Full Text of SB0209 100th General Assembly
SB0209sam001 100TH GENERAL ASSEMBLY | Sen. Terry Link Filed: 5/29/2017
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| 1 | | AMENDMENT TO SENATE BILL 209
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 209 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Video Gaming
Act is amended by changing | 5 | | Sections 20 and 25 as follows: | 6 | | (230 ILCS 40/20)
| 7 | | Sec. 20. Direct dispensing of receipt tickets only. A video | 8 | | gaming
terminal may not
directly dispense coins, cash, tokens, | 9 | | or any other article of exchange or
value except for receipt | 10 | | tickets. Tickets shall be dispensed by
pressing the ticket | 11 | | dispensing button on the video gaming terminal at the end
of | 12 | | one's turn or play. The ticket shall indicate the total amount | 13 | | of credits
and the cash award, the time of day in a 24-hour | 14 | | format showing hours and
minutes, the date, the
terminal serial | 15 | | number, the sequential number of the ticket, and an encrypted
| 16 | | validation number from which the validity of the prize may be |
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| 1 | | determined.
The player shall turn in this ticket to the | 2 | | appropriate
person at the licensed establishment, licensed | 3 | | truck stop establishment, licensed fraternal establishment,
or
| 4 | | licensed veterans establishment
to receive the cash award. The | 5 | | cost
of the credit shall be one cent, 5 cents, 10 cents, or 25 | 6 | | cents, and the maximum
wager played per hand shall not exceed | 7 | | $4 $2 .
No cash award for the maximum wager on any
individual | 8 | | hand shall exceed $1,199 $500 . No cash award for the maximum | 9 | | wager on a jackpot, progressive or otherwise, shall exceed | 10 | | $10,000.
| 11 | | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)
| 12 | | (230 ILCS 40/25)
| 13 | | Sec. 25. Restriction of licensees.
| 14 | | (a) Manufacturer. A person may not be licensed as a | 15 | | manufacturer of a
video gaming terminal in Illinois unless the | 16 | | person has a valid
manufacturer's license issued
under this | 17 | | Act. A manufacturer may only sell video gaming terminals for | 18 | | use
in Illinois to
persons having a valid distributor's | 19 | | license.
| 20 | | (b) Distributor. A person may not sell, distribute, or | 21 | | lease
or market a video gaming terminal in Illinois unless the | 22 | | person has a valid
distributor's
license issued under this Act. | 23 | | A distributor may only sell video gaming
terminals for use in
| 24 | | Illinois to persons having a valid distributor's or terminal | 25 | | operator's
license.
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| 1 | | (c) Terminal operator. A person may not own, maintain, or | 2 | | place a video gaming terminal unless he has a valid terminal | 3 | | operator's
license issued
under this Act. A terminal operator | 4 | | may only place video gaming terminals for
use in
Illinois in | 5 | | licensed establishments, licensed truck stop establishments, | 6 | | licensed fraternal establishments,
and
licensed veterans | 7 | | establishments.
No terminal operator or officer, employee, or | 8 | | agent of a terminal operator may offer, promise, or give | 9 | | anything of value, including , but not limited to ,
a loan or | 10 | | financing arrangement, to a licensed establishment, licensed | 11 | | truck stop establishment,
licensed fraternal establishment, or | 12 | | licensed veterans establishment in accordance with an | 13 | | agreement or arrangement or with the intent that the offer, | 14 | | promise, or gift of the thing of value shall act as
an any | 15 | | incentive or inducement with respect to locating or maintaining | 16 | | locate video terminals in that establishment. The following | 17 | | items and activities are permissible and do not constitute "of | 18 | | value" violations under this subsection: | 19 | | (1) A terminal operator may reimburse a licensed | 20 | | establishment, licensed truck stop establishment, licensed | 21 | | fraternal establishment, or licensed veterans | 22 | | establishment for the actual cost of the food or | 23 | | non-alcoholic beverages given directly to video gaming | 24 | | terminal players in an amount not to exceed 5% of the | 25 | | terminal operator's monthly share of net terminal income if | 26 | | the licensed location has, for the preceding 6 consecutive |
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| 1 | | calendar months, averaged monthly cumulative net terminal | 2 | | income for the location equivalent to net terminal income | 3 | | of at least $120 per day per video gaming terminal | 4 | | immediately on the premises, and if the reimbursement | 5 | | terms, including the requirement that the terminal | 6 | | operator be provided with receipts or documentation of the | 7 | | actual cost of the food or non-alcoholic beverages, are set | 8 | | forth in the written use agreement between the parties. In | 9 | | the event of the authorization of a players' rewards | 10 | | program, if food or non-alcoholic beverage awards are made | 11 | | available through the program, then a terminal operator may | 12 | | reimburse a licensed establishment, licensed truck stop | 13 | | establishment, licensed fraternal establishment, or | 14 | | licensed veterans establishment up to 50% of the actual | 15 | | cost of the food or non-alcoholic beverages awarded, and | 16 | | the reimbursement terms, including the requirement that | 17 | | the terminal operator be provided with receipts or | 18 | | documentation of the actual cost of the food or | 19 | | non-alcoholic beverages, are set forth in the written use | 20 | | agreement between the parties. | 21 | | (2) A terminal operator may reimburse a licensed | 22 | | establishment, licensed truck stop establishment, licensed | 23 | | fraternal establishment, or licensed veterans | 24 | | establishment for up to 50% of the actual cost of | 25 | | promotional items, excluding food or non-alcoholic | 26 | | beverages, of more than nominal value, such as vacation |
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| 1 | | trips and prizes that are given directly to video gaming | 2 | | terminal players if the reimbursement terms, including the | 3 | | requirement that the terminal operator be provided with | 4 | | receipts or documentation of the actual cost of these | 5 | | items, are set forth in the written use agreement between | 6 | | the parties. The cost of promotional items of nominal value | 7 | | that bear a logo or name and that are given to patrons or | 8 | | video gaming terminal players, however, may not be | 9 | | reimbursed or shared and shall be paid for entirely by the | 10 | | terminal operator or the licensed location whose name or | 11 | | logo appears on the item. As used in this paragraph, | 12 | | "promotional items of nominal value" does not include gift | 13 | | cards, gift certificates, cash, and cash equivalents. | 14 | | (3) A terminal operator may reimburse a licensed | 15 | | establishment, licensed truck stop establishment, licensed | 16 | | fraternal establishment, or licensed veterans | 17 | | establishment for up to 50% of the actual cost of | 18 | | advertising that promotes video gaming at that licensed | 19 | | location if the reimbursement terms, including the | 20 | | requirement that the terminal operator be provided with | 21 | | receipts or documentation of the actual cost of the | 22 | | advertising, are set forth in the written use agreement | 23 | | between the parties. | 24 | | The Board shall adopt rules concerning the items and | 25 | | activities permissible under this subsection as well as other | 26 | | activities that do not constitute "of value" violations under |
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| 1 | | this subsection.
| 2 | | Of the after-tax profits
from a video gaming terminal, 50% | 3 | | shall be paid to the terminal
operator and 50% shall be paid to | 4 | | the licensed establishment, licensed truck stop establishment,
| 5 | | licensed fraternal establishment, or
licensed veterans | 6 | | establishment, notwithstanding any agreement to the contrary.
| 7 | | A video terminal operator or licensed location that violates | 8 | | one or more requirements of this subsection is guilty of a | 9 | | Class 4 felony and is subject to termination of his or her | 10 | | license by the Board.
| 11 | | (d) Licensed technician. A person may not service, | 12 | | maintain, or repair a
video gaming terminal
in this State | 13 | | unless he or she (1) has a valid technician's license issued
| 14 | | under this Act, (2) is a terminal operator, or (3) is employed | 15 | | by a terminal
operator, distributor, or manufacturer.
| 16 | | (d-5) Licensed terminal handler. No person, including, but | 17 | | not limited to, an employee or independent contractor working | 18 | | for a manufacturer, distributor, supplier, technician, or | 19 | | terminal operator licensed pursuant to this Act, shall have | 20 | | possession or control of a video gaming terminal, or access to | 21 | | the inner workings of a video gaming terminal, unless that | 22 | | person possesses a valid terminal handler's license issued | 23 | | under this Act. | 24 | | (e) Licensed establishment. No video gaming terminal may be | 25 | | placed in any licensed establishment, licensed veterans | 26 | | establishment, licensed truck stop establishment,
or licensed |
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| 1 | | fraternal establishment
unless the owner
or agent of the owner | 2 | | of the licensed establishment, licensed veterans | 3 | | establishment, licensed truck stop establishment, or licensed
| 4 | | fraternal establishment has entered into a
written use | 5 | | agreement with the terminal operator for placement of the
| 6 | | terminals. A copy of the use agreement shall be on file in the | 7 | | terminal
operator's place of business and available for | 8 | | inspection by individuals
authorized by the Board. | 9 | | (e-5) A licensed establishment, licensed truck stop | 10 | | establishment, licensed veterans establishment,
or
licensed
| 11 | | fraternal
establishment may operate up to 5 video gaming | 12 | | terminals on its premises at any
time.
| 13 | | (f) (Blank).
| 14 | | (g) Financial interest restrictions.
As used in this Act, | 15 | | "substantial interest" in a partnership, a corporation, an
| 16 | | organization, an association, a business, or a limited | 17 | | liability company means:
| 18 | | (A) When, with respect to a sole proprietorship, an | 19 | | individual or
his or her spouse owns, operates, manages, or | 20 | | conducts, directly
or indirectly, the organization, | 21 | | association, or business, or any part thereof;
or
| 22 | | (B) When, with respect to a partnership, the individual | 23 | | or his or
her spouse shares in any of the profits, or | 24 | | potential profits,
of the partnership activities; or
| 25 | | (C) When, with respect to a corporation, an individual | 26 | | or his or her
spouse is an officer or director, or the |
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| 1 | | individual or his or her spouse is a holder, directly or | 2 | | beneficially, of 5% or more of any class
of stock of the | 3 | | corporation; or
| 4 | | (D) When, with respect to an organization not covered | 5 | | in (A), (B) or
(C) above, an individual or his or her | 6 | | spouse is an officer or manages the
business affairs, or | 7 | | the individual or his or her spouse is the
owner of or | 8 | | otherwise controls 10% or more of the assets of the | 9 | | organization;
or
| 10 | | (E) When an individual or his or her spouse furnishes
| 11 | | 5% or more of the capital, whether in cash, goods, or | 12 | | services, for the
operation of any business, association, | 13 | | or organization during any calendar
year; or | 14 | | (F) When, with respect to a limited liability company, | 15 | | an individual or his or her
spouse is a member, or the | 16 | | individual or his or her spouse is a holder, directly or | 17 | | beneficially, of 5% or more of the membership interest of | 18 | | the limited liability company.
| 19 | | For purposes of this subsection (g), "individual" includes | 20 | | all individuals or their spouses whose combined interest would | 21 | | qualify as a substantial interest under this subsection (g) and | 22 | | whose activities with respect to an organization, association, | 23 | | or business are so closely aligned or coordinated as to | 24 | | constitute the activities of a single entity. | 25 | | (h) Location restriction. A licensed establishment, | 26 | | licensed truck stop establishment, licensed
fraternal
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| 1 | | establishment, or licensed veterans establishment that is (i) | 2 | | located within 1,000
feet of a facility operated by an | 3 | | organization licensee licensed under the Illinois Horse Racing | 4 | | Act of 1975 or the home dock of a riverboat licensed under the | 5 | | Riverboat
Gambling Act or (ii) located within 100 feet of a | 6 | | school or a place of worship under the Religious Corporation | 7 | | Act, is ineligible to operate a video gaming terminal. The | 8 | | location restrictions in this subsection (h) do not apply if | 9 | | (A) a facility operated by an organization licensee, a school, | 10 | | or a place of worship moves to or is established within the | 11 | | restricted area after a licensed establishment, licensed truck | 12 | | stop establishment, licensed fraternal establishment, or | 13 | | licensed veterans establishment becomes licensed under this | 14 | | Act or (B) a school or place of worship moves to or is | 15 | | established within the restricted area after a licensed | 16 | | establishment, licensed truck stop establishment, licensed | 17 | | fraternal establishment, or licensed veterans establishment | 18 | | obtains its original liquor license. For the purpose of this | 19 | | subsection, "school" means an elementary or secondary public | 20 | | school, or an elementary or secondary private school registered | 21 | | with or recognized by the State Board of Education. | 22 | | Notwithstanding the provisions of this subsection (h), the | 23 | | Board may waive the requirement that a licensed establishment, | 24 | | licensed truck stop establishment, licensed fraternal | 25 | | establishment, or licensed veterans establishment not be | 26 | | located within 1,000 feet from a facility operated by an |
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| 1 | | organization licensee licensed under the Illinois Horse Racing | 2 | | Act of 1975 or the home dock of a riverboat licensed under the | 3 | | Riverboat Gambling Act. The Board shall not grant such waiver | 4 | | if there is any common ownership or control, shared business | 5 | | activity, or contractual arrangement of any type between the | 6 | | establishment and the organization licensee or owners licensee | 7 | | of a riverboat. The Board shall adopt rules to implement the | 8 | | provisions of this paragraph. | 9 | | (i) Undue economic concentration. In addition to | 10 | | considering all other requirements under this Act, in deciding | 11 | | whether to approve the operation of video gaming terminals by a | 12 | | terminal operator in a location, the Board shall consider the | 13 | | impact of any economic concentration of such operation of video | 14 | | gaming terminals. The Board shall not allow a terminal operator | 15 | | to operate video gaming terminals if the Board determines such | 16 | | operation will result in undue economic concentration. For | 17 | | purposes of this Section, "undue economic concentration" means | 18 | | that a terminal operator would have such actual or potential | 19 | | influence over video gaming terminals in Illinois as to: | 20 | | (1) substantially impede or suppress competition among | 21 | | terminal operators; | 22 | | (2) adversely impact the economic stability of the | 23 | | video gaming industry in Illinois; or | 24 | | (3) negatively impact the purposes of the Video Gaming | 25 | | Act. | 26 | | The Board shall adopt rules concerning undue economic |
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| 1 | | concentration with respect to the operation of video gaming | 2 | | terminals in Illinois. The rules shall include, but not be | 3 | | limited to, (i) limitations on the number of video gaming | 4 | | terminals operated by any terminal operator within a defined | 5 | | geographic radius and (ii) guidelines on the discontinuation of | 6 | | operation of any such video gaming terminals the Board | 7 | | determines will cause undue economic concentration.
| 8 | | (j) The provisions of the Illinois Antitrust Act are fully | 9 | | and equally applicable to the activities of any licensee under | 10 | | this Act.
| 11 | | (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77, | 12 | | eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.".
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