Full Text of HB5367 103rd General Assembly
HB5367ham002 103RD GENERAL ASSEMBLY | Rep. Harry Benton Filed: 3/22/2024 | | 10300HB5367ham002 | | LRB103 38513 CES 71100 a |
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| 1 | | AMENDMENT TO HOUSE BILL 5367
| 2 | | AMENDMENT NO. ______. Amend House Bill 5367 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 5. The Video Gaming Act is amended by changing | 5 | | Section 25 as follows: | 6 | | (230 ILCS 40/25) | 7 | | Sec. 25. Restriction of licensees. | 8 | | (a) Manufacturer. A person may not be licensed as a | 9 | | manufacturer of a video gaming terminal in Illinois unless the | 10 | | person has a valid manufacturer's license issued under this | 11 | | Act. A manufacturer may only sell video gaming terminals for | 12 | | use in Illinois to persons having a valid distributor's | 13 | | license. | 14 | | (b) Distributor. A person may not sell, distribute, or | 15 | | lease or market a video gaming terminal in Illinois unless the | 16 | | person has a valid distributor's license issued under this |
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| 1 | | Act. A distributor may only sell video gaming terminals for | 2 | | use in Illinois to persons having a valid distributor's or | 3 | | terminal operator's license. | 4 | | (c) Terminal operator. A person may not own, maintain, or | 5 | | place a video gaming terminal unless he has a valid terminal | 6 | | operator's license issued under this Act. A terminal operator | 7 | | may only place video gaming terminals for use in Illinois in | 8 | | licensed establishments, licensed truck stop establishments, | 9 | | licensed large truck stop establishments, licensed fraternal | 10 | | establishments, and licensed veterans establishments. No | 11 | | terminal operator may give anything of value, including but | 12 | | not limited to a loan or financing arrangement, to a licensed | 13 | | establishment, licensed truck stop establishment, licensed | 14 | | large truck stop establishment, licensed fraternal | 15 | | establishment, or licensed veterans establishment as any | 16 | | incentive or inducement to locate video terminals in that | 17 | | establishment. Of the after-tax profits from a video gaming | 18 | | terminal, 50% shall be paid to the terminal operator and 50% | 19 | | shall be paid to the licensed establishment, licensed truck | 20 | | stop establishment, licensed large truck stop establishment, | 21 | | licensed fraternal establishment, or licensed veterans | 22 | | establishment, notwithstanding any agreement to the contrary. | 23 | | A video terminal operator that violates one or more | 24 | | requirements of this subsection is guilty of a Class 4 felony | 25 | | and is subject to termination of his or her license by the | 26 | | Board. |
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| 1 | | (d) Licensed technician. A person may not service, | 2 | | maintain, or repair a video gaming terminal in this State | 3 | | unless he or she (1) has a valid technician's license issued | 4 | | under this Act, (2) is a terminal operator, or (3) is employed | 5 | | by a terminal operator, distributor, or manufacturer. | 6 | | (d-5) Licensed terminal handler. No person, including, but | 7 | | not limited to, an employee or independent contractor working | 8 | | for a manufacturer, distributor, supplier, technician, or | 9 | | terminal operator licensed pursuant to this Act, shall have | 10 | | possession or control of a video gaming terminal, or access to | 11 | | the inner workings of a video gaming terminal, unless that | 12 | | person possesses a valid terminal handler's license issued | 13 | | under this Act. | 14 | | (d-10) Solicitation of use agreements. A person may not | 15 | | solicit the signing of a use agreement on behalf of a terminal | 16 | | operator or enter into a use agreement as agent of a terminal | 17 | | operator unless that person either has a valid sales agent and | 18 | | broker license issued under this Act or owns, manages, or | 19 | | significantly influences or controls the terminal operator. | 20 | | (e) Licensed establishment. No video gaming terminal may | 21 | | be placed in any licensed establishment, licensed veterans | 22 | | establishment, licensed truck stop establishment, licensed | 23 | | large truck stop establishment, or licensed fraternal | 24 | | establishment unless the owner or agent of the owner of the | 25 | | licensed establishment, licensed veterans establishment, | 26 | | licensed truck stop establishment, licensed large truck stop |
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| 1 | | establishment, or licensed fraternal establishment has entered | 2 | | into a written use agreement with the terminal operator for | 3 | | placement of the terminals. A copy of the use agreement shall | 4 | | be on file in the terminal operator's place of business and | 5 | | available for inspection by individuals authorized by the | 6 | | Board. A licensed establishment, licensed truck stop | 7 | | establishment, licensed veterans establishment, or licensed | 8 | | fraternal establishment may operate up to 6 video gaming | 9 | | terminals on its premises at any time. A licensed large truck | 10 | | stop establishment may operate up to 10 video gaming terminals | 11 | | on its premises at any time. | 12 | | (f) (Blank). | 13 | | (g) Financial interest restrictions. As used in this Act, | 14 | | "substantial interest" in a partnership, a corporation, an | 15 | | organization, an association, a business, or a limited | 16 | | liability company means: | 17 | | (A) When, with respect to a sole proprietorship, an | 18 | | individual or his or her spouse owns, operates, manages, | 19 | | or conducts, directly or indirectly, the organization, | 20 | | association, or business, or any part thereof; or | 21 | | (B) When, with respect to a partnership, the | 22 | | individual or his or her spouse shares in any of the | 23 | | profits, or potential profits, of the partnership | 24 | | 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) | 22 | | and whose activities with respect to an organization, | 23 | | association, or business are so closely aligned or coordinated | 24 | | as to constitute the activities of a single entity. | 25 | | (h) Location restriction. A licensed establishment, | 26 | | licensed truck stop establishment, licensed large truck stop |
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| 1 | | establishment, licensed fraternal establishment, or licensed | 2 | | veterans establishment is ineligible to operate a video gaming | 3 | | terminal if that is (i) located within : (i) 1,000 feet of a | 4 | | facility operated by an organization licensee licensed under | 5 | | the Illinois Horse Racing Act of 1975 or the home dock of a | 6 | | riverboat licensed under the Illinois Gambling Act ; or (ii) | 7 | | the distance of up to 100 feet that has been designated by the | 8 | | municipality in which the establishment is located as a | 9 | | setback from located within 100 feet of a school or a place of | 10 | | worship as defined in under the Religious Corporation Act ; or | 11 | | (iii) the distance of up to 100 feet that has been designated | 12 | | by a school board as a setback from a school , is ineligible to | 13 | | operate a video gaming terminal . The location restrictions in | 14 | | this subsection (h) do not apply if (A) a facility operated by | 15 | | an organization licensee, a school, or a place of worship | 16 | | moves to or is established within the restricted area after a | 17 | | licensed establishment, licensed truck stop establishment, | 18 | | licensed large truck stop establishment, licensed fraternal | 19 | | establishment, or licensed veterans establishment becomes | 20 | | licensed under this Act or (B) a school or place of worship | 21 | | moves to or is established within the restricted area after a | 22 | | licensed establishment, licensed truck stop establishment, | 23 | | licensed large truck stop establishment, licensed fraternal | 24 | | establishment, or licensed veterans establishment obtains its | 25 | | original liquor license. For the purpose of this subsection, | 26 | | "school" means an elementary or secondary public school, or an |
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| 1 | | elementary or secondary private school registered with or | 2 | | recognized by the State Board of Education. | 3 | | Notwithstanding the provisions of this subsection (h), the | 4 | | Board may waive the requirement that a licensed establishment, | 5 | | licensed truck stop establishment, licensed large truck stop | 6 | | establishment, licensed fraternal establishment, or licensed | 7 | | veterans establishment not be located within 1,000 feet from a | 8 | | facility operated by an organization licensee licensed under | 9 | | the Illinois Horse Racing Act of 1975 or the home dock of a | 10 | | riverboat licensed under the Illinois Gambling Act. The Board | 11 | | shall not grant such waiver if there is any common ownership or | 12 | | control, shared business activity, or contractual arrangement | 13 | | of any type between the establishment and the organization | 14 | | licensee or owners licensee of a riverboat. The Board shall | 15 | | adopt rules to implement the provisions of this paragraph. | 16 | | (h-5) Restrictions on licenses in malls. The Board shall | 17 | | not grant an application to become a licensed video gaming | 18 | | location if the Board determines that granting the application | 19 | | would more likely than not cause a terminal operator, | 20 | | individually or in combination with other terminal operators, | 21 | | licensed video gaming location, or other person or entity, to | 22 | | operate the video gaming terminals in 2 or more licensed video | 23 | | gaming locations as a single video gaming operation. | 24 | | (1) In making determinations under this subsection | 25 | | (h-5), factors to be considered by the Board shall | 26 | | include, but not be limited to, the following: |
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| 1 | | (A) the physical aspects of the location; | 2 | | (B) the ownership, control, or management of the | 3 | | location; | 4 | | (C) any arrangements, understandings, or | 5 | | agreements, written or otherwise, among or involving | 6 | | any persons or entities that involve the conducting of | 7 | | any video gaming business or the sharing of costs or | 8 | | revenues; and | 9 | | (D) the manner in which any terminal operator or | 10 | | other related entity markets, advertises, or otherwise | 11 | | describes any location or locations to any other | 12 | | person or entity or to the public. | 13 | | (2) The Board shall presume, subject to rebuttal, that | 14 | | the granting of an application to become a licensed video | 15 | | gaming location within a mall will cause a terminal | 16 | | operator, individually or in combination with other | 17 | | persons or entities, to operate the video gaming terminals | 18 | | in 2 or more licensed video gaming locations as a single | 19 | | video gaming operation if the Board determines that | 20 | | granting the license would create a local concentration of | 21 | | licensed video gaming locations. | 22 | | For the purposes of this subsection (h-5): | 23 | | "Mall" means a building, or adjoining or connected | 24 | | buildings, containing 4 or more separate locations. | 25 | | "Video gaming operation" means the conducting of video | 26 | | gaming and all related activities. |
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| 1 | | "Location" means a space within a mall containing a | 2 | | separate business, a place for a separate business, or a place | 3 | | subject to a separate leasing arrangement by the mall owner. | 4 | | "Licensed video gaming location" means a licensed | 5 | | establishment, licensed fraternal establishment, licensed | 6 | | veterans establishment, licensed truck stop establishment, or | 7 | | licensed large truck stop. | 8 | | "Local concentration of licensed video gaming locations" | 9 | | means that the combined number of licensed video gaming | 10 | | locations within a mall exceed half of the separate locations | 11 | | within the mall. | 12 | | (i) Undue economic concentration. In addition to | 13 | | considering all other requirements under this Act, in deciding | 14 | | whether to approve the operation of video gaming terminals by | 15 | | a terminal operator in a location, the Board shall consider | 16 | | the impact of any economic concentration of such operation of | 17 | | video gaming terminals. The Board shall not allow a terminal | 18 | | operator to operate video gaming terminals if the Board | 19 | | determines such operation will result in undue economic | 20 | | concentration. For purposes of this Section, "undue economic | 21 | | concentration" means that a terminal operator would have such | 22 | | actual or potential influence over video gaming terminals in | 23 | | Illinois as to: | 24 | | (1) substantially impede or suppress competition among | 25 | | terminal operators; | 26 | | (2) adversely impact the economic stability of the |
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| 1 | | video gaming industry in Illinois; or | 2 | | (3) negatively impact the purposes of the Video Gaming | 3 | | Act. | 4 | | The Board shall adopt rules concerning undue economic | 5 | | concentration with respect to the operation of video gaming | 6 | | terminals in Illinois. The rules shall include, but not be | 7 | | limited to, (i) limitations on the number of video gaming | 8 | | terminals operated by any terminal operator within a defined | 9 | | geographic radius and (ii) guidelines on the discontinuation | 10 | | of operation of any such video gaming terminals the Board | 11 | | determines will cause undue economic concentration. | 12 | | (j) The provisions of the Illinois Antitrust Act are fully | 13 | | and equally applicable to the activities of any licensee under | 14 | | this Act. | 15 | | (Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)". |
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