Bill Summary – FastDemocracy

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
 Expenditures/Revenues
 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
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                            0.0           0.0          0.0                                 0.0                0.0              0.0              0.0
 Fund Source (Operating Only)
 None
 Total                                               0.0              0.0                 0.0              0.0                0.0              0.0              0.0
 Positions
 Full-time
 Part-time
 Temporary
 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)
 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?                                      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
                                                 FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                  BILL NO. CSHB 128
2022 LEGISLATIVE SESSION
Analysis
   Background
   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
   needs.
(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