101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5065

 

Introduced 2/18/2020, by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 40/45
230 ILCS 40/60
230 ILCS 40/65

    Amends the Video Gaming Act. Provides that imposing fees on an establishment authorized to conduct video gaming and on terminal operators is an exclusive power and function of the State. Prohibits a unit of local government with a population under 2,000,000 from applying any additional tax on net terminal income. Provides that a unit of local government (rather than a non-home rule unit of government) may not impose a fee for the operation of a video gaming terminal in excess of $100 per year (rather than $25). Provides that any unit of local government imposing a fee for the operation of a video gaming terminal in excess of $100 on or before January 1, 2020 may retain its fee structure but may not increase fees beyond the limit provided in the provisions. Provides that a home rule unity may not regulate the provisions in a manner inconsistent with the provisions. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOME RULE NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5065LRB101 20687 SMS 70351 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Video Gaming Act is amended by changing
5Sections 45, 60, and 65 as follows:
 
6    (230 ILCS 40/45)
7    Sec. 45. Issuance of license.
8    (a) The burden is upon each applicant to demonstrate his
9suitability for licensure. Each video gaming terminal
10manufacturer, distributor, supplier, operator, handler,
11licensed establishment, licensed truck stop establishment,
12licensed large truck stop establishment, licensed fraternal
13establishment, and licensed veterans establishment shall be
14licensed by the Board. The Board may issue or deny a license
15under this Act to any person pursuant to the same criteria set
16forth in Section 9 of the Illinois Gambling Act.
17    (a-5) The Board shall not grant a license to a person who
18has facilitated, enabled, or participated in the use of
19coin-operated devices for gambling purposes or who is under the
20significant influence or control of such a person. For the
21purposes of this Act, "facilitated, enabled, or participated in
22the use of coin-operated amusement devices for gambling
23purposes" means that the person has been convicted of any

 

 

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1violation of Article 28 of the Criminal Code of 1961 or the
2Criminal Code of 2012. If there is pending legal action against
3a person for any such violation, then the Board shall delay the
4licensure of that person until the legal action is resolved.
5    (b) Each person seeking and possessing a license as a video
6gaming terminal manufacturer, distributor, supplier, operator,
7handler, licensed establishment, licensed truck stop
8establishment, licensed large truck stop establishment,
9licensed fraternal establishment, or licensed veterans
10establishment shall submit to a background investigation
11conducted by the Board with the assistance of the State Police
12or other law enforcement. To the extent that the corporate
13structure of the applicant allows, the background
14investigation shall include any or all of the following as the
15Board deems appropriate or as provided by rule for each
16category of licensure: (i) each beneficiary of a trust, (ii)
17each partner of a partnership, (iii) each member of a limited
18liability company, (iv) each director and officer of a publicly
19or non-publicly held corporation, (v) each stockholder of a
20non-publicly held corporation, (vi) each stockholder of 5% or
21more of a publicly held corporation, or (vii) each stockholder
22of 5% or more in a parent or subsidiary corporation.
23    (c) Each person seeking and possessing a license as a video
24gaming terminal manufacturer, distributor, supplier, operator,
25handler, licensed establishment, licensed truck stop
26establishment, licensed large truck stop establishment,

 

 

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1licensed fraternal establishment, or licensed veterans
2establishment shall disclose the identity of every person,
3association, trust, corporation, or limited liability company
4having a greater than 1% direct or indirect pecuniary interest
5in the video gaming terminal operation for which the license is
6sought. If the disclosed entity is a trust, the application
7shall disclose the names and addresses of the beneficiaries; if
8a corporation, the names and addresses of all stockholders and
9directors; if a limited liability company, the names and
10addresses of all members; or if a partnership, the names and
11addresses of all partners, both general and limited.
12    (d) No person may be licensed as a video gaming terminal
13manufacturer, distributor, supplier, operator, handler,
14licensed establishment, licensed truck stop establishment,
15licensed large truck stop establishment, licensed fraternal
16establishment, or licensed veterans establishment if that
17person has been found by the Board to:
18        (1) have a background, including a criminal record,
19    reputation, habits, social or business associations, or
20    prior activities that pose a threat to the public interests
21    of the State or to the security and integrity of video
22    gaming;
23        (2) create or enhance the dangers of unsuitable,
24    unfair, or illegal practices, methods, and activities in
25    the conduct of video gaming; or
26        (3) present questionable business practices and

 

 

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1    financial arrangements incidental to the conduct of video
2    gaming activities.
3    (e) Any applicant for any license under this Act has the
4burden of proving his or her qualifications to the satisfaction
5of the Board. The Board may adopt rules to establish additional
6qualifications and requirements to preserve the integrity and
7security of video gaming in this State.
8    (f) A non-refundable application fee shall be paid at the
9time an application for a license is filed with the Board in
10the following amounts:
11        (1) Manufacturer..........................$5,000
12        (2) Distributor...........................$5,000
13        (3) Terminal operator.....................$5,000
14        (4) Supplier..............................$2,500
15        (5) Technician..............................$100
16        (6) Terminal Handler........................$100
17        (7) Licensed establishment, licensed truck stop
18    establishment, licensed large truck stop establishment,
19    licensed fraternal establishment, or licensed
20    veterans establishment...............................$100
21    (g) The Board shall establish an annual fee for each
22license not to exceed the following:
23        (1) Manufacturer.........................$10,000
24        (2) Distributor..........................$10,000
25        (3) Terminal operator.....................$5,000
26        (4) Supplier..............................$2,000

 

 

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1        (5) Technician..............................$100
2        (6) Licensed establishment, licensed truck stop
3    establishment, licensed large truck stop establishment,
4    licensed fraternal establishment, or licensed
5    veterans establishment..........................$100
6        (7) Video gaming terminal...................$100
7        (8) Terminal Handler............................$100 
8    (h) A terminal operator and a licensed establishment,
9licensed truck stop establishment, licensed large truck stop
10establishment, licensed fraternal establishment, or licensed
11veterans establishment shall equally split the fees specified
12in item (7) of subsection (g).
13    (i) Imposing fees for licensed establishments, licensed
14truck stop establishments, licensed large truck stop
15establishments, licensed fraternal establishments, licensed
16veterans establishments, and terminal operators is an
17exclusive power and function of the State. A home rule unit may
18not impose fees for licensed establishments, licensed truck
19stop establishments, licensed large truck stop establishments,
20licensed fraternal establishments, licensed veterans
21establishments, and terminal operators. This subsection (i) is
22a denial and limitation of home rule powers and functions under
23subsection (h) of Section 6 of Article VII of the Illinois
24Constitution.
25(Source: P.A. 100-1152, eff. 12-14-18; 101-31, eff. 6-28-19.)
 

 

 

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1    (230 ILCS 40/60)
2    Sec. 60. Imposition and distribution of tax.
3    (a) A tax of 30% is imposed on net terminal income and
4shall be collected by the Board.
5    Of the tax collected under this subsection (a), five-sixths
6shall be deposited into the Capital Projects Fund and one-sixth
7shall be deposited into the Local Government Video Gaming
8Distributive Fund.
9    (b) Beginning on July 1, 2019, an additional tax of 3% is
10imposed on net terminal income and shall be collected by the
11Board.
12    Beginning on July 1, 2020, an additional tax of 1% is
13imposed on net terminal income and shall be collected by the
14Board.
15    The tax collected under this subsection (b) shall be
16deposited into the Capital Projects Fund.
17    (c) Revenues generated from the play of video gaming
18terminals shall be deposited by the terminal operator, who is
19responsible for tax payments, in a specially created, separate
20bank account maintained by the video gaming terminal operator
21to allow for electronic fund transfers of moneys for tax
22payment.
23    (d) Each licensed establishment, licensed truck stop
24establishment, licensed large truck stop establishment,
25licensed fraternal establishment, and licensed veterans
26establishment shall maintain an adequate video gaming fund,

 

 

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1with the amount to be determined by the Board.
2    (e) The State's percentage of net terminal income shall be
3reported and remitted to the Board within 15 days after the
415th day of each month and within 15 days after the end of each
5month by the video terminal operator. A video terminal operator
6who falsely reports or fails to report the amount due required
7by this Section is guilty of a Class 4 felony and is subject to
8termination of his or her license by the Board. Each video
9terminal operator shall keep a record of net terminal income in
10such form as the Board may require. All payments not remitted
11when due shall be paid together with a penalty assessment on
12the unpaid balance at a rate of 1.5% per month.
13    (f) A unit of local government with a population under
142,000,000 people is prohibited from applying any additional tax
15on net terminal income.
16(Source: P.A. 101-31, eff. 6-28-19.)
 
17    (230 ILCS 40/65)
18    Sec. 65. Fees. Except as provided in this Section, a
19non-home rule unit of local government may not impose any fee
20for the operation of a video gaming terminal in excess of $100
21$25 per year. The City of Rockford may not impose any fee for
22the operation of a video gaming terminal in excess of $250 per
23year.
24    Any unit of local government imposing a fee for the
25operation of a video gaming terminal in excess of $100 on or

 

 

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1before January 1, 2020 may retain its fee structure but may not
2increase fees beyond the limit provided in this Section.
3    A home rule unit may not regulate the provisions of this
4Section in a manner inconsistent with this Section. This
5Section is a limitation under subsection (i) of Section 6 of
6Article VII of the Illinois Constitution on the concurrent
7exercise by home rule units of powers and functions exercised
8by the State.
9(Source: P.A. 101-337, eff. 1-1-20.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.