HB 151 — Proposed constitutional amendment; Alabama Gaming Commission, established to regulate, license, and tax certain limited forms of gaming activity and stop unlawful gaming activity; compact with PCI, authorized; local bingo provisions, repealed

HB151 INTRODUCEDENGROSSED HB151 69RI31Z-1CURHQJQ-2 By Representatives Blackshear, Whitt (Constitutional Amendment) RFD:

08-Feb-24 Page 0 69RI31Z-1HB151 02/07//2024Engrossed CMH2 (L)CMH4 2024-424A 2BILL 4TO SYNOPSIS:BE ENTITLED AN ACT 9 Proposing an amendment to the Constitution of Alabama of 2022, relating to lotteries, gift enterprises, and gaming activities;

Under Section 65 of the Constitution of Alabama of 2022, lotteries and gift enterprises are prohibited.

Also, several local provisions of the constitution purport to authorize certain forms of bingo within various counties and municipalities within the state and authorize the regulation of such activity by local sheriffs.

This bill would propose an amendment to the Constitution of Alabama of 2022, to authorize five limited forms of gaming activities:

An official state lottery administered by a public lottery corporation, casino-style games conducted only in person at up to seven locally approved licensed gaming establishments, limited sports wagering, traditional raffles, and traditional paper bingo.

All other forms of gaming in the state would be prohibited.

The proposed amendment would create the Alabama Gaming Commission to regulate, tax, and license all lawful gaming activity conducted in accordance with general law and would create a law enforcement division within the commission which would police all gaming activities and gaming-related activities across the entire state.

The proposed amendment would prohibit any local Page 1 HB151 INTRODUCED amendment to the Constitution of Alabama of 2022 not applicable to the entire state which relates to lotteries, gift enterprises, casino-style games, sports wagering, gift raffles, or bingo.

The proposed amendment would also authorize the Governor to execute a compact with the Poarch Band of Creek Indians to regulate gaming activities on tribal lands.

A BILL TO BE ENTITLED AN ACT Proposing an amendment to the Constitution of Alabama of 2022, relating to lotteries, gift enterprises, and gaming activities;

to add Page 2 HB151 INTRODUCED Section 65.03 to the Constitution of Alabama of 2022, to prohibit certain local amendments to the Constitution of Alabama of 2022, which relate to lotteries, gift enterprises, casino-style games, sports wagering, raffles, or bingo;

to add Section 65.04 to the Constitution of Alabama of 2022, to authorize the Governor to enter into a compact with the Poarch Page 1 HB151 Engrossed Band of Creek Indians for the operation of Class III games on tribal lands;

to add Section 65.05 to the Constitution of Alabama of 2022, to provide for the authority of the Legislature to grant jurisdiction to a court to hear matters concerning gaming;

(1) An official state lottery, administered by a public Page 3 HB151 INTRODUCED corporation established by general law, using only tickets made of cardboard, paper, plastic, or some functionally similar material unless otherwise required to participate in a Page 2 HB151 Engrossed multi-jurisdiction lottery.

95 (5) Traditional bingo, using only cardboard, paper, plastic, or some functionally similar material.

(e) Any person that establishes to the satisfaction of Page 4 HB151 INTRODUCED the commission that it conducted gaming activities pursuant to the authority of general law or a local provision of the Constitution of Alabama of 2022, prior to the ratification of Page 3 HB151 Engrossed this amendment may continue to operate until January 1, 2027, so long as the person does all of the following:

95 (4) Provides a description of the gaming activities employed in its operation, the methods of delivery of such gaming activities, the number of machines or devices used to conduct such gaming activities, and other information required by the commission.

Sections 65.01, 65.02, 65.03, 65.04, and 65.0465.05 are added to the Constitution of Alabama of 2022, to read as follows:

Section 65.01 (a) There is established a commission within the executive branch of government to protect consumers from unscrupulous gaming practices, to ensure the integrity of licensed gaming operators, to quickly stop unlawful gaming and unlawful gaming-related activities, to mitigate the effects of problem gaming, to preserve the aesthetic character of the Page 5 HB151 INTRODUCED State of Alabama, and to produce revenues that improve the quality of life of residents of the state, all pursuant to general law.

Page 4 HB151 Engrossed (b) The Legislature, by general law, may provide for the membership, powers, and duties of the commission and shall establish a law enforcement division within the commission to police the conduct of all gaming activities within the state and to effectively eradicate any unlawful gaming activity or unlawful gaming-related activity in this state.

Section 65.04 Page 6 HB151 INTRODUCED (a) The Governor shall negotiate and may execute a Tribal-State compact with the Poarch Band of Creek Indians for the operation and regulation of Class III games and sports Page 5 HB151 Engrossed wagering on lands held in trust by the United States for the benefit of the Poarch Band of Creek Indians, as provided under the Indian Gaming Regulatory Act, 25 U.S.C.

Section 65.05 Notwithstanding any other provision of this constitution, the Legislature, by general law, may grant original jurisdiction to any court in the State of Alabama, including any appellate court, to hear matters concerning Page 6 HB151 Engrossed gaming, including matters in which the commission or lottery corporation or their members, officers, employees, or agents are named parties.

The following local provisions of the Constitution of Alabama of 2022, which purport to authorize or Page 7 HB151 INTRODUCED otherwise relate to bingo or charitable bingo or a lottery or gift enterprise, are repealed:

Page 7 HB151 Engrossed "Proposing an amendment to the Constitution of Alabama of 2022, to (1) authorize five limited forms of gaming activity:

an official state lottery administered by a public lottery corporation, casino-style games played only in person at up to seven locally approved licensed gaming Page 8 HB151 INTRODUCED establishments, limited sports wagering, traditional raffles, and traditional paper bingo;

Page 98 HB151 Engrossed House of Representatives Read for the first time and referred to................08-Feb-24 Representatives committee onEconomic Development and Tourism Read for the second time and placed ont................14-Feb-24 calendar:

1 amendment Read for the third time and passed as a................15-Feb-24 Yeas 70 Nays 32 Abstains 0 JohnTreadwell Clerk Page 9