HB 152 — Alabama Gaming Commission, established, duties provided for; casino-style games, sports wagering, and lottery games, regulated; gambling offenses, further provided

Page 5 HB152 Engrossed b.

The Alabama Gaming Commission Page 9 HB152 INTRODUCED established by this chapter.

Page 6 HB152 Engrossed 6.

Individuals who perform, or who supervise the performance of, the function of receiving and transmitting Page 10 HB152 INTRODUCED sports wagers.

or any individual involved solely in the resort or hotel functions of a licensed Page 7 HB152 Engrossed gaming establishment.

The term includes, but is not limited to, a system for processing information that can alter the normal criteria of a random selection, that affects the operation of any game, or that Page 11 HB152 INTRODUCED determines the outcome of a game.

Goods or services offered to a gaming establishment licensee by a contractor, employee, or third party which directly relate to the gaming establishment Page 8 HB152 Engrossed or casino-style gaming activity, including, but not limited to, gaming equipment manufacturers, suppliers, and repairers;

The term does not include non-gaming auxiliary services, including, but not limited to, restaurants, bars, Page 12 HB152 INTRODUCED clubs, and other food and beverage services;

A draw-based game of Page 9 HB152 Engrossed chance that generally involves the drawing of numbers at random for a prize.

The term does not include video lottery Page 13 HB152 INTRODUCED terminals.

The total amount of money or value in any form received as a result of any gaming activity, whether or not approved by the commission, excluding free bets and promotional credits, less federal excise taxes, voided Page 10 HB152 Engrossed wagers, and the total money or value in any form paid as prizes or winnings, including the cash equivalent of any merchandise or thing of value awarded as a prize.

Page 14 HB152 INTRODUCED (28) PERSON.

The acceptance of wagers that Page 11 HB152 Engrossed have a basis in a sporting event that has not yet occurred or is already underway, including the outcome of the sporting event or the individual performance statistics of one or more athletes in a sporting event, or a combination thereof by any system or method of wagering.

Single-game bets, teaser bets, parlays, Page 15 HB152 INTRODUCED over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, and straight bets.

Page 12 HB152 Engrossed b.

A means of raising money by selling numbered paper tickets where one or more numbered paper tickets are subsequently drawn at random and the holder Page 16 HB152 INTRODUCED or holders of a matching ticket wins a prize.

Nothing in this chapter shall be deemed to apply to, authorize state or commission regulation or taxation of, or require state or commission approval of, gaming activities or Page 13 HB152 Engrossed sports wagering conducted on land held in trust by the United States for the Poarch Band of Creek Indians, except to the extent that the provision is expressly incorporated into a tribal-state gaming compact entered into by the State of Alabama and the Poarch Band of Creek Indians.

Any license or permit awarded under this chapter to Page 17 HB152 INTRODUCED conduct any form of gaming activity shall be deemed the granting of the privilege to conduct the activity.

(2) One member of the public, appointed by the Speaker Page 14 HB152 Engrossed of the House of Representatives.

(5) One member of the public, appointed by the President Pro Tempore of the Senate from a list of two Page 18 HB152 INTRODUCED nominees submitted by the Minority Leader of the Senate.

(c) After the expiration of the initial terms, members Page 15 HB152 Engrossed appointed to the commission shall serve for four-year terms and shall be confirmed with the advice and consent of the Senate at the first regular or special session of the Legislature held after the appointment.

Page 19 HB152 INTRODUCED (d) All appointing authorities shall coordinate their appointments to assure the commission membership is inclusive and reflects the racial, gender, geographic, urban, rural, and economic diversity of the state.

(7) May not be actively engaged in the business of a Page 16 HB152 Engrossed gaming establishment or in the operation of casino-style gaming activities, lottery games, or sports wagering.

(9) May not have a financial interest greater than one percent in any of the following:

Page 20 HB152 INTRODUCED b.

(i) Any member of the commission may be removed for cause by his or her respective appointing authority.

Page 17 HB152 Engrossed §41-30-52.

provided, that members of the commission may participate in a meeting of the commission in Page 21 HB152 INTRODUCED person, by means of telephone conference, video conference, or other similar communications equipment so that all individuals participating in the meeting may hear each other at the same time.

Each member of the commission shall receive annual compensation equal to one-half of that of a member of the Page 18 HB152 Engrossed Legislature and the same per diem and travel allowances provided for state employees.

These rules are Page 22 HB152 INTRODUCED exempt from the requirements of the Alabama Administrative Procedures Act and shall expire on January 1, 2027.

(4) To seize and impound any equipment, supplies, or premises used in violation of laws or commission rules Page 19 HB152 Engrossed governing the conduct of gaming activities, subject to the procedures provided under Section 20-2-93.

Page 23 HB152 INTRODUCED (7) To provide for the issuance of licenses for the operation of casino-style gaming activities and sports wagering and to provide for the renewal, modification, extension, suspension, revocation, transfer, or forfeiture of a license.

(1) Not later than the second legislative day of each Page 20 HB152 Engrossed regular session, submit an annual report to the Governor and the Legislature disclosing the total gaming revenues, operating and administrative expenses of the commission, and information relating to the number of licenses issued, suspended, revoked, or transferred during the reporting period.

The annual report shall additionally describe the organizational structure of the commission and summarize the Page 24 HB152 INTRODUCED functions performed by each organizational division within the commission.

Executive director and deputy director of Page 21 HB152 Engrossed the commission.

Page 25 HB152 INTRODUCED (2) The executive director shall meet all of the following qualifications:

(3) The executive director shall devote his or her full time and attention to the duties required under this chapter Page 22 HB152 Engrossed and may not hold any other office of profit or perform any other services for profit or any other gain.

(b)(1) The executive director may appoint a deputy Page 26 HB152 INTRODUCED director who shall perform duties designated by the executive director.

(d) The executive director and any deputy director may not have a financial interest greater than one percent in any of the following:

(a) The executive director shall direct and supervise Page 23 HB152 Engrossed all administrative and technical activities in accordance with this chapter and with the rules, policies, and procedures adopted by the commission.

Page 27 HB152 INTRODUCED (2) Acquire real property in accordance with existing law and make improvements thereon on behalf of the commission.

(a)(1) An employee of the commission may not have a financial interest greater than one percent in any of the following:

Page 24 HB152 Engrossed c.

Page 28 HB152 INTRODUCED (2) An employee of the commission with decision-making authority may not participate in any decision involving a gaming establishment licensee with whom the employee has a financial interest.

(e) The commission shall bond commission employees with Page 25 HB152 Engrossed access to commission funds in such an amount as provided by the commission and may bond other employees as deemed necessary.

(f) For purposes of the Merit System Act, Article 1 of Chapter 26 of Title 36, the employees of the commission shall Page 29 HB152 INTRODUCED be employed in the unclassified service and shall be entitled to insurance, retirement, and other state employees' benefits.

security measures, Page 26 HB152 Engrossed systems, or procedures;

Information deemed confidential pursuant to this section shall be exempt Page 30 HB152 INTRODUCED from public disclosure.

The enforcement division shall have independent and primary authority and jurisdiction to Page 27 HB152 Engrossed investigate violations of this chapter and enforce the general laws and rules of the commission.

The enforcement division may take any means necessary to aid the commission in the administration and enforcement of this chapter, the gaming laws, and rules of the commission, and to effectively Page 31 HB152 INTRODUCED eradicate any unlawful gaming activity or unlawful gaming-related activity in the state.

(3) Have a law enforcement background of at least 10 Page 28 HB152 Engrossed years, including executive level experience with specific participation in complex investigations of financial crimes, conspiracy, racketeering, and other related crimes.

For purposes of the Merit Page 32 HB152 INTRODUCED System Act, Article 1 of Chapter 26 of Title 36, the Gaming Enforcement Officer shall be employed in the exempt service.

Page 29 HB152 Engrossed (2) Auditors and forensic accountants.

(6) Any other staff necessary for the operation of the Page 33 HB152 INTRODUCED division.

(e) For purposes of the Alabama Criminal Justice Information Center and the National Crime Information Center, personnel of the Gaming Enforcement Division shall be Page 30 HB152 Engrossed considered an originating agency identifier for the purposes of criminal background checks and access to criminal history data.

(f) For purposes of the immunity afforded in Section 6-5-338, personnel of the Gaming Enforcement Division who are Page 34 HB152 INTRODUCED certified by the Alabama Peace Officers' Standards and Training Commission shall be deemed law enforcement officers.

Page 31 HB152 Engrossed (c) The Gaming Enforcement Officer shall identify those individuals subject to the training requirements in this section and a schedule for completion of the required curriculum by division personnel.

Duties and powers of the Gaming Enforcement Page 35 HB152 INTRODUCED Division.

(2) Inspect all equipment and supplies on the premises 991 of a gaming establishment or lottery retailer.

Page 32 HB152 Engrossed (7) Make arrests of violators of this chapter, the gaming laws and rules of the commission, and any other laws of this state.

(8) Demand access to and inspect, examine, photocopy, and audit all papers, books, and records of applicants for Page 36 HB152 INTRODUCED licensure, licensees, and gaming service providers on their premises or elsewhere as practicable, in the presence of the licensee or an agent relating to the proceeds generated by any activities regulated by the commission and all other matters affecting the enforcement of this chapter or commission rules.

Page 33 HB152 Engrossed All of the following shall be privileged and confidential, unless presented as evidence at a public hearing of the commission:

Page 37 HB152 INTRODUCED (2) Documents subpoenaed by the commission in furtherance of an investigation or other activity of the enforcement division.

The Attorney General, district attorneys, or other prosecuting attorneys, upon request, shall assist in any action for injunction or any Page 34 HB152 Engrossed prosecution based on a violation of this chapter, any gaming law, or a rule of the commission.

Except to the extent authorized under Section 41-30-54, Page 38 HB152 INTRODUCED casino-style gaming activities may only be operated, carried on, conducted, maintained, or exposed for play by a gaming establishment licensee or as otherwise authorized by this chapter.

(3) Two licenses shall be reserved for initial issuance in the Page 35 HB152 Engrossed following counties:

If a license is not issued under this subdivision by June 1, 2029, or if an issued license has been inactive for five calendar years, the commission may award the license for a gaming establishment to be located in another Page 39 HB152 INTRODUCED county or municipality pursuant to a competitive process adopted by the commission and subject to local approval under Section 41-30-152.

(1) The applicant's proposed capital investment at the location, including the applicant's commitment to offer 991 amenities such as restaurants and entertainment venues.

(10) The applicant's plans for ensuring the opportunity Page 40 HB152 INTRODUCED for participation by minority owned businesses as contractors, Page 36 HB152 Engrossed vendors, and other affiliates.

The governing body of the county or municipality may direct the judge of probate of the county to submit the question of whether to allow a gaming establishment to be located in the applicable county or municipality to the Page 41 HB152 INTRODUCED qualified electors of the county or municipality.

Page 37 HB152 Engrossed b.

(a) A person desiring to operate, carry on, conduct, Page 42 HB152 INTRODUCED maintain, or expose for play casino-style gaming activities Page 38 HB152 Engrossed shall apply to be considered for licensure by the commission.

(7) Information, documentation, and assurances concerning the financial background and resources as may be Page 43 HB152 INTRODUCED required to establish the financial stability, integrity, and Page 39 HB152 Engrossed responsibility of the applicant, including bank references, business and personal income and disbursement schedules, tax returns and other financial reports filed with governmental agencies, and business and personal accounting and check records and ledgers.

(c) Within a reasonable time after receiving an application under this section, the commission shall determine Page 44 HB152 INTRODUCED and notify the applicant in writing whether the application is Page 40 HB152 Engrossed complete.

License fees shall be not less than five million dollars ($5,000,000), as determined by the commission with respect to each applicant, based upon the Page 45 HB152 INTRODUCED following factors:

Page 41 HB152 Engrossed (1) The number and type of gaming machines at the location.

(1) The moral character, honesty, and integrity of the Page 46 HB152 INTRODUCED applicant.

Page 42 HB152 Engrossed (2) The reputation, experience, and financial integrity of the applicant.

and (ii) create or enhance the dangers of unsuitable, unfair, or unlawful practices, methods, and operations in the activities authorized by this chapter and the financial arrangements and Page 47 HB152 INTRODUCED activities incidental to the gaming activities authorized by Page 43 HB152 Engrossed this chapter.

(12) Whether an applicant registered and accepted the regulation of the commission, became subject to taxation, and provided information required by the commission, as provided under Section 65(e) of the Constitution of Alabama of 2022, Page 48 HB152 INTRODUCED and rules of the commission pursuant to Section 41-30-54.

The Page 44 HB152 Engrossed commission may give an applicant enhanced consideration for satisfying this subdivision.

License renewal fees and license terms shall be set by the commission one year prior to the Page 49 HB152 INTRODUCED expiration of the license term as provided by rule of the Page 45 HB152 Engrossed commission.

(a) The commission shall approve any proposed transfer of a license issued pursuant to this article, including any change of principal owner or investor of the licensee, prior to any transfer of the license.

(b)§41-30-158. Any proposed transfer of a license which would result in the gaming activities of a gaming establishment being transferred to a different county or municipality shall be subject to the local approval requirements of Section 41-30-152.

(c) The commission may not approve a transfer that would result in a gaming establishment being transferred within 50 miles of an existing gaming establishment licensed by the commission or on trust lands.

Page 50 HB152 INTRODUCED §41-30-158.

Page 46 HB152 Engrossed (b) The Poarch Band of Creek Indians shall submit its business plan relating to its proposed operation at the additional site for review by the commission.

Page 51 HB152 INTRODUCED (1) The gaming service provider is licensed by the commission pursuant to Section 41-30-160 to provide gaming services.

(b) A gaming establishment licensee shall submit any material change in a gaming services contract previously approved by the commission to the commission for its approval Page 47 HB152 Engrossed or rejection before the material change may take effect.

(2) Possess the necessary experience and financial ability to successfully carry out the functions of a gaming Page 52 HB152 INTRODUCED services provider.

Page 48 HB152 Engrossed (c) An applicant for a license to provide gaming services shall do all of the following:

(d) A license to provide gaming services shall authorize the licensee to provide gaming services at any Page 53 HB152 INTRODUCED licensed gaming establishment pursuant to a gaming services contract.

(f) The commission shall authorize the renewal of a gaming services license upon verification that the gaming services provider continues to comply with all applicable statutory requirements and rules of the commission and has Page 49 HB152 Engrossed paid its annual license fee.

No action, claim, counterclaim, defense, or other legal contention challenging the validity of such a license shall be brought or maintained in a court of this state by an unsuccessful gaming establishment license applicant, and the courts of this state shall be powerless and without jurisdiction to issue to an Page 54 HB152 INTRODUCED unsuccessful gaming establishment license applicant an injunction, writ, order, or any other form of relief that would have the effect of preventing the commission from issuing a license or invalidating a license previously awarded by the commission.

(d) Any court's injunction, writ, order, or other form Page 50 HB152 Engrossed of relief that would have the effect of preventing the commission from issuing a license or invalidating a license previously awarded shall be immediately appealable to the Alabama Supreme Court in the same manner as a final order in the action.

Page 55 HB152 INTRODUCED (1) Promptly report to the commission any facts or circumstances related to the licensed gaming activity which would constitute a violation of state or federal law.

(3) Hold the commission and this state harmless from, and defend and pay for the defense of, claims that may be Page 51 HB152 Engrossed asserted against a licensee, the commission or its members in their official capacity, or the state or employees thereof, arising from the licensee's actions or omission while conducting any licensed gaming activity.

(8) Acquire gaming activities and gaming equipment by purchase, lease, or other assignment and provide a secure location for the placement, operation, and play of those games Page 56 HB152 INTRODUCED and gaming equipment.

(11) Ensure that gaming activity is placed and remains placed in the specific locations within designated gaming Page 52 HB152 Engrossed areas at the gaming establishment which have been approved by the commission.

Page 57 HB152 INTRODUCED (a) Prior to commencing the operation of any gaming activity at a gaming establishment, a gaming establishment licensee shall submit to the commission for its approval a detailed floor plan depicting the location of the designated gaming area in which gaming activity or gaming equipment will be located and the proposed arrangement thereof.

(b) Any floor plan submission that satisfies the requirements of the rules adopted by the commission shall be considered approved by the commission unless the licensee is notified in writing to the contrary within one month of filing Page 53 HB152 Engrossed a detailed floor plan.

Page 58 HB152 INTRODUCED (d) Patrons are deemed to have agreed that the determination of whether the patron is a valid winner is subject to the game play rules and, in the case of any dispute, shall be determined by the commission.

(a) A gaming establishment licensee, in the exercise of Page 54 HB152 Engrossed its business judgment, may determine and establish with the approval of the commission, all of the following relating to its licensed gaming activities:

(a) Gaming establishment licensees accepting bets or Page 59 HB152 INTRODUCED wagers shall post in a conspicuous location at each specific location where the gaming activity is occurring indicating the permissible minimum and maximum wagers pertaining to table games at that location.

Complimentary service, gift, cash, or other Page 55 HB152 Engrossed item.

(3) The complimentary item consists of coins, tokens, Page 60 HB152 INTRODUCED cash, or other complimentary items or services provided through any complimentary distribution program, the terms of which shall be filed with the commission upon implementation of the program or maintained pursuant to commission rule.

provided, however, any complimentary Page 56 HB152 Engrossed cash or non-cash gifts in excess of an amount per trip to be set by rule of the commission are supported by documentation regarding the reason the gift was provided to the patron and his or her guests, including, where applicable, the patron's player rating.

(b) This section does not prohibit individuals under 21 years of age from being allowed on the premises of a gaming establishment where licensed gaming activity is being Page 61 HB152 INTRODUCED conducted, so long as those individuals are restricted to areas of the gaming establishment in which casino-style gaming activity is not being conducted.

Page 57 HB152 Engrossed The holder of a gaming establishment license shall maintain daily records showing the gross receipts and adjusted gross receipts of the licensed activities and shall timely file with the commission any additional reports required by the commission by rule.

(c) Nothing in this article shall authorize any online casino-style gaming activities or other in-person or online Page 62 HB152 INTRODUCED gaming activities, including lottery games, except sports wagering.

Page 58 HB152 Engrossed (2) Information, documentation, and assurances, as prescribed by rule of the commission, that may be required to establish the good character, honesty, and integrity of the principal owners and investors of the applicant and its gaming employees.

To meet the requirements of this subdivision, each applicant, in writing, Page 63 HB152 INTRODUCED shall authorize the examination of all bank accounts and related records as may be deemed necessary by the commission.

An applicant is presumed to have met this Page 59 HB152 Engrossed standard if the applicant maintains, on a daily basis, a bankroll and equivalent provisions in an amount that is at least equal to the average daily minimum bankroll or equivalent provisions, calculated on a monthly basis, for the corresponding month in the previous year.

(7) Information, documentation, and assurances as may be required to establish that the applicant has sufficient business ability and gaming experience as to establish the likelihood of the creation and maintenance of a successful, Page 64 HB152 INTRODUCED efficient sports wagering operation.

Page 60 HB152 Engrossed (10) A nonrefundable application fee to be set by the commission by rule.

(d) Each person holding a license under this article has a continuing duty to immediately inform the commission of any material change in status relating to any information that Page 65 HB152 INTRODUCED may disqualify the person from holding the license.

(a) The commission may issue licenses authorizing a licensee to operate, carry on, conduct, maintain, or expose Page 61 HB152 Engrossed for play sports wagering activities as follows:

Sports wagering licensees may provide promotional credits, incentives, bonuses, or similar benefits designed to Page 66 HB152 INTRODUCED induce sports bettors to wager.

A sports wagering platform may satisfy this requirement by using any reasonable commercially Page 62 HB152 Engrossed available age-verification software or program.

Page 67 HB152 INTRODUCED (1) Qualifications and conditions of licenses issued for the operation of sports wagering either in person or online.

(4) Protections for patrons placing wagers, including Page 63 HB152 Engrossed requirements to ensure responsible gaming.

(c) The temporary permit shall authorize the operator Page 68 HB152 INTRODUCED of the racetrack to conduct in-person sports wagering on race events at the racetrack.

(a) Notwithstanding any provision of this chapter, a person desiring to conduct a traditional raffle or traditional Page 64 HB152 Engrossed bingo for charity fundraising shall apply to the commission for a charity fundraising permit under this article.

Page 69 HB152 INTRODUCED (g) The commission shall ensure that a permit may only be awarded only to a bona fide charitable organization, as defined under Section 41-30-2, acting as an amateur fundraiser that is raising money for charitable purposes only.

(a) The commission shall issue a charitable fundraising permit to an applicant who meets all of the requirements of Page 65 HB152 Engrossed this section.

Page 70 HB152 INTRODUCED (6) A description of the intended use of any net gaming proceeds of the charitable game operated by the organization.

Page 66 HB152 Engrossed (2) The amount and use of the net proceeds of the charitable game.

Page 71 HB152 INTRODUCED (1) Compensate any person for the provision of supplies or prizes used in the operation of a charitable game, except to pay the actual fair market value of the prizes or supplies necessary for the operation of the charitable game.

A person who knowingly violates this article shall be Page 67 HB152 Engrossed guilty of a Class C misdemeanor.

Page 72 HB152 INTRODUCED (6) The game is not operated through a sports wagering platform.

Page 68 HB152 Engrossed The Legislature recognizes that the operations of a state lottery are unique activities for state government and that a corporate structure will best enable the lottery to be managed in an entrepreneurial and business-like manner.

A lottery game in which a player Page 73 HB152 INTRODUCED scratches or otherwise removes anything overlaying words or symbols to determine if the player has won, as indicated by the symbols and words that are displayed.

Any item, product, or service in the amount of one million dollars ($1,000,000) or more, Page 69 HB152 Engrossed including, but not limited to, major advertising contracts, annuity contracts, prizes, products, and services unique to the state lottery.

Page 74 HB152 INTRODUCED (a) There is created a state lottery.

(c) The corporation shall be domiciled in the State of Page 70 HB152 Engrossed Alabama.

(b) The voting members of the board shall be residents Page 75 HB152 INTRODUCED of the State of Alabama and may not be serving as a public official, as that term is defined in Section 36-25-1.

(iv) one term shall Page 71 HB152 Engrossed expire after four years;

Members of the board shall not have any direct or indirect interest in an undertaking that puts their personal interest in conflict with that of the corporation, including, but not limited to, an interest in a major Page 76 HB152 INTRODUCED procurement contract or a participating retailer.

(g) Meetings of the commissionboard shall be subject to the Page 72 HB152 Engrossed Alabama Open Meetings Act;

(1) The record relates to or was provided by a confidential source or informant and relates to lottery security, applicant, vendor, or retailer qualifications or Page 77 HB152 INTRODUCED conduct.

Page 73 HB152 Engrossed (4) The record is covered by another exemption under federal or state law.

Page 78 HB152 INTRODUCED (d) Following his or her appointment and during his or her entire employment by the board, the president shall reside in this state.

(2) Recommend rules for adoption to the Alabama Gaming Commission as necessary to carry out and implement the Page 74 HB152 Engrossed operations of the corporation, the conduct of lottery games in general, and any other matters necessary or desirable for the efficient and effective operation of the lottery or convenience of the public.

Page 79 HB152 INTRODUCED d.

Any other matters necessary to carry out this act and necessary for the efficient and effective operation of the Page 75 HB152 Engrossed lottery.

(10) Supervise and administer the lottery in accordance Page 80 HB152 INTRODUCED with this article and the rules adopted by the commission governing this article.

(11) Submit quarterly and annual reports to the Governor, the Lieutenant Governor, the Speaker of the House of Representatives, the State Treasurer, the State Auditor, the Joint Legislative Committee on Performance Evaluation and Expenditure Review, the Alabama Gaming Commission, the Director of Finance, and the Commissioner of Revenue containing financial information and projections which include, but are not limited to, disclosure of gross revenues, Page 76 HB152 Engrossed expenses, and net proceeds for the period.

Page 81 HB152 INTRODUCED (20) Enter into written agreements with one or more other states or sovereigns for the operation, marketing, and promotion of a joint lottery or joint-lottery games.

Contracts for the purchase or lease of real property as are necessary for the operation and promotion of the Page 77 HB152 Engrossed lottery.

Page 82 HB152 INTRODUCED (4) Enter into contracts with lottery retailers.

(7) Enter into any contract pursuant to this article with any person for the promotion and operation of the lottery Page 78 HB152 Engrossed or for the performance of any of the functions as provided in this article or rule of the commission unless the contract constitutes a major procurement.

(12) For good cause, suspend, revoke, or refuse to Page 83 HB152 INTRODUCED renew any contract entered into in accordance with this article or rule of the commission.

(14) Upon receiving specific or general approval of the board, enter into contracts with consultants and technical assistants as may be required to implement and administer this Page 79 HB152 Engrossed article.

(19) Upon request, provide assistance to the Gaming Enforcement Division, local district attorney, and the Page 84 HB152 INTRODUCED Attorney General during an investigation into a violation of this article.

and the reaction of residents of this state to existing or proposed features of lottery games with a view toward implementing improvements that will tend to serve the purposes Page 80 HB152 Engrossed of this article.

(b) The corporation shall be exempt from the requirements of the state procurement law, Article 5 of Chapter 4 of Title 41, Code of Alabama 1975, and the requirements of Chapter 16 of Title 41, relating to the design and operation of the lottery or purchase of lottery equipment, Page 85 HB152 INTRODUCED tickets, and related materials.

In all procurement decisions, the corporation shall take into account the particularly sensitive nature of the state lottery and shall promote and ensure security, honesty, fairness, and integrity in the operation and administration of the lottery and the objectives of raising Page 81 HB152 Engrossed net proceeds for the benefit of the state.

Page 86 HB152 INTRODUCED §41-30-410.

(a) The Alabama State Bureau of Investigation shall perform a criminal background check on potential vendors, Page 82 HB152 Engrossed including potential lottery retailers and potential employees of the corporation.

(2) On a subsequent offense, not less than two hundred Page 87 HB152 INTRODUCED dollars ($200) nor more than one thousand dollars ($1,000).

To claim a lottery prize of six hundred dollars ($600) or more, an individual Page 83 HB152 Engrossed holding a winning lottery ticket must provide to the corporation the individual's name, address, and any other information required by rule of the Department of Revenue.

Any prize, or portion thereof, remaining unpaid at the death of a prizewinner shall be paid to the estate of the deceased prizewinner or to the trustee of a trust established by the deceased prizewinner if a copy of Page 88 HB152 INTRODUCED the trust document or instrument has been filed with the corporation, along with a notarized letter of direction from the deceased prizewinner, and no written notice of revocation has been received by the corporation prior to the deceased prizewinner's death.

Page 84 HB152 Engrossed (2) No prize shall be paid arising from a claimed ticket that is stolen, counterfeit, altered, fraudulent, unissued, produced or issued in error, unreadable, not received, unclaimed or not recorded by the corporation within the applicable deadline, lacking in captions that conform and agree with the play symbols as appropriate to the lottery game involved, or not in compliance with any additional specific rules and public or confidential validation and security tests of the corporation appropriate to the particular lottery game involved.

(4) A holder of a winning ticket from an Alabama lottery game or from a multi-state or multi-jurisdiction Page 89 HB152 INTRODUCED lottery game shall claim a prize within the timeframe provided for by rule of the board.

(6) No prize shall be paid upon a lottery ticket purchased or sold in violation of this article or rule adopted Page 85 HB152 Engrossed thereunder.

Page 90 HB152 INTRODUCED (1) Any member of the board.

(4) Any vendor,spouse, includingchild, brother, sister, or parent residing as a lotterymember retailer.of the same household in the principal place of abode of any individual listed in this subsection.

(5) Any spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of abode of any individual listed in this subsection.

Page 86 HB152 Engrossed (a)(1) The board shall coordinate with the Department of Human Resources to recommend rules for adoption to the Alabama Gaming Commission providing for the withholding of lottery prizes of individuals who have outstanding child support arrearages as reported to the corporation, beginning at prize levels to be determined by the board.

The Department of Revenue and the corporation shall cooperate to Page 91 HB152 INTRODUCED implement this section.

All lottery proceeds received by the corporation, including all monies from the sale of lottery Page 87 HB152 Engrossed tickets and all other sources of revenue, shall be deposited into the fund.

Upon their deposit into the Lottery for Education Fund, any monies representing net Page 92 HB152 INTRODUCED proceeds shall become the unencumbered property of the State of Alabama and the corporation shall have no power to agree or undertake otherwise.

Any contract or financing agreement entered into pursuant to this subsection must be approved by the Finance Director of the Department of Page 88 HB152 Engrossed Finance.

(a) The corporation shall develop and maintain a statewide network of lottery retailers that will serve the public convenience and promote the sale of lottery tickets, while ensuring the integrity of the lottery operations, games, Page 93 HB152 INTRODUCED and activities.

Page 89 HB152 Engrossed §41-30-418.

(b) No person shall be selected as a lottery retailer Page 94 HB152 INTRODUCED for the sale of lottery tickets if the person has done any of the following:

(3) Has been convicted of any felony in this state, unless more than five years have elapsed from the date of the individual's release from incarceration without a subsequent Page 90 HB152 Engrossed conviction of a crime described in this subsection.

Cancellation, denial, revocation, Page 95 HB152 INTRODUCED suspension, renewal rejection, or termination of contract with lottery retailer.

(2) Failure to accurately account for lottery tickets, revenues, or prizes as required by this article and rules Page 91 HB152 Engrossed adopted thereunder.

(b)(1) Following a public hearing on the matter, if the president determines that the cancellation, denial, revocation, suspension, rejection of renewal, or termination of a lottery retailer contract is in the best interest of the Page 96 HB152 INTRODUCED lottery, the public welfare, or the State of Alabama, the president may cancel, deny, revoke, suspend, reject the renewal, or terminate the contract.

(a)(1) All proceeds from the sale of lottery tickets received by a lottery retailer shall be held in trust by the Page 92 HB152 Engrossed lottery retailer until paid to the corporation either directly or through the corporation's authorized collection representative.

(b)(1) The board shall require each lottery retailer to place all lottery proceeds due the corporation in a bank account in an institution insured by the Federal Deposit Page 97 HB152 INTRODUCED Insurance Corporation not later than the close of the next banking day after the date of collection by the lottery retailer until the date the proceeds are paid over to the corporation.

(c) A lottery retailer thatshall cashesreceive aseven winningpercent lotteryof ticketthe shallsales receive,of aslottery atickets cashingsold bonus,by one percent of the cashedlottery amount.retailer.

(d) Whenever any individual who receives proceeds from Page 93 HB152 Engrossed the sale of lottery tickets in the capacity of a lottery retailer becomes insolvent, or dies insolvent, the proceeds due the corporation from the individual or his or her estate shall have preference over all other debts or demands.

(1) For a first offense, a fine of not less than one hundred dollars ($100) nor more than five hundred dollars Page 98 HB152 INTRODUCED ($500).

Page 94 HB152 Engrossed (1) A valid and current Alabama driver license containing a photograph of the individual presenting the driver license.

(5) A valid and current military or federal identification card issued by the federal government containing a photograph of the individual presenting the Page 99 HB152 INTRODUCED identification card.

If the form of identification used is a duplicate, the Page 95 HB152 Engrossed presenting individual shall submit additional identification which contains the name, date of birth, and photograph of the individual.

(2) For a subsequent offense, a fine of not less than two hundred dollars ($200) nor more than one thousand dollars Page 100 HB152 INTRODUCED ($1,000).

Page 96 HB152 Engrossed (a) It shall be unlawful for any person, with intent to defraud, to falsely make, alter, forge, utter, pass, or counterfeit a lottery ticket.

(a) A current or former board member or officer of the corporation, or a corporation or other entity owned in whole or in part by a former board member or officer of the Page 101 HB152 INTRODUCED corporation, may not solicit, accept employment, or enter into a contract for compensation of any kind with a vendor of the corporation during the member's service with the corporation or within one year after termination of service with the corporation.

Page 97 HB152 Engrossed (d) The prohibitions of subsection (a) and subsection (c) do not apply to ex officio members of the board.

(1) If the offense involves less than one thousand Page 102 HB152 INTRODUCED dollars ($1,000), the individual is guilty of a Class D felony.

(3) If the offense involves ten thousand dollars ($10,000) or more, the individual shall be guilty of a Class B felony and shall serve a period of incarceration of not less 10 years nor more than 25 years without benefit of probation, Page 98 HB152 Engrossed parole, or suspension of sentence.

Page 103 HB152 INTRODUCED (1) Compile and submit quarterly and annual reports and financial statements.

(b) A contract for an independent auditor under this section shall be reviewed by and subject to the approval of the Examiner of Public Accounts to ensure that the independent Page 99 HB152 Engrossed auditor is qualified to perform the audit.

The establishment and provision of a last-dollar postsecondary scholarship program for public two-year Page 104 HB152 INTRODUCED community and technical colleges to provide degrees, certifications, course credit, and credentials for in-demand fields to meet instructional and workforce training needs throughout the state.

Have an Alabama driver license or Alabama nondriver Page 100 HB152 Engrossed identification card as provided in Division 1 of Article 1 of Chapter 6 of Title 32.

(3) Support of dual enrollment costs at any public Page 105 HB152 INTRODUCED two-year or four-year university in the state.

Page 101 HB152 Engrossed (5) The provision of funding for four-year colleges for research purposes.

The commission shall timely remit all of the Page 106 HB152 INTRODUCED proceeds for deposit as follows:

Three percent of the total gaming revenue generated each month shall be allocated among the counties where gaming establishments are located on a pro rata basis based on the Page 102 HB152 Engrossed share of net gaming revenue generated in each county.

(b) If the net gaming revenues under subsection (a) properly reflect a net loss, as substantiated by audit, for a Page 107 HB152 INTRODUCED calendar month, an adjustment for the amount of any remaining net loss shall be carried forward on the subsequent tax and fee schedules until the loss is offset by the entity's net gaming revenues.

Page 103 HB152 Engrossed (1) Ninety percent to the Gaming Trust Fund.

All monies received by a county commission under this subdivision shall be distributed, within 30 days of receipt, to the respective sheriff's office to be expended at his or her discretion.

A county commission shall not retain any portion of monies received pursuant to this subdivision.

The county commission shall not be responsible for the expenditure of any monies received pursuant to this subdivision.

All funds received by a sheriff under this subdivision shall be in addition to any other funding sources for the sheriff and may not reduce or replace those funds.

(a)(1) Except for any fees levied pursuant to this chapter, the tax on net gaming revenues levied under this article shall be in lieu of all other state or local taxes, license fees, or franchise fees levied with respect to the Page 108 HB152 INTRODUCED conduct of any gaming activities or the operation of any machines used to conduct casino-style gaming activities or Page 104 HB152 Engrossed sports wagering activities.

(3) Notwithstanding the foregoing, all gaming establishment licensees and sports wagering licensees are liable for all state and local property taxes, lodging taxes, tobacco taxes, and sales and use taxes on merchandise sold in gift shops or retail stores, and food and beverages.

Page 109 HB152 INTRODUCED §41-30-453.

Page 105 HB152 Engrossed (a) The Gaming Trust Fund is created within the State Treasury.

(2) The provision of rural health care services and Page 110 HB152 INTRODUCED telemedicine and virtual health care and the purchase of qualified health benefit plans for adults with income below Page 106 HB152 Engrossed 138 percent of the federal poverty level and parents or other caretaker relatives of dependent children with income between 14 and 138 percent of the federal poverty level to ensure residents have adequate health care services and ambulatory care.

(a) A license issued under this chapter may be suspended or revoked for cause by the commission for any of Page 111 HB152 INTRODUCED the following reasons:

Page 107 HB152 Engrossed (2) Failure to remit applicable state taxes on gaming revenues as required by this chapter.

Page 112 HB152 INTRODUCED (a) Except as otherwise provided by law, before the commission may take any adverse action involving a licensee Page 108 HB152 Engrossed under this article, including the assessment of a civil penalty under Section 41-30-501, the commission shall give the person against whom the action is contemplated an opportunity for a hearing before the members of the commission or a hearing officer designated by the commission.

(a) It is unlawful for a person to knowingly make a Page 113 HB152 INTRODUCED false statement on any application for a license under this chapter or on an application for renewal of a license issued Page 109 HB152 Engrossed under this chapter.

(2) Solicit or knowingly accept or receive a promise of anything of value or benefit while the person is connected with a licensee under this chapter, pursuant to an understanding or arrangement in fact or implied from the circumstances, with the intent that the promise or thing of Page 114 HB152 INTRODUCED value or benefit will influence the actions of the person to affect or attempt to affect the outcome of any gaming activity Page 110 HB152 Engrossed or sports wager, or to influence official action of a member of the commission.

The compensation of the hearing officer shall be fixed by the Court of Civil Appeals.Appeals and all expenses associated with the compensation shall be paid out of the Gaming Trust Fund as operating expenses of the Alabama Gaming Commission.

Page 115111 HB152 INTRODUCEDEngrossed (1) Issue procedural orders setting dates, deadlines, and timetables by which parties must submit or disclose evidentiary material or notices related to the orderly conduct of a contested case.

(6) Issue orders and rulings on all other matters of Page 116112 HB152 INTRODUCEDEngrossed procedure and law necessary to the orderly conduct of the case.

Sections 13A-12-20, 13A-12-21, 13A-12-22, 13A-12-23, 13A-12-24, 13A-12-25, 13A-12-26, 13A-12-27, 13A-12-28, 13A-12-30, Code of Alabama 1975, and Section 13A-11-9, Code of Alabama 1975, as last amended by Act Page 117113 HB152 INTRODUCEDEngrossed 2023-245, 2023 Regular Session, are amended to read as follows:

Any contest, game, gaming scheme or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill Page 118114 HB152 INTRODUCEDEngrossed of the contestants may also be a factor therein.

Any device, machine, paraphernalia, or equipment that is normally used or usable in the playing phases of any gambling activity, whether that Page 119115 HB152 INTRODUCEDEngrossed activity consists of gambling between persons or gambling by a person involving the playing of a machine.

Wagering in which the winning chances or plays are not determined upon the basis of a drawing or other act on the part of persons conducting or connected with Page 120116 HB152 INTRODUCEDEngrossed the scheme, but upon the basis of the outcome of a future contingent event or events otherwise unrelated to the particular scheme.

Nor is it any less a slot machine because apart from its use or adaptability as such it may also sell or deliver something of value on a basis Page 121117 HB152 INTRODUCEDEngrossed other than chance.

(c) Simple gamblingUnlawful gaming is a Class CA misdemeanor." Page 122118 HB152 INTRODUCEDEngrossed "§13A-12-22 (a) A person commits the crime of promoting gambling unlawful gaming activity if he or she knowingly advances or profits from unlawful gambling gaming activity otherwise than as a player, or if having substantial proprietary control or other authoritative control over premises being used to conduct unlawful gaming activity, he or she permits that unlawful gaming activity to occur or makes no effort to prevent its occurrence or continuation.

(2) Notwithstanding subdivision (1), on a second or subsequent conviction of this section, conspiracy to promote unlawful gaming activity is a Class B felony." "§13A-12-24 Page 123119 HB152 INTRODUCEDEngrossed (a) A person commits the crime of unlawful possession of gamblinggaming records in the first degree if, with knowledge of the contents thereof, hethe person possesses any writing, paper, instrument, or article commonly used in any of the following:

(2) Notwithstanding subdivision (1), on a second or subsequent conviction of this section, unlawful possession of gaming records in the first degree is a Class B felony." "§13A-12-25 (a) A person commits the crime of unlawful possession Page 124120 HB152 INTRODUCEDEngrossed of gambling gaming records in the second degree if, with knowledge of the contents thereof, he or she possesses any writing, paper, instrument, or article commonly used in either of the following:

The burden of injecting the issue is Page 125121 HB152 INTRODUCEDEngrossed on the defendant, but this does not shift the burden of proof." "§13A-12-27 (a) A person commits the crime of unlawful possession of a gamblinggaming device if, with knowledge of the character thereof of the gaming device, he or she manufactures, sells, transports, places, or possesses, or conducts or negotiates any transaction affecting or designed to affect ownership, custody, or use of, either of the following:

(c) The crime of unlawful possession of a gambling gaming device does not apply to a slot machine manufactured before 1960, with the intention that the slot machine be used only for the personal and private use of the owner or for public display as a historical artifact in a manner that the slot machine is not accessible to the public." "§13A-12-28 (a) Proof of possession of any gamblinggaming device, Page 126122 HB152 INTRODUCEDEngrossed as defined by subdivision (5) ofin Section 13A-12-20, or any gamblingunlawful gaming record, as specified in Sections 13A-12-24 and 13A-12-25, is prima facie evidence of possession thereof with knowledge of its character or contents.

(c) Money used as betswagers or stakes in Page 127123 HB152 INTRODUCEDEngrossed gamblingunlawful gaming activity in violation of this article is forfeited to the state and by court order shall be transmitted to the General Fund of the stateshall be subject to forfeiture pursuant to the procedures set forth in Section 20-2-93." "§13A-11-9 (a) A person commits the crime of loitering if he or she does any of the following:

(6) Loiters or remains in any transportation facility, unless specifically authorized to do so, for the purpose of soliciting or engaging in any business, trade, or commercial Page 128124 HB152 INTRODUCEDEngrossed transactions involving the sale of merchandise or services.

Prior to making an arrest for an initial Page 129125 HB152 INTRODUCEDEngrossed violation of subdivision (a)(1), a law enforcement officer may offer to transport any person in violation of subdivision (a)(1) to a location in the jurisdiction that offers emergency housing, if applicable.

Page 130126 HB152 INTRODUCEDEngrossed (b) A gaming establishment shall post notice of this prohibition and the penalties for violations in a manner determined by the commission.

§13A-12-35 (a) It is unlawful to instruct an individual in cheating or in the use of a device for that purpose, with the knowledge or intent that the information or use may be Page 131127 HB152 INTRODUCEDEngrossed employed to violate Chapter 30 of Title 41, this chapter, or rules adopted by the commission.

§13A-12-38 (a) It is unlawful for an individual, other than a gaming establishment employee or agent acting in furtherance of his or her employment, to have in his or her possession on the grounds of a gaming establishment, or grounds contiguous to the gaming establishment, any device intended to be used to Page 132128 HB152 INTRODUCEDEngrossed violate Chapter 30 of Title 41, this chapter, or a rule of the commission.

(3) The state also recognizes the history of Page 133129 HB152 INTRODUCEDEngrossed gaming-related corruption that has occurred outside of the State of Alabama.

Page 134130 HB152 INTRODUCEDEngrossed (4) An officer or managerial employee of any person identified in this subsection.

Page 135131 HB152 INTRODUCEDEngrossed and no agent of an inaugural committee or legislative caucus organization shall accept a monetary or in-kind donation from a person known by the agent to be a person identified in subsection (b).

(d) A judgment recovered under the provisions of this section is a defense to any proceeding on any garnishment Page 136132 HB152 INTRODUCEDEngrossed served after the recovery of such judgment, and the court may make any order staying proceedings as may be necessary to protect the rights of the defendant.

"§38-4-14 (a) For the purposes of this section, the term "public assistance benefits" means money or property provided directly Page 137133 HB152 INTRODUCEDEngrossed or indirectly to eligible persons through programs of the federal government, the state, or any political subdivision thereof, and administered by the Alabama Department of Human Resources.

(2) A person who is disqualified from receiving public assistance benefits under this subsection shall have the right Page 138134 HB152 INTRODUCEDEngrossed to a hearing pursuant to the Alabama Administrative Procedure Act.

(2) A person who is disqualified from receiving public assistance benefits under this subsection shall have the right Page 139135 HB152 INTRODUCEDEngrossed to a hearing pursuant to the Alabama Administrative Procedure Act.

(f)(1) The Alabama Department of Human Resources shall consult with providers of automatic teller machine services to consider the implementation of a program or method of blocking access to cash benefits from an electronic benefits transfer access card issued by the department at automatic teller machines located in or at a retail establishment the primary purpose of which is the sale of alcoholic beverages, a casino, a tattoo facility, a facility providing psychic services, or an establishment that provides adult-oriented entertainment in Page 140136 HB152 INTRODUCEDEngrossed which performers disrobe or perform in an unclothed state.

If an electronic benefits transfer access card has already been issued to the deceased recipient, the department shall deactivate the card." Page 141137 HB152 INTRODUCEDEngrossed Section 8.

Between the effective date of this act and Page 142138 HB152 INTRODUCEDEngrossed the passage of the constitutional amendment proposed in House Bill ___ of the 2024 Regular Session, this act shall be implemented to whatever extent it is not in conflict with the Constitution of Alabama of 2022.

Page 143139 HB152 Engrossed House of Representatives Read for the first time and referred ................08-Feb-24 to the House of Representatives committee on Economic Development and Tourism Read for the second time and placed ................14-Feb-24 on the calendar:

amendment Read for the third time and passed ................15-Feb-24 as amended Yeas 67 Nays 30 Abstains 1 John Treadwell Clerk Page 140