Alabama 2022 Regular Session

Alabama House Bill HB502 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 HB502
2	2	2 218847-1
3	3	3 By Representatives Brown (C), Marques, Sorrells, Stringer,
4	4	4 Isbell, Faust, Almond, Oliver, Wilcox, Stadthagen, Wood (D),
5	5	5 Lipscomb, Hurst and Moore (P)
6	6	6 RFD: Economic Development and Tourism
7	7	7 First Read: 15-MAR-22
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9	9	Page 0 1 218847-1:n:03/15/2022:CMH/bm LSA2022-984
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15	15	7
16	16	8 SYNOPSIS: This bill would implement the constitutional
17	17	9 amendment proposed in House Bill __ of the 2022
18	18	10 Regular Session, which establishes the Alabama
19	19	11 Education Lottery under the regulation of the
20	20	12 Alabama Education Lottery Commission.
21	21	13 This bill would further provide for the
22	22	14 powers, membership, and duties of the commission.
23	23	15 This bill would create the Enforcement
24	24	16 Division within the commission and provide for its
25	25	17 powers and duties.
26	26	18 This bill would establish the Alabama
27	27	19 Education Lottery Trust Fund and would provide for
28	28	20 the administration and distribution of the funds
29	29	21 therein.
30	30	22 This bill would provide for the issuance of
31	31	23 lottery retailer licenses.
32	32	24 This bill would authorize the commission to
33	33	25 assess civil penalties for violations and would
34	34	26 provide a process for hearings and appeals of a
35	35	27 violation.
36	36	Page 1 1 This bill would provide for the disposition
37	37	2 of proceeds from the Alabama Education Lottery
38	38	3 Trust Fund, including establishing scholarship
39	39	4 programs to be administered by the Alabama
40	40	5 Commission on Higher Education, and would provide
41	41	6 for the implementation and administration of those
42	42	7 programs.
43	43	8 This bill would provide criminal penalties
44	44	9 for certain violations.
45	45	10 This bill would also levy a state tax on net
46	46	11 lottery revenues and would provide for the
47	47	12 distribution of license fees and tax proceeds.
48	48	13 Amendment 621 of the Constitution of Alabama
49	49	14 of 1901, as amended by Amendment 890, now appearing
50	50	15 as Section 111.05 of the Official Recompilation of
51	51	16 the Constitution of Alabama of 1901, as amended,
52	52	17 prohibits a general law whose purpose or effect
53	53	18 would be to require a new or increased expenditure
54	54	19 of local funds from becoming effective with regard
55	55	20 to a local governmental entity without enactment by
56	56	21 a 2/3 vote unless: it comes within one of a number
57	57	22 of specified exceptions; it is approved by the
58	58	23 affected entity; or the Legislature appropriates
59	59	24 funds, or provides a local source of revenue, to
60	60	25 the entity for the purpose.
61	61	26 The purpose or effect of this bill would be
62	62	27 to require a new or increased expenditure of local
63	63	Page 2 1 funds within the meaning of the amendment. However,
64	64	2 the bill does not require approval of a local
65	65	3 governmental entity or enactment by a 2/3 vote to
66	66	4 become effective because it comes within one of the
67	67	5 specified exceptions contained in the amendment.
68	68	6
69	69	7 A BILL
70	70	8 TO BE ENTITLED
71	71	9 AN ACT
72	72	10
73	73	11 Relating to the Alabama Education Lottery
74	74	12 Commission; to add Chapter 30 to Title 41 of the Code of
75	75	13 Alabama 1975, to provide for the powers, membership, and
76	76	14 duties of the Alabama Education Lottery Commission; to provide
77	77	15 for the personnel of the commission; to create an enforcement
78	78	16 division within the commission; to provide for representation
79	79	17 of the commission by the Attorney General; to provide for the
80	80	18 licensure of lottery ticket retailers and the regulation
81	81	19 thereof; to provide certain license fees and the distribution
82	82	20 of the fees; to provide for the assessment of civil penalties;
83	83	21 to provide for criminal penalties for certain violations; to
84	84	22 provide for a hearing and appeals process; to provide for the
85	85	23 licensure and regulation of lottery game activities; to
86	86	24 provide rulemaking authority; to provide for certain reporting
87	87	25 requirements by the commission; to levy a state tax on lottery
88	88	26 revenues and provide for the distribution thereof; to
89	89	27 establish the Alabama Education Lottery Trust Fund; to
90	90	Page 3 1 establish scholarship programs to be administered by the
91	91	2 Alabama Commission on Higher Education; to provide for the
92	92	3 implementation and administration of those programs; and in
93	93	4 connection therewith would have as its purpose or effect the
94	94	5 requirement of a new or increased expenditure of local funds
95	95	6 within the meaning of Amendment 621 of the Constitution of
96	96	7 Alabama of 1901, as amended by Amendment 890, now appearing as
97	97	8 Section 111.05 of the Official Recompilation of the
98	98	9 Constitution of Alabama of 1901, as amended.
99	99	10 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
100	100	11 Section 1. Chapter 30 is added to Title 41 of the
101	101	12 Code of Alabama 1975, to read as follows:
102	102	13 Chapter 30. Alabama Education Lottery Commission.
103	103	14 §41-30-1. Definitions.
104	104	15 For the purposes of this chapter, the following
105	105	16 words shall have the following meanings:
106	106	17 (1) ACHE. The Alabama Commission on Higher
107	107	18 Education.
108	108	19 (2) COMMISSION. The Alabama Education Lottery
109	109	20 Commission created by the proposed House Bill __ of the 2022
110	110	21 Regular Session and further provided for in this chapter.
111	111	22 (3) DIRECTOR OF ENFORCEMENT. The Director of the
112	112	23 Enforcement Division.
113	113	24 (4) ELIGIBLE HIGH SCHOOL. A program of secondary
114	114	25 education that is administered by any of the following:
115	115	26 a. An Alabama public secondary school.
116	116	Page 4 1 b. An Alabama nonpublic secondary school subject to
117	117	2 the requirements of Section 16-1-11.3.
118	118	3 c. An Alabama private tutor subject to the
119	119	4 requirements of Section 16-28-5.
120	120	5 d. An Alabama public charter school as defined in
121	121	6 Section 16-6F-4.
122	122	7 e. A secondary school operated by the United States
123	123	8 Department of Defense on a military base that is located in
124	124	9 whole or in part in this state.
125	125	10 f. An out-of-state public secondary school located
126	126	11 in a county bordering this state that residents of this state
127	127	12 are authorized to attend.
128	128	13 g. An out-of-state boarding school attended by a
129	129	14 bona fide resident of this state that is accredited by (i) a
130	130	15 regional accrediting association or (ii) is a member of the
131	131	16 National Association of Independent Schools Commission on
132	132	17 Accreditation.
133	133	18 (5) ELIGIBLE POSTSECONDARY INSTITUTION. A
134	134	19 state-supported institution of higher education or a private
135	135	20 nonprofit institution of higher education that satisfies all
136	136	21 of the following requirements:
137	137	22 a. It is located in Alabama.
138	138	23 b. It is accredited.
139	139	24 c. It is eligible to receive Title IV federal
140	140	25 student aid program funds.
141	141	26 (6) ELIGIBLE POSTSECONDARY PROGRAM. With respect to
142	142	27 the Alabama GRADs Two-year College and Workforce Development
143	143	Page 5 1 Scholarship Program, a curriculum of courses leading to a
144	144	2 certificate, diploma, or associate degree at an eligible
145	145	3 postsecondary institution. With respect to the Alabama GRADs
146	146	4 Four-year College Scholarship Program, a curriculum of courses
147	147	5 leading to a bachelor's degree or the equivalent at an
148	148	6 eligible postsecondary institution. Courses taken at a
149	149	7 postsecondary institution prior to admission in, or that
150	150	8 fulfill prerequisite requirements for, an eligible
151	151	9 postsecondary program shall not be considered part of the
152	152	10 eligible postsecondary program.
153	153	11 (7) ELIGIBLE RECIPIENT. A resident of Alabama who
154	154	12 satisfies the requirements for one of the programs established
155	155	13 by this chapter and who is found to be eligible pursuant to
156	156	14 rules adopted by ACHE.
157	157	15 (8) ENFORCEMENT DIVISION. The Enforcement Division
158	158	16 established by this chapter.
159	159	17 (9) EXECUTIVE DIRECTOR. The Executive Director of
160	160	18 the Alabama Education Lottery Commission.
161	161	19 (10) FINANCIAL AID YEAR. The fall, spring, and
162	162	20 summer semesters beginning in one calendar year and ending in
163	163	21 the next.
164	164	22 (11) FISCAL YEAR. The fiscal year of the State of
165	165	23 Alabama that begins on October 1 and ends on September 30.
166	166	24 (12) FULL-TIME. Enrollment in a minimum of 12
167	167	25 semester hours.
168	168	26 (13) GIFT AID. Scholarships and grants from any
169	169	27 source that do not require repayment, including funds provided
170	170	Page 6 1 through the federal Pell grant program. Student loans and
171	171	2 work-study awards shall not be considered gift aid.
172	172	3 (14) LOTTERY GAMES. Any lottery approved by the
173	173	4 commission. The term may include, but is not limited to, a
174	174	5 state lottery, a multistate lottery, instant tickets,
175	175	6 scratch-off tickets, or any other draw-based lottery when
176	176	7 approved by the commission.
177	177	8 (15) LOTTERY RETAILER LICENSE. A license issued by
178	178	9 the commission to authorize lottery tickets to be sold on the
179	179	10 premises of the location.
180	180	11 (17) RESIDENT OF ALABAMA. A resident of Alabama as
181	181	12 established by a current, valid Alabama driver license or
182	182	13 nondriver identification card; a current, valid Alabama
183	183	14 vehicle registration; or a current, valid Alabama voter
184	184	15 registration card.
185	185	16 (18) RESIDENT STUDENT. A student classified as a
186	186	17 resident student for purposes of admission, or application for
187	187	18 admission, to a postsecondary institution, in accordance with
188	188	19 Chapter 64, Title 16.
189	189	20 (19) SEMESTER. Fall, spring, or summer semester at
190	190	21 an eligible postsecondary institution, if the institution is
191	191	22 on a semester system, or the equivalent, if the institution is
192	192	23 on a system other than a semester system.
193	193	24 §41-30-2. Alabama Education Lottery Commission
194	194	25 created.
195	195	26 The Alabama Education Lottery Commission is created
196	196	27 as a state agency to regulate the conduct of all lottery games
197	197	Page 7 1 conducted within this state, as authorized by the Constitution
198	198	2 of Alabama of 1901, and this chapter. The commission shall be
199	199	3 located in Montgomery County.
200	200	4 §41-30-3. Commission board of directors.
201	201	5 (a) The commission shall be governed by a board of
202	202	6 directors, as constituted pursuant to House Bill __ of the
203	203	7 2022 Regular Session.
204	204	8 (b) Members of the board shall be subject to the
205	205	9 Ethics Law, Section 36-25-1, et seq.
206	206	10 (c)(1) The board shall meet at least quarterly and
207	207	11 at other times as called by the chair or a majority of the
208	208	12 board.
209	209	13 (2) Members of the board may participate in a
210	210	14 meeting of the board in person, by means of telephone
211	211	15 conference, video conference, or other similar communications
212	212	16 equipment so that all individuals participating in the meeting
213	213	17 may hear each other at the same time. Participation by any
214	214	18 such means shall constitute presence in person at a meeting
215	215	19 for all purposes, including for purposes of establishing a
216	216	20 quorum, and the affirmative vote of a majority of the members
217	217	21 in attendance shall be necessary for any action of the board.
218	218	22 (3) Meetings of the board shall be subject to the
219	219	23 Alabama Open Meetings Act.
220	220	24 (d)(1) A majority of board members shall constitute
221	221	25 a quorum for the transaction of any business and for the
222	222	26 exercise of any power or function of the board.
223	223	Page 8 1 (2) Action may be taken on motions and resolutions
224	224	2 adopted by the board at any meeting of the board by an
225	225	3 affirmative vote of a majority of present and voting board
226	226	4 members, a quorum being present.
227	227	5 (e) No vacancy in the membership of the board shall
228	228	6 impair the right of the members to exercise all the powers and
229	229	7 perform all the duties of the board.
230	230	8 §41-30-4. Compensation of board members.
231	231	9 Members of the board of directors of the commission
232	232	10 shall receive compensation equal to that of a member of the
233	233	11 Legislature, including per diem and travel allowances as
234	234	12 provided for state employees.
235	235	13 §41-30-5. Executive director and deputy director of
236	236	14 the commission.
237	237	15 (a)(1) The board of directors of the commission
238	238	16 shall appoint an executive director who shall direct the
239	239	17 day-to-day operations and management of the commission and
240	240	18 shall be vested with all powers and duties as specified by the
241	241	19 commission and by law. The executive director shall serve at
242	242	20 the pleasure of the board.
243	243	21 (2) The executive director shall meet all of the
244	244	22 following qualifications:
245	245	23 a. Shall be an attorney licensed to practice law in
246	246	24 this state and be a person of good moral character.
247	247	25 b. May not have any felony convictions or
248	248	26 convictions for property offenses, fraud, or offenses
249	249	27 involving moral turpitude.
250	250	Page 9 1 c. May not be an officer of a political party or
251	251	2 serving in an official position in a political party.
252	252	3 d. May not be a public official.
253	253	4 e. May not be actively engaged in the business of a
254	254	5 lottery retailer licensee.
255	255	6 f. May not be a supplier of devices or equipment
256	256	7 used in the play of lottery games.
257	257	8 g. Possess any other qualifications adopted by the
258	258	9 commission by rule.
259	259	10 (3) The executive director shall devote his or her
260	260	11 entire time and attention to the duties required under this
261	261	12 act and the business of the commission and may not pursue any
262	262	13 other business or occupation or hold any other office of
263	263	14 profit.
264	264	15 (4) The executive director shall receive an annual
265	265	16 salary determined by the commission.
266	266	17 (b)(1) With the approval of the board, the executive
267	267	18 director may appoint a deputy director who shall perform any
268	268	19 and all duties designated by the executive director.
269	269	20 (2) The deputy director shall receive an annual
270	270	21 salary determined by the commission.
271	271	22 §41-30-6. Powers and duties of the executive
272	272	23 director.
273	273	24 The executive director shall direct and supervise
274	274	25 all administrative and technical activities in accordance with
275	275	26 this chapter and with the rules, policies, and procedures
276	276	Page 10 1 adopted by the commission. The duties of the executive
277	277	2 director shall include all of the following:
278	278	3 (1) Sue and be sued on behalf of the commission.
279	279	4 (2) Acquire real property in accordance with
280	280	5 existing law and make improvements thereon on behalf of the
281	281	6 commission.
282	282	7 (3) Make, execute, and effectuate any and all
283	283	8 agreements or contracts, including contracts for the purchase
284	284	9 of goods and services as are necessary for the conduct of the
285	285	10 business of the commission.
286	286	11 (4) Employ and direct such personnel as deemed
287	287	12 necessary.
288	288	13 (5) Employ by contract and compensate persons and
289	289	14 firms as deemed necessary for the operation and administration
290	290	15 of the commission.
291	291	16 (6) Prepare a budget for the approval of the
292	292	17 commission.
293	293	18 (7) Report quarterly to the Governor, the
294	294	19 Legislative Council, and the commission a full and complete
295	295	20 statement of revenues and expenses for the preceding quarter.
296	296	21 (8) Perform other duties as necessary to implement
297	297	22 and administer this chapter.
298	298	23 §41-30-7. Duties of the commission.
299	299	24 The commission shall adopt, amend, or repeal rules
300	300	25 in accordance with the Alabama Administrative Procedure Act,
301	301	26 and shall have all of the following powers and duties:
302	302	Page 11 1 (1) To issue subpoenas and compel the production of
303	303	2 documents or items and the attendance of witnesses, to
304	304	3 administer oaths, to require testimony under oath, and to
305	305	4 enforce its orders.
306	306	5 (2) To appoint impartial hearing examiners who may
307	307	6 administer oaths and receive evidence and testimony under oath
308	308	7 and make recommendations to the commission.
309	309	8 (3) To demand access to and inspect, examine,
310	310	9 photocopy, and audit all papers, books, and records necessary
311	311	10 to carry out its duties.
312	312	11 (4) To impose reasonable civil fines and penalties
313	313	12 on any individual or entity for violations of this chapter or
314	314	13 violations of rules adopted by the commission.
315	315	14 (5) To provide for the issuance of licenses for the
316	316	15 operation of lottery activities and to provide for the
317	317	16 renewal, modification, extension, suspension, revocation,
318	318	17 transfer, or forfeiture of a license.
319	319	18 (6) To regulate and supervise the conduct and
320	320	19 operation of the state lottery.
321	321	20 (7) To review all lottery activities conducted and
322	322	21 operated within the state.
323	323	22 (10) To adopt rules limiting access to lottery games
324	324	23 by minors and other susceptible individuals.
325	325	24 §41-30-8. Audits and reports.
326	326	25 (a) To ensure the financial integrity of the
327	327	26 operation of lottery retailers in this state, the commission
328	328	27 shall do all of the following:
329	329	Page 12 1 (1) Submit annual reports to the Governor and the
330	330	2 Legislative Council disclosing the total lottery revenues,
331	331	3 operating and administrative expenses of the commission,
332	332	4 information relating to the number of licenses issued,
333	333	5 suspended, revoked, or transferred during the reporting
334	334	6 period. The annual report shall additionally describe the
335	335	7 organizational structure of the commission and summarize the
336	336	8 functions performed by each organizational division within the
337	337	9 commission.
338	338	10 (2) Adopt a system of internal audits and audits of
339	339	11 licensed operators.
340	340	12 (3) Contract with a certified public accountant or
341	341	13 firm for an annual financial audit of the commission. The
342	342	14 certified public accountant or firm shall have no financial
343	343	15 interest in any vendor with whom the commission is under
344	344	16 contract. The certified public accountant or firm shall
345	345	17 present an audit report not later than four months after the
346	346	18 end of the fiscal year. The certified public accountant or
347	347	19 firm shall evaluate the internal auditing controls in effect
348	348	20 during the audit period. The cost of this annual financial
349	349	21 audit shall be an operating expense of the commission.
350	350	22 (b) The Department of Examiners of Public Accounts
351	351	23 may perform an audit or examination of the commission.
352	352	24 §41-30-9. Employees of the commission.
353	353	25 (a)(1) An employee of the commission may not have a
354	354	26 financial interest in any vendor doing business or proposing
355	355	Page 13 1 to do business with the commission or a lottery retailer
356	356	2 licensee.
357	357	3 (2) An employee of the commission with
358	358	4 decision-making authority may not participate in any decision
359	359	5 involving a licensed operator with whom the employee has a
360	360	6 financial interest.
361	361	7 (b) An employee of the commission who leaves the
362	362	8 employment of the commission may not represent any vendor,
363	363	9 management services contract provider, or licensed operator
364	364	10 before the commission for a period of two years following
365	365	11 termination of employment with the commission.
366	366	12 (c) An applicant for employment with the commission
367	367	13 shall submit to the executive director, on a form sworn to by
368	368	14 the applicant, his or her name, date of birth, Social Security
369	369	15 number, and two complete sets of fingerprints for completion
370	370	16 of a criminal history background check through the Enforcement
371	371	17 Division. Costs associated with conducting a criminal history
372	372	18 background check may be paid by the commission.
373	373	19 (d) An individual who has been convicted of a
374	374	20 felony, a crime involving moral turpitude, or a crime
375	375	21 involving unlawful gambling may not be employed by the
376	376	22 commission.
377	377	23 (e) The commission shall bond commission employees
378	378	24 with access to commission funds in such an amount as provided
379	379	25 by the commission and may bond other employees as deemed
380	380	26 necessary.
381	381	Page 14 1 (f) Employees of the commission shall not be state
382	382	2 Merit System employees, but shall be entitled to insurance,
383	383	3 retirement, and other state employees' benefits.
384	384	4 (g) Employees of the commission shall be subject to
385	385	5 the Ethics Laws, Sections 36-25-1, et seq.
386	386	6 (a) Any employee of the commission may not purchase
387	387	7 lottery tickets or otherwise engage in lottery activity at any
388	388	8 lottery retailer.
389	389	9 (b) An employee of a lottery retailer licensee may
390	390	10 not purchase lottery tickets from any lottery retailer
391	391	11 licensee for whom he or she is employed.
392	392	12 §41-30-11. Records of the commission.
393	393	13 (a) Except as provided in subsection (b), records of
394	394	14 the commission shall be public records for purposes of Section
395	395	15 36-12-40.
396	396	16 (b) The commission may determine which information
397	397	17 and records relating to its operations are confidential and
398	398	18 not subject to public disclosure. The information includes
399	399	19 trade secrets; security measures, systems, or procedures;
400	400	20 security reports; employee personnel information unrelated to
401	401	21 compensation, duties, qualifications, or responsibilities; and
402	402	22 information obtained pursuant to investigations which is
403	403	23 otherwise confidential. Information deemed confidential
404	404	24 pursuant to this section shall be exempt from public
405	405	25 disclosure.
406	406	26 §41-30-12. Minority business participation.
407	407	Page 15 1 It is the intent of the Legislature that the
408	408	2 commission encourage participation by minority businesses.
409	409	3 Accordingly, the commission shall adopt a plan that achieves
410	410	4 to the greatest extent possible a level of participation by
411	411	5 minority businesses taking into account the total number of
412	412	6 all licensed operators. The commission may administer training
413	413	7 programs and other educational activities to enable eligible
414	414	8 minority businesses to compete for licenses on an equal basis.
415	415	9 The commission shall monitor the results of minority business
416	416	10 participation and shall report the results of minority
417	417	11 business participation to the Governor and the Legislature at
418	418	12 least on an annual basis.
419	419	13 §41-30-13. Enforcement Division established.
420	420	14 The Enforcement Division within the commission is
421	421	15 established. The enforcement division shall have independent
422	422	16 and primary authority and jurisdiction to investigate
423	423	17 violations of lottery laws and rules and enforce the general
424	424	18 laws and rules of the commission. The enforcement division
425	425	19 shall have all power and authority to take any means necessary
426	426	20 to aid the commission in the administration and enforcement of
427	427	21 lottery laws and rules of the commission.
428	428	22 §41-30-14. Director of the Enforcement Division.
429	429	23 (a)(1) The position of Director of the Enforcement
430	430	24 Division is created. The director of enforcement shall be
431	431	25 appointed by the board of directors of the commission and
432	432	26 shall hold office at the pleasure of the board.
433	433	Page 16 1 (2) The director of enforcement shall have overall
434	434	2 supervision and management of the functions and duties of the
435	435	3 Enforcement Division, subject to approval of the commission,
436	436	4 including the power to change the working title of any
437	437	5 position in the enforcement division or organize the
438	438	6 enforcement division in a manner to efficiently administer the
439	439	7 duties of the enforcement division.
440	440	8 (b) The director of enforcement shall satisfy all of
441	441	9 the following qualifications:
442	442	10 (1) Be certified by the Alabama Peace Officers'
443	443	11 Standards and Training Commission or become certified within
444	444	12 one year of appointment.
445	445	13 (2) Have a bachelor's or equivalent degree from an
446	446	14 accredited institution of higher education.
447	447	15 (3) Have an extensive law enforcement background of
448	448	16 at least 10 years, including executive level experience with
449	449	17 specific participation in complex investigations of financial
450	450	18 crimes, conspiracy, racketeering, and other related crimes.
451	451	19 (4) Have general knowledge and experience with
452	452	20 criminal investigations.
453	453	21 (c) The salary of the director of enforcement shall
454	454	22 be set by the commission. The director of enforcement shall be
455	455	23 employed in the exempt service.
456	456	24 (d) For purposes of the immunity afforded in
457	457	25 Section 6-5-338, the director of enforcement shall be deemed a
458	458	26 law enforcement officer.
459	459	Page 17 1 (e) The director of enforcement shall have arrest
460	460	2 powers.
461	461	3 (f) The director of enforcement may issue subpoenas
462	462	4 and compel the production of documents or items.
463	463	5 (g) The director of enforcement shall establish
464	464	6 operational policy and procedures for the administration of
465	465	7 the duties of the enforcement division.
466	466	8 §41-30-15. Assistant Director of the Enforcement
467	467	9 Division.
468	468	10 (a) The director of enforcement may appoint an
469	469	11 assistant director of enforcement and may delegate any of his
470	470	12 or her duties to the assistant director of enforcement. The
471	471	13 assistant director of enforcement shall serve at the pleasure
472	472	14 of the director of enforcement.
473	473	15 (b) The assistant director of enforcement shall
474	474	16 satisfy the following qualifications:
475	475	17 (1) Be certified by the Alabama Peace Officers'
476	476	18 Standards and Training Commission or become certified within
477	477	19 one year of appointment.
478	478	20 (2) Have an extensive law enforcement background of
479	479	21 at least five years, including specific participation in
480	480	22 complex investigations of financial crimes, conspiracy,
481	481	23 racketeering, and other related crimes.
482	482	24 (3) Have general knowledge or experience with
483	483	25 criminal investigations.
484	484	26 (c) The salary of the assistant director of
485	485	27 enforcement shall be set by the director of enforcement. The
486	486	Page 18 1 assistant director of enforcement shall be employed in the
487	487	2 exempt service.
488	488	3 (d) The assistant director of enforcement shall have
489	489	4 arrest powers.
490	490	5 (e) For purposes of the immunity afforded in Section
491	491	6 6-5-338, the assistant director of enforcement shall be deemed
492	492	7 a law enforcement officer.
493	493	8 §41-30-16. Personnel of the Enforcement Division.
494	494	9 (a) The Director of the Enforcement Division shall
495	495	10 hire all personnel necessary for the operation of the
496	496	11 enforcement division subject to qualifications set by the
497	497	12 director of enforcement, with the approval of the commission.
498	498	13 Personnel may include, but not be limited to, the following:
499	499	14 (1) Investigators.
500	500	15 (2) Auditors and forensic accountants.
501	501	16 (3) Compliance officers.
502	502	17 (4) Investigative technology experts.
503	503	18 (5) Administrative staff.
504	504	19 (6) Any other staff necessary for the operation of
505	505	20 the enforcement division.
506	506	21 (b) The enforcement division may employ consultants
507	507	22 to render professional services, including, but not limited
508	508	23 to, reviewing business records, providing expert testimony in
509	509	24 contested cases, assisting in audits performed by the
510	510	25 enforcement division, and conducting technology reviews and
511	511	26 implementation, to aid the commission in carrying out its
512	512	27 duties under this chapter. Consultants shall be compensated
513	513	Page 19 1 for professional services at rates established by the
514	514	2 commission.
515	515	3 (c)(1) The personnel of the enforcement division
516	516	4 shall be employed in the exempt service and shall serve at the
517	517	5 pleasure of the director of enforcement.
518	518	6 (2) Notwithstanding any other provision of local or
519	519	7 general law, a retired state or local law enforcement officer
520	520	8 may be employed by the enforcement division without suspension
521	521	9 or modification of his or her state or local retirement
522	522	10 benefits.
523	523	11 (d) The personnel employed by the enforcement
524	524	12 division who are certified by the Alabama Peace Officers'
525	525	13 Standards and Training Commission shall have arrest powers.
526	526	14 (e) For purposes of the Alabama Criminal Justice
527	527	15 Information Center (ACJIC) and the National Crime Information
528	528	16 Center (NCIC), personnel of the enforcement division shall be
529	529	17 considered an originating agency identifier for the purposes
530	530	18 of criminal background checks and access to criminal history
531	531	19 data.
532	532	20 (f) For purposes of the immunity afforded in Section
533	533	21 6-5-338, personnel of the enforcement division certified by
534	534	22 the Alabama Peace Officers' Standards and Training Commission
535	535	23 shall be deemed law enforcement officers.
536	536	24 (g) Personnel of the enforcement division shall
537	537	25 comply with all initial and continuing education requirements
538	538	26 in Section 41-30-18.
539	539	Page 20 1 §41-30-17. Duties and powers of the Enforcement
540	540	2 Division.
541	541	3 (a) For the protection of the public and in the
542	542	4 public interest in accordance with the policy of this state,
543	543	5 the Director of the Enforcement Division, personnel of the
544	544	6 enforcement division, or any individual operating under the
545	545	7 authority of the enforcement division or the commission, may
546	546	8 do any of the following:
547	547	9 (1) Inspect and examine licensed locations or the
548	548	10 premises of where devices or equipment associated with lottery
549	549	11 games are manufactured, sold, or distributed.
550	550	12 (2) Inspect all equipment and supplies on the
551	551	13 premises of a licensed location.
552	552	14 (3) Enforce compliance with this chapter and rules
553	553	15 of the commission.
554	554	16 (4) Enforce all laws of this state, including those
555	555	17 not relating to lottery activities.
556	556	18 (5) Have primary jurisdiction over any crime that
557	557	19 occurs on the property of a licensed operator at a licensed
558	558	20 location.
559	559	21 (6) Summarily seize and remove from the premises of
560	560	22 a licensed location and impound any equipment or supplies for
561	561	23 the purpose of examination and inspection.
562	562	24 (7) Make arrests of violators of laws of this state
563	563	25 and rules of the commission.
564	564	26 (8) Demand access to and inspect, examine,
565	565	27 photocopy, and audit all papers, books, and records of
566	566	Page 21 1 applicants for licensure, licensed operators, and management
567	567	2 services providers on their premises or elsewhere as
568	568	3 practicable, in the presence of the licensed operator or an
569	569	4 agent relating to the proceeds generated by any activities
570	570	5 regulated by the commission and all other matters affecting
571	571	6 the enforcement of this chapter or rules adopted thereunder.
572	572	7 (9) Make determinations and impose and enforce civil
573	573	8 penalties for violations of this chapter and rules of the
574	574	9 commission.
575	575	10 (10) Conduct investigations of applicants for
576	576	11 licenses to establish and assess suitability compliance and
577	577	12 related issues as provided in Section 41-30-22.
578	578	13 (11) Take any other action deemed necessary and
579	579	14 appropriate by the enforcement division in the administration
580	580	15 of its duties under this chapter.
581	581	16 (b) No less than on an annual basis, and upon
582	582	17 request of the commission or the Legislative Council, the
583	583	18 enforcement division shall provide to the commission and
584	584	19 Legislative Council reports of all investigative and
585	585	20 enforcement activity conducted by the division.
586	586	21 §41-30-18. Confidentiality of records.
587	587	22 All of the following shall be privileged and
588	588	23 confidential, unless presented as evidence at a public hearing
589	589	24 of the commission:
590	590	25 (1) All reports of investigations by the enforcement
591	591	26 division.
592	592	Page 22 1 (2) Documents subpoenaed by the commission in
593	593	2 furtherance of an investigation or other activity of the
594	594	3 enforcement division.
595	595	4 (3) Reports of any investigative action by the
596	596	5 enforcement division.
597	597	6 (4) Memoranda of the personnel of the enforcement
598	598	7 division relating to an investigation.
599	599	8 (5) Statements of persons interviewed by the
600	600	9 enforcement division.
601	601	10 (6) All information, interviews, reports,
602	602	11 statements, or memoranda of any nature furnished to the
603	603	12 enforcement division.
604	604	13 (7) Any findings, conclusions, or recommendations
605	605	14 resulting from proceedings of the enforcement division.
606	606	15 (8) All information containing proprietary trade
607	607	16 secret information.
608	608	17 §41-30-19. Assistance by the Attorney General and
609	609	18 district attorneys.
610	610	19 The enforcement division may request assistance from
611	611	20 the Attorney General, district attorneys, or other prosecuting
612	612	21 attorneys of this state. The Attorney General, district
613	613	22 attorneys, or other prosecuting attorneys, upon request, shall
614	614	23 assist in any action for injunction or any prosecution based
615	615	24 on the violation of this chapter or rule of the commission.
616	616	25 §41-30-20. Suitability requirements.
617	617	26 (a) The commission may not issue a license to an
618	618	27 applicant as required under this chapter until the applicant,
619	619	Page 23 1 including any individual or entity who has or controls,
620	620	2 directly or indirectly, 10 percent or more ownership, income,
621	621	3 or profit interest in an applicant that has or will apply for
622	622	4 a license in accordance with this chapter, has demonstrated
623	623	5 suitability for licensure. For purposes of this section,
624	624	6 "suitability" means consideration of all the following:
625	625	7 (1) The moral character, honesty, and integrity of
626	626	8 the applicant.
627	627	9 (2) The reputation, experience, and financial
628	628	10 integrity of the applicant.
629	629	11 (3) The financial ability of the applicant to
630	630	12 purchase and maintain adequate liability and casualty
631	631	13 insurance and to provide an adequate surety bond as required
632	632	14 by this chapter.
633	633	15 (4) The past and present compliance of the
634	634	16 applicant, including whether the applicant has a history of
635	635	17 noncompliance with the licensing requirements of any other
636	636	18 jurisdiction.
637	637	19 (5) Whether the applicant has filed, or had filed
638	638	20 against it, a proceeding for bankruptcy or has ever been
639	639	21 involved in any formal process to adjust, defer, suspend, or
640	640	22 otherwise work out the payment of any debt.
641	641	23 (6) Whether the operator is or has been a defendant
642	642	24 in litigation involving its business practices.
643	643	25 (7) Prior activities, arrests, or criminal records,
644	644	26 if any, reputation, habits, and associations of an applicant
645	645	27 that may pose a threat to the public interest of this state or
646	646	Page 24 1 to the effective regulation of the state lottery, and that may
647	647	2 create or enhance the dangers of unsuitable, unfair, or
648	648	3 unlawful practices, methods, and operations in the activities
649	649	4 authorized by this chapter and the financial arrangements and
650	650	5 activities incidental to the activities authorized by this
651	651	6 chapter.
652	652	7 (8) The likelihood of the applicant to conduct
653	653	8 business as authorized by this chapter in complete compliance
654	654	9 with this chapter.
655	655	10 (9) Whether the applicant owes the state, county, or
656	656	11 a municipality any delinquent sales taxes, penalties, or
657	657	12 interest, excluding items under formal appeal or protest as
658	658	13 provided by law.
659	659	14 (10) Any other factor or consideration deemed
660	660	15 relevant by the commission.
661	661	16 (b) Evidence of, or relating to, an arrest, summons,
662	662	17 charge, or indictment of an applicant, or the dismissal
663	663	18 thereof, shall be considered by the commission, where
664	664	19 applicable, even if the arrest, summons, charge, or indictment
665	665	20 results in acquittal, deferred adjudication, such as
666	666	21 participation in a pretrial diversion program, probation,
667	667	22 parole, or pardon.
668	668	23 (c)(1) All applicants for a license under this
669	669	24 chapter shall bear the obligation to establish their
670	670	25 suitability for a license under this section.
671	671	26 (2) An applicant for a license under this chapter
672	672	27 shall cooperate with the commission in providing information
673	673	Page 25 1 and documentation as requested by the commission. The
674	674	2 commission shall conduct its suitability analysis of an
675	675	3 applicant and report its finding of suitability to the
676	676	4 commission in writing detailing the information supporting its
677	677	5 determination.
678	678	6 §41-30-21. Licenses required.
679	679	7 Upon passage and ratification of House Bill __ of
680	680	8 the 2022 Regular Session, lottery activities in every form may
681	681	9 only be operated by a person licensed by the commission. The
682	682	10 commission may adopt rules prescribing the information an
683	683	11 applicant for licensure is required to submit to the
684	684	12 commission prior to the issuance of a license under this
685	685	13 chapter.
686	686	14 §41-30-22. Transfer of a license.
687	687	15 A license issued under this chapter may only be
688	688	16 transferred as provided by rule of the commission.
689	689	17 §41-30-23. Civil penalties.
690	690	18 (a) In addition to any criminal penalty provided by
691	691	19 law, the commission may assess a civil penalty, not to exceed
692	692	20 one hundred thousand dollars ($100,000), on any person who
693	693	21 violates any provision of this chapter or a rule adopted by
694	694	22 the commission, whether or not the person is licensed under
695	695	23 this chapter.
696	696	24 (b) The assessment of a civil penalty may be
697	697	25 appealed by an aggrieved party as provided in this chapter or
698	698	26 commission rule.
699	699	27 §41-30-24. Hearing procedures.
700	700	Page 26 1 (a) Except as otherwise provided by law or rule of
701	701	2 the commission, before the commission may take any adverse
702	702	3 action involving a licensee under this chapter, including the
703	703	4 assessment of a civil penalty under Section 41-30-32, the
704	704	5 commission shall give the person against whom the action is
705	705	6 contemplated an opportunity for a hearing before the
706	706	7 commission or a hearing officer designated by the commission.
707	707	8 (b) At least 30 days prior to any hearing under this
708	708	9 section, the commission shall give notice of the hearing to
709	709	10 the person by certified mail addressed to the last known
710	710	11 address of the person. The person may be represented by legal
711	711	12 counsel.
712	712	13 (c)(1) If a person fails to comply with a subpoena
713	713	14 issued for purposes of this section, on petition of the
714	714	15 commission, the Circuit Court of the Fifteenth Judicial
715	715	16 Circuit may compel obedience to the subpoena.
716	716	17 (2) If, after due notice, the person against whom
717	717	18 the action is contemplated fails or refuses to appear or
718	718	19 provide the item or items for which a subpoena was issued, the
719	719	20 commission or the commission's designated hearing officer may
720	720	21 hear and determine the matter.
721	721	22 (d) Within 30 days of a final order or decision of
722	722	23 the commission in a contested case, any person aggrieved by
723	723	24 the final order or decision may file a petition for appeal in
724	724	25 the Circuit Court of the Fifteenth Judicial Circuit.
725	725	26 §41-30-25. Duties of lottery retailer licensees.
726	726	Page 27 1 A lottery retailer licensee shall do all of the
727	727	2 following:
728	728	3 (1) Promptly report to the commission any facts or
729	729	4 circumstances related to the operation of a lottery retailer
730	730	5 which would constitute a violation of state or federal law.
731	731	6 (2) Conduct all lottery activities and functions in
732	732	7 a manner that does not pose a threat to the public health,
733	733	8 safety, or welfare of the residents of this state and that
734	734	9 does not adversely affect the security or integrity of the
735	735	10 operation of those games in this state.
736	736	11 (3) Hold the commission and this state harmless
737	737	12 from, and defend and pay for the defense of, any and all
738	738	13 claims that may be asserted against a lottery retailer
739	739	14 licensee, the commission, or the state or employees thereof,
740	740	15 arising from the licensee's actions or omission while
741	741	16 conducting any lottery activity.
742	742	17 (4) Assist the commission in regulating the revenue
743	743	18 of lottery activity.
744	744	19 (5) Maintain all records required by the commission.
745	745	20 (6) Upon request by the commission, provide the
746	746	21 commission access to all records and the physical premises
747	747	22 where the licensee's lottery activities occur, for the purpose
748	748	23 of monitoring or inspecting the licensee's activities and
749	749	24 lottery equipment.
750	750	25 (7) Keep current in all payments and obligations to
751	751	26 the commission.
752	752	Page 28 1 (8) Prohibit a person from tampering with or
753	753	2 interfering with the operation of any lottery activity.
754	754	3 (9) Ensure that all lottery activity is in
755	755	4 conformity with specifications and requirements of the
756	756	5 commission.
757	757	6 (10) Install, post, and display conspicuously at
758	758	7 locations within or about the lottery retailer signs and other
759	759	8 promotional material as required by the commission.
760	760	9 §41-30-26. Required reports.
761	761	10 The holder of a lottery retailer license shall
762	762	11 maintain daily records showing the gross receipts and adjusted
763	763	12 gross receipts of the licensee and shall timely file with the
764	764	13 commission any additional reports required by the commission
765	765	14 by rule.
766	766	15 §41-30-27. Lottery games.
767	767	16 (a) The commission shall adopt rules governing the
768	768	17 licensing, administration, and conduct of lottery games and
769	769	18 the retail sale of lottery tickets thereof.
770	770	19 (b) No person other than the holder of a lottery
771	771	20 retailer license may sell lottery tickets in connection with
772	772	21 any lottery game.
773	773	22 (c) License fees for a lottery retailer license
774	774	23 shall be set by the commission. The lottery retailer license
775	775	24 term shall be set by the commission. All license fees shall be
776	776	25 remitted to the State Treasury to the credit of the Alabama
777	777	26 Education Lottery Trust Fund.
778	778	Page 29 1 (d) The commission may not grant a lottery retailer
779	779	2 license until it determines that each person who has control
780	780	3 of the applicant meets all qualifications for licensure as
781	781	4 established by rule of the commission. For purposes of this
782	782	5 subsection, "control of the applicant" means any owner of 10
783	783	6 percent or more of the applicant, its chief executive officer,
784	784	7 and any individual who has ultimate responsibility for the
785	785	8 applicant's operations in this state.
786	786	9 (e) A lottery retailer license authorizes the retail
787	787	10 sale of lottery tickets only at the licensed facility of the
788	788	11 licensee.
789	789	12 (f) A lottery retailer licensee shall submit to the
790	790	13 commission such documentation or information as the commission
791	791	14 may require demonstrating that the licensee continues to meet
792	792	15 the requirements of the law and rules of the commission.
793	793	16 (g) The commission may enter into agreements with
794	794	17 other states and jurisdictions to authorize individuals who
795	795	18 are physically located in a signatory jurisdiction to
796	796	19 participate in lottery games conducted by one or more
797	797	20 operators licensed by the signatory states and jurisdictions.
798	798	21 §41-30-28. Alabama Education Lottery Trust Fund
799	799	22 created; distribution of proceeds.
800	800	23 (a) The Alabama Education Lottery Trust Fund is
801	801	24 created in the State Treasury.
802	802	25 (b)(1) The proceeds from any lottery approved by the
803	803	26 commission shall be applied first to the payment of the
804	804	27 expenses of administering, operating, and regulating the
805	805	Page 30 1 Alabama Education Lottery and any scholarship program created
806	806	2 under Section 41-30-29, including, without limitation, the
807	807	3 payment of all prizes, without any further appropriation
808	808	4 required by law.
809	809	5 (2) The balance of the proceeds after the payments
810	810	6 are applied pursuant to subdivision (1) shall be deposited
811	811	7 into the Alabama Education Lottery Trust Fund.
812	812	8 (c) Remaining proceeds in the fund shall be annually
813	813	9 appropriated by and through an independent supplemental
814	814	10 appropriation bill, as follows:
815	815	11 (1) The first five hundred thousand dollars
816	816	12 ($500,000) for the creation and operation of inpatient,
817	817	13 residential, and outpatient problem gaming treatment centers
818	818	14 and programs.
819	819	15 (2) Seven and one-half percent to the Education
820	820	16 Retirees' Trust Fund created by Act 2021-464 (2021 Regular
821	821	17 Session) to be used to provide retired teachers and education
822	822	18 support staff with periodic bonuses.
823	823	19 (3) Not more than five hundred thousand dollars
824	824	20 ($500,000) for the payment of dues and fees for school-aged
825	825	21 children to attend and participate in agricultural education
826	826	22 programs, including programs by the Future Farmers of America
827	827	23 (FFA) and 4-H organizations.
828	828	24 (4) All remaining proceeds shall be used for the
829	829	25 creation and administration of educational scholarship
830	830	26 programs created under this chapter.
831	831	27 §41-30-29. Program Creation and Administration.
832	832	Page 31 1 (a) There is hereby created the Alabama Graduate
833	833	2 Retention and Development (Alabama GRADs) Two-year College and
834	834	3 Workforce Development Scholarship Program, the Alabama
835	835	4 Graduate Retention and Development (Alabama GRADs) Four-year
836	836	5 College Scholarship Program, and the Alabama Graduate
837	837	6 Retention and Development (Alabama GRADs) Four-year College
838	838	7 Student Loan Repayment Program. The programs shall be
839	839	8 administered by ACHE.
840	840	9 (b) ACHE may adopt rules to establish all of the
841	841	10 following:
842	842	11 (1) Deadlines for applications to each program.
843	843	12 (2) Appeal procedures for the denial or revocation
844	844	13 of any scholarship or loan repayment amount awarded pursuant
845	845	14 to this act
846	846	15 (3) Any other rule necessary to implement and
847	847	16 administer the programs established by this section.
848	848	17 (c) ACHE shall not distribute any award under this
849	849	18 chapter until the amounts in the Alabama Education Lottery
850	850	19 Trust Fund reach the amounts required in House Bill __ of the
851	851	20 2022 Regular Session.
852	852	21 §41-30-30. Alabama GRADs Two-year College and
853	853	22 Workforce Development Scholarship Program - Eligibility.
854	854	23 (a) To be initially eligible for the Alabama GRADs
855	855	24 Two-year College and Workforce Development Scholarship
856	856	25 Program, a student shall:
857	857	26 (1) Satisfy either of the following:
858	858	Page 32 1 a. The student shall be admitted to, and enrolled
859	859	2 full-time, in an eligible postsecondary program within three
860	860	3 years of any of the following:
861	861	4 1. Graduation from an eligible high school.
862	862	5 2. Obtaining a high school equivalency certificate
863	863	6 or diploma; provided, that the student obtains the high school
864	864	7 equivalency certificate or diploma prior to the student
865	865	8 reaching 19 years of age.
866	866	9 3. Graduation from an out-of-state secondary school
867	867	10 operated by the government of the United States accredited by
868	868	11 the appropriate regional accrediting association for the state
869	869	12 in which the school is located, or accredited by an
870	870	13 accrediting association recognized by the foreign nation in
871	871	14 which the school is located. This subparagraph shall apply
872	872	15 only to a dependent child of a military parent.
873	873	16 b. The student shall be enrolled in an eligible high
874	874	17 school and engaged in a dual enrollment program through an
875	875	18 eligible postsecondary program.
876	876	19 (2) The student shall be a citizen or lawful
877	877	20 permanent resident of the United States.
878	878	21 (b)(1) To maintain eligibility for the Alabama GRADs
879	879	22 Two-year College and Workforce Development Scholarship
880	880	23 Program, an eligible recipient shall meet both of the
881	881	24 following requirements:
882	882	25 a. Except as provided in subsection (2) and (3),
883	883	26 continue to be admitted to, and enrolled full-time in, an
884	884	27 eligible postsecondary program.
885	885	Page 33 1 b. Maintain a grade point average of 2.0 or above in
886	886	2 the eligible postsecondary program.
887	887	3 (2) An eligible recipient with a documented learning
888	888	4 disability shall enroll each semester in the maximum number of
889	889	5 semester hours that is established by the eligible
890	890	6 postsecondary institution as feasible for the student to
891	891	7 attempt with respect to his or her eligible postsecondary
892	892	8 program.
893	893	9 (3) An eligible recipient who does not have a
894	894	10 documented learning disability may enroll in fewer than 12
895	895	11 semester hours if required by the eligible postsecondary
896	896	12 program in which the recipient is enrolled.
897	897	13 (c) An eligible recipient who has an approved
898	898	14 medical leave of absence from an eligible postsecondary
899	899	15 program may continue to receive the scholarship upon resuming
900	900	16 the recipient's education at an eligible postsecondary
901	901	17 institution so long as the recipient continues to meet all
902	902	18 applicable eligibility requirements. The sum of all approved
903	903	19 leaves of absence shall not exceed six months, except as
904	904	20 provided for in rules adopted by ACHE.
905	905	21 (d)(1) An eligible recipient may continue to receive
906	906	22 an Alabama GRADs Two-year College and Workforce Development
907	907	23 Program scholarship until the occurrence of the first of any
908	908	24 of the following events:
909	909	25 a. The recipient has earned a certificate, diploma,
910	910	26 or associate degree in an eligible postsecondary program from
911	911	27 a postsecondary institution.
912	912	Page 34 1 b. The recipient has attended an eligible
913	913	2 postsecondary institution as an eligible recipient for five
914	914	3 semesters if the institution is on a semester system, or its
915	915	4 equivalent if the institution is on a system other than a
916	916	5 semester system. The semester limit shall not include an
917	917	6 approved leave of absence.
918	918	7 (2) An eligible recipient with a documented learning
919	919	8 disability shall be eligible for the Alabama GRADs Two-year
920	920	9 College and Workforce Development Program scholarship until
921	921	10 the occurrence of the first of any of the following events:
922	922	11 a. The recipient has earned a certificate, diploma,
923	923	12 or associate degree from a postsecondary institution in an
924	924	13 eligible postsecondary program.
925	925	14 b. The recipient has attended an eligible
926	926	15 postsecondary institution as an eligible recipient for the
927	927	16 minimum number of semesters the eligible postsecondary
928	928	17 institution establishes as feasible for the student to
929	929	18 complete the course work for his or her eligible postsecondary
930	930	19 program, not to exceed seven semesters, if the institution is
931	931	20 on a semester system, or its equivalent if the institution is
932	932	21 on a system other than a semester system. The semester limit
933	933	22 shall not include an approved leave of absence.
934	934	23 §41-30-31. Alabama GRADs Two-year College and
935	935	24 Workforce Development Scholarship Program - Benefit.
936	936	25 (a) An Alabama GRADs Two-year College and Workforce
937	937	26 Development Scholarship at an eligible postsecondary
938	938	27 institution shall be the lesser of either of the following:
939	939	Page 35 1 (1) Two thousand five hundred dollars ($2,500).
940	940	2 (2) The cost of tuition and mandatory fees at the
941	941	3 eligible postsecondary institution attended less all other
942	942	4 gift aid, not to exceed 90 percent of the cost of tuition and
943	943	5 mandatory fees. Gift aid shall be credited first to the
944	944	6 student's tuition and mandatory fees.
945	945	7 (b) ACHE shall pay to the appropriate eligible
946	946	8 postsecondary institution an amount equal to the amount
947	947	9 calculated under subsection (a) on behalf of each eligible
948	948	10 recipient at times to be determined by ACHE.
949	949	11 §41-30-32. Alabama GRADs Four-year College Student
950	950	12 Loan Repayment Program - Eligibility.
951	951	13 (a) To be eligible for the Alabama GRADs Four-year
952	952	14 College Student Loan Repayment Program, an applicant must
953	953	15 satisfy each of the following criteria:
954	954	16 (1) He or she must have earned a bachelor's degree
955	955	17 or the equivalent in an eligible postsecondary program from an
956	956	18 eligible postsecondary institution.
957	957	19 (2) He or she must have an outstanding balance of
958	958	20 federal student loans owed in connection with obtaining the
959	959	21 degree specified in subsection (a).
960	960	22 (3) He or she must be a resident of Alabama.
961	961	23 (4) He or she must be employed in Alabama as
962	962	24 established under rules adopted by ACHE.
963	963	25 (5) He or she must be a citizen or lawful permanent
964	964	26 resident of the United States.
965	965	Page 36 1 (b) An applicant shall notify ACHE in writing of any
966	966	2 change in status within 30 days after the change. Failure to
967	967	3 notify ACHE of a change in status shall exclude the applicant
968	968	4 from future eligibility. All of the following constitute a
969	969	5 change in status:
970	970	6 (1) A change in name.
971	971	7 (2) A change in residence.
972	972	8 (3) A change in employment status.
973	973	9 (4) Repayment in full of any previously outstanding
974	974	10 balance of federal student loans.
975	975	11 (5) Any other change specified by ACHE.
976	976	12 (c) An applicant shall establish his or her initial
977	977	13 and continued eligibility in the manner, and at the times,
978	978	14 established under rules adopted by ACHE.
979	979	15 §41-30-33. Alabama GRADs Four-year College Student
980	980	16 Loan Repayment Program - Benefit.
981	981	17 (a) Annually, ACHE shall calculate the amount
982	982	18 available for the Alabama GRADs Four-Year College Student Loan
983	983	19 Repayment benefit by dividing the total amount of funds
984	984	20 appropriated out of the Alabama Education Lottery Trust Fund
985	985	21 for the scholarship by the total number of eligible
986	986	22 recipients.
987	987	23 (b)(1) Subject to subdivision (2), ACHE shall pay
988	988	24 each eligible recipient, in each of the four years following
989	989	25 his or her receipt of the degree specified in Section
990	990	26 41-30-34(a), an amount equal to the amount calculated under
991	991	27 subsection (a).
992	992	Page 37 1 (2) Loan repayment awards shall be applied directly
993	993	2 to an outstanding federal student loan balance held by the
994	994	3 eligible recipient on a schedule determined by ACHE.
995	995	4 (3) If the award amount is larger than an eligible
996	996	5 recipient's outstanding loan balance, the award amount shall
997	997	6 be reduced to the amount of the loan balance.
998	998	7 (4) ACHE shall take reasonable steps to inform
999	999	8 eligible recipients that the Alabama GRADs Four-Year College
1000	1000	9 Student Loan Repayment benefit constitutes income for purposes
1001	1001	10 of federal and state income tax.
1002	1002	11 §41-30-34. Alabama GRADs Four-year College
1003	1003	12 Scholarship Program - Eligibility.
1004	1004	13 (a) To be initially eligible for the Alabama GRADs
1005	1005	14 Four-year College Scholarship Program, a student shall be
1006	1006	15 admitted to, and enrolled full-time in, an eligible
1007	1007	16 postsecondary program within three years of any of the
1008	1008	17 following:
1009	1009	18 (1) Graduation from an eligible high school.
1010	1010	19 (2) Obtaining a high school equivalency certificate
1011	1011	20 or diploma prior to the student reaching 19 years of age.
1012	1012	21 (3) Graduation from an out-of-state secondary school
1013	1013	22 operated by the government of the United States, accredited by
1014	1014	23 the appropriate regional accrediting association for the state
1015	1015	24 in which the school is located, or accredited by an
1016	1016	25 accrediting association recognized by the foreign nation in
1017	1017	26 which the school is located. This subdivision shall apply only
1018	1018	27 to a dependent child of a military parent.
1019	1019	Page 38 1 (b)(1) Except as otherwise provided in subsections
1020	1020	2 (2) and (3), to maintain eligibility for the Alabama GRADs
1021	1021	3 Four-year College Scholarship Program, an eligible recipient
1022	1022	4 shall:
1023	1023	5 a. Continue to be admitted to, and enrolled
1024	1024	6 full-time in, an eligible postsecondary program.
1025	1025	7 b. Maintain a grade point average of 2.0 or above in
1026	1026	8 the eligible postsecondary program.
1027	1027	9 (2) An eligible recipient with a documented learning
1028	1028	10 disability shall enroll each semester in the maximum number of
1029	1029	11 semester hours that is established by the eligible
1030	1030	12 postsecondary institution as feasible for the student to
1031	1031	13 attempt with respect to his or her eligible postsecondary
1032	1032	14 program.
1033	1033	15 (3) An eligible recipient who does not have a
1034	1034	16 documented learning disability may enroll in fewer than 12
1035	1035	17 semester hours if required by the eligible postsecondary
1036	1036	18 program in which the recipient is enrolled.
1037	1037	19 (c) An eligible recipient who has an approved
1038	1038	20 medical leave of absence from an eligible postsecondary
1039	1039	21 program may continue to receive the scholarship upon resuming
1040	1040	22 the recipient's education at an eligible postsecondary
1041	1041	23 institution so long as the recipient continues to meet all
1042	1042	24 applicable eligibility requirements. The sum of all approved
1043	1043	25 leaves of absence shall not exceed six months, except as
1044	1044	26 provided for in rules adopted by ACHE.
1045	1045	Page 39 1 (d)(1) An eligible recipient may continue to receive
1046	1046	2 an Alabama GRADs Four-Year College Scholarship until the
1047	1047	3 occurrence of the first of the following events:
1048	1048	4 a. The recipient has earned a bachelor's degree or
1049	1049	5 equivalent from a postsecondary institution.
1050	1050	6 b. The student has attended an eligible
1051	1051	7 postsecondary institution as an eligible recipient for nine
1052	1052	8 semesters if the institution is on a semester system, or its
1053	1053	9 equivalent if the institution is on a system other than a
1054	1054	10 semester system. Such semester limit shall not include an
1055	1055	11 approved leave of absence.
1056	1056	12 (2) A student with a documented learning disability
1057	1057	13 shall be eligible for the Alabama GRADs Four-Year College
1058	1058	14 Scholarship until the occurrence of the first of either of the
1059	1059	15 following events:
1060	1060	16 a. The recipient has earned a bachelor's degree or
1061	1061	17 equivalent from a postsecondary institution.
1062	1062	18 b. The recipient has attended an eligible
1063	1063	19 postsecondary institution as an eligible recipient for the
1064	1064	20 minimum number of semesters the eligible postsecondary
1065	1065	21 institution establishes as feasible for the student to
1066	1066	22 complete the course work for his or her eligible postsecondary
1067	1067	23 program, not to exceed 11 semesters, if the institution is on
1068	1068	24 a semester system, or its equivalent if the institution is on
1069	1069	25 a system other than a semester system. The semester limit
1070	1070	26 shall not include an approved leave of absence.
1071	1071	Page 40 1 §41-30-35. Alabama GRADs Four-year College
1072	1072	2 Scholarship Program - Benefit.
1073	1073	3 (a) An Alabama GRADs Four-Year College Scholarship
1074	1074	4 shall be equal to the amount appropriated by the Legislature
1075	1075	5 from the Alabama Education Lottery Trust Fund for the
1076	1076	6 scholarship, divided by the total number of eligible
1077	1077	7 recipients.
1078	1078	8 (b) ACHE shall pay to the appropriate eligible
1079	1079	9 postsecondary institution an amount equal to the amount
1080	1080	10 calculated under subsection (a) on behalf of each eligible
1081	1081	11 recipient at times to be determined by ACHE.
1082	1082	12 §41-30-36. Reporting.
1083	1083	13 ACHE shall research and analyze data concerning the
1084	1084	14 programs created under this chapter, including, but not
1085	1085	15 limited to, student success and scholarship retention. ACHE
1086	1086	16 shall report its findings each year not later than March 15 to
1087	1087	17 the Governor, the Lieutenant Governor, the Speaker of the
1088	1088	18 House of Representatives, the President Pro Tempore of the
1089	1089	19 Senate, the Chair of the House Ways and Means Education
1090	1090	20 Committee, the Chair of the Senate Finance and Taxation
1091	1091	21 Education Committee, the Chair of the House Education Policy
1092	1092	22 Committee, and the Chair of the Senate Education Policy
1093	1093	23 Committee.
1094	1094	24 §41-30-37. Misdemeanor Lottery Offenses.
1095	1095	25 (a) A person may not do any of the following:
1096	1096	26 (1) Knowingly make a false statement on any
1097	1097	27 application for a license under this chapter or on an
1098	1098	Page 41 1 application for renewal of a license issued under this
1099	1099	2 chapter.
1100	1100	3 (2) Operate a lottery game under any of the
1101	1101	4 following conditions:
1102	1102	5 a. Prior to obtaining a license.
1103	1103	6 b. After the person's license has expired and prior
1104	1104	7 to actual renewal of the license.
1105	1105	8 (b) A person who violates this section shall be
1106	1106	9 guilty of a Class A misdemeanor.
1107	1107	10 §41-30-38. Unlawful Purchase of Lottery Tickets.
1108	1108	11 (a)(1) It is unlawful for any individual under 21
1109	1109	12 years of age to purchase, use, or possess a lottery ticket, or
1110	1110	13 attempt to purchase, use, or possess a lottery ticket.
1111	1111	14 (2) Notwithstanding subdivision (1), it is not
1112	1112	15 unlawful for an individual under 21 years of age who is an
1113	1113	16 employee of a lottery retailer licensee to handle, transport,
1114	1114	17 or sell a lottery ticket if the employee is acting within the
1115	1115	18 line and scope of employment and the licensee, or an employee
1116	1116	19 of the licensee who is 21 years of age or older, is present.
1117	1117	20 (b) It is unlawful for any individual under 21 years
1118	1118	21 of age to present or offer to another person proof of
1119	1119	22 identification which is false, fraudulent, or not actually his
1120	1120	23 or her own proof of identification in order to buy, receive,
1121	1121	24 or otherwise obtain, or attempt to buy, receive, or otherwise
1122	1122	25 obtain, any lottery ticket.
1123	1123	Page 42 1 (c) A violation of subsection (a) or (b) is a Class
1124	1124	2 C misdemeanor punishable by a fine of not less than fifty
1125	1125	3 dollars ($50) nor more than five hundred dollars ($500).
1126	1126	4 (d) The commission may levy a civil penalty against
1127	1127	5 any lottery retailer licensee who requests or requires an
1128	1128	6 employee under 21 years of age to handle, transport, or sell a
1129	1129	7 lottery ticket in a manner that violates subsection (a) as
1130	1130	8 follows:
1131	1131	9 (1) Two hundred fifty dollars ($250) for a first
1132	1132	10 offense.
1133	1133	11 (2) Five hundred dollars ($500) for a second or
1134	1134	12 subsequent offense.
1135	1135	13 (e) For purposes of this section, "proof of
1136	1136	14 identification" means any one or more of the following
1137	1137	15 documents used for purposes of determining the age of an
1138	1138	16 individual purchasing, or attempting to purchase, a lottery
1139	1139	17 ticket:
1140	1140	18 (1) A valid driver license issued by any state and
1141	1141	19 bearing the photograph of the presenting individual.
1142	1142	20 (2) United States Uniform Service Identification.
1143	1143	21 (3) A valid passport.
1144	1144	22 (4) A valid identification card issued by any state
1145	1145	23 agency for the purpose of identification and bearing the
1146	1146	24 photograph and date of birth of the presenting individual.
1147	1147	25 (f) The commission may adopt rules to provide
1148	1148	26 further requirements for the presentation of proof of
1149	1149	Page 43 1 identification for the purchase of lottery tickets and
1150	1150	2 penalties for a violation.
1151	1151	3 Section 2. Although this bill would have as its
1152	1152	4 purpose or effect the requirement of a new or increased
1153	1153	5 expenditure of local funds, the bill is excluded from further
1154	1154	6 requirements and application under Amendment 621, as amended
1155	1155	7 by Amendment 890, now appearing as Section 111.05 of the
1156	1156	8 Official Recompilation of the Constitution of Alabama of 1901,
1157	1157	9 as amended, because the bill defines a new crime or amends the
1158	1158	10 definition of an existing crime.
1159	1159	11 Section 3. This act shall become effective after its
1160	1160	12 passage and approval by the Governor, or its otherwise
1161	1161	13 becoming law and ratification of the constitutional amendment
1162	1162	14 proposed by House Bill ____ of the 2022 Regular Session.
1163	1163	Page 44