Title 15 . Revenue

Chapter 160 . (Repealed)

Section 995. Definitions

15 AAC 160.995. Definitions

As used in AS 05.15 and this chapter, unless the context requires otherwise,

(1) "advisory notice" means an informal notice by the department to a multiple-beneficiary permittee or other permittee, licensee, or registered vendor that a complaint has been filed with the department or that the department has reason to believe that a violation of AS 05.15 or this chapter has occurred;

(2) "affiliate" means a separate legal entity that controls, is controlled by, or is under common control with the person, whether the control is exercised by ownership or contract; "affiliate" includes a parent, subsidiary, or other business with at least 10 percent ownership by the person and related parties;

(3) "authorized expenses" means costs that are reasonable, ordinary, and necessary to the conducting of an activity permitted under AS 05.15; "authorized expenses"

(A) includes

(i) the depreciation and maintenance of equipment used exclusively in an activity permitted under AS 05.15;

(ii) the printing of raffle tickets;

(iii) advertising;

(iv) utilities, maintenance, property taxes, insurance, and depreciation of the portion of a building, together with improvements, owned by the holder of the permit that is used for gaming activity;

(v) the lease or rental of property and facilities;

(vi) postage;

(vii) freight;

(viii) accounting services;

(ix) employee wages and payroll taxes;

(x) pull-tab taxes under AS 05.15.184 ;

(xi) janitorial services for the premises;

(xii) food for player consumption on the premises provided free of charge;

(xiii) legal and consulting services, if directly related to the conduct of an activity authorized under AS 05.15 or this chapter;

(xiv) door prizes;

(xv) interest on allowable loans; and

(xvi) other amounts allowed by generally accepted accounting principles as modified by AS 05.15 and this chapter;

(B) does not include

(i) gifts to members and players;

(ii) membership fees;

(iii) vehicle cost and expenses;

(iv) fees not directly related to the conduct of the authorized activity;

(v) entertainment;

(vi) tobacco products and alcoholic beverages;

(vii) transportation of players;

(viii) child care or babysitting;

(ix) promotional items;

(x) lobbying expenses;

(xi) for purposes of AS 05.15.165 (b), the amount of otherwise authorized expenses that exceed the limitations provided in AS 05.15.160 (c) and (d);

(xii) an amount paid for expenses other than goods and services directly connected to the conduct of the gaming activities if a legal obligation does not exist to make payment;

(xiii) general administrative or other overhead not related to gaming;

(xiv) per diem or stipends to members, including board members and officers, to attend organizational meetings in their own communities; and

(xv) other expenditures not directly connected to the gaming activities.

(4) "cash prizes" include

(A) currency and coinage of the United States or a foreign country;

(B) gold, silver, and other precious metals;

(C) negotiable instruments including checks, money orders, stocks, bonds, and other securities; and

(D) gift certificates redeemable for cash;

(5) "direct relative" means the individual's spouse or spousal equivalent, parent, mother-in-law, father-in-law, brother-in-law, sister-in-law, brother, sister, child, or stepchild;

(6) "door prize" means a prize awarded in a drawing for which no consideration is provided by any of the participants;

(7) "electronic bingo paper" means an electronic device that replicates a traditional bingo card as described in 15 AAC 160.570(b) (3) and that is not capable of being connected to a random number generator, or of being played without the direct participation of a player in a bingo game;

(8) "financial interest" for a person means the person or the person's direct relative has an ownership interest in, or receives a financial benefit from an asset; for purposes of this chapter, a person has a financial interest in a corporation if the person or the person's direct relative owns 10 percent or more of the outstanding stock, or is an officer or director, of a corporation that owns or receives benefit from an asset.

(9) "flare card" means a printed card or sheet that is provided by a pull-tab manufacturer with a pull-tab game;

(10) "gift" means a voluntary transfer of something of value for which no consideration is received; "gift" does not include a donation provided to a charitable organization to be used by that organization to support its charitable mission, if the donation has no effect on gaming and is not for the benefit of an official representative of the organization;

(11) "hard card" means a reusable bingo card;

(12) "ideal gross receipts" means the amount of receipts that would be received if each pull-tab in a series was sold at face value;

(13) "licensee" means a person that holds a valid operator's license under AS 05.15.122 , pull-tab manufacturer's license under AS 05.15.181 , or pull-tab distributor's license under AS 05.15.183 ;

(14) "manager of gaming" means the person responsible for the conduct of gaming by a permittee or multiple-beneficiary permit;

(15) "non-gaming source" means a source of income from activities not regulated by AS 05.15 or this chapter;

(16) "nonprofit trade association" means an association of merchants, craftsmen, or businesses in a particular trade or industry that is organized for the promotion of the common interest of the trade or industry and that operates without profit to its members;

(17) "notice of violation" means a written notice by the department to a permittee, licensee, or registered vendor that a violation of AS 05.15 or this chapter has occurred or may occur;

(18) "outboard motor association" means an association that operates without profit to its members and is organized primarily to promote power-boat racing and use of power boats;

(19) "permit" means a permit issued by the department under AS 05.15.020 or a multiple-beneficiary permit under AS 05.15.100 (d);

(20) "permittee" means an entity or group of entities holding a permit;

(21) "primary gaming location" means a location used primarily for the conduct of a gaming activity;

(22) "prohibited financial interest" means a prohibited conflict of interest under this chapter;

(23) "self-directed permit" means a qualified organization or municipality that conducts an authorized activity under its own permit;

(24) "spousal equivalent" means a person who is cohabiting with another person in a relationship that is like a marriage but that is not a legal marriage;

(25) "validated bingo sheet" means a date-stamped bingo sheet or bingo card;

(26) "animal classic" has the meaning given in AS 05.15.690 (46);

(27) "chicken contest" means a game of chance in which prizes are awarded for the correct guess concerning an activity involving chicken manure and

(A) a numbered grid; or

(B) a lettered grid;

(28) "rat race" means a game of chance in which prizes are awarded for the correct guess of which numbered or colored hole on a wheel a rat, hamster, gerbil, or other rodent enters as the wheel is slowly rotated;

(29) "bucket or basket raffle" means a raffle in which

(A) a bucket or basket is placed in front of each of two or more prizes;

(B) a player buys dual roll tickets, with the option of placing one of each ticket pair in the bucket or basket of choice for drawing for the indicated prize; and

(C) the player may receive tickets only at the event, even if the ticket price is paid in advance;

(30) "calendar raffle" means a raffle in which a player buys a calendar with an attached raffle ticket stub, and where the player submits the stub for deposit in a drawing container, with drawings to be conducted on multiple dates, as stated in the schedule provided with the calendar;

(31) "progressive raffle" means a raffle in which

(A) the drawing is made from a pool consisting of the entire list of members of the permittee organization;

(B) if the person whose member number is drawn purchased a ticket for that particular drawing, that person wins the raffle prize amount, consisting of the prize money accumulated since the last winning member number was drawn; and

(C) if the person drawn did not purchase a ticket for that particular drawing, there is no winner for that drawing and the prize is added to the prize to be awarded at the next regular drawing in the progressive raffle;

(32) "split-the-pot raffle" means a raffle where the prize is 50 percent of the gross receipts raised in selling tickets.

History: Eff. 7/30/94, Register 131; am 11/10/96, Register 140; am 1/1/2003, Register 164; am 12/18/2004, Register 172; am 9/3/2005, Register 175

Authority: AS 05.15.020

AS 05.15.060

AS 05.15.112

AS 05.15.122

AS 05.15.130

AS 05.15.160

AS 05.15.165

AS 05.15.180

AS 05.15.181

AS 05.15.183

AS 05.15.184

AS 05.15.690