Full Text of SB1297 97th General Assembly
SB1297 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB1297 Introduced 2/8/2011, by Sen. Antonio Muñoz SYNOPSIS AS INTRODUCED: |
| 230 ILCS 25/1.1 | | 230 ILCS 25/2.5 new | |
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Amends the Bingo License and Tax Act. Provides that no person or organization shall conduct a remote caller bingo game without a remote caller bingo license issued from the Department of Revenue. Sets forth certain restrictions on the conducting of a remote caller bingo game. Sets forth provisions concerning costs, fees, prizes, and proceeds. Defines "remote caller bingo game".
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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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Bingo License and Tax Act is amended by | 5 | | changing Section 1.1 and by adding Section 2.5 as follows: | 6 | | (230 ILCS 25/1.1) | 7 | | Sec. 1.1. Definitions. For purposes of this Act, the | 8 | | following definitions apply: | 9 | | "Bingo" means a game in which each player has a card or | 10 | | board for which a consideration has been paid, containing 5 | 11 | | horizontal rows of spaces, with each row except the central one | 12 | | containing 5 figures. The central row has 4 figures with the | 13 | | word "free" marked in the center space. "Bingo" includes games | 14 | | that otherwise qualify under this paragraph, except for the use | 15 | | of cards where the figures are not preprinted but are filled in | 16 | | by the players. A player wins a game of bingo by completing a | 17 | | preannounced combination of spaces or, in the absence of a | 18 | | preannouncement of a combination of spaces, any combination of | 19 | | 5 spaces in a row, vertically, horizontally, or diagonally. | 20 | | "Bingo equipment" means any equipment or machinery | 21 | | designed or used for the play of bingo. "Bingo equipment" does | 22 | | not include electronic equipment. | 23 | | "Charitable organization" means an organization or |
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| 1 | | institution organized and operated to benefit an indefinite | 2 | | number of the public. | 3 | | "Department" means the Department of Revenue. | 4 | | "Educational organization" means an organization or | 5 | | institution organized and operated to provide systematic | 6 | | instruction in useful branches of learning by methods common to | 7 | | schools and institutions of learning which compare favorably in | 8 | | their scope and intensity with the course of study presented in | 9 | | tax-supported schools. | 10 | | "Fraternal organization" means an organization of persons | 11 | | having a common interest that is organized and operated | 12 | | exclusively to promote the welfare of its members and to | 13 | | benefit the general public on a continuing and consistent | 14 | | basis, including but not limited to ethnic organizations. | 15 | | "Holiday" means any of the holidays listed in Section 17 of | 16 | | the Promissory Note and Bank Holiday Act. | 17 | | "Labor organization" means an organization composed of | 18 | | labor unions or workers organized with the objectives of | 19 | | betterment of the conditions of those engaged in such pursuit | 20 | | and the development of a higher degree of efficiency in their | 21 | | respective occupations. | 22 | | "Licensed organization" means a qualified organization | 23 | | that has obtained a license to conduct bingo in conformance | 24 | | with the provisions of this Act. | 25 | | "Limited license" means a license issued to an organization | 26 | | that is not a licensed organization, but that is otherwise |
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| 1 | | eligible for a regular license to conduct bingo. A limited | 2 | | license authorizes the conduct of bingo at up to 2 indoor or | 3 | | outdoor festivals during the calendar year for which the | 4 | | license is issued for a maximum of 5 consecutive days on each | 5 | | occasion. | 6 | | "Non-profit organization" means an organization or | 7 | | institution organized and conducted on a not-for-profit basis | 8 | | with no personal profit inuring to anyone as a result of the | 9 | | operation. | 10 | | "Organization" means a corporation, agency, partnership, | 11 | | association, firm, business or other entity consisting of 2 or | 12 | | more persons joined by a common interest or purpose. | 13 | | "Person" means any natural individual, corporation, | 14 | | partnership, limited liability company, organization (as | 15 | | defined in this Section), licensee under this Act, or | 16 | | volunteer. | 17 | | "Provider" means any person or organization, except a city, | 18 | | village, or incorporated town that owns or leases premises to | 19 | | an organization for the conduct of bingo. | 20 | | "Regular license" means a license authorizing its holder to | 21 | | conduct one session of bingo per week on the date and at the | 22 | | time and location stated on the license. | 23 | | "Religious organization" means any church, congregation, | 24 | | society, or organization founded for the purpose of religious | 25 | | worship. | 26 | | "Remote caller bingo game" means a game of bingo in which |
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| 1 | | (1) the numbers or symbols on randomly-drawn plastic balls are
| 2 | | announced by a natural person present at the site where the | 3 | | live
game is conducted and (2) the organization conducting the | 4 | | game of bingo
uses audio and video technology to link any of | 5 | | its in-state
facilities for the purpose of transmitting the | 6 | | remote calling of a
live bingo game from a single location to | 7 | | multiple locations owned,
leased, or rented by that | 8 | | organization. | 9 | | "Senior citizens organization" means an organization or | 10 | | association comprised of members of which substantially all are | 11 | | individuals who are senior citizens, as defined in the Illinois | 12 | | Act on the Aging, the primary purpose of which is to promote | 13 | | the welfare of its members. | 14 | | "Special games" means bingo games that may be designated as | 15 | | such, played a maximum of 5 times during a bingo session and | 16 | | are distinguished from regular games only by the maximum price | 17 | | that may be charged for the bingo cards used. | 18 | | "Special permit" means the ability of a licensee who | 19 | | currently holds a license to be granted a permit to conduct | 20 | | bingo at other premises or on other days not exceeding 5 | 21 | | consecutive days. | 22 | | "Supplier" means any person, firm, or corporation that | 23 | | sells, leases, or distributes to any organization licensed to | 24 | | conduct bingo or to any licensed bingo supplier, cards, boards, | 25 | | sheets, markers, pads and any other supplies, devices and | 26 | | equipment designed for use in the play of bingo. |
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| 1 | | "Veterans' organization" means an organization comprised | 2 | | of members of which substantially all are individuals who are | 3 | | veterans or spouses, widows, or widowers of veterans, the | 4 | | primary purpose of which is to promote the welfare of its | 5 | | members and to provide assistance to the general public in such | 6 | | a way as to confer a public benefit. | 7 | | "Volunteer" means a person recruited by an organization who | 8 | | voluntarily performs services at a bingo event, including | 9 | | participation in the management or operation of a game. | 10 | | "Youth athletic organization" means an organization having | 11 | | as its exclusive purpose the promotion and provision of | 12 | | athletic activities for youth aged 18 and under.
| 13 | | (Source: P.A. 95-228, eff. 8-16-07.) | 14 | | (230 ILCS 25/2.5 new) | 15 | | Sec. 2.5. Remote caller bingo license; restrictions. | 16 | | (a) No person or organization may conduct a remote caller | 17 | | bingo game without a remote caller bingo license. The remote | 18 | | caller bingo game license must list all of the locations | 19 | | approved by the Department to conduct remote caller bingo games | 20 | | under that license. The Department shall issue qualifications | 21 | | for a remote caller bingo license and set forth an application | 22 | | process. | 23 | | (b) The conducting of a remote caller bingo game is subject | 24 | | to the following restrictions: | 25 | | (1) The drawing of each ball bearing a number or symbol |
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| 1 | | by the
natural person calling the game shall be visible to | 2 | | all players as
the ball is drawn, including through a | 3 | | simultaneous live video feed
at remote locations at which | 4 | | players may participate in the game. The audio or video | 5 | | technology used
to link the facilities may include cable, | 6 | | Internet, satellite,
broadband, or telephone technology, | 7 | | or any other means of electronic
transmission that ensures | 8 | | the secure, accurate, and simultaneous
transmission of the | 9 | | announcement of numbers or symbols in the game
from the | 10 | | location at which the game is called by a natural person to
| 11 | | the remote location or locations at which players may | 12 | | participate in
the game. | 13 | | (2) The remote caller bingo licensee or members of its | 14 | | organization shall not receive a profit, wage, or salary | 15 | | from the
remote caller bingo game. | 16 | | (3) The remote caller bingo game shall be operated and | 17 | | staffed
only by the remote caller bingo licensee or members | 18 | | of its organization with the exception of administrative, | 19 | | managerial, technical, financial, or security personnel | 20 | | who are employed by the remote caller bingo licensee at a | 21 | | location participating in
the remote caller bingo game. | 22 | | Notwithstanding any other provision of law, an exclusive | 23 | | agreement or other
agreement between the remote caller | 24 | | bingo licensee and other entities or
persons to provide | 25 | | services in the administration, management, or
conduct of | 26 | | the game shall not be considered a violation of the
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| 1 | | prohibition against holding a legally cognizable financial | 2 | | interest
in the conduct of the remote caller bingo game by | 3 | | persons or entities
other than the charitable | 4 | | organization. | 5 | | (4) The remote caller bingo licensee shall not have | 6 | | overhead costs exceeding
25% of gross sales, except that | 7 | | the limitations of this
item (4) shall not apply to | 8 | | one-time, non-recurring capital
acquisitions. For purposes | 9 | | of this item (4), overhead costs
include, but are not | 10 | | limited to, amounts paid for rent and equipment
leasing and | 11 | | the reasonable fees authorized to be paid to
| 12 | | administrative, managerial, technical, financial, and | 13 | | security
personnel employed by the remote caller bingo | 14 | | licensee. | 15 | | For the purpose of keeping its overhead costs below 25% | 16 | | of
gross sales, a remote caller bingo licensee may elect to | 17 | | deduct all or a
portion of the fees paid to financial | 18 | | institutions for the use and
processing of credit card | 19 | | sales from the amount of gross revenues
awarded for prizes. | 20 | | These deducted fees for the use and
processing of credit | 21 | | card sales shall not be considered overhead
costs.
| 22 | | Additionally, fees paid to financial institutions for the | 23 | | use and
processing of credit card sales shall not be | 24 | | deducted from the
proceeds retained by the charitable | 25 | | organization. | 26 | | (5) No person shall be allowed to participate in a |
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| 1 | | remote caller
bingo game unless the person is physically | 2 | | present at the time and
place where the remote caller bingo | 3 | | game is being conducted. A person
shall be deemed to be | 4 | | physically present at the place where the
remote caller | 5 | | bingo game is being conducted if he or she is present
at | 6 | | any of the locations participating in the remote caller | 7 | | bingo game
in accordance with this Section. | 8 | | (6) An organization shall only co-sponsor a remote | 9 | | caller bingo
game with one or more other organizations that | 10 | | share the same type of membership category. Unaffiliated | 11 | | organizations shall be limited to a maximum of 10 locations | 12 | | for a remote caller bingo game and a maximum of 2 remote | 13 | | caller bingo games per week. | 14 | | (7) Every remote caller bingo game shall be played | 15 | | until a
winner is declared. The declared
winner of a remote | 16 | | caller bingo game shall provide his or her
identifying | 17 | | information and a mailing address to the onsite manager
of | 18 | | the remote caller bingo game. Prizes shall be paid only by | 19 | | check if the prize money exceeds $999.99.
The remote caller | 20 | | bingo licensee may issue a check to the winner at the time | 21 | | of the
game or may a check to the declared winner by | 22 | | certified mail, return receipt requested, within 10 days | 23 | | after the remote caller bingo game. | 24 | | (8) The value of prizes awarded during the conduct of | 25 | | any remote
caller bingo game shall not exceed 40% of the | 26 | | gross receipts
for that game. If an authorized organization |
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| 1 | | elects to deduct fees
paid for the use and processing of | 2 | | credit card sales from the amount
of gross revenues for | 3 | | that game awarded for prizes, then the maximum
amount of | 4 | | gross revenues that may be awarded for prizes shall not
| 5 | | exceed 40% of the gross receipts for that game, less the
| 6 | | amount of redirected fees paid for the use and processing | 7 | | of credit
card sales. | 8 | | (9) All prize
money exceeding State and federal | 9 | | exemption limits on prize money
shall be subject to income | 10 | | tax reporting and withholding requirements
under | 11 | | applicable State and federal laws and regulations and those
| 12 | | reports and withholding shall be forwarded, within 10 | 13 | | business days after the remote caller bingo game,
to the | 14 | | appropriate State or federal agency on behalf of the | 15 | | winner. A
report shall accompany the amount withheld | 16 | | identifying the person on
whose behalf the money is being | 17 | | sent. Any game interrupted by a
transmission failure, | 18 | | electrical outage, or act of God shall be
considered void | 19 | | in the location that was affected and the organizations | 20 | | members, affiliates, and the State shall be held harmless. | 21 | | A refund for a
canceled game or games shall be provided to | 22 | | the purchasers. | 23 | | (10) The entire net proceeds, comprised of at least 35% | 24 | | of the gross proceeds, from the remote caller bingo game | 25 | | must be exclusively devoted to the lawful purposes of the | 26 | | organization permitted to conduct that game.
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