HB502 Alabama 2022 Session

Summary

Primary Sponsor

Chip BrownRepresentative

Republican

Session

Regular Session 2022

Title

Lotteries; Alabama Education Lottery Commission, further provided; Alabama Education Lottery Trust Fund established, administration and distribution of funds, provided; licensing of lottery reatilers, provided; state tax on lottery revenues, provided; education scholarship program, created.

Summary

HB502 would create the Alabama Education Lottery, a state regulatory system with a dedicated fund to support education through scholarships and related programs.

What This Bill Does

It creates the Alabama Education Lottery Commission and an Enforcement Division to regulate lottery games, license retailers, and enforce rules, including penalties and a hearings process. It imposes a state tax on net lottery revenues and directs how license fees and tax proceeds are distributed. It establishes the Alabama Education Lottery Trust Fund to pay lottery administration, prizes, and education-related programs, with remaining funds funding ACHE-administered scholarships (the Alabama GRADs programs) and related activities. It authorizes scholarship and loan repayment programs for higher education (Two-year and Four-year GRADs programs) administered by ACHE, with detailed eligibility and benefit rules, and sets broad consumer protections (e.g., under-21 purchase prohibition, penalties, and minority business participation).

Who It Affects

• Lottery retailers and entities applying for lottery retailer licenses, who would face license requirements, fees, ongoing compliance, and potential civil or criminal penalties for violations.
• Alabama residents and students, who could benefit from new education scholarships and loan repayment programs funded by lottery proceeds, and are subject to under-21 purchase restrictions and reporting requirements.

Key Provisions

• Creates the Alabama Education Lottery Commission and an Enforcement Division to regulate all lottery games in the state, with authority to investigate violations and enforce rules.
• Allows issuance and regulation of lottery retailer licenses, including license fees, renewal, suspension, transfer, and penalties for violations.
• Imposes a state tax on net lottery revenues and distributes license fees and tax proceeds to the Alabama Education Lottery Trust Fund.
• Establishes the Alabama Education Lottery Trust Fund to pay lottery administration costs and prizes first, with remaining funds supporting education scholarship programs and related initiatives.
• Creates the Alabama GRADs Two-year College and Workforce Development Scholarship Program, the Alabama GRADs Four-year College Scholarship Program, and the Alabama GRADs Four-year College Student Loan Repayment Program, all administered by ACHE with specified eligibility and benefit rules.
• Enacts under-21 lottery purchase prohibitions, misdemeanor offenses for violations, civil penalties, and a process for hearings; requires minority business participation and annual reporting on participation results.

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

Subjects

Lotteries