Full Text of SB3489 101st General Assembly
SB3489 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB3489 Introduced 2/14/2020, by Sen. Dave Syverson SYNOPSIS AS INTRODUCED: |
| 230 ILCS 40/45 | | 230 ILCS 40/60 | | 230 ILCS 40/65 | |
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Amends the Video Gaming Act. Provides that imposing fees on an establishment authorized to conduct video gaming and on terminal operators is an exclusive power and function of the State. Prohibits a unit of local government with a population under 2,000,000 from applying any additional tax on net terminal income. Provides that a unit of local government (rather than a non-home rule unit of government) may not impose a fee for the operation of a video gaming terminal in excess of $100 per year (rather than $25). Provides that any unit of local government imposing a fee for the operation of a video gaming terminal in excess of $100 on or before January 1, 2020 may retain its fee structure but may not increase fees beyond the limit provided in the provisions. Provides that a home rule unity may not regulate the provisions in a manner inconsistent with the provisions. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOME RULE NOTE ACT MAY APPLY |
| | A BILL FOR |
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| | | SB3489 | | LRB101 19872 SMS 69392 b |
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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 Video Gaming
Act is amended by changing | 5 | | Sections 45, 60, and 65 as follows:
| 6 | | (230 ILCS 40/45)
| 7 | | Sec. 45. Issuance of license.
| 8 | | (a) The burden is upon each applicant to
demonstrate his | 9 | | suitability for licensure. Each video gaming terminal
| 10 | | manufacturer, distributor, supplier, operator, handler, | 11 | | licensed establishment, licensed truck stop establishment, | 12 | | licensed large truck stop establishment, licensed
fraternal
| 13 | | establishment, and licensed veterans establishment shall be
| 14 | | licensed by the Board.
The Board may issue or deny a license | 15 | | under this Act to any person pursuant to the same criteria set | 16 | | forth in Section 9 of the Illinois Gambling Act.
| 17 | | (a-5) The Board shall not grant a license to a person who | 18 | | has facilitated, enabled, or participated in the use of | 19 | | coin-operated devices for gambling purposes or who is under the | 20 | | significant influence or control of such a person. For the | 21 | | purposes of this Act, "facilitated, enabled, or participated in | 22 | | the use of coin-operated amusement devices for gambling | 23 | | purposes" means that the person has been convicted of any |
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| 1 | | violation of Article 28 of the Criminal Code of 1961 or the | 2 | | Criminal Code of 2012. If there is pending legal action against | 3 | | a person for any such violation, then the Board shall delay the | 4 | | licensure of that person until the legal action is resolved. | 5 | | (b) Each person seeking and possessing a license as a video | 6 | | gaming terminal manufacturer, distributor, supplier, operator, | 7 | | handler, licensed establishment, licensed truck stop | 8 | | establishment, licensed large truck stop establishment, | 9 | | licensed fraternal establishment, or licensed veterans | 10 | | establishment shall submit to a background investigation | 11 | | conducted by the Board with the assistance of the State Police | 12 | | or other law enforcement. To the extent that the corporate | 13 | | structure of the applicant allows, the background | 14 | | investigation shall include any or all of the following as the | 15 | | Board deems appropriate or as provided by rule for each | 16 | | category of licensure: (i) each beneficiary of a trust, (ii) | 17 | | each partner of a partnership, (iii) each member of a limited | 18 | | liability company, (iv) each director and officer of a publicly | 19 | | or non-publicly held corporation, (v) each stockholder of a | 20 | | non-publicly held corporation, (vi) each stockholder of 5% or | 21 | | more of a publicly held corporation, or (vii) each stockholder | 22 | | of 5% or more in a parent or subsidiary corporation. | 23 | | (c) Each person seeking and possessing a license as a video | 24 | | gaming terminal manufacturer, distributor, supplier, operator, | 25 | | handler, licensed establishment, licensed truck stop | 26 | | establishment, licensed large truck stop establishment, |
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| 1 | | licensed fraternal establishment, or licensed veterans | 2 | | establishment shall disclose the identity of every person, | 3 | | association, trust, corporation, or limited liability company | 4 | | having a greater than 1% direct or indirect pecuniary interest | 5 | | in the video gaming terminal operation for which the license is | 6 | | sought. If the disclosed entity is a trust, the application | 7 | | shall disclose the names and addresses of the beneficiaries; if | 8 | | a corporation, the names and addresses of all stockholders and | 9 | | directors; if a limited liability company, the names and | 10 | | addresses of all members; or if a partnership, the names and | 11 | | addresses of all partners, both general and limited. | 12 | | (d) No person may be licensed as a video gaming terminal | 13 | | manufacturer, distributor, supplier, operator, handler, | 14 | | licensed establishment, licensed truck stop establishment, | 15 | | licensed large truck stop establishment, licensed fraternal | 16 | | establishment, or licensed veterans establishment if that | 17 | | person has been found by the Board to: | 18 | | (1) have a background, including a criminal record, | 19 | | reputation, habits, social or business associations, or | 20 | | prior activities that pose a threat to the public interests | 21 | | of the State or to the security and integrity of video | 22 | | gaming; | 23 | | (2) create or enhance the dangers of unsuitable, | 24 | | unfair, or illegal practices, methods, and activities in | 25 | | the conduct of video gaming; or | 26 | | (3) present questionable business practices and |
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| 1 | | financial arrangements incidental to the conduct of video | 2 | | gaming activities. | 3 | | (e) Any applicant for any license under this Act has the | 4 | | burden of proving his or her qualifications to the satisfaction | 5 | | of the Board. The Board may adopt rules to establish additional | 6 | | qualifications and requirements to preserve the integrity and | 7 | | security of video gaming in this State. | 8 | | (f) A non-refundable application fee shall be paid at the | 9 | | time an
application for a license is filed with the Board in | 10 | | the following amounts:
| 11 | | (1) Manufacturer ..........................$5,000
| 12 | | (2) Distributor ...........................$5,000
| 13 | | (3) Terminal operator .....................$5,000
| 14 | | (4) Supplier ..............................$2,500
| 15 | | (5) Technician ..............................$100
| 16 | | (6) Terminal Handler ........................$100
| 17 | | (7) Licensed establishment, licensed truck stop
| 18 | | establishment, licensed large truck stop establishment,
| 19 | | licensed fraternal establishment, or licensed
| 20 | | veterans establishment ...............................$100 | 21 | | (g) The Board shall establish an
annual fee for each | 22 | | license not to exceed the following: | 23 | | (1) Manufacturer .........................$10,000
| 24 | | (2) Distributor ..........................$10,000
| 25 | | (3) Terminal operator .....................$5,000
| 26 | | (4) Supplier ..............................$2,000
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| 1 | | (5) Technician ..............................$100
| 2 | | (6) Licensed establishment, licensed truck stop
| 3 | | establishment, licensed large truck stop establishment,
| 4 | | licensed fraternal establishment, or licensed
| 5 | | veterans establishment ..........................$100
| 6 | | (7) Video gaming terminal ...................$100
| 7 | | (8) Terminal Handler ............................$100
| 8 | | (h) A terminal operator and a licensed establishment, | 9 | | licensed truck stop establishment, licensed large truck stop | 10 | | establishment, licensed fraternal establishment,
or licensed | 11 | | veterans establishment shall equally split the fees specified | 12 | | in item (7) of subsection (g). | 13 | | (i) Imposing fees for licensed establishments, licensed | 14 | | truck stop establishments, licensed large truck stop | 15 | | establishments, licensed fraternal establishments, licensed | 16 | | veterans establishments, and terminal operators is an | 17 | | exclusive power and function of the State. A home rule unit may | 18 | | not impose fees for licensed establishments, licensed truck | 19 | | stop establishments, licensed large truck stop establishments, | 20 | | licensed fraternal establishments, licensed veterans | 21 | | establishments, and terminal operators. This subsection (i) is | 22 | | a denial and limitation of home rule powers and functions under | 23 | | subsection (h) of Section 6 of Article VII of the Illinois | 24 | | Constitution. | 25 | | (Source: P.A. 100-1152, eff. 12-14-18; 101-31, eff. 6-28-19.)
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| 1 | | (230 ILCS 40/60)
| 2 | | Sec. 60. Imposition and distribution of tax.
| 3 | | (a) A tax of 30% is imposed on net terminal income
and | 4 | | shall be collected by the Board.
| 5 | | Of the tax collected under this subsection (a), five-sixths | 6 | | shall be
deposited into the Capital Projects Fund and one-sixth | 7 | | shall be deposited into the Local Government Video Gaming | 8 | | Distributive Fund.
| 9 | | (b) Beginning on July 1, 2019, an additional tax of 3% is | 10 | | imposed on net terminal income
and shall be collected by the | 11 | | Board. | 12 | | Beginning on July 1, 2020, an additional tax of 1% is | 13 | | imposed on net terminal income
and shall be collected by the | 14 | | Board. | 15 | | The tax collected under this subsection (b) shall be | 16 | | deposited into the Capital Projects Fund. | 17 | | (c) Revenues generated from the play of video gaming | 18 | | terminals shall be
deposited by the terminal operator, who is | 19 | | responsible for tax payments, in
a specially created, separate | 20 | | bank account maintained by the video gaming
terminal operator
| 21 | | to allow for electronic fund transfers of moneys for tax | 22 | | payment.
| 23 | | (d) Each licensed establishment, licensed truck stop | 24 | | establishment, licensed large truck stop establishment, | 25 | | licensed fraternal establishment,
and licensed veterans | 26 | | establishment shall maintain an adequate video gaming
fund, |
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| 1 | | with the amount to be determined by the Board.
| 2 | | (e) The State's percentage of net terminal income shall be | 3 | | reported and remitted to the Board within 15 days after the | 4 | | 15th day of each month and within 15 days after the end of each | 5 | | month by the video terminal operator. A video terminal operator | 6 | | who falsely reports or fails to report the amount due required | 7 | | by this Section is guilty of a Class 4 felony and is subject to | 8 | | termination of his or her license by the Board. Each video | 9 | | terminal operator shall keep a record of net terminal income in | 10 | | such form as the Board may require. All payments not remitted | 11 | | when due shall be paid together with a penalty assessment on | 12 | | the unpaid balance at a rate of 1.5% per month. | 13 | | (f) A unit of local government with a population under | 14 | | 2,000,000 people is prohibited from applying any additional tax | 15 | | on net terminal income. | 16 | | (Source: P.A. 101-31, eff. 6-28-19.) | 17 | | (230 ILCS 40/65) | 18 | | Sec. 65. Fees. Except as provided in this Section, a | 19 | | non-home rule unit of local government may not impose any
fee
| 20 | | for the operation of a video gaming terminal in excess of $100 | 21 | | $25 per year. The City of Rockford may not impose any fee for | 22 | | the operation of a video gaming terminal in excess of $250 per | 23 | | year.
| 24 | | Any unit of local government imposing a fee for the | 25 | | operation of a video gaming terminal in excess of $100 on or |
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| 1 | | before January 1, 2020 may retain its fee structure but may not | 2 | | increase fees beyond the limit provided in this Section. | 3 | | A home rule unit may not regulate the provisions of this | 4 | | Section in a manner inconsistent with this Section. This | 5 | | Section is a limitation under subsection (i) of Section 6 of | 6 | | Article VII of the Illinois Constitution on the concurrent | 7 | | exercise by home rule units of powers and functions exercised | 8 | | by the State. | 9 | | (Source: P.A. 101-337, eff. 1-1-20 .)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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