HB502 Summary

• Establishes the Alabama Education Lottery Commission as a state agency to regulate all lottery games in Alabama, with a board of directors, executive director, and independent Enforcement Division with investigative and enforcement authority.

• Creates the Alabama Education Lottery Trust Fund to receive lottery proceeds after administrative expenses and prize payments, with remaining funds distributed annually to problem gaming treatment ($500,000), education retirees' bonuses (7.5%), agricultural education program fees (up to $500,000), and scholarship programs.

• Authorizes the commission to issue lottery retailer licenses, conduct suitability investigations of applicants, assess civil penalties up to $100,000 for violations, and establish rules governing lottery games and ticket sales.

• Establishes three education scholarship programs administered by ACHE: Alabama GRADs Two-year College and Workforce Development Scholarship (up to $2,500 annually), Alabama GRADs Four-year College Scholarship, and Alabama GRADs Four-year College Student Loan Repayment Program (4 annual payments for eligible graduates).

• Creates criminal penalties for unlicensed lottery operation and misdemeanor offenses, and prohibits lottery ticket purchases by individuals under 21 years of age with specified penalties and civil fines against retailers who violate age restrictions.