Legislature(2025 - 2026)BELTZ 105 (TSBldg)
01/26/2026 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB78 | |
| SB170 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 78 | TELECONFERENCED | |
| += | SB 170 | TELECONFERENCED | |
SB 170-GAMING; ELECTRONIC PULL-TABS
1:46:51 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."
1:47:30 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, presented a brief recap of SB 170
and stated that SB 170 would legalize electronic pull tabs in
Alaska, with a few minor cleanup changes. Rising inflation has
increased paper pull tab costs from about half a cent to 47
cents, significantly reducing nonprofit margins. SB 170 would
add electronic pull tabs as a lower-cost supplement to paper
versions, aiming to improve nonprofit profitability while
keeping paper pull tabs in place.
1:49:34 PM
CHAIR BJORKMAN solicited a motion.
1:49:37 PM
SENATOR MERRICK moved to adopt the committee substitute (CS) for
SB 170, work order 34-LS-0213\T, as the working document.
1:49:49 PM
CHAIR BJORKMAN objected for purposes of discussion.
1:49:53 PM
MR. JACKSON presented the summary of changes from version I to
version T for SB 170.
[Original punctuation provided.]
Summary of Changes ver. I to ver. \T
Section 4. Inserted new section. Amends AS
05.15.080(b) requires the annual reports to the
department include the source and monetary value of
marketing or promotional material received from a
distributor.
The following sections are renumbered accordingly.
Section 20. AS 05.15.180(e) is amended to clarify that
the top prize for a bingo session may not be more than
$10,000 and not more than $2500 for a bingo game. The
total value of all door prizes may not exceed $40,000
per month or $480,000 per year. Drafting convention
changes were made to paragraphs 1, 2 & 3.
Section 25. Amends new AS 05.15.181:
Subsection (g) is amended to prohibit a manufacturer
from providing or receiving gifts or anything of
value.
Amends subsection (i) to prohibit a manufacturer from
distributing electronic pull-tabs to a distributor if
an ownership interest in that distributor is held by
the manufacturer.
1:51:45 PM
MR. JACKSON continued with the summary of changes for SB 170:
Section 26. AS 05.15.183(a) is further amended to
prohibit the issuance of an electronic pull-tab
endorsement to a distributor's license should an
ownership interest be held by a manufacturer, a parent
or sister company or subsidiary of a manufacturer. (Pg
12 ln 18-20)
Section 29. AS 05.15.183(h) is amended:
(8) Removed the term "subsidiary".
(9) Restricts distribution of electronic pull-tabs by
a distributor from a manufacturer referenced in AS
05.15.181(i). (Pg 10, ln 25 to Pg 11, line 1)
Inserts new paragraph (10) Specifying a distributor
may not distribute a pull-tab game to a permitee or
licensee that is owned or managed by a close relative
of an owner or employee of the distributor.
Amends (j) by adding a reporting requirement for all
marketing or promotional items provided under this
subsection to include the value and location where the
items will be used or displayed. (Pg 14, ln 1215)
Amends (m) specifying a contract may not include an
incentive or bonus and there may not be a penalty
based on the length of the contract. (Pg 14, ln 25-27)
Section 32. Amends AS 05.15.186 (e) to specify the
ideal payout may not exceed 90%. Senate Bill 170 - 34-
LS0213\ver I to ver T
Section 37. Amends AS 05.15.187
(j) to require the designated person in charge must be
onsite and provide direct oversight of the gaming
system(s). (Pg 17, ln 29-30)
Amends (k) changing optional limits on tablets in play
to mandatory limits. Adds an alternate method of
calculating the number of tablets which may in play on
a premises (based on occupancy or 10 tablets,
whichever is greater).
Former paragraph (n) is deleted and the remaining
paragraph is re-lettered.
Amends re-lettered (n) to remove $250 gift cap. (No
gifts may be accepted.)
1:54:54 PM
MR. JACKSON continued with the summary of changes for SB 170:
Section 41. Amends AS 05.15.188
(l) establishing permitee payout to a vendor for
electronic pull-tabs may not be more than 25 percent.
(q) is amended to require monthly payments by a vendor
to a permitee be made not later than the 15th day of
the month for the previous month's sales. Allows a
distributor to assist a vendor in the transfer of
these payments subject to department approval. Grants
the department authority to adopt appropriate
regulations.
(t) is amended to remove $250 gift cap. (No gifts may
be accepted.)
Section 47. AS 05.15.690(40) is amended to expand the
definition of a "qualified organization" to add a
school-based booster club in existence for less than
three years if the club is supporting an activity
which has been in existence for three years prior to
application. (Pg 21, ln 10-15)
Section 51. Conforming changes.
Section 52. Adds new transition section to permit
adoption of regulations by the department.
Following sections are renumbered.
Section 53. Adds immediate effective date for Sec. 52.
Sections 54 and 55. Conforming changes.
1:57:34 PM
SENATOR DUNBAR noted that [version T], Section 20, increases the
limits from $20,000 to $40,000 per month and from $240,000 to
$480,000 per year, effectively doubling them to account for
inflation. He said Section 4, "Amends [AS 05.15.080(b)] require
annual reports to the department, include the source and
monetary value of marketing or promotional material received
from a distributor" and asked why tracking those promotional
items is necessary.
1:58:33 PM
MR. JACKSON replied that tracking promotional items relates to
removing the $250 cap on gifts by eliminating gifts altogether
while still allowing marketing and promotional materials. He
said Section 4 requires that the source and value of those
marketing and promotional materials be reported to the
department.
SENATOR DUNBAR asked who receives the materials from the
distributor.
MR. JACKSON replied that the materials are coming from a vendor
to a licensee.
SENATOR DUNBAR asked why the state is concerned about where the
materials come from.
MR. JACKSON replied this section relates to gifts. The goal is
to eliminate gifts to ensure that anything of monetary value is
tracked to prevent improper or unethical activity.
SENATOR DUNBAR stated that the concern is whether a distributor
could use gifts to encourage vendors to carry only its products,
potentially pushing competitors out of the market. He asked
whether less scrupulous activities lead to monopolistic
behavior.
MR. JACKSON replied that one concern is that gifts could create
the appearance of buying influence to place a particular
company's pull tabs in a business. He said promotional and
marketing materials are common in most industries, though the
goal is to avoid perceived influence.
2:01:29 PM
CHAIR BJORKMAN commented that limits on vertical integration,
gifts, and exclusivity are intended to maximize competition
among manufacturers and distributors, which helps protect and
maximize the profits of nonprofit organizations. He said
allowing significant inducements or market control by one
supplier could raise costs and the ability of charities to
generate revenue. Charitable gaming in Alaska exists to fund
nonprofits, not to maximize private profit, so strict statutory
guidelines are necessary to protect the public interest.
2:03:38 PM
CHAIR BJORKMAN removed his objection; found no further objection
and CSSB 170 was adopted as the working document.
2:03:52 PM
CHAIR BJORKMAN held SB 170 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB170 Draft Proposed CS ver T.pdf |
SL&C 1/26/2026 1:30:00 PM |
SB 170 |
| SB170 Summary of Changes ver I to ver T.pdf |
SL&C 1/26/2026 1:30:00 PM |
SB 170 |
| SB170 Fiscal Note DOR-TAX 01.23.26.pdf |
SL&C 1/26/2026 1:30:00 PM |
SB 170 |
| SB170 Public Testimony-Letter-Alaska Laborers 05.06.25.pdf |
SL&C 1/26/2026 1:30:00 PM |
SB 170 |
| HB78 Draft Proposed CS ver G.pdf |
SL&C 1/26/2026 1:30:00 PM |
HB 78 |
| HB78 Summary of Changes ver I.A to ver G.pdf |
SL&C 1/26/2026 1:30:00 PM |
HB 78 |
| HB78 Presentation to SLAC by Dan Doonan 01.26.26.pdf |
SL&C 1/26/2026 1:30:00 PM |
HB 78 |