HB501 Alabama 2022 Session

Summary

Primary Sponsor

Chip BrownRepresentative

Republican

Session

Regular Session 2022

Title

Gaming, official state lottery, established, Alabama Education Lottery Commission established, distribution of lottery proceeds, provided, const. amend.

Summary

The bill would amend Alabama's constitution to create an official state lottery called the Alabama Education Lottery and a commission to regulate it, with proceeds funding education-related programs.

What This Bill Does

It would authorize a state lottery with games approved by the new Alabama Education Lottery Commission. Proceeds would go into the Alabama Education Lottery Trust Fund and be used for scholarships, bonuses to retired educators and education staff, dues and fees for agricultural education programs, and programs addressing problem gaming, with the commission overseeing use and reporting. The bill sets rules for how the lottery is run, including age limits, self-exclusion, and that ticket sales and game operations are regulated by the commission, and it prohibits video lottery terminals. It also places a funding threshold that no appropriations from the fund can occur until the balance reaches $250 million, and the amendment would be put to a statewide vote in November 2022.

Who It Affects

• Alabama residents who may participate in Alabama Education Lottery games.
• Retired teachers and education support staff who could receive bonuses.
• Postsecondary students who could receive scholarships.
• Students and programs involved in agricultural education who may receive dues/fees funding.
• Lottery retailers, vendors, and employees who would be affected by new regulations and licensing.
• The general public in relation to age restrictions and responsible gambling measures.

Key Provisions

• Proposes amending Section 65 of the Alabama Constitution to authorize an Alabama Education Lottery and create the Alabama Education Lottery Commission to regulate it.
• Creates an eight-member Commission with specific appointment rules and diversity requirements; members cannot be lottery industry employees or elected officials.
• Gives the Commission authority to regulate the lottery, approve games, supervise personnel, audit retailers, issue subpoenas, and establish enforcement and due-process procedures.
• Defines lottery-related terms, prohibits video lottery terminals, sets age restrictions, self-exclusion policies, and rules for selling tickets (paper, vending machines, or self-serve kiosks).
• Requires annual financial reporting and allows a tax provision where prize taxes may substitute for certain other state/local taxes.
• Directs that proceeds go into the Alabama Education Lottery Trust Fund; the Commission may retain funds needed for operation and prizes, with remaining proceeds allocated to scholarships, retired educator bonuses, agricultural education dues, and problem-gaming programs.
• Requires no lottery appropriations until the fund balance reaches $250 million, and outlines the process for election approval of the amendment in November 2022.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments