SB11 Alabama 2016 1st Special Session Session

Updated Feb 26, 2026

High Interest

Summary

Primary Sponsor: Jim McClendon
Republican
Session: First Special Session 2016
Title: Judicial Inquiry Commission and Court of the Judiciary, abolished, const. amend.
Summary: Proposes a statewide Alabama Lottery with a governing body and fund to support education and Medicaid, regulate electronic lotteries at four racetracks, and pursue a gaming compact with the Poarch Band of Creek Indians.
What This Bill Does
If approved, it would amend the constitution to create the Alabama Lottery, the Alabama Lottery Corporation, and the Alabama Lottery Commission to run and regulate electronic lotteries. Electronic lotteries would be allowed at four racetracks and funded by taxes to support administration, Medicaid bonds, Pre-K, career-technical scholarships, public schools, and the General Fund. It would establish the Alabama Education Legacy Fund to hold proceeds and authorize a bonding authority to issue up to about $85 million in Medicaid bonds payable from lottery revenue. The Governor could negotiate a gaming compact with the Poarch Band of Creek Indians, with general laws to implement the amendment and a prohibition on live-dealer casino games, subject to legislative ratification.

Who It Affects
Alabama residents and public programs (education and Medicaid) would receive funding and potential changes in state services from lottery proceeds.
Racetrack operators, electronic lottery vendors, and local governments in the four racetrack locations would participate in licensing, taxation, and revenue distribution related to electronic lotteries (with a potential compact involving the Poarch Band of Creek Indians).

Key Provisions
Amends Section 65 to establish an Alabama Lottery statewide, the Alabama Lottery Corporation, and the Alabama Education Legacy Fund; creates a bonding authority to issue Medicaid bonds.
Authorizes electronic lotteries at four racetracks (Mobile County, Macon County, City of Birmingham in Jefferson County, Greene County) and imposes a state gross receipts tax, local gross receipts tax, and a 4% vendor tax on electronic lottery activities; proceeds directed to education and Medicaid funding after administrative costs.
Distributes proceeds with priority: up to 15% for administration, bond payments, $10,000,000 to Pre-K, $15,000,000 to career-technical scholarships, $75,000,000 to public schools (split between higher ed and K-12), remainder to the General Fund; public schools include specific state institutions.
Establishes the Alabama Lottery Commission (5 members from specified offices) with defined eligibility, terms, and oversight powers; grants regulatory authority over the Alabama Lottery and electronic lotteries at racetracks.
Loans/financing: creates a revenue bond authority to issue up to net $85 million, with bonds payable from lottery proceeds and a 10-year maturity, not constituting state debt.
Licensing: racetracks receive an initial electronic lottery license for 20 years, renewable for five-year terms; licenses subject to general laws; no elected official may contribute to or be employed by a racetrack’s electronic lottery operation; players and workers must be at least 21.
Regulation and enforcement: commission authorized to regulate and supervise electronic lotteries and gambling; coordination with AG and local DAs; enforcement provisions included.
Compact negotiations: requires the Governor to negotiate a gaming compact with the Poarch Band of Creek Indians, with the compact submitted to the Legislature for ratification; amendment prohibits live dealer casino games.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Constitutional Amendments