Bill Summary – FastDemocracy

State of Alaska
                                                               Fiscal Note
                                                                                                  Bill Version:                    SB 130
 2021 Legislative Session
                                                                                                  Fiscal Note Number:              1
                                                                                                  (S) Publish Date:                5/5/2021
 Identifier:       SB130-DOR-TAX-04-30-2021                                         Department:       Department of Revenue
 Title:            ELECTRONIC PULL-TAB GAMES                                        Appropriation: Taxation and Treasury
 Sponsor:          LABOR & COMMERCE                                                 Allocation:       Tax Division
 Requester:        (S)L&C                                                           OMB Component Number:                2476
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                    (Thousands of Dollars)
                                                 Included in
                                    FY2022       Governor's
                                Appropriation      FY2022                                                Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2022        FY 2022       FY 2023                          FY 2024             FY 2025          FY 2026        FY 2027
 Personal Services                          ***                         ***                              ***                 ***              ***            ***
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                            ***           0.0           ***                               ***                ***              ***             ***
 Fund Source (Operating Only)
 None
 Total                                               ***             0.0                 ***              ***                ***              ***             ***
 Positions
 Full-time
 Part-time
 Temporary
 Change in Revenues
 None                                                ***                                 ***              ***                ***              ***             ***
 Total                                               ***             0.0                 ***              ***                ***              ***             ***
 Estimated SUPPLEMENTAL (FY2021) cost:                                        0.0              (separate supplemental appropriation required)
 Estimated CAPITAL (FY2022) cost:                                             0.0              (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                     Yes
 If yes, by what date are the regulations to be adopted, amended or repealed?                                     TBD
 Why this fiscal note differs from previous version/comments:
 Not applicable, initial version.
 Prepared By:               Collen Glover, Director                                                                       Phone:       (907)269-1033
 Division:                  Tax Division                                                                                  Date:        04/30/2021 01:00 PM
 Approved By:               Brian Fechter, Administrative Services Director                                               Date:        04/30/2021
 Agency:                    Department of Revenue
Printed 5/3/2021                                                           Page 1 of 2                                                          Control Code: AWaAX
                                                                                                                   SB 130 - Fiscal Note 1
                                                  FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                   BILL NO. SB 130
2021 LEGISLATIVE SESSION
Analysis
   Background
   This bill would allow pull-tab games to be expanded to include electronic pull-tabs or e-tabs. Current statute AS
   05.15.690(38) defines a pull-tab game as a game of chance where a card, the face of which is covered to conceal a
   number, symbol, or set of symbols, is purchased by the participant and where a prize is awarded for a card containing
   certain numbers or symbols designated in advance and at random. The language of this bill would change the "card"
   requirement to include an electronic representation of a card.
   The Department would need to establish regulations to ensure the quality and data security of the devices used for
   electronic pull-tabs.
   There is no effective date to this bill so it would become effective 90 days after passage.
   Revenue Impact
   The revenue impacts of this bill cannot be determined due to lack of knowledge about this legislation may change the
   amount and volume of gaming activity. It is possible that adding electronic pull-tab games to the gaming portfolio could
   either increase overall gaming activity or just switch activity from an existing game to these new electronic pull-tab games.
   The state revenues from pull-tabs sales consists of these sources:
   1. Pull-tab tax of 3% of gross receipts less prizes per pull-tab game
   2. Pull-tab manufacturer license fee of $2,500 per year
   3. Pull-tab distributer license fee of $1,000 per year
   4. Pull-tab vendor permit fee of $50 per year per location
   5. Net proceeds fee of 1% of net proceeds from a permittee if gross receipts is greater than $20,000 for all gaming.
   The state revenue impacts of the pull-tab tax has averaged about $2 million per year for the past four years.
   Implementation Cost
   The cost impacts of this bill cannot be determined at this time until further study and work with electronic pull-tab
   vendors can occur to better understand how adding this game will impact both the current programming and personnel
   resources. The Gaming Program uses the current Tax Revenue Management System (TRMS) so the Department is
   uncertain at this time if interfaces between these new electronic pull-tab systems to TRMS would be needed.
(Revised 1/13/2021 OMB/LFD)                                                                                         Page 2 of 2
SB130-DOR-TAX-04-30-2021                                        Page 2 of 2                                               Control Code: AWaAX
Statutes affected: 
SB0130A, AM SB 130, introduced 04/23/2021: 05.15.690