Sen. Dave Syverson

Filed: 3/10/2017





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2    AMENDMENT NO. ______. Amend Senate Bill 1806 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Video Gaming Act is amended by changing
5Sections 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
9manufacturer of a video gaming terminal in Illinois unless the
10person has a valid manufacturer's license issued under this
11Act. A manufacturer may only sell video gaming terminals for
12use in Illinois to persons having a valid distributor's
14    (b) Distributor. A person may not sell, distribute, or
15lease or market a video gaming terminal in Illinois unless the
16person has a valid distributor's license issued under this Act.



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1A distributor may only sell video gaming terminals for use in
2Illinois to persons having a valid distributor's or terminal
3operator's license.
4    (c) Terminal operator. A person may not own, maintain, or
5place a video gaming terminal unless he has a valid terminal
6operator's license issued under this Act. A terminal operator
7may only place video gaming terminals for use in Illinois in
8licensed establishments, licensed truck stop establishments,
9licensed fraternal establishments, and licensed veterans
10establishments. No terminal operator may give anything of
11value, including but not limited to a loan or financing
12arrangement, to a licensed establishment, licensed truck stop
13establishment, licensed fraternal establishment, or licensed
14veterans establishment as any incentive or inducement to locate
15video terminals in that establishment. Of the after-tax profits
16from a video gaming terminal, 50% shall be paid to the terminal
17operator and 50% shall be paid to the licensed establishment,
18licensed truck stop establishment, licensed fraternal
19establishment, or licensed veterans establishment,
20notwithstanding any agreement to the contrary. A video terminal
21operator that violates one or more requirements of this
22subsection is guilty of a Class 4 felony and is subject to
23termination of his or her license by the Board.
24    (d) Licensed technician. A person may not service,
25maintain, or repair a video gaming terminal in this State
26unless he or she (1) has a valid technician's license issued



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1under this Act, (2) is a terminal operator, or (3) is employed
2by a terminal operator, distributor, or manufacturer.
3    (d-5) Licensed terminal handler. No person, including, but
4not limited to, an employee or independent contractor working
5for a manufacturer, distributor, supplier, technician, or
6terminal operator licensed pursuant to this Act, shall have
7possession or control of a video gaming terminal, or access to
8the inner workings of a video gaming terminal, unless that
9person possesses a valid terminal handler's license issued
10under this Act.
11    (e) Licensed establishment. No video gaming terminal may be
12placed in any licensed establishment, licensed veterans
13establishment, licensed truck stop establishment, or licensed
14fraternal establishment unless the owner or agent of the owner
15of the licensed establishment, licensed veterans
16establishment, licensed truck stop establishment, or licensed
17fraternal establishment has entered into a written use
18agreement with the terminal operator for placement of the
19terminals. A copy of the use agreement shall be on file in the
20terminal operator's place of business and available for
21inspection by individuals authorized by the Board. A licensed
22establishment, licensed truck stop establishment, licensed
23veterans establishment, or licensed fraternal establishment
24may operate up to 5 video gaming terminals on its premises at
25any 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
3organization, an association, a business, or a limited
4liability 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
7all individuals or their spouses whose combined interest would
8qualify as a substantial interest under this subsection (g) and
9whose activities with respect to an organization, association,
10or business are so closely aligned or coordinated as to
11constitute the activities of a single entity.
12    (h) Location restriction. A licensed establishment,
13licensed truck stop establishment, licensed fraternal
14establishment, or licensed veterans establishment that is (i)
15located within 1,000 feet of a facility operated by an
16organization licensee licensed under the Illinois Horse Racing
17Act of 1975 or the home dock of a riverboat licensed under the
18Riverboat Gambling Act or (ii) located within 100 feet of a
19school or a place of worship under the Religious Corporation
20Act, is ineligible to operate a video gaming terminal. The
21location restrictions in this subsection (h) do not apply if
22(A) a facility operated by an organization licensee, a school,
23or a place of worship moves to or is established within the
24restricted area after a licensed establishment, licensed truck
25stop establishment, licensed fraternal establishment, or
26licensed veterans establishment becomes licensed under this



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1Act or (B) a school or place of worship moves to or is
2established within the restricted area after a licensed
3establishment, licensed truck stop establishment, licensed
4fraternal establishment, or licensed veterans establishment
5obtains its original liquor license. For the purpose of this
6subsection, "school" means an elementary or secondary public
7school, or an elementary or secondary private school registered
8with or recognized by the State Board of Education.
9    Notwithstanding the provisions of this subsection (h), the
10Board may waive the requirement that a licensed establishment,
11licensed truck stop establishment, licensed fraternal
12establishment, or licensed veterans establishment not be
13located within 1,000 feet from a facility operated by an
14organization licensee licensed under the Illinois Horse Racing
15Act of 1975 or the home dock of a riverboat licensed under the
16Riverboat Gambling Act. The Board shall not grant such waiver
17if there is any common ownership or control, shared business
18activity, or contractual arrangement of any type between the
19establishment and the organization licensee or owners licensee
20of a riverboat. The Board shall adopt rules to implement the
21provisions of this paragraph.
22    (h-5) Restrictions on licenses in malls. The Board shall
23not grant an application to become a licensed video gaming
24location if the Board determines that granting the application
25would more likely than not cause a terminal operator,
26individually or in combination with other terminal operators,



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1licensed video gaming location, or other person or entity, to
2operate the video gaming terminals in 2 or more licensed video
3gaming 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
4buildings, containing 4 or more separate locations.
5    "Video gaming operation" means the conducting of video
6gaming and all related activities.
7    "Location" means a space within a mall containing a
8separate business, a place for a separate business, or a place
9subject to a separate leasing arrangement by the mall owner.
10    "Licensed video gaming location" means a licensed
11establishment, licensed fraternal establishment, licensed
12veterans establishment, or licensed truck stop.
13    "Local concentration of licensed video gaming locations"
14means that the combined number of licensed video gaming
15locations within a mall exceed half of the separate locations
16within the mall.
17    (i) Undue economic concentration. In addition to
18considering all other requirements under this Act, in deciding
19whether to approve the operation of video gaming terminals by a
20terminal operator in a location, the Board shall consider the
21impact of any economic concentration of such operation of video
22gaming terminals. The Board shall not allow a terminal operator
23to operate video gaming terminals if the Board determines such
24operation will result in undue economic concentration. For
25purposes of this Section, "undue economic concentration" means
26that a terminal operator would have such actual or potential



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1influence 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
9concentration with respect to the operation of video gaming
10terminals in Illinois. The rules shall include, but not be
11limited to, (i) limitations on the number of video gaming
12terminals operated by any terminal operator within a defined
13geographic radius and (ii) guidelines on the discontinuation of
14operation of any such video gaming terminals the Board
15determines will cause undue economic concentration.
16    (j) The provisions of the Illinois Antitrust Act are fully
17and equally applicable to the activities of any licensee under
18this Act.
19(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
20eff. 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
23political subdivision.
24    (a) A municipality may pass an ordinance prohibiting video
25gaming within the corporate limits of the municipality. A



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1county board may, for the unincorporated area of the county,
2pass an ordinance prohibiting video gaming within the
3unincorporated area of the county.
4    (b) A municipality, or a county with respect to
5unincorporated portions of the county, may impose separate
6requirements on video gaming that provide sources of municipal
7or county revenue or impose limitations on video gaming more
8restrictive than those provided under this Act. These
9requirements 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
9must be located in an area restricted to persons over 21 years
10of age the entrance to which is within the view of at least one
11employee, who is over 21 years of age, of the establishment in
12which they are located or, if a licensed truck stop
13establishment, monitored through a closed circuit television
14monitor located on the premises and within the direct view of
15at least one employee who is over 21 years of age. The
16placement of video gaming terminals in licensed
17establishments, licensed truck stop establishments, licensed
18fraternal establishments, and licensed veterans establishments
19shall be subject to the rules promulgated by the Board pursuant
20to 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.
24The provisions of the Illinois Riverboat Gambling Act, and all



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1rules promulgated thereunder, shall apply to the Video Gaming
2Act, except where there is a conflict between the 2 Acts. All
3current supplier licensees under the Riverboat Gambling Act
4shall be entitled to licensure under the Video Gaming Act as
5manufacturers, distributors, or suppliers without additional
6Board investigation or approval, except by vote of the Board;
7however, they are required to pay application and annual fees
8under this Act. All provisions of the Uniform Penalty and
9Interest Act shall apply, as far as practicable, to the subject
10matter of this Act to the same extent as if such provisions
11were included herein.
12(Source: P.A. 96-37, eff. 7-13-09.)".