Alaska 2025-2026 Regular Session

Alaska Senate Bill SB170 Compare Versions

Only one version of the bill is available at this time.

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2	2	SB0170A -1- SB 170
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5	5	34-LS0213\I
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11	11	SENATE BILL NO. 170
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
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15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
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17	17	BY SENATOR BJORKMAN
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19	19	Introduced: 4/11/25
20	20	Referred: Labor & Commerce, Finance
21	21
22	22
23	23
24	24	A BILL
25	25
26	26	FOR AN ACT ENTITLED
27	27
28	28	"An Act relating to gaming; relating to bingo; relating to pull-tabs and electronic pull-1
29	29	tab systems; and providing for an effective date." 2
30	30	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
31	31	* Section 1. AS 05.15.030(a) is amended to read: 4
32	32	(a) [AT THE TIME OF FILING AN APPLICATION FOR A PERMIT OR 5
33	33	LICENSE UNDER THIS CHAPTER, THE APPLICANT SHALL NOTIFY THE 6
34	34	CITY OR BOROUGH NEAREST TO THE LOCATION OF THE PROPOSED 7
35	35	ACTIVITY OF THE APPLICATION.] A local government unit may protest the 8
36	36	conduct of the activity in its jurisdiction by resolution stating the reasons for the 9
37	37	protest filed with the department; protests are limited to the lack of qualifications 10
38	38	prescribed by this chapter. This resolution is only a recommendation by the local 11
39	39	government that may be considered by the department in determining whether to issue 12
40	40	or refuse to issue a permit or license. 13
41	41	* Sec. 2. AS 05.15.030(c) is amended to read: 14 34-LS0213\I
42	42	SB 170 -2- SB0170A
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45	45	(c) If a permittee or licensee changes the location of an activity in the 1
46	46	jurisdiction for which a permit has been issued, the permittee shall notify the 2
47	47	department [AND THE LOCAL GOVERNMENT] within 10 days after moving to the 3
48	48	new location. 4
49	49	* Sec. 3. AS 05.15.070 is amended to read: 5
50	50	Sec. 05.15.070. Investigations; examination [EXAMINATION] of books 6
51	51	and records. The department may investigate licensed and unlicensed gaming 7
52	52	operations and administer civil penalties for violations of this chapter. The 8
53	53	department may examine or have examined the books and records of a permittee, an 9
54	54	operator, a registered vendor, or a person licensed to manufacture or to distribute pull-10
55	55	tab games or electronic pull-tab systems in the state. The department may issue 11
56	56	subpoenas for the attendance of witnesses and the production of books, records, and 12
57	57	other documents. 13
58	58	* Sec. 4. AS 05.15.083 is amended to read: 14
59	59	Sec. 05.15.083. Reports to department by operators. (a) An operator shall 15
60	60	file a report with the department by the last business day of the month following each 16
61	61	calendar quarter in which an activity was conducted. The report must include, for each 17
62	62	authorizing permittee on whose behalf an activity was conducted during the quarter, 18
63	63	[THE DATE AND LOCATION OF EACH ACTIVITY,] the type of activity 19
64	64	conducted, the amount of gross receipts, [THE AMOUNT OF AUTHORIZED 20
65	65	EXPENSES,] the value of prizes [AWARDED], the amount of net proceeds paid, and 21
66	66	other information the department may require [; A COMPLETED INTERNAL 22
67	67	REVENUE SERVICE FORM 941; AND A COPY OF THE OPERATOR'S 23
68	68	EMPLOYER CONTRIBUTIONS AND WAGE REPORTS SUBMITTED TO THE 24
69	69	DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT FOR THE 25
70	70	QUARTER]. However, if the only activity conducted by an operator during the 26
71	71	calendar quarter is a raffle or lottery, then the operator is not required to file a report 27
72	72	under this subsection until the raffle or lottery is completed. 28
73	73	(b) An operator shall file an annual report with the department not [NO] later 29
74	74	than February 28 of the year following the year in which activities were conducted. 30
75	75	The report must include, for each authorizing permittee on whose behalf an activity 31 34-LS0213\I
76	76	SB0170A -3- SB 170
77	77	New Text Underlined [DELETED TEXT BRACKETED]
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79	79	was conducted, the types of activities conducted, the total amount of gross receipts, 1
80	80	[THE TOTAL AMOUNT OF AUTHORIZED EXPENSES,] the total value of prizes 2
81	81	[AWARDED], and the total amount of net proceeds paid to each authorizing 3
82	82	permittee. [THE ANNUAL REPORT MUST ALSO INCLUDE A COMPLETED 4
83	83	INTERNAL REVENUE SERVICE FORM W-2 FOR EACH PERSON EMPLOYED 5
84	84	BY THE OPERATOR DURING THE PRECEDING YEAR.] 6
85	85	* Sec. 5. AS 05.15.087(a) is amended to read: 7
86	86	(a) An operator shall file a monthly report with each authorizing permittee for 8
87	87	which the operator has conducted an activity during the preceding month. The report 9
88	88	must include a [DAILY] summary of activity conducted under the permit issued to the 10
89	89	authorizing permittee and an accounting of gross receipts, prize payouts 11
90	90	[EXPENSES], and net proceeds for the month. A check or electronic funds transfer 12
91	91	in the amount of the net proceeds due to the authorizing permittee for the month must 13
92	92	accompany the report. The operator shall file the report by the 15th day after the end 14
93	93	of the month covered by the report. 15
94	94	* Sec. 6. AS 05.15.105(b) is amended to read: 16
95	95	(b) The department shall adopt regulations that provide that a disqualification 17
96	96	of a person under (a) of this section based on [UPON] a conviction of that person or a 18
97	97	person described in (c) of this section for a violation 19
98	98	(1) of a law of this state that is, or a law or ordinance of another 20
99	99	jurisdiction that would be if it was committed in this state, a class B felony other than 21
100	100	extortion, a class C felony, or an unclassified felony described outside of AS 11, and 22
101	101	that is not a crime of dishonesty or theft or a violation of gambling laws, terminates 10 23
102	102	years after the person's conviction; 24
103	103	(2) of a law or ordinance of this state or another jurisdiction that is a 25
104	104	crime involving theft or dishonesty or a violation of gambling laws, and that is not, or 26
105	105	would not be if it was committed in this state, an unclassified felony described in 27
106	106	AS 11, a class A felony, or extortion, terminates 10 years after the person's conviction, 28
107	107	if the department determines that the 29
108	108	(A) person is of good character, honesty, and integrity; and 30
109	109	(B) person's involvement in charitable gaming is not against the 31 34-LS0213\I
110	110	SB 170 -4- SB0170A
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113	113	public interest. 1
114	114	* Sec. 7. AS 05.15.105 is amended by adding a new subsection to read: 2
115	115	(c) The department may not issue a license to a manufacturer or distributor if a 3
116	116	parent company, sister company, or subsidiary of the manufacturer or distributor has 4
117	117	been convicted of a violation of a law that would disqualify the parent company, sister 5
118	118	company, or subsidiary under (a) of this section. 6
119	119	* Sec. 8. AS 05.15.115(b) is amended to read: 7
120	120	(b) The contract between an authorizing permittee and an operator must 8
121	121	include the amount and form of compensation to be paid to the operator, the term of 9
122	122	the contract, the activities to be conducted by the operator on behalf of the permittee, 10
123	123	the location where the activities are to be conducted, the name and address of the 11
124	124	member in charge, and other provisions the department may require. A contract 12
125	125	between an authorizing permittee and an operator may allow the operator to 13
126	126	pool together permittees and divide the gaming income and payouts among 14
127	127	permittees on a percentage basis to be determined at the end of each month. 15
128	128	* Sec. 9. AS 05.15.115(d) is amended to read: 16
129	129	(d) An operator [A PERMITTEE] shall electronically submit [BY 17
130	130	CERTIFIED MAIL] to the department for approval a copy of each contract with a 18
131	131	permittee [AN OPERATOR] with whom the operator [PERMITTEE] contracts to 19
132	132	conduct activities subject to this chapter. The contract must meet the requirements of 20
133	133	this section. The department shall approve or disapprove the contract. If the contract is 21
134	134	disapproved, reasons for the disapproval shall be provided in writing to the operator 22
135	135	[PERMITTEE]. Activities may not be conducted under the contract before the 23
136	136	contract is approved. Subsequent amendments to an approved contract do not take 24
137	137	effect until the amendments are approved by the department. 25
138	138	* Sec. 10. AS 05.15.122 is amended by adding new subsections to read: 26
139	139	(e) An operator licensed under this section may conduct electronic pull-tab 27
140	140	activities on behalf of a municipality or a qualified organization only if the department 28
141	141	has issued a separate electronic pull-tab endorsement to the operator's license for 29
142	142	electronic pull-tab systems. The department may issue an electronic pull-tab 30
143	143	endorsement if 31 34-LS0213\I
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147	147	(1) the operator has filed all reports required under AS 05.15.087; 1
148	148	(2) the operator's license has not been revoked by the department in the 2
149	149	immediately preceding five years; and 3
150	150	(3) the operator has conducted pull-tab games for at least the preceding 4
151	151	three years. 5
152	152	(f) If an operator that is a natural person dies, the estate of the operator may 6
153	153	designate a temporary responsible party to conduct activities authorized by the 7
154	154	operator's license for 120 days after the death of the operator. 8
155	155	* Sec. 11. AS 05.15.122(e), enacted by sec. 10 of this Act, is amended to read: 9
156	156	(e) An operator licensed under this section may conduct electronic pull-tab 10
157	157	activities on behalf of a municipality or a qualified organization only if the department 11
158	158	has issued a separate electronic pull-tab endorsement to the operator's license for 12
159	159	electronic pull-tab systems. The department may issue an electronic pull-tab 13
160	160	endorsement if 14
161	161	(1) the operator has filed all reports required under AS 05.15.087; and 15
162	162	(2) the operator's license has not been revoked by the department in the 16
163	163	immediately preceding five years [; AND 17
164	164	(3) THE OPERATOR HAS CONDUCTED PULL-TAB GAMES 18
165	165	FOR AT LEAST THE PRECEDING THREE YEARS]. 19
166	166	* Sec. 12. AS 05.15.128(a) is amended to read: 20
167	167	(a) The department shall revoke 21
168	168	(1) the license of an operator who does not [(1) REPORT AN 22
169	169	ADJUSTED GROSS INCOME OF AT LEAST 15 PERCENT OF GROSS INCOME 23
170	170	ANNUALLY BASED ON THE TOTAL OPERATION OF THE OPERATOR; OR 24
171	171	(2)] pay to each authorizing permittee annually at least 30 percent of the adjusted 25
172	172	gross income [, AS DETERMINED UNDER (1) OF THIS SUBSECTION,] from a 26
173	173	pull-tab activity or at least 10 percent of the adjusted gross income [, AS 27
174	174	DETERMINED UNDER (1) OF THIS SUBSECTION,] from a gaming activity other 28
175	175	than pull-tabs [,] received from activities conducted on behalf of the authorizing 29
176	176	permittee; 30
177	177	(2) a multiple-beneficiary permit if payments under the multiple-31 34-LS0213\I
178	178	SB 170 -6- SB0170A
179	179	New Text Underlined [DELETED TEXT BRACKETED]
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181	181	beneficiary permit to the holders of the multiple-beneficiary permit do not 1
182	182	annually total at least 30 percent of the adjusted gross income from a pull-tab 2
183	183	activity or at least 10 percent of the adjusted gross income from a gaming activity 3
184	184	other than pull-tabs received from activities conducted on behalf of the 4
185	185	authorizing multiple-beneficiary permit. 5
186	186	* Sec. 13. AS 05.15.165(a) is amended to read: 6
187	187	(a) An operator shall pay net proceeds to the authorizing permittee by check 7
188	188	or electronic funds transfer. 8
189	189	* Sec. 14. AS 05.15.165(c) is amended to read: 9
190	190	(c) The operator shall post in a public place on the premises where the 10
191	191	activities are conducted the operator's license and a copy of the permit of each 11
192	192	authorizing permittee with whom the operator has a contract to conduct activities at 12
193	193	the location. A sign posted on the premises that directs individuals to an 13
194	194	operator's Internet website or landing page satisfies the requirements of this 14
195	195	subsection if the posted sign states that the information required by this 15
196	196	subsection is contained on the Internet website or landing page and the Internet 16
197	197	website or landing page contains the required information. 17
198	198	* Sec. 15. AS 05.15.170(a) is amended to read: 18
199	199	(a) The department may suspend, for a period of up to one year, or revoke a 19
200	200	permit, license, or vendor registration, after giving notice to and an opportunity to be 20
201	201	heard by the permittee or licensee, if the permittee, licensee, or vendor 21
202	202	(1) violates or fails to comply with a requirement of this chapter or of a 22
203	203	regulation adopted under this chapter; 23
204	204	(2) breaches a contractual agreement with a permittee, licensee, or 24
205	205	registered vendor; 25
206	206	(3) becomes disqualified to participate in charitable gaming as 26
207	207	provided in AS 05.15.105; for the purposes of this paragraph, a permittee, licensee, or 27
208	208	vendor that is not a natural person is considered convicted if an owner or manager of 28
209	209	the permittee or an owner or manager of a parent company, sister company, or 29
210	210	subsidiary of the [,] licensee [,] or vendor is convicted; 30
211	211	(4) knowingly submits false information to the department or, in the 31 34-LS0213\I
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213	213	New Text Underlined [DELETED TEXT BRACKETED]
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215	215	case of a registered vendor, to a permittee when the vendor knows that the false 1
216	216	information will be submitted to the department as part of an application for 2
217	217	registration; or 3
218	218	(5) gives or acts on [UPON] any inside information on the status of the 4
219	219	prizes awarded or to be awarded in a pull-tab game. 5
220	220	* Sec. 16. AS 05.15.170 is amended by adding new subsections to read: 6
221	221	(c) When a permit, license, or vendor registration is suspended or revoked, the 7
222	222	department shall notify an operator that conducts an activity on behalf of or a 8
223	223	distributor that supplies the permittee, vendor, or licensee that the permit has been 9
224	224	suspended or revoked. The notification must be in the form of electronic mail and a 10
225	225	message transmitted through a website created for the purpose of allowing citizens to 11
226	226	interact with multiple state services through a single username and password. 12
227	227	(d) When a license of a distributor is suspended or revoked, the department 13
228	228	shall notify a manufacturer that supplies the distributor that the distributor has had the 14
229	229	license suspended or revoked. The notification must be in the form of electronic mail 15
230	230	and a message transmitted through an Internet website created for the purpose of 16
231	231	allowing citizens to interact with multiple state services through a single username and 17
232	232	password. 18
233	233	* Sec. 17. AS 05.15.180(b) is amended to read: 19
234	234	(b) With the exception of raffles, lotteries, bingo games, pull-tab games, 20
235	235	electronic pull-tabs, freeze-up classics, race classics, rain classics, goose classics, 21
236	236	mercury classics, deep freeze classics, dog mushers' contests, snow classics, snow 22
237	237	machine classics, canned salmon classics, salmon classics, animal classics, crane 23
238	238	classics, cabbage classics, Calcutta pools, big bull moose derbies, and king salmon 24
239	239	classics, a permit may not be issued for an activity under this chapter unless it existed 25
240	240	in the state in substantially the same form and was conducted in substantially the same 26
241	241	manner before January 1, 1959. A permit may not be issued for a snow machine 27
242	242	classic under this chapter unless it has been in existence for at least five years before 28
243	243	the permit is issued. A permit may not be issued for an animal classic under this 29
244	244	chapter unless it was in existence before November 1, 2002. 30
245	245	* Sec. 18. AS 05.15.180(d) is amended to read: 31 34-LS0213\I
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249	249	(d) The total value of door prizes offered or awarded under authority of a 1
250	250	permit issued to a municipality or qualified organization under this chapter or under 2
251	251	authority of a multiple-beneficiary permit may not exceed $50,000 [$20,000] a month 3
252	252	or $600,000 [$240,000] a year. 4
253	253	* Sec. 19. AS 05.15.180(e) is amended to read: 5
254	254	(e) The department shall adopt regulations that set prize amounts for 6
255	255	bingo games. The regulations must allow an operator of a bingo game to award a 7
256	256	top prize of at least $2,500 but not more than $10,000 in one bingo session a 8
257	257	month and award a top prize of at least $1,000 but not more than $2,500 in all 9
258	258	other bingo sessions. The total value of all door prizes offered or awarded at a single 10
259	259	facility or bingo hall or parlor by an operator on behalf of authorizing permittees may 11
260	260	not exceed $50,000 [$20,000] a month or $600,000 [$240,000] a year. An operator of 12
261	261	a bingo game may offer progressive bingo. A progressive bingo game does not 13
262	262	count toward the prize limitations in this subsection. In a progressive bingo 14
263	263	game, 15
264	264	(1) a portion of the gross receipts is carried over to another game if 16
265	265	no player declares a valid bingo for a progressive prize or prizes based on a 17
266	266	predetermined and posted win determination; 18
267	267	(2) the portion of the prize that is not carried over is awarded to 19
268	268	the first player or players who declare a valid bingo as additional numbers are 20
269	269	called; and 21
270	270	(3) the entire prize pool for that game is awarded to the winner or 22
271	271	winners if a valid bingo is declared. 23
272	272	* Sec. 20. AS 05.15.180(f) is amended to read: 24
273	273	(f) A person under the age of 18 [19] years may not play a bingo game. 25
274	274	* Sec. 21. AS 05.15.180(g) is amended to read: 26
275	275	(g) A municipality or a qualified organization may award a maximum of 27
276	276	$2,000,000 in prizes each year in activities authorized under this chapter [; 28
277	277	HOWEVER, IF A MUNICIPALITY OR A QUALIFIED ORGANIZATION 29
278	278	CONTRACTS WITH AN OPERATOR TO CONDUCT ON ITS BEHALF 30
279	279	ACTIVITIES AUTHORIZED UNDER THIS CHAPTER, THE MUNICIPALITY OR 31 34-LS0213\I
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283	283	QUALIFIED ORGANIZATION MAY AWARD A MAXIMUM OF $500,000 IN 1
284	284	PRIZES EACH YEAR]. A municipality or a qualified organization that conducts a 2
285	285	contest of skill and awards more than $1,000,000 in prizes to the participants in that 3
286	286	contest of skill may exclude $1,000,000 in prizes awarded to those participants from 4
287	287	the $2,000,000 maximum allowed in this subsection. The holders of a multiple-5
288	288	beneficiary permit under AS 05.15.100(d) may award a maximum in prizes each year 6
289	289	of $2,000,000 times the number of holders of the permit for activities authorized under 7
290	290	this chapter. In this subsection, "activities authorized under this chapter" means all 8
291	291	activities subject to this chapter other than bingo and electronic pull-tabs. 9
292	292	* Sec. 22. AS 05.15.180 is amended by adding new subsections to read: 10
293	293	(i) A municipality or a qualified organization may award a maximum of 11
294	294	$4,000,000 in prizes for electronic pull-tab games each year. The holders of a 12
295	295	multiple-beneficiary permit issued under AS 05.15.100(d) may award a maximum in 13
296	296	prizes each year of $4,000,000 times the number of holders of the permit for activities 14
297	297	authorized under this chapter for electronic pull-tab games. 15
298	298	(j) Beginning in 2030, the department may by regulation increase the 16
299	299	monetary amounts in (g) and (i) of this section by up to 10 percent, rounded up to the 17
300	300	nearest $10,000, once every five years. 18
301	301	* Sec. 23. AS 05.15.181(d) is amended to read: 19
302	302	(d) A pull-tab manufacturer may distribute pull-tabs only to a licensed pull-tab 20
303	303	distributor [UNLESS THE PULL-TAB MANUFACTURER IS ALSO A LICENSE D 21
304	304	PULL-TAB DISTRIBUTOR]. 22
305	305	* Sec. 24. AS 05.15.181 is amended by adding new subsections to read: 23
306	306	(f) A pull-tab manufacturer may not modify or pay another person to modify a 24
307	307	building to accommodate the installation of a gaming system, perform or pay another 25
308	308	person to perform electrical work necessary to install a gaming system, or provide a 26
309	309	utility connection for a gaming system. 27
310	310	(g) A pull-tab manufacturer, an owner or employee of a manufacturer, an 28
311	311	immediate family member of an owner or employee of a manufacturer, or a parent 29
312	312	company, sister company, or subsidiary of a manufacturer 30
313	313	(1) may not, within a calendar year, provide gifts, gratuities, 31 34-LS0213\I
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317	317	premiums, or other things of value to a vendor, operator, permittee, or qualified 1
318	318	organization with a total value of more than $250; 2
319	319	(2) may not accept gifts, gratuities, premiums, or other things of value 3
320	320	from a vendor, operator, permittee, or qualified organization or an owner, employee, 4
321	321	or immediate family member of an owner or employee of a vendor, operator, 5
322	322	permittee, or qualified organization with a total value of more than $250 per calendar 6
323	323	year. 7
324	324	(h) A pull-tab manufacturer may distribute to a distributor in this state an 8
325	325	electronic pull-tab system for use in the state only if the department has issued a 9
326	326	separate electronic pull-tab endorsement to the manufacturer's license. A pull-tab 10
327	327	manufacturer licensed in the state who manufactures electronic pull-tab systems for 11
328	328	use in the state shall submit, at the manufacturer's expense, the electronic pull-tab 12
329	329	system to an independent gaming testing laboratory approved by the department for 13
330	330	testing and certification before distribution. In this subsection, "manufacture" includes 14
331	331	the development, creation, and programming of any electronic device, hardware, 15
332	332	software, or computer systems used in the operation of a pull-tab or electronic pull-tab 16
333	333	system; "manufacture" does not include the development, creation, and programming 17
334	334	of standard hardware or software components. 18
335	335	(i) A pull-tab manufacturer may not distribute pull-tabs to a distributor if one 19
336	336	of the following persons holds an ownership interest in the distributor: 20
337	337	(1) the manufacturer; 21
338	338	(2) an owner or employee of the manufacturer; 22
339	339	(3) a family member related within two degrees of consanguinity to an 23
340	340	owner or employee of the manufacturer; 24
341	341	(4) a parent company, sister company, or subsidiary of the 25
342	342	manufacturer. 26
343	343	(j) A pull-tab manufacturer may refuse to sell gaming equipment or paper 27
344	344	pull-tabs to a licensed distributor that has been licensed and had gross annual sales in 28
345	345	the state exceeding $500,000 for at least three years only if 29
346	346	(1) the distributor seeks to buy a specific paper pull-tab game being 30
347	347	sold exclusively to one distributor during the first five years of production as permitted
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350	350	New Text Underlined [DELETED TEXT BRACKETED]
351	351
352	352	under (m) of this section; 1
353	353	(2) the manufacturer does not sell gaming equipment to any 2
354	354	distributors in the state; 3
355	355	(3) sale of the gaming equipment or paper pull-tabs is prohibited by 4
356	356	law or regulation; 5
357	357	(4) the distributor is delinquent on a payment owed to the 6
358	358	manufacturer or has a history of delinquent payments; or 7
359	359	(5) the distributor is owned, in whole or in part, by 8
360	360	(A) a manufacturer; 9
361	361	(B) the parent company, sister company, subsidiary, or 10
362	362	shareholder of a manufacturer; 11
363	363	(C) a parent, child, or sibling of an officer or manager of a 12
364	364	competing manufacturer. 13
365	365	(k) Subsection (j) does not apply to application software and computer 14
366	366	programs and equipment used by a licensed pull-tab manufacturer in the production, 15
367	367	playing, and reporting of approved electronic pull-tab games. 16
368	368	(l) A pull-tab manufacturer shall provide the same price points and quantity 17
369	369	requirements for paper pull-tabs to each distributor. 18
370	370	(m) A pull-tab manufacturer may make available a paper pull-tab game 19
371	371	exclusively to one distributor during the first five years of production of the game. 20
372	372	After five years of production, the manufacturer shall make the game available to all 21
373	373	distributors. However, the manufacturer may continue to make a paper pull-tab game 22
374	374	exclusively available to one distributor after five years of production if the distributor 23
375	375	sells the game only to a single licensee. A paper pull-tab game is exclusive to one 24
376	376	distributor only if the game contains significantly unique graphics. Minor changes 25
377	377	made to an existing pull-tab game do not create an exclusive game. 26
378	378	(n) A pull-tab manufacturer shall submit to the department a copy of each 27
379	379	contract with a distributor within seven days after signing. 28
380	380	(o) A pull-tab manufacturer may not obtain, use, share, or sell point-of-sale 29
381	381	data from paper tickets or bingo. 30
382	382	(p) The department may not issue a pull-tab manufacturer's license to a person 31 34-LS0213\I
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386	386	who is otherwise prohibited from involvement under AS 05.15.105. 1
387	387	(q) A pull-tab manufacturer may not connect the price or availability of a 2
388	388	paper pull-tab game to an electronic pull-tab or the price or availability of an 3
389	389	electronic pull-tab to a paper pull-tab game. 4
390	390	* Sec. 25. AS 05.15.183(a) is amended to read: 5
391	391	(a) A person may not distribute pull-tab games or electronic pull-tab systems 6
392	392	unless the person has received a pull-tab distributor's license issued by the department. 7
393	393	The department may not issue a pull-tab distributor's license to a person licensed 8
394	394	as an operator or who otherwise participates in the conduct of an activity 9
395	395	authorized under this chapter on behalf of a municipality, qualified organization, 10
396	396	manufacturer, or parent company, sister company, or subsidiary of a 11
397	397	manufacturer. 12
398	398	* Sec. 26. AS 05.15.183(c) is amended to read: 13
399	399	(c) Pull-tabs or electronic pull-tab systems may be distributed only from a 14
400	400	location in the state. A person may not distribute pull-tabs or electronic pull-tab 15
401	401	systems directly to another person in the state from a location outside of this state. 16
402	402	* Sec. 27. AS 05.15.183(e) is amended to read: 17
403	403	(e) A distributor may deliver an electronic pull-tab series to a computer 18
404	404	server at a vendor's location on behalf of a permittee authorized to conduct pull-19
405	405	tab sales at the vendor's location. A distributor may not 20
406	406	(1) take an order for the purchase of a pull-tab series from a vendor; 21
407	407	(2) sell a pull-tab series to a vendor; or 22
408	408	(3) deliver a pull-tab series to a vendor, except an electronic pull-tab 23
409	409	series as expressly authorized in this subsection. 24
410	410	* Sec. 28. AS 05.15.183 is amended by adding new subsections to read: 25
411	411	(f) A licensed distributor may distribute an electronic pull-tab system in the 26
412	412	state only if the department has issued a separate electronic pull-tab endorsement to 27
413	413	the distributor's license. 28
414	414	(g) The department may not issue a pull-tab distributor's license to a person 29
415	415	who is otherwise prohibited from involvement under AS 05.15.105. 30
416	416	(h) A distributor may not 31 34-LS0213\I
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419	419
420	420	(1) provide to a municipality or qualified organization, or an employee 1
421	421	or agent of a municipality or qualified organization, compensation, a gift, gratuity, 2
422	422	premium, or other thing of value in an amount greater than $25 annually for each 3
423	423	organization; 4
424	424	(2) modify or pay another person to modify a building to accommodate 5
425	425	the installation of a gaming system, perform or pay another person to perform 6
426	426	electrical work necessary to install a gaming system, or provide a utility connection 7
427	427	for a gaming system; 8
428	428	(3) provide to an owner or lessor of a gaming premises compensation, 9
429	429	a gift, gratuity, premium, or other thing of value; 10
430	430	(4) participate in a gaming activity at a gaming premises that uses 11
431	431	gaming equipment purchased or leased from that distributor; 12
432	432	(5) alter or modify any gaming equipment, except to add a sticker 13
433	433	indicating the last ticket sold for a pull-tab game; 14
434	434	(6) obtain or use point-of-sale information for a paper pull-tab game or 15
435	435	bingo; 16
436	436	(7) connect the price or availability of a paper pull-tab game to an 17
437	437	electronic pull-tab or the price or availability of an electronic pull-tab to a paper pull-18
438	438	tab game; 19
439	439	(8) be an owner, shareholder, or subsidiary of a manufacturer, or a 20
440	440	corporation that owns a manufacturer, licensed under AS 05.15.181; 21
441	441	(9) distribute a pull-tab game to a permittee or licensee that is owned 22
442	442	or managed by a person that is related within two degrees of consanguinity to an 23
443	443	individual that owns or is employed by the distributor. 24
444	444	(i) A distributor may only distribute electronic pull-tabs that meet the 25
445	445	requirements of AS 05.15.186. 26
446	446	(j) A distributor may provide marketing, promotional, or point-of-sale items or 27
447	447	materials for the promotion of lawful gaming to a municipality or qualified 28
448	448	organization, operator, or multiple-beneficiary permittee for use at a premises where 29
449	449	gaming is conducted by holders of a license or permit under this chapter. The total 30
450	450	value of marketing, promotional, or point-of-sale items or materials that a distributor 31 34-LS0213\I
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453	453
454	454	provides to a municipality or qualified organization, operator, or multiple-beneficiary 1
455	455	permittee may not exceed $250 a year. 2
456	456	(k) A distributor shall submit to the department a copy of each contract with a 3
457	457	permittee, multiple-beneficiary permittee, vendor, or operator within seven days after 4
458	458	signing the contract. 5
459	459	(l) The department shall provide a serialized stamp to a distributor. The 6
460	460	distributor shall register all gaming tablets with the department and shall affix the 7
461	461	serialized stamp to the tablet. 8
462	462	(m) A contract between a distributor and a permittee must allow either party to 9
463	463	terminate the contract with 30 days' notice. 10
464	464	* Sec. 29. AS 05.15.185 is amended to read: 11
465	465	Sec. 05.15.185. Distribution of pull-tab games. Each series of pull-tabs 12
466	466	distributed in the state must have a serial number and be sealed or encrypted in a 13
467	467	manner [AND HAVE A SERIAL NUMBER LABEL ISSUED BY THE 14
468	468	NATIONAL ASSOCIATION OF FUNDRAISING TICKET MANUFACTURERS 15
469	469	OR OTHER SERIAL NUMBER LABEL] approved by the department and may be 16
470	470	distributed only to 17
471	471	(1) a municipality or a qualified organization that has obtained a 18
472	472	permit issued under this chapter; 19
473	473	(2) an operator; [ON BEHALF OF AN AUTHORIZING 20
474	474	PERMITTEE; OR] 21
475	475	(3) a distributor licensed under this chapter; or 22
476	476	(4) a vendor by a distributor as authorized under AS 05.15.183(e). 23
477	477	* Sec. 30. AS 05.15.185 is amended by adding new subsections to read: 24
478	478	(b) An electronic pull-tab series distributed in the state must 25
479	479	(1) have a predetermined and finite number of winning and 26
480	480	nonwinning tickets; 27
481	481	(2) have a predetermined prize amount and structure; 28
482	482	(3) have a unique serial number that is not regenerated. 29
483	483	(c) An electronic pull-tab series distributed in the state may not 30
484	484	(1) exceed 15,000 tickets; 31 34-LS0213\I
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488	488	(2) require additional consideration for an extended play feature 1
489	489	included in the game. 2
490	490	(d) An invoice for a paper pull-tab game distributed in the state must specify 3
491	491	the cost for each ticket for the pull-tab game. 4
492	492	* Sec. 31. AS 05.15 is amended by adding a new section to read: 5
493	493	Sec. 05.15.186. Electronic pull-tabs. (a) An electronic pull-tab system used to 6
494	494	sell an electronic pull-tab series in the state 7
495	495	(1) may accept United States currency in paper form; 8
496	496	(2) may accept credits or credit vouchers purchased with United States 9
497	497	currency in paper form, a debit card transaction, electronically transferred funds, or 10
498	498	other electronic payment mechanisms; 11
499	499	(3) may not accept credit card transactions; 12
500	500	(4) must clearly display the result and any prize awarded following the 13
501	501	play of an electronic pull-tab game on the electronic pull-tab device and reveal the 14
502	502	numbers or series of the pull-tab on the device; 15
503	503	(5) may use an autoclose system to close a game when all winning 16
504	504	tickets over a predetermined value are gone from the game; an autoclose feature must 17
505	505	be disclosed on the electronic game flare card with a statement identifying when the 18
506	506	game will be closed; and 19
507	507	(6) must be a tablet device with a screen not larger than 13 inches in 20
508	508	width or height; the tablet may not be connected to an external monitor or input 21
509	509	device. 22
510	510	(b) An electronic pull-tab system used to sell an electronic pull-tab series in 23
511	511	the state may not 24
512	512	(1) display on the device spinning reels that mimic a slot machine; or 25
513	513	(2) dispense anything of value. 26
514	514	(c) A device used to play electronic pull-tabs must be incorporated into an 27
515	515	electronic pull-tab system and may not be used for personal communication. 28
516	516	Connections between all components and access points of the electronic pull-tab 29
517	517	system must use secure communication protocols designed to prevent unauthorized 30
518	518	access or tampering, employing advanced encryption standard specifications adopted 31 34-LS0213\I
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521	521
522	522	by the National Institute of Standards and Technology, or in accordance with IEEE 1
523	523	802.11 standards contained in the Wi-Fi Protected Access II authentication protocols 2
524	524	or other nationally recognized security protocols as prescribed by the department. 3
525	525	(d) A pull-tab manufacturer shall maintain and keep current operating system 4
526	526	software agreements. An operating system agreement must be made available to the 5
527	527	department. 6
528	528	(e) The ideal payout for electronic pull-tabs may not exceed 85 percent. 7
529	529	(f) The total price, including fees, a distributor charges a permittee or licensee 8
530	530	for an electronic pull-tab system may not exceed 35 percent of the gross receipts less 9
531	531	the prize payouts of the electronic pull-tab system. 10
532	532	(g) A distributor may not connect the price or availability of a paper pull-tab 11
533	533	game to an electronic pull-tab. 12
534	534	* Sec. 32. AS 05.15.187(d) is amended to read: 13
535	535	(d) A paper pull-tab series may not be withdrawn from sale until all pull-tabs 14
536	536	in the series are sold, except that a pull-tab series may be withdrawn from sale if a 15
537	537	manufacturing defect exists in the series and the department is notified of the defect 16
538	538	and of the withdrawal from sale within a period established by regulation by the 17
539	539	department. 18
540	540	* Sec. 33. AS 05.15.187(e) is amended to read: 19
541	541	(e) Pull-tabs may not be sold to or accessed by a person under the age of 18 20
542	542	[21] years. A person under the age of 18 [21] years may not purchase or redeem a 21
543	543	pull-tab. 22
544	544	* Sec. 34. AS 05.15.187(f) is amended to read: 23
545	545	(f) Each permittee that had gross receipts exceeding $100,000 during the 24
546	546	preceding year from activities conducted under this chapter or that is required to report 25
547	547	under AS 05.15.080(a) shall maintain records as required by this subsection. A 26
548	548	permittee [,] that conducts a paper pull-tab game shall maintain records for two years 27
549	549	of each prize of $100 [$50] or more, the first day and last day that each series was 28
550	550	distributed, the serial number of each series, and the distributor from whom each series 29
551	551	was purchased. A permittee that conducts an electronic pull-tab game shall 30
552	552	maintain records for two years of each prize that is more than $500 and greater 31 34-LS0213\I
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555	555
556	556	than 500 times the ticket price [IN THIS SECTION "PERMITTEE" INCLUDES 1
557	557	MUNICIPALITIES AND QUALIFIED ORGANIZATIONS THAT JOINTLY HOLD 2
558	558	A MULTIPLE-BENEFICIARY PERMIT]. 3
559	559	* Sec. 35. AS 05.15.187(i) is amended to read: 4
560	560	(i) A permittee, operator, or registered vendor may not turn over a prize of 5
561	561	$100 [$50] or more to a person with a paper pull-tab card entitling the person to that 6
562	562	prize unless the person signs a receipt for the prize and returns the receipt to the 7
563	563	permittee, operator, or vendor. The receipt must be in a form approved by the 8
564	564	department. 9
565	565	* Sec. 36. AS 05.15.187 is amended by adding new subsections to read: 10
566	566	(j) An operator or permittee shall designate a person who is responsible for 11
567	567	overseeing pull-tabs or an electronic pull-tab system. 12
568	568	(k) The department may limit the number of tablets a permittee, licensee, or 13
569	569	vendor has in play at a location to one tablet for every six persons permitted to occupy 14
570	570	the premises. 15
571	571	(l) An owner or employee of an establishment that sells paper pull-tabs may 16
572	572	not play paper pull-tabs at the establishment. 17
573	573	(m) A person who has access to an electronic pull-tab deck status report at a 18
574	574	location may not play electronic pull-tabs at that location. 19
575	575	(n) An operator or permittee may maintain a vending machine that sells paper 20
576	576	pull-tabs directly to customers in an establishment that is accessible only by persons 21
577	577	21 years of age or older. 22
578	578	(o) An operator, permittee, or qualified organization may not accept gifts from 23
579	579	a pull-tab manufacturer, an owner or employee of a manufacturer, an immediate 24
580	580	family member of an owner or employee of a manufacturer, or a parent company, 25
581	581	sister company, or subsidiary of a manufacturer with a total value of more than $250 26
582	582	per calendar year. 27
583	583	* Sec. 37. AS 05.15.188(g) is amended to read: 28
584	584	(g) A person, other than a permittee's member in charge or alternate 29
585	585	member in charge [MEMBER-IN-CHARGE], may not directly supply a paper pull-30
586	586	tab series to a registered vendor for sale by that vendor on behalf of the permittee. 31 34-LS0213\I
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589	589
590	590	* Sec. 38. AS 05.15.188(h) is amended to read: 1
591	591	(h) If a permittee contracts with a vendor under (a) of this section for paper 2
592	592	pull-tabs, the contract must provide that the permittee shall receive not [NO] less than 3
593	593	70 percent of the ideal net. 4
594	594	* Sec. 39. AS 05.15.188(i) is amended to read: 5
595	595	(i) An amount equal to the ideal net less the compensation owed to the vendor 6
596	596	shall be paid by the vendor to the member in charge or alternate member in charge 7
597	597	[MEMBER-IN-CHARGE] upon delivery of a paper pull-tab series to the vendor for 8
598	598	sale. The amount required to be paid by the vendor shall be paid by check or 9
599	599	electronic funds transfer and [THE CHECK MAY NOT BE DRAWN IN A 10
600	600	MANNER THAT] the payee must be [IS NOT] identified. 11
601	601	* Sec. 40. AS 05.15.188 is amended by adding new subsections to read: 12
602	602	(l) If a permittee contracts with a vendor under (a) of this section for electronic 13
603	603	pull-tabs, the contract must provide that the vendor will retain not more than 30 14
604	604	percent of the gross receipts less the prize payouts. 15
605	605	(m) A vendor location may sell only paper pull-tabs and electronic pull-tabs 16
606	606	accessed on a portable tablet device. 17
607	607	(n) A vendor shall report to the department the amount of adjusted gross 18
608	608	income disbursed to permittees each month. The vendor's portion may not be more 19
609	609	than 30 percent of the adjusted gross income for paper pull-tabs nor more than 25 20
610	610	percent for electronic pull-tabs. A distributor may submit the report to the department 21
611	611	for a vendor. 22
612	612	(o) Not later than the fifth day of each month, a distributor shall make 23
613	613	available a report detailing, for the previous month, the total income from electronic 24
614	614	pull-tabs, the prizes distributed, and a calculation of the adjusted gross income for 25
615	615	each vendor location. 26
616	616	(p) A cash shortage is the responsibility of the vendor and may not be 27
617	617	deducted from the adjusted gross income. 28
618	618	(q) A vendor shall pay the permittee by check or electronic funds transfer and 29
619	619	identify the payee not later than Thursday of each week for the previous week's sales. 30
620	620	If a vendor fails to make a payment on time, the distributor shall disable the vendor's 31 34-LS0213\I
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623	623
624	624	electronic pull-tab games until payment is made. If a vendor's payment is 60 or more 1
625	625	days past due, the Alcoholic Beverage Control Board may suspend the vendor's 2
626	626	license or permit under AS 04.11.370(c). 3
627	627	(r) A contract between an authorizing permittee and a vendor may allow the 4
628	628	vendor to pool together permittees and divide the gaming income and payouts among 5
629	629	permittees on a percentage basis. 6
630	630	(s) The department may not register as a vendor a person who is otherwise 7
631	631	prohibited from involvement under AS 05.15.105. 8
632	632	(t) A vendor may not accept gifts from a pull-tab manufacturer, an owner or 9
633	633	employee of a manufacturer, an immediate family member of an owner or employee 10
634	634	of a manufacturer, or a parent company, sister company, or subsidiary of a 11
635	635	manufacturer with a total value of more than $250 per calendar year. 12
636	636	* Sec. 41. AS 05.15.640(a) is amended to read: 13
637	637	(a) A person may not use broadcasting to [PROMOTE OR] conduct a 14
638	638	charitable gaming activity under this chapter [EXCEPT THAT A PERSON MAY 15
639	639	USE 16
640	640	(1) BROADCASTING TO PROMOTE A FISH DERBY, A DOG 17
641	641	MUSHERS' CONTEST, A TYPE OF CLASSIC DEFINED IN AS 05.15.690, OR A 18
642	642	RAFFLE AND LOTTERY; OR 19
643	643	(2) THE INTERNET OR AN INTERNET COMMUNICATION TO 20
644	644	PROMOTE A CHARITABLE GAMING ACTIVITY UNDER THIS CHAPTER]. 21
645	645	* Sec. 42. AS 05.15.640(c) is amended to read: 22
646	646	(c) Notwithstanding (a) of this section, a permittee, an operator, or the holder 23
647	647	of a multiple-beneficiary permit may use the Internet or an Internet communication to 24
648	648	conduct a charitable gaming activity for a raffle or lottery, dog mushers' contest, 25
649	649	derby, or type of classic defined in AS 05.15.690. The permittee, an operator, or the 26
650	650	holder of a multiple-beneficiary permit may draw winning tickets online or by other 27
651	651	electronic or digital means. In this subsection, 28
652	652	(1) "Internet" means the combination of computer systems or 29
653	653	networks that make up the international network for interactive communications 30
654	654	services, including remote logins, file transfer, electronic mail, and newsgroups; 31 34-LS0213\I
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658	658	(2) "Internet communication" means an announcement or 1
659	659	advertisement disseminated through the Internet. 2
660	660	* Sec. 43. AS 05.15.690(1) is amended to read: 3
661	661	(1) "adjusted gross income" means gross income less prizes awarded, 4
662	662	tax collected under AS 05.15.184, and state, federal, and municipal taxes paid or 5
663	663	owed on the income; 6
664	664	* Sec. 44. AS 05.15.690(33) is amended to read: 7
665	665	(33) "net proceeds" means the gross receipts from an authorized 8
666	666	activity less the fee described in AS 05.15.020(b), [THE] expenses [AUTHORIZED 9
667	667	BY AS 05.15.160], and the prizes awarded at the activity; 10
668	668	* Sec. 45. AS 05.15.690(39) is amended to read: 11
669	669	(39) "pull-tab or pull-tab game" means a game of chance where a 12
670	670	card, or electronic representation of a card, the face of which is covered to conceal 13
671	671	a number, symbol, or set of symbols, is purchased by the participant and where a prize 14
672	672	is awarded for a card, or electronic representation of a card, containing certain 15
673	673	numbers or symbols designated in advance and at random; 16
674	674	* Sec. 46. AS 05.15.690(40) is amended to read: 17
675	675	(40) "qualified organization" means a bona fide civic or service 18
676	676	organization or a bona fide religious, charitable, fraternal, veterans, labor, political, or 19
677	677	educational organization, school-based extracurricular or co-curricular booster 20
678	678	club, police or fire department and company, dog mushers' association, outboard 21
679	679	motor association, or fishing derby or nonprofit trade association in the state, that 22
680	680	operates without profits to its members and that has been in existence continually for a 23
681	681	period of three years immediately before applying for the license or permit; the 24
682	682	organization may be a firm, corporation, company, association, or partnership; in this 25
683	683	paragraph, "fishing derby association" means a civic, service, or charitable 26
684	684	organization in the state, not for pecuniary profit, whose primary purpose is to 27
685	685	promote interest in fishing for recreational purposes, but does not include an 28
686	686	organization formed or operated for gaming or gambling purposes; 29
687	687	* Sec. 47. AS 05.15.690(46) is amended to read: 30
688	688	(46) "series" means a unit of pull-tabs with the same serial number or 31 34-LS0213\I
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691	691
692	692	a unit of electronic pull-tabs that have a unique serial number; 1
693	693	* Sec. 48. AS 05.15.690 is amended by adding new paragraphs to read: 2
694	694	(51) "distributor" includes a distributor salesperson, or representative, 3
695	695	agent, affiliate, or other employee of a distributor; 4
696	696	(52) "electronic pull-tab system" means individual electronic pull-tabs, 5
697	697	portable tablet pull-tab devices, and related hardware and software used to play or 6
698	698	facilitate the play of an electronic pull-tab series; 7
699	699	(53) "immediate family member" has the meaning given in 8
700	700	AS 39.52.960; 9
701	701	(54) "manufacturer" includes a manufacturer salesperson or a 10
702	702	representative, agent, affiliate, or other employee of a manufacturer. 11
703	703	* Sec. 49. AS 05.15.060(b), 05.15.115(c), 05.15.150(b), 05.15.160, 05.15.165(b), 12
704	704	05.15.640(b), 05.15.640(g)(2), and 05.15.640(g)(3) are repealed. 13
705	705	* Sec. 50. The uncodified law of the State of Alaska is amended by adding a new section to 14
706	706	read: 15
707	707	APPLICABILITY. AS 05.15.183(m), enacted by sec. 28 of this Act, applies to a 16
708	708	contract entered into, renewed, or amended on or after the effective date of sec. 28 of this Act. 17
709	709	* Sec. 51. Section 11 of this Act takes effect January 1, 2031. 18
710	710	* Sec. 52. Except as provided in sec. 51 of this Act, this Act takes effect January 1, 2026. 19