Sen. Steven M. Landek

Filed: 3/6/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1870

2    AMENDMENT NO. ______. Amend Senate Bill 1870 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Charitable Games Act is amended by changing
5Sections 2, 4, 5, 5.1, and 8 as follows:
 
6    (230 ILCS 30/2)  (from Ch. 120, par. 1122)
7    Sec. 2. Definitions. For purposes of this Act, the
8following definitions apply:
9    "Charitable games" means the 14 games of chance involving
10cards, dice, wheels, random selection of numbers, and gambling
11tickets which may be conducted at charitable games events
12listed as follows: roulette, blackjack, poker, pull tabs,
13craps, bang, beat the dealer, big six, gin rummy, five card
14stud poker, chuck-a-luck, keno, hold-em poker, and merchandise
15wheel.
16    "Charitable games event" or "event" means the type of

 

 

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1fundraising event authorized by the Act at which participants
2pay to play charitable games for the chance of winning cash or
3noncash prizes.
4    "Charitable organization" means an organization or
5institution organized and operated to benefit an indefinite
6number of the public.
7    "Chips" means scrip, play money, poker or casino chips, or
8any other representations of money, used to make wagers on the
9outcome of any charitable game.
10    "Department" means the Department of Revenue.
11    "Educational organization" means an organization or
12institution organized and operated to provide systematic
13instruction in useful branches of learning by methods common to
14schools and institutions of learning which compare favorably in
15their scope and intensity with the course of study presented in
16tax-supported schools.
17    "Fraternal organization" means an organization of persons
18having a common interest that is organized and operated
19exclusively to promote the welfare of its members and to
20benefit the general public on a continuing and consistent
21basis, including but not limited to ethnic organizations.
22    "House-backed game" means a game where (1) the player is
23playing against the sponsoring organization and (2) the
24sponsoring organization is staking the game.
25    "Labor organization" means an organization composed of
26labor unions or workers organized with the objective of

 

 

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1betterment of the conditions of those engaged in such pursuit
2and the development of a higher degree of efficiency in their
3respective occupations.
4    "Licensed organization" means a qualified organization
5that has obtained a license to conduct a charitable games event
6in conformance with the provisions of this Act.
7    "Non-profit organization" means an organization or
8institution organized and conducted on a not-for-profit basis
9with no personal profit inuring to anyone as a result of the
10operation.
11    "Organization": A corporation, agency, partnership,
12association, firm, business, or other entity consisting of 2 or
13more persons joined by a common interest or purpose.
14    "Person" means any natural individual, corporation,
15partnership, limited liability company, organization as
16defined in this Section, qualified organization, licensed
17organization, licensee under this Act, or volunteer.
18    "Player-backed game" means a game where (1) the players of
19the game are playing one another and not the sponsoring
20organization and (2) the outcome of the game does not affect
21the sponsoring organization because it does not have any stake
22in the game.
23    "Premises" means a distinct parcel of land and the
24buildings thereon.
25    "Provider" means the person or organization owning,
26leasing, or controlling premises upon which any charitable

 

 

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1games event is to be conducted.
2    "Qualified organization" means:
3        (a) a charitable, religious, fraternal, veterans,
4    labor or educational organization or institution organized
5    and conducted on a not-for-profit basis with no personal
6    profit inuring to anyone as a result of the operation and
7    which is exempt from federal income taxation under Sections
8    501(c)(3), 501(c)(4), 501(c)(5), 501(c)(8), 501(c)(10) or
9    501(c)(19) of the Internal Revenue Code;
10        (b) a veterans organization as defined in Section 1.1
11    of the "Bingo License and Tax Act"organized and conducted
12    on a not-for-profit basis with no personal profit inuring
13    to anyone as a result of the operation; or
14        (c) An auxiliary organization of a veterans
15    organization.
16    "Religious organization" means any church, congregation,
17society, or organization founded for the purpose of religious
18worship.
19    "Sponsoring organization" means a qualified organization
20that has obtained a license to conduct a charitable games event
21in conformance with the provisions of this Act.
22    "Supplier" means any person, firm, or corporation that
23sells, leases, lends, distributes, or otherwise provides to any
24organization licensed to conduct charitable games events in
25Illinois any charitable games equipment.
26    "Veterans' organization" means an organization comprised

 

 

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1of members of which substantially all are individuals who are
2veterans or spouses, widows, or widowers of veterans, the
3primary purpose of which is to promote the welfare of its
4members and to provide assistance to the general public in such
5a way as to confer a public benefit.
6    "Volunteer" means a person recruited by a licensed
7organization who voluntarily performs services at a charitable
8games event, including participation in the management or
9operation of a game, as defined in Section 8.
10(Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)
 
11    (230 ILCS 30/4)  (from Ch. 120, par. 1124)
12    Sec. 4. Licensing Restrictions. Licensing for the
13conducting of charitable games is subject to the following
14restrictions:
15        (1) The license application, when submitted to the
16    Department of Revenue, must contain a sworn statement
17    attesting to the not-for-profit character of the
18    prospective licensee organization, signed by a person
19    listed on the application as an owner, officer, or other
20    person in charge of the necessary day-to-day operations.
21    The application shall contain the name of the person in
22    charge of and primarily responsible for the conduct of the
23    charitable games. The person so designated shall be present
24    on the premises continuously during charitable games.
25        (2) The license application shall be prepared by the

 

 

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1    prospective licensee organization or its duly authorized
2    representative in accordance with the rules of the
3    Department of Revenue.
4        (2.1) The organization shall maintain among its books
5    and records a list of the names, addresses, social security
6    numbers, and dates of birth of all persons who will
7    participate in the management or operation of the games,
8    along with a sworn statement made under penalties of
9    perjury, signed by a person listed on the application as an
10    owner, officer, or other person in charge of the necessary
11    day-to-day operations, that the persons listed as
12    participating in the management or operation of the games
13    are bona fide members, volunteers as defined in Section 2,
14    or employees of the applicant, that these persons have not
15    participated in the management or operation of more than 4
16    charitable games events conducted by any licensee in the
17    calendar year, and that these persons will receive no
18    remuneration or compensation, directly or indirectly from
19    any licensed organization source, for participating in the
20    management or operation of the games. Any amendments to
21    this listing must contain an identical sworn statement.
22        (2.2) (Blank).
23        (3) Each license shall state the date, hours and at
24    what locations the licensee is permitted to conduct
25    charitable games.
26        (4) Each licensee shall file a copy of the license with

 

 

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1    each police department or, if in unincorporated areas, each
2    sheriff's office whose jurisdiction includes the premises
3    on which the charitable games are authorized under the
4    license.
5        (5) The licensee shall prominently display the license
6    in the area where the licensee is to conduct charitable
7    games. The licensee shall likewise display, in the form and
8    manner prescribed by the Department, the provisions of
9    Section 9 of this Act.
10        (6) (Blank).
11        (7) Each licensee shall obtain and maintain a bond for
12    the benefit of participants in games conducted by the
13    licensee to insure payment to the winners of such games.
14    Such bond discretionary by the Department and shall be in
15    an amount established by rule by the Department of Revenue.
16    In a county with fewer than 60,000 inhabitants, the
17    Department may waive the bond requirement upon a showing by
18    a licensee that it has sufficient funds on deposit to
19    insure payment to the winners of such games. The bond
20    requirement contained in this paragraph (7) does not apply
21    to player-backed games.
22        (8) A license is not assignable or transferable.
23        (9) Unless the premises for conducting charitable
24    games are provided by a municipality, the Department shall
25    not issue a license permitting a person, firm or
26    corporation to sponsor a charitable games night if the

 

 

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1    premises for the conduct of the charitable games has been
2    previously used for 8 charitable games nights during the
3    previous 12 months.
4        (10) Auxiliary organizations of a licensee shall not be
5    eligible for a license to conduct charitable games, except
6    for auxiliary organizations of veterans organizations as
7    authorized in Section 2.
8        (11) Charitable games must be conducted in accordance
9    with local building and fire code requirements.
10        (12) The licensee shall consent to allowing the
11    Department's employees to be present on the premises
12    wherein the charitable games are conducted and to inspect
13    or test equipment, devices and supplies used in the conduct
14    of the game.
15    Nothing in this Section shall be construed to prohibit a
16licensee that conducts charitable games on its own premises
17from also obtaining a providers' license in accordance with
18Section 5.1. The maximum number of charitable games events that
19may be held in any one premises is limited to 8 charitable
20games events per calendar year; however, this limitation does
21not apply to charitable games events held at a municipal
22building.
23(Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)
 
24    (230 ILCS 30/5)  (from Ch. 120, par. 1125)
25    Sec. 5. Providers' License. The Department shall issue a

 

 

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1providers' license permitting a person, firm or corporation to
2provide premises for the conduct of charitable games. No
3person, firm or corporation may rent or otherwise provide
4premises without having first obtained a license. Applications
5for providers' licenses shall be made in writing in accordance
6with Department rules. The Department shall license providers
7of charitable games at a nonrefundable annual fee of $50, or
8nonrefundable triennial license fee of $150. Each providers'
9license is valid for one year from the date of issuance, or 3
10years from date of issuance for a triennial license, unless
11extended, suspended, or revoked by Department action before
12that date. Any extension of a providers' license shall not
13exceed one year. A provider may receive reasonable compensation
14for the provision of the premises. Reasonable expenses shall
15include only those expenses defined as reasonable by rules
16adopted by the Department. A provider, other than a
17municipality, may not provide the same premises for conducting
18more than 8 charitable games nights per year. A provider shall
19not have any interest in any suppliers' business, either direct
20or indirect. A municipality may provide the same premises for
21conducting 16 charitable games nights every Friday, Saturday,
22and Sunday during a 12-month period. No employee, officer, or
23owner of a provider may participate in the management or
24operation of a charitable games event, even if the employee,
25officer, or owner is also a member, volunteer, or employee of
26the charitable games licensee. A provider may not promote or

 

 

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1solicit a charitable games event on behalf of a charitable
2games licensee or qualified organization. Any qualified
3organization licensed to conduct a charitable game need not
4obtain a providers' license if such games are to be conducted
5on the organization's premises.
6(Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)
 
7    (230 ILCS 30/5.1)  (from Ch. 120, par. 1125.1)
8    Sec. 5.1. If a licensee conducts charitable games on its
9own premises, the licensee may also obtain a providers' license
10in accordance with Section 5 to allow the licensee to rent or
11otherwise provide its premises to another licensee for the
12conducting of an additional 4 charitable games events. The
13maximum number of charitable games events that may be held at
14any one premises is limited to 8 charitable games events per
15calendar year; however, this limitation does not apply to
16charitable games events held at a municipal building.
17(Source: P.A. 94-986, eff. 6-30-06.)
 
18    (230 ILCS 30/8)  (from Ch. 120, par. 1128)
19    Sec. 8. The conducting of charitable games is subject to
20the following restrictions:
21        (1) The entire net proceeds from charitable games must
22    be exclusively devoted to the lawful purposes of the
23    organization permitted to conduct that game.
24        (2) No person except a bona fide member or employee of

 

 

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1    the sponsoring organization, or a volunteer recruited by
2    the sponsoring organization, may participate in the
3    management or operation of the game. A person participates
4    in the management or operation of a charitable game when he
5    or she sells admission tickets at the event; sells,
6    redeems, or in any way assists in the selling or redeeming
7    of chips, scrip, or play money; participates in the
8    conducting of any of the games played during the event, or
9    supervises, directs or instructs anyone conducting a game;
10    or at any time during the hours of the charitable games
11    event counts, handles, or supervises anyone counting or
12    handling any of the proceeds or chips, scrip, or play money
13    at the event. A person who is present to ensure that the
14    games are being conducted in conformance with the rules
15    established by the licensed organization or is present to
16    insure that the equipment is working properly is considered
17    to be participating in the management or operation of a
18    game. Setting up, cleaning up, selling food and drink, or
19    providing security for persons or property at the event
20    does not constitute participation in the management or
21    operation of the game.
22        Only bona fide members, volunteers as defined in
23    Section 2 of this Act, and employees of the sponsoring
24    organization may participate in the management or
25    operation of the games. Participation in the management or
26    operation of the games is limited to no more than 4

 

 

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1    charitable games events, either of the sponsoring
2    organization or any other licensed organization, during a
3    calendar year.
4        (3) No person may receive any remuneration or
5    compensation either directly or indirectly from any
6    licensed organization source for participating in the
7    management or operation of the game.
8        (4) No single bet at any house-backed game may exceed
9    $10.
10        (5) A bank shall be established on the premises to
11    convert currency into chips, scrip, or other form of play
12    money which shall then be used to play at games of chance
13    which the participant chooses. Chips, scrip, or play money
14    must be permanently monogrammed with the logo of the
15    licensed organization or of the supplier. Each participant
16    must be issued a receipt indicating the amount of chips,
17    scrip, or play money purchased.
18        (6) At the conclusion of the event or when the
19    participant leaves, he may cash in his chips, scrip, or
20    play money in exchange for currency not to exceed $250 or
21    noncash prizes. However, when house-backed games are
22    played at an event, participants may cash in for currency
23    not to exceed $250 or noncash prizes. Each participant
24    shall sign for any receipt of prizes. The licensee shall
25    provide the Department of Revenue with a listing of all
26    prizes awarded, including the retail value of all prizes

 

 

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1    awarded.
2        (7) Each licensee shall be permitted to conduct
3    charitable games on not more than 6 4 days each year.
4    Nothing in this Section shall be construed to prohibit a
5    licensee that conducts charitable games on its own premises
6    from also obtaining a providers' license in accordance with
7    Section 7 of this Act.
8        (8) Unless the provider of the premises is a
9    municipality, the provider of the premises may not rent or
10    otherwise provide the premises for the conducting of more
11    than 8 charitable games nights per year.
12        (9) A charitable games event is considered to be a
13    one-day event and charitable games may not be played
14    between the hours of 2:00 a.m. and noon.
15        (10) No person under the age of 18 years may play or
16    participate in the conducting of charitable games. Any
17    person under the age of 18 years may be within the area
18    where charitable games are being played only when
19    accompanied by his parent or guardian.
20        (11) No one other than the sponsoring organization of
21    charitable games must have a proprietary interest in the
22    game promoted.
23        (12) Raffles or other forms of gambling prohibited by
24    law shall not be conducted on the premises where charitable
25    games are being conducted.
26        (13) Such games are not expressly prohibited by county

 

 

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1    ordinance for charitable games conducted in the
2    unincorporated areas of the county or municipal ordinance
3    for charitable games conducted in the municipality and the
4    ordinance is filed with the Department of Revenue. The
5    Department shall provide each county or municipality with a
6    list of organizations licensed or subsequently authorized
7    by the Department to conduct charitable games in their
8    jurisdiction.
9        (14) The sale of tangible personal property at
10    charitable games is subject to all State and local taxes
11    and obligations.
12        (15) Each licensee may offer or conduct only the games
13    listed below, which must be conducted in accordance with
14    rules posted by the organization. The organization
15    sponsoring charitable games shall promulgate rules, and
16    make printed copies available to participants, for the
17    following games: (a) roulette; (b) blackjack; (c) poker;
18    (d) pull tabs; (e) craps; (f) bang; (g) beat the dealer;
19    (h) big six; (i) gin rummy; (j) five card stud poker; (k)
20    chuck-a-luck; (l) keno; (m) hold-em poker; and (n)
21    merchandise wheel. A licensee need not offer or conduct
22    every game permitted by law. The conducting of games not
23    listed above is prohibited by this Act.
24        (16) No unlicensed slot machines or
25    coin-in-the-slot-operated devices that allow a participant
26    to play games of chance shall be permitted to be used at

 

 

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1    the location and during the time at which the charitable
2    games are being conducted.
3        (17) No cards, dice, wheels, or other equipment may be
4    modified or altered so as to give the licensee a greater
5    advantage in winning, other than as provided under the
6    normal rules of play of a particular game.
7        (18) No credit shall be extended to any of the
8    participants.
9        (19) (Blank).
10        (20) A supplier may have only one representative
11    present at the charitable games event, for the exclusive
12    purpose of ensuring that its equipment is not damaged.
13        (21) No employee, owner, or officer of a consultant
14    service hired by a licensed organization to perform
15    services at the event including, but not limited to,
16    security for persons or property at the event or services
17    before the event including, but not limited to, training
18    for volunteers or advertising may participate in the
19    management or operation of the games. However, a consultant
20    hired by a licensed organization may attend the event to
21    consult and advise his or her client. Advice and on-site
22    training does not constitute management of an event.
23        (22) (Blank).
24(Source: P.A. 94-986, eff. 6-30-06; 95-228, eff. 8-16-07.)".