by March 15 of the year 29 following the year in which activities were conducted, accompanied by the payment 30 of the gaming [ADDITIONAL] fee, as may be required under AS 05.15.020(b). The 31 report must list the types of activities conducted, and, for each activity, the total

01 amount of gross receipts, [THE TOTAL AMOUNT OF AUTHORIZED EXPENSES,] 02 the total value of prizes awarded, and the total amount of the charitable share [NET 03 PROCEEDS]. 04 * Sec. 7. AS 05.15.083 is amended to read: 05  Sec. 05.15.083. Reports to department by operators. (a) An operator shall 06 file a report with the department by the last business day of the month following each 07 calendar quarter in which an activity was conducted. The report must include, for each 08 authorizing permittee on whose behalf an activity was conducted during the quarter, 09 the date and location of each activity, the type of activity conducted, the amount of 10 gross receipts from each activity [, THE AMOUNT OF AUTHORIZED EXPENSES], 11 the value of prizes awarded for each activity , the amount of the charitable share 12 [NET PROCEEDS] paid to the permittee from each activity , and other information 13 the department may require; a completed Internal Revenue Service Form 941; and a 14 copy of the operator's employer contributions and wage reports submitted to the 15 Department of Labor for the quarter. However, if the only activity conducted by an 16 operator during the calendar quarter is a raffle and [OR] lottery, then the operator is 17 not required to file a report under this subsection until the raffle and [OR] lottery is 18 completed. 19  (b) An operator shall file an annual report with the department no later than 20 February 28 of the year following the year in which activities were conducted. The 21 report must include, for each authorizing permittee on whose behalf an activity was 22 conducted, the types of activities conducted, the total amount of gross receipts from 23 each activity conducted [, THE TOTAL AMOUNT OF AUTHORIZED EXPENSES], 24 the total value of prizes awarded for each activity , and the total amount of the 25 charitable share from each activity [NET PROCEEDS] paid to each authorizing 26 permittee. The annual report must also include a completed Internal Revenue Service 27 Form W-2 for each person employed by the operator during the preceding year. 28 * Sec. 8. AS 05.15.083 is amended by adding a new subsection to read: 29  (c) An operator shall deliver to each authorizing permittee a copy of the 30 reports required under this section and shall certify on the report to the department that 31 delivery has been made to the permittee.

01 * Sec. 9. AS 05.15.087(a) is repealed and reenacted to read: 02  (a) An operator shall pay at least the minimum charitable shares described in 03 AS 05.15.128 due to an authorizing permittee by the 15th day of the month following 04 the calendar quarter in which the operator conducted an activity on behalf of the 05 permittee. 06 * Sec. 10. AS 05.15.105(a) is amended to read: 07  (a) If a person has been convicted of a violation of a law of this state that is, 08 or a law or ordinance of another jurisdiction that would be if it had been committed 09 in this state, a felony, or a violation of a law or ordinance of this state or another 10 jurisdiction that is a crime involving theft or dishonesty or a violation of gambling 11 laws , 12  (1) the department may not issue a license to the person; 13  (2) the department may not issue a license to, or register as a vendor, 14 an applicant who employs the person as a gaming manager or in a managerial or 15 supervisory capacity or uses the person as a fund raiser or consultant; 16  (3) the department may not issue a permit for an activity if the person 17 is responsible for the operation of the activity; 18  (4) the person may not be employed as a gaming manager or in a 19 managerial or supervisory capacity by a licensee or vendor or used as a fund raiser or 20 consultant by a licensee or vendor; 21  (5) the person may not participate in charitable gaming as a permittee, 22 gaming manager, licensee, or vendor ; 23  (6) the person may not be certified as a gaming manager . 24 * Sec. 11. AS 05.15 is amended by adding a new section to read: 25  Sec. 05.15.114. Gaming manager. (a) A permittee may not employ, contract 26 with, or in any way engage a person to act as a gaming manager unless the person is 27 certified by the department as a gaming manager. A person may not act as a gaming 28 manager unless the person is certified by the department as a gaming manager. 29  (b) The department may certify a person as a gaming manager if the person 30  (1) applies under oath on a form provided by the department; 31  (2) pays the annual fee of $50; and

01  (3) has passed a test formulated by the department on the contents of 02 this chapter and the regulations adopted under this chapter. 03 * Sec. 12. AS 05.15.115(b) is amended to read: 04  (b) The contract between an authorizing permittee and an operator must 05 include [THE AMOUNT AND FORM OF COMPENSATION TO BE PAID TO THE 06 OPERATOR,] the term of the contract, the activities to be conducted by the operator 07 on behalf of the permittee, the location where the activities are to be conducted, the 08 name and address of the member in charge, and other provisions the department may 09 require. The contract may not contain a provision that requires the authorizing 10 permittee to pay to the operator, whether from gaming receipts or proceeds or 11 from other separate funds of the permittee, an amount that would result in the 12 permittee realizing less from the gaming activity than the minimum charitable 13 share required to be paid to a permittee under this chapter. 14 * Sec. 13. AS 05.15.115(d) is amended to read: 15  (d) A permittee shall submit by certified mail to the department for review 16 [APPROVAL] a copy of each contract with an operator with whom the permittee 17 contracts to conduct activities subject to this chapter. The contract must meet the 18 requirements of this section. If the contract does not meet the requirements of this 19 section or contains provisions that violate this chapter or the regulations adopted 20 under it, the [THE] department shall declare [APPROVE OR DISAPPROVE] the 21 contract void. Any changes to a contract must be submitted to the department for 22 review under this section . If the contract is declared void, the [DISAPPROVED,] 23 reasons [FOR THE DISAPPROVAL] shall be provided in writing to the permittee. 24 Activities may not be conducted under a [THE] contract declared void [BEFORE 25 THE CONTRACT IS APPROVED. SUBSEQUENT AMENDMENTS TO AN 26 APPROVED CONTRACT DO NOT TAKE EFFECT UNTIL THE AMENDMENTS 27 ARE APPROVED BY THE DEPARTMENT]. 28 * Sec. 14. AS 05.15.128(a) is repealed and reenacted to read: 29  (a) The department shall revoke the license of an operator who does not on an 30 annual basis pay at least the following minimum charitable shares to each authorizing 31 permittee:

01  (1) one and one-half percent of the gross receipts from bingo; 02  (2) seven percent of the gross receipts from a pull-tab game; and 03  (3) 10 percent of the gross receipts from an activity other than bingo 04 or pull-tab games. 05 * Sec. 15. AS 05.15.145(a) is amended to read: 06  (a) Two to six municipalities or qualified organizations, or a combination of 07 two to six municipalities and qualified organizations, may jointly apply for a multiple- 08 beneficiary permit under AS 05.15.100(d). The commissioner may not issue or renew a 09 permit except upon satisfactory proof that (1) each joint applicant is a municipality or 10 qualified organization, (2) the activity may be permitted under this chapter, (3) the multiple-beneficiary 11 permittee has a gaming manager certified by the department under 12 AS 05.15.114, and (4) the issuance of a permit is not detrimental to the best interests of the 13 public. Upon request of the commissioner, the joint applicants shall prove conclusively each 14 of these requirements before a permit may be issued or renewed. 15 * Sec. 16. AS 05.15.145(d) is amended to read: 16  (d) The holders of a multiple-beneficiary permit shall jointly file reports with 17 the department that comply with the reporting requirements imposed on operators 18 under AS 05.15.083. A multiple-beneficiary permittee shall file with each holder 19 of the multiple-beneficiary permit quarterly and annual reports that comply and 20 are consistent with the reporting and payment requirements imposed on operators 21 under AS 05.15.083 and 05.15.087. 22 * Sec. 17. AS 05.15.145 is amended by adding new subsections to read: 23  (e) The department shall revoke a multiple-beneficiary permit if on an annual 24 basis at least the following minimum charitable shares are not distributed to the holders 25 of the multiple-beneficiary permit: 26  (1) one and one-half percent of the gross receipts from bingo; 27  (2) seven percent of the gross receipts from pull-tab games; and 28  (3) 10 percent of the gross receipts from an activity other than bingo 29 or pull-tab games. 30  (f) A multiple-beneficiary permittee 31  (1) shall pay the charitable share due to the holders of the multiple-

01 beneficiary permit by check; 02  (2) shall post a copy of the multiple-beneficiary permit in a public 03 place on the premises where the activities are conducted; 04  (3) shall have its financial records reviewed annually by a certified 05 public accountant; the multiple-beneficiary permittee shall submit the results of the 06 review to the department by February 28 of the year following the year for which the 07 review is conducted; and 08  (4) may not 09  (A) charge losses resulting from bad checks or uncollectible 10 debts against the charitable shares due to the holders of the multiple-beneficiary 11 permit; 12  (B) extend credit to players; 13  (C) employ house players; 14  (D) allow the permittee's employees to play a game conducted 15 by the permittee. 16 * Sec. 18. AS 05.15.150 is amended to read: 17  Sec. 05.15.150. Limitation on use of charitable share [PROCEEDS]. (a) 18 The charitable share that is paid to or retained by a permittee for an 19 [AUTHORITY TO CONDUCT THE] activity authorized by this chapter may only be 20 expended by the permittee for [IS CONTINGENT UPON THE DEDICATION OF 21 THE NET PROCEEDS OF THE CHARITABLE GAMING ACTIVITY TO THE 22 AWARDING OF PRIZES TO CONTESTANTS OR PARTICIPANTS AND TO] 23 political, educational, civic, public, charitable, patriotic, or religious uses in the state. 24 "Political, educational, civic, public, charitable, patriotic, or religious uses" means uses 25 benefiting persons either by bringing them under the influence of education or religion 26 or relieving them from disease, suffering, or constraint, or by assisting them in 27 establishing themselves in life, or by providing for the promotion of the welfare and 28 well-being of the membership of the organization within their own community, or 29 through aiding candidates for public office or groups that support candidates for public 30 office, or by erecting or maintaining public buildings or works, or lessening the burden 31 on government . "Political, educational, civic, public, charitable, patriotic, or

01 religious uses" [, BUT] does not include 02  (1) the direct or indirect payment of any portion of the charitable 03 share paid to or retained by a permittee [NET PROCEEDS] of a bingo or pull-tab 04 game to a lobbyist registered under AS 24.45; 05  (2) the erection, acquisition, improvement, maintenance, or repair of 06 real, personal, or mixed property unless it is used exclusively for one or more of the 07 permitted uses; or 08  (3) the direct or indirect payment of any portion of the charitable 09 share paid to or retained by a permittee [NET PROCEEDS] of a charitable gaming 10 activity, except the charitable share [PROCEEDS] of a raffle and lottery, 11  (A) to aid candidates for public office or groups that support or 12 oppose candidates for public office; 13  (B) to a political party or to an organization affiliated with a 14 political party; or 15  (C) to a group, as that term is defined in AS 15.13.400, or a 16 political group, as that term is defined in AS 15.60, that seeks to influence the 17 outcome of an election. 18  (b) The charitable share [NET PROCEEDS] derived from the activity must 19 be devoted within one year to one or more of the uses stated in (a) of this section. A 20 municipality or qualified organization desiring to hold the charitable share [NET 21 PROCEEDS] for a period longer than one year must apply to the department for 22 special permission , and , upon good cause shown , the department may grant the request. 23 * Sec. 19. AS 05.15.150 is amended by adding a new subsection to read: 24  (c) Notwithstanding (a) and (b) of this section, a dog mushers' association may 25 elect to apply the charitable share realized from activities conducted under this chapter 26 to prizes for contestants in a dog mushers' contest conducted in the following year. 27 * Sec. 20. AS 05.15 is amended by adding a new section to read: 28  Sec. 05.15.155. Required charitable share from activities conducted by 29 permittees. The department shall revoke the permit of a municipality or qualified 30 organization that fails on an annual basis to retain at least the following minimum 31 charitable shares:

01  (1) one and one-half percent of the gross receipts from bingo; 02  (2) seven percent of the 03  (A) gross receipts from pull-tab games not conducted by a 04 vendor; and 05  (B) ideal gross from pull-tab games conducted by a vendor; and 06  (3) 10 percent of the gross receipts from an activity other than bingo 07 or pull-tab games. 08 * Sec. 21. AS 05.15.165(a) is amended to read: 09  (a) An operator shall pay the charitable share [NET PROCEEDS] to the 10 authorizing permittee by check. 11 * Sec. 22. AS 05.15.165(f) is amended to read: 12  (f) An operator may not 13  (1) charge losses resulting from bad checks or uncollectible debts 14 against the gross receipts from the activity or against the charitable share [NET 15 PROCEEDS] due to the authorizing permittee; 16  (2) extend credit to players; 17  (3) employ house players; 18  (4) allow the operator's employees to play a game conducted by the 19 operator at the location where the employee works for the operator. 20 * Sec. 23. AS 05.15 is amended by adding a new section to read: 21  Sec. 05.15.166. Pooling of gross receipts, prizes, and door prizes. (a) An 22 operator that conducts bingo, pull-tab, or other games under this chapter on behalf of 23 two or more permittees may monthly allocate the gross receipts and the total value of 24 the prizes offered or awarded, including the value of door prizes, among all of the 25 permittees whose permits are in use during the month in which the games are 26 conducted. 27  (b) A multiple-beneficiary permittee that conducts bingo, pull-tab, or other 28 games under this chapter may monthly allocate the gross receipts and the total value 29 of the prizes offered or awarded, including the value of door prizes, among all of the 30 holders of the multiple-beneficiary permit during the month in which the games are 31 conducted.

01  (c) An allocation made under 02  (1) (a) of this section shall be based on the number of days of the 03 month that each permit is in play for each type of gaming activity; 04  (2) (b) of this section must be based on a preexisting written agreement 05 between the holders of the multiple-beneficiary permit; 06  (3) (a) or (b) of this section must allocate a permittee's gross receipts 07 at the same rate the total value of the prizes offered or awarded, including the value 08 of door prizes, is allocated; and 09  (4) (a) or (b) of this section may not result in a permittee exceeding the 10 prize limitations of AS 05.15.180. 11 * Sec. 24. AS 05.15.167(a) is amended to read: 12  (a) The bond or security filed under AS 05.15.122(b) must be made payable 13 to the department and must be conditioned upon payment of the amounts due to the 14 department and payment of the charitable share [NET PROCEEDS] due to the 15 authorizing permittee. If the operator fails to make the required payments, the operator 16 forfeits the bond or security to the department. 17 * Sec. 25. AS 05.15.167(b) is amended to read: 18  (b) The amount forfeited under (a) of this section shall be first used to satisfy 19 delinquent fees, interest, and penalties due the department under this chapter. If the 20 bond or security is not exhausted by payment of delinquent fees, interest, and 21 penalties, the department may use the remaining amount to pay the charitable share 22 [NET PROCEEDS] due an authorizing permittee. The total amount available for 23 payment of the charitable share [NET PROCEEDS] shall be prorated among the 24 permittees to whom charitable shares [PROCEEDS] are due from that operator. 25 * Sec. 26. AS 05.15.170 is amended to read: 26  Sec. 05.15.170. Suspension or revocation of permit, certificate, license, or 27 vendor registration. (a) The department may suspend, for a period of up to one 28 year, or revoke a permit, certificate, license, or vendor registration, after giving notice 29 to and an opportunity to be heard by the permittee , gaming manager, or licensee, if 30 the permittee, gaming manager, licensee, or vendor 31  (1) violates or fails to comply with a requirement of this chapter or of

01 a regulation adopted under this chapter; 02  (2) breaches a contractual agreement with a permittee, licensee, or 03 registered vendor; 04  (3) becomes disqualified to participate in charitable gaming as provided 05 in AS 05.15.105; for the purposes of this paragraph, a permittee, licensee, or vendor 06 that is not a natural person is considered convicted if an owner or manager of the 07 permittee, licensee, or vendor is convicted; 08  (4) knowingly submits false information to the department or, in the 09 case of a registered vendor, to a permittee when the vendor knows that the false 10 information will be submitted to the department as part of an application for 11 registration; or 12  (5) gives or acts upon any inside information on the status of the prizes 13 awarded or to be awarded in a pull-tab game. 14  (b) If the department revokes a 15  (1) license or vendor registration under this section, it may prohibit the 16 licensee or vendor from reapplying for a license or vendor registration for a period of 17 not more than five years ; 18  (2) [. IF THE DEPARTMENT REVOKES A] permit under this section, 19 it may prohibit the permittee from reapplying for a permit for a period of not more 20 than one year ; 21  (3) gaming manager certificate, it must revoke the certificate for 22 a minimum of one year and not more than five years; 23  (4) multiple-beneficiary permit, it may not issue a multiple- 24 beneficiary permit to a holder of the revoked permit for the one-year period immediately 25 following the revocation and may refuse to issue a multiple- 26 beneficiary permit for up to five years following the revocation . 27 * Sec. 27. AS 05.15.180(g) is repealed and reenacted to read: 28  (g) Under this chapter, 29  (1) a permittee may 30  (A) have gross receipts in a calendar year of not more than 31  (i) $1,300,000 from pull-tab games, except that a

01 permittee who contracts with an operator may have gross receipts of not 02 more than $650,000 from pull-tab games; 03  (ii) $750,000 from all charitable gaming activities 04 conducted under this chapter other than bingo and pull-tabs; 05  (B) award in a calendar year a maximum of $840,000 in prizes 06 for bingo, except that a permittee who contracts with an operator may award 07 in a calendar year a maximum of $660,000 in prizes for bingo; 08  (2) the holders of a multiple-beneficiary permit may 09  (A) have gross receipts in a calendar year from 10  (i) pull-tab games of not more than $1,300,000 11 multiplied by the number of holders of the multiple-beneficiary permit; 12  (ii) charitable gaming activities other than bingo and 13 pull-tab games of not more than $750,000 multiplied by the number of 14 holders of the multiple-beneficiary permit; 15  (B) award prizes in a calendar year for bingo games of a 16 maximum of $840,000 multiplied by the number of holders of the multiple- 17 beneficiary permit. 18 * Sec. 28. AS 05.15.188(h) is amended to read: 19  (h) If a permittee contracts with a vendor under (a) of this section, the contract 20 must provide that the permittee shall receive no less than 16 [70] percent of the ideal 21 gross [NET]. 22 * Sec. 29. AS 05.15.188(i) is repealed and reenacted to read: 23  (i) The amount required to be paid to the permittee under (h) of this section 24 shall be paid by the vendor to the member-in-charge upon delivery of a pull-tab series 25 to the vendor for sale. The amount required to be paid by the vendor shall be paid by 26 check, and the check may not be drawn in a manner that the payee is not identified. 27 * Sec. 30. AS 05.15.680(b) is amended to read: 28  (b) A person who, with the intent to mislead a public servant in the 29 performance of the public servant's duty, submits a false statement in an application 30 for a permit, certificate, license, or vendor registration under this chapter is guilty of 31 unsworn falsification.

01 * Sec. 31. AS 05.15.690(21) is amended to read: 02  (21) "gross receipts" means the total receipts , excluding local sales 03 and federal excise taxes collected on the sale of the shares, tickets, or rights, 04 without deducting any prize or expense, from the sale of shares, tickets, or rights 05 connected with participation in any activity permitted under this chapter or the right 06 to participate, including admission, fee or charge, sale of equipment or supplies, and 07 all other miscellaneous receipts; 08 * Sec. 32. AS 05.15.690(23) is amended to read: 09  (23) "ideal gross [NET]" means an amount equal to the total amount 10 of receipts that would be received if every individual pull-tab ticket in a series were 11 sold at face value [, LESS THE PRIZES TO BE AWARDED FOR THAT SERIES]; 12 * Sec. 33. AS 05.15.690 is amended by adding new paragraphs to read: 13  (46) "charitable share" means the percentage of gross receipts or ideal 14 gross paid to or retained by a permittee; 15  (47) "gaming manager" means the principal individual who manages, 16 controls, or oversees the pull-tab or bingo gaming activities of a permittee and who 17 directly or indirectly receives compensation in any form for that management, control, 18 or oversight. 19 * Sec. 34. AS 05.15.087(b), 05.15.087(c), 05.15.160, 05.15.165(b), and 05.15.690(29) are 20 repealed. 21 * Sec. 35. Notwithstanding sec. 36 of this Act, the Department of Revenue may proceed 22 to adopt regulations necessary to implement the changes made by this Act. The regulations 23 take effect under AS 44.62 (Administrative Procedure Act) but not before January 1, 1999. 24 * Sec. 36. Except for sec. 35 of this Act, this Act takes effect January 1, 1999. 25 * Sec. 37. Section 35 of this Act takes effect immediately under AS 01.10.070(c).