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CS FOR HOUSE BILL NO. 200(L&C)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - SECOND SESSION
BY THE HOUSE LABOR AND COMMERCE COMMITTEE
Offered: 4/1/24
Referred: Finance
Sponsor(s): HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR
A BILL
FOR AN ACT ENTITLED
"An Act relating to charitable gaming; and relating to pull-tabs and electronic pull-tab 1
systems." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 05.15.070 is amended to read: 4
Sec. 05.15.070. Examination of books and records. The department may 5
examine or have examined the books and records of a permittee, an operator, a 6
registered vendor, or a person licensed to manufacture or to distribute pull-tab games 7
or electronic pull-tab systems in the state. The department may issue subpoenas for
8
the attendance of witnesses and the production of books, records, and other 9
documents. 10
* Sec. 2. AS 05.15.083 is amended by adding a new subsection to read: 11
(c) For a report required by this section, an operator may file one report for not 12
more than 10 authorizing permittees who conduct activities at the same location. The 13
operator may allocate taxes, prizes, and expenses in the same proportion that it 14 33-GH1054\U
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allocates gross receipts among the authorizing permittees. An operator may not 1
allocate to an authorizing permittee more than the annual prize limit for the 2
authorizing permittee under AS 05.15.180(g). 3
* Sec. 3. AS 05.15.115(b) is amended to read: 4
(b) The contract between an authorizing permittee and an operator must 5
include the amount and form of compensation to be paid to the operator, the term of 6
the contract, the activities to be conducted by the operator on behalf of the permittee, 7
the location where the activities are to be conducted, the name and address of the 8
member in charge, and other provisions the department may require. A contract 9
between an authorizing permittee and an operator may allow the operator to 10
pool permittees and divide the gaming income and payouts among permittees on 11
a percentage basis. A contract for paper pull-tabs must require the operator to 12
pay an authorizing permittee a minimum of 30 percent of the adjusted gross 13
income. A contract for electronic pull-tabs must require the operator to pay an 14
authorizing permittee a minimum of 30 percent of the adjusted gross income. 15
* Sec. 4. AS 05.15.115(c) is amended to read: 16
(c) A permittee may not contract with more than one operator at a time to 17
conduct the same type of activity. For the purposes of this subsection, bingo games, 18
raffles, lotteries, pull-tab games, electronic pull-tab systems, freeze-up classics, ice 19
classics, race classics, rain classics, goose classics, mercury classics, deep freeze 20
classics, canned salmon classics, salmon classics, king salmon classics, dog mushers' 21
contests, snow classics, snow machine classics, fish derbies, animal classics, crane 22
classics, cabbage classics, big bull moose derbies, and contests of skill are each a 23
different type of activity. 24
* Sec. 5. AS 05.15.122 is amended by adding a new subsection to read: 25
(e) An operator licensed under this section may conduct electronic pull-tab 26
activities on behalf of a municipality or a qualified organization only if the department 27
has issued a separate electronic pull-tab endorsement to the operator's license for 28
electronic pull-tab systems. The department may issue an electronic pull-tab 29
endorsement if 30
(1) the operator has filed all reports required under AS 05.15.087; 31 33-GH1054\U
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(2) the operator's license has not been revoked by the department in the 1
immediately preceding five years; and 2
(3) the operator has conducted pull-tab games on behalf of a 3
municipality or a qualified organization for at least the preceding three years. 4
* Sec. 6. AS 05.15.180(a) is amended to read: 5
(a) Unless expressly authorized by the department, this [THIS] chapter 6
does not authorize the use of playing cards, dice, roulette wheels, coin-operated 7
instruments or machines, or other objects or instruments used, designed, or intended 8
primarily for gaming or gambling, or any other method or implement [NOT 9
EXPRESSLY AUTHORIZED BY THE DEPARTMENT]. 10
* Sec. 7. AS 05.15.180(b) is amended to read: 11
(b) With the exception of raffles, lotteries, bingo games, pull-tab games, 12
electronic pull-tab systems, freeze-up classics, race classics, rain classics, goose 13
classics, mercury classics, deep freeze classics, dog mushers' contests, snow classics, 14
snow machine classics, canned salmon classics, salmon classics, animal classics, crane 15
classics, cabbage classics, Calcutta pools, big bull moose derbies, and king salmon 16
classics, a permit may not be issued for an activity under this chapter unless it existed 17
in the state in substantially the same form and was conducted in substantially the same 18
manner before January 1, 1959. A permit may not be issued for a snow machine 19
classic under this chapter unless it has been in existence for at least five years before 20
the permit is issued. A permit may not be issued for an animal classic under this 21
chapter unless it was in existence before November 1, 2002. 22
* Sec. 8. AS 05.15.180(g) is amended to read: 23
(g) A municipality or a qualified organization may award a maximum of 24
$2,000,000 in prizes each year in activities, other than electronic pull-tab activities, 25
authorized under this chapter. If a municipality or a qualified organization 26
conducts electronic pull-tabs activities, the municipality or qualified organization 27
may award a maximum of $3,000,000 in prizes each year for electronic pull-tab 28
activities. If [; HOWEVER, IF] a municipality or a qualified organization contracts 29
with an operator to conduct on its behalf activities authorized under this chapter, the 30
municipality or qualified organization may award a maximum of $3,000,000 31 33-GH1054\U
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[$500,000] in prizes each year for electronic pull-tab activities and a maximum of 1
$2,000,000 in prizes each year in all activities, other than electronic pull-tab 2
activities, authorized under this chapter. A municipality or a qualified organization 3
that conducts a contest of skill and awards more than $1,000,000 in prizes to the 4
participants in that contest of skill may exclude $1,000,000 in prizes awarded to those 5
participants from the $2,000,000 maximum allowed in this subsection for activities 6
other than electronic pull-tab activities. The holders of a multiple-beneficiary 7
permit under AS 05.15.100(d) may award a maximum in prizes each year of 8
$2,000,000 times the number of holders of the permit for activities, other than 9
electronic pull-tab activities, authorized under this chapter. If a holder of a 10
multiple-beneficiary permit under AS 05.15.100(d) conducts electronic pull-tab 11
activities, the holder of a multiple-beneficiary permit may award a maximum in 12
prizes each year of $3,000,000 times the number of holders of the permit. In this 13
subsection, "activities authorized under this chapter" means all activities subject to this 14
chapter other than bingo. 15
* Sec. 9. AS 05.15.181(a) is amended to read: 16
(a) A person may not manufacture pull-tabs or electronic pull-tab systems in 17
the state, and may not sell or distribute a pull-tab or electronic pull-tab system that 18
the person has manufactured outside of the state to persons in the state, unless the 19
person has received a pull-tab manufacturer's license issued by the department. 20
* Sec. 10. AS 05.15.181(c) is amended to read: 21
(c) Each series of pull-tabs manufactured in the state must have a serial 22
number and be sealed or encrypted in a manner [AND HAVE A SERIAL 23
NUMBER LABEL ISSUED BY THE NATIONAL ASSOCIATION OF 24
FUNDRAISING TICKET MANUFACTURERS OR OTHER SERIAL NUMBER 25
LABEL] approved by the department. 26
* Sec. 11. AS 05.15.181(d) is amended to read: 27
(d) A pull-tab manufacturer may distribute pull-tabs and electronic pull-tab 28
systems only to a licensed pull-tab distributor unless the pull-tab manufacturer is also 29
a licensed pull-tab distributor. A pull-tab manufacturer may distribute an 30
electronic pull-tab system only to a distributor that holds a separate electronic 31 33-GH1054\U
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pull-tab endorsement under AS 05.15.183. 1
* Sec. 12. AS 05.15.181 is amended by adding new subsections to read: 2
(f) A pull-tab manufacturer may distribute to a person in this state an 3
electronic pull-tab system for use in the state only if the department has issued a 4
separate electronic pull-tab endorsement to the manufacturer's license. A pull-tab 5
manufacturer licensed in the state who manufactures electronic pull-tab systems for 6
use in the state shall 7
(1) submit, at the manufacturer's expense, the electronic pull-tab 8
system to an independent gaming testing laboratory for testing and certification before 9
distribution; 10
(2) install a central server for the electronic pull-tab system in a secure 11
location in the state that is accessible by the department; in this paragraph, "central 12
server" means a pull-tab manufacturer's computer equipment that houses the operating 13
system, supporting hardware, electronic gaming application software, communications 14
network system, and databases for electronic pull-tab operations and stores and 15
manages electronic pull-tab data between electronic gaming locations. 16
(g) An electronic pull-tab system distributed in the state 17
(1) must be certified by an independent gaming testing laboratory 18
under (f)(1) of this section as meeting the technical specifications adopted by the 19
department; 20
(2) must be approved by the department; 21
(3) may not include a game designed to pay out more than 90 percent; 22
(4) may only accept United States currency in paper form, purchased 23
credits, or a credit voucher; 24
(5) must reveal the numbers or symbols of the pull-tab on the device 25
similar to a paper pull-tab; 26
(6) may not display on the device spinning reels that mimic a slot 27
machine; 28
(7) may incorporate animation as part of the pull-tab game, but may 29
not require any additional consideration for that feature or award a prize other than the 30
predetermined prize for the ticket; and 31 33-GH1054\U
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(8) may not dispense anything of value other than a credit voucher. 1
(h) A device used to play electronic pull-tabs must be incorporated into an 2
electronic pull-tab system and may not be a personal communication or computing 3
device. 4
(i) A pull-tab manufacturer or an agent of a manufacturer may not provide to a 5
vendor, operator, permittee, distributor, municipality, or qualified organization 6
compensation or a gift, gratuity, premium, or other thing of value in an amount greater 7
than $25 annually, including the value of a gift, gratuity, premium or other thing of 8
value provided to an individual employee or agent of the vendor, operator, permittee, 9
distributor, municipality, or qualified organization. 10
(j) The department may not issue a pull-tab manufacturer's license to a person 11
who is otherwise prohibited from involvement under AS 05.15.105. 12
(k) In this section, "manufacture" includes the development, creation, and 13
programing of any electronic device, hardware, software, or computer systems used in 14
the operation of a pull-tab or electronic pull-tab system. 15
* Sec. 13. AS 05.15.183(a) is amended to read: 16
(a) A person may not distribute pull-tab games or electronic pull-tab systems 17
unless the person has received a pull-tab distributor's license issued by the department. 18
The department may not issue a pull-tab distributor's license to a person licensed 19
as an operator or who otherwise participates in the conduct of an activity 20
authorized under this chapter on behalf of a municipality or a qualified 21
organization. 22
* Sec. 14. AS 05.15.183(c) is amended to read: 23
(c) Pull-tabs or electronic pull-tab systems may be distributed only from a 24
location in the state. A person may not distribute pull-tabs or electronic pull-tab 25
systems directly to another person in the state from a location outside of this state. 26
* Sec. 15. AS 05.15.183(e) is amended to read: 27
(e) A distributor may deliver an electronic pull-tab series to a computer 28
server at a vendor's location on behalf of a permittee authorized to conduct pull-29
tab sales at the vendor's location. A distributor may not 30
(1) take an order for the purchase of a pull-tab series from a vendor; 31 33-GH1054\U
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(2) sell a pull-tab series to a vendor; or 1
(3) deliver a pull-tab series to a vendor, except an electronic pull-tab 2
series as expressly authorized in this subsection. 3
* Sec. 16. AS 05.15.183 is amended by adding new subsections to read: 4
(f) A licensed distributor may distribute an electronic pull-tab system in the 5
state only if 6
(1) the department has issued a separate electronic pull-tab 7
endorsement to the distributor's license; and 8
(2) the electronic pull-tab system meets the requirements of 9
AS 05.15.181(g). 10
(g) A distributor may not provide to an employee or agent of a licensed 11
vendor, operator, permittee, municipality, or qualified organization compensation or a 12
gift, gratuity, premium, or other thing of value in an amount greater than $25 annually, 13
including the value of a gift, gratuity, premium, or other thing of value provided to an 14
individual employee or agent of the vendor, operator, permittee, municipality, or 15
qualified organization. 16
(h) The department may not issue a pull-tab distributor's license to a person 17
who is otherwise prohibited from involvement under AS 05.15.105. 18
* Sec. 17. AS 05.15.185 is amended to read: 19
Sec. 05.15.185. Distribution of pull-tab games. Each series of pull-tabs 20
distributed in the state must have a serial number and be sealed or encrypted in a 21
manner [AND HAVE A SERIAL NUMBER LABEL ISSUED BY THE 22
NATIONAL ASSOCIATION OF FUNDRAISING TICKET MANUFACTURERS 23
OR OTHER SERIAL NUMBER LABEL] approved by the department and may be 24
distributed only to 25
(1) a municipality or a qualified organization that has obtained a 26
permit issued under this chapter; 27
(2) an operator on behalf of an authorizing permittee; [OR] 28
(3) a distributor licensed under this chapter; or 29
(4) a vendor by a distributor as authorized under AS 05.15.183(e). 30
* Sec. 18. AS 05.15.185 is amended by adding new subsections to read: 31 33-GH1054\U
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(b) An electronic pull-tab series distributed in the state must 1
(1) have a predetermined and finite number of winning and 2
nonwinning tickets; 3
(2) have a predetermined prize amount and structure; 4
(3) have a unique serial number that is not regenerated; and 5
(4) maintain a record of accumulated win credits that may be applied 6
to games in play or redeemed upon cessation of play. 7
(c) An electronic pull-tab series distributed in the state may not 8
(1) exceed 15,000 tickets; 9
(2) require additional consideration or award a prize associated with an 10
extended play feature included in the game. 11
* Sec. 19. AS 05.15.187(e) is amended to read: 12
(e) Pull-tabs may not be sold to or accessed by a person under the age of 21 13
years. A person under the age of 21 years may not purchase or redeem a pull-tab. 14
* Sec. 20. AS 05.15.187(i) is amended to read: 15
(i) A permittee, operator, or registered vendor may not turn over a prize of $50 16
or more to a person with a pull-tab card or credit voucher entitling the person to that 17
prize unless the person signs a receipt for the prize and returns the receipt to the 18
permittee, operator, or vendor. The receipt must be in a form approved by the 19
department. 20
* Sec. 21. AS 05.15.187 is amended by adding new subsections to read: 21
(j) A vendor may not have more than five electronic pull-tab devices on the 22
premises. 23
(k) An operator may not have more than 10 electronic pull-tab devices at a 24
location. 25
(l) A municipality, qualified organization, or multiple-beneficiary permittee 26
may not have more than 10 electronic pull-tab devices at a location. 27
(m) Within one electronic pull-tab series, each electronic pull-tab must be sold 28
for the same price. 29
* Sec. 22. AS 05.15.188(g) is amended to read: 30
(g) A person, other than a permittee's member-in-charge or a distributor 31 33-GH1054\U
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distributing an electronic pull-tab series as authorized under AS 05.15.183(e), 1
may not directly supply a pull-tab series to a registered vendor for sale by that vendor 2
on behalf of the permittee. 3
* Sec. 23. AS 05.15.188(i) is amended to read: 4
(i) An amount equal to the ideal net less the compensation owed to the vendor 5
shall be paid by the vendor to the member-in-charge upon delivery of a pull-tab series 6
to the vendor for sale. For an electronic pull-tab series, an amount equal to the 7
adjusted gross receipts less the compensation owed to the vendor shall be paid by 8
the vendor to the member-in-charge within seven days after the delivery of the 9
electronic pull-tab series. The amount required to be paid by the vendor shall be paid 10
by check or electronic funds transfer and [THE CHECK MAY NOT BE DRAWN 11
IN A MANNER THAT] the payee must be [IS NOT] identified. 12
* Sec. 24. AS 05.15.188 is amended by adding a new subsection to read: 13
(l) The department may not register as a vendor a person who is otherwise 14
prohibited from involvement under AS 05.15.105. 15
* Sec. 25. AS 05.15.680 is amended by adding new subsections to read: 16
(c) In addition to any other penalty, a person who conducts, finances, 17
manages, supervises, directs, or owns a gambling device intended for use in this state, 18
or leases or owns a premises where gambling devices are operated, in violation of this 19
chapter shall be subject to a civil penalty not less than $5,000, but not more than 20
$25,000, for each device payable to the municipality in which the device was 21
operated. The state or municipality may bring an action to 22
(1) enjoin the operation of a gambling device in violation of this 23
chapter; 24
(2) request an attachment against all devices in violation of this chapter 25
and any money within those devices; and 26
(3) recover the civil penalty. 27
(d) A person who is employed, volunteers, receives compensation of any kind, 28
or participates in the operation of a gambling device in violation of this chapter shall 29
be subject to a civil penalty not to exceed $5,000. 30
* Sec. 26. AS 05.15.690(39) is amended to read: 31 33-GH1054\U
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(39) "pull-tab or pull-tab game" means a game of chance where a 1
card, or electronic representation of a card, the face of which is covered to conceal 2
a number, symbol, or set of symbols, is purchased by the participant and where a prize 3
is awarded for a card, or electronic representation of a card, containing certain 4
numbers or symbols designated in advance and at random; 5
* Sec. 27. AS 05.15.690(46) is amended to read: 6
(46) "series" means a unit of pull-tabs with the same serial number or 7
a unit of electronic pull-tabs that have a unique serial number; 8
* Sec. 28. AS 05.15.690 is amended by adding new paragraphs to read: 9
(51) "credit voucher" means a paper issued by an electronic pull-tab 10
device that shows 11
(A) the amount of credit available for redemption; 12
(B) the serial number of the device; 13
(C) the date and time of issuance; and 14
(D) a unique validation number or other identifier; 15
(52) "electronic pull-tab device" means a cabinet-style device, portable 16
tablet device, or other device approved by the department that is part of an approved 17
electronic pull-tab system and that electronically displays electronic pull-tab tickets 18
and accumulates credits; 19
(53) "electronic pull-tab system" means individual electronic pull-tabs, 20
electronic cabinet-style pull-tab devices, and related hardware and software used to 21
play or facilitate the play of an electronic pull-tab series. 22