SB310

ENGROSSED

By Senator Marsh

A BILL
TO BE ENTITLED
AN ACT

Relating to gaming; to provide legislative intent; to provide definitions; to further provide for the powers and duties of the Alabama Gaming Commission; to create an advisory board to the commission; to provide for the powers and duties of the advisory board; to provide for the personnel of the commission; to provide for the executive director and deputy director of the commission; to create an enforcement division within the commission; to provide for representation of the commission by the Attorney General; to further provide for the licensure of gaming facilities to operate certain games; to provide for the licensure of management contract service providers; to provide for the assessment of civil penalties by the commission; to provide for criminal penalties for certain violations; to provide for appeal of commission decisions; to provide rulemaking authority; to provide for certain reporting requirements by the commission; to provide for the distribution of funds in the Gaming Trust Fund; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, as amended by Amendment 890, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. Legislative findings and intent.

The Legislature finds and declares the following:

(1) The purpose of this act is to further implement the constitutional amendment proposed in SB319 of the 2021 Regular Session, upon adoption of the amendment by the voters of this state providing for the establishment of the Alabama Gaming Commission to supervise the conduct of the Alabama Education Lottery, bingo, charitable bingo and raffles, sports wagering, and casino-style games in this state.

(2) It is necessary to establish effective and transparent regulation of gaming facilities by the commission to protect consumers and to promote integrity within the gaming industry in this state.

Section 2. Definitions.

For the purposes of this act, the following words shall have the following meanings:

(1) ADDITIONAL SITE. A single site operated by the Poarch Band of Creek Indians offering casino-style games and sports wagering located in Jackson or DeKalb County.

(2) AUTHORIZED INTERNET SPORTS WAGERING PLATFORMS. An operator of an Internet-based platform who has been issued a management service license by the commission to, and has elected to, offer wagers pursuant to the terms of the license.

(3) BINGO. The game commonly or traditionally known as bingo and defined by the following characteristics, when players provide something of value to play and receive something of value for winning:

a. Each player uses one or more cards with spaces arranged in five columns and five rows, with an alphanumeric or similar designation assigned to each space.

b. Alphanumeric or similar designations are randomly drawn and announced one by one.

c. In order to play, each player must pay attention to the value announced; if one of the values matches a value on one or more of the player's cards, the player must physically act by marking his or her card accordingly.

d. A player can fail to pay proper attention or to properly mark his or her card, and thereby miss an opportunity to be declared winner.

e. A player must recognize that the player's card has a predetermined pattern of matching values, and in turn announce to the other players and the announcer that this is the case before any other player does so.

f. The game of bingo contemplates a group activity in which multiple players compete against each other to be the first to properly mark a card with the predetermined winning pattern and announce that fact.

g. The game of bingo is played with actual physical cards made of cardboard, paper, or some functionally similar material that is flat and is preprinted with the grid and the designations referenced in this subdivision. The game of bingo may not be played with an electronic, computer, or other technologic aid.

The term does not include electronic bingo.

The term does not apply to any game operated on Poarch Band of Creek Indians trust lands and at covered locations.

(4) CASINO-STYLE GAME. Any casino game, activity, or device approved by the commission that is accessed for play by physical presence at the location site of the game, activity, or device, including, but not limited to: Slot machines; a video lottery; video lottery terminals; electronic representations of pari-mutuel wagering games, including, but not limited to, historical horse racing machines, historical sporting event machines, machines of any kind that are based on historic events, and other technological aids and electronic facsimiles of these games; banking or banked card games, including, but not limited to, poker, baccarat, chemin de fer, and blackjack; all dice games; roulette; all table games and electronic representations of such games; all electronic sweepstakes games, terminals, or devices; and any electronic gaming device used to play these games. The term includes electronic bingo. The term does not include the Alabama Education Lottery or pari-mutuel wagering on simulcast and live racing events.

(5) CHARITABLE BINGO AND RAFFLES. Bingo, as defined in subdivision (2), conducted by or for the benefit of a bona fide religious, educational, youth, service, senior citizens', fraternal, veterans', or other eleemosynary organization that operates without profit to its members and that either has been in existence continuously as such an organization for a period of three years or is exempt from taxation by virtue of having been classified as a tax exempt nonprofit organization by the Internal Revenue Service, United States Government. The term includes charitable raffles and draw downs. The term does not include electronic bingo.

(6) COMMISSION. The Alabama Gaming Commission created by the proposed constitutional amendment in SB 319 of the 2021 Regular Session and further provided for in this act.

(7) CORPORATION. The Alabama Education Lottery Corporation.

(8) COVERED LOCATION. The existing Greene County location, the existing Houston County location, the Jefferson County location, the existing Macon County location, the existing Mobile County location, and a location in Dekalb County or Jackson County owned by the Poarch Band of Creek Indians.

(9) COVERED OPERATOR. The owner of a casino license won through a competitive bid process or the wholly owned subsidiary of the owner of such a license. A covered operator must operate the casino at a covered location.

(10) DIRECTOR. The Executive Director of the Alabama Gaming Commission.

(11) ELECTRONIC BINGO. Any game approved by the commission and referred to as bingo if played with an electronic, computer, or other technologic aid.

(12) EXISTING GREENE COUNTY LOCATION. The operator of the currently existing location in Greene County, Alabama, which is commonly known as Greenetrack, and any contiguous land that is later added to the existing location.

(13) EXISTING HOUSTON COUNTY LOCATION. The currently existing location in Houston County, Alabama, which is commonly known as the Crossing at Big Creek, and any contiguous land that is later added to the existing location.

(14) EXISTING JEFFERSON COUNTY LOCATION. The currently existing location in Jefferson County, Alabama, which is commonly known as the Birmingham Race Course, and any contiguous land that is later added to the existing location.

(15) EXISTING MACON COUNTY LOCATION. The currently existing location in Macon County, Alabama, which is commonly known as VictoryLand, and any contiguous land that is later added to the existing location.

(16) EXISTING MOBILE COUNTY LOCATION. The currently existing location in Mobile County, Alabama, which iscommonly known as the Mobile Greyhound Racing facility, and any contiguous land that is later added to the existing location.

(17) HISTORICAL HORSE RACING. A form of horse racing that creates pari-mutuel pools from wagers placed on previously conducted horse races.

(18) INSTANT TICKET. A lottery game in which a player manipulates a ticket to determine if the player has won.

(19) MANAGEMENT SERVICES PROVIDER. A party that holds a license issued by the commission pursuant to Section 25 to operate sports wagering in person at a covered location or through any authorized Internet sports wagering platform on behalf of a covered operator with a sports wagering operator license as authorized by the commission.

(20) NET GAMING REVENUE. The total amount of money or value in any form received by a covered operator with respect to the playing of a casino-style game less the total money or value in any form paid as prizes or winnings as a result of the play, free play, or promotional play.

(21) NET GAMING REVENUE FOR SPORTS WAGERING. The total amount of money or value in any form received by a covered operator or management services provider with respect to sports wagering, excluding free bets and promotional credits, less federal excise taxes 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.

(22) POARCH BAND OF CREEK INDIANS. The federally recognized Indian tribe within the State of Alabama known as the Poarch Band of Creek Indians.

(23) SPORTING EVENT. Any amateur sport or athletic event, professional sport or athletic event, any collegiate sport or athletic event, motor race event, electronic sports event, competitive video game event, or any other event authorized by the commission under this act. The term does not include any amateur youth sport or athletic event.

(24) SPORTS WAGERING. The acceptance of wagers on sporting events or portions of sporting events, the individual performance statistics of athletes in a sporting event, or a combination of any of the same by any system or method of wagering authorized in general law. The term may include single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, straight bets, and any other bet authorized by the commission. The term does not include wagers on fantasy sports contests authorized under Chapter 19F of Title 8, Code of Alabama 1975.

(25) VIDEO LOTTERY or VIDEO LOTTERY TERMINAL. Any electronic interactive game, machine, or device equipped with a video screen and buttons, keys, a keyboard, touchscreen or other input method allowing input by an individual player and into which the player inserts coins, tokens, currency, or other representation of value, including, but not limited to, an electronic card, ticket, or other thing on which value is electronically recorded, as consideration in order for play of a game to be available, and through which, as a result of play of a game to be available, and through which, as a result of the play of the game, the player may receive free games, credits, redeemable for cash or a noncash prize, or some other thing of value, whether received directly from the device or otherwise, determined wholly or predominantly by chance. The term does not include electronic bingo.

Section 3. Alabama Gaming Commission created.

The Alabama Gaming Commission is created as a state agency to supervise the conduct of the Alabama Education Lottery, bingo, charitable bingo and raffles, sports wagering, and casino-style games in the state pursuant to the Constitution of Alabama of 1901, this act, and existing law. The commission shall be located in Montgomery County.

Section 4. Commission members.

(a) The commission shall consist of seven members, appointed as follows:

(1) Two by the Governor.

(2) One by the Speaker of the House of Representatives.

(3) One by the Minority Leader of the House of Representatives.

(4) One by the President Pro Tempore of the Senate.

(5) One by the Minority Leader of the Senate.

(6) One by the Lieutenant Governor.

(b) All members shall be appointed with the advice and consent of the Senate at the first regular or special session of the Legislature held after the appointment; provided, however, that this subsection does not affect the right or authority of an appointee to act pending confirmation or rejection. Initial appointments shall be made within 60 days after ratification of the amendment proposed in SB319 of the 2021 Regular Session, creating the commission and shall serve until confirmed or rejected by the Senate. The appointing authorities of the commission 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.

(c) Members of the commission shall satisfy all of the following qualifications:

(1) Shall be residents of the State of Alabama for at least five years immediately preceding appointment, be United States citizens, and be prominent persons in their businesses or professions.

(2) Shall be at least 30 years of age.

(3) Shall have no felony convictions or convictions for property offenses, fraud, or unlawful gambling, or offenses involving moral turpitude.

(4) May not be the executive director of the commission or an employee of the commission.

(5) May not be a member, employee, or vendor of the Alabama Education Lottery Corporation, or an officer of a political party or the occupant of an official position in a political party, a public official, or actively engaged in the business of, or have a pecuniary interest in, a covered location, an operation owned by the Poarch Band of Creek Indians, or a lottery retailer or lottery vendor.

(6) May not be a supplier of devices or equipment used in the play of casino-style games.

(d)(1) The initial term of office for each member shall be as follows:

a. One member appointed by the Governor and the member appointed by the President Pro Tempore of the Senate shall serve an initial term of four years.

b. One member appointed by the Governor and the member appointed by the Speaker of the House of Representatives shall serve an initial term of three years.

c. The member appointed by the Lieutenant Governor and the members appointed by the Minority Leaders of the House of Representatives and the Senate shall serve an initial term of two years.

(2) Members may serve two complete terms and any portion of an initial term of less than four years or any portion of an unexpired term to which appointed. Any vacancy occurring on the commission shall be filled for the unexpired term by the appointing authority as described in this section, or as otherwise provided by act of the Legislature. Each member of the commission shall serve for the duration of the member's term and until the member's successor is duly appointed and confirmed by the Senate.

(e) Members of the commission shall be subject to the Ethics Law, Section 36-25-1, et seq., Code of Alabama 1975.

(f) The commission shall be subject to the Alabama Sunset Law, Chapter 20 of Title 40, Code of Alabama 1975, as an enumerated agency as provided in Section 41-20-3, Code of Alabama 1975, and shall have a termination date of October 1, 2025, and every four years thereafter, unless continued pursuant to the Alabama Sunset Law.

(g) The commission may not take official action until all members have been appointed. At its initial meeting, the commission shall elect a chair from its membership.

(h)(1) The commission shall meet at least quarterly and at other times as called by the chair or a majority of the commission members.

(2) Members of the commission may participate in a meeting of the commission in 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. Participation by any such means shall constitute presence in person at a meeting for all purposes, including for purposes of establishing a quorum, and the affirmative vote of a majority of the members in attendance shall be necessary for any action of the commission.

(3) Meetings of the commission shall be subject to the Alabama Open Meetings Act.

(4) If any member is absent from two meetings of the four quarterly meetings during any calendar year, the member shall be deemed to have forfeited his or her position on the commission, and a replacement shall be appointed by the respective appointing authority as provided in this act.

(i)(1) A majority of members shall constitute a quorum for the transaction of any business and for the exercise of any power or function of the commission.

(2) Action may be taken and motions and resolutions adopted by the commission at any meeting of the commission by an affirmative vote of four commission members.

(j) No vacancy in the membership of the commission shall impair the right of the members to exercise all the powers and perform all the duties of the commission.

Section 5. Compensation of Members.

Members of the commission shall receive no compensation for their services, but may be paid the per diem and travel allowance as provided for state employees.

Section 6. Alabama Gaming Commission Advisory Board.

(a) There is created the Alabama Gaming Commission Advisory Board, which shall provide information and make recommendations to the Alabama Gaming Commission regarding the implementation and administration of the Alabama Education Lottery Corporation, charitable bingo and raffles, sports wagering, and casino-style games in the state pursuant to the Constitution of Alabama of 1901, this act, and existing law.

(b) The advisory board shall consist of the following members:

(1) One member appointed by the Secretary of the Alabama State Law Enforcement Agency, who is certified by the Alabama Peace Officers' Standards and Training Commission and experienced in law enforcement and criminal investigations with a focus on financial crimes.

(2) One member appointed by the Attorney General, who has extensive prosecutorial experience.

(3) One member appointed by the Governor, who is a certified public accountant in this state with experience in financial audits and forensic accounting.

(4) One member appointed by the Lieutenant Governor who is a licensed attorney in this state and who has significant experience in gaming law and regulatory compliance law.

(5) One member appointed by the Speaker of the House of Representatives, who is a sheriff or police chief with a gaming facility operating within his or her jurisdiction.

(6) One member appointed by the President Pro Tempore of the Senate, who has extensive experience in Indian gaming laws and regulations.

(7) The Commissioner of the Alabama Department of Revenue, or his or her designee.

(8) The Director of the Alabama Securities Commission, or his or her designee.

(9) The Secretary of the Alabama State Law Enforcement Agency, or his or her designee.

(10) The Director of the Alabama Tourism Department, or his or her designee.

(11) The Attorney General, or his or her designee.

(c)(1) The appointed members of the advisory board shall serve at the pleasure of the appointing authority.

(2) All appointing authorities shall coordinate their appointments so that diversity of gender, race, and geographical areas is reflective of the makeup of this state.

(d)(1) The advisory board shall meet as often as necessary, but at least annually, to formulate recommendations to the commission to regulate and administer the lottery and gaming in this state, including identification of any further statutory changes necessary to promote the operation and regulation of the lottery and gaming in this state.

(2) Meetings of the advisory board shall be subject to the Alabama Open Meetings Act.

(3) Members of the advisory board may participate in a meeting of the advisory board in 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. Participation by any such means shall constitute presence in person at a meeting for all purposes, including for purposes of establishing a quorum, and the affirmative vote of a majority of the members in attendance shall be necessary for any action of the advisory board.

(e) The advisory board shall establish its own rules and internal operating policies and procedures. Members of the advisory board shall serve without compensation or reimbursement of expenses. The advisory board may report to the commission in writing at any time. The commission may also allow members of the advisory board to attend regular meetings of the commission and make presentations to the commission.

Section 7. Executive director and deputy director of the commission.

(a)(1) The commission shall appoint an executive director who shall direct the day-to-day operations and management of the commission and shall be vested with all powers and duties as specified by the commission and by law. The executive director shall serve at the pleasure of the commission.

(2) The executive director shall meet all of the following qualifications:

a. Be an attorney licensed to practice law in this state for at least five years and be a person of good moral character.

b. Have no felony convictions or convictions for property offenses, fraud, or unlawful gambling, or offenses involving moral turpitude.

c. May not, after appointment, be a member, employee, or vendor of the Alabama Lottery Corporation, or an officer of a political party or the occupant of an official position in a political party, a public official, or actively engaged in the business of, or have a pecuniary interest in, a covered location, an operation owned by the Poarch Band of Creek Indians or a lottery retailer or lottery vendor.

d. May not be a supplier of devices or equipment used in the play of casino-style games.

e. Any other qualifications adopted by the commission by rule.

(3) The executive director shall devote his or her entire time and attention to the duties required under this act and the business of the commission and may not pursue any other business or occupation or hold any other office of profit.

(4) The executive director shall receive an annual salary determined by the commission.

(b)(1) With the approval of the commission, the executive director may appoint a deputy director who shall perform any and all duties designated by the executive director.

(2) The deputy director shall receive an annual salary determined by the commission.

Section 8. Powers and duties of the executive director.

The executive director of the commission shall direct and supervise all administrative and technical activities in accordance with this act and with the rules, policies, and procedures adopted by the commission. It shall be the duty of the executive director to do all of the following:

(1) Sue and be sued on behalf of the commission.

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

(3) Make, execute, and effectuate any and all agreements or contracts, including contracts for the purchase of goods and services as are necessary for the conduct of the business of the commission.

(4) Employ and direct such personnel as deemed necessary.

(5) Employ by contract and compensate persons and firms as deemed necessary for the operation and administration of the commission.

(6) Prepare a budget for the approval of the commission.

(7) Report quarterly to the Governor, the Legislature, and the commission a full and complete statement of gaming revenues and expenses for the preceding quarter, and report annually on consumer complaints received by the corporation.

(8) Perform other duties as necessary to implement and administer this act.

Section 9. Duties of the commission.

The commission shall adopt, amend, or repeal rules in accordance with the Alabama Administrative Procedure Act, and shall have all of the following powers and duties:

(1) To issue subpoenas and compel the production of documents or items and the attendance of witnesses, to administer oaths, to require testimony under oath, and to enforce its orders.

(2) To appoint impartial hearing examiners who may administer oaths and receive evidence and testimony under oath and make recommendations to the commission.

(3) To demand access to and inspect, examine, photocopy, and audit all papers, books, and records respecting net gaming revenues and net gaming revenues for sports wagering and any other matters necessary to carry out its duties.

(4) To impose reasonable civil fines and penalties on any individual or entity for violations of this act, violations of general law enacted pursuant to this act, or violations of rules adopted by the commission.

(5) To regulate the Alabama Education Lottery Corporation in the operation and conduct of the Alabama Education Lottery.

(6) To provide for the issuance of licenses for the operation of casino-style games and sports wagering and to provide for the renewal, modification, extension, suspension, revocation, transfer, or forfeiture of a license.

(7) To regulate and supervise the conduct and operation of casino-style games and sports wagering and charitable bingo and raffles.

(8) To approve all casino-style games and Alabama Education Lottery games.

(9) To adopt rules and procedures to address the failure of a covered operator or management services provider to timely remit applicable state tax on net gaming revenues, net gaming revenues on sports wagering, license fees, and fines and penalties assessed by the commission.

(10) To adopt rules related to the reasonable operation level for each covered location.

(11) To adopt rules limiting access to casino-style games and sports wagering by minors and other susceptible individuals.

Section 10. Employees of the commission.

(a)(1) An employee or member of the commission may not have a financial interest in any vendor doing business or proposing to do business with the commission or a covered operator or management services provider.

(2) An employee of the commission with decision-making authority may not participate in any decision involving a covered operator or management services provider with whom the employee has a financial interest.

(b) An employee of the commission who leaves the employment of the commission may not represent any vendor, management services contract provider, or covered operator before the commission for a period of two years following termination of employment with the commission.

(c) An applicant for employment with the commission shall submit to the executive director, on a form sworn to by the applicant, his or her name, date of birth, Social Security number, and two complete sets of fingerprints for completion of a criminal history background check through the Alabama State Law Enforcement Agency. Costs associated with conducting a criminal history background check may be paid by the commission.

(d) An individual who has been convicted of a felony, a crime involving moral turpitude, or a crime involving unlawful gambling may not be employed by the commission.

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

(f) Employees of the commission shall not be state Merit System employees, but shall be entitled to insurance, retirement, and other state employees' benefits.

(g) Employees of the commission shall be subject to the Ethics Laws, Sections 36-25-1, et seq., Code of Alabama 1975.

Section 11. Employee participation prohibition.

Any employee or member of the commission may not play any casino-style game or sports wagering at a covered location. Any employee of a covered operator may not play any casino-style game or sports wagering at which he or she is employed.

Section 12. Records of the commission.

(a) Except as provided in subsection (b), records of the commission shall be public records for purposes of Section 36-12-40, Code of Alabama 1975.

(b) The commission may determine which information and records relating to its operations are confidential and not subject to public disclosure. The information includes trade secrets; security measures, systems, or procedures; security reports; employee personnel information unrelated to compensation, duties, qualifications, or responsibilities; and information obtained pursuant to investigations which is otherwise confidential. Information deemed confidential pursuant to this section shall be exempt from public disclosure.

Section 13. Minority business participation.

It is the intent of the Legislature that the commission encourage participation by minority businesses. Accordingly, the commission shall adopt a plan that achieves to the greatest extent possible a level of participation by minority businesses taking into account the total number of all covered operators. The commission may administer training programs and other educational activities to enable eligible minority businesses to compete for licenses on an equal basis. The commission shall monitor the results of minority business participation and shall report the results of minority business participation to the Governor and the Legislature at least on an annual basis.

Section 14. Enforcement division established; assistance by the Alabama State Law Enforcement Agency and sheriffs.

(a) The commission shall establish a Gaming Enforcement Division to investigate violations of gaming laws and enforce the general laws and rules of the commission.

(b) Any alleged violation of the conduct of any gaming activity by a covered operator, management services contract provider, lottery retailer, lottery vendor, or employee or independent contractor of the entity shall be referred to the division for investigation, enforcement, and recommendation to the commission for necessary action relating to a license issued by the commission or referral for prosecution by the Attorney General or district attorney for criminal violations, if necessary.

(c) In addition to the personnel referenced in subsections (e) and (f), the executive director shall employ personnel with a background in law enforcement and investigations to serve in the division as necessary.

(d) The division shall provide reports of investigative and enforcement activity to the commission as often as the commission requires.

(e)(1) To assist the division in the performance of its duties under this section, the commission may enter into agreements with the Alabama State Law Enforcement Agency to facilitate the assistance of agents in investigations and enforcement activities under this section.

(2) The agents appointed under subdivision (1) shall be certified by the Alabama Peace Officers' Standards and Training Commission.

(3) The commission and the Secretary of the Alabama State Law Enforcement Agency may execute memoranda of understanding or other agreements to implement and administer the requirements of this subsection.

(f)(1) The commission may enter into agreements with the sheriff in each county where a covered operator is located to assist the division in investigations and enforcement activities under this section.

(2) A sheriff and the commission may execute memoranda of understanding or other agreements to implement and administer the requirements of this section.

(g) Agents and deputy sheriffs providing assistance to the division under subsections (e) and (f) shall complete annual training as determined by the commission and the Secretary of the Alabama State Law Enforcement Agency, in consultation with the Alabama Peace Officers' Standards and Training Commission.

(h) For purposes of the Alabama Criminal Justice Information Center (ACJIC) and the National Crime Information Center (NCIC), personnel of the division shall be considered an originating agency identifier for the purposes of criminal background checks and access to criminal history data.

Section 15. Powers and duties of the enforcement division.

(a) For the protection of the public and in the public interest in accordance with the policy of this state, the executive director, his or her personnel, or any person operating under the authority of the gaming enforcement division of the commission may do any of the following for cause:

(1) Inspect and examine the premises of covered locations or the premises of where gambling devices or equipment is manufactured, sold, or distributed.

(2) Inspect and examine the premises of lottery retailers.

(3) Inspect all equipment and supplies on the premises of a covered location or lottery retailers.

(4) Summarily seize and remove from the premises of a covered location or lottery retailer and impound any equipment or supplies for the purpose of examination and inspection.

(5) Demand access to and inspect, examine, photocopy, and audit all papers, books, and records of applicants for licensure, covered operators, management services providers, and lottery retailers on their premises or elsewhere as practicable, in the presence of the covered operator or an agent relating to the proceeds generated by any activities regulated by the commission and all other matters affecting the enforcement of the policy or any of the provisions of this act.

Section 16. Representation by the Attorney General.

The Attorney General shall represent the commission and the executive director in any proceeding to which the commission or the executive director is a party under this act and shall also advise the commission and the executive director in all other matters.

Section 17. Licenses required.

A covered operator or management services provider may not engage in any activity in connection with casino-style games, charitable bingo or raffles, or sports wagering in this state for which a license is required by this act or rules of the commission unless all necessary licenses have been obtained in accordance with this act and rules of the commission.

Section 18. Licenses for the operation of charitable bingo and raffles.

(a) A person operating a charitable bingo and raffle operation shall apply to the commission for a license authorizing the person to conduct a charitable bingo or raffle operation.

(b) The person shall pay a nominal fee for the license as determined by the commission by rule.

(c) At the end of the original term of the license to operate a charitable bingo or raffle operation, the license may be serially renewed for a nominal fee established by the commission by rule.

(d) The commission may adopt rules relating to the conduct and operation of charitable bingo and raffles.

(e) A person operating a charitable bingo and raffle operation shall comply with all rules adopted by the commission.

Section 19. Licenses for casino-style games and sports wagering.

(a) Casino-style games and sports wagering may only be operated by a covered operator with a valid license issued by the commission. The commission may adopt rules prescribing the information a covered operator is required to submit to the commission prior to the issuance of a license under this section.

(b)(1) The commission, by rule, shall establish a competitive bidding process for the award of licenses at covered locations, considering market conditions, financial fitness of the bidders, and other factors deemed relevant by the commission. The commission shall set the minimum bid as follows, but may increase the required minimum bid based on market conditions and other factors deemed relevant by the commission:

a. For the sites in Jefferson County and in DeKalb or Jackson County, thirty-five million dollars ($35,000,000).

b. For the site in Macon County, twenty million dollars ($20,000,000).

c. For the sites in Greene, Houston, and Mobile Counties, five million dollars ($5,000,000).

(2) The owners of the covered locations in Greene, Houston, Jefferson, Macon, and Mobile Counties shall have the right to make a final bid exceeding the highest bidder in the competitive bidding process for their respective covered locations.

(3) The Poarch Band of Creek Indians shall have a right to make a final bid exceeding the highest bidder in the competitive bidding process for the covered location in Jackson or DeKalb County.

(c) Upon selection for the award of a license, each covered operator shall pay the applicable license fee upon receipt of an invoice from the commission and as provided by rule of the commission to the Gaming Trust Fund. Once the appropriate license fee is paid, the commission shall issue a license to the covered operator to conduct and operate casino-style games and sports wagering at the covered location for a 10-year term.

(d) The commission shall extend the original license term to 30 years upon request of a covered operator demonstrating a completed capital investment in the covered location that is 10 or more times greater than the initial license fee.

Section 20. Renewal of licenses.

(a) Any license granted to a covered operator under Section 19 may be serially renewed by the covered operator as provided in this section.

(b) Renewal fees and license terms shall be set by the commission one year prior to the expiration of the license term as provided by rule of the commission. The commission shall consider market conditions and other factors deemed relevant by the commission in its determination of the renewal fee.

(c) Upon its determination under subsection (b), the commission shall provide notice to the covered operator of the renewal fee and the new term of the license. The term may be for a longer or shorter period than required for initial licenses under Section 19. The commission shall specify in the notice the time in which the covered operator has to apply for renewal of the license.

Section 21. Suspension, revocation, and forfeiture of licenses.

(a) A license issued to a covered operator under Section 19 may be suspended or revoked for cause by the commission or forfeited by a covered operator for any of the following reasons pursuant to rules adopted by the commission:

(1) Failure to remit a license fee to the commission.

(2) Failure to remit applicable state taxes on net gaming revenues or net gaming revenues on sports wagering.

(3) Failure to pay any fines and penalties assessed by the commission.

(4) Violation of laws or rules of the commission relating to the activities of the covered operator.

(5) Failure to maintain the reasonable operation level, as determined by the commission, at the covered location for a period of 18 consecutive months.

(b) In the event a license is revoked or forfeited as provided in subsection (a), the commission may award a license at any covered location in the same county or similar location in the same county to another operator pursuant to a competitive process as provided by the commission.

(c)(1) The commission may establish a deadline in which a licensee must open its business to the public. If a licensee fails to open its facility by that deadline, the license shall be deemed forfeited.

(2) A covered operator, or its wholly-owned or majority-owned subsidiary, may not own a controlling interest in more than two covered locations.

Section 22. Transfer of a license.

The transfer of a license issued to a covered operator under Sections 19 and 20 may not be transferred unless the commission has approved the transfer pursuant to its rules.

If a license is transferred from a covered operator, the covered operator may be required to pay to the commission a prorated transfer fee based on 50 percent of the original license fee and then reduced for each year it has operated under the license.

Section 23. Floor plan submission requirement.

(a) Prior to commencing the operation of any casino-style games or sports wagering at a covered location, a covered operator shall submit to the commission for its approval a detailed floor plan depicting the location of the designated gaming area in which casino-style games or sports wagering equipment will be located and its proposed arrangement of the gaming equipment.

(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 covered operator is notified in writing to the contrary within one month of filing a detailed floor plan.

Section 24. Management service contracts.

(a) A covered operator may not enter into any management service contract that would permit any person other than the covered operator to act for the covered operator in operating casino-style games, and sports wagering, unless the management service contract satisfies all of the following:

(1) Is with a person licensed under Section 25 to provide management services.

(2) Is in writing.

(3) The contract has been approved by the commission.

(b) A covered operator shall submit any material change in a management service contract previously approved by the commission to the commission for its approval or rejection before the material change may take effect.

(c) A management services contract may not be assigned or transferred to a third party.

(d) The duties and responsibilities of a management services provider under a management services contract may not be assigned, delegated, subcontracted, or transferred to a third party to perform without the prior approval of the commission. Third parties must be licensed under this act before providing service. The commission, by rule, may clarify application of this subsection and provide exceptions to its application.

Section 25. Management service license.

(a) The commission may issue a license to a person providing management services under a management services contract to a covered operator when the commission determines that the person meets the requirements of this section and any applicable rules of the commission.

(b) Each applicant for a management services license shall be of good moral character, honesty, and integrity and shall have the necessary experience and financial ability to successfully carry out the functions of a management services provider. The commission may adopt rules establishing additional requirements for an authorized management services provider. The commission may accept licensing by another jurisdiction, specifically determined by the commission to have similar licensing requirements, as evidence the applicant meets authorized management services provider licensing requirements.

(c) An applicant for a license to provide management services to a covered operator shall demonstrate that the management services that the applicant plans to offer to the covered operator conform or will conform to standards established by rules of the commission and applicable state law. The commission may accept management services provider approval by another jurisdiction, specifically determined by the commission to have management services, as evidence the applicant meets the standards established by the commission and applicable state law.

(d) An applicant for a license to provide management services to a covered operator shall do all of the following:

(1) Submit an application to the commission in the form required by the commission including adequate information to serve as a basis for a thorough background check.

(2) Submit fingerprints for transfer to the Alabama State Law Enforcement Agency for a state and national criminal background check through the Alabama Criminal Justice Information Center (ACJIC) and the National Crime Information Center (NCIC). The cost of the criminal background check shall be paid by the applicant.

(3) Pay to the commission a nonrefundable application and license fee for deposit into the Gaming Trust Fund in the amount of one hundred thousand dollars ($100,000), which shall be in lieu of the first year's license fee provided in subsection (f).

(e) A license to provide management services to a covered operator authorizes the licensee to provide management services to a covered operator at a covered location while the license is active. The commission, by rule, may establish the conditions which constitute an emergency under which the commission may issue provisional licenses pending completion of final action on an application.

(f)(1) A licensed provider of management services shall pay to the commission an annual license fee in an amount of one hundred thousand dollars ($100,000), for deposit into the Gaming Trust Fund, for an initial term beginning prior to the date of the provider's first contract with a covered operator and continuing through the end of the twelfth month thereafter whenever the licensee has paid the renewal fee and has continued to comply with all applicable statutory and requirements in the rules of the commission.

(2) The commission may renew a license to provide management services to a covered operator annually thereafter. A covered operator may continue to use the management services provided by the management services provider while that provider was licensed, notwithstanding the expiration of the provider's license, unless the commission finds the services provided are not conforming to standards established by rule of the commission and applicable state law.

Section 26. Civil penalties.

(a) The commission may assess a civil penalty, not to exceed one hundred thousand dollars ($100,000), on any person who violates any provision of this act or a rule adopted by the commission, whether or not the person is licensed under this act.

(b) The assessment of a civil penalty may be appealed by an aggrieved party as provided in Section 27.

Section 27. Hearing procedures.

(a) Except as otherwise provided by law, before the commission takes any adverse action involving a licensee under this act, including the assessment of a civil penalty under Section 26, it shall give the persons against whom the action is contemplated an opportunity for a hearing before the commission or a hearing officer designated by the commission.

(b) The commission shall give notice of the hearing, to be sent to the person by certified mail addressed to the last known address of the person at least 30 days before the hearing. The person may be represented at the hearing by legal counsel.

(c)(1) If a person fails to comply with a subpoena issued for purposes of this section, on petition of the commission, the Circuit Court of the Fifteenth Judicial Circuit may compel obedience to the subpoena.

(2) If after due notice the person against whom the action is contemplated fails or refuses to appear or provide the item or items for which a subpoena duces tecum was issued, the commission or the commission's designated hearing officer may hear and determine the matter.

(d) Any person aggrieved by a final order or decision of the commission in a contested case may file a petition for appeal in the Alabama Court of Civil Appeals.

Section 28. Criminal penalties for violations.

(a)(1) A person may not do any of the following:

a. Knowingly make a false statement on any application for a license under this act or on an application for renewal of a license issued under this act.

b. Operate, carry on, or expose for play a casino-style game or sports wagering prior to obtaining a license or after the person's license has expired and prior to actual renewal of the license or before the rules for play of the game are approved or modified and approved by the commission.

(2) A violation under subdivision (1) shall be a Class D felony.

(b)(1) For the purposes of this subsection, the phrase "person who is connected with a covered operator" includes, but is not limited to, a person licensed under this act and an officer or employee of a licensee.

(2) A person may not do any of the following:

a. Offer, promise, or give anything of value or benefit to a person who has an ownership or financial interest in, is employed by, or has a service contract with, a covered operator or to that person's spouse or any dependent child or dependent parent, pursuant to an agreement or arrangement, in fact or implied from the circumstances, with intent that the promise or thing of value or benefit will influence the actions of the person in order to affect or attempt to affect the outcome of a casino-style game or sports wager, or to influence official action of the commission.

b. Knowingly solicit or knowingly accept or receive a promise of anything of value or benefit while the person is connected with a covered operator, pursuant to an understanding or arrangement in fact or implied from the circumstances, with the intent that the promise or thing of value or benefit will influence the actions of the person to affect or attempt to affect the outcome of a casino-style game or sports wager, or to influence official action of the commission.

(3) A violation of subdivision (2) shall be a Class C felony.

(4) For purposes of this subsection, "anything of value" shall have the same meaning as "thing of value" as defined in Section 36-25-1, Code of Alabama 1975.

Section 29. Audits and reports.

(a) To ensure the financial integrity of the operation of gaming facilities in this state, the commission shall do all of the following:

(1) Submit annual reports to the Governor and the Legislature disclosing the total gaming revenues, operating and administrative expenses of the commission, information relating to the number of licenses issued, suspended, revoked, or transferred during the reporting period. The annual report shall additionally describe with specificity consumer complaints received by the corporation, and describe the organizational structure of the commission and summarize the functions performed by each organizational division within the commission.

(2) Adopt a system of internal audits and audits of covered operators.

(3) Contract with a certified public accountant or firm for an annual financial audit of the commission. The certified public accountant or firm shall have no financial interest in any vendor with whom the commission is under contract. The certified public accountant or firm shall present an audit report not later than four months after the end of the fiscal year. The certified public accountant or firm shall evaluate the internal auditing controls in effect during the audit period. The cost of this annual financial audit shall be an operating expense of the commission.

(b) The Department of Examiners of Public Accounts may perform an audit or examination of the commission.

Section 30. Duties of covered operators regarding casino-style games.

(a) A covered operator or management services provider shall do all of the following:

(1) Promptly report to the commission any facts or circumstances related to the operation of a covered location which would constitute a violation of state or federal law.

(2) Conduct all casino-style game activities and functions in a manner that does not pose a threat to the public health, safety, or welfare of the citizens of this state and that does not adversely affect the security or integrity of the operation of those games in this state.

(3) Hold the commission and this state harmless from and defend and pay for the defense of any and all claims that may be asserted against a covered operator, the commission, or the state or employees thereof, arising from the covered operator's actions or omission while conducting casino-style games.

(4) Assist the commission in regulating casino-style game revenues.

(5) Maintain all records required by the commission.

(6) Upon request by the commission, provide the commission access to all records and the physical premises where the covered operator's casino-style game activities and related activities occur, for the purpose of monitoring or inspecting the covered operator's activities, the games, gaming equipment, and security equipment.

(7) Keep current in all payments and obligations to the commission.

(8) Acquire casino-style games and gaming equipment by purchase, lease, or other assignment and provide a secure location for the placement, operation, and play of those games and gaming equipment.

(9) Prohibit a person from tampering with or interfering with the operation of any casino-style game.

(10) Ensure that casino-style games are within the sight and control of designated employees of the covered location and under continuous observation by security equipment in conformity with specifications and requirements of the commission.

(11) Ensure that casino-style games are placed and remain placed in the specific locations within designated gaming areas at the covered location which have been approved by the commission. Casino-style games at a covered location may only be relocated in accordance with the rules of the commission.

(12) Maintain at all times sufficient cash and gaming tokens, chips, and electronic cards or other electronic media.

(13) Install, post, and display conspicuously at locations within or about the covered location, signs, redemption information, and other promotional material as required by the commission.

(14) Assume liability for stolen money from any casino-style game.

Section 31. Compliance with federal laws.

The State of Alabama, in accordance with Section 1172 of Title 15 of the United States Code, does hereby declare that any and all casino-style games, bingo equipment, and lottery game equipment, materials, paraphernalia, and supplies may be transported in interstate commerce into or out of the state, including Poarch Band of Creek Indians trust land, without violating that section, or any other applicable federal law, if the equipment, materials, paraphernalia, and supplies are used, to be used, or have been used in the conduct of the Alabama Education Lottery, charitable bingo or raffles, casino-style games, or pari-mutuel games at covered locations or on Poarch Band of Creek Indians trust land.

Section 32. Game rules of play for casino-style games.

(a) Each covered location shall have written rules of play for each casino-style game it operates that are approved by the commission before the game is offered to the public. Rules of play proposed by a covered operator may be approved, amended, or rejected by the commission.

(b) All casino-style games shall be conducted according to the specific rules of play approved by the commission. All wagers and pay-offs of winning wagers shall be made according to those rules of play, which shall establish any limitations necessary to assure the vitality of the game operations.

(c) Each covered operator shall make available in printed form to any patron, upon request of the patron, the complete text of the rules of play of any casino-style game in operation at its covered location, pay-offs of winning wagers, and any other notice to the player required by the commission.

(d) Patrons are considered 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, will be determined by the commission. The determination by the commission shall be final and binding upon all patrons and shall not be subject to further review or appeal.

Section 33. Betting limits; operations, and services for casino-style games.

(a) Notwithstanding any other provision of this act, a covered operator, in the exercise of its business judgment, may determine and establish with the approval of the commission, all of the following relating to casino-style games:

(1) Minimum and maximum wagers.

(2) Promotions subject to rules of the commission.

(3) Any hours of operation that fall below 24 hours a day, seven days a week.

(4) Currency denominations accepted by any mechanical or electronic bill acceptors.

(b) The commission may establish the following parameters for any casino-style game of any kind which is played at a covered location:

(1) Minimum and maximum payout percentages.

(2) Any probability limits of obtaining the maximum payout for a particular play in conformance with industry standards.

(3) Limitations on the types and amounts of financial transactions which a covered location can enter into with its patrons.

Section 34. Posting of betting limits for casino-style games.

(a) A covered operator shall conspicuously post a sign at each casino-style game indicating the permissible minimum and maximum wagers pertaining at that table. The posting of the minimum and maximum wagers only applies to table games.

(b) A covered operator may not require any wager to be greater than the stated minimum or less than the stated maximum. However, any wager actually made by a patron and not rejected by a covered operator prior to the commencement of play shall be treated as a valid wager.

Section 35. Complimentary service, gift, cash, or other item.

(a) A covered operator may not offer or provide any complimentary service, gift, cash, or other item of value to any person, except under any of the following conditions:

(1) The complimentary consists of room, food, beverage, or entertainment expenses provided directly to the patron and his or her guests by the covered operator or indirectly to the patron and his or her guests on behalf of the licensee by a third party.

(2) The complimentary consists of documented transportation expenses provided directly to the patron and his or her guests on behalf of a covered operator by a third party, provided that the licensee complies with the rules adopted by the commission.

(3) The complimentary consists of coins, tokens, 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. Any change in the terms of a complimentary program shall be filed with and approved by the commission upon implementation of the change.

(b)(1) Notwithstanding subsection (a), a covered operator may offer and provide complimentary cash or non-cash gifts that are not otherwise included in that subsection to any person; provided, however, any complimentary cash or non-cash gifts in excess of an amount per trip to be set by interpretive 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, a patron's player rating.

(2) The documentation required under subdivision (1) shall be maintained by a covered operator in accordance with commission rules. For purposes of this subsection, all gifts presented to a patron and a patron's guests directly by the covered operator or indirectly on behalf of the covered operator by a third party within any five-day period shall be considered to have been made during a single trip.

Section 36. Prohibition on participation by minors.

A person under the age of 21 years may not play any casino-style game or engage in sports wagering, be employed to operate any casino-style game or sports wagering, or be present on the premises of a gaming facility where casino-style games or sports wagering is conducted.

Section 37. Sports wagering.

(a) The commission shall adopt rules governing the licensing, administration, and conduct of sports wagering, which shall include all of the following:

(1) Qualifications and conditions of licenses issued for the operation of sports wagering either in person or through any authorized Internet sports wagering platform.

(2) The acceptance of wagers on a sporting event or a series of sporting events and acceptable forms of payment and advance deposit methods by patrons.

(3) The method of accounting to be used by sports wagering operators, including the types of records that shall be maintained by the operator.

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

(b) A person may not engage in any activity in connection with sports wagering in this state unless all necessary licenses have been obtained from the commission in accordance with this section.

(c) The commission may not grant a license until it determines that each person who has control of the applicant meets all qualifications for licensure. For purposes of this subsection, "control of the applicant" means any owner of 10 percent or more of the applicant, its chief executive officer, and any individual who has ultimate responsibility for the applicant's operations in this state.

(d)(1) The commission shall issue a sports wagering operator license to a covered operator as provided in this section.

(2) The fee paid by the covered operator under Sections 19 and 20 shall grant the operator the right to conduct sports wagering, subject to all other qualifications and conditions provided by the commission.

(3) A sports wagering operator license authorizes the operation of sports wagering at a covered location through up to three, individually branded, Internet sports wagering platforms operated by management service providers, which may include websites and associated mobile applications approved by the commission.

(4) A sports wagering operator licensee may not enter into any contract with a management services provider that would permit any person other than the licensee to act as the sports wagering operator licensee's agent in operating sports wagering unless the contract with the management services provider satisfies all of the following:

1. Is with a person licensed as a management services provider.

2. Is in writing.

3. Has been approved by the commission.

(5) A licensed sports wagering operator shall submit to the commission such documentation or information as the commission may require demonstrating that the licensee continues to meet the requirements of the law and rules of the commission.

(e)(1) The holder of a license to operate sports wagering may contract with up to three management service providers to conduct their Internet sports wagering operation and may contract with up to one management services provider to conduct sports wagering at its covered location in accordance with the rules of the commission. Each management services provider shall obtain a license as a management services provider prior to the execution of any contract, and the license shall be issued pursuant to this section and any rules adopted by the commission.

(2) Each applicant for a management services provider license shall meet all requirements for licensure and pay a nonrefundable license and application fee of one hundred thousand dollars ($100,000), which shall be deposited into the Gaming Trust Fund. The commission may adopt rules establishing additional requirements for a management services provider. The commission shall accept licensing by another jurisdiction that has similar licensing requirements, as evidence the applicant meets management services provider licensing requirements.

(3) Management services provider licenses shall be renewed every five years to any licensee who continues to be in compliance with all requirements and who pays the renewal fee determined by the commission.

(f) The commission may enter into sports wagering agreements with other states and jurisdictions to authorize individuals who are physically located in a signatory jurisdiction to participate in sports wagering conducted by one or more operators licensed by the signatory states and jurisdictions.

Section 38. Reports by covered operators.

A covered operator and management services provider shall maintain daily records showing the gross receipts and adjusted gross receipts of the covered location from casino-style games and sports wagering and shall timely file with the commission any additional reports required by rule adopted by the commission.

Section 39. State Tax on Net Gaming Revenues and Net Gaming Revenues on Sports Wagering and distribution of proceeds.

(a) Within 20 days after the end of each calendar month, a covered operator shall pay the commission a tax of 27 percent of the net gaming revenues associated with slot machines and any type of electronic casino-style game, and a tax of 35 percent on any remaining type of casino-style game, including, but not limited to table games, for the covered location for the immediately preceding calendar month, to be distributed as follows:

(1) 95 percent to the Gaming Trust Fund.

(2) 3 percent to the county commission of the county in which the covered operator is located.

(3) 2 percent to the governing body of the municipality in which the covered operator is located, including within its police jurisdiction. If the covered operator is not located within the corporate limits or police jurisdiction of a municipality, 2 percent of the proceeds shall be remitted to the county commission of the county in which the covered operator is located.

(b)(1) Within 20 days after the end of each calendar month, the covered operator and a management services provider shall pay the commission a tax of 20 percent of the net gaming revenue for sports wagering for the location for the immediately preceding calendar month. The commission shall timely remit all of the proceeds for deposit as follows:

a. First to the repayment of the Alabama Trust Fund under the People's Trust Act, Section 29-10-1, Code of Alabama 1975.

b. Upon completion of repayment of the Alabama Trust Fund under the People's Trust Act, to be deposited into the General Fund Budget Reserve Fund established in Section 29-13-3, Code of Alabama 1975, until the total balance in the fund is at least one hundred million dollars ($100,000,000).

c. Upon the completion of payments under subdivisions (1) and (2), to be deposited as follows:

1. 75 percent to the state General Fund.

2. 25 percent to the Alabama Trust Fund.

(2) If the net gaming revenue for sports wagering properly reflects a net loss for a covered operator for a 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 net gaming revenue for sports wagering.

(c) The tax on net gaming revenue and net gaming revenue on sports wagering shall be in lieu of all other state or local taxes, license fees, or franchise fees levied with respect to the conduct of any casino-style games or the operation of any machines used to conduct casino-style games or sport wagering. The license fee payable to the state shall be in lieu of all other state or local license fees or franchise fees levied with respect to a licensee providing hotel services, dining, other facilities, or services ancillary to its gaming activities, if the activities are conducted in conjunction with this act at covered locations, but such providers of hotel services, dining, other facilities, or ancillary services must meet the environmental, fire, health, and safety requirements of other similarly situated license holders in the county and municipality in which the facility is located. Notwithstanding the foregoing, all covered locations are liable for all state and local property taxes, lodging taxes, and sales and use taxes on merchandise sold in gift shops or retail stores, food, and beverages generally applicable at uniform rates to all similarly situated businesses operating in the county and municipality in which the covered location is located, and except with respect to those taxes, fees, or expenses expressly addressed in this act, all other state or local taxes which are generally imposed by the state or a local taxing entity if the taxes are generally applied at rates uniformly applied within reasonable classifications among all businesses operating in the county or municipality, or both.

Section 40. Gaming Trust Fund created; distribution of gaming proceeds.

(a) The Gaming Trust Fund is hereby created within the State Treasury.

(b) Proceeds in the fund shall be applied first to the payment of the reasonable annual expenses of the commission. The commission shall report annually in writing to the Governor and the Legislature regarding its operational and administrative expenses.

(c)(1) Remaining proceeds in the fund shall be annually appropriated by and through an independent supplemental appropriation bill, for capital and nonrecurring expenses, as follows:

a. Proceeds from the tax on net gaming revenue pursuant to Section 39(a) shall be appropriated as follows:

1. 65 percent for information technology infrastructure. The first one billion dollars ($1,000,000,000) appropriated under this subparagraph shall be for the statewide development and expansion of broadband.

2. 25 percent for the provision of health care services, including rural health care services.

3. 10 percent for mental health services.

(2) When the amount distributed under subparagraph (1)a.1. cumulatively reaches seven hundred fifty million dollars ($750,000) for the development and expansion of broadband, the proceeds shall be appropriated as follows:

a. 25 percent for capital or other nonrecurring expenses.

b. 25 percent for the provision of health care services, including rural health care services in counties with a population of less than 100,000.

c. 10 percent for information technology infrastructure.

d. 15 percent for infrastructure.

e. 15 percent for mental health services.

f. 10 percent for grant programs awarded to municipalities and counties for infrastructure improvements.

Section 41. County and municipal grant program.

(a) Proceeds distributed from the Gaming Trust Fund for grant programs awarded to municipalities and counties or infrastructure improvements shall be directed to the Alabama Department of Economic and Community Affairs (ADECA), which shall administer the grant program.

(b) To receive funds under this section, a county or municipality shall file an application with ADECA describing how the funds will be used to improve the infrastructure within its jurisdiction and any other information ADECA may require.

(c) The ADECA, by rule, shall adopt rules providing for the award of funds to counties and municipalities under this section.

Section 42. No provision of this act shall be deemed to apply to, authorize state or commission regulation or taxation of, or require state or commission approval of electronic bingo conducted on land held in trust by the United States for the Poarch Band of Creek Indians. Additionally, no provision of this act shall be deemed to apply to, authorize state or commission regulation or taxation of, or require state or commission approval of casino-style gaming or sports wagering 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.

Section 43. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621, as amended by Amendment 890, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the bill defines a new crime or amends the definition of an existing crime.

Section 44. This act shall take effect on the first day of the third month following its passage and approval by the Governor or its otherwise becoming law, contingent and operative upon ratification of the constitutional amendment proposed in Senate Bill 319 of the 2021 Regular Session creating the Alabama Gaming Commission.


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