Section 430.100  Definitions

 

For purposes of these rules, the following definitions apply:

 

            "Act":  The Bingo License and Tax Act (Ill. Rev. Stat. 1989, ch. 120, par. 1101 et seq.);

 

            "Bingo":  The form of lottery authorized by the Act in which prizes are awarded on the basis of designated numbers or symbols on a card for which consideration has been paid, conforming to numbers or symbols selected at random;

 

            "Department":  The Illinois Department of Revenue;

 

            "License year":  The year (or other period of time for which a license is issued pursuant to Section 430.110 (d)) beginning on the date a license is issued under the Act, which date is stated on the license;

 

            "Organization":  a corporation, agency, partnership, association, firm or other entity consisting of two or more persons joined by a common interest or purpose;

 

            "Received by the Department" or similar phrases: Whenever these rules require that any writing or any payment must be received within a specified number of days or by a specified date, the provisions of Section 1.25 of "An Act to revise the law in relation to the construction of the statutes" (Ill. Rev. Stat. 1989, ch. 1, par. 1026) shall apply;

 

            "Regular license":  The license authorizing the holder to conduct one session of bingo per week on the date and at the time and location stated on the license;

 

            "Session" or "bingo session":  The time during which bingo is conducted, including the time during which bingo cards are sold.  A licensed organization may not conduct more than one session per day;

 

            "Substantially Complete Application":  An application that on its face shows that the applicant has made a reasonable effort to complete all applicable parts of the application.

 

(Source:  Amended at 15 Ill. Reg. 10944, effective July 10, 1991)

 

Section 430.110  Regular Licenses

 

a)         Eligibility.  To be eligible for a regular license an organization must have been organized in Illinois, and during the entire five year period preceding application must have had a bona fide membership engaged in carrying out its objects. However, the five year requirement shall be reduced to two years if the Illinois organization is affiliated with and chartered by a national organization which meets the five year requirement. (Section 1 of the Act) To be "chartered" by a national organization, an Illinois organization must have a document issued by the national organization formally authorizing the establishment of the Illinois organization. The organization must be conducted on a not-for-profit basis with no personal profit inuring to anyone as a result of the operation. (Section 1 of the Act) In addition, the organization must fall within one of the following categories:

 

1)         Charitable Organization:  an organization organized and operated to benefit an indefinite number of the public (Section 1 of the Act);

 

2)         Educational Organization:  an organization organized and operated to provide systematic instruction in useful branches of learning by methods common to schools and institutions of learning which compare favorably in their scope and intensity with the course of study presented in tax supported schools. (Section 1 of the Act) Public schools and school districts are not eligible for regular licenses;

 

3)         Religious Organization:  any church, congregation, society, or organization founded for the purpose of religious worship (Section 1 of the Act);

 

4)         Fraternal Organization:  an organization of persons, including ethnic organizations, having a common interest, organized and operated exclusively to promote the welfare of its members and to benefit the general public on a continuing and consistent basis (Section 1 of the Act);

 

5)         Veterans Organization:  an organization comprised of members of which substantially all are individuals who are veterans or spouses, widows, or widowers of veterans, the primary purpose of which is to promote the welfare of its members and to provide assistance to the general public in such a way as to confer a public benefit (Section 1 of the Act);

 

6)         Labor Organization:  an organization composed of labor unions or workers organized with the objective of betterment of the conditions of those engaged in such pursuit and the development of a higher degree of efficiency in their respective occupations (Section 1 of the Act);

 

7)         Youth Athletic Organization:  an organization having as its exclusive purpose the promotion and provision of athletic activities for youth aged 18 and under. (Section 1 of the Act) Marching bands and drum and bugle corps are considered to be promoting and providing athletic activities.  A youth athletic organization otherwise eligible for a regular license does not lose its eligibility because youths served by the organization become nineteen while participating in an athletic activity within a season of definite duration;

 

8)         Senior Citizens Organization:  an organization or association comprised of members of which substantially all are individuals who are 55 years of age or older, or who are nearing the age of 55 and for whom opportunities for employment and participation in community life are unavailable or severely limited and who, as a result thereof, have difficulty in maintaining self-sufficiency and contributing to the life of the community.  The primary purpose of the organization must be the promotion of the welfare of its members. (Section 1 of the Act)

 

b)        Applications.  Application for a regular license must be made on the form prescribed by the Department, and must be accompanied by a license fee of $200 in the form of a certified check or money order payable to the Illinois Department of Revenue.  The Department will not consider applications which are not substantially complete, or which are not accompanied by the information described below.

 

1)         Renewal applications.  An application for renewal of a current regular license must be accompanied by the following information:

 

A)        A report, on a form provided by the Department or on a reasonable facsimile thereof, which contains the same information requested on the Department's form, accounting for the disposition of the gross proceeds derived from bingo during the period covered by the report. (See Section 430.180(a)) of this Part;

 

B)        The names of the persons who will be workers at the bingo sessions (other than the "Operators" whose names are shown on the application form);

 

C)        Any other information requested by the Department which is necessary to establish the continued eligibility of the organization for a regular license.

 

2)         New applications.  An organization applying for a regular license for the first time, or an organization which has held a regular license that expired prior to the receipt by the Department of a substantially complete application for renewal of the license, must submit the following information in addition to the completed application form:

 

A)        Documentary evidence sufficient to show that the organization meets the eligibility requirements of subsection (a) above.  Such documentation (by-laws, constitution, charter, minutes of past meetings, promotional material, and Articles of Incorporation) should prove that the organization has been carrying out its objectives for the 5 years preceding application;

 

B)        The names of the persons who will be workers at the bingo sessions (other than the "Operators" whose names are shown on the application form);

 

C)        Any other information requested by the Department which is necessary to establish the eligibility of the organization for a regular license;

 

D)        The application must also be accompanied by a bond equal to the applicant's anticipated average quarterly tax liability, as described in Section 430.170 of this Part.  The bond may be a bond from a surety company or may be a bank certificate of deposit made payable to the Director of the Department.  The bond may also be a personal surety bond signed by two personal sureties who have filed, with the Department, sworn statements disclosing net assets equal to at least three times the amount of the bond to be required of such applicant.  The Department will require an additional bond whenever the bond already posted does not cover the licensee's average quarterly tax liability, or if in the Department's judgment the amount of bond or other security is not sufficient to protect the State against failure to pay the amount which may become due from the licensee.  In determining whether to require the furnishing of additional bond or other security by a licensee, the Department will consider payment history, general financial condition, and any other factors which reasonably indicate increased risk of nonpayment of the licensee's tax liability.

 

c)         Each regular license shall be valid for one year from its date of issuance.  It is the policy of the Department to mail a renewal application to each regular licensee at least 30 days prior to the expiration of the license.  However, failure to receive a renewal application does not excuse a licensee of its obligation to submit a substantially complete renewal application prior to the expiration of its current license.  If the licensee fails to file a substantially complete renewal application prior to the expiration of its license, it must cease bingo activities until a renewal license is issued.

 

d)         Special operator's permits (special permits).  A regular license entitles the licensee to obtain up to two special permits each license year.  A special permit authorizes the licensee to conduct one session per day for up to seven consecutive days on premises other than those used by the organization for bingo under its regular license. A licensee may conduct bingo at the Illinois State Fair or any county fair held in Illinois during each day that the fair is in effect.  Such bingo games therein conducted shall not require a special operator's permit.

The licensee must, however, notify the Department in writing 30 days before the desired starting date of the days the bingo will be conducted and the location.

 

1)         To apply for a special permit a licensee must submit a request for the permit, in writing, to the Illinois Department of Revenue, Office of Bingo and Charitable Games, Post Office Box 19480, Springfield, Illinois 62794.  The request must state the proposed dates, beginning and ending times, and location of the sessions to be played under the special permit.  If the person or organization providing the premises for bingo under the special permit has a provider's license issued by the Department, the provider's license number must be included in the request, and a copy of any lease or rental agreement must accompany the request.

 

2)         Requests for special permits should be received by the Department at least 30 days before the desired starting date for the special permit.  The Department will approve or deny such requests no later than one week prior to the desired starting date.  Requests received by the Department less than 30 days before the desired starting date will be accepted, and the Department shall make every reasonable effort to approve or deny the request before the desired starting date, but in no case may any licensee conduct special bingo sessions without having in its possession a special permit issued by the Department, or without having been informed by the Department that the request has been approved.

 

3)         An organization may not conduct bingo under both its regular license and a special permit on the same day.

 

e)         A regular license authorizes the licensee to conduct bingo only at the location, on the day, and during the time period stated on the license.  If a licensee wishes to change the location, day or time of its bingo, it may do so by requesting, in writing, an amended license.  No additional fee will be charged for the first amended license in any one license year.  Second and subsequent requests for changes in the location, day or time of bingo will be treated as applications for a new license, and must be accompanied by an application fee of $200.  The Department will not permit a licensee to conduct bingo on any day other than the day stated on the license when the change is requested because a holiday falls on the day stated on the license.  When inclement weather (weather which is not conducive to the conducting of games, e.g., blizzard, tornado warnings, severe thunderstorms) has caused a licensee to cancel a scheduled game, the game may be made up on a day of the week other than the day authorized by the license, if the licensee notifies the Department in advance of the rescheduled day.  An officer of the licensee must notify the Department by telephone of the new date and time, as well as the reason for rescheduling, in advance of the rescheduled game.  The same officer must then verify this information in a letter to the Department.

 

(Source:  Amended at 26 Ill. Reg. 4941, effective March 15, 2002)

 

Section 430.120  Limited Licenses

 

a)         Eligibility.  Any organization which would be eligible for a regular license but which does not hold one is eligible for a limited license to conduct bingo.  A limited license authorizes the licensee to conduct bingo at no more than two indoor or outdoor festivals during the calendar year for which the license is issued for a maximum of five consecutive days on each occasion.

 

b)         Applications.  The application for a limited license must be made on the form prescribed by the Department, and must be accompanied by a license fee of $50 in the form of a certified check or money order payable to the Illinois Department of Revenue.  Renewal applications must be accompanied by the same information required of organizations applying for renewal of a regular license (see Section 430.110(b)(1)).  New applications must be accompanied by the same information required of organizations applying for a new regular license (see Section 430.110(b)(2)).

 

c)         Substantially complete applications accompanied by all required information must be received by the Department at least 30 days before the desired starting date for the limited license.  The Department will approve or deny such applications no later than one week prior to the desired starting date.

 

d)         Each limited license shall be valid for one year from its date of issuance.  A limited license authorizes the licensee to conduct bingo only at the location, on the dates, and during the time period stated on the license.

 

e)         All provisions of these rules governing the conducting of bingo by regular licensees also apply to limited licensees unless the context clearly requires otherwise.

 

f)         Limited licensees are not required to establish a separate checking account.  Gross proceeds can be deposited into an organization's general account.  The licensees are required to complete Form RB-32, Expenditure of Funds Earned Through Bingo, detailing the expenditures of all bingo proceeds and provide all financial information requested.

 

(Source:  Amended at 15 Ill. Reg. 10944, effective July 10, 1991)

 

Section 430.125  Senior Citizens Restricted Licenses

 

a)         Eligibility.  The Department shall issue restricted licenses to senior citizens organizations. See Section 430.110 (a)(8) for a definition of "senior citizens."  The fee for a restricted license is $10 per year. Restricted licenses are subject to the following conditions:

 

1)         Bingo shall be conducted only at a facility which is owned by a unit of local government to which the corporate authorities have given their approval and which is used to provide social services or a meeting place to senior citizens, or in common areas in multi-unit federally assisted rental housing maintained solely for the elderly and handicapped;

 

2)         The price paid for a single card shall not exceed 5 cents;

 

3)         The aggregate retail value of all prizes or merchandise awarded in any one game of bingo shall not exceed $1;

 

4)         No person or organization shall participate in the management or operation of bingo under a restricted license if the person or organization would be ineligible for a license under Section 1 (8)(a-f) of the Act;

 

5)         No license is required to provide premises for bingo conducted under a restricted license;

 

6)         Licenses must be renewed annually.  Licensees will be notified in advance by the Department that the time for renewal is upcoming.  Failure to receive a notice of renewal does not excuse a licensee of its obligation to submit a renewal application prior to the expiration of its current license. If the licensee fails to file a renewal application prior to the expiration of its license, it must cease bingo activities until a renewal license is issued;

 

7)         Licensees must notify the Department in writing if there is a change in the information required by Section 430.125(b);

 

8)         Licensees violating the provisions of this Section are subject to the provisions of Section 430.190 of this Part;

 

9)         No other restrictions imposed in this Part apply to restricted licenses.

 

b)         Applications.  Organizations applying for a restricted license must submit the following to the Department:

 

1)         A letter from an officer of the organization requesting issuance of a restricted license, containing the name and address of the organization, the location at which games will be conducted, and the name, address and telephone number of the person in the senior citizens organization who is responsible for organizing bingo games;

 

2)         A $10 license fee;

 

3)         A letter from the management of a facility described in Section 430.125 (a)(1) above, indicating that a senior citizens' organization desires to conduct bingo games at that facility, and certifying that the facility is one which meets the requirements of Section 430.125 (a)(1).

 

c)         All application materials (Section 430.125(b)) shall be sent to the Illinois Department of Revenue, Office of Bingo and Charitable Games, P.O. Box 19480, Springfield IL  62794.

 

d)         Confirmation.  The Department shall review the application materials. If approved, a licensee shall be issued a license which should be displayed at the bingo site.

 

(Source:  Added at 16 Ill. Reg. 14688, effective September 14, 1992)

 

Section 430.130  Supplier's Licenses

 

a)         Any person, firm, or corporation which sells, leases, or distributes, to any organization licensed to conduct bingo or to any licensed bingo supplier, cards, boards, sheets, markers, pads and any other supplies, devices and equipment designed for use in the play of bingo must obtain a license therefor from the Department.

 

b)         Applications.  Application for a supplier's license must be made on the form prescribed by the Department, and must be accompanied by a license fee of $200 in the form of a certified check or money order payable to the Illinois Department of Revenue.  Each supplier's license is valid for one year from its date of issuance.

 

c)         All suppliers shall inform the Department of the exact location of the storage of all supplies and equipment.  Within 30 days after the end of each calendar quarter during which a supplier's license was in effect, the supplier shall file a return with the Department listing all sales and leases of bingo supplies and equipment for such quarter and gross proceeds derived from each such sale or lease.  A supplier shall keep books and records for the furnishing of bingo supplies and equipment separate and distinct from any other business the supplier might operate.  A supplier shall maintain all such books and records for a period of at least three years and must allow inspection of the books and records by agents or employees of the Department during reasonable business hours (between 9 a.m. and 5 p.m., Monday through Friday).

 

(Source:  Amended at 15 Ill. Reg. 10944, effective July 10, 1991)

 

Section 430.140  Providers Licenses

 

a)         Any person or organization, except a city, village or incorporated town, owning or leasing premises on which another organization intends to conduct bingo must have a providers license authorizing that person or organization to furnish the premises for the conducting of bingo.  However, a providers license is not required for any premises on which organizations intending to conduct bingo also have their office or headquarters, or on which they regularly further the purposes for which they were organized.

 

b)         Applications.  Application for a providers license must be made on the form prescribed by the Department, and must be accompanied by a license fee of $200 in the form of a certified check or money order payable to the Illinois Department of Revenue.  Each providers license is valid for one year from its date of issuance.

 

c)         Rents.  A person or organization holding a providers license may charge as rent an amount not exceeding the reasonable, allowable expenses incurred during the license year in providing the premises for the conducting of bingo.  Based on the expenses documented by the licensed provider, the Department will determine the maximum rent that may be charged organizations conducting bingo on the provider's premises.

 

1)         Allowable expenses are as follows:

 

A)        The licensed provider's rental or mortgage payments, including real estate taxes and insurance.  If less than the entire premises is to be used for bingo, the allowable rental or mortgage expense shall be that percentage of the total rental or mortgage expense equalling the percentage (in terms of square footage) of the entire premises which is used for bingo;

 

B)        The cost of utilities, including payments for gas, electricity, telephone and water.  If less than the entire premises is to be used for bingo, the allowable utilities expense shall be that percentage of the total utilities expense equalling the percentage (in terms of square footage) of the entire premises which is used for bingo;

 

C)        The cost of equipment, including furniture, used for bingo.  The cost of any single item of equipment for a license year shall be the total cost of the equipment divided by the number of years the equipment can be expected to be used.  If any item of equipment is not used exclusively for bingo, the allowable expense for the item shall be that percentage of the expense for the item equalling the percentage of the time the item is used for bingo;

 

D)        The cost of providing security for the premises;

 

E)        The cost of salaries and wages paid to managerial, secretarial, custodial, and maintenance personnel for services related to the provision of the premises for bingo;

 

F)         The cost of any other items or services which are necessary to the use of the premises for bingo.

 

2)         The costs of providing security and transportation for patrons of bingo games are not allowable expenses for the provider of the premises.

 

3)         In determining the rent that a licensed provider may charge, the Department will not consider any expenses which are not documented by the provider.  Documentation of expenses may consist of copies of past bills, leases, contracts, receipts, employment records, or any other evidence that the expenses shown on the application have been or will be incurred in the amounts shown.  At any time during the license year a provider may submit additional documentation showing that expenses have increased, and the Department will adjust the maximum rent that may be charged accordingly.  If expenses decrease, the provider must notify the Department within 14 days after the decrease becomes known.

 

4)         The Department will examine the provider's documented allowable expenses to determine that they are reasonable.  Such expenses shall be presumed to be reasonable unless it appears, based on information available to the Department and its judgment of all the facts of each particular case, that the expenses have been or will be incurred primarily to increase the amount of rent that may be charged to organizations conducting bingo on the provider's premises.

 

5)         Computation of maximum rent.  In determining the maximum rent that a provider may collect from an organization conducting bingo on the provider's premises, the total of all reasonable, documented, allowable expenses for the license year shall be divided by the number of weeks bingo is to be conducted on the premises during the year to obtain an amount representing the provider's weekly expenses for providing premises for bingo. If seven or fewer bingo sessions are conducted on the premises each week, the maximum rent a provider may collect from each organization for each session shall be an amount equal to one-seventh of the provider's weekly expenses.  If more than seven bingo sessions are conducted on the premises each week, the maximum rent a provider may collect from each organization for each session shall be an amount equal to the provider's weekly expenses divided by the number of weekly bingo sessions conducted on the premises.  A provider may not charge or collect from a licensed organization, and a licensed organization may not pay to a provider, any amounts exceeding the maximum rent authorized by the Department pursuant to this Section.

 

6)         Nothing in these rules shall prohibit any licensed organization from making donations or contributions to a licensed provider, provided that the licensed provider is also licensed to conduct bingo, or satisfies the eligibility requirements for a regular license contained in Section 430.110(a) above, but does not have a regular license.

 

7)         This Section shall apply to all new applications for a providers license, and to all renewal applications for providers licenses which expire after the effective date of these rules.

 

d)         No licensed provider may advertise or promote, or participate in any way in the advertising or promotion of, any bingo session for which it does not hold a regular or limited license or a special permit.

 

Section 430.150  Ineligibility for License

 

a)         The following are ineligible for any license under the Act:

 

1)         Any person who has been convicted of a felony;

 

2)         Any person who has been convicted of a violation of Article 28 of the "Criminal Code of 1961" (Ill. Rev. Stat. 1981, ch. 38, par. 28-1 et seq.);

 

3)         Any person found gambling, participating in gambling or knowingly permitting gambling on premises where bingo is being conducted;

 

4)         Any firm or corporation in which a person defined in subsections (1), (2), or (3) above has a proprietary, equitable, or credit interest, or in which such person is active or employed;

 

5)         Any organization in which a person defined in subsections (1), (2), or (3) above is an officer, director, or employee, whether compensated or not;

 

6)         Any organization in which a person defined in subsections (1), (2), or (3) above is to participate in the management or operation of a bingo game;

 

7)         Any unlicensed person or organization engaging in any activities required to be licensed under the Act;

 

8)         Any person or organization which submits any application, supporting documentation, or return containing statements which the person or organization knows to be false.

 

b)         The ineligibility of a person or organization under subsections (a)(4), (5) and (6) above shall continue so long as a person defined in subsections (a)(1), (2) or (3) above maintains with the person or organization the relationship causing the ineligibility. The ineligibility of an organization under subsections (a)(7) and (8) above shall continue for a period of one year from the cessation of the activities required to be licensed under the Act.

 

Section 430.160  Restrictions and Limitations on the Conducting of Bingo

 

The following restrictions and limitations on the conducting of bingo apply to any bingo session conducted by any licensed organization.

 

a)         License

 

1)         No organization may conduct bingo without having in its possession a valid license issued by the Department.  No organization may continue to conduct bingo after the expiration date shown on its license unless the Department has received a substantially complete renewal application and the information required by subsections (b)(1)(A) and (B) of Section 430.110. An organization which violates the restriction in the preceding sentence, but which submits a substantially complete renewal application within 30 days after the expiration of its license, shall be penalized as provided in Section 430.l90(c)(2).  If the Department has received a substantially complete renewal application and accompanying information prior to the expiration of a regular license, but has not issued the renewed license as of the expiration date, the organization may continue to conduct bingo, and the organization's expired license shall continue in effect until the Department notifies the organization of the decision on the renewal application.  If the Department approves the renewal application, the date of issuance of the renewed license shall be the date following the expiration date of the expired license.  If the Department denies the renewal application, and the organization protests the Department's denial as provided in Section 430.190, the expired license shall continue in effect until the Department issues a final administrative decision on the protest, or until the protest is otherwise resolved.

 

2)         Every organization shall display its license in a prominent place in the area where it is to conduct bingo.  [230 ILCS 25/1(4)] A bingo session may be conducted in two or more separate areas on the premises for which the license is issued.  In such case the license shall be displayed in the area in which the person calling the numbers is located.

 

3)         No license will be issued for any bingo session beginning less than two hours after the conclusion of a prior session conducted on the same premises.  However, this restriction shall not apply to special permits or limited licenses to conduct bingo at the State Fair conducted by the Illinois Department of Agriculture pursuant to Section 5 of the State Fair Act [20 ILCS 210/5] or at any county fair as that term is defined in Section 2 of the Agricultural Fair Act [30 ILCS 120/2].

 

b)         Games.  A bingo "game" consists of the calling of numbers from one to seventy-five, one at a time without replacement, until one or more winners are determined by the completion of one or more predetermined patterns of numbers on a bingo card.

 

1)         An organization may not conduct more than 25 games during a bingo session, except organizations holding a special operator's permit or a limited license may, as one of the occasions allowed by such license or permit, conduct bingo for a maximum of 2 consecutive days, during each day of which the number of games may exceed 25.  Further, the 25 game restriction shall not apply to bingo conducted at the Illinois State Fair or any county fair held in Illinois.  The statutory monetary limit on the prizes is always applicable. A maximum of five games may be designated "special games".  Special games are distinguished from regular games only by the maximum price that may be charged for the bingo cards used. The five special games limit shall not apply to Bingo conducted at the Illinois State Fair or any county fair held in Illinois.

 

2)         Regular game cards may be sold for a maximum of one dollar apiece, and each regular card must be valid for all regular games in a bingo session.  However an organization holding a special operator's permit or a limited license may, on one of the occasions allowed by such license or permit, sell regular game cards which need not be valid for all regular games.  Special game cards may be sold for a maximum of 50 cents each.

 

3)         To be "valid" for a game, a card must be eligible for the same prize as any other card used in that game, except that cards sold for different prices may be eligible for different prizes, provided that the ratios of the prices and prizes are equal. (Example:  An organization sells regular cards for either one dollar or 50 cents.  The prize for a bingo on a one dollar card may be twice as large as the prize for a bingo on a 50 cent card.  Note:  This restriction does not apply in cases where the difference in the price of cards is due to a volume discount, e.g. one card for a dollar or six cards for five dollars.)

 

c)         Prizes

 

1)         The aggregate retail value of all prizes or merchandise awarded in any bingo session may not exceed $2,250, except that in any adjoining counties having 200,000 to 275,000 inhabitants each, and in counties which are adjacent to either of such adjoining counties and are adjacent to a total of not more than 2 counties in this State, and in any municipality having 2,500 or more inhabitants and within one mile of such adjoining and adjacent counties having less than 25,000 inhabitants, 2 additional bingo games may be conducted after the $2,250 limit has been reached. (Currently, Madison, Monroe and St. Clair counties, and the city of Red Bud, qualify for additional games.)  The prize awarded for any one game, including any game conducted after reaching the $2,250 limit, may not exceed $500 cash or its equivalent. [230 ILCS 25/2(4)]

 

2)         An organization holding a special operator's permit or a limited license may, as one of the two annual occasions allowed by such permit or license, award only noncash prizes for which there is no monetary retail value limit imposed, provided that the retail value of noncash prizes for any single game shall not exceed $150.  There is no minimum prize requirement.

 

3)         The aggregate retail value of all merchandise, cash, or bingo cards awarded in any bingo session as door or attendance prizes may not exceed $500, and shall be considered part of the applicable maximum limit in prizes or merchandise that may be awarded in any bingo session.  In games conducted pursuant to a special operator's permit or a limited license, and awarding only noncash prizes, the prize awarded for any one game may not exceed a retail value of $150.  There is no minimum prize requirement.

 

d)         Management and Operation of Bingo

 

1)         For periods through August 8, 2001, only a bona fide member of the licensed organization or a bona fide member of an auxiliary organization (substantially all of whose members are spouses of members of the sponsoring organization) may participate in the management or operation of the bingo session, either as an operator or a worker.  Participation in the management or operation of the bingo session includes selling cards, calling numbers, confirming and paying winners, and handling or counting the proceeds from the sale of cards while the session is in progress.

 

A)        Operators are the persons directly responsible for managing the game and who have signed the application for license or amended statement thereto.  No bingo session may be conducted unless an operator is present.

 

B)        Workers are any persons participating in the operation of a bingo session.  Their names must appear on the list of workers, or any amendments thereto, accompanying the organization's application, as provided in Section 430.110(b)(1)(B) and (b)(2)(B) and Section 430.120(b).

 

2)         No person may receive any remuneration or profit for participating in the management or operation of the game except that if an organization licensed under the Act is associated with a school or other educational institution, that school or institution may reduce tuition or fees for a designated pupil based on participation in the management or operation of the game by any member of the organization.  "Associated with" includes organizations which are organized and operated to promote the welfare of the school or educational institution (e.g., PTA or qualifying booster clubs).  The extent to which tuition and fees are reduced shall relate proportionately to the amount of time volunteered by the member, as determined by the school or other educational institution.  [230 ILCS 25/2(3)] Meals provided to operators or workers on the day they participate in the management or operation of a bingo game and an annual banquet or party for them do not constitute "remuneration or profit", provided that the per capita value of such meals or parties is not so great as to constitute a significant inducement to participate in the management or operation of the organization's bingo game.

 

3)         No person may participate in the management or operation of the bingo sessions of more than two licensed organizations.

 

e)         Illegal Gambling and Raffles

 

1)         Unlicensed raffles or other forms of gambling prohibited by law shall not be conducted on the premises where bingo is being conducted.  Illegal gambling includes, but is not limited to, gambling among those in attendance at the bingo session.

 

2)         Bona fide raffles, including the selling of chances and the determining of winners, licensed pursuant to the Raffles Act  [230 ILCS 15] may be conducted at bingo sessions.  (Note that raffle licenses are issued by the governing bodies of counties and municipalities; the Department does not license raffles.)  A "bona fide" raffle is defined as one in which, if the raffle is conducted entirely during a bingo session, the gross receipts from the sale of chances approximates the retail value of the prizes awarded, and the receipt or purchase of raffle chances or the determination of the raffle winners are in no way conditioned upon participation in the bingo session of any licensed organization, either as a player or as a worker.

 

3)         Pull tabs and jar games conducted under the Illinois Pull Tabs and Jar Games Act [230 ILCS 20] may be conducted.  Prizes awarded in these games shall not be included in the bingo prize limitation.

 

f)         Miscellaneous Provisions

 

1)         The entire net proceeds from bingo must be exclusively devoted to the lawful purposes of the licensed organization. [230 ILCS 25/2(1)]

 

2)         All advertising by a licensed organization regarding the conducting of its bingo sessions shall contain the name and bingo license number of the organization.  Licensed organizations may not participate in joint advertising with other licensed organizations.

 

3)         No admission fee may be charged for entrance onto premises on which bingo is to be conducted, nor may any minimum requirement be imposed as to the purchase of bingo cards.

 

4)         No person under the age of 18 years may play or participate in the conducting of bingo.  Any person under the age of 18 years may be within the area where bingo is being played only when accompanied by his or her parent or guardian. [230 ILCS 25/2(9)]

 

5)         No licensed organization shall purchase or lease any bingo supplies or equipment other than from a person or organization licensed under the Act.

 

6)         No licensee under the Act, while a bingo session is being conducted, shall knowingly permit the entry into any part of the premises by any person who has been convicted of a felony or a violation of Article 28 of the Criminal Code of 1961 [720 ILCS 5/Art. 28]. [230 ILCS 25/4]

 

(Source:  Amended at 26 Ill. Reg. 4941, effective March 15, 2002)

 

Section 430.170  Imposition of Tax; Returns

 

a)         There shall be paid to the Department 5% of the gross proceeds of any bingo session conducted in the State.  "Gross proceeds" includes the total receipts, in whatever form, from the sale of bingo cards. Donations to a licensed organization shall be included in gross proceeds in any case where the making of a donation, or the amount of a donation, has any bearing on the number of bingo cards received by bingo players.

 

b)         Each payment of tax shall be made by money order or certified check payable to the Illinois Department of Revenue, and shall be accompanied by a return provided by the Department.  Returns shall state the number of games conducted, the number of persons purchasing bingo cards, the gross proceeds, and the amount of tax due thereon for every bingo session conducted by the organization during the period covered by the return.  In addition, the return shall list the name and address of all persons or organizations from whom bingo equipment or supplies were purchased during the period covered by the return.

 

c)         The return for January, February and March of a given year shall be filed by April 20 of such year.  The return for April, May and June of a given year shall be filed by July 20 of such year.  The return for July, August and September of a given year shall be filed by October 20 of such year.  The return for October, November and December of a given year shall be filed by January 20 of the following year.  In the case of a limited license, the licensed organization shall file its return within 20 days after each occasion covered by the license.

 

d)         A return must be filed as provided in subsection (c) above even if no tax is due.  Such a return shall state that no bingo sessions were conducted during the quarter covered by the return.

 

Section 430.180  Records; Audits

 

a)         Except as provided in subsection (b) below and Section 430.120(f), each licensed organization must establish a separate checking account into which its gross proceeds from bingo (less cash prizes awarded) must be deposited. All expenditures of bingo proceeds (other than cash prizes) must be by checks, having consecutive numbers, payable to a specific person or organization.  No checks shall be written to "cash".  The amount of receipts from bingo, the amount of prizes awarded, and the deposits and expenditures from the bingo checking account shall be reported on a form provided by the Department and submitted annually along with the organization's application for renewal of its bingo license (see Section 430.110(b)(1)(A)).

 

b)         If a licensed organization is affiliated with and chartered by a national organization, and is prohibited by the national organization from establishing a separate checking account for bingo, the licensed organization may satisfy the requirements of subsection (a) above by submitting, along with the application for renewal of its license, a copy of an audit performed by the national organization of the licensed organization's books and records covering the most recently completed fiscal year of the licensed organization.  In addition, the licensed organization shall maintain a separate ledger account for its bingo receipts and expenditures, a full report of which shall be submitted with the renewal application.

 

c)         Every licensed organization must keep all records, receipts, checks and any documents used in preparing the reports described in subsections (a) and (b) above for a period of three years following the submission of the report.  In addition, every licensed organization must have a current membership list.  Such records and list shall be available for inspection by representatives of the Department during reasonable business hours.

 

d)         When the Department has information indicating that any person or organization licensed under the Act has not paid the full amount of tax due, has not provided the Department with accurate information concerning revenues from bingo, or is using proceeds from bingo in an unlawful manner, the Department, by the Director, will require the licensee to obtain from an Illinois certified public accounting firm, at the licensee's own expense, a certified and unqualified financial statement of records of the licensee.  The statement must be submitted to the Department within 90 days after notice is received by the licensee.

 

(Source:  Amended at 15 Ill. Reg. 10944, effective July 10, 1991)

 

Section 430.190  Denial, Suspension, or Revocation of Licenses

 

a)         The Department shall deny the application of any person or organization which does not satisfy all eligibility requirements for the license for which application is made, or which is ineligible for a license under Section 430.150(a).

 

b)         The Department shall suspend the license of any person or organization which, while its license is in effect, becomes ineligible for any reason.  The suspension will remain in force until the person or organization regains eligibility.

 

c)         The Department shall issue a warning to suspend or revoke the license of any person or organization violating the Act or this Part.

 

1)         Suspensions, revocations and warnings imposed under this subsection will range in duration from one day to one year.  The choice and duration of sanctions will be made on a case by case basis, and will be based on the licensee's history of compliance; the number, seriousness, and duration of violations; the cooperation extended to the Department by licensees in discontinuing and correcting violations; and the sanctions imposed on others by the Department under similar circumstances.

 

2)         The effective date of a suspension shall be not less than 25 days after the date the Department mails the notice to the licensee.  If the licensee requests a hearing within 20 days as provided in subsection (d)(2) below, the effective date of any suspension is stayed pending the outcome of the hearing, and the licensee may continue to operate under the license.  If a license expires during a stay of suspension, the licensee may continue to operate only if a substantially complete renewal application and application fee have been received by the Department prior to the expiration of the license.

 

d)         Notification of denial, warning, suspension, or revocation; requests for hearing:

 

1)         The Department shall send notices of denial, warning, suspension, or revocation by certified mail, return receipt requested, to the applicant or licensee at the mailing address stated on the applicant's or licensee's most recent license application.  All such notices will include a statement of the reasons for the Department's action.

 

2)         An applicant or licensee may request a hearing to contest the Department's action pursuant to 86 Ill. Adm. Code 200.  The request shall be in writing, and must be received by the Department within 20 days after the date the Department mailed the notice of its action to the applicant or licensee.

 

e)         Any person who violates the Act, or any person who files a fraudulent return under the Act, or any person who willfully violates this Part, or any officer or agent of a corporation licensed under the Act who signs a fraudulent return filed on behalf of such corporation is guilty of a Class A Misdemeanor.

 

(Source:  Amended at 15 Ill. Reg. 10944, effective July 10, 1991)

 

Section 430.200  Civil Penalties

 

a)         Any organization which conducts bingo without a license, or any organization licensed to conduct bingo which allows any form of illegal gambling to be conducted on the premises where bingo is being conducted, shall be subject to a civil penalty equal to the amount of gross proceeds derived on that day from bingo and any other illegal game that may have been conducted. The Department shall determine the amount of gross proceeds based on information available to the Department and its judgment of all the facts of each particular case and assess a penalty.  The amount of the penalty shall be on a case-by-base basis, and will be based on the licensee's history of compliance; the number, seriousness, and duration of violations; the cooperation extended to the Department by licensees in discontinuing and correcting violations; and the sanctions imposed on others by the Department under similar circumstances.

 

b)         Any person or organization, except a municipality exempt from licensing under Section 430.140, which provides premises for conducting bingo without having a license to do so, or any person or organization licensed to provide premises which allows an unlicensed organization to conduct bingo on his premises, or allows any form of illegal gambling to be conducted on the premises where bingo is being played shall be subject to a civil penalty of $5,000.

 

c)         In any case where an organization conducts bingo without a license, or where a licensed organization conducts bingo on a day, or at a time or place for which it is not licensed, the Department has the authority to confiscate all bingo equipment used in the conduct of those unlicensed games.

 

d)         Notice of assessment of a civil penalty shall be sent by certified mail, return receipt requested.  The person or organization against whom a civil penalty has been assessed shall remit, by certified check or money order payable to the Illinois Department of Revenue, the full amount of the penalty within 30 days from the date the notice was mailed unless, within the 30 days, the Department receives a request for a hearing, in which case the imposition of the civil penalty is stayed pending the outcome of the hearing.

 

e)         When bingo equipment is confiscated under subsection (c) above, the person or organization who was entitled to possession of the equipment at the time of confiscation may, within 30 days of the date of confiscation, request, in writing, a hearing.  The sole issue at such hearing shall be whether bingo was conducted without a license, or on a day, or at a time or place for which the organization was not properly licensed.

 

(Source:  Amended at 15 Ill. Reg. 10944, effective July 10, 1991)