HB5205 103RD GENERAL ASSEMBLY

LRB103 38359 AWJ 68494 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5205

Introduced 2/9/2024, by Rep. Brad Halbrook

SYNOPSIS AS INTRODUCED:

230 ILCS 40/45

Amends the Video Gaming Act. Provides that the Illinois Gaming Board shall establish a database that contains the following variables: the population of each municipality and unincorporated county area in which video gaming has not been prohibited; the number of licensed establishments within each municipality and unincorporated county area that has been listed by population in the database; and the ratio, as measured in licensed establishments per 1,000 residents, within each municipality and unincorporated county area listed by population in the database. Provides that, notwithstanding any other provision of law, no new license shall be issued to an applicant for licensure as a licensed establishment if the applicant is located within a municipality or unincorporated county area in which there is more than one licensed establishment per 1,000 residents; and when a municipality or unincorporated county area exists with more than one licensed establishment per 1,000 residents, the Board shall deny a licensed establishment's application to renew its license until the number of licensed establishments within the political subdivision has dropped to a ratio that is equal to, or less than, one license establishment per 1,000 residents. Specifies that the provisions shall not infringe upon the right of a licensed establishment to continue to enjoy licensure as a licensed establishment for the duration of the license that has been awarded to the establishment before the effective date of the amendatory Act. Effective immediately.

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 Video Gaming Act is amended by changing Section 45 as follows:

(230 ILCS 40/45)

Sec. 45. Issuance of license.

(a) The burden is upon each applicant to demonstrate his suitability for licensure. Each video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, and licensed veterans establishment shall be licensed by the Board. The Board may issue or deny a license under this Act to any person pursuant to the same criteria set forth in Section 9 of the Illinois Gambling Act.

(a-5) The Board shall not grant a license to a person who has facilitated, enabled, or participated in the use of coin-operated devices for gambling purposes or who is under the significant influence or control of such a person. For the purposes of this Act, "facilitated, enabled, or participated in the use of coin-operated amusement devices for gambling purposes" means that the person has been convicted of any violation of Article 28 of the Criminal Code of 1961 or the Criminal Code of 2012. If there is pending legal action against a person for any such violation, then the Board shall delay the licensure of that person until the legal action is resolved.

(b) Each person seeking and possessing a license as a video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment shall submit to a background investigation conducted by the Board with the assistance of the Illinois State Police or other law enforcement. To the extent that the corporate structure of the applicant allows, the background investigation shall include any or all of the following as the Board deems appropriate or as provided by rule for each category of licensure: (i) each beneficiary of a trust, (ii) each partner of a partnership, (iii) each member of a limited liability company, (iv) each director and officer of a publicly or non-publicly held corporation, (v) each stockholder of a non-publicly held corporation, (vi) each stockholder of 5% or more of a publicly held corporation, or (vii) each stockholder of 5% or more in a parent or subsidiary corporation.

(c) Each person seeking and possessing a license as a video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment shall disclose the identity of every person, association, trust, corporation, or limited liability company having a greater than 1% direct or indirect pecuniary interest in the video gaming terminal operation for which the license is sought. If the disclosed entity is a trust, the application shall disclose the names and addresses of the beneficiaries; if a corporation, the names and addresses of all stockholders and directors; if a limited liability company, the names and addresses of all members; or if a partnership, the names and addresses of all partners, both general and limited.

(d) No person may be licensed as a video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment if that person has been found by the Board to:

(1) have a background, including a criminal record, reputation, habits, social or business associations, or prior activities that pose a threat to the public interests of the State or to the security and integrity of video gaming;

(2) create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of video gaming; or

(3) present questionable business practices and financial arrangements incidental to the conduct of video gaming activities.

(d-5) The Board shall establish and maintain a database that contains the following variables:

(1) the population, as published by the most recent decennial census of population published by the United States Census Bureau, of each municipality and unincorporated area of a county in which video gaming has not been prohibited under Section 27;

(2) the number of licensed establishments within each municipality and unincorporated county area that has been listed by population under item (1); and

(3) the ratio, as measured in licensed establishments per 1,000 residents, within each municipality and unincorporated county area listed by population under item (1).

Notwithstanding any other provision of law, no new license shall be issued to an applicant for licensure as a licensed establishment if the applicant is located within a municipality or unincorporated county area in which there is more than one licensed establishment per 1,000 residents; and when a municipality or unincorporated county area exists with more than one licensed establishment per 1,000 residents, the Board shall deny a licensed establishment's application to renew its license until the number of licensed establishments within the municipality or unincorporated area of the county has dropped to a ratio that is equal to, or less than, one license establishment per 1,000 residents.

Nothing in this subsection shall infringe upon the right of a licensed establishment in valid possession of a license on the effective date of this amendatory Act of the 103rd General Assembly to continue to enjoy licensure as a licensed establishment for the duration of the license that has been awarded to the establishment before the effective date of this amendatory Act of the 103rd General Assembly.

(e) Any applicant for any license under this Act has the burden of proving his or her qualifications to the satisfaction of the Board. The Board may adopt rules to establish additional qualifications and requirements to preserve the integrity and security of video gaming in this State.

(f) A non-refundable application fee shall be paid at the time an application for a license is filed with the Board in the following amounts:

(1) Manufacturer..........................$5,000

(2) Distributor...........................$5,000

(3) Terminal operator.....................$5,000

(4) Supplier..............................$2,500

(5) Technician..............................$100

(6) Terminal Handler........................$100

(7) Licensed establishment, licensed truck stop

establishment, licensed large truck stop establishment,

licensed fraternal establishment, or licensed

veterans establishment...............................$100

(8) Sales agent and broker.......................$100

(g) The Board shall establish an annual fee for each license not to exceed the following:

(1) Manufacturer.........................$10,000

(2) Distributor..........................$10,000

(3) Terminal operator.....................$5,000

(4) Supplier..............................$2,000

(5) Technician..............................$100

(6) Licensed establishment, licensed truck stop

establishment, licensed large truck stop establishment,

licensed fraternal establishment, or licensed

veterans establishment..........................$100

(7) Video gaming terminal...................$100

(8) Terminal Handler............................$100

(9) Sales agent and broker.......................$100

(h) A terminal operator and a licensed establishment, licensed truck stop establishment, licensed large truck stop establishment, licensed fraternal establishment, or licensed veterans establishment shall equally split the fees specified in item (7) of subsection (g).

(Source: P.A. 101-31, eff. 6-28-19; 102-538, eff. 8-20-21; 102-689, eff. 12-17-21.)

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