Full Text of HB5367 103rd General Assembly
HB5367eng 103RD GENERAL ASSEMBLY | | | HB5367 Engrossed | | LRB103 38513 AWJ 68649 b |
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| 1 | | AN ACT concerning gaming. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 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 | 17 | | Act. A distributor may only sell video gaming terminals for | 18 | | use in Illinois to persons having a valid distributor's or | 19 | | terminal operator's license. | 20 | | (c) Terminal operator. A person may not own, maintain, or | 21 | | place a video gaming terminal unless he has a valid terminal | 22 | | operator's license issued under this Act. A terminal operator | 23 | | may only place video gaming terminals for use in Illinois in |
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| 1 | | licensed establishments, licensed truck stop establishments, | 2 | | licensed large truck stop establishments, licensed fraternal | 3 | | establishments, and licensed veterans establishments. No | 4 | | terminal operator may give anything of value, including but | 5 | | not limited to a loan or financing arrangement, to a licensed | 6 | | establishment, licensed truck stop establishment, licensed | 7 | | large truck stop establishment, licensed fraternal | 8 | | establishment, or licensed veterans establishment as any | 9 | | incentive or inducement to locate video terminals in that | 10 | | establishment. Of the after-tax profits from a video gaming | 11 | | terminal, 50% shall be paid to the terminal operator and 50% | 12 | | shall be paid to the licensed establishment, licensed truck | 13 | | stop establishment, licensed large truck stop establishment, | 14 | | licensed fraternal establishment, or licensed veterans | 15 | | establishment, notwithstanding any agreement to the contrary. | 16 | | A video terminal operator that violates one or more | 17 | | requirements of this subsection is guilty of a Class 4 felony | 18 | | and is subject to termination of his or her license by the | 19 | | Board. | 20 | | (d) Licensed technician. A person may not service, | 21 | | maintain, or repair a video gaming terminal in this State | 22 | | unless he or she (1) has a valid technician's license issued | 23 | | under this Act, (2) is a terminal operator, or (3) is employed | 24 | | by a terminal operator, distributor, or manufacturer. | 25 | | (d-5) Licensed terminal handler. No person, including, but | 26 | | not limited to, an employee or independent contractor working |
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| 1 | | for a manufacturer, distributor, supplier, technician, or | 2 | | terminal operator licensed pursuant to this Act, shall have | 3 | | possession or control of a video gaming terminal, or access to | 4 | | the inner workings of a video gaming terminal, unless that | 5 | | person possesses a valid terminal handler's license issued | 6 | | under this Act. | 7 | | (d-10) Solicitation of use agreements. A person may not | 8 | | solicit the signing of a use agreement on behalf of a terminal | 9 | | operator or enter into a use agreement as agent of a terminal | 10 | | operator unless that person either has a valid sales agent and | 11 | | broker license issued under this Act or owns, manages, or | 12 | | significantly influences or controls the terminal operator. | 13 | | (e) Licensed establishment. No video gaming terminal may | 14 | | be placed in any licensed establishment, licensed veterans | 15 | | establishment, licensed truck stop establishment, licensed | 16 | | large truck stop establishment, or licensed fraternal | 17 | | establishment unless the owner or agent of the owner of the | 18 | | licensed establishment, licensed veterans establishment, | 19 | | licensed truck stop establishment, licensed large truck stop | 20 | | establishment, or licensed fraternal establishment has entered | 21 | | into a written use agreement with the terminal operator for | 22 | | placement of the terminals. A copy of the use agreement shall | 23 | | be on file in the terminal operator's place of business and | 24 | | available for inspection by individuals authorized by the | 25 | | Board. A licensed establishment, licensed truck stop | 26 | | establishment, licensed veterans establishment, or licensed |
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| 1 | | fraternal establishment may operate up to 6 video gaming | 2 | | terminals on its premises at any time. A licensed large truck | 3 | | stop establishment may operate up to 10 video gaming terminals | 4 | | on its premises at any time. | 5 | | (f) (Blank). | 6 | | (g) Financial interest restrictions. As used in this Act, | 7 | | "substantial interest" in a partnership, a corporation, an | 8 | | organization, an association, a business, or a limited | 9 | | liability company means: | 10 | | (A) When, with respect to a sole proprietorship, an | 11 | | individual or his or her spouse owns, operates, manages, | 12 | | or conducts, directly or indirectly, the organization, | 13 | | association, or business, or any part thereof; or | 14 | | (B) When, with respect to a partnership, the | 15 | | individual or his or her spouse shares in any of the | 16 | | profits, or potential profits, of the partnership | 17 | | activities; or | 18 | | (C) When, with respect to a corporation, an individual | 19 | | or his or her spouse is an officer or director, or the | 20 | | individual or his or her spouse is a holder, directly or | 21 | | beneficially, of 5% or more of any class of stock of the | 22 | | corporation; or | 23 | | (D) When, with respect to an organization not covered | 24 | | in (A), (B) or (C) above, an individual or his or her | 25 | | spouse is an officer or manages the business affairs, or | 26 | | the individual or his or her spouse is the owner of or |
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| 1 | | otherwise controls 10% or more of the assets of the | 2 | | organization; or | 3 | | (E) When an individual or his or her spouse furnishes | 4 | | 5% or more of the capital, whether in cash, goods, or | 5 | | services, for the operation of any business, association, | 6 | | or organization during any calendar year; or | 7 | | (F) When, with respect to a limited liability company, | 8 | | an individual or his or her spouse is a member, or the | 9 | | individual or his or her spouse is a holder, directly or | 10 | | beneficially, of 5% or more of the membership interest of | 11 | | the limited liability company. | 12 | | For purposes of this subsection (g), "individual" includes | 13 | | all individuals or their spouses whose combined interest would | 14 | | qualify as a substantial interest under this subsection (g) | 15 | | and whose activities with respect to an organization, | 16 | | association, or business are so closely aligned or coordinated | 17 | | as to constitute the activities of a single entity. | 18 | | (h) Location restriction. A licensed establishment, | 19 | | licensed truck stop establishment, licensed large truck stop | 20 | | establishment, licensed fraternal establishment, or licensed | 21 | | veterans establishment that is (i) located within 1,000 feet | 22 | | of a facility operated by an organization licensee licensed | 23 | | under the Illinois Horse Racing Act of 1975 or the home dock of | 24 | | a riverboat licensed under the Illinois Gambling Act or (ii) | 25 | | located within 100 feet of a school or a place of worship under | 26 | | the Religious Corporation Act, is ineligible to operate a |
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| 1 | | video gaming terminal. The location restrictions in this | 2 | | subsection (h) do not apply if (A) a facility operated by an | 3 | | organization licensee, a school, or a place of worship moves | 4 | | to or is established within the restricted area after a | 5 | | licensed establishment, licensed truck stop establishment, | 6 | | licensed large truck stop establishment, licensed fraternal | 7 | | establishment, or licensed veterans establishment becomes | 8 | | licensed under this Act or (B) a school or place of worship | 9 | | moves to or is established within the restricted area after a | 10 | | licensed establishment, licensed truck stop establishment, | 11 | | licensed large truck stop establishment, licensed fraternal | 12 | | establishment, or licensed veterans establishment obtains its | 13 | | original liquor license. For the purpose of this subsection, | 14 | | "school" means an elementary or secondary public school, or an | 15 | | elementary or secondary private school registered with or | 16 | | recognized by the State Board of Education. | 17 | | Notwithstanding the provisions of this subsection (h), the | 18 | | Board may waive the requirement that a licensed establishment, | 19 | | licensed truck stop establishment, licensed large truck stop | 20 | | establishment, licensed fraternal establishment, or licensed | 21 | | veterans establishment not be located within 1,000 feet from a | 22 | | facility operated by an organization licensee licensed under | 23 | | the Illinois Horse Racing Act of 1975 or the home dock of a | 24 | | riverboat licensed under the Illinois Gambling Act. The Board | 25 | | shall not grant such waiver if there is any common ownership or | 26 | | control, shared business activity, or contractual arrangement |
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| 1 | | of any type between the establishment and the organization | 2 | | licensee or owners licensee of a riverboat. The Board shall | 3 | | adopt rules to implement the provisions of this paragraph. | 4 | | Notwithstanding the provisions of this subsection (h), the | 5 | | Board may waive the requirement that a licensed establishment, | 6 | | licensed truck stop establishment, licensed large truck stop | 7 | | establishment, licensed fraternal establishment, or licensed | 8 | | veterans establishment not be located within 100 feet of a | 9 | | place of worship under the Religious Corporation Act if the | 10 | | following conditions, as applicable, are met: | 11 | | (1) the licensed establishment, licensed truck stop | 12 | | establishment, licensed large truck stop establishment, | 13 | | licensed fraternal establishment, or licensed veterans | 14 | | establishment is not located within 100 feet of a school | 15 | | or, if the establishment is located within 100 feet of a | 16 | | school, the superintendent of the school district or the | 17 | | chief administrative officer of the nonpublic school has | 18 | | signed a letter of support for the waiver; | 19 | | (2) the mayor or president of the municipality or, if | 20 | | within an unincorporated area of a county, the chairperson | 21 | | of the county board where the licensed establishment, | 22 | | licensed truck stop establishment, licensed large truck | 23 | | stop establishment, licensed fraternal establishment, or | 24 | | licensed veterans establishment is located has signed a | 25 | | letter of support for the waiver; and | 26 | | (3) the principal religious leader at the place of |
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| 1 | | worship has not indicated his or her opposition to the | 2 | | waiver in writing. | 3 | | (h-5) Restrictions on licenses in malls. The Board shall | 4 | | not grant an application to become a licensed video gaming | 5 | | location if the Board determines that granting the application | 6 | | would more likely than not cause a terminal operator, | 7 | | individually or in combination with other terminal operators, | 8 | | licensed video gaming location, or other person or entity, to | 9 | | operate the video gaming terminals in 2 or more licensed video | 10 | | gaming locations as a single video gaming operation. | 11 | | (1) In making determinations under this subsection | 12 | | (h-5), factors to be considered by the Board shall | 13 | | include, but not be limited to, the following: | 14 | | (A) the physical aspects of the location; | 15 | | (B) the ownership, control, or management of the | 16 | | location; | 17 | | (C) any arrangements, understandings, or | 18 | | agreements, written or otherwise, among or involving | 19 | | any persons or entities that involve the conducting of | 20 | | any video gaming business or the sharing of costs or | 21 | | revenues; and | 22 | | (D) the manner in which any terminal operator or | 23 | | other related entity markets, advertises, or otherwise | 24 | | describes any location or locations to any other | 25 | | person or entity or to the public. | 26 | | (2) The Board shall presume, subject to rebuttal, that |
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| 1 | | the granting of an application to become a licensed video | 2 | | gaming location within a mall will cause a terminal | 3 | | operator, individually or in combination with other | 4 | | persons or entities, to operate the video gaming terminals | 5 | | in 2 or more licensed video gaming locations as a single | 6 | | video gaming operation if the Board determines that | 7 | | granting the license would create a local concentration of | 8 | | licensed video gaming locations. | 9 | | For the purposes of this subsection (h-5): | 10 | | "Mall" means a building, or adjoining or connected | 11 | | buildings, containing 4 or more separate locations. | 12 | | "Video gaming operation" means the conducting of video | 13 | | gaming and all related activities. | 14 | | "Location" means a space within a mall containing a | 15 | | separate business, a place for a separate business, or a place | 16 | | subject to a separate leasing arrangement by the mall owner. | 17 | | "Licensed video gaming location" means a licensed | 18 | | establishment, licensed fraternal establishment, licensed | 19 | | veterans establishment, licensed truck stop establishment, or | 20 | | licensed large truck stop. | 21 | | "Local concentration of licensed video gaming locations" | 22 | | means that the combined number of licensed video gaming | 23 | | locations within a mall exceed half of the separate locations | 24 | | within the mall. | 25 | | (i) Undue economic concentration. In addition to | 26 | | considering all other requirements under this Act, in deciding |
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| 1 | | whether to approve the operation of video gaming terminals by | 2 | | a terminal operator in a location, the Board shall consider | 3 | | the impact of any economic concentration of such operation of | 4 | | video gaming terminals. The Board shall not allow a terminal | 5 | | operator to operate video gaming terminals if the Board | 6 | | determines such operation will result in undue economic | 7 | | concentration. For purposes of this Section, "undue economic | 8 | | concentration" means that a terminal operator would have such | 9 | | actual or potential influence over video gaming terminals in | 10 | | Illinois as to: | 11 | | (1) substantially impede or suppress competition among | 12 | | terminal operators; | 13 | | (2) adversely impact the economic stability of the | 14 | | video gaming industry in Illinois; or | 15 | | (3) negatively impact the purposes of the Video Gaming | 16 | | Act. | 17 | | The Board shall adopt rules concerning undue economic | 18 | | concentration with respect to the operation of video gaming | 19 | | terminals in Illinois. The rules shall include, but not be | 20 | | limited to, (i) limitations on the number of video gaming | 21 | | terminals operated by any terminal operator within a defined | 22 | | geographic radius and (ii) guidelines on the discontinuation | 23 | | of operation of any such video gaming terminals the Board | 24 | | determines will cause undue economic concentration. | 25 | | (j) The provisions of the Illinois Antitrust Act are fully | 26 | | and equally applicable to the activities of any licensee under |
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| 1 | | this Act. | 2 | | (Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.) | 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law. |
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