SB2797ham001 98TH GENERAL ASSEMBLY

Rep. Luis Arroyo

Filed: 5/16/2014

09800SB2797ham001 LRB098 18442 AMC 59694 a

AMENDMENT TO SENATE BILL 2797

AMENDMENT NO. ______. Amend Senate Bill 2797 by replacing everything of the enacting clause with the following:

"Section 5. The Video Gaming Act is amended by changing Section 5 and by adding Section 59 as follows:

(230 ILCS 40/5)

Sec. 5. Definitions. As used in this Act:

"Board" means the Illinois Gaming Board.

"Credit" means one, 5, 10, or 25 cents either won or purchased by a player.

"Distributor" means an individual, partnership, corporation, or limited liability company licensed under this Act to buy, sell, lease, or distribute video gaming terminals or major components or parts of video gaming terminals to or from terminal operators.

"Electronic card" means a card purchased from a licensed establishment, licensed fraternal establishment, licensed veterans establishment, or licensed truck stop establishment for use in that establishment as a substitute for cash in the conduct of gaming on a video gaming terminal.

"Electronic voucher" means a voucher printed by an electronic video game machine that is redeemable in the licensed establishment for which it was issued.

"Terminal operator" means an individual, partnership, corporation, or limited liability company that is licensed under this Act and that owns, services, and maintains video gaming terminals for placement in licensed establishments, licensed truck stop establishments, licensed fraternal establishments, or licensed veterans establishments.

"Licensed technician" means an individual who is licensed under this Act to repair, service, and maintain video gaming terminals.

"Licensed terminal handler" means a person, including but not limited to an employee or independent contractor working for a manufacturer, distributor, supplier, technician, or terminal operator, who is licensed under this Act to possess or control a video gaming terminal or to have access to the inner workings of a video gaming terminal. A licensed terminal handler does not include an individual, partnership, corporation, or limited liability company defined as a manufacturer, distributor, supplier, technician, or terminal operator under this Act.

"Manufacturer" means an individual, partnership, corporation, or limited liability company that is licensed under this Act and that manufactures or assembles video gaming terminals.

"Supplier" means an individual, partnership, corporation, or limited liability company that is licensed under this Act to supply major components or parts to video gaming terminals to licensed terminal operators.

"Net terminal income" means money put into a video gaming terminal minus credits paid out to players.

"Video gaming terminal" means any electronic video game machine that, upon insertion of cash, electronic cards or vouchers, or any combination thereof, electronic voucher, or any combination thereof, is available to play or simulate the play of a video game, including but not limited to video poker, line up, and blackjack, as authorized by the Board utilizing a video display and microprocessors in which the player may receive free games or credits that can be redeemed for cash. The term does not include a machine that directly dispenses coins, cash, or tokens or is for amusement purposes only.

"Licensed establishment" means any licensed retail establishment where alcoholic liquor is drawn, poured, mixed, or otherwise served for consumption on the premises, whether the establishment operates on a nonprofit or for-profit basis. "Licensed establishment" includes any such establishment that has a contractual relationship with an inter-track wagering location licensee licensed under the Illinois Horse Racing Act of 1975, provided any contractual relationship shall not include any transfer or offer of revenue from the operation of video gaming under this Act to any licensee licensed under the Illinois Horse Racing Act of 1975. Provided, however, that the licensed establishment that has such a contractual relationship with an inter-track wagering location licensee may not, itself, be (i) an inter-track wagering location licensee, (ii) the corporate parent or subsidiary of any licensee licensed under the Illinois Horse Racing Act of 1975, or (iii) the corporate subsidiary of a corporation that is also the corporate parent or subsidiary of any licensee licensed under the Illinois Horse Racing Act of 1975. "Licensed establishment" does not include a facility operated by an organization licensee, an inter-track wagering licensee, or an inter-track wagering location licensee licensed under the Illinois Horse Racing Act of 1975 or a riverboat licensed under the Riverboat Gambling Act, except as provided in this paragraph. The changes made to this definition by Public Act 98-587 this amendatory Act of the 98th General Assembly are declarative of existing law.

"Licensed fraternal establishment" means the location where a qualified fraternal organization that derives its charter from a national fraternal organization regularly meets.

"Licensed veterans establishment" means the location where a qualified veterans organization that derives its charter from a national veterans organization regularly meets.

"Licensed truck stop establishment" means a facility (i) that is at least a 3-acre facility with a convenience store, (ii) with separate diesel islands for fueling commercial motor vehicles, (iii) that sells at retail more than 10,000 gallons of diesel or biodiesel fuel per month, and (iv) with parking spaces for commercial motor vehicles. "Commercial motor vehicles" has the same meaning as defined in Section 18b-101 of the Illinois Vehicle Code. The requirement of item (iii) of this paragraph may be met by showing that estimated future sales or past sales average at least 10,000 gallons per month.

"Video Gaming Board Exclusion List" or "Exclusion List" means a publicly available list of persons compiled and maintained by the Board pursuant to Section 59 of this Act and procedures established by Board rule.

(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-582, eff. 8-27-13; 98-587, eff. 8-27-13; revised 9-19-13.)

(230 ILCS 40/59 new)

Sec. 59. Video Gaming Board Exclusion List.

(a) The Board shall have authority to establish a Video Gaming Board Exclusion List. Persons on the Exclusion List shall be prohibited from licensure under this Act and from engaging in any activities, agreements, or transactions authorized by this Act, the rules adopted under this Act, or a final order of the Board that are directly related to the conduct and operation of video gaming and not otherwise excluded. Activities, agreements, and transactions not affected by this Section include, but are not limited to, agreements to provide or to purchase nongaming-related goods or services, such as food, beverages, coin-operated amusement devices (if the possession is not prohibited by subsection (a) of Section 35 of this Act), vending machines, or ATMs; employment that is not directly involved in the gaming activity, such as serving food or beverages to customers, cleaning, maintenance, beer line cleaning, plumbing, electrical, snow removal, construction, and the like (provided the employee is not an officer, director, limited liability company member, or the like of the licensed establishment, licensed fraternal establishment, licensed veterans establishment, or licensed truck stop establishment); provision of legal, accounting, or insurance services, if not based on a percentage of video gaming revenue; and rental or leasing agreements concerning the licensed premises if rents are not computed by any formula involving as a variable a percentage of video gaming revenue. Nothing in this Section shall be deemed to invalidate agreements entered into prior to the effective date of this amendatory Act of the 98th General Assembly.

(b) The Board may place a person on the Video Gaming Board Exclusion List for reasons that include, but are not limited to, the following reasons:

(i) the person has been found to be in violation of this Act or any rules adopted under this Act by a final administrative decision of the Board for which review is barred under the Administrative Review Law or a final decision, order, or judgment of a court; or

(ii) the person's conduct or reputation is such that his or her licensure under this Act or engagement in activities, agreements, or transactions authorized by this Act, and not otherwise exempt from the provisions of this Section would call into question the honesty and integrity of video gaming operations or interfere with the orderly conduct of such operations, except that placement on the Exclusion List pursuant to this paragraph (ii) shall not occur until notice is provided to the person pursuant to subsection (c) of this Section and until any requested hearing conducted pursuant to subsection (c) is concluded, with a finding that the person qualifies for placement on the Exclusion List.

(c) The proposed placement of a person on the Video Gaming Board Exclusion List shall be subject to notice as provided under the Board's riverboat gambling rules (86 Ill. Adm. Code 3000.730) and a subsequent hearing by the Board pursuant to the Board's video gaming rules (11 Ill. Adm. Code 1800.720).

Section 99. Effective date. This Act takes effect upon becoming law.".