100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5132

 

Introduced , by Rep. Sara Wojcicki Jimenez

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 40/25

    Amends the Video Gaming Act. Provides that of the after-tax profits from a video gaming terminal located in a licensed veterans establishment, 40% shall be paid to the terminal operator and 60% shall be paid to the licensed veterans establishment (rather than 50% shall be paid to the terminal operator and 50% shall be paid to the licensed veterans establishment), notwithstanding any agreement to the contrary. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Video Gaming Act is amended by changing
5Section 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
9manufacturer of a video gaming terminal in Illinois unless the
10person has a valid manufacturer's license issued under this
11Act. A manufacturer may only sell video gaming terminals for
12use in Illinois to persons having a valid distributor's
13license.
14    (b) Distributor. A person may not sell, distribute, or
15lease or market a video gaming terminal in Illinois unless the
16person has a valid distributor's license issued under this Act.
17A distributor may only sell video gaming terminals for use in
18Illinois to persons having a valid distributor's or terminal
19operator's license.
20    (c) Terminal operator. A person may not own, maintain, or
21place a video gaming terminal unless he has a valid terminal
22operator's license issued under this Act. A terminal operator
23may only place video gaming terminals for use in Illinois in

 

 

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1licensed establishments, licensed truck stop establishments,
2licensed fraternal establishments, and licensed veterans
3establishments. No terminal operator may give anything of
4value, including but not limited to a loan or financing
5arrangement, to a licensed establishment, licensed truck stop
6establishment, licensed fraternal establishment, or licensed
7veterans establishment as any incentive or inducement to locate
8video terminals in that establishment. Of the after-tax profits
9from a video gaming terminal located in a licensed
10establishment, licensed truck stop establishment, or licensed
11fraternal establishment, 50% shall be paid to the terminal
12operator and 50% shall be paid to the licensed establishment,
13licensed truck stop establishment, or licensed fraternal
14establishment, or licensed veterans establishment,
15notwithstanding any agreement to the contrary. Of the after-tax
16profits from a video gaming terminal located in a licensed
17veterans establishment, 40% shall be paid to the terminal
18operator and 60% shall be paid to the licensed veterans
19establishment, notwithstanding any agreement to the contrary.
20A video terminal operator that violates one or more
21requirements of this subsection is guilty of a Class 4 felony
22and is subject to termination of his or her license by the
23Board.
24    (d) Licensed technician. A person may not service,
25maintain, or repair a video gaming terminal in this State
26unless he or she (1) has a valid technician's license issued

 

 

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1under this Act, (2) is a terminal operator, or (3) is employed
2by a terminal operator, distributor, or manufacturer.
3    (d-5) Licensed terminal handler. No person, including, but
4not limited to, an employee or independent contractor working
5for a manufacturer, distributor, supplier, technician, or
6terminal operator licensed pursuant to this Act, shall have
7possession or control of a video gaming terminal, or access to
8the inner workings of a video gaming terminal, unless that
9person possesses a valid terminal handler's license issued
10under this Act.
11    (e) Licensed establishment. No video gaming terminal may be
12placed in any licensed establishment, licensed veterans
13establishment, licensed truck stop establishment, or licensed
14fraternal establishment unless the owner or agent of the owner
15of the licensed establishment, licensed veterans
16establishment, licensed truck stop establishment, or licensed
17fraternal establishment has entered into a written use
18agreement with the terminal operator for placement of the
19terminals. A copy of the use agreement shall be on file in the
20terminal operator's place of business and available for
21inspection by individuals authorized by the Board. A licensed
22establishment, licensed truck stop establishment, licensed
23veterans establishment, or licensed fraternal establishment
24may operate up to 5 video gaming terminals on its premises at
25any time.
26    (f) (Blank).

 

 

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1    (g) Financial interest restrictions. As used in this Act,
2"substantial interest" in a partnership, a corporation, an
3organization, an association, a business, or a limited
4liability company means:
5        (A) When, with respect to a sole proprietorship, an
6    individual or his or her spouse owns, operates, manages, or
7    conducts, directly or indirectly, the organization,
8    association, or business, or any part thereof; or
9        (B) When, with respect to a partnership, the individual
10    or his or her spouse shares in any of the profits, or
11    potential profits, of the partnership activities; or
12        (C) When, with respect to a corporation, an individual
13    or his or her spouse is an officer or director, or the
14    individual or his or her spouse is a holder, directly or
15    beneficially, of 5% or more of any class of stock of the
16    corporation; or
17        (D) When, with respect to an organization not covered
18    in (A), (B) or (C) above, an individual or his or her
19    spouse is an officer or manages the business affairs, or
20    the individual or his or her spouse is the owner of or
21    otherwise controls 10% or more of the assets of the
22    organization; or
23        (E) When an individual or his or her spouse furnishes
24    5% or more of the capital, whether in cash, goods, or
25    services, for the operation of any business, association,
26    or organization during any calendar year; or

 

 

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1        (F) When, with respect to a limited liability company,
2    an individual or his or her spouse is a member, or the
3    individual or his or her spouse is a holder, directly or
4    beneficially, of 5% or more of the membership interest of
5    the limited liability company.
6    For purposes of this subsection (g), "individual" includes
7all individuals or their spouses whose combined interest would
8qualify as a substantial interest under this subsection (g) and
9whose activities with respect to an organization, association,
10or business are so closely aligned or coordinated as to
11constitute the activities of a single entity.
12    (h) Location restriction. A licensed establishment,
13licensed truck stop establishment, licensed fraternal
14establishment, or licensed veterans establishment that is (i)
15located within 1,000 feet of a facility operated by an
16organization licensee licensed under the Illinois Horse Racing
17Act of 1975 or the home dock of a riverboat licensed under the
18Riverboat Gambling Act or (ii) located within 100 feet of a
19school or a place of worship under the Religious Corporation
20Act, is ineligible to operate a video gaming terminal. The
21location restrictions in this subsection (h) do not apply if
22(A) a facility operated by an organization licensee, a school,
23or a place of worship moves to or is established within the
24restricted area after a licensed establishment, licensed truck
25stop establishment, licensed fraternal establishment, or
26licensed veterans establishment becomes licensed under this

 

 

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1Act or (B) a school or place of worship moves to or is
2established within the restricted area after a licensed
3establishment, licensed truck stop establishment, licensed
4fraternal establishment, or licensed veterans establishment
5obtains its original liquor license. For the purpose of this
6subsection, "school" means an elementary or secondary public
7school, or an elementary or secondary private school registered
8with or recognized by the State Board of Education.
9    Notwithstanding the provisions of this subsection (h), the
10Board may waive the requirement that a licensed establishment,
11licensed truck stop establishment, licensed fraternal
12establishment, or licensed veterans establishment not be
13located within 1,000 feet from a facility operated by an
14organization licensee licensed under the Illinois Horse Racing
15Act of 1975 or the home dock of a riverboat licensed under the
16Riverboat Gambling Act. The Board shall not grant such waiver
17if there is any common ownership or control, shared business
18activity, or contractual arrangement of any type between the
19establishment and the organization licensee or owners licensee
20of a riverboat. The Board shall adopt rules to implement the
21provisions of this paragraph.
22    (i) Undue economic concentration. In addition to
23considering all other requirements under this Act, in deciding
24whether to approve the operation of video gaming terminals by a
25terminal operator in a location, the Board shall consider the
26impact of any economic concentration of such operation of video

 

 

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1gaming terminals. The Board shall not allow a terminal operator
2to operate video gaming terminals if the Board determines such
3operation will result in undue economic concentration. For
4purposes of this Section, "undue economic concentration" means
5that a terminal operator would have such actual or potential
6influence over video gaming terminals in Illinois as to:
7        (1) substantially impede or suppress competition among
8    terminal operators;
9        (2) adversely impact the economic stability of the
10    video gaming industry in Illinois; or
11        (3) negatively impact the purposes of the Video Gaming
12    Act.
13    The Board shall adopt rules concerning undue economic
14concentration with respect to the operation of video gaming
15terminals in Illinois. The rules shall include, but not be
16limited to, (i) limitations on the number of video gaming
17terminals operated by any terminal operator within a defined
18geographic radius and (ii) guidelines on the discontinuation of
19operation of any such video gaming terminals the Board
20determines will cause undue economic concentration.
21    (j) The provisions of the Illinois Antitrust Act are fully
22and equally applicable to the activities of any licensee under
23this Act.
24(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
25eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.