SB0535 102ND GENERAL ASSEMBLY

LRB102 05176 SMS 15197 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0535

Introduced 2/23/2021, by Sen. Bill Cunningham

SYNOPSIS AS INTRODUCED:

230 ILCS 10/8	from Ch. 120, par. 2408
230 ILCS 10/8.1 new
230 ILCS 40/50
230 ILCS 45/25-50

Amends the Illinois Gambling Act. Provides that an applicant for a suppliers license under the Act that already holds a specified license issued by the Illinois Gaming Board is entitled to licensure as a supplier under the Act without additional Board investigation or approval, except by a vote of the Board. Provides that an initial suppliers license shall be issued for 4 years and may be renewed for additional 4-year periods. Provides that if a holder of a specified license issued by the Board is granted an additional license issued by the Board, the initial period of the new license shall expire at the earliest expiration date of any other specified licenses held by the licensee. Amends the Video Gaming Act. Changes the period for a terminal handler, technician, licensed establishment, licensed truck stop establishment, licensed large truck establishment, licensed fraternal establishment, and licensed fraternal establishment license from one year to 2 years. Changes the period for a manufacturer, distributor, supplier, and terminal operator license from one year to 4 years. Amends the Sports Wagering Act. Changes the renewal period for a supplier license from one year to 4 years. Provides that beginning 4 years after issuance of the initial supplier license, a holder of a supplier license shall pay a $150,000 annual license fee. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Gambling Act is amended by changing Section 8 and by adding Section 8.1 as follows:

(230 ILCS 10/8) (from Ch. 120, par. 2408)

Sec. 8. Suppliers licenses.

(a) The Board may issue a suppliers license to such persons, firms or corporations which apply therefor upon the payment of a non-refundable application fee set by the Board, upon a determination by the Board that the applicant is eligible for a suppliers license and upon payment of a $5,000 annual license fee. At the time of application for a supplier license under this Act, a person that holds a license as a manufacturer, distributor, or supplier under the Video Gaming Act or a supplier license under the Sports Wagering Act shall be entitled to licensure under this Act as a supplier without additional Board investigation or approval, except by vote of the Board; however, the applicant shall pay all fees required for a suppliers license under this Act.

(a-5) Except as provided by Section 8.1, the initial suppliers license shall be issued for 4 years. Thereafter, the license may be renewed for additional 4-year periods unless sooner cancelled or terminated.

(b) The holder of a suppliers license is authorized to sell or lease, and to contract to sell or lease, gambling equipment and supplies to any licensee involved in the ownership or management of gambling operations.

(c) Gambling supplies and equipment may not be distributed unless supplies and equipment conform to standards adopted by rules of the Board.

(d) A person, firm or corporation is ineligible to receive a suppliers license if:

(1) the person has been convicted of a felony under the laws of this State, any other state, or the United States;

(2) the person has been convicted of any violation of Article 28 of the Criminal Code of 1961 or the Criminal Code of 2012, or substantially similar laws of any other jurisdiction;

(3) the person has submitted an application for a license under this Act which contains false information;

(4) the person is a member of the Board;

(5) the entity is one in which a person defined in (1), (2), (3) or (4), is an officer, director or managerial employee;

(6) the firm or corporation employs a person who participates in the management or operation of gambling authorized under this Act;

(7) the license of the person, firm or corporation issued under this Act, or a license to own or operate gambling facilities in any other jurisdiction, has been revoked.

(e) Any person that supplies any equipment, devices, or supplies to a licensed gambling operation must first obtain a suppliers license. A supplier shall furnish to the Board a list of all equipment, devices and supplies offered for sale or lease in connection with gambling games authorized under this Act. A supplier shall keep books and records for the furnishing of equipment, devices and supplies to gambling operations separate and distinct from any other business that the supplier might operate. A supplier shall file a quarterly return with the Board listing all sales and leases. A supplier shall permanently affix its name or a distinctive logo or other mark or design element identifying the manufacturer or supplier to all its equipment, devices, and supplies, except gaming chips without a value impressed, engraved, or imprinted on it, for gambling operations. The Board may waive this requirement for any specific product or products if it determines that the requirement is not necessary to protect the integrity of the game. Items purchased from a licensed supplier may continue to be used even though the supplier subsequently changes its name, distinctive logo, or other mark or design element; undergoes a change in ownership; or ceases to be licensed as a supplier for any reason. Any supplier's equipment, devices or supplies which are used by any person in an unauthorized gambling operation shall be forfeited to the State. A holder of an owners license or an organization gaming license may own its own equipment, devices and supplies. Each holder of an owners license or an organization gaming license under the Act shall file an annual report listing its inventories of gambling equipment, devices and supplies.

(f) Any person who knowingly makes a false statement on an application is guilty of a Class A misdemeanor.

(g) Any gambling equipment, devices and supplies provided by any licensed supplier may either be repaired on the riverboat, in the casino, or at the organization gaming facility or removed from the riverboat, casino, or organization gaming facility to a facility owned by the holder of an owners license, organization gaming license, or suppliers license for repair.

(Source: P.A. 101-31, eff. 6-28-19.)

(230 ILCS 10/8.1 new)

Sec. 8.1. Harmonization of supplier category licenses.

(a) As used in this Section, "supplier category license" means a suppliers license issued under this Act, a supplier license issued under the Sports Wagering Act, or a manufacturer, distributor, or supplier license issued under the Video Gaming Act.

(b) If a holder of any supplier category license is granted an additional supplier category license, the initial period of the new supplier category license shall expire at the earliest expiration date of any other supplier category license held by the licensee. If a licensee holds multiple supplier category licenses on the effective date of this amendatory Act of the 102nd General Assembly, all supplier category licenses shall expire at the earliest expiration date of any of the supplier category licenses held by the licensee.

Section 10. The Video Gaming Act is amended by changing Section 50 as follows:

(230 ILCS 40/50)

Sec. 50. Distribution of license fees.

(a) All fees collected under Section 45 shall be deposited into the State Gaming Fund.

(b) Fees collected under Section 45 shall be used as follows:

(1) Twenty-five percent shall be paid, subject to appropriation by the General Assembly, to the Department of Human Services for administration of programs for the treatment of compulsive gambling.

(2) Seventy-five percent shall be used for the administration of this Act.

(c) All initial terminal handler, technician, licensed establishment, licensed truck stop establishment, licensed large truck establishment, licensed fraternal establishment, and licensed fraternal establishment licenses issued by the Board under this Act shall be issued for 2 years and are renewable for additional 2-year periods annually unless sooner cancelled or terminated. Except as provided by Section 8.1 of the Illinois Gambling Act, all initial manufacturer, distributor, supplier, and terminal operator licenses issued by the Board under this Act shall be issued for 4 years and are renewable for additional 4-year periods unless sooner cancelled or terminated. No license issued under this Act is transferable or assignable.

(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)

Section 15. The Sports Wagering Act is amended by changing Section 25-50 as follows:

(230 ILCS 45/25-50)

Sec. 25-50. Supplier license.

(a) The Board may issue a supplier license to a person to sell or lease sports wagering equipment, systems, or other gaming items to conduct sports wagering and offer services related to the equipment or other gaming items and data to a master sports wagering licensee while the license is active.

(b) The Board may adopt rules establishing additional requirements for a supplier and any system or other equipment utilized for sports wagering. The Board may accept licensing by another jurisdiction that it specifically determines to have similar licensing requirements as evidence the applicant meets supplier licensing requirements.

(c) An applicant for a supplier license shall demonstrate that the equipment, system, or services that the applicant plans to offer to the master sports wagering licensee conforms to standards established by the Board and applicable State law. The Board may accept approval by another jurisdiction that it specifically determines have similar equipment standards as evidence the applicant meets the standards established by the Board and applicable State law.

(d) Applicants shall pay to the Board a nonrefundable license and application fee in the amount of $150,000. Except as provided by Section 8.1 of the Illinois Gambling Act, the initial supplier license shall be issued for 4 years unless sooner cancelled or terminated. After the initial period 4-year term, the Board shall renew supplier licenses for additional 4-year periods unless sooner cancelled or terminated annually thereafter. Renewal of a supplier license shall be granted to a renewal applicant who has continued to comply with all applicable statutory and regulatory requirements, upon submission of the Board-issued renewal form and payment of a $150,000 renewal fee. Beginning 4 years after issuance of the initial supplier license, a holder of a supplier license shall pay a $150,000 annual license fee.

(e) A supplier shall submit to the Board a list of all sports wagering equipment and services sold, delivered, or offered to a master sports wagering licensee in this State, as required by the Board, all of which must be tested and approved by an independent testing laboratory approved by the Board. A master sports wagering licensee may continue to use supplies acquired from a licensed supplier, even if a supplier's license expires or is otherwise canceled, unless the Board finds a defect in the supplies.

(Source: P.A. 101-31, eff. 6-28-19.)

Section 99. Effective date. This Act takes effect upon becoming law.