State of Alaska
Fiscal Note
Bill Version: CSHB 128(FIN)
2022 Legislative Session
Fiscal Note Number: 2
(H) Publish Date: 3/18/2022
Identifier: HB128CS(FIN)-DOR-TAX-1-28-22 Department: Department of Revenue
Title: USE OF INTERNET FOR CHARITABLE GAMING Appropriation: Taxation and Treasury
Sponsor: FIELDS Allocation: Tax Division
Requester: (H) Rules OMB Component Number: 2476
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2023 Governor's
Appropriation FY2023 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2023 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Personal Services
Capital Outlay
Grants & Benefits
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Change in Revenues
None *** *** *** *** *** ***
Total *** 0.0 *** *** *** *** ***
Estimated SUPPLEMENTAL (FY2022) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2023) 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)
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If yes, by what date are the regulations to be adopted, amended or repealed? 12/31/22
Why this fiscal note differs from previous version/comments:
Updated for new effective date in committee substitute.
Prepared By: Colleen Glover, Director Phone: (907)269-1033
Division: Tax Division Date: 01/28/2022
Approved By: Eric DeMoulin, Administrative Services Director Date: 01/28/22
Agency: Department of Revenue
Printed 3/17/2022 Page 1 of 2 Control Code: EYDRi
CSHB 128(FIN) - Fiscal Note 2
The proposed legislation would allow for certain charitable gaming activities to be conducted online. Current statute, AS
05.15.640, disallows the use of broadcasting and the internet to conduct a charitable gaming activity. This bill amends AS
05.15.640 to allow the following gaming activities to be conducted using the Internet: raffle or lottery, dog mushers
contest, derby, or type of classic defined in AS 05.15.690.
These activities are currently allowed though June 30, 2022 due to the passage of HB76 in 2021, which was the Emergency
Declaration bill. This proposed legislation would allow for these certain charitable gaming activities to continue in the
same manner as allowed now under this temporary legislation.
The Department of Revenue would need to establish regulations for online tickets sales to ensure compliance with
charitable gaming laws. This includes standards for age and location verification to ensure the purchaser is of legal age
and within the state. There would also need to be guidelines for data security to ensure that the online ticket sales were
authorized. These would need to be done as soon as possible as the bill has an immediate effective date, but acknowledge
that regulations typically take several months to be completed.
Revenue Impact
The revenue impacts of this bill cannot be determined due to not knowing how this legislation may change the amount
and volume of gaming activity.
It is possible that by allowing these games to be conducted online, there may be an increase of gaming activities. The
potential incremental impact to state revenues is insignificant. The amount of net proceeds and permit fees from all
charitable gaming activities to state revenue is ~$500,000 per year. The impact from this legislation is expected to be de
minimis to state revenues.
Implementation Cost
The proposed legislation results in no change to our Tax Revenue Management System (TRMS). The Department of
Revenue can implement this bill with existing resources and does not anticipate any continuing costs or additional staff
(Revised 11/23/2021 OMB/LFD) Page 2 of 2
HB128CS(FIN)-DOR-TAX-1-28-22 Page 2 of 2 Control Code: EYDRi

Statutes affected:
HB0128A, AM HB 128, introduced 03/08/2021: 05.15.060, 05.15.100, 05.15.640
HB0128B, AM CSHB 128(FIN), introduced 03/31/2021: 05.15.060, 05.15.100, 05.15.640
HB0128C, AM CSHB 128(FIN) am, introduced 03/18/2022, passed House 03/21/2022: 05.15.060, 05.15.100, 05.15.640