HB 545

Under existing law, bingo may be played in Greene County pursuant to Amendment 743 to the Constitution of Alabama of 1901

This bill proposes the repeal of Amendment 743 and proposes a local amendment to the Constitution of Alabama of 1901, to provide that in Greene County, the game of bingo authorized by the amendment may be played on any electronic machine or device that is authorized pursuant to specified federal law; to limit bingo gaming in Greene County to qualified persons licensed by the Greene County Gaming Commission; to levy a state gross receipts tax and a local gross receipts tax on bingo gaming revenue of each bingo licensee; to levy a tax on vendors of bingo gaming equipment; to provide for the allocation of the proceeds from the state gross receipts tax, the local gross receipts tax, and the tax on vendors of bingo gaming equipment; and to create the Greene County Gaming Commission to implement, regulate, and administer bingo gaming

To repeal Amendment 743 and to propose an amendment to the Constitution of Alabama of 1901, authorizing the conduct of bingo games in Greene County; to provide that the game of bingo authorized may be played in Greene County on any electronic machine or device that is authorized by specified federal law; to limit bingo gaming in Greene County to qualified persons licensed by the Greene County Gaming Commission; to levy a state gross receipts tax and a local gross receipts tax on bingo gaming revenue of each bingo licensee; to levy a tax on vendors of bingo gaming equipment; and to create the Greene County Gaming Commission to implement, regulate, and administer bingo gaming.

Section 1

An election upon the proposed amendment shall be held in accordance with Sections 284 and 284.01 of the Constitution of Alabama of 1901, now appearing as Sections 284 and 284.01 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, and the election laws of this state: PROPOSED AMENDMENT

Section 2

For purposes of this amendment, the following words have the following meanings: (1) BINGO. That specific kind of game of chance commonly known as bingo, whether or not played using paper or on a computer or using electronic or technological aids in connection therewith, in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random. The game of bingo may be played on any machine or device, electronic or otherwise. Sections 8-1-150, 13A-12-20 through 13A-12-30 of the Code of Alabama 1975, do not apply to any bingo games authorized by this amendment and operated in accordance with the rules adopted by the Greene County Gaming Commission. (2) BINGO LICENSEE. A qualified person licensed by the Greene County Gaming Commission to conduct bingo gaming in Greene County. (3) EQUIPMENT. The receptacle and numbered objects drawn from it, the master board upon which such objects are placed as drawn, the cards or sheets bearing numbers or other designations to be covered and the objects used to cover them or electronic card marking machines, and the board or signs, however operated, used to announce or display the numbers or designations as they are drawn, and any electronic machine or device that is authorized or approved pursuant to 25 U.S.C. § 2703(7). (4) GAMING GROSS REVENUE. The total amount of money or value in any form received by a bingo licensee with respect to the playing of any form of bingo game, less the total money or value in any form paid as prizes or winnings to the players of a bingo game and free play or promotional credits, but before deduction of any expenses incurred in operating the establishment, including, but not limited to, depreciation or leasing costs of physical facilities and equipment, wages and other employment costs, utilities, interest, and taxes. Gaming gross revenue may not be included in a pari-mutuel pool for the purpose of determining any tax levied on pari-mutuel wagering or for any other purpose. (5) QUALIFIED PERSON. An individual, corporation, limited liability company, or other business entity that is not prohibited from receiving a bingo license based on the disqualifiers set out below. The term does not include an individual or business entity, including its officers and any individual with a 15 percent or more ownership interest that: a. Has been convicted of a gaming related felony. b. Has been convicted of a felony involving theft by deception, including, but not limited to, embezzlement, and other thefts using fraud, trickery, illegal schemes, or the like. c. Has been convicted of any felony involving fraud or misrepresentation, including, but not limited to, bad checks, fraud, forgery, perjury, tax or welfare fraud, and crimes involving false documentation. d. Is currently being prosecuted or facing pending charges, in any jurisdiction, for any of the above offenses, or on a deferred prosecution, or a deferred judgment or sentence for any of the above offenses.

Section 3

Bingo licensees may operate bingo games for prizes or money. The Greene County Gaming Commission shall adopt rules for the licensing, permitting, and operation of bingo games within the county. The Greene County Gaming Commission shall insure compliance with the rules and all of the following: (1) No person under the age of 19 years shall be permitted to play any game or games of bingo, nor shall any person under the age of 19 years be permitted to conduct or assist in the operation of any game of bingo. (2) Bingo games shall be operated exclusively on the premises owned or leased by the bingo licensee operating the bingo game. (3) A bingo licensee may enter into a contract with any individual, firm, association, or corporation to have the individual or entity operate bingo games or concessions on behalf of the bingo licensee, provided that the contract is approved by the Greene County Gaming Commission. A bingo licensee may pay consulting fees to any individual or entity for any services performed in relation to the operation or conduct of bingo games. (4) A bingo licensee may not lend its name or allow its identity to be used by another person or entity in the operating, promoting, or advertising of bingo games in which the bingo licensee is not directly and solely operating the bingo games. (5) All equipment shall be approved by the Greene County Gaming Commission.

Section 4

State and Local Gross Receipts Tax. (a)(1) A state gross receipts tax of two percent is levied on the gaming gross revenue of each bingo licensee. (2) The state gross receipts tax on gaming gross revenue for each calendar month shall be paid by each bingo licensee to the Department of Revenue on or before the 20th day of the next succeeding calendar month for deposit in the state General Fund. (b)(1) A local gross receipts tax of 10 percent is levied on the gaming gross revenue of each bingo licensee. (2) The local gross receipts tax on gaming gross revenue for each calendar month shall be paid to the Greene County Gaming Commission on or before the 20th day of the next succeeding calendar month. (3) The Greene County Gaming Commission shall retain the proceeds from one-half of one percent of the local gross receipt tax to provide for all reasonable and necessary expenses incurred by the commission in the furtherance of its duties to license and regulate bingo gaming in Greene County. (4) The Greene County Gaming Commission shall apportion the remainder of the local gross receipts tax as follows: a. The proceeds from one-half of one percent to the Greene County Commission. b. The proceeds from two percent to the Greene County Commission which shall be apportioned among the municipalities in the county on the basis of the ratio of the population of the municipality to the population of all the municipalities in the county and paid to the municipalities forthwith. c. The proceeds from one-half of one percent to the Greene County Firefighters Association. d. The proceeds from two percent to the Greene County Board of Education. e. The proceeds from one-half of one percent to the Greene County E-911 Communications District. f. The proceeds from one percent to the Greene County Hospital and Nursing Home. g. The proceeds from one-quarter of one percent to the Greene County Industrial Development Board. h. The proceeds from one-quarter of one percent to the Greene County Ambulance Service. i. The proceeds from three-quarters of one percent to the Greene County Housing Authority. j. The proceeds from the remaining three-quarters of one percent of the local gross receipts tax, based upon criteria adopted by the Greene County Gaming Commission, shall be awarded by the Greene County Gaming Commission to nonprofit organizations that provide services to the residents of Greene County. (c)(1) A local bingo game vendor tax is hereby levied on bingo game vendors conducting business in Greene County in an amount equal to three percent of the gross revenues collected by the bingo game vendor from leases or other revenue sharing arrangements with a bingo licensee. (2) A bingo game vendor shall pay the local bingo game vendor tax for each calendar month to the Greene County Gaming Commission on or before the twentieth day of the next succeeding calendar year. Two-thirds of the proceeds of the local bingo game vendor tax shall be deposited into the county general fund to be distributed between the Eutaw Police Department and the Greene County Sheriff's Department on the basis of the ratio of the population of the municipality to the population of the county. The remaining one-third of the proceeds shall be awarded by the Greene County Gaming Commission to nonprofit organizations that provide services to the residents of Greene County. (d) The state gross receipts of tax on gaming gross revenue, the local gross receipts tax on gaming gross revenue, and the local bingo game vendor tax shall be in lieu of all other state or local taxes or license fees levied with respect to the conduct of bingo games by a bingo licensee in Greene County. Notwithstanding the foregoing, a bingo licensee is liable for all income taxes, franchise taxes, property taxes, lodging taxes, and sales and use taxes on merchandise, food, and beverage generally applicable at uniform rates to all businesses operating in the county.

Section 5

The Greene County Gaming Commission. (a) There is hereby created the Greene County Gaming Commission. The commission shall regulate and supervise the operation and conduct of bingo games in Greene County, shall implement, regulate, administer, and supervise all laws and rules related to the operation and conduct of bingo games by a bingo licensee in Greene County, and shall cooperate with the local district attorney in enforcing all laws related to illegal gambling. (b) The Greene County Gaming Commission shall consist of five members. Each member of the commission shall be appointed by the local legislative delegation. The appointed members shall represent the gender and racial diversity of the state. At least three of the appointed members must be residents of Greene County. (1) Members of the commission shall be residents of the State of Alabama, residents in the congressional district which includes Greene County, United States citizens, and prominent persons in their businesses or professions, may not have been convicted of a felony, and may not be the executive director of or another employee of the commission, an officer of or occupy an official position in any political party, an elected official, or actively engaged in the business of, or have a pecuniary interest in, a racetrack or casino. (2) Appointed members shall serve a term of five years and may serve two complete terms and any portion of an initial term of less than five 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. The initial term of office upon the effective date of this amendment shall be five years for the member appointed by the local legislative delegation, three years for the remaining three members appointed by the local legislative delegation. Each member of the commission shall serve for the duration of his or her term and until his or her successor is duly appointed; provided, however, that if a successor is not appointed within 120 days after the expiration of a member's term, a vacancy shall be deemed to exist. (3) The commission and its members and employees shall be subject to the Ethics Law, Section 36-25-1, et seq., Code of Alabama 1975; the Open Records Act, Section 36-12-40, Code of Alabama 1975; the Open Meetings Act, Section 36-25A-1, et seq., Code of Alabama 1975; and the Administrative Procedure Act, Section 41-22-1, et seq., Code of Alabama 1975. (c) Nothing in this amendment prohibits, limits, or alters the authority of any local racing commission with respect to the continued regulation and supervision of racing and pari-mutuel wagering at a racetrack.

Section 6

Amendment 743 of the Constitution of Alabama of 1901, is repealed. END OF PROPOSED AMENDMENT

Section 7

An election upon the proposed amendment shall be held in accordance with Section 284 and Section 284.01 of the Official Recompilation of the Constitution of Alabama of 1901, and the election laws of this state.

Section 8

The appropriate election official shall assign a ballot number for the proposed constitutional amendment on the election ballot and shall set forth the following description of the substance or subject matter of the proposed constitutional amendment:

Relating to Greene County, proposing an amendment to the Constitution of Alabama of 1901, to repeal Amendment 743, authorizing and regulating bingo gaming in Greene County; to provide that the game of bingo may be played on any electronic machine or device that is authorized pursuant by federal law; to limit bingo gaming in Greene County to a bingo licensee licensed by the Greene County Gaming Commission; to levy a state gross receipts tax and a local gross receipts tax on bingo gaming revenue of the bingo licensee; to levy a tax on vendors of bingo gaming equipment; to provide for the allocation of the tax proceeds; and to create the Greene County Gaming Commission to implement, regulate, and administer bingo gaming.

Proposed by Act ________." This description shall be followed by the following language:

Yes ( ) No ( )."