Legislature(1993 - 1994)
1993-04-19 Senate Journal
Full Journal pdf1993-04-19 Senate Journal Page 1485 SB 76 SENATE BILL NO. 76 "An Act preventing persons with felony convictions from being involved in charitable gaming activities as a permittee, licensee, or employee in a managerial or supervisory capacity; and relating to `political uses' and `political organizations' as those terms are used in the charitable gaming statutes" was read the second time. Senator Pearce moved and asked unanimous consent for the adoption of the Finance Committee Substitute offered on page 1465. Senator Duncan objected. The question being: "Shall the Finance Committee Substitute for SENATE BILL NO. 76 be adopted?" The roll was taken with the following result: 1993-04-19 Senate Journal Page 1486 SB 76 SB 76 Adopt Finance CS? YEAS: 14 NAYS: 6 EXCUSED: 0 ABSENT: 0 Yeas: Ellis, Frank, Halford, Jacko, Kelly, Kerttula, Leman, Miller, Pearce, Phillips, Rieger, Salo, Sharp, Taylor Nays: Adams, Donley, Duncan, Lincoln, Little, Zharoff and so, CS FOR SENATE BILL NO. 76(FIN) "An Act requiring regulations relating to pull-tabs to be consistent with North American Gaming Regulators Association standards on pull-tabs to the extent permitted by charitable gaming laws; allowing permittees to contract with vendors to sell pull-tabs on behalf of the permittee at an establishment holding a package store license and certain establishments holding a beverage dispensary license; allowing municipalities to prohibit vendors from conducting gaming activities within the municipality; restricting the purchase of pull-tabs by permittees, licensees, and vendors and their owners, managers, and employees; requiring receipts before prizes of $50 or more may be awarded in pull-tab games; prohibiting distributors from supplying pull-tabs to vendors; requiring the registration of vendors and regulating activities involving them; requiring the licensing of out-of- state pull-tab manufacturers; requiring the department regulating charitable gaming to approve contracts between permittees and operators before gaming may occur; preventing persons with felony convictions or convictions for crimes involving theft or dishonesty or a violation of gambling laws from being involved in charitable gaming activities as a permittee, licensee, vendor, person responsible for the operation of an activity, fund raiser or consultant of a licensee or vendor, or employee in a managerial or supervisory capacity, and providing exceptions for certain persons whose convictions are at least 10 years old and are not for violation of an unclassified felony described in AS11, a classA felony, or extortion; relating to multiple-beneficiary charitable gaming permits and door prizes for charitable gaming; requiring operators to pay permittees each quarter at least 30 percent of the adjusted gross 1993-04-19 Senate Journal Page 1487 SB 76 income from a pull-tab activity and limiting operators to expenses of not more than 70 percent of the adjusted gross income from that activity; requiring operators to pay permittees each quarter at least 10 percent of the adjusted gross income from a charitable gaming activity other than pull-tabs and limiting operators to expenses of not more than 90 percent of the adjusted gross income from that activity; requiring a permittee who uses a pull-tab vendor to enter into a contract with that vendor; requiring a vendor contracting with a permittee to pay the permittee at least 50 percent of the ideal net for each pull-tab series delivered to the vendor by the permittee; requiring that operators report an adjusted gross income of at least 15 percent of gross income each quarter; allowing the commissioner regulating charitable gaming to issue orders prohibiting violations of state gaming laws; relating to the authority of the commissioner regulating charitable gaming to suspend or revoke a permit, license, or registration; prohibiting the direct contribution of proceeds of a bingo or pull-tab game to a candidate for a public office of the state or a political subdivision of the state or to that candidate's campaign organization; prohibiting the payment of any portion of the net proceeds of a charitable gaming activity to a registered lobbyist; relating to `political uses' and `political organizations' as those terms are used in the charitable gaming statutes; and providing for an effective date." was adopted. CS FOR SENATE BILL NO. 76(FIN) was read the second time. Senator Kerttula offered Amendment No. 1 : Page 1, lines 1 - 8: Delete all material and insert: "An Act prohibiting the sale, manufacture, or distribution of pull-tabs in the state; requiring receipts before" Page 1, lines 9 - 12: Delete "prohibiting distributors from supplying pull-tabs to vendors; relating to registration of vendors and regulating activities involving them; requiring the licensing of out-of-state 1993-04-19 Senate Journal Page 1488 SB 76 pull-tab manufacturers;" Page 2, line 4: Delete "vendor," Page 2, line 10, following "gaming": Delete all material. Page 2, lines 11 - 12: Delete all material. Page 2, line 13: Delete "income from that activity;" Page 2, line 15: Delete "other than pull-tabs" Page 2, line 16: Delete "requiring a permittee" Page 2, lines 17 - 19: Delete all material. Page 2, line 24: Delete "license, or registration" Insert "or license" Page 3, line 1: Delete "or pull-tab" Page 3, line 10, through page 4, line 30: Delete all material and insert: "Sec. 05.15.060. REGULATIONS. The department shall adopt regulations under the Administrative Procedure Act (AS44.62) necessary to carry out this chapter covering, but not limited to, (1) the issuance, renewal, and revocation of 1993-04-19 Senate Journal Page 1489 SB 76 permits and licenses; (2) a method of ascertaining net proceeds, the determination of items of expense that may be incurred or paid, and the limitation of the amount of the items of expense to prevent the proceeds from the activity permitted from being diverted to noncharitable, noneducational, nonreligious, or profit-making organizations, individuals, or groups; (3) the immediate revocation of permits and licenses authorized under this chapter if this chapter or regulations adopted under it are violated; (4) the requiring of detailed, sworn, financial reports of operations from permittees and licensees including detailed statements of receipts and payments; (5) the investigation of permittees, licensees, and their employees, including the fingerprinting of those permittees, licensees, and employees whom the commissioner considers it advisable to fingerprint; (6) [EXCLUSION FROM PARTICIPATION AS A PERMITTEE, LICENSEE, OR EMPLOYEE OF A PERMITTEE OR LICENSEE, OF A PERSON CONVICTED OF, IN PRISON FOR, OR ON PAROLE FOR A FELONY WITHIN THE PRECEDING FIVE YEARS, OR CONVICTED OF A CRIME INVOLVING THEFT OR DISHONESTY OR OF A VIOLATION OF A MUNICIPAL, STATE, OR FEDERAL GAMBLING LAW; (7)] the method and manner of conducting authorized activities and awarding of prizes or awards, and the equipment that may be used; (7) [(8)] the number of activities that may be held, operated, or conducted under a permit during a specified period; however, the department may not allow more than 14 bingo sessions a month and 35 bingo games a session to be conducted under a permit; the holders of a multiple-beneficiary permit under AS05.15.100(d) may hold, operate, or conduct the number of sessions and games a month equal to the number allowed an 1993-04-19 Senate Journal Page 1490 SB 76 individual permittee per month multiplied by the number of holders of the multiple-beneficiary permit; (8) [(9)] a method of accounting for receipts and disbursements by operators, including the keeping of records and requirements for the deposit of all receipts in a bank; (9) [(10)] the disposition of funds in possession of a permittee or a person, municipality, or qualified organization that possesses an operator's license at the time a permit or a license is surrendered, revoked, or invalidated; (10) [(11)] restrictions on the participation by employees of the Department of Fish and Game in salmon classics and in king salmon classics, and by employees of Douglas Island Pink and Chum in king salmon classics; (11) [(12)] other matters the commissioner considers necessary to carry out this chapter or protect the best interest of the public." Renumber the following bill sections accordingly. Page 5, line 2: Delete "," Insert "or [,]" Page 5, lines 3 - 4: Delete ", a registered vendor, or a person licensed to manufacture or to distribute pull-tabs in the state" Insert [, OR A PERSON LICENSED TO MANUFACTURE OR TO DISTRIBUTE PULL-TABS IN THE STATE] Page 5, following line 5: Insert new bill sections to read: "* Sec. 4. AS 05.15.095(a) is amended to read: (a) The applications and reports to the department required by this chapter shall be signed under penalty of 1993-04-19 Senate Journal Page 1491 SB 76 unsworn falsification by the following person, as applicable: (1) the member in charge for the qualified organization; (2) a person authorized to sign on behalf of the municipality; or (3) the operator or the operator's agent [; (4) THE LICENSED PULL-TAB DISTRIBUTOR OR THE DISTRIBUTOR'S AGENT; OR (5) THE LICENSED PULL-TAB MANUFACTURER OR THE MANUFACTURER'S AGENT]. * Sec. 5. AS 05.15.100(a) is amended to read: (a) The commissioner may issue a permit to a municipality or qualified organization. The permit gives the municipality or qualified organization the privilege of conducting bingo, raffles and lotteries, [PULL-TAB GAMES,] ice classics, rain classics, goose classics, mercury classics, salmon classics, king salmon classics, dog mushers' contests, fish derbies, and contests of skill." Renumber the following bill sections accordingly. Page 5, line 20: Delete ", or register as a vendor" Page 5, line 26: Delete "or vendor" Page 5, line 27: Delete "or vendor" Page 5, line 28: Delete "," Insert "or" 1993-04-19 Senate Journal Page 1492 SB 76 Page 5, line 29: Delete ", or vendor" Page 6, following line 31: Insert a new bill section to read: "* Sec. 11. AS 05.15.115(c) is amended to read: (c) A permittee may not contract with more than one operator at a time to conduct the same type of activity. For the purposes of this subsection, bingo games, raffles, lotteries, [PULL-TAB GAMES,] ice classics, rain classics, goose classics, mercury classics, salmon classics, king salmon classics, dog mushers' contests, fish derbies, contests of skill, and all activities permitted under AS05.15.100(b) are each a different type of activity." Renumber the following bill sections accordingly. Page 7, lines 14 - 17: Delete all material. Renumber the following bill sections accordingly. Page 7, lines 24 - 25: Delete "30 percent of the adjusted gross income, as determined under (1) of this subsection, from a pull-tab activity or at least" Page 7, lines 26 - 27: Delete "from a gaming activity other than pull-tabs," Page 9, line 17: Delete "or pull-tab" Page 9, line 26: Delete "new subsections" Insert "a new subsection" 1993-04-19 Senate Journal Page 1493 SB 76 Page 9, lines 27 - 29: Delete all material Reletter the following subsection accordingly. Page 9, line 31: Delete "other than pull-tabs" Page 10, line 3: Delete ", LICENSE," Page 10, line 4: Delete "VENDOR REGISTRATION" Insert "LICENSE" Page 10, line 5: Delete ", license, or vendor registration" Insert "or license" Page 10, lines 6 - 7: Delete ", licensee, or vendor" Insert "or licensee" Page 10, lines 10 - 11: Delete ", licensee, or registered vendor" Insert "or licensee" Page 10, line 13: Delete ", licensee, or vendor" Insert "or licensee" Page 10, line 15: Delete ", licensee, or vendor" Insert "or licensee" Page 10, line 16: Delete "or, in the" 1993-04-19 Senate Journal Page 1494 SB 76 Page 10, lines 17 - 21: Delete all material Insert "." Page 10, line 22: Delete "or vendor registration" Page 10, line 23: Delete "or vendor" in two places. Page 10, line 24: Delete "registration" Page 10, following line 26: Insert a new bill section to read: "* Sec. 19. AS05.15.180(b) is amended to read: (b) With the exception of raffles, lotteries, bingo games, [PULL-TAB GAMES,] rain classics, goose classics, mercury classics, salmon classics, king salmon classics, and other activities authorized under AS 05.15.100(b), an activity may not be licensed under this chapter unless it existed in the state in substantially the same form and was conducted in substantially the same manner before January 1, 1959." Renumber the following bill sections accordingly. Page 11, line 16, through page 13, line 23: Delete all material. Renumber the following bill sections accordingly. Page 13, line 24: Delete "a new section" Insert "new sections" 1993-04-19 Senate Journal Page 1495 SB 76 Page 14, following line 11: Insert a new section to read: "Sec. 05.15.197. PULL-TAB GAMES PROHIBITED. (a) The sale, manufacture, or distribution of pull-tab games is prohibited. (b) In this section, "pull-tab game" means a game of chance where a card, the face of which is covered to conceal a number, symbol, or set of symbols, is purchased by the participant and where a prize is awarded for a card containing certain numbers or symbols designated in advance and at random." Page 14, line 15: Delete ", license, or vendor registration" Insert "or license" Page 14, lines 25 - 27: Delete all material. Renumber the following paragraphs accordingly. Page 15, line 8: Delete ";" Insert "." Page 15, lines 9 - 24: Delete all material. Page 15, line 25: Delete "and 05.15.140(c)" Insert "05.15.140(c), 05.15.181, 05.15.183, 05.15.184, 05.15.185, 05.15.187, 05.15.210(a), 05.15.210(28), and 05.15.210(34)" Page 15, line 26: Delete "12 and 16" Insert "13 and 17" 1993-04-19 Senate Journal Page 1496 SB 76 Page 15, line 28: Delete "12 and 16" Insert "13 and 17" Senator Kerttula moved for the adoption of Amendment No. 1. Senator Pearce objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSSB 76(FIN) Second Reading Amendment No. 1 YEAS: 10 NAYS: 10 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Kerttula, Leman, Lincoln, Little, Salo, Zharoff Nays: Frank, Halford, Jacko, Kelly, Miller, Pearce, Phillips, Rieger, Sharp, Taylor and so, Amendment No. 1 failed. Senator Little offered Amendment No. 2 : Page 2, line 24, following "registration;": Insert "prohibiting charitable gaming from occurring at any place with an alcoholic beverage license or permit except for a place holding a package store license;" Page 13, line 24: Delete "a new section" Insert "new sections" Page 14, following line 11: Insert a new section to read: "Sec. 05.15.197. CHARITABLE GAMING PROHIBITED AT CERTAIN PLACES WITH AN 1993-04-19 Senate Journal Page 1497 SB 76 ALCOHOLIC BEVERAGE LICENSE OR PERMIT. Notwithstanding any other provision of law, a charitable gaming activity may not be conducted at a place with an alcoholic beverage license or permit except for a place holding a package store license." Page 15, lines 14 - 23: Delete all material. Page 15, line 24: Delete "(ii)" Senator Little moved for the adoption of Amendment No. 2. Senator Pearce objected. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSSB 76(FIN) Second Reading Amendment No. 2 YEAS: 9 NAYS: 11 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo, Zharoff Nays: Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp, Taylor Taylor changed from "Yea" to "Nay". and so, Amendment No. 2 failed. Senator Little offered Amendment No. 3 : 1993-04-19 Senate Journal Page 1498 SB 76 Page 2, line 24, following "registration;": Insert "prohibiting charitable gaming from occurring more than once a year at any place having an alcoholic beverage license or permit except for package stores;" Page 13, line 24: Delete "a new section" Insert "new sections" Page 14, following line 11: Insert a new section to read: "Sec. 05.15.197. CHARITABLE GAMING PROHIBITED AT CERTAIN PLACES WITH AN ALCOHOLIC BEVERAGE LICENSE OR PERMIT. (a) Notwithstanding any other provision of law, except as provided in this section a charitable gaming activity may not be conducted at a place with an alcoholic beverage license or permit except for a place holding a package store license. (b) The department, upon application by a permittee, may authorize a permittee to conduct a charitable gaming activity no more than once each calendar year at a place with an alcoholic beverage license or permit other than a package store license." Page 15, lines 14 - 23: Delete all material. Page 15, line 24: Delete "(ii)" Senator Little moved for the adoption of Amendment No. 3. Senator Pearce objected. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: 1993-04-19 Senate Journal Page 1499 SB 76 CSSB 76(FIN) Second Reading Amendment No. 3 YEAS: 10 NAYS: 10 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Kerttula, Leman, Lincoln, Little, Salo, Zharoff Nays: Frank, Halford, Jacko, Kelly, Miller, Pearce, Phillips, Rieger, Sharp, Taylor Taylor changed from "Yea" to "Nay". and so, Amendment No. 3 failed. Senator Salo offered Amendment No. 4 : Page 1, line 1, following "Act": Insert "establishing a testing program for charitable gaming permittees and operators; relating to the duties of members in charge;" Page 3, following line 8: Insert new bill sections to read: "* Sec. 2. AS05.15.020(a) is amended to read: (a) A municipality or qualified organization may conduct an activity permitted under this chapter, if the municipality or qualified organization (1) applies for a permit, pays the appropriate permit fee, and receives an annual permit issued by the department; and (2) designates a member in charge and at least one alternate member in charge under AS05.15.112 who have passed the examination required by AS05.15.112 [THE ANNUAL PERMIT FEE IS (1) $20 FOR AN APPLICANT THAT DID NOT HOLD A PERMIT DURING THE PRECEDING 1993-04-19 Senate Journal Page 1500 SB 76 YEAR; (2) $20 FOR AN APPLICANT THAT HAD GROSS RECEIPTS OF LESS THAN $20,000 FROM ACTIVITIES CONDUCTED UNDER THIS CHAPTER DURING THE PRECEDING YEAR; (3) $50 FOR AN APPLICANT THAT HAD GROSS RECEIPTS OF $20,000 OR MORE BUT NOT EXCEEDING $100,000 FROM ACTIVITIES CONDUCTED UNDER THIS CHAPTER DURING THE PRECEDING YEAR; OR (4) $100 FOR AN APPLICANT THAT HAD GROSS RECEIPTS EXCEEDING $100,000 FROM ACTIVITIES CONDUCTED UNDER THIS CHAPTER DURING THE PRECEDING YEAR]. * Sec. 3. AS05.15.020 is amended by adding a new subsection to read: (c) The annual permit fee under (a) of this section is (1) $20 for an applicant that did not hold a permit during the preceding year; (2) $20 for an applicant that had gross receipts of less than $20,000 from activities conducted under this chapter during the preceding year; (3) $50 for an applicant that had gross receipts of $20,000 or more but not exceeding $100,000 from activities conducted under this chapter during the preceding year; or (4) $100 for an applicant that had gross receipts exceeding $100,000 from activities conducted under this chapter during the preceding year." Renumber the following bill sections accordingly. Page 6, following line 19: Insert a new bill section to read: "* Sec. 10. AS05.15.112(a) is repealed and reenacted to read: (a) Each municipality or qualified organization that 1993-04-19 Senate Journal Page 1501 SB 76 applies for a permit under this chapter shall designate a member in charge and at least one alternate member in charge. The member in charge and alternate members in charge designated must have passed a test formulated by the department on the contents of this chapter and the regulations adopted under this chapter. The department shall administer the test at least four times a year. Municipalities and qualified organizations that hold a multiple beneficiary permit shall jointly designate one member in charge and at least one alternate member in charge." Renumber the following bill sections accordingly. Page 6, following line 27: Insert a new bill section to read: "* Sec. 12. AS05.15.112(b) is repealed and reenacted to read: (b) The member in charge is responsible for preparation, maintenance, and transmittal of all records and reports required of the permittee, and, if the permittee has entered into a contract with an operator under AS05.15.115, for monitoring the operator's performance under and compliance with that contract. The alternate members in charge are responsible for the duties of the member in charge in the absence of the member in charge. The member in charge and the alternate members in charge shall be members of the qualified organization or the board of directors of the qualified organization or employees of the municipality. In the case of a multiple beneficiary permit, the member in charge and the alternate members in charge shall be members of one of the qualified organizations of the board of directors of one of the qualified organizations or employers of one of the municipalities." Renumber the following bill sections accordingly. Page 6, following line 31: Insert a new bill section to read: 1993-04-19 Senate Journal Page 1502 SB 76 "* Sec. 14. AS05.15.112 is amended by adding a new subsection to read: (e) If a permittee's designated member in charge or sole alternate member in charge resigns or is no longer able to serve as member in charge or alternate member in charge, the permittee has six months to replace the member in charge or alternate member in charge with a person who meets the requirements of this section, and to notify the department of the replacement. If after six months the permittee has not replaced the member in charge or alternate member in charge with a person who meets the requirements of this section, or has not notified the department of the replacement, the permittee's permit is suspended until the requirements of this subsection are met." Renumber the following bill sections accordingly. Page 7, following line 13: Insert a new bill section to read: "* Sec. 16. AS05.15.122(b) is amended to read: (b) The department may issue an operator's license to a natural person, municipality, or qualified organization that (1) applies on the form provided by the department; (2) pays the annual fee of $500; (3) discloses the identity of persons employed by the applicant in a managerial or supervisory capacity; (4) submits proof of liability insurance satisfactory to the department; [AND] (5) posts a bond or security satisfactory to the department in the amount of $25,000 for each permit 1993-04-19 Senate Journal Page 1503 SB 76 under which the operator operates up to a maximum of $100,000; and (6) if a natural person, has passed a test formulated by the department on the contents of this chapter and the regulations adopted under this chapter and administered by the department at least four times a year; or, if a municipality or qualified organization, has designated a municipal employee or member of the organization who has passed this test." Renumber the following bill sections accordingly. Page 15, following line 25: Insert a new bill section to read: "* Sec. 37. TRANSITIONAL PROVISION. The Department of Commerce and Economic Development shall prepare the tests required by AS05.15.112(a), as amended by sec. 10 of this Act, and by AS05.15.122(b), as amended by sec.16 of this Act, so that they may first be offered no later than January 1994." Page 15, line 26: Delete "12 and 16" Insert " 2, 3, 10, 12, 14, 16, 18, and 22" Page 15, line 28: Delete "12 and 16" Insert "18 and 22" Page 15, following line 28: Insert a new bill section to read: "* Sec. 40. Sections 2, 3, 10, 12, 14, and 16 of this Act take effect January 1, 1995." Renumber the following bill section accordingly. 1993-04-19 Senate Journal Page 1504 SB 76 Senator Salo moved for the adoption of Amendment No. 4. Senator Pearce objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSSB 76(FIN) Second Reading Amendment No. 4 YEAS: 9 NAYS: 11 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo, Zharoff Nays: Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp, Taylor and so, Amendment No. 4 failed. Senator Duncan offered Amendment No. 5 : Page 2, line 11: Delete "30" Insert "40" Page 2, line 12: Delete "70" Insert "60" Page 2, line 14: Delete "10" Insert "15" Page 2, line 15: Delete "90" Insert "85" 1993-04-19 Senate Journal Page 1505 SB 76 Page 7, line 24: Delete "30" Insert "40" Page 7, line 25: Delete "10 [15]" Insert "15" Page 9, line 28: Delete "70" Insert "60" Page 10, line 1: Delete "90" Insert "85" Senator Duncan moved for the adoption of Amendment No. 5. Senator Pearce objected. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: CSSB 76(FIN) Second Reading Amendment No. 5 YEAS: 9 NAYS: 11 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo, Zharoff Nays: Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp, Taylor and so, Amendment No. 5 failed. Senator Zharoff offered Amendment No. 6 : 1993-04-19 Senate Journal Page 1506 SB 76 Page 1, line 9, following "games;": Insert "relating to display boards for sales of pull-tab series;" Page 12, following line 12: Insert a new subsection to read: "(j) For each pull-tab series offered for sale, a display board shall be provided at the place of sale that lists all of the prizes of $50 or more that are available in the series. As a prize of $50 or more is won, the prize shall be removed from the display board." Senator Zharoff moved for the adoption of Amendment No. 6. Senator Pearce objected, then withdrew her objection.