Legislature(2025 - 2026)BELTZ 105 (TSBldg)
04/16/2025 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB89 | |
| SB170 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 89 | TELECONFERENCED | |
| *+ | SB 170 | TELECONFERENCED | |
SB 170-GAMING; ELECTRONIC PULL-TABS
2:25:41 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 170 "An Act relating to gaming;
relating to bingo; relating to pull-tabs and electronic pull-
tab systems; and providing for an effective date."
2:25:59 PM
CHAIR BJORKMAN speaking as sponsor presented a summary of SB 170
and stated that the legislation aims to modernize and reform
Alaska's charitable gaming statutes after years of work and
stakeholder input. SB 170 builds on previous efforts by the
governor's administration and addresses challenges facing
nonprofits. He said paper pull tabs are now four to five times
higher in price and have severely reduced the profit margin
charities rely on, as most games return 8590 percent of revenue
to players. SB 170 seeks to restore the ability of charitable
organizations' to generate funds from gaming. He said the goal
is to ensure charitable gaming continues to benefit nonprofits,
such as youth sports, senior centers, and other community
organizations.
2:28:41 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, provided the sectional analysis for
SB 170:
[Original punctuation provided.]
SB 170 Gaming; Electronic Pull-Tabs
Ver. \I
This is a summary only. Note that this summary should
not be considered an authoritative interpretation of
the bill and the bill itself is the best statement of
its contents.
Section 1: Amends AS 05.15.030(a) Required notices
applicant, permittee, or licensee; Removing the notice
requirement to the nearest municipality by an
applicant, permittee, or licensee.
Section 2: Amends AS 05.15.030(c) Required notices
applicant, permittee, or licensee; Removing the notice
requirement to "the local government."
Section 3: Amends AS 05.15.070 Investigations;
Granting the department authority to investigate
licensed and unlicensed gaming operations as well as
administer civil penalties.
Section 4: Amends AS 05.15.083 Reports to departments
by operators; Removing certain reporting requirements
from operator reports to the department.
Section 5: Amends AS 05.15.087(a) Operator's reports
to permittee and payment of net proceeds; Removing the
requirement that the monthly report include a daily
summary of activity and the requirement that expenses
be included in the report. Adds prize payouts to the
list of information to be reported. Adds electronic
funds transfer as an acceptable form of payment by an
operator.
Section 6: Amends AS 05.15.105(b) Persons prohibited
from involvement; Adding a reference to new paragraph
(c) of this section.
Section 7: Amends AS 05.15.105 Persons prohibited from
involvement; Adding a new paragraph (c) prohibiting
the issuance of a license to a manufacturer or
distributor if a parent company, sister company or
subsidiary of the manufacturer has been convicted of a
violation of a law that would disqualify the parent
company, sister company or subsidiary under this
section.
2:30:56 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 8: Amends AS 05.15.115(b) Contracts between
permittees and operators; Adding authorization for an
operator to pool permittees and divide the income and
payouts among permittees on a percentage basis at the
end of each month.
Section 9: Amends AS 05.15.115(d) Contracts between
permittees and operators; Transferring the contract
submittal requirement from the permittee to the
operator. Changes the required method of submission of
contracts to the department for approval from
certified mail to electronic submission. \
Section 10: Amends AS 05.15.122 Operator's license;
Adding two new subsections.
(e) Permitting an operator to conduct electronic
pull-tab activities on behalf of a municipality or a
qualified organization if the operator has been issued
an electronic pull-tab endorsement, and establishing
requirements that must be met for the operator to
receive an electronic pull-tab endorsement.
(f) Allowing for the designation of a temporary
party to conduct activities for 120 days should an
operator die.
Section 11: Amends AS 05.15.122(e) Operator's license;
Removing from the language created in Section 10 of
this bill the requirement of an operator to conduct
pull-tabs for the preceding three years on January 1,
2031. The effective date is found in Section 51 of
this bill.
Section 12: Amends AS 05.15.128(a) Revocation of an
operator's license; Removing the minimum 15 percent of
annual gross income requirement as a trigger for
license revocation. Adds new paragraph 2 relating to
multiple-beneficiary permit payments and reporting as
an additional trigger for license revocation.
Section 13: Amends AS 05.15.165(a) Operators; Adding
electronic funds transfer as an acceptable form of
payment to a permittee.
2:33:17 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 14: Amends AS 0515.165(c) Operators; Allowing
a sign to be posted directing individuals to a website
where required information is available in place of an
actual informational sign.
Section 15: Amends AS 05.15.170(a); Suspension or
revocation of permit, license, or vendor registration;
Adding that a permit, license or vendor registration
may be suspended or revoked upon conviction of the
owner or manager of a parent company, sister company
or subsidiary of the licensee or vendor.
Section 16: Amends AS 05.15.170 Suspension or
revocation of permit, license, or vendor registration;
Adding new subsections.
(c) Requires notification by the department to an
operator of the suspension or revocation of a permit,
license or vendor registration be via electronic mail
and shall be posted on a publicly accessible website
created for citizens to interact with multiple state
services. (e.g., myAlaska)
(d) Requires notification by the department to a
manufacturer of the suspension or revocation of a
distributor and that notice shall be via electronic
mail and shall be posted on a publicly accessible
website created for citizens to interact with multiple
state services. (e.g. myAlaska)
Section 17: Amends AS 05.15.180(b) Limitations on
authorized activity; Adding electronic pull-tabs to
the authorized gaming activities in the state.
Section 18: Amends AS 05.15.180(d) Limitations on
authorized activity; Increasing the maximum monthly
and annual value of door prizes which may be offered
by municipality, a qualified organization or under
authority of a multiple-beneficiary permit.
2:35:08 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 19: Amends AS 05.15.180(e) Limitations on
authorized activity; Requiring the department adopt
regulations setting bingo game prize limits. Increases
the maximum monthly and annual value of door prizes
which may be offered by a bingo hall or parlor.
Establishes that an operator may offer progressive
bingo games and establishes how progressive bingo
gross receipts and prizes be carried over to another
game and how prizes are awarded.
Section 20: Amends AS 05.15.180(f) Limitations on
authorized activity; Specifies no person under 18
years of age may play bingo.
Section 21: Amends AS 05.15.180(g) Limitations on
authorized activity; Removing the $500,000 prize cap
from municipalities and qualified organizations who
contract with an operator. Excludes electronic
pulltabs from the provisions in this subsection.
Section 22: Amends AS 05.15.180 Limitations on
authorized activity; Adding two new subsections:
(i) Sets the annual prize limit for a
municipality or qualified organization at
$4,000,000 for electronic pull-tabs. Sets the
annual prize limit for a multiple-beneficiary
permit to $4,000,000 times the number of holders
of the permit for electronic pull-tabs.
(j) Grants the department the option to increase,
by regulation, the prize amount in (g) and (i) of
this section by up to 10 percent, once every five
years.
Section 23: Amends AS 05.15.181(d) Pull-tab
manufacturers; Clarifying that a pull-tab manufacturer
may distribute pull-tabs only to a licensed
distributor.
2:36:57 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 24: Amends AS 05.15.181 Pull-tab
manufacturers; Adding twelve new subsections
(f) Prohibiting a pull-tab manufacturer from
modifying or paying for modifications to a building to
accommodate gaming activities.
(g) Prohibits a manufacturer, an owner or
employee of a manufacturer, a close family member of a
manufacturer, or a parent, sister, or subsidiary
company from giving gifts or other things of value to
a vendor, operator, permittee or qualified
organization with a total value of more than $250 per
calendar year.
(h) Requires a pull-tab manufacturer have a
separate endorsement on their license prior to
distributing an electronic pull-tab system in the
state. Requires electronic games be tested and
certified by an independent gaming testing laboratory
prior to distribution.
(i) Prohibits a manufacturer from distributing
pull-tabs if a manufacturer, an owner or employee of
the manufacturer or a close family member of an owner
or employee of the manufacturer or a parent company,
sister company or subsidiary of the manufacturer holds
an interest in the distributor.
(j) Establishes criteria under which a
manufacturer may refuse to sell gaming equipment or
paper pull-tabs to a licensed distributor.
(k) Establishes subsection (j) is not applicable
to application software and computer programs and
equipment used in production, playing and reporting of
approved pull-tab games.
(l) Requires a manufacturer provide the same
prices and quantity requirements for paper pull-tabs
to each distributor.
(m) Clarifies terms under which a manufacturer
may restrict the sale of exclusive pull-tab games.
(n) Requires a manufacturer submit to the
department a copy of each contract with a distributor
within seven days of signing.
(o) Restricts point-of-sale data from paper
tickets and bingo.
(p) Prohibits issuance of a manufacturer's
license to a person otherwise prohibited under AS
05.15.105.
(q) Prohibits connection of the price or
availability of a paper to an electronic pull-tab game
and vice-versa.
2:39:42 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 25: Amends AS 05.15.183(a) Pull-tab
distributors; Requiring a distributor have a license
to distribute electronic pull-tab systems. Prohibits
the issuance of a distributor's license by the
department if the person is licensed as an operator or
participates in another aspect of the manufacture or
sale of pull-tabs.
Section 26: Amends AS 05.15.183(c) Pull-tab
distributors; Adding that electronic pull-tab systems
may only be distributed from a location within the
state.
Section 27: Amends ASA 05.15.183(e) Pull-tab
distributors; Establishes that a distributor may
deliver electronic pull-tab series directly to a
vendor.
2:40:31 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 28: Amends AS 05.15.183 Pull-tab distributors;
Adding eight new subsections.
(f) Establishes a distributor must have an
electronic pull-tab endorsement prior to distributing
an electronic pull-tab system.
(g) Prohibits issuance of a distributor's license
to a person otherwise prohibited under AS 05.15.105.
(h) Establishes restricted actions of a
distributor.
(1) Prohibits gifts, compensation or other
things of value greater than $25 to a
municipality or qualified organization, or an
employee or agent of a municipality or
qualified organization.
(2) Prohibits modification of a building for
the purposes of accommodating a gaming system,
including electrical work or utility
connection.
(3) Prohibits giving compensation or a thing of
value to an owner or lessor of a gaming
premises.
(4) Prohibits participation in gaming
activities at a premises using equipment from
that distributor.
(5) Prohibits alteration of modification of
gaming equipment, except to add a last sale
sticker.
(6) Prohibits obtaining or using point-of-sale
information.
(7) Prohibits connection of the price or
availability of a paper to an electronic pull-
tab game and vice-versa.
(8) Prohibits a distributor from being an
owner, shareholder or subsidiary of a
manufacturer.
(9) Restricts distribution of a pull-tab game
to a permittee or licensee owned or managed by
a person within two degrees of consanguinity to
an owner or employee of a distributor.
(i) Requires electronic pull-tabs meet the
requirements of AS 05.15.186.
(j) Allows up to $250 a year in marketing and
promotional materials may be provided to a qualifying
permit holder.
(k) Requires a distributor submit copies of
contracts with a permittee, multiple-beneficiary
permittee, vendor or operator to the department.
(l) Requires the department provide a serialized
stamp to a distributor and requires tablets be
stamped.
2:43:21 PM
SENATOR DUNBAR asked if there was a draft of the sectional
summary online.
CHAIR BJORKMAN replied no.
SENATOR DUNBAR noted that laws should be understandable to the
public and questioned the use of the obscure term
"consanguinity" instead of "blood relative." He suggested
consulting the drafter to consider using clearer, more common
language in future legislation.
2:44:38 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 29: Amends AS 05.15.185 Distribution of pull-
tabs; Updating serial number and integrity
requirements to apply to electronic pull-tabs as well
as paper. Allows for distribution of electronic pull-
tab games to a vendor under 05.15.183(e).
Section 30: Amends AS 05.15.185 Distribution of pull-
tabs; Adding three new subsections:
(b) Establishes additional requirements for
electronic pull-tabs.
(c) Limits electronic pull-tab games to a maximum
of 15,000 tickets.
(d) Requires the cost of each ticket for a paper
pull-tab game be disclosed on the invoice.
Section 31: Amends AS 05.15 by adding a new section:
AS 05.15.186 Electronic pull-tabs. The new language
provides for the physical characteristics of
electronic pull-tab devices, their operation, and
security. The acceptance of credit cards, dispensing
anything of value, and any visuals that mimic the
spinning reels of a slot machine are all prohibited.
Pull-tab machines must display the serial number or
series of numbers for an electronic pull-tab, the
display, and any prize awarded and may automatically
close when all winning tickets have been played. The
new language sets limits for payouts, fees at 35
percent of gross receipts, and prohibits linking the
ability to purchase paper pull-tabs or prices to
electronic pull-tabs
Section 32: Amends AS 05.15.187(d) Operation of pull-
tab games; Clarifying that the provisions in this
subsection apply only to paper pull-tabs.
2:46:33 PM
MR. JACKSON continued with the sectional analysis for SB 170:
Section 33: Amends AS 05.15.187(e) Operation of pull-
tab games; Specifies no person under 18 years of age
may access pull-tabs.
Section 34: Amends AS 05.15.187(f) Operation of pull-
tab games; Adding language specifying that the current
record-keeping requirements for permittees in this
subsection apply to paper pull-tabs and adding
language with requirements for record keeping for
electronic pull-tabs.
Section 35: Amends AS 05.15.187(i) Operation of pull-
tab games; Clarifying that the provisions in this
subsection apply only to paper pull-tabs and
increasing from $50 to $100 the prize amount at or
above which a prize winner is required to sign a
receipt.
Section 36: Amends AS 05.15.187 Operation of pull-tab
games; Adding six new subsections. Requires
designation of a person at an operation who is
responsible for overseeing pull-tabs. Allows the
department to limit the number of electronic pull-tab
machines at a location to one tablet for every six
people who may occupy the premises. Prohibits owners,
employees, and those who have access to electronic
pull-tab status reports from playing paper or
electronic pull-tabs at a location. Prohibits those
who operate or benefit from pull-tab sales from
receiving gifts from manufacturers or from individuals
or companies connected to manufacturers in excess of
$250 in a calendar year.
Section 37: Amends 05.15.188(g) Pull-tab sales by
vendors on behalf of permittees; vendor registration;
Adding the option for an alternate member in charge of
pull-tab operations and specifying that the provisions
in this subsection apply only to paper pull-tabs.
2:48:57 PM
MR. JACKSON continued with the sectional analysis for SB 170:
Section 38: Amends 05.15.188(h) Pull-tab sales by
vendors on behalf of permittees; vendor registration;
Clarifying that the provisions in this subsection
apply only to paper pull-tabs.
Section 39: Amends 05.15.188(i) Pull-tab sales by
vendors on behalf of permittees; vendor registration;
Adding the option for an alternate member in charge of
pull-tab operations to accept vendor payments,
specifying that the provisions in this subsection
apply only to paper pull-tabs, and allowing for
electronic payments from vendors to permittees.
Section 40: Amends 05.15.188 Pull-tab sales by vendors
on behalf of permittees; vendor registration; Adding
nine new subsections. Provides a permittee - vendor
contractual limit of 30 percent of gross receipts less
the prize payouts. Limits vendor locations to selling
only paper pull-tabs and electronic pull-tabs on
portable devices. Specifies vendors monthly reporting
requirements, and weekly payment schedule. Allows for
a vendor to pool permittees, specifies that cash
shortages are the vendor's responsibility, and
prohibits registration of vendors that are prohibited
under AS 05.15.105. Also prohibits vendors from
receiving gifts of more than $250 in a year from
manufacturers or from individuals or companies
connected to manufacturers.
Section 41: Amends AS 05.15.640(a) Restrictions on use
of broadcasting; online gaming; Removing the
prohibition on using broadcasting to promote a
charitable gaming activity.
Section 42: Amends AS 05.15.640(c) Restrictions on use
of broadcasting; online gaming; Adding language
defining "internet" and "internet communication" for
the purpose of conducting charitable gaming activities
as allowed under this subsection.
Section 43: Amends 05.15.690(1) Definitions; Adding
taxes collected under AS 05.15.184 to adjustments that
may be made to gross income.
2:51:15 PM
MR. JACKSON continued with the sectional analysis for SB 170:
Section 44: Amends 05.15.690(33) Definitions; Removing
restrictions on what is an allowed expense against
gross receipts.
Section 45: Amends 05.15.690(39) Definitions; Adding
electronic representation of a card to the definition
of pull-tab game, allowing for electronic pull-tabs.
Section 46: Amends 05.15.690(40) Definitions; Adding
school-based extracurricular or co-curricular booster
clubs to the list of qualified organizations that may
benefit from pull-tab operations.
Section 47: Amends 05.15.690(46) Definitions; Adding
electronic pull-tab serial numbers to the definition
of serial numbers.
Section 48: Amends 05.15.690 Definitions; Adding
definitions for "distributor," "electronic pull-tab
systems," "immediate family member" and
"manufacturer."
Section 49: Repeals statutes requiring regulations be
consistent with the North American Gaming Regulators
Association, limiting permittees to contracting with
only one operator, requiring permittees to use
proceeds within one year, repealing the list of
allowed expenses against revenue from pull-tab
operations, repeals penalty language for operators
claiming unauthorized expenses, repeals language
allowing the department to authorize non-commercial
stations to broadcast limited conduction of gaming
activity, and repeals the definition of "internet" and
"internet connection" in this section.
Section 50: Provides that AS 05.15.183(m) only applies
to contracts entered into on or after January 1, 2026.
Section 51: Provides an effective date of January 1,
2031 for Section 11 of the bill, repealing the
requirement that new electronic pull-tab vendors have
three years of experience providing paper pull-tabs to
venues in Alaska.
Section 52: Provides an effective date of January 1,
2026 for all other sections of the bill.
2:54:02 PM
CHAIR BJORKMAN noted an oversight in Section 40 of the sectional
analysis for SB 170, which sets limits on vendor revenue: 30
percent for paper pull tabs and 25 percent for electronic pull
tabs. The lower limit for electronic pull tabs reflects higher
revenue potential and reduced employee burden, consistent with
experiences in other states.
2:55:37 PM
CHAIR BJORKMAN held SB 170 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB170 ver I.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 170 |
| SB170 Sponsor Statement ver I.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 170 |
| SB170 Sectional Summary ver I.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 170 |
| SB170 Fiscal Note DOR-TAX 04.14.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 170 |
| SB89 Public Testimony-combined 03.10 and 03.12.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Email Rachel Samuelson 03.14.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Email-Delissa Culpeppper 04.15.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Email-Emily Olsen 03.13.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Letter-AK Academy of Family Physicians 03.14.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Letter-AK Academy of Pediatrics 03.13.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Letter-AK State Medical Board-REVISED 03.21.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |