2009 alabama senate bill 471 - bingo bill

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    SB4711

    108626-22

    By Senator Ross (Constitutional Amendment)3

    RFD: Tourism and Marketing4

    First Read: 05-MAR-095

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    108626-2:n:02/27/2009:JRC*/ll LRS2009-1413R11

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    SYNOPSIS: This bill proposes additions to the Alabama8

    Constitution to repeal Amendments No. 386, 440,9

    506, 508, 549, 550, 569, 600, 674, 732, 743, and10

    744 of the Alabama Constitution that authorize11

    bingo to be conducted by or on behalf of nonprofit12

    organizations in Calhoun, Etowah, Greene, Houston,13

    Jefferson, Macon, Mobile, and Walker Counties, and14

    the City of White Hall in Lowndes County,15

    authorizes bingo in such political subdivisions of16

    the state, authorizes and requires the execution of17

    a state compact with Indian bingo facilities,18

    levies taxes on bingo operations, limits bingo19

    throughout the state while enhancing tourism20

    through the creation of points of destination, and21

    creates a state gaming commission to regulate bingo22

    in Alabama and enforce the gambling laws of the23

    state.24

    25

    A BILL26

    TO BE ENTITLED27

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    AN ACT1

    2

    Amendment No. 386 and Amendment No. 600 relating to3

    the operation of bingo games by or on behalf of nonprofit4

    organizations in Jefferson County, Amendment No. 440 relating5

    to the operation of bingo games by or on behalf of nonprofit6

    organizations in Mobile County, Amendment No. 506 relating to7

    the operation of bingo games by or on behalf of nonprofit8

    organizations in Etowah County, Amendment No. 508 relating to9

    the operation of bingo games by or on behalf of nonprofit10

    organizations in Calhoun County, Amendment No. 549 relating to11

    the operation of bingo games by or on behalf of nonprofit12

    organizations in Walker County, Amendment No. 550 relating to13

    the operation of bingo games by or on behalf of nonprofit14

    organizations in the City of Jasper in Walker County,15

    Amendment No. 569 relating to the operation of bingo games by16

    or on behalf of nonprofit organizations in Houston County,17

    Amendment No. 743 relating to the operation of bingo games by18

    or on behalf of nonprofit organizations in Greene County, and19

    Amendment No. 744 relating to the operation of bingo games by20

    or on behalf of nonprofit organizations in Macon County are21

    repealed. Amendment No. 674 and Amendment No. 732 relating to22

    the operation of bingo games by or on behalf of nonprofit23

    organizations in the City of White Hall in Lowndes County are24

    superceded by this amendment. The amendment further authorizes25

    bingo in such political subdivisions of the state, authorizes26

    and requires the execution of a state compact with Indian27

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    bingo operators, levies taxes on bingo games, limits bingo1

    throughout the state while enhancing tourism through the2

    creation of points of destination, and creates a state gaming3

    commission for the regulation of bingo games and for the4

    enforcement of the gambling laws of the state.5

    BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:6

    Section 1. The following amendment to the7

    Constitution of Alabama is hereby proposed and shall become8

    valid as a part of said Constitution when approved in9

    accordance with such provisions of Sections 284, 285, and 28710

    of said Constitution and Amendment No. 555 thereto as shall be11

    applicable:12

    PROPOSED AMENDMENT13

    (a) Amendment 386 of the Constitution of Alabama of14

    1901, is repealed.15

    (b) Amendment 440 of the Constitution of Alabama of16

    1901, is repealed.17

    (c) Amendment 506 of the Constitution of Alabama of18

    1901, is repealed.19

    (d) Amendment 508 of the Constitution of Alabama of20

    1901, is repealed.21

    (e) Amendment 549 of the Constitution of Alabama of22

    1901, is repealed.23

    (f) Amendment 550 of the Constitution of Alabama of24

    1901, is repealed.25

    (g) Amendment 569 of the Constitution of Alabama of26

    1901, is repealed.27

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    (h) Amendment 600 of the Constitution of Alabama of1

    1901, is repealed.2

    (i) Amendment 674 of the Constitution of Alabama of3

    1901, is repealed.4

    (j) Amendment 743 of the Constitution of Alabama of5

    1901, is repealed.6

    (k) Amendment 744 of the Constitution of Alabama of7

    1901, is repealed.8

    (l) Amendment 732 of the Constitution of Alabama of9

    1901 is superceded by this amendment.10

    "Section 2. Declarations. Because Alabama has11

    experienced a proliferation of bingo gaming throughout the12

    state, it is of paramount importance for such bingo13

    enterprises to be limited, regulated, and taxed. This14

    amendment authorizes bingo to be conducted at points of15

    destination in Calhoun, Etowah, Greene, Houston, the City of16

    Birmingham, Macon, Mobile, and Walker Counties, and the City17

    of White Hall in Lowndes County, and through taxation of18

    bingo, enhances the economic viability of such areas and19

    raises additional revenue for the state General Fund to20

    benefit the State Medicaid program and the Education Trust21

    Fund for the benefit of the public schools. This amendment22

    also authorizes a compact between the state and Indian bingo23

    operators to seek funds in lieu of taxes for the Education24

    Trust Fund for public schools and the state General Fund for25

    the benefit of the state Medicaid program. To prohibit the26

    proliferation of illegal and unregulated gaming in the state,27

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    this amendment further creates a state gaming commission for1

    the regulation of bingo and for the enforcement of gambling2

    laws of this state and prescribes certain conditions and3

    prohibitions governing gaming activities. This amendment4

    further prescribes minimum investment requirements in5

    non-gaming amenities at points of destination to assure that6

    bingo revenues serve as a catalyst to create jobs and develop7

    an entertainment and tourism industry in the state.8

    "Section 3. Definitions. As used in this amendment,9

    the following words and phrases shall have the following10

    respective meanings:11

    "BINGO" means a game of chance incorporating the12

    following elements: (i) the game must be played on a grid of13

    five horizontal rows intersected by five vertical rows, with14

    each row divided into five contiguous squares contained within15

    the grid; (ii) the game must be played by multiple players16

    with each player being assigned one or more grids; (iii) each17

    square of each of the grids used in playing the game must be18

    identified by a number or symbol, and all the numbers or19

    symbols so used to identify the squares of the grids available20

    for play must be included in an aggregation of such numbers or21

    symbols from which selection can be made for each round of22

    play; (iv) for each round of play numbers or symbols are23

    selected by a procedure or mechanism entirely or predominantly24

    governed by chance and, as such numbers or symbols are25

    selected in a particular game, the same numbers or symbols, if26

    they are present on one or more of the squares on any grid in27

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    play, are covered or otherwise marked on such grid; (v) the1

    winner or winners of a particular game are the players of2

    those grids for which a previously designated pattern or3

    arrangement is first covered or marked; (vi) the game cannot4

    be played by a solitary player, and one or more players must5

    compete against one or another for prizes within an6

    establishment; (vii) every game must have one or more winners;7

    (viii) monetary wagers may be collected from the players of8

    bingo for the opportunity to participate in the game, and such9

    wagers may vary in amount to reflect the value of the prize10

    for winning a particular game, whether the wager is for11

    participation in the whole game or a particular phase thereof,12

    as well as other factors depending upon the interplay of the13

    amount wagered, the size of the prize and the probability of14

    winning; and (ix) the prizes for winning the game can be money15

    or anything else of value without limit as to amount. Subject16

    to the restrictions contained in this amendment, bingo can be17

    played with different kinds of equipment varying from the use18

    of tokens to cover the designated squares on traditional cards19

    to the use of bingo equipment to operate the game and interact20

    with human players by means of video consoles. Consolation or21

    interim prizes for particular games may be given to players.22

    "BINGO GROSS REVENUE", when used with reference to23

    any facility conducting bingo means the total amount of money24

    or value in any form received by the operator of a bingo25

    establishment derived directly from the playing of bingo using26

    bingo equipment, less the total amount of money or value in27

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    any form paid as winnings to the players of bingo, but before1

    deduction of any expenses incurred in operating the bingo2

    establishment, including, without limitation thereto,3

    depreciation or leasing costs of physical facilities and4

    equipment, wages and other employment costs, utilities,5

    interest and taxes; provided that bingo gross revenue shall6

    not include all or any part of the amounts wagered in7

    pari-mutuel pools on racing and, further, shall not be8

    construed as constituting any amount wagered in such9

    pari-mutuel pools for the purpose of determining any tax10

    levied on pari-mutuel wagering or for any other purpose.11

    "COMMISSION" means the State Gaming Commission12

    created by this amendment.13

    "COMPACT" means the agreement between the state and14

    the Poarch Band of Creek Indians for their Indian gaming15

    facilities as described and governed by the Indian Gaming16

    Regulatory Act of 1988.17

    "TRADITIONAL BINGO EQUIPMENT" means traditional18

    paraphernalia used in playing bingo and electronic or19

    mechanical equipment used to facilitate the playing of paper20

    or card bingo, including, without limitation thereto,21

    mechanical or electronic systems for selecting by chance the22

    numbers or symbols that are covered or otherwise marked on the23

    grids used in bingo games, electronic or computer terminals24

    that enable an individual player to play multiple cards or25

    grids in a single game, electronic or video display equipment26

    that shows the progress, results and payoffs of bingo games,27

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    and electronic networks that connect player terminals for1

    automatic marking of selected numbers or symbols and automatic2

    recognition of the winner or winners of bingo games; provided,3

    however, that no paraphernalia or equipment used in playing4

    bingo pursuant to a local bingo amendment shall be deemed to5

    constitute traditional bingo equipment unless the use thereof6

    shall be lawfully authorized by the independent construction7

    of such local bingo amendment without taking into account any8

    provision of this amendment; provided further that bingo shall9

    not be conducted at any location pursuant to a local bingo10

    amendment, whether or not using traditional bingo equipment,11

    under conditions where more than one bingo game per minute is12

    played at such location. No equipment or device of any kind13

    shall qualify as traditional bingo equipment if it is used to14

    play, or facilitate the playing of, more than one bingo game15

    per minute in any single building, hall or other location used16

    for playing bingo.17

    INDIAN GAMING FACILITY" means the Indian gaming18

    establishments existing in Escambia, Elmore, and Montgomery19

    Counties at the time of the adoption of this amendment.20

    "LOCAL BINGO AMENDMENT" means any amendment to the21

    Constitution of Alabama other than this amendment which22

    authorizes bingo to be played in a particular county or23

    municipality and which was adopted prior to the effective date24

    of this amendment by the affirmative vote of the entire25

    electorate of the state pursuant to Section 284 of the26

    Constitution or, alternatively, was adopted at any time,27

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    whether before or after the effective date of this amendment,1

    by the affirmative vote of the electorate of a single county2

    pursuant to Amendment No. 425 or Amendment No. 555 to the3

    Constitution.4

    "OPERATOR" means any person, corporation or other5

    legal entity now or hereafter licensed to conduct bingo.6

    "POINT OF DESTINATION" means a licensed bingo7

    location designated in Section 9 of this amendment whereby a8

    parcel of land containing a physical plant owned by a9

    racetrack or other business, governmental entity, or10

    charitable organization houses at least one thousand (1,000)11

    bingo machines using bingo equipment and which the cost of the12

    bingo playing area of the physical plant of the bingo13

    operation, including all non-bingo equipment and fixtures14

    functioning as a part of the bingo operation but excluding15

    bingo equipment, is half or less of the total cost of the16

    entire physical plant, land, outbuildings, parking areas,17

    infrastructure, fixtures, and equipment located on the same18

    parcel of land owned by such racetrack or other business,19

    governmental entity, or charitable organization housing such20

    bingo operation and whereby the entire cost of such location21

    exceeds fifty million dollars ($50 million), provided,22

    however, the two existing licensed bingo locations using bingo23

    equipment in the City of Whitehall in Lowndes County shall not24

    require any minimum investment, the entire cost of each point25

    of destination in Greene County shall exceed twenty-five26

    million dollars ($25 million), and the entire cost of each27

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    point of destination using bingo equipment in the City of1

    Birmingham and Mobile County shall exceed one hundred million2

    dollars ($100 million). A bingo licensee at a point of3

    destination shall have three years following the effective4

    date of this amendment to comply with these minimum investment5

    requirements to be a point of destination, unless the state6

    gaming commission for good cause shown allows an extension of7

    time for such bingo licensee to comply with the minimum8

    investment requirements for a period not to exceed five years9

    from the effective date of this amendment.10

    "RACETRACK" or "RACING FACILITY", when used with11

    respect to any facility located in the state, means a single12

    facility at which pari-mutuel wagering on live or telecast13

    racing events is authorized by law when this amendment shall14

    become effective, together with any observation facilities,15

    authorized equipment, restaurants, and other physical16

    facilities and improvements that together constitute such17

    racing facility, including facilities necessary or desirable18

    for conducting bingo. There are four racetracks located in the19

    state, one in Mobile County, one in Macon County, one in the20

    City of Birmingham in Jefferson County, and one in Greene21

    County.22

    "BINGO EQUIPMENT" means any electronic or electrical23

    equipment or device, computer or related equipment,24

    telecommunication or data transmission, storage or receiving25

    equipment, or system or network of any thereof, including all26

    software and electronic programming instructions that are27

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    necessary or useful in the operation thereof, (i) which is1

    installed, or is to be installed, at a licensed bingo facility2

    and (ii) which is used, or can be used, to conduct bingo as3

    defined in this amendment. Bingo equipment includes equipment4

    of any kind that facilitates the playing of bingo games only5

    on site, increases the number of players on site participating6

    in common games, or allows players of bingo to compete against7

    other players at points of destination. Examples of bingo8

    equipment located on site include, but are not limited to,9

    electronic play stations, terminals and consoles, including10

    those capable of video displays of game activities and11

    results, specialized or general computers of every kind,12

    digital servers, routers, switches, modems and circuits at13

    every level of an interconnected network, data processing14

    equipment facilitating the operation of networks of bingo15

    equipment, telecommunication and data transmission and16

    receiving equipment, and other related equipment of every17

    kind. The prizes or payoffs, or evidences thereof, for winning18

    bingo games may be disbursed, at the time each game is won, by19

    the play stations, terminals and consoles constituting bingo20

    equipment and used in playing such games, or such prizes or21

    payoffs may be paid through different arrangements that22

    reflect a record of wins and losses involving multiple games.23

    With respect to installations of bingo equipment at a point of24

    destination, an unlimited number of separate games of bingo25

    may be played on a single play station, terminal or console,26

    or on a network of multiple play stations, terminals and27

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    consoles, within any interval of time, whether minute, hour,1

    day or year. If the games played with bingo equipment are not2

    inconsistent with the conditions and requirements of the3

    definition of "bingo" contained in this amendment, then the4

    presence or absence of any particular feature of traditional5

    bingo, as defined in or contemplated by a local bingo6

    amendment, with respect to the operation of such bingo7

    equipment shall not be considered in determining whether such8

    games constitute bingo authorized by this amendment to be9

    played on bingo equipment, including, without limitation10

    thereto, (i) the use of computer algorithms to select by11

    chance the numbers or symbols that are covered or otherwise12

    marked on the grids used in bingo games, (ii) the automatic13

    covering or marking of the selected numbers or symbols on a14

    bingo grid without recognition or intervention by the human15

    player, and (iii) the automatic declaration of the winner or16

    winners of bingo games without prior recognition or action by17

    the human player. The entertainment capabilities of bingo18

    equipment may be enhanced by spinning wheels and other video19

    or mechanical displays, but such displays and the apparatuses20

    used to produce them may not affect the nature or outcome of21

    the game of bingo played with such equipment. If the game of22

    bingo is played with bingo equipment, the individual play23

    stations shall be electronically linked to ensure that24

    multiple players are competing against each other. The25

    definition of bingo equipment shall not be limited by any26

    condition applicable to traditional bingo equipment and shall27

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    be liberally construed to facilitate the conduct of bingo as1

    applicable under the provisions of this amendment.2

    "GROSS RECEIPTS TAX" means the gross receipts tax3

    levied by the state pursuant to Section 8 hereof, on all bingo4

    or illegal gambling in the state.5

    "REVENUE SHARING PLAN" means the amount of6

    contribution required under this amendment as a condition for7

    a state compact with the Poarch Band of Creek Indians to take8

    effect that is at least equal to the gross receipts tax rate9

    and gross receipts tax base.10

    "Section 4. Scope of Amendment11

    (a) After the date of ratification of this12

    amendment, any county may authorize bingo through ratification13

    of a local constitutional amendment which complies with the14

    provisions set forth in this amendment including regulation by15

    the state gaming commission, remittance of fees and tax, and16

    fulfilling point of destination requirements. Only one point17

    of destination may be authorized by the local governing body18

    of any jurisdiction authorizing bingo after the ratification19

    of this amendment and ratification of a subsequent local20

    constitutional amendment.21

    (b) For local jurisdictions authorizing bingo under22

    a local constitutional amendment as of the date of23

    ratification of this amendment, if bingo is conducted using24

    bingo equipment at any location other than points of25

    destination, any local governing body licensing shall be in26

    effect for one hundred twenty (120) days following the27

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    effective date of this amendment. After the one hundred twenty1

    (120) day period following the effective date of this2

    amendment, only bingo licensees at points of destination3

    enumerated in Section 9 of this amendment shall be permitted4

    to conduct bingo using bingo equipment and all other licenses5

    anywhere in the state to conduct bingo using bingo equipment6

    shall automatically be revoked except as stated in subsection7

    (a) herein.8

    (c) If bingo in any form, whether played with9

    traditional cards, paper or otherwise, or bingo equipment, is10

    conducted under the claimed authorization of a local bingo11

    amendment then the succeeding provisions of this subsection12

    (c) shall also apply, both retroactively and prospectively, to13

    bingo conducted by licensees at points of destination pursuant14

    to such local bingo amendment. The conduct of bingo at any15

    licensed point of destination with bingo equipment shall not16

    be prohibited, limited or impaired by (i) any provision or17

    interpretation of Section 65 of the Constitution of Alabama,18

    (ii) any provision or interpretation of any local bingo19

    amendment, including the particular local bingo amendment20

    pursuant to which the licensee at the point of destination has21

    heretofore and now conducts bingo in any form or on behalf of22

    any charitable organization, (iii) any otherwise applicable23

    provisions of Code of Alabama 1975, Title 13A, Chapter 12,24

    Article 2, or Code of Alabama 1975, Title 8, Chapter 1,25

    Article 8, (iv) any other statute whenever enacted that is26

    inconsistent with any provision of this amendment, and (v) any27

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    judicial judgment, decision or opinion that would otherwise1

    have the effect of prohibiting, limiting or impairing the2

    conduct of bingo or bingo equipment in connection therewith.3

    (d) Bingo equipment, whether considered separately4

    or as a system consisting of multiple components, shall not5

    for any purpose be deemed to be a "gambling device" or "slot6

    machine" within the meaning of Code of Alabama 1975, 7

    13A-12-20(5) and (10).8

    (e) In no event shall this amendment preclude any9

    nonprofit organization or governmental entity from conducting10

    bingo in this state using traditional bingo equipment in11

    accordance with a local bingo amendment or in any county where12

    bingo is authorized by this amendment and in no event shall13

    this amendment preclude any licensed third-party entity14

    domiciled in the state from operating a point of destination15

    for one or more nonprofit organizations or governmental16

    entities.17

    "Section 5. Exemptions from Conflicting Laws;18

    Compliance with Federal Law.19

    (a) The conduct of bingo using bingo equipment at20

    points of destination, and any manufacture, sale,21

    transportation, installation, possession, ownership, leasing22

    or use of authorized equipment or other materials, supplies or23

    paraphernalia used in conducting bingo that are authorized24

    under and done in accordance with this amendment, shall be25

    exempt from laws that prohibit or limit activities of the kind26

    authorized by this amendment, including the provisions of Code27

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    of Alabama 1975, Title 13A, Chapter 12, Article 2 and the1

    provisions of Code of Alabama 1975, Title 8, Chapter 1,2

    Article 8.3

    (b) The State of Alabama, acting by and through the4

    adoption of this amendment, and in accordance with the5

    provisions of 15 U.S.C. 1172, does hereby declare that any6

    and all bingo equipment, materials, paraphernalia and supplies7

    may be transported in interstate commerce into or out of the8

    state without violating said 1172, or any other applicable9

    federal law, if such bingo equipment, materials,10

    paraphernalia, materials and supplies are used, or are to be11

    used, or have been used, in the conduct of bingo at licensed12

    points of destination.13

    "Section 6. Licensees at Points of Destination14

    Authorized to Conduct Bingo Using Bingo Equipment and15

    Traditional Bingo Equipment.16

    (a) The Houston County bingo licensee, the two City17

    of White Hall bingo licensees, and each racetrack are hereby18

    authorized to conduct bingo using bingo equipment, as well as19

    traditional bingo equipment, at the respective point of20

    destination designated in Section 9 of this amendment without21

    there being required any enabling statutes of the Legislature22

    or any additional actions of the applicable racing commission23

    or local governing body, with the State Gaming Commission to24

    issue a state bingo license without application by such bingo25

    licensee. Within ninety days following the effective date of26

    this amendment, the local governing body or official(s)27

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    designated by local bingo amendment prior to repeal by this1

    amendment of each of Calhoun County, Etowah County, Greene2

    County, City of Birmingham, Mobile County and Walker County3

    shall select operators to conduct bingo using bingo equipment,4

    as well as traditional bingo equipment, at the point(s) of5

    destination in such county or city other than a point of6

    destination comprising a racetrack. The state gaming7

    commission shall issue the state bingo license to the operator8

    selected by each local governing body or official(s)9

    designated by local bingo amendment so long as each operator10

    is in compliance with the qualifications of a bingo licensee11

    as provided in this amendment.12

    (b) Any general or local law, ordinance or13

    regulation affecting dog or horse racing and pari-mutuel14

    wagering thereon now in effect or hereafter enacted to the15

    contrary notwithstanding, the operator of each racetrack shall16

    be entitled to conduct business, including both pari-mutuel17

    wagering and bingo, with the full participation of betting18

    patrons physically on the premises of such racetrack and on19

    such days and during such times as such operator determines to20

    be necessary or beneficial for the profitability of such21

    racetrack; provided, however, that each racetrack must comply22

    with all generally applicable laws, local acts, and county and23

    municipal ordinances governing the times during which24

    businesses serving the general public may sell alcoholic25

    beverages.26

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    (c) In order to discourage predatory competition1

    among the points of destination that may legally conduct bingo2

    pursuant to this amendment (including those points of3

    destination that may conduct bingo pursuant to local4

    amendments as modified by this amendment), the operator of any5

    point of destination is authorized to enter into an agreement6

    with the operator of another point of destination to share7

    profits from the conduct of bingo in such proportions and to8

    cooperate in such manner with respect to conducting bingo as9

    such operators may deem to be mutually beneficial. The10

    provisions of this section (c) shall be retroactive, and any11

    such profit sharing or cooperative agreement entered into by12

    operators prior to the effective date of this amendment shall13

    be given full force and effect and shall be deemed ratified14

    and confirmed by this amendment. For purposes of this15

    subsection (c), an operator of a point of destination shall be16

    deemed to include any corporation, limited liability company,17

    partnership or other legal entity qualified to do business in18

    Alabama exercising control of, being controlled by, or being19

    under common control with, any such operator.20

    (d) No licensed bingo operator conducting bingo21

    using bingo equipment at a given point of destination shall22

    operate without remitting to the state the applicable gross23

    receipts tax on all bingo gross revenue.24

    (e) No person under the age of nineteen (19) years25

    shall be permitted to play any game of bingo using bingo26

    equipment, nor shall any person under the age of nineteen27

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    years be employed to operate bingo equipment, or to facilitate1

    the playing of bingo using bingo equipment, or to serve any2

    persons playing bingo using bingo equipment. This subsection3

    (d) shall not be construed to prohibit persons under the age4

    of nineteen (19) years from being allowed on the premises of a5

    facility where bingo is played or being served in food and6

    beverage service operations located in such facility.7

    (f) The racing commissions respectively having8

    jurisdiction of the racetracks, in addition to the powers that9

    each thereof has under existing law, shall have the same10

    powers to regulate and supervise the conduct of bingo as each11

    has to regulate and supervise racing activities and12

    pari-mutuel wagering thereon, with such modification of such13

    powers, not inconsistent with the provisions of this14

    amendment, as is necessary or appropriate to adapt them to the15

    purposes of regulating and supervising bingo; provided,16

    however, the regulatory and supervisory power of each local17

    racing commission over bingo shall be subordinate to the18

    regulatory and supervisory power of the state gaming19

    commission over the conduct of bingo at the racetrack with any20

    enforcement action of the state gaming commission to control21

    and prevail.22

    (g) All monetary obligations in contracts between a23

    bingo operator and nonprofit organizations or in contracts24

    between a bingo operator and a local governing body entered25

    into prior to the effective date of this amendment shall26

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    remain in full force and effect and shall not be terminated as1

    a result of this amendment.2

    "Section 7. Indian gaming facilities, state compact3

    authorized.4

    (a) On or before January 1, 2014, the Governor is5

    hereby authorized and directed to enter into, and execute, in6

    good faith, a compact with Indian gaming facilities located on7

    tribal lands which have been owned by the Poarch Band of Creek8

    Indians since on or before October 17, 1988.9

    (b) The Governor shall not execute such compact10

    without a Revenue Sharing Plan included in such compact.11

    (c) Further, the Governor shall not execute such12

    compact with any authorization for casino-style table games13

    that include participation of a human dealer, such as craps,14

    black jack, roulette, or keno.15

    (d) Such compact will provide the state with revenue16

    from otherwise untaxed Indian gaming and limit the type of17

    Indian gaming in the state without expansion of Indian gaming18

    at the Indian gaming facilities by the United States19

    Department of Interior.20

    "Section 8. State Gross Receipts Tax and Use of the21

    Proceeds Thereof.22

    (a) A state gross receipts tax on bingo games using23

    bingo equipment at each point of destination is hereby levied24

    in an amount equal to twenty percent (20%) of the bingo gross25

    revenue derived by the operator therefrom. However, due to the26

    significant investment commitments already made by certain27

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    bingo licensees prior to this amendment, the state gross1

    receipts tax rate on bingo gross revenue at the points of2

    destination located in the City of Whitehall in Lowndes3

    County, and the points of destination located in Houston4

    County, Greene County and Macon County shall be ten percent5

    (10%) for the first five years following the effective date of6

    this amendment and twenty percent (20%) thereafter. There7

    shall also be a state gross receipts tax on bingo games using8

    bingo equipment at all other bingo establishments licensed by9

    a local governing body located in counties and municipalities10

    authorized to have bingo facilities under the provisions set11

    forth in this amendment for one hundred twenty (120) days12

    following the effective date of this amendment in an amount13

    equal to twenty percent (20%) of the bingo gross revenue14

    derived therefrom. The state gross receipts tax for each15

    calendar month shall be paid to the Alabama Department of16

    Revenue by the operator of each such licensed or any17

    unauthorized gaming establishment on or before the twentieth18

    day of the next succeeding calendar month. A state gross19

    receipts tax of fifty percent (50%) on all gross revenue on20

    all unauthorized gaming establishments is also hereby levied21

    in addition to any other civil or criminal liabilities. For22

    purposes of the preceding sentence, gross revenue shall23

    include the gross revenue of such unauthorized gaming24

    establishment before deduction of any disbursement of winnings25

    to patrons of such unauthorized gaming establishment.26

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    (b) The Alabama Department of Revenue shall have the1

    same power to make regulations respecting the reporting,2

    collection and enforcement of the state gross receipts tax as3

    it has with respect to the pari-mutuel pool tax levied by Code4

    of Alabama 1975, Title 40, Chapter 26A, with necessary and5

    appropriate changes to reflect the different nature of the6

    state gross receipts tax on bingo. The levy, collection and7

    enforcement of the state gross receipts tax shall be8

    administered by the Alabama Department of Revenue in9

    accordance with the Taxpayers Bill of Rights and Uniform10

    Revenue Procedures Act, as codified in Chapter 2A of Title 4011

    of the Code of Alabama 1975, or amendatory or successor law.12

    (c) For administrative purposes, the Alabama13

    Department of Revenue shall establish separate accounts in the14

    State Treasury for the bingo licensee for each point of15

    destination, and the total amount of state gross receipts tax16

    collected from each such point of destination licensee shall17

    be credited as received to the related account. For the fiscal18

    year of the state in which this amendment shall become19

    effective, and for each fiscal year thereafter while the levy20

    and collection of the state gross receipts tax shall remain in21

    effect, there shall be appropriated by the Legislature, as a22

    first charge against the state gross receipts tax, such amount23

    of the actual expenses of the Alabama Department of Revenue as24

    shall be necessary to administer the levy, collection and25

    enforcement of the state gross receipts tax. Amounts equal in26

    aggregate to the annual appropriation for the administration27

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    of the state gross receipts tax shall be charged to and1

    withdrawn from the separate accounts in proportion to the2

    gross collections of state gross receipts tax respectively3

    credited each account; however, no such collection amount4

    shall exceed one percent (1%) of all gross receipts tax5

    proceeds.6

    (d) All proceeds of the state gross receipts tax not7

    required to satisfy the prior appropriation pursuant to8

    subsection (c) of this Section 6 are hereby dedicated and9

    appropriated to the Education Trust Fund for the benefit of10

    public schools in the state and to the state General Fund for11

    the benefit of the state Medicaid program. The Education Trust12

    Fund shall receive seventy percent (70%) of gross receipts tax13

    proceeds and the General Fund shall receive thirty percent14

    (30%) of gross receipts tax proceeds for the benefit of the15

    state Medicaid program.16

    "Section 9. Limit in the number of bingo points of17

    destination.18

    The following counties shall be allowed the19

    following points of destination:20

    (a) Calhoun County, two points of destination;21

    (b) Etowah County, one point of destination;22

    (c) Greene County, two points of destination, both23

    of which shall be owned by the racetrack in Greene County;24

    (d) Houston County, one point of destination;25

    (e) Jefferson County, two points of destination, one26

    of which shall be the racetrack in the City of Birmingham in27

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    Jefferson County and one of which shall be another location in1

    the City of Birmingham;2

    (f) Lowndes County, two points of destination in the3

    City of White Hall;4

    (g) Walker County, two points of destination;5

    (h) Mobile County, one point of destination which6

    shall be the racetrack in Mobile County; and7

    (i) Macon County, one point of destination, which8

    shall be the racetrack in Macon County.9

    "Section 10. State Gaming Commission, creation,10

    powers.11

    (a) There is hereby created a State Gaming12

    Commission (the "commission") which shall oversee, regulate,13

    provide for consumer protection and safety of gaming patrons,14

    enforce gaming laws of the state, and provide for licensing of15

    all gaming operations in the state.16

    (b) The commission shall consist of seven (7)17

    members of which one member shall be appointed by the Governor18

    with the advice and consent of the Senate, one member shall be19

    appointed by the Attorney General with the advice and consent20

    of the Senate, one member shall be appointed by the Lieutenant21

    Governor with the advice and consent of the Senate, one member22

    shall be appointed by the President Pro-Tempore of the Senate23

    with the advice and consent of the Senate, one member shall be24

    appointed by the Speaker of the House of Representatives with25

    the advice and consent of the Senate, one member shall be26

    appointed by the Speaker Pro-Tempore of the House of27

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    Representatives with the advice and consent of the Senate, and1

    one member shall be appointed by the Chief Justice of the2

    state Supreme Court with the advice and consent of the Senate.3

    These members, where possible, shall represent the gender and4

    racial diversity of the State. Members appointed when the5

    Legislature is not in regular session may serve until or6

    unless the Senate rejects the appointment at the next regular7

    or special session of the Legislature.8

    (1) Members of the commission shall be residents of9

    the State of Alabama, shall be prominent persons in their10

    businesses or professions, and shall not have been convicted11

    of a felony. A member of the commission shall not have been12

    employed by the gaming industry for a period of five years13

    prior to his or her appointment or following his or her14

    service. No person actively engaged or having a direct15

    pecuniary interest in gaming activities shall be a member of16

    the commission.17

    (2) Except for the initial term of office, members18

    shall serve for terms of five years. Any vacancy occurring on19

    the commission shall be filled for the unexpired term by the20

    appointing authority as described in this section. The initial21

    term of office upon ratification of this amendment shall be22

    one year for two members, two years for two members, three23

    years for two members, and four years for one member. The24

    initial term of a member shall be determined by lot. The25

    respective appointing authorities shall meet at the call of26

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    the Governor at a meeting to be held within 30 days of1

    ratification of this amendment to draw lots.2

    (3) Members of the commission and its employees3

    shall be subject to the Ethics Law, Section 36-25-1, et seq.,4

    Code of Alabama 1975, and the commission shall be subject to5

    the Administrative Procedures Act.6

    (4) Each member of the commission shall serve for7

    the duration of his or her term and until his or her successor8

    shall be duly appointed and qualified; provided, however, that9

    in the event that a successor is not duly appointed and10

    qualified within one hundred twenty (120) days after the11

    expiration of the member's term, a vacancy shall be deemed to12

    exist.13

    (5) A commission member may be removed from office14

    for misconduct in office, willful neglect of duty, or other15

    conduct evidencing unfitness for his or her office, or for16

    incompetence. A proceeding for removal may be instituted by17

    the Attorney General in the Circuit Court of Montgomery18

    County, Alabama. Notwithstanding any provision of this or any19

    other act, any commissioner or employee of the commission20

    shall automatically forfeit his or her office or position upon21

    conviction of a felony.22

    (6) Each member of the commission staff may be paid23

    an annual salary that shall not exceed that established by the24

    State Personnel Board.25

    (b) The officers of the commission shall include a26

    Chair and a Vice-Chair who shall be members of the commission,27

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    and an Executive Director who shall not be a member of the1

    commission.2

    (1) The Chair shall be elected annually at the3

    organizational meeting of the commission by a majority of the4

    full commission. The Chair, as chief executive officer of the5

    commission, shall schedule and preside at all meetings of the6

    commission; shall appoint the members of the commission to7

    such committees as the commission may, from time to time,8

    establish; shall have the authority to accept for filing all9

    applications; shall have the authority to incur on behalf of10

    the commission such expenses as the commission shall have11

    approved in its operating budget; shall have general12

    supervision, direction and control of the affairs of the13

    commission; and shall perform such other duties as are14

    incidental to the office and as may be assigned, from time to15

    time, by the commission.16

    (2) The Vice-chair shall be elected annually at the17

    organizational meeting of the commission by a majority of the18

    full commission. The Vice-chair shall be a member of the19

    commission other than the Chair. He or she shall possess such20

    powers and shall perform such duties as may be assigned, from21

    time to time, by the commission. In the absence or inability22

    of the Chair to serve or in the event of a vacancy in the23

    office of Chair, the Vice-chair shall be empowered to carry24

    out all of the responsibilities of the Chair.25

    (3) The Executive Director shall be appointed by the26

    commission and shall serve at the pleasure of the commission.27

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    The Executive Director is entitled to an annual salary in the1

    amount specified by the commission, subject to the approval of2

    the State Personnel Board, within the limits of legislative3

    appropriations or authorizations. The Executive Director shall4

    have significant prior experience in the field of gaming, and5

    shall be a prominent and respected person in their profession.6

    The Executive Director shall not have been convicted of a7

    felony. The Executive Director may, in his or her discretion,8

    also appoint a General Counsel and such other qualified staff9

    to serve the Executive Director. The Executive Director may10

    employ the services of such persons as he or she considers11

    necessary for the purposes of consultation or investigation12

    and fix the salaries of or contract for the services of such13

    legal, professional, technical and operational personnel and14

    consultants, subject to applicable provisions of the State15

    Personnel Board. For the purpose of implementing the16

    provisions of this chapter, additional legal assistance may be17

    retained only with the approval of the Attorney General. Under18

    the supervision of the Chair, the Executive Director shall be19

    responsible for the conduct of the administrative affairs of20

    the commission and shall have custody of the commission's seal21

    and its official records. The Executive Director shall keep a22

    record of the proceedings at all meetings of the commission in23

    a minute book and a resolution book or both, to be kept for24

    the purpose, which shall be open at all reasonable times to25

    inspection by any member of the commission. He or she shall26

    cause a verbatim transcript to be made of the public meetings27

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    of the commission, according to law. He or she shall affix the1

    seal of the commission to all papers authorized to be executed2

    by the commission requiring such seal to be affixed. He or she3

    shall cause copies to be made of the verbatim transcript of4

    the public meetings, and of all minutes, resolutions and other5

    records and shall cause such copies to be filed with the6

    appropriate authorities according to law. He or she shall give7

    certificates under the seal of the commission to the effect8

    that such copies are true copies and all persons dealing with9

    the commission may rely on such certificates. He or she shall10

    perform such other duties as are incident to his or her office11

    or as may be assigned, from time to time, by the commission or12

    by the Chair.13

    (c) Regular and special meetings of the commission14

    may be held, at the discretion of the commission, at such15

    times and places as it may deem convenient, but at least one16

    (1) regular meeting shall be held each month on or after the17

    fifteenth day of the month. All meetings shall be subject to18

    the provisions of the Open Meetings Law.19

    (d) A majority of the members constitutes a quorum20

    of the commission.21

    Section 11. Administration of provision for22

    protection of the public; Commission and executive director23

    duties.24

    (a) The provisions of this chapter with respect to25

    state gaming licenses shall be administered by the Executive26

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    Director for the protection of the public and in the public1

    interest in accordance with the policy of this state.2

    (b) The Executive Director and his or her employees3

    may:4

    (1) Inspect and examine all premises wherein gaming5

    is conducted or gaming devices or equipment are manufactured,6

    sold or distributed;7

    (2) Inspect all equipment and supplies in, upon or8

    about such premises, and require security and safety measures9

    to be taken at an operator's expense at any facility for the10

    health and well-being of patrons and employees;11

    (3) Summarily seize and remove from such premises12

    and impound any equipment or supplies for the purpose of13

    examination and inspection following a due process hearing;14

    (4) Demand access to and inspect, examine, photocopy15

    and audit all papers, books and records of applicants and16

    licensees, on their premises or elsewhere as practicable, in17

    the presence of the licensee or his agent, respecting the18

    gross receipts produced by any gaming business (and may19

    require verification of receipts) and respecting all other20

    matters affecting the enforcement of the policy or any of the21

    provisions of this chapter.22

    (c) For the purpose of conducting audits after the23

    cessation of gaming by a licensee, the former licensee shall24

    furnish, upon demand of the Executive Director or his25

    employee, books, papers and records as necessary to conduct26

    the audits. The former licensee shall maintain all books,27

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    papers and records necessary for audits for a period of three1

    (3) years after the date of the surrender or revocation of his2

    bingo license. If the former licensee seeks judicial review of3

    a deficiency determination or files a petition for a4

    redetermination, he must maintain all books, papers and5

    records until a final order is entered on the determination.6

    (d) The Executive Director and enforcement employees7

    may investigate, for the purpose of prosecution, any suspected8

    criminal violation of the provisions of this chapter. For the9

    purpose of the administration and enforcement of this chapter,10

    the Executive Director and enforcement employees have the11

    powers of a peace officer of this state.12

    (e) The commission or Executive Director has full13

    power and authority to issue subpoenas and compel the14

    attendance of witnesses at any place within this state, to15

    administer oaths, and to require testimony under oath. Any16

    process or notice may be served in the manner provided for17

    service of process and notices in civil actions. The18

    commission or the Executive Director may pay such19

    transportation and other expenses of witnesses as they deem20

    reasonable and proper. Any person making false oath in any21

    matter before the commission is guilty of perjury. The22

    commission may appoint hearing examiners who may administer23

    oaths and receive evidence and testimony under oath.24

    (f) Investigations by Executive Director. The25

    Executive Director and his employees shall investigate the26

    qualifications of each applicant under this chapter before any27

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    license is issued or before any registration, finding of1

    suitability or approval of acts or transactions for which2

    commission approval is required is granted, and the Executive3

    Director shall continue to observe the conduct of all4

    licensees and other persons having a material involvement5

    directly or indirectly with a licensed bingo operation or6

    registered holding company to ensure that licenses are not7

    issued or held by, nor is there any material involvement8

    directly or indirectly with a licensed bingo operation or9

    registered holding company by, unqualified, disqualified or10

    unsuitable persons or persons whose operations are conducted11

    in an unsuitable manner or in unsuitable or prohibited places12

    or locations.13

    (g) The Executive Director has the authority to14

    recommend to the commission the denial of any application, the15

    limitation, conditioning or restriction of any license,16

    registration, finding of suitability or approval or the17

    imposition of a fine upon any person licensed, registered or18

    found suitable or approved for any cause deemed reasonable by19

    the Executive Director.20

    (h) Subject to the due process provisions as21

    hereinafter provided, the commission shall have authority for22

    any violation of this amendment, or any local amendment, or23

    any other laws of the state to deny any application or limit,24

    condition, restrict, revoke or suspend any license,25

    registration, finding of suitability or approval, or fine any26

    person licensed, registered, found suitable or approved, for27

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    any cause deemed reasonable by the commission, provided,1

    however, the commission shall have no authority to set the2

    business hours of operation of a licensed operator or limit3

    the number or type of bingo equipment used by the operator so4

    long as such bingo equipment complies with this amendment.5

    (i) Any license issued or other commission approval6

    granted pursuant to the provisions of this chapter is a7

    revocable privilege, and no holder acquires any vested right8

    therein or thereunder. Subject to the provisions of9

    subparagraph (h) above, the initial decision of the commission10

    to deny, limit, condition or restrict a license shall be final11

    unless appealed in accordance with the provisions of this12

    amendment.13

    (j) The commission shall serve as a hearing panel14

    and settle disputes between operators or between operators and15

    patrons.16

    (k) Any person or licensee aggrieved by the refusal17

    of the commission to issue any license, or the suspension or18

    revocation of a license, the imposition of a fine or penalty,19

    the disapproval of a contract, or any other action or failure20

    of action by the commission, may, within 60 days of such21

    action or failure of action, appeal to the circuit court of22

    the county where the bingo facility is located. If such court23

    finds that the action of such commission, or its failure to24

    take action, was arbitrary, unreasonable or contrary to the25

    provisions of this amendment, the court shall order the26

    issuance or reinstatement of such license, the abatement of27

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    such fine or penalty, the approval of such contract, or such1

    other remedial action as the court deems appropriate in the2

    circumstances. The decision of such court shall be subject to3

    appeal as in other cases at law.4

    Section 12. Persons excluded from bingo facilities.5

    (a) The exclusion or ejection of certain persons6

    from licensed bingo establishments is necessary to effectuate7

    the policies of this chapter and to maintain effectively the8

    strict regulation of licensed bingo.9

    (b) The commission may by rule provide for the10

    establishment of a list of persons who are to be excluded or11

    ejected from any licensed bingo establishment. The list may12

    include any person whose presence in the establishment is13

    determined by the commission or the executive director to pose14

    a threat to the interests of this state or to licensed bingo,15

    or both. Any licensed bingo establishment may eject persons16

    from such establishment for reasons deemed appropriate except17

    for those found under subsection (d) of this section.18

    (c) In making that determination, the commission and19

    the Executive Director may consider any:20

    (1) Prior conviction of a crime which is a felony in21

    this state or under the laws of the United States, a crime22

    involving moral turpitude, or a violation of the gaming laws23

    of any state;24

    (2) Violation or conspiracy to violate the25

    provisions of this chapter relating to:26

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    (i) The failure to disclose an interest in a bingo1

    establishment for which the person must obtain a license; or2

    (ii) Willful evasion of fees or taxes;3

    (3) Notorious or unsavory reputation which would4

    adversely affect public confidence and trust that the bingo5

    industry is free from criminal or corruptive elements; or6

    (4) Written order of a governmental agency which7

    authorizes the exclusion or ejection of the person from an8

    establishment at which gaming is conducted.9

    (d) Race, color, creed, sex, national origin,10

    disability or ancestry shall not be grounds for denying any11

    person the right of entry.12

    Section 13. Penalties; failure by bingo13

    establishments to exclude or eject14

    (a) The commission may revoke, limit, condition,15

    suspend or fine an individual licensee or licensed bingo16

    facility in accordance with the laws of this state and the17

    regulations of the commission if that establishment or any18

    individual licensee affiliated therewith knowingly fails to19

    exclude or eject from the premises of the licensed20

    establishment any person placed on the list of persons to be21

    excluded or ejected.22

    (b) Any person who has been placed on the list of23

    persons to be excluded or ejected from any licensed24

    establishment is guilty of a misdemeanor if he thereafter25

    enters the premises of a licensed establishment without first26

    having obtained a determination by the commission that he27

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    should not have been placed on the list of persons to be1

    excluded or ejected.2

    Section 14. Effective control over internal fiscal3

    affairs4

    (a) The commission shall prescribe minimum5

    procedures for adoption by each licensee to exercise effective6

    control over the internal fiscal affairs of the licensee,7

    which shall include but are not limited to provisions for:8

    (1) The safeguarding of assets and revenues,9

    especially the recording of cash and evidences of10

    indebtedness; and11

    (2) The provision of reliable records, accounts and12

    reports of transactions, operations and events, including13

    reports to the commission and the Executive Director to verify14

    bingo gross revenue.15

    (b) The commission shall by regulation require16

    periodic reports from each licensee concerning the bingo gross17

    revenue of such licensee.18

    (c) The commission shall by regulation require19

    audits of the bingo gross revenue of all bingo licensees at20

    points of destination.21

    (1) The audits, compilations and reviews provided22

    for in subsections (a), (b) and (c) must be made by23

    independent accountants holding permits to practice public24

    accounting in the State of Alabama.25

    (2) For every audit required pursuant to this26

    section:27

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    (i) The independent accountants shall submit an1

    audit report which must express an unqualified or qualified2

    opinion or, if appropriate, disclaim an opinion on the3

    statements taken as a whole in accordance with standards for4

    the accounting profession established by rules and regulations5

    of the Alabama State Board of Public Accountancy, but the6

    preparation of statement without audit does not constitute7

    compliance.8

    (ii) The examination and audit must disclose whether9

    the accounts, records and control procedures maintained by the10

    licensee are as required by the regulations promulgated by the11

    commission.12

    (3) If the license of a licensee is terminated13

    within three (3) months after the end of a period covered by14

    an audit, the licensee may submit compiled statements for15

    bingo gross revenue in lieu of an additional audited statement16

    of the bingo gross revenue for the licensee's final period of17

    business.18

    (4) The licensee shall be responsible for the19

    payment of costs or fees generated by any audit required by20

    the commission. Failure to pay such costs and fees for such21

    audit may result in the revocation of his license.22

    Section 15. Operating license for facility;23

    applicant eligibility24

    a. No bingo establishment shall operate unless all25

    necessary licenses and approvals therefor have been obtained26

    in accordance with law.27

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    b. No owner of more than five percent of a bingo1

    facility or operator of a bingo facility may be licensed if2

    ever convicted of a felony or convicted of any gambling3

    offence.4

    c. The commission shall approve the licensing of any5

    point of destination previously approved by a local governing6

    body if no evidence is presented by the commission which7

    proves beyond a reasonable doubt before a circuit judge in8

    Montgomery County that the licensing of such point of9

    destination would be in violation of this amendment according10

    to the conditions of licensing set forth in this amendment11

    herewith.12

    Section 16. Continuation of existing operations13

    (a) Any bingo operator using bingo equipment that is14

    licensed as of December 31, 2008, may continue to operate15

    until one hundred twenty (120) days after the ratification of16

    this amendment and shall not be required to make application17

    for a gaming or gaming establishment license. After one18

    hundred twenty (120) days has transpired following19

    ratification, all bingo operation licenses using bingo20

    equipment shall be automatically revoked other than at points21

    of destination. The preceding provisions of this section 1622

    shall not apply to bingo operators at points of destination.23

    Any licensee must comply with all rules, regulations, of the24

    state gaming commission and the department of revenue, all25

    provisions of this amendment applicable to the state gaming26

    commission and the department of revenue including the timely27

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    remittance of fees and tax. Bingo establishments shall comply1

    with this provision or state licensing and local licensing2

    shall be revoked.3

    Section 17. Issuance of licenses4

    (a) If satisfied that an applicant is eligible to5

    receive a state bingo license, and upon tender to the Revenue6

    Department of:7

    (1) All license fees and taxes as required by law8

    and regulation of the State Gaming Commission; and9

    (2) A bond in the amount of the gross receipts tax10

    anticipated in the first month of operation shall be executed11

    by the applicant as principal, and by a corporation qualified12

    under the laws of this state as surety, payable to the State13

    of Alabama and conditioned upon the payment of license fees,14

    taxes, penalties, interest, fines and the faithful performance15

    of all requirements imposed by law or regulation or the16

    conditions of the license, the commission shall issue licenses17

    for a period of twenty (20) years which shall be renewed for18

    consecutive five year periods unless the commission shows19

    cause that a violation of the provisions of this amendment has20

    occurred and deliver to the applicant a license entitling the21

    applicant to engage in the bingo operation for which he is22

    licensed. The Executive Director shall prepare and maintain a23

    written record of the specific terms and conditions of any24

    license issued and delivered and of any modification to the25

    license. A duplicate of the record must be delivered to the26

    applicant or licensee.27

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    Section 18. Payment of fees to make application for1

    or continue license2

    (a) Subject to the power of the commission to deny,3

    revoke, suspend, condition or limit licenses, any state bingo4

    license in force using bingo equipment may be received or5

    continued by the commission upon proper payment of state6

    license fees and any other fees, taxes and penalties as7

    required by this amendment, including an annual license fee of8

    not less than two hundred thousand dollars ($200,000).9

    (b) Except for those points of destination initially10

    licensed following the ratification of this amendment, a11

    non-refundable application fee of not less than two hundred12

    fifty thousand dollars ($250,000) shall be remitted by any new13

    applicant and a renewal fee of two hundred fifty thousand14

    dollars ($250,000) shall be due from a licensee at a15

    destination point within thirty days following any license16

    renewal. These license and application fees shall be17

    appropriated annually for the operations and maintenance of18

    the commission. Additional fees may be assessed to operators19

    for the operation of the commission but shall be subject to20

    approval by the legislative council.21

    (c) All state license fees and fees required by law22

    must be paid to the Revenue Department on or before the dates23

    respectively provided by law or regulation for each fee.24

    (d) Any person failing to pay the state gross25

    receipts tax on bingo gross revenue or the license or26

    application fees due at the times respectively provided shall27

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    pay in addition to such license fee or fees, a penalty of not1

    less than twenty-five percent (25%) of the amount due, unless2

    failure to timely pay is due to reasonable cause as determined3

    by the commission. The penalty must be collected as are other4

    charges, license fees and penalties under this chapter.5

    (e) If any licensee fails to pay his license fee as6

    provided in this section, the commission may order the7

    immediate closure of all the bingo activity until all8

    necessary fees, interest and penalties have been paid.9

    (f) Counties in which bingo activities using bingo10

    equipment are authorized by this amendment are authorized to11

    impose fees on a per bingo machine basis if imposed by the12

    local governing body; however, such fee shall not exceed $50013

    per bingo machine per year, provided, however, in lieu of any14

    fee imposed by the local county governing body, as to each15

    racetrack, a $500 per bingo machine fee shall be paid on or16

    before December 31 of each year to the local racing17

    commission, with the local racing commission for such18

    racetrack to use no greater than one-third of such funds for19

    the regulation and supervision of the bingo operations at the20

    racetrack, with the balance of such annual funds distributed21

    by the local racing commission to each of the governmental22

    agencies and nonprofit organizations that are recipients of23

    the pari-mutuel tax as established by local or general act.24

    Nothing contained in this Section shall limit a district25

    organized pursuant to Chapter 99A or 99B of Title 11 of the26

    Code of Alabama (1975) from making assessments in excess of27

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    $500 per bingo machine per annum, provided that such1

    assessments are for the purpose of paying principal or2

    interest relative to bonds issued by such district. The state3

    gross receipts tax, the state license fees, and the local4

    bingo machine fees required to be paid pursuant to this5

    amendment shall be in lieu of all other state or local taxes6

    or license fees levied with respect to the conduct of bingo7

    and the bingo operator, provided, however, that all operators8

    of bingo games shall continue to be liable for all income9

    taxes, franchise taxes, property taxes, and sales and use10

    taxes on merchandise, food and beverage generally applicable11

    to all businesses at uniform rates.12

    "Section 19. Amendment to Be Self-Executing.13

    This amendment shall be self-executing, but the14

    Legislature shall have the right and power to enact general or15

    local laws supplemental to this amendment to further its16

    purposes or provide for its implementation; provided, however,17

    that such laws shall not be inconsistent with the express18

    provisions of this amendment.19

    "Section 20. Effective Date. This amendment shall20

    take effect as part of the Constitution of Alabama upon its21

    adoption by the electors of the state."22

    Section 2. The election on said proposed amendment23

    shall be held in accordance with the provisions of Sections24

    284 and 285 of the Constitution of Alabama of 1901, as25

    amended, and the Code of Alabama 1975, Title 17, Chapter 17;26

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    however, such amendment shall be on the party primary ballot1

    for 2010.2

    Section 3. The appropriate election official shall3

    assign a number to designate the proposed amendment on the4

    election ballot and shall set forth the question on the5

    adoption of the proposed amendment in the following form:6

    "Shall an amendment to the Constitution of Alabama,7

    as proposed by Act No. ____ [here insert the number assigned8

    to the proposing act], be adopted (i) to authorize bingo9

    destination points in Greene County, Macon County, Mobile10

    County, City of Birmingham, Calhoun County, Etowah County, the11

    City of White Hall in Lowndes County, Houston County, and12

    Walker County, (ii) to establish the conditions under which13

    bingo may be played in limited areas in the state, (iii) to14

    authorize a state compact to require the Poarch Band of Creek15

    Indians to make payments in lieu of taxes and to set16

    restrictions on Indian gaming as a prerequisite thereof, (iv)17

    to levy a state gross receipts tax on the revenue generated by18

    bingo games, (v) to create a state gaming commission for the19

    regulation of bingo operations throughout the state and to20

    enforce the gaming laws of the state, and (vi) to provide21

    funds for the Education Trust Fund and the state General Fund22

    for the benefit of the state Medicaid program?23

    Yes [ ]24

    No [ ]"25

    Section 4. Notice of the election shall be given by26

    proclamation of the Governor, which proclamation, including27

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    the full text of the proposed amendment, shall be published1

    once a week for four successive weeks next preceding the date2

    appointed for the election in a newspaper published in each3

    county of the state. In each county in which no newspaper is4

    published, a copy of the proclamation of the Governor, giving5

    notice of the election and the full text of the proposed6

    amendment, shall be posted at each courthouse in such county.7