SB340 By Senator Singleton RFD Local Legislation Rd 1 10-MAR-16

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

This bill proposes an amendment to Amendment 743 of the Constitution of Alabama of 1901, to clarify and provide that the game of bingo authorized by Amendment 743 may be played on any electronic machine or device that is authorized by the National Indian Gaming Commission pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq., and which is operated by any Native American tribe in Alabama; to limit bingo gaming in Greene County to a licensed racetrack in Greene County where pari-mutuel wagering is currently legal; to levy a state gross receipts tax and a local gross receipts tax on bingo gaming revenue of the racetrack; to levy a tax on vendors of bingo gaming equipment; to provide for the allocation of the local bingo gaming tax proceeds; and to create the Greene County Gaming Commission to implement, regulate, and administer bingo gaming.

A BILL TO BE ENTITLED AN ACT

Proposing an amendment to Amendment 743 to the Constitution of Alabama of 1901, to clarify and provide that the game of bingo authorized in Greene County by Amendment 743 may be played on any electronic machine or device that is authorized by the National Indian Gaming Commission pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq., and which is operated by any Native America tribe in Alabama; to limit bingo gaming in Greene County to a licensed racetrack in Greene County where pari-mutuel wagering is currently legal; to levy a state gross receipts tax and a local gross receipts tax on bingo gaming revenue of the racetrack; to levy a tax on vendors of bingo gaming equipment; to provide for the allocation of the local bingo gaming tax proceeds; and to create the Greene County Gaming Commission to implement, regulate, and administer bingo gaming.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. The following amendment to the Constitution of Alabama of 1901, as amended, is proposed and shall become valid as a part thereof when approved by a majority of the qualified electors voting thereon and in accordance with Sections 284, 285, and 287 of the Constitution of Alabama of 1901, as amended:

PROPOSED AMENDMENT

"Section 1. For purposes of this amendment, the following words have the following meanings:

"1. BINGO. That specific kind of game commonly known as bingo in which prizes are awarded on the basis of designated numbers or symbols on a card or electronic marking machine conforming to numbers or symbols selected at random. The game of bingo may be played on any bingo machine or device, electronic or otherwise, authorized by the National Indian Gaming Commission pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq., and which is operated by any Native American tribe in Alabama. Sections 8-1-150, 13A-12-20 through 13A-12-27, and 13A-12-30 of the Code of Alabama 1975, shall not apply to any bingo games authorized by this provision and operated in accordance with the rules adopted by the Greene County Gaming Commission.

"2. 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 authorized by the National Indian Gaming Commission pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq., and which is operated by any Native American tribe in Alabama.

"3. GAMING GROSS REVENUE. The total amount of money or value in any form received by a racetrack 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.

"3. 4. NONPROFIT ORGANIZATION. A bona fide religious, educational, service, senior citizens', fraternal, or veterans' organization which operates without profit to its members and which either has been in existence continuously as such an organization for a period of three years or is exempt from taxation by virtue of having been classified as a tax exempt nonprofit organization by the Internal Revenue Service, United States Government. This term includes a volunteer fire department and a volunteer rescue squad.

"5. RACETRACK. A corporation, limited liability company, or other business entity authorized by the Greene County Racing Commission pursuant to law to operate and conduct pari-mutuel wagering on live or simulcast races as of January 1, 2016, in Greene County. The term includes any business entity operating bingo games under agreement with a racetrack.

"Section 2. Bingo games for prizes or money may be operated by a nonprofit organization racetrack in Greene County. The sheriff Greene County Gaming Commission shall promulgate adopt rules and regulations for the licensing, permitting, and operation of bingo games within the county. The sheriff Greene County Gaming Commission shall insure compliance with such rules or regulations 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 nonprofit organization racetrack operating the bingo game. Such location shall be specified in the application of the nonprofit organization.

"(3) A nonprofit organization racetrack may not enter into any a contract with any individual, firm, association, or corporation to have the individual or entity operate bingo games or concessions on behalf of the nonprofit organization racetrack provided that the contract is approved by the Greene County Gaming Commission. A nonprofit organization racetrack may not pay consulting fees to any individual or entity for any services performed in relation to the operation or conduct of a bingo game games.

"(4) A nonprofit organization racetrack may not lend its name or allow its identity to be used by another person or entity in the operating, promoting, or advertising of a bingo game games in which the nonprofit organization racetrack is not directly and solely operating the bingo game games.

"(5) All equipment shall be stamped or clearly marked in letters no less than one-half inch in height and one-fourth inch in width (except for the letter "I") with the name of the nonprofit organization using the equipment. A nonprofit organization or other person or entity may not use equipment marked with the name of another nonprofit organization approved by the Greene County Gaming Commission.

"(6) Prizes given by any nonprofit organization for the playing of bingo games shall not exceed ten thousand dollars ($10,000) in cash or gifts of equivalent value during any bingo session.

"(7) A nonprofit organization may not advertise bingo except to the extent and in the manner authorized by rule of the sheriff. If the sheriff allows a nonprofit organization to advertise bingo, the nonprofit organization shall indicate in the advertisement the purposes for which the net proceeds will be used by the nonprofit organization.

"(8) A nonprofit organization shall display its bingo license conspicuously at the location where the bingo game is conducted.

"(9) The sheriff shall determine by regulation the days of operation during any calendar week and the hours of operation.

"Section 3. State and Local Gross Receipts Tax.

"(a)(1) A state gross receipts tax of four percent is levied on the gaming gross revenue of the racetrack.

"(2) The state gross receipts tax on gaming gross revenue for each calendar month shall be paid by the racetrack to the Department of Revenue on or before the twentieth day of the next succeeding calendar month for deposit in the State General Fund.

"(b)(1) A local gross receipts tax of eight and one-half percent is levied on the gaming gross revenue of the racetrack.

"(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 twentieth day of the next succeeding calendar month.

"(3) The Greene County Gaming Commission shall apportion the local gross receipts tax as follows:

"a. The proceeds from the tax of one-half of one percent to be retained by the Greene County Gaming Commission 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.

"b. The proceeds from the tax of one-half of one percent to the Greene County Commission.

"c. The proceeds from the tax of one and one-half 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 pay the amounts apportioned to the municipalities forthwith.

"d. The proceeds from the tax of one-half of one percent to the Greene County Firefighters Association.

"e. The proceeds from the tax of two percent to the Greene County Board of Education.

"f. The proceeds from the tax of one-half of one percent to the Greene County E-911 Communications District.

"g. The proceeds from the tax of one percent to the Greene County Hospital and Nursing Home.

"h. The proceeds from the tax of one-quarter of one percent to the Greene County Industrial Development Board.

"i. The proceeds from the tax of one-quarter of one percent to the Greene County Ambulance Service.

"j. The proceeds from the tax of three-quarters of one percent to the Greene County Housing Authority.

"k. The proceeds from the remaining tax of three-quarters of one percent from 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 four percent of the gross revenues collected by the bingo game vendor from leases or other revenue sharing arrangements with a racetrack.

"(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 month for deposit in the County General Fund. The local bingo game vendor tax shall be apportioned 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.

"(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 racetrack in Greene County. Notwithstanding the foregoing, a racetrack 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 in which the racetrack is licensed.

"Section 4. 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 racetrack 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. One member of the commission shall be appointed by the Governor, one member shall be appointed by the United States Representative for the Seventh Congressional District, one member shall be appointed by the state Senator for the Twenty-fourth Senate District encompassing Greene County, and two members shall be appointed by the Alabama House of Representatives delegation for Greene County. The members, where possible, shall represent the gender and racial diversity of the state.

"(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. At least two of the members must be residents of Greene County.

"(2) 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 state Senator from the Twenty-fourth Senate District, five years for the two members appointed by the Alabama House of Representatives delegation for Greene County, three years for the member appointed by the United States Representative for the Seventh Congressional District, and two years for the member appointed by the Governor. 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 subsection 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.

"A violation of this amendment is a Class A misdemeanor as specified by general law."

Section 2. An election upon the proposed amendment shall be held in accordance with Sections 284 and 285 of the Constitution of Alabama of 1901, now appearing as Sections 284 and 285 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, and the election laws of this state.

Section 3. 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:

"Proposing an amendment to Amendment 743 of the Constitution of Alabama of 1901, to authorize and further regulate bingo gaming in Greene County to provide that the game of bingo authorized by Amendment 743 may be played on any electronic machine or device that is authorized by the National Indian Gaming Commission pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq., and which is operated by any Native America tribe in Alabama; to limit bingo gaming in Greene County to a licensed racetrack in Greene County where pari-mutuel wagering is currently legal; to levy a state gross receipts tax and a local gross receipts tax on bingo gaming revenue of the racetrack; to levy a tax on vendors of bingo gaming equipment; to provide for the allocation of the local bingo gaming 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 ( )."

Constitutional Amendments

Greene County

Counties

Gambling

Bingo

Race Tracks