Public Act 094-0986
 
SB2998 Enrolled LRB094 19082 EFG 54590 b

    AN ACT in relation to charitable games.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Findings; purpose; validation.
    (a) The General Assembly finds and declares that:
        (1) Public Act 88-669, effective November 29, 1994,
    contained provisions amending the Charitable Games Act.
    Public Act 88-669 also contained other provisions.
        (2) The Illinois Supreme Court declared Public Act
    88-669 to be unconstitutional as a violation of the single
    subject clause of the Illinois Constitution in People v.
    Olender, Docket No. 98932, opinion filed December 15, 2005.
    (b) The purpose of this Act is to re-enact the provisions
of the Charitable Games Act affected by Public Act 88-669 and
to minimize or prevent any problems concerning those provisions
that may arise from the unconstitutionality of Public Act
88-669. This re-enactment is intended to remove any question as
to the validity and content of those provisions; it is not
intended to supersede any other Public Act that amends the
provisions re-enacted in this Act. The re-enacted material is
shown in this Act as existing text (i.e., without underscoring)
and may include changes made by subsequent amendments.
    (c) This re-enactment of provisions of the Charitable Games
Act by this Act is not intended, and shall not be construed, to
impair any legal argument concerning whether those provisions
were substantially re-enacted by any other Public Act.
    (d) All otherwise lawful actions taken before the effective
date of this Act in reliance on or pursuant to the provisions
re-enacted by this Act, as those provisions were set forth in
Public Act 88-669 or as subsequently amended, by any officer,
employee, or agency of State government or by any other person
or entity, are hereby validated, except to the extent
prohibited under the Illinois or United States Constitution.
    (e) This Act applies, without limitation, to actions
pending on or after the effective date of this Act, except to
the extent prohibited under the Illinois or United States
Constitution.
 
    Section 5. The Charitable Games Act is amended by
re-enacting Sections 2, 4, 5, 5.1, 6, 7, 8, 10, 11, and 12 as
follows:
 
    (230 ILCS 30/2)  (from Ch. 120, par. 1122)
    Sec. 2. Definitions. For purposes of this Act, the
following definitions apply:
    "Organization": A corporation, agency, partnership,
institution, association, firm or other entity consisting of 2
or more persons joined by a common interest or purpose.
    "Sponsoring organization": A qualified organization that
has obtained a license to conduct a charitable games event in
conformance with the provisions of this Act.
    "Qualified organization":
        (a) a charitable, religious, fraternal, veterans,
    labor or educational organization or institution organized
    and conducted on a not-for-profit basis with no personal
    profit inuring to anyone as a result of the operation and
    which is exempt from federal income taxation under Sections
    501(c)(3), 501(c)(4), 501(c)(5), 501(c)(8), 501(c)(10) or
    501(c)(19) of the Internal Revenue Code;
        (b) a veterans organization as defined in Section 1 of
    the "Bingo License and Tax Act", approved July 22, 1971, as
    amended, organized and conducted on a not-for-profit basis
    with no personal profit inuring to anyone as a result of
    the operation; or
        (c) An auxiliary organization of a veterans
    organization.
    "Fraternal organization": A civic, service or charitable
organization in this State except a college or high school
fraternity or sorority, not for pecuniary profit, which is a
branch, lodge or chapter of a national or State organization
and exists for the common business, brotherhood, or other
interest of its members.
    "Veterans organization": An organization comprised of
members of which substantially all are individuals who are
veterans or spouses, widows, or widowers of veterans, the
primary purpose of which is to promote the welfare of its
members and to provide assistance to the general public in such
a way as to confer a public benefit.
    "Labor organization": An organization composed of labor
unions or workers organized with the objective of betterment of
the conditions of those engaged in such pursuit and the
development of a higher degree of efficiency in their
respective occupations.
    "Department": The Department of Revenue.
    "Volunteer": A person recruited by the sponsoring
organization who voluntarily performs services at a charitable
games event, including participation in the management or
operation of a game, as defined in Section 8.
    "Person": Any natural individual, a corporation, a
partnership, a limited liability company, an organization as
defined in this Section, a qualified organization, a sponsoring
organization, any other licensee under this Act, or a
volunteer.
(Source: P.A. 87-758; 88-669, eff. 11-29-94.)
 
    (230 ILCS 30/4)  (from Ch. 120, par. 1124)
    Sec. 4. Licensing Restrictions. Licensing for the
conducting of charitable games is subject to the following
restrictions:
        (1) The license application, when submitted to the
    Department of Revenue, must contain a sworn statement
    attesting to the not-for-profit character of the
    prospective licensee organization, signed by the presiding
    officer and the secretary of that organization. The
    application shall contain the name of the person in charge
    of and primarily responsible for the conduct of the
    charitable games. The person so designated shall be present
    on the premises continuously during charitable games. Any
    wilful misstatements contained in such application
    constitute perjury.
        (2) The application for license shall be prepared by
    the prospective licensee organization or its duly
    authorized representative in accordance with the rules of
    the Department of Revenue.
        (2.1) The application for a license shall contain a
    list of the names, addresses, social security numbers, and
    dates of birth of all persons who will participate in the
    management or operation of the games, along with a sworn
    statement made under penalties of perjury, signed by the
    presiding officer and secretary of the applicant, that the
    persons listed as participating in the management or
    operation of the games are bona fide members, volunteers as
    defined in Section 2, or employees of the applicant, that
    these persons have not participated in the management or
    operation of more than 4 charitable games events conducted
    by any licensee in the calendar year, and that these
    persons will receive no remuneration or compensation,
    directly or indirectly from any source, for participating
    in the management or operation of the games. Any amendments
    to this listing must contain an identical sworn statement.
        (2.2) The application shall be signed by the presiding
    officer and the secretary of the applicant organization,
    who shall attest under penalties of perjury that the
    information contained in the application is true, correct,
    and complete.
        (3) Each license shall state which day of the week,
    hours and at what locations the licensee is permitted to
    conduct charitable games.
        (4) Each licensee shall file a copy of the license with
    each police department or, if in unincorporated areas, each
    sheriff's office whose jurisdiction includes the premises
    on which the charitable games are authorized under the
    license.
        (5) The licensee shall display the license in a
    prominent place in the area where it is to conduct
    charitable games.
        (6) The proceeds from the license fee imposed by this
    Act shall be paid into the Illinois Gaming Law Enforcement
    Fund of the State Treasury.
        (7) Each licensee shall obtain and maintain a bond for
    the benefit of participants in games conducted by the
    licensee to insure payment to the winners of such games.
    Such bond shall be in an amount established by rule by the
    Department of Revenue. In a county with fewer than 60,000
    inhabitants, the Department may waive the bond requirement
    upon a showing by a licensee that it has sufficient funds
    on deposit to insure payment to the winners of such games.
        (8) A license is not assignable or transferable.
        (9) Unless the premises for conducting charitable
    games are provided by a municipality, the Department shall
    not issue a license permitting a person, firm or
    corporation to sponsor a charitable games night if the
    premises for the conduct of the charitable games has been
    previously used for 8 charitable games nights during the
    previous 12 months.
        (10) Auxiliary organizations of a licensee shall not be
    eligible for a license to conduct charitable games, except
    for auxiliary organizations of veterans organizations as
    authorized in Section 2.
        (11) Charitable games must be conducted in accordance
    with local building and fire code requirements.
        (12) The licensee shall consent to allowing the
    Department's employees to be present on the premises
    wherein the charitable games are conducted and to inspect
    or test equipment, devices and supplies used in the conduct
    of the game.
    Nothing in this Section shall be construed to prohibit a
licensee that conducts charitable games on its own premises
from also obtaining a providers' license in accordance with
Section 5.1. The maximum number of charitable games events that
may be held in any one premises is limited to 8 charitable
games events per calendar year.
(Source: P.A. 87-758; 88-563, eff. 1-1-95; 88-669, eff.
11-29-94.)
 
    (230 ILCS 30/5)  (from Ch. 120, par. 1125)
    Sec. 5. Providers' License. The Department shall issue a
providers' license permitting a person, firm or corporation to
provide premises for the conduct of charitable games. No
person, firm or corporation may rent or otherwise provide
premises without having first obtained a license therefor upon
written application made, verified and filed with the
Department in the form prescribed by the rules and regulations
of the Department. Each providers' license is valid for one
year from the date of issuance, unless suspended or revoked by
Department action before that date. The annual fee for such
providers' license is $50. A provider may receive reasonable
compensation for the provision of the premises. The
compensation shall not be based upon a percentage of the gross
proceeds from the charitable games. A provider, other than a
municipality, may not provide the same premises for conducting
more than 8 charitable games nights per year. A provider shall
not have any interest in any suppliers' business, either direct
or indirect. A municipality may provide the same premises for
conducting 16 charitable games nights during a 12-month period.
No employee, officer, or owner of a provider may participate in
the management or operation of a charitable games event, even
if the employee, officer, or owner is also a member, volunteer,
or employee of the charitable games licensee. A provider may
not promote or solicit a charitable games event on behalf of a
charitable games licensee or qualified organization. Any
qualified organization licensed to conduct a charitable game
need not obtain a providers' license if such games are to be
conducted on the organization's premises.
(Source: P.A. 85-1412; 88-563, eff. 1-1-95; 88-669, eff.
11-29-94.)
 
    (230 ILCS 30/5.1)  (from Ch. 120, par. 1125.1)
    Sec. 5.1. If a licensee conducts charitable games on its
own premises, the licensee may also obtain a providers' license
in accordance with Section 5 to allow the licensee to rent or
otherwise provide its premises to another licensee for the
conducting of an additional 4 charitable games events. The
maximum number of charitable games events that may be held at
any one premises is limited to 8 charitable games events per
calendar year.
(Source: P.A. 87-758; 88-669, eff. 11-29-94.)
 
    (230 ILCS 30/6)  (from Ch. 120, par. 1126)
    Sec. 6. Supplier's license. The Department shall issue a
supplier's license permitting a person, firm or corporation to
sell, lease, lend or distribute to any organization licensed to
conduct charitable games, supplies, devices and other
equipment designed for use in the playing of charitable games.
No person, firm or corporation shall sell, lease or distribute
charitable games supplies or equipment without having first
obtained a license therefor upon written application made,
verified and filed with the Department in the form prescribed
by the rules and regulations of the Department. Each supplier's
license is valid for a period of one year from the date of
issuance, unless suspended or revoked by Department action
before that date. The annual fee for such license is $500. The
Department may require by rule for the provision of surety
bonds by suppliers. A supplier shall furnish the Department
with a list of all products and equipment offered for sale or
lease to any organization licensed to conduct charitable games,
and all such products and equipment shall be sold or leased at
the prices on file with the Department. A supplier shall keep
all such products and equipment segregated and separate from
any other products, materials or equipment that it might own,
sell or lease. A supplier must include in its application for a
license the exact location of the storage of the products,
materials or equipment. A supplier, as a condition of
licensure, must consent to permitting the Department's
employees to enter supplier's premises to inspect and test all
equipment and devices. A supplier shall keep books and records
for the furnishing of products and equipment to charitable
games separate and distinct from any other business the
supplier might operate. All products and equipment supplied
must be in accord with the Department's rules and regulations.
A supplier shall not alter or modify any equipment or supplies,
or possess any equipment or supplies so altered or modified, so
as to allow the possessor or operator of the equipment to
obtain a greater chance of winning a game other than as under
normal rules of play of such games. The supplier shall not
require an organization to pay a percentage of the proceeds
from the charitable games for the use of the products or
equipment. The supplier shall file a quarterly return with the
Department listing all sales or leases for such quarter and the
gross proceeds from such sales or leases. A supplier shall
permanently affix his name to all charitable games equipment,
supplies and pull tabs. A supplier shall not have any interest
in any providers' business, either direct or indirect. If the
supplier leases his equipment for use at an unlicensed
charitable games or to an unlicensed sponsoring group, all
equipment so leased is forfeited to the State.
    No person, firm or corporation shall sell, lease or
distribute for compensation within this State, or possess with
intent to sell, lease or distribute for compensation within
this State, any chips, representations of money, wheels or any
devices or equipment designed for use or used in the play of
charitable games without first having obtained a license to do
so from the Department of Revenue. Any person, firm or
corporation which knowingly violates this paragraph shall be
guilty of a Class A misdemeanor, the fine for which shall not
exceed $50,000.
    Organizations licensed to conduct charitable games may own
their own equipment. Such organizations must apply to the
Department for an ownership permit. Any such application must
be accompanied by a $50 fee. Such organizations shall file an
annual report listing their inventory of charitable games
equipment. Such organizations may lend such equipment without
compensation to other licensed organizations without applying
for a suppliers license.
    No employee, owner, or officer of a supplier may
participate in the management or operation of a charitable
games event, even if the employee, owner, or officer is also a
member, volunteer, or employee of the charitable games
licensee. A supplier may not promote or solicit a charitable
games event on behalf of a charitable games licensee or
qualified organization.
(Source: P.A. 88-669, eff. 11-29-94.)
 
    (230 ILCS 30/7)  (from Ch. 120, par. 1127)
    Sec. 7. Ineligible Persons. The following are ineligible
for any license under this Act:
    (a) any person who has been convicted of a felony within 10
years of the date of the application;
    (b) any person who has been convicted of a violation of
Article 28 of the Criminal Code of 1961;
    (c) any person who has had a bingo, pull tabs, or
charitable games license revoked by the Department;
    (d) any person who is or has been a professional gambler;
    (d-1) any person found gambling in a manner not authorized
by this Act, participating in such gambling, or knowingly
permitting such gambling on premises where an authorized
charitable games event is being or has been conducted;
    (e) any business or organization in which a person defined
in (a), (b), (c), (d), or (d-1) has a proprietary, equitable,
or credit interest, or in which the person is active or
employed;
    (f) any business or organization in which a person defined
in (a), (b), (c), (d), or (d-1) is an officer, director, or
employee, whether compensated or not;
    (g) any organization in which a person defined in (a), (b),
(c), (d), or (d-1) is to participate in the management or
operation of charitable games.
    The Department of State Police shall provide the criminal
background of any person requested by the Department of
Revenue.
(Source: P.A. 88-669, eff. 11-29-94.)
 
    (230 ILCS 30/8)  (from Ch. 120, par. 1128)
    Sec. 8. The conducting of charitable games is subject to
the following restrictions:
        (1) The entire net proceeds from charitable games must
    be exclusively devoted to the lawful purposes of the
    organization permitted to conduct that game.
        (2) No person except a bona fide member or employee of
    the sponsoring organization, or a volunteer recruited by
    the sponsoring organization, may participate in the
    management or operation of the game. A person participates
    in the management or operation of a charitable game when he
    or she sells admission tickets at the event; sells,
    redeems, or in any way assists in the selling or redeeming
    of chips, scrip, or play money; participates in the
    conducting of any of the games played during the event, or
    supervises, directs or instructs anyone conducting a game;
    or at any time during the hours of the charitable games
    event counts, handles, or supervises anyone counting or
    handling any of the proceeds or chips, scrip, or play money
    at the event. A person who is present to ensure that the
    games are being conducted in conformance with the rules
    established by the licensed organization or is present to
    insure that the equipment is working properly is considered
    to be participating in the management or operation of a
    game. Setting up, cleaning up, selling food and drink, or
    providing security for persons or property at the event
    does not constitute participation in the management or
    operation of the game.
        Only bona fide members, volunteers as defined in
    Section 2 of this Act, and employees of the sponsoring
    organization may participate in the management or
    operation of the games. A person who participates in the
    management or operation of the games and who is not a bona
    fide member, volunteer as defined in Section 2 of this Act,
    or employee of the sponsoring organization, or who receives
    remuneration or other compensation either directly or
    indirectly from any source for participating in the
    management or operation of the games, or who has
    participated in the management or operation of more than 4
    charitable games events in the calendar year, commits a
    violation of this Act. In addition, a licensed organization
    that utilizes any person described in the preceding
    sentence commits a violation of this Act.
        (3) No person may receive any remuneration or
    compensation either directly or indirectly from any source
    for participating in the management or operation of the
    game.
        (4) No single bet at any game may exceed $10.
        (5) A bank shall be established on the premises to
    convert currency into chips, scrip, or other form of play
    money which shall then be used to play at games of chance
    which the participant chooses. Chips, scrip, or play money
    must be monogrammed with the logo of the licensed
    organization or of the supplier. Each participant must be
    issued a receipt indicating the amount of chips, scrip, or
    play money purchased.
        (6) At the conclusion of the event or when the
    participant leaves, he may cash in his chips, scrip, or
    play money in exchange for currency not to exceed $250 or
    noncash prizes. Each participant shall sign for any receipt
    of prizes. The licensee shall provide the Department of
    Revenue with a listing of all prizes awarded.
        (7) Each licensee shall be permitted to conduct
    charitable games on not more than 4 days each year.
        (8) Unless the provider of the premises is a
    municipality, the provider of the premises may not rent or
    otherwise provide the premises for the conducting of more
    than 8 charitable games nights per year.
        (9) Charitable games may not be played between the
    hours of 2:00 a.m. and noon.
        (10) No person under the age of 18 years may play or
    participate in the conducting of charitable games. Any
    person under the age of 18 years may be within the area
    where charitable games are being played only when
    accompanied by his parent or guardian.
        (11) No one other than the sponsoring organization of
    charitable games must have a proprietary interest in the
    game promoted.
        (12) Raffles or other forms of gambling prohibited by
    law shall not be conducted on the premises where charitable
    games are being conducted.
        (13) Such games are not expressly prohibited by county
    ordinance for charitable games conducted in the
    unincorporated areas of the county or municipal ordinance
    for charitable games conducted in the municipality and the
    ordinance is filed with the Department of Revenue. The
    Department shall provide each county or municipality with a
    list of organizations licensed or subsequently authorized
    by the Department to conduct charitable games in their
    jurisdiction.
        (14) The sale of tangible personal property at
    charitable games is subject to all State and local taxes
    and obligations.
        (15) Each licensee may offer or conduct only the games
    listed below, which must be conducted in accordance with
    rules posted by the organization. The organization
    sponsoring charitable games shall promulgate rules, and
    make printed copies available to participants, for the
    following games: (a) roulette; (b) blackjack; (c) poker;
    (d) pull tabs; (e) craps; (f) bang; (g) beat the dealer;
    (h) big six; (i) gin rummy; (j) five card stud poker; (k)
    chuck-a-luck; (l) keno; (m) hold-em poker; and (n)
    merchandise wheel. A licensee need not offer or conduct
    every game permitted by law. The conducting of games not
    listed above is prohibited by this Act.
        (16) No slot machines or coin-in-the-slot-operated
    devices that allow a participant to play games of chance
    based upon cards or dice shall be permitted to be used at
    the location and during the time at which the charitable
    games are being conducted.
        (17) No cards, dice, wheels, or other equipment may be
    modified or altered so as to give the licensee a greater
    advantage in winning, other than as provided under the
    normal rules of play of a particular game.
        (18) No credit shall be extended to any of the
    participants.
        (19) No person may participate in the management or
    operation of games at more than 4 charitable games events
    in any calendar year.
        (20) A supplier may have only one representative
    present at the charitable games event, for the exclusive
    purpose of ensuring that its equipment is not damaged.
        (21) No employee, owner, or officer of a consultant
    service hired by a licensed organization to perform
    services at the event including, but not limited to,
    security for persons or property at the event or services
    before the event including, but not limited to, training
    for volunteers or advertising may participate in the
    management or operation of the games.
        (22) Volunteers as defined in Section 2 of this Act and
    bona fide members and employees of a sponsoring
    organization may not receive remuneration or compensation,
    either directly or indirectly from any source, for
    participating in the management or operation of games. They
    may participate in the management or operation of no more
    than 4 charitable games events, either of the sponsoring
    organization or any other licensed organization, during a
    calendar year.
    Nothing in this Section shall be construed to prohibit a
licensee that conducts charitable games on its own premises
from also obtaining a providers' license in accordance with
Section 5.1.
(Source: P.A. 87-758; 87-1271; 88-480; 88-563, eff. 1-1-95;
88-669, eff. 11-29-94; 88-670, eff. 12-2-94.)
 
    (230 ILCS 30/10)  (from Ch. 120, par. 1130)
    Sec. 10. Each licensee must keep a complete record of
charitable games conducted within the previous 3 years. Such
record shall be open to inspection by any employee of the
Department of Revenue during reasonable business hours. Any
employee of the Department may visit the premises and inspect
such record during, and for a reasonable time before and after,
charitable games. Gross proceeds of charitable games shall be
segregated from other revenues of the licensee, including bingo
receipts, and shall be placed in a separate account.
    The Department may require that any person, organization or
corporation licensed under this Act obtain from an Illinois
certified public accounting firm at its own expense a certified
and unqualified financial statement and verification of
records of such organization. Failure of a charitable games
licensee to comply with this requirement within 90 days of
receiving notice from the Department may result in suspension
or revocation of the licensee's license and forfeiture of all
proceeds.
    The Department of Revenue shall revoke any license when it
finds that the licensee or any person connected therewith has
violated or is violating the provisions of this Act or any rule
promulgated under this Act. However, in his or her discretion,
the Director may review the offenses subjecting the licensee to
revocation and may issue a suspension. The decision to reduce a
revocation to a suspension, and the duration of the suspension,
shall be made by taking into account factors that include, but
are not limited to, the licensee's previous history of
compliance with the Act and its rules, the number, seriousness,
and duration of the violations, and the licensee's cooperation
in discontinuing and correcting the violations. Violations of
Sections 4, 5, 6, 7, and subsection (2) of Section 8 of this
Act are considered to be more serious in nature than other
violations under this Act. A revocation or suspension shall be
in addition to, and not in lieu of, any other civil penalties
or assessments that are authorized by this Act. No licensee
under this Act, while a charitable game is being conducted,
shall knowingly permit the entry into any part of the licensed
premises by any person who has been convicted of a violation of
Article 28 of the Criminal Code of 1961.
(Source: P.A. 88-669, eff. 11-29-94.)
 
    (230 ILCS 30/11)  (from Ch. 120, par. 1131)
    Sec. 11. Any organization which conducts charitable games
without first obtaining a license to do so, or which continues
to conduct such games after revocation of its charitable games
license, or any organization licensed to conduct charitable
games which allows any form of illegal gambling to be conducted
on the premises where charitable games are being conducted
shall, in addition to other penalties provided, be subject to a
civil penalty equal to the amount of gross proceeds derived on
that day from charitable games and any other illegal game that
may have been conducted as well as confiscation and forfeiture
of the gross proceeds derived from such games and any other
illegal games and confiscation and forfeiture of all charitable
games equipment used in the conduct of unlicensed games.
    Any person who violates any provision of this Act or
knowingly violates any rule of the Department for the
administration of this Act, shall, in addition to other
penalties provided, be subject to a civil penalty in the amount
of $250 for each separate violation. Persons subject to this
provision include, but are not limited to, sponsoring
organizations, volunteers, any licensee under this Act, or any
other person or organization.
(Source: P.A. 88-669, eff. 11-29-94.)
 
    (230 ILCS 30/12)  (from Ch. 120, par. 1132)
    Sec. 12. Any person who conducts or knowingly participates
in an unlicensed charitable game commits the offense of
gambling in violation of Section 28-1 of the Criminal Code of
1961, as amended. Any person who violates any provision of this
Act, or any person who fails to file a charitable games return
or who files a fraudulent return or application under this Act,
or any person who knowingly violates any rule or regulation of
the Department for the administration and enforcement of this
Act, or any officer or agent of an organization or a
corporation licensed under this Act who signs a fraudulent
return or application filed on behalf of such an organization
or corporation, is guilty of a Class A misdemeanor. Any second
or subsequent violation of this Act constitutes a Class 4
felony.
(Source: P.A. 88-669, eff. 11-29-94.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.