Full Text of SB1806 100th General Assembly
SB1806sam001 100TH GENERAL ASSEMBLY | Sen. Dave Syverson Filed: 3/10/2017
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| 1 | | AMENDMENT TO SENATE BILL 1806
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1806 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Video Gaming
Act is amended by changing | 5 | | Sections 25, 27, 58, and 80 as follows:
| 6 | | (230 ILCS 40/25)
| 7 | | Sec. 25. Restriction of licensees.
| 8 | | (a) Manufacturer. A person may not be licensed as a | 9 | | manufacturer of a
video gaming terminal in Illinois unless the | 10 | | person has a valid
manufacturer's license issued
under this | 11 | | Act. A manufacturer may only sell video gaming terminals for | 12 | | use
in Illinois to
persons having a valid distributor's | 13 | | license.
| 14 | | (b) Distributor. A person may not sell, distribute, or | 15 | | lease
or market a video gaming terminal in Illinois unless the | 16 | | person has a valid
distributor's
license issued under this Act. |
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| 1 | | A distributor may only sell video gaming
terminals for use in
| 2 | | Illinois to persons having a valid distributor's or terminal | 3 | | operator's
license.
| 4 | | (c) Terminal operator. A person may not own, maintain, or | 5 | | place a video gaming terminal unless he has a valid terminal | 6 | | operator's
license issued
under this Act. A terminal operator | 7 | | may only place video gaming terminals for
use in
Illinois in | 8 | | licensed establishments, licensed truck stop establishments, | 9 | | licensed fraternal establishments,
and
licensed veterans | 10 | | establishments.
No terminal operator may give anything of | 11 | | value, including but not limited to
a loan or financing | 12 | | arrangement, to a licensed establishment, licensed truck stop | 13 | | establishment,
licensed fraternal establishment, or licensed | 14 | | veterans establishment as
any incentive or inducement to locate | 15 | | video terminals in that establishment.
Of the after-tax profits
| 16 | | from a video gaming terminal, 50% shall be paid to the terminal
| 17 | | operator and 50% shall be paid to the licensed establishment, | 18 | | licensed truck stop establishment,
licensed fraternal | 19 | | establishment, or
licensed veterans establishment, | 20 | | notwithstanding any agreement to the contrary.
A video terminal | 21 | | operator that violates one or more requirements of this | 22 | | subsection is guilty of a Class 4 felony and is subject to | 23 | | termination of his or her license by the Board.
| 24 | | (d) Licensed technician. A person may not service, | 25 | | maintain, or repair a
video gaming terminal
in this State | 26 | | unless he or she (1) has a valid technician's license issued
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| 1 | | under this Act, (2) is a terminal operator, or (3) is employed | 2 | | by a terminal
operator, distributor, or manufacturer.
| 3 | | (d-5) Licensed terminal handler. No person, including, but | 4 | | not limited to, an employee or independent contractor working | 5 | | for a manufacturer, distributor, supplier, technician, or | 6 | | terminal operator licensed pursuant to this Act, shall have | 7 | | possession or control of a video gaming terminal, or access to | 8 | | the inner workings of a video gaming terminal, unless that | 9 | | person possesses a valid terminal handler's license issued | 10 | | under this Act. | 11 | | (e) Licensed establishment. No video gaming terminal may be | 12 | | placed in any licensed establishment, licensed veterans | 13 | | establishment, licensed truck stop establishment,
or licensed | 14 | | fraternal establishment
unless the owner
or agent of the owner | 15 | | of the licensed establishment, licensed veterans | 16 | | establishment, licensed truck stop establishment, or licensed
| 17 | | fraternal establishment has entered into a
written use | 18 | | agreement with the terminal operator for placement of the
| 19 | | terminals. A copy of the use agreement shall be on file in the | 20 | | terminal
operator's place of business and available for | 21 | | inspection by individuals
authorized by the Board. A licensed | 22 | | establishment, licensed truck stop establishment, licensed | 23 | | veterans establishment,
or
licensed
fraternal
establishment | 24 | | may operate up to 5 video gaming terminals on its premises at | 25 | | any
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
| 3 | | organization, an association, a business, or a limited | 4 | | liability 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 | 7 | | all individuals or their spouses whose combined interest would | 8 | | qualify as a substantial interest under this subsection (g) and | 9 | | whose activities with respect to an organization, association, | 10 | | or business are so closely aligned or coordinated as to | 11 | | constitute the activities of a single entity. | 12 | | (h) Location restriction. A licensed establishment, | 13 | | licensed truck stop establishment, licensed
fraternal
| 14 | | establishment, or licensed veterans establishment that is (i) | 15 | | located within 1,000
feet of a facility operated by an | 16 | | organization licensee licensed under the Illinois Horse Racing | 17 | | Act of 1975 or the home dock of a riverboat licensed under the | 18 | | Riverboat
Gambling Act or (ii) located within 100 feet of a | 19 | | school or a place of worship under the Religious Corporation | 20 | | Act, is ineligible to operate a video gaming terminal. The | 21 | | location restrictions in this subsection (h) do not apply if | 22 | | (A) a facility operated by an organization licensee, a school, | 23 | | or a place of worship moves to or is established within the | 24 | | restricted area after a licensed establishment, licensed truck | 25 | | stop establishment, licensed fraternal establishment, or | 26 | | licensed veterans establishment becomes licensed under this |
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| 1 | | Act or (B) a school or place of worship moves to or is | 2 | | established within the restricted area after a licensed | 3 | | establishment, licensed truck stop establishment, licensed | 4 | | fraternal establishment, or licensed veterans establishment | 5 | | obtains its original liquor license. For the purpose of this | 6 | | subsection, "school" means an elementary or secondary public | 7 | | school, or an elementary or secondary private school registered | 8 | | with or recognized by the State Board of Education. | 9 | | Notwithstanding the provisions of this subsection (h), the | 10 | | Board may waive the requirement that a licensed establishment, | 11 | | licensed truck stop establishment, licensed fraternal | 12 | | establishment, or licensed veterans establishment not be | 13 | | located within 1,000 feet from a facility operated by an | 14 | | organization licensee licensed under the Illinois Horse Racing | 15 | | Act of 1975 or the home dock of a riverboat licensed under the | 16 | | Riverboat Gambling Act. The Board shall not grant such waiver | 17 | | if there is any common ownership or control, shared business | 18 | | activity, or contractual arrangement of any type between the | 19 | | establishment and the organization licensee or owners licensee | 20 | | of a riverboat. The Board shall adopt rules to implement the | 21 | | provisions of this paragraph. | 22 | | (h-5) Restrictions on licenses in malls. The Board shall | 23 | | not grant an application to become a licensed video gaming | 24 | | location if the Board determines that granting the application | 25 | | would more likely than not cause a terminal operator, | 26 | | individually or in combination with other terminal operators, |
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| 1 | | licensed video gaming location, or other person or entity, to | 2 | | operate the video gaming terminals in 2 or more licensed video | 3 | | gaming locations as a single video gaming operation. | 4 | | (1) In making determinations under this subsection | 5 | | (h-5), factors to be considered by the Board shall include, | 6 | | but not be limited to, the following: | 7 | | (A) the physical aspects of the location; | 8 | | (B) the ownership, control, or management of the | 9 | | location; | 10 | | (C) any arrangements, understandings, or | 11 | | agreements, written or otherwise, among or involving | 12 | | any persons or entities that involve the conducting of | 13 | | any video gaming business or the sharing of costs or | 14 | | revenues; and | 15 | | (D) the manner in which any terminal operator or | 16 | | other related entity markets, advertises, or otherwise | 17 | | describes any location or locations to any other person | 18 | | or entity or to the public. | 19 | | (2) The Board shall presume, subject to rebuttal, that | 20 | | the granting of an application to become a licensed video | 21 | | gaming location within a mall will cause a terminal | 22 | | operator, individually or in combination with other | 23 | | persons or entities, to operate the video gaming terminals | 24 | | in 2 or more licensed video gaming locations as a single | 25 | | video gaming operation if the Board determines that | 26 | | granting the license would create a local concentration of |
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| 1 | | licensed video gaming locations. | 2 | | For the purposes of this subsection (h-5): | 3 | | "Mall" means a building, or adjoining or connected | 4 | | buildings, containing 4 or more separate locations. | 5 | | "Video gaming operation" means the conducting of video | 6 | | gaming and all related activities. | 7 | | "Location" means a space within a mall containing a | 8 | | separate business, a place for a separate business, or a place | 9 | | subject to a separate leasing arrangement by the mall owner. | 10 | | "Licensed video gaming location" means a licensed | 11 | | establishment, licensed fraternal establishment, licensed | 12 | | veterans establishment, or licensed truck stop. | 13 | | "Local concentration of licensed video gaming locations" | 14 | | means that the combined number of licensed video gaming | 15 | | locations within a mall exceed half of the separate locations | 16 | | within the mall. | 17 | | (i) Undue economic concentration. In addition to | 18 | | considering all other requirements under this Act, in deciding | 19 | | whether to approve the operation of video gaming terminals by a | 20 | | terminal operator in a location, the Board shall consider the | 21 | | impact of any economic concentration of such operation of video | 22 | | gaming terminals. The Board shall not allow a terminal operator | 23 | | to operate video gaming terminals if the Board determines such | 24 | | operation will result in undue economic concentration. For | 25 | | purposes of this Section, "undue economic concentration" means | 26 | | that a terminal operator would have such actual or potential |
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| 1 | | influence over video gaming terminals in Illinois as to: | 2 | | (1) substantially impede or suppress competition among | 3 | | terminal operators; | 4 | | (2) adversely impact the economic stability of the | 5 | | video gaming industry in Illinois; or | 6 | | (3) negatively impact the purposes of the Video Gaming | 7 | | Act. | 8 | | The Board shall adopt rules concerning undue economic | 9 | | concentration with respect to the operation of video gaming | 10 | | terminals in Illinois. The rules shall include, but not be | 11 | | limited to, (i) limitations on the number of video gaming | 12 | | terminals operated by any terminal operator within a defined | 13 | | geographic radius and (ii) guidelines on the discontinuation of | 14 | | operation of any such video gaming terminals the Board | 15 | | determines will cause undue economic concentration.
| 16 | | (j) The provisions of the Illinois Antitrust Act are fully | 17 | | and equally applicable to the activities of any licensee under | 18 | | this Act.
| 19 | | (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77, | 20 | | eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
| 21 | | (230 ILCS 40/27)
| 22 | | Sec. 27. Prohibition or limitation of video gaming by | 23 | | political subdivision. | 24 | | (a) A
municipality may
pass an ordinance prohibiting video | 25 | | gaming within the corporate limits of the
municipality.
A |
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| 1 | | county board may, for the unincorporated area of the county, | 2 | | pass an
ordinance prohibiting video gaming within the | 3 | | unincorporated area of the
county.
| 4 | | (b) A municipality, or a county with respect to | 5 | | unincorporated portions of the county, may impose separate | 6 | | requirements on video gaming that provide sources of municipal | 7 | | or county revenue or impose limitations on video gaming more | 8 | | restrictive than those provided under this Act. These | 9 | | requirements may include one or more of the following: | 10 | | (1) license fees; | 11 | | (2) occupation taxes; | 12 | | (3) licensing requirements; | 13 | | (4) limitations on hours of video gaming terminal play | 14 | | more restrictive than those provided under the liquor | 15 | | license of a licensed establishment, licensed veterans | 16 | | organization, or licensed fraternal organization; | 17 | | (5) limitations on the numbers of video gaming | 18 | | terminals within a licensed establishment, licensed | 19 | | veterans organization, licensed fraternal organization, or | 20 | | licensed truck stop; | 21 | | (6) limitations on the total number of licensed | 22 | | establishments, licensed veterans organizations, licensed | 23 | | fraternal organizations, or licensed truck stops allowed | 24 | | within the municipality or county, or a specific portion of | 25 | | the municipality or county; | 26 | | (7) limitations on hours of video gaming play; |
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| 1 | | (8) zoning to limit the areas within a municipality or | 2 | | county where video gaming is permitted; or | 3 | | (9) other requirements intended to promote safety, | 4 | | morals, health, or welfare within the municipality or | 5 | | county. | 6 | | (Source: P.A. 96-34, eff. 7-13-09.) | 7 | | (230 ILCS 40/58)
| 8 | | Sec. 58. Location of terminals. Video gaming terminals | 9 | | must be located
in an area restricted to persons over 21 years | 10 | | of age the entrance to which is within the view of at least one | 11 | | employee , who is over 21 years of age, of the
establishment in | 12 | | which they are located or, if a licensed truck stop | 13 | | establishment, monitored through a closed circuit television | 14 | | monitor located on the premises and within the direct view of | 15 | | at least one employee who is over 21 years of age . The | 16 | | placement of video gaming terminals in licensed | 17 | | establishments, licensed truck stop establishments, licensed | 18 | | fraternal establishments, and licensed veterans establishments | 19 | | shall be subject to the rules promulgated by the Board pursuant | 20 | | to the Illinois Administrative Procedure Act.
| 21 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
| 22 | | (230 ILCS 40/80)
| 23 | | Sec. 80. Applicability of Illinois Riverboat Gambling Act. | 24 | | The provisions of the Illinois Riverboat Gambling Act, and all |
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| 1 | | rules promulgated thereunder, shall apply to the Video Gaming | 2 | | Act, except where there is a conflict between the 2 Acts. All | 3 | | current supplier licensees under the Riverboat Gambling Act | 4 | | shall be entitled to licensure under the Video Gaming Act as | 5 | | manufacturers, distributors, or suppliers without additional | 6 | | Board investigation or approval, except by vote of the Board; | 7 | | however, they are required to pay application and annual fees | 8 | | under this Act. All provisions of the Uniform Penalty and | 9 | | Interest Act shall apply, as far as practicable, to the subject | 10 | | matter of this Act to the same extent as if such provisions | 11 | | were included herein.
| 12 | | (Source: P.A. 96-37, eff. 7-13-09.)".
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