00                            SENATE BILL NO. 175                                                                         
01 "An Act providing municipalities with the authority to protest or to recommend                                          
02 conditions on the issuance and renewal of charitable gaming permits and requiring the                                   
03 Department of Revenue to deny or condition the license or permit unless the protest or                                  
04 conditions are arbitrary, capricious, or unreasonable, or the conditions conflict with                                  
05 state law."                                                                                                             
06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
07    * Section 1.  AS 05.15.030(a) is amended to read:                                                                  
08            (a)  At the time of filing an application for a permit or license under this                                 
09       chapter, the applicant shall notify the city or borough nearest to the location of the                            
10       proposed activity of the application.  Except as provided in (d) of this section, a                           
11       municipality [A LOCAL GOVERNMENT UNIT] may, after a hearing at which the                                  
12       applicant is afforded the opportunity to make a defense,                                                      
13                 (1)  protest the conduct of the activity in its jurisdiction by resolution                          

01       stating the reasons for the protest filed with the department; the department shall                           
02       consider the protest and shall deny the permit or license unless the department                               
03       finds, after a hearing, that the protest is arbitrary, capricious, or unreasonable;                           
04                 (2)  recommend by resolution conditions on the permit or license;                                   
05       the department shall consider the conditions and shall condition the permit or                                
06       license as recommended by the resolution unless the department finds, after a                                 
07       hearing, that the conditions are arbitrary, capricious, or unreasonable or that the                           
08       conditions conflict with state law [PROTESTS ARE LIMITED TO THE LACK OF                                       
09       QUALIFICATIONS PRESCRIBED BY THIS CHAPTER.  THIS RESOLUTION IS                                                    
10       ONLY A RECOMMENDATION BY THE LOCAL GOVERNMENT THAT MAY                                                            
11       BE CONSIDERED BY THE DEPARTMENT IN DETERMINING WHETHER TO                                                         
12       ISSUE OR REFUSE TO ISSUE A PERMIT OR LICENSE].                                                                    
13    * Sec. 2.  AS 05.15.030 is amended by adding a new subsection to read:                                             
14            (d)  A municipality that holds a permit or license that would compete with the                               
15       permit or license to be issued to the applicant may only protest based upon the                                   
16       applicant's failure to pay municipal taxes and may not recommend conditions on the                                
17       permit or license.