Full Text of SB1804 100th General Assembly
SB1804ham001 100TH GENERAL ASSEMBLY | Rep. Chad Hays Filed: 5/22/2017
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| 1 | | AMENDMENT TO SENATE BILL 1804
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1804 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Video Gaming
Act is amended by changing | 5 | | Sections 25, 27, 45, and 80 and by adding Section 78.5 as | 6 | | follows:
| 7 | | (230 ILCS 40/25)
| 8 | | Sec. 25. Restriction of licensees.
| 9 | | (a) Manufacturer. A person may not be licensed as a | 10 | | manufacturer of a
video gaming terminal in Illinois unless the | 11 | | person has a valid
manufacturer's license issued
under this | 12 | | Act. A manufacturer may only sell video gaming terminals for | 13 | | use
in Illinois to
persons having a valid distributor's | 14 | | license.
| 15 | | (b) Distributor. A person may not sell, distribute, or | 16 | | lease
or market a video gaming terminal in Illinois unless the |
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| 1 | | person has a valid
distributor's
license issued under this Act. | 2 | | A distributor may only sell video gaming
terminals for use in
| 3 | | Illinois to persons having a valid distributor's or terminal | 4 | | operator's
license.
| 5 | | (c) Terminal operator. A person may not own, maintain, or | 6 | | place a video gaming terminal unless he has a valid terminal | 7 | | operator's
license issued
under this Act. A terminal operator | 8 | | may only place video gaming terminals for
use in
Illinois in | 9 | | licensed establishments, licensed truck stop establishments, | 10 | | licensed fraternal establishments,
and
licensed veterans | 11 | | establishments.
No terminal operator may give anything of | 12 | | value, including but not limited to
a loan or financing | 13 | | arrangement, to a licensed establishment, licensed truck stop | 14 | | establishment,
licensed fraternal establishment, or licensed | 15 | | veterans establishment as
any incentive or inducement to locate | 16 | | video terminals in that establishment.
Of the after-tax profits
| 17 | | from a video gaming terminal, 50% shall be paid to the terminal
| 18 | | operator and 50% shall be paid to the licensed establishment, | 19 | | licensed truck stop establishment,
licensed fraternal | 20 | | establishment, or
licensed veterans establishment, | 21 | | notwithstanding any agreement to the contrary.
A video terminal | 22 | | operator that violates one or more requirements of this | 23 | | subsection is guilty of a Class 4 felony and is subject to | 24 | | termination of his or her license by the Board.
| 25 | | (d) Licensed technician. A person may not service, | 26 | | maintain, or repair a
video gaming terminal
in this State |
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| 1 | | unless he or she (1) has a valid technician's license issued
| 2 | | under this Act, (2) is a terminal operator, or (3) is employed | 3 | | by a terminal
operator, distributor, or manufacturer.
| 4 | | (d-5) Licensed terminal handler. No person, including, but | 5 | | not limited to, an employee or independent contractor working | 6 | | for a manufacturer, distributor, supplier, technician, or | 7 | | terminal operator licensed pursuant to this Act, shall have | 8 | | possession or control of a video gaming terminal, or access to | 9 | | the inner workings of a video gaming terminal, unless that | 10 | | person possesses a valid terminal handler's license issued | 11 | | under this Act. | 12 | | (e) Licensed establishment. No video gaming terminal may be | 13 | | placed in any licensed establishment, licensed veterans | 14 | | establishment, licensed truck stop establishment,
or licensed | 15 | | fraternal establishment
unless the owner
or agent of the owner | 16 | | of the licensed establishment, licensed veterans | 17 | | establishment, licensed truck stop establishment, or licensed
| 18 | | fraternal establishment has entered into a
written use | 19 | | agreement with the terminal operator for placement of the
| 20 | | terminals. A copy of the use agreement shall be on file in the | 21 | | terminal
operator's place of business and available for | 22 | | inspection by individuals
authorized by the Board. A licensed | 23 | | establishment, licensed truck stop establishment, licensed | 24 | | veterans establishment,
or
licensed
fraternal
establishment | 25 | | may operate up to 5 video gaming terminals on its premises at | 26 | | any
time.
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| 1 | | (f) (Blank).
| 2 | | (g) Financial interest restrictions.
As used in this Act, | 3 | | "substantial interest" in a partnership, a corporation, an
| 4 | | organization, an association, a business, or a limited | 5 | | liability company means:
| 6 | | (A) When, with respect to a sole proprietorship, an | 7 | | individual or
his or her spouse owns, operates, manages, or | 8 | | conducts, directly
or indirectly, the organization, | 9 | | association, or business, or any part thereof;
or
| 10 | | (B) When, with respect to a partnership, the individual | 11 | | or his or
her spouse shares in any of the profits, or | 12 | | potential profits,
of the partnership activities; or
| 13 | | (C) When, with respect to a corporation, an individual | 14 | | or his or her
spouse is an officer or director, or the | 15 | | individual or his or her spouse is a holder, directly or | 16 | | beneficially, of 5% or more of any class
of stock of the | 17 | | corporation; or
| 18 | | (D) When, with respect to an organization not covered | 19 | | in (A), (B) or
(C) above, an individual or his or her | 20 | | spouse is an officer or manages the
business affairs, or | 21 | | the individual or his or her spouse is the
owner of or | 22 | | otherwise controls 10% or more of the assets of the | 23 | | organization;
or
| 24 | | (E) When an individual or his or her spouse furnishes
| 25 | | 5% or more of the capital, whether in cash, goods, or | 26 | | services, for the
operation of any business, association, |
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| 1 | | or organization during any calendar
year; or | 2 | | (F) When, with respect to a limited liability company, | 3 | | an individual or his or her
spouse is a member, or the | 4 | | individual or his or her spouse is a holder, directly or | 5 | | beneficially, of 5% or more of the membership interest of | 6 | | the limited liability company.
| 7 | | For purposes of this subsection (g), "individual" includes | 8 | | all individuals or their spouses whose combined interest would | 9 | | qualify as a substantial interest under this subsection (g) and | 10 | | whose activities with respect to an organization, association, | 11 | | or business are so closely aligned or coordinated as to | 12 | | constitute the activities of a single entity. | 13 | | (h) Location restriction. A licensed establishment, | 14 | | licensed truck stop establishment, licensed
fraternal
| 15 | | establishment, or licensed veterans establishment that is (i) | 16 | | located within 1,000
feet of a facility operated by an | 17 | | organization licensee licensed under the Illinois Horse Racing | 18 | | Act of 1975 or the home dock of a riverboat licensed under the | 19 | | Riverboat
Gambling Act or (ii) located within 100 feet of a | 20 | | school or a place of worship under the Religious Corporation | 21 | | Act, is ineligible to operate a video gaming terminal. The | 22 | | location restrictions in this subsection (h) do not apply if | 23 | | (A) a facility operated by an organization licensee, a school, | 24 | | or a place of worship moves to or is established within the | 25 | | restricted area after a licensed establishment, licensed truck | 26 | | stop establishment, licensed fraternal establishment, or |
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| 1 | | licensed veterans establishment becomes licensed under this | 2 | | Act or (B) a school or place of worship moves to or is | 3 | | established within the restricted area after a licensed | 4 | | establishment, licensed truck stop establishment, licensed | 5 | | fraternal establishment, or licensed veterans establishment | 6 | | obtains its original liquor license. For the purpose of this | 7 | | subsection, "school" means an elementary or secondary public | 8 | | school, or an elementary or secondary private school registered | 9 | | with or recognized by the State Board of Education. | 10 | | Notwithstanding the provisions of this subsection (h), the | 11 | | Board may waive the requirement that a licensed establishment, | 12 | | licensed truck stop establishment, licensed fraternal | 13 | | establishment, or licensed veterans establishment not be | 14 | | located within 1,000 feet from a facility operated by an | 15 | | organization licensee licensed under the Illinois Horse Racing | 16 | | Act of 1975 or the home dock of a riverboat licensed under the | 17 | | Riverboat Gambling Act. The Board shall not grant such waiver | 18 | | if there is any common ownership or control, shared business | 19 | | activity, or contractual arrangement of any type between the | 20 | | establishment and the organization licensee or owners licensee | 21 | | of a riverboat. The Board shall adopt rules to implement the | 22 | | provisions of this paragraph. | 23 | | (h-5) Restrictions on licenses in malls. The Board shall | 24 | | not grant an application to become a licensed video gaming | 25 | | location if the Board determines that granting the application | 26 | | would more likely than not cause a terminal operator, |
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| 1 | | individually or in combination with other terminal operators, | 2 | | licensed video gaming location, or other person or entity, to | 3 | | operate the video gaming terminals in 2 or more licensed video | 4 | | gaming locations as a single video gaming operation. | 5 | | (1) In making determinations under this subsection | 6 | | (h-5), factors to be considered by the Board shall include, | 7 | | but not be limited to, the following: | 8 | | (A) the physical aspects of the location; | 9 | | (B) the ownership, control, or management of the | 10 | | location; | 11 | | (C) any arrangements, understandings, or | 12 | | agreements, written or otherwise, among or involving | 13 | | any persons or entities that involve the conducting of | 14 | | any video gaming business or the sharing of costs or | 15 | | revenues; and | 16 | | (D) the manner in which any terminal operator or | 17 | | other related entity markets, advertises, or otherwise | 18 | | describes any location or locations to any other person | 19 | | or entity or to the public. | 20 | | (2) The Board shall presume, subject to rebuttal, that | 21 | | the granting of an application to become a licensed video | 22 | | gaming location within a mall will cause a terminal | 23 | | operator, individually or in combination with other | 24 | | persons or entities, to operate the video gaming terminals | 25 | | in 2 or more licensed video gaming locations as a single | 26 | | video gaming operation if the Board determines that |
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| 1 | | granting the license would create a local concentration of | 2 | | licensed video gaming locations. | 3 | | For the purposes of this subsection (h-5): | 4 | | "Mall" means a building, or adjoining or connected | 5 | | buildings, containing 4 or more separate locations. | 6 | | "Video gaming operation" means the conducting of video | 7 | | gaming and all related activities. | 8 | | "Location" means a space within a mall containing a | 9 | | separate business, a place for a separate business, or a place | 10 | | subject to a separate leasing arrangement by the mall owner. | 11 | | "Licensed video gaming location" means a licensed | 12 | | establishment, licensed fraternal establishment, licensed | 13 | | veterans establishment, or licensed truck stop. | 14 | | "Local concentration of licensed video gaming locations" | 15 | | means that the combined number of licensed video gaming | 16 | | locations within a mall exceed half of the separate locations | 17 | | within the mall. | 18 | | (i) Undue economic concentration. In addition to | 19 | | considering all other requirements under this Act, in deciding | 20 | | whether to approve the operation of video gaming terminals by a | 21 | | terminal operator in a location, the Board shall consider the | 22 | | impact of any economic concentration of such operation of video | 23 | | gaming terminals. The Board shall not allow a terminal operator | 24 | | to operate video gaming terminals if the Board determines such | 25 | | operation will result in undue economic concentration. For | 26 | | purposes of this Section, "undue economic concentration" means |
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| 1 | | that a terminal operator would have such actual or potential | 2 | | influence over video gaming terminals in Illinois as to: | 3 | | (1) substantially impede or suppress competition among | 4 | | terminal operators; | 5 | | (2) adversely impact the economic stability of the | 6 | | video gaming industry in Illinois; or | 7 | | (3) negatively impact the purposes of the Video Gaming | 8 | | Act. | 9 | | The Board shall adopt rules concerning undue economic | 10 | | concentration with respect to the operation of video gaming | 11 | | terminals in Illinois. The rules shall include, but not be | 12 | | limited to, (i) limitations on the number of video gaming | 13 | | terminals operated by any terminal operator within a defined | 14 | | geographic radius and (ii) guidelines on the discontinuation of | 15 | | operation of any such video gaming terminals the Board | 16 | | determines will cause undue economic concentration.
| 17 | | (j) The provisions of the Illinois Antitrust Act are fully | 18 | | and equally applicable to the activities of any licensee under | 19 | | this Act.
| 20 | | (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77, | 21 | | eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
| 22 | | (230 ILCS 40/27)
| 23 | | Sec. 27. Prohibition or limitation of video gaming by | 24 | | political subdivision. | 25 | | (a) A
municipality may
pass an ordinance prohibiting video |
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| 1 | | gaming within the corporate limits of the
municipality.
A | 2 | | county board may, for the unincorporated area of the county, | 3 | | pass an
ordinance prohibiting video gaming within the | 4 | | unincorporated area of the
county.
| 5 | | (b) A home rule municipality, or a home rule county with | 6 | | respect to unincorporated portions of the county, may impose | 7 | | separate requirements on video gaming that provide sources of | 8 | | municipal or county revenue or impose limitations on video | 9 | | gaming more restrictive than those provided under this Act. | 10 | | These requirements may include the following: | 11 | | (1) license fees; | 12 | | (2) occupation taxes; | 13 | | (3) licensing requirements; | 14 | | (4) limitations on hours of video gaming terminal play | 15 | | more restrictive than those provided under the liquor | 16 | | license of a licensed establishment, licensed veterans | 17 | | organization, or licensed fraternal organization; | 18 | | (5) limitations on the numbers of video gaming | 19 | | terminals within a licensed establishment, licensed | 20 | | veterans organization, licensed fraternal organization, or | 21 | | licensed truck stop; | 22 | | (6) limitations on the total number of licensed | 23 | | establishments, licensed veterans organizations, licensed | 24 | | fraternal organizations, or licensed truck stops allowed | 25 | | within the municipality or county, or a specific portion of | 26 | | the municipality or county; |
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| 1 | | (7) limitations on hours of video gaming play; | 2 | | (8) zoning to limit the areas within a municipality or | 3 | | county where video gaming is permitted; or | 4 | | (9) other requirements intended to promote safety, | 5 | | morals, health, or welfare within the municipality or | 6 | | county. | 7 | | (Source: P.A. 96-34, eff. 7-13-09.)
| 8 | | (230 ILCS 40/45)
| 9 | | Sec. 45. Issuance of license.
| 10 | | (a) The burden is upon each applicant to
demonstrate his | 11 | | suitability for licensure. Each video gaming terminal
| 12 | | manufacturer, distributor, supplier, operator, handler, | 13 | | licensed establishment, licensed truck stop establishment, | 14 | | licensed
fraternal
establishment, and licensed veterans | 15 | | establishment shall be
licensed by the Board.
The Board may | 16 | | issue or deny a license under this Act to any person pursuant | 17 | | to the same criteria set forth in Section 9 of the Riverboat | 18 | | Gambling Act.
| 19 | | (a-5) The Board shall not grant a license to a person who | 20 | | has facilitated, enabled, or participated in the use of | 21 | | coin-operated devices for gambling purposes or who is under the | 22 | | significant influence or control of such a person. For the | 23 | | purposes of this Act, "facilitated, enabled, or participated in | 24 | | the use of coin-operated amusement devices for gambling | 25 | | purposes" means that the person has been convicted of any |
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| 1 | | violation of Article 28 of the Criminal Code of 1961 or the | 2 | | Criminal Code of 2012. If there is pending legal action against | 3 | | a person for any such violation, then the Board shall delay the | 4 | | licensure of that person until the legal action is resolved. | 5 | | (b) Each person seeking and possessing a license as a video | 6 | | gaming terminal manufacturer, distributor, supplier, operator, | 7 | | handler, licensed establishment, licensed truck stop | 8 | | establishment, licensed fraternal establishment, or licensed | 9 | | veterans establishment shall submit to a background | 10 | | investigation conducted by the Board with the assistance of the | 11 | | State Police or other law enforcement. To the extent that the | 12 | | corporate structure of the applicant allows, the background | 13 | | investigation shall include any or all of the following as the | 14 | | Board deems appropriate or as provided by rule for each | 15 | | category of licensure: (i) each beneficiary of a trust, (ii) | 16 | | each partner of a partnership, (iii) each member of a limited | 17 | | liability company, (iv) each director and officer of a publicly | 18 | | or non-publicly held corporation, (v) each stockholder of a | 19 | | non-publicly held corporation, (vi) each stockholder of 5% or | 20 | | more of a publicly held corporation, or (vii) each stockholder | 21 | | of 5% or more in a parent or subsidiary corporation. | 22 | | (c) Each person seeking and possessing a license as a video | 23 | | gaming terminal manufacturer, distributor, supplier, operator, | 24 | | handler, licensed establishment, licensed truck stop | 25 | | establishment, licensed fraternal establishment, or licensed | 26 | | veterans establishment shall disclose the identity of every |
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| 1 | | person, association, trust, corporation, or limited liability | 2 | | company having a greater than 1% direct or indirect pecuniary | 3 | | interest in the video gaming terminal operation for which the | 4 | | license is sought. If the disclosed entity is a trust, the | 5 | | application shall disclose the names and addresses of the | 6 | | beneficiaries; if a corporation, the names and addresses of all | 7 | | stockholders and directors; if a limited liability company, the | 8 | | names and addresses of all members; or if a partnership, the | 9 | | names and addresses of all partners, both general and limited. | 10 | | (d) No person may be licensed as a video gaming terminal | 11 | | manufacturer, distributor, supplier, operator, handler, | 12 | | licensed establishment, licensed truck stop establishment, | 13 | | licensed fraternal establishment, or licensed veterans | 14 | | establishment if that person has been found by the Board to: | 15 | | (1) have a background, including a criminal record, | 16 | | reputation, habits, social or business associations, or | 17 | | prior activities that pose a threat to the public interests | 18 | | of the State or to the security and integrity of video | 19 | | gaming; | 20 | | (2) create or enhance the dangers of unsuitable, | 21 | | unfair, or illegal practices, methods, and activities in | 22 | | the conduct of video gaming; or | 23 | | (3) present questionable business practices and | 24 | | financial arrangements incidental to the conduct of video | 25 | | gaming activities. | 26 | | (e) Any applicant for any license under this Act has the |
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| 1 | | burden of proving his or her qualifications to the satisfaction | 2 | | of the Board. The Board may adopt rules to establish additional | 3 | | qualifications and requirements to preserve the integrity and | 4 | | security of video gaming in this State. | 5 | | (f) A non-refundable application fee shall be paid at the | 6 | | time an
application for a license is filed with the Board in | 7 | | the following amounts:
| 8 | | (1) Manufacturer ..........................$5,000
| 9 | | (2) Distributor ...........................$5,000
| 10 | | (3) Terminal operator .....................$5,000
| 11 | | (4) Supplier ..............................$2,500
| 12 | | (5) Technician ..............................$100
| 13 | | (6) Terminal Handler .....................$100 $50
| 14 | | (7) Licensed establishment, licensed truck stop
| 15 | | establishment, licensed fraternal establishment,
| 16 | | or licensed veterans establishment ...................$100 | 17 | | (g) The Board shall establish an
annual fee for each | 18 | | license not to exceed the following: | 19 | | (1) Manufacturer .........................$10,000
| 20 | | (2) Distributor ..........................$10,000
| 21 | | (3) Terminal operator .....................$5,000
| 22 | | (4) Supplier ..............................$2,000
| 23 | | (5) Technician ..............................$100
| 24 | | (6) Licensed establishment, licensed truck stop
| 25 | | establishment, licensed fraternal establishment,
| 26 | | or licensed veterans establishment ..............$100
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| 1 | | (7) Video gaming terminal ...................$100
| 2 | | (8) Terminal Handler .........................$100 $50
| 3 | | (h) A terminal operator and a licensed establishment, | 4 | | licensed truck stop establishment, licensed fraternal | 5 | | establishment,
or licensed veterans establishment shall | 6 | | equally split the fees specified in item (7) of subsection (g). | 7 | | (Source: P.A. 97-1150, eff. 1-25-13; 98-31, eff. 6-24-13; | 8 | | 98-587, eff. 8-27-13; 98-756, eff. 7-16-14.)
| 9 | | (230 ILCS 40/78.5 new) | 10 | | Sec. 78.5. Civil penalties. Notwithstanding paragraph (15) | 11 | | of subsection (c) of Section 5 of the Riverboat Gambling Act, | 12 | | monetary civil penalties under this Act shall not exceed | 13 | | $25,000 for individuals and $50,000 for licensees per | 14 | | violation.
| 15 | | (230 ILCS 40/80)
| 16 | | Sec. 80. Applicability of Illinois Riverboat Gambling Act. | 17 | | The provisions of the Illinois Riverboat Gambling Act, and all | 18 | | rules promulgated thereunder, shall apply to the Video Gaming | 19 | | Act, except where there is a conflict between the 2 Acts. All | 20 | | current supplier licensees under the Riverboat Gambling Act | 21 | | shall be entitled to licensure under the Video Gaming Act as | 22 | | manufacturers, distributors, or suppliers without additional | 23 | | Board investigation or approval, except by vote of the Board; | 24 | | however, they are required to pay application and annual fees |
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| 1 | | under this Act. All provisions of the Uniform Penalty and | 2 | | Interest Act shall apply, as far as practicable, to the subject | 3 | | matter of this Act to the same extent as if such provisions | 4 | | were included herein.
| 5 | | (Source: P.A. 96-37, eff. 7-13-09.)".
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