SB40 By Senator Sanders RFD Tourism and Marketing Rd 1 07-FEB-17

SYNOPSIS: Under existing law, bingo may be played in the Town of White Hall pursuant to Amendment 674 to the Constitution of Alabama of 1901. This bill proposes an amendment to the Constitution of Alabama of 1901, that would provide that electronic bingo may be played in the Town of Whitehall and Lowndes County on any 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; levy a state gross receipts tax and a county gross receipts tax on electronic bingo gaming; levy a tax on vendors of bingo gaming equipment; provide for the administration of electronic bingo by the Town Council of White Hall; provide for the allocation of the gaming tax proceeds to the State of Alabama and Lowndes County; and provide for the distribution of the local gaming tax proceeds by the Lowndes County Commission.

A BILL TO BE ENTITLED AN ACT

Proposing an amendment to the Constitution of Alabama of 1901, relating to legalizing certain operations of electronic bingo games for prizes or money in the Town of White Hall and Lowndes County; to authorize the Town of White Hall to operate and license electronic bingo games; to levy a state gross receipts tax and a county gross receipts tax on electronic bingo to be administered by the Lowndes County Commission; to levy a state and local tax on vendors of bingo equipment to be administered by the Lowndes County Commission; to provide for the distribution of tax proceeds of the tax; and to prohibit persons under the age of 18 from playing electronic bingo.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. The following amendment to the Constitution of Alabama of 1901, is proposed and shall become valid as a part of the Constitution when all requirements of this act are fulfilled:

PROPOSED AMENDMENT

(a) The operation of bingo games, including electronic bingo, for prizes or money, which shall include the Town of White Hall or any agency thereof, shall be legal in the Town of White Hall and Lowndes County, subject to any resolution or ordinance by the White Hall Town Council. The White Hall Town Council shall have the authority to promulgate rules and regulations for the licensing and operation of bingo games and shall insure compliance pursuant to any ordinance and the following provisions:

(1) Bingo may be played on any 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.

(2) A state gross receipts tax of five percent is levied on the gaming gross revenue. The state gross receipts tax on gaming gross revenue shall be paid by the electronic bingo facility to the Department of Revenue on or before the 20th day of the next succeeding calendar month for deposit in the State General Fund.

(3) A local gross receipts tax of 10 percent is levied on the gaming gross revenue. The local gross receipts tax shall be paid to the Lowndes County Commission on or before the 20th day of the next succeeding calendar month.

a. The Lowndes County Commission shall distribute one and one-half percent of the local tax revenue to the Town of White Hall to provide for all reasonable and necessary expenses incurred by the town council in furtherance of its duties to license and regulate bingo and other needs.

b. The Lowndes County Commission shall distribute three percent of the local tax revenue to the Lowndes County Board of Education to be apportioned for public education in Lowndes County.

d. The Lowndes County Commission shall distribute two percent of the local tax revenue to municipalities in the county apportioned on the basis of the ratio of the population of each municipality.

e. The Lowndes County Commission shall distribute one percent of the local tax revenue to nonprofit tax-exempt entities that provide services to the residents of Lowndes County.

f. The Lowndes County Commission shall retain two and one-half percent of the local tax revenue to provide services to the citizens of Lowndes County.

(4) The state and local gross receipts taxes are calculated from the total amount of money or value in any form received by an entity 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.

(5) A local bingo vendor tax is levied on bingo game vendors conducting business in Lowndes County in an amount equal to five percent of the gross revenues collected by the bingo game vendor from leases or other revenue sharing agreements with the bingo facility. The local bingo vendor tax receipts shall be paid to the Lowndes County Commission on or before the 20th day of the next succeeding calendar month. The local bingo vendor tax revenue shall be dedicated for law enforcement services in Lowndes County, including the Lowndes County Sheriff's Department and municipal police departments, and shall be allocated by the county commission only for those purposes.

(6) No person under the age of 18 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.

(7) No bingo license shall be issued to any organization unless the organization has been in existence for at least two years immediately prior to the issuance of the license.

(8) Bingo games shall be operated only on the premises owned or leased by the organization operating the bingo game. If the premises are leased, the rate of rental shall not be based on a percentage of receipts or profits resulting from the operation of bingo games unless such percentage is established by promulgated rules and regulations authorized by the town council.

(9) An organization may enter into any contract with any individual, firm, or corporation to have the individual or entity operate bingo games or concessions on behalf of the organization. No organization shall pay consulting fees to any individual or entity for any services performed in relation to the operation or conduct of a bingo game.

(10) A licensed bingo organization shall not lend its name or allow its identity to be used by another person or entity in the operating or advertising of a bingo game in which the organization is not directly and solely operating the bingo game.

(11) Prizes given by any organization for the playing of bingo games shall not exceed the cash amount or gifts of equivalent value set by regulations.

(b) The town council may provide for the implementation of this amendment by the adoption of any resolution or ordinance.

(c) The provisions of this amendment are complementary and supplemental to any amendment heretofore ratified authorizing the operation of bingo games in the Town of White Hall in Lowndes County.

(d) Any person who violates the regulations provided under the provisions of this amendment shall be guilty of a Class C misdemeanor upon the first conviction under this amendment and any subsequent violation shall be a Class A misdemeanor.

Section 2. An election upon the proposed amendment shall be held in accordance with Amendment 555 to the Constitution of Alabama of 1901, now appearing as Section 284.01 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 the Constitution of Alabama of 1901, relating to the Town of White Hall and Lowndes County, proposing an amendment to the Constitution of Alabama of 1901, to authorize the operation of electronic bingo games by organizations for lawful purposes as authorized by the Whitehall Town Council and provide that such bingo may be played on any 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 operated by any Native American tribe in Alabama; and to levy a state gross receipts tax and a county gross receipts tax on electronic bingo gaming; levy a tax on vendors of bingo gaming equipment; provide for the administration of electronic bingo by the Town Council of White Hall; provide for the allocation of the gaming tax proceeds to the State of Alabama and Lowndes County; and provide for the distribution of the local gaming tax proceeds by the Lowndes County Commission.

"Proposed by Act ________."

This description shall be followed by the following language:

"Yes ( ) No ( )."

Constitutional Amendments

Gambling

Bingo

White Hall

Lowndes County

Counties