Illinois General Assembly - Full Text of HB2311
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Full Text of HB2311  98th General Assembly


Sen. William R. Haine

Filed: 4/30/2013





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2    AMENDMENT NO. ______. Amend House Bill 2311 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Video Gaming Act is amended by changing
5Sections 5 and 45 as follows:
6    (230 ILCS 40/5)
7    Sec. 5. Definitions. As used in this Act:
8    "Board" means the Illinois Gaming Board.
9    "Credit" means one, 5, 10, or 25 cents either won or
10purchased by a player.
11    "Distributor" means an individual, partnership,
12corporation, or limited liability company licensed under this
13Act to buy, sell, lease, or distribute video gaming terminals
14or major components or parts of video gaming terminals to or
15from terminal operators.
16    "Terminal operator" means an individual, partnership,



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1corporation, or limited liability company that is licensed
2under this Act and that owns, services, and maintains video
3gaming terminals for placement in licensed establishments,
4licensed truck stop establishments, licensed fraternal
5establishments, or licensed veterans establishments.
6    "Licensed technician" means an individual who is licensed
7under this Act to repair, service, and maintain video gaming
9    "Licensed terminal handler" means a person, including but
10not limited to an employee or independent contractor working
11for a manufacturer, distributor, supplier, technician, or
12terminal operator, who is licensed under this Act to possess or
13control a video gaming terminal or to have access to the inner
14workings of a video gaming terminal. A licensed terminal
15handler does not include an individual, partnership,
16corporation, or limited liability company defined as a
17manufacturer, distributor, supplier, technician, or terminal
18operator under this Act.
19    "Manufacturer" means an individual, partnership,
20corporation, or limited liability company that is licensed
21under this Act and that manufactures or assembles video gaming
23    "Supplier" means an individual, partnership, corporation,
24or limited liability company that is licensed under this Act to
25supply major components or parts to video gaming terminals to
26licensed terminal operators.



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1    "Net terminal income" means money put into a video gaming
2terminal minus credits paid out to players.
3    "Video gaming terminal" means any electronic video game
4machine that, upon insertion of cash, is available to play or
5simulate the play of a video game, including but not limited to
6video poker, line up, and blackjack, as authorized by the Board
7utilizing a video display and microprocessors in which the
8player may receive free games or credits that can be redeemed
9for cash. The term does not include a machine that directly
10dispenses coins, cash, or tokens or is for amusement purposes
12    "Licensed establishment" means any licensed retail
13establishment where alcoholic liquor is drawn, poured, mixed,
14or otherwise served for consumption on the premises, whether
15the establishment operates on a nonprofit or for-profit basis.
16"Licensed establishment" and includes any such establishment
17that has a contractual relationship with an inter-track
18wagering location licensee licensed under the Illinois Horse
19Racing Act of 1975, provided any contractual relationship shall
20not include any transfer or offer of revenue from the operation
21of video gaming under this Act to any licensee licensed under
22the Illinois Horse Racing Act of 1975. Provided, however, that
23the licensed establishment that has such a contractual
24relationship with an inter-track wagering location licensee
25may not, itself, be (i) an inter-track wagering location
26licensee, (ii) the corporate parent or subsidiary of any



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1licensee licensed under the Illinois Horse Racing Act of 1975,
2or (iii) the corporate subsidiary of a corporation that is also
3the corporate parent or subsidiary of any licensee licensed
4under the Illinois Horse Racing Act of 1975. "Licensed
5establishment" does not include a facility operated by an
6organization licensee, an inter-track wagering licensee, or an
7inter-track wagering location licensee licensed under the
8Illinois Horse Racing Act of 1975 or a riverboat licensed under
9the Riverboat Gambling Act, except as provided in this
10paragraph. The changes made to this definition by this
11amendatory Act of the 98th General Assembly are declarative of
12existing law and shall not be construed as a new enactment.
13    "Licensed fraternal establishment" means the location
14where a qualified fraternal organization that derives its
15charter from a national fraternal organization regularly
17    "Licensed veterans establishment" means the location where
18a qualified veterans organization that derives its charter from
19a national veterans organization regularly meets.
20    "Licensed truck stop establishment" means a facility (i)
21that is at least a 3-acre facility with a convenience store,
22(ii) with separate diesel islands for fueling commercial motor
23vehicles, (iii) that sells at retail more than 10,000 gallons
24of diesel or biodiesel fuel per month, and (iv) with parking
25spaces for commercial motor vehicles. "Commercial motor
26vehicles" has the same meaning as defined in Section 18b-101 of



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1the Illinois Vehicle Code. The requirement of item (iii) of
2this paragraph may be met by showing that estimated future
3sales or past sales average at least 10,000 gallons per month.
4(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09;
596-1410, eff. 7-30-10; 96-1479, eff. 8-23-10; 97-333, eff.
7    (230 ILCS 40/45)
8    Sec. 45. Issuance of license.
9    (a) The burden is upon each applicant to demonstrate his
10suitability for licensure. Each video gaming terminal
11manufacturer, distributor, supplier, operator, handler,
12licensed establishment, licensed truck stop establishment,
13licensed fraternal establishment, and licensed veterans
14establishment shall be licensed by the Board. The Board may
15issue or deny a license under this Act to any person pursuant
16to the same criteria set forth in Section 9 of the Riverboat
17Gambling Act.
18    (a-5) The Board shall not grant a license to a person who
19has facilitated, enabled, or participated in the use of
20coin-operated devices for gambling purposes or who is under the
21significant influence or control of such a person. For the
22purposes of this Act, "facilitated, enabled, or participated in
23the use of coin-operated amusement devices for gambling
24purposes" means that the person has been convicted of any
25violation of Article 28 of the Criminal Code of 1961 or the



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1Criminal Code of 2012. If there is pending legal action against
2a person for any such violation, then the Board shall delay the
3licensure of that person until the legal action is resolved.
4    (b) Each person seeking and possessing a license as a video
5gaming terminal manufacturer, distributor, supplier, operator,
6handler, licensed establishment, licensed truck stop
7establishment, licensed fraternal establishment, or licensed
8veterans establishment shall submit to a background
9investigation conducted by the Board with the assistance of the
10State Police or other law enforcement. To the extent that the
11corporate structure of the applicant allows, the The background
12investigation shall include any or all of the following as the
13Board deems appropriate or as provided by rule for each
14category of licensure: (i) each beneficiary of a trust, (ii)
15each partner of a partnership, (iii) each member of a limited
16liability company, (iv) and each director and officer of a
17publicly or non-publicly held corporation, (v) each
18stockholder of a non-publicly held corporation, (vi) each
19stockholder of 5% or more of a publicly held corporation, or
20(vii) each stockholder and all stockholders of 5% or more in a
21parent or subsidiary corporation of a video gaming terminal
22manufacturer, distributor, supplier, operator, or licensed
23establishment, licensed truck stop establishment, licensed
24fraternal establishment, or licensed veterans establishment.
25    (c) Each person seeking and possessing a license as a video
26gaming terminal manufacturer, distributor, supplier, operator,



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1handler, licensed establishment, licensed truck stop
2establishment, licensed fraternal establishment, or licensed
3veterans establishment shall disclose the identity of every
4person, association, trust, corporation, or limited liability
5company having a greater than 1% direct or indirect pecuniary
6interest in the video gaming terminal operation for which the
7license is sought. If the disclosed entity is a trust, the
8application shall disclose the names and addresses of the
9beneficiaries; if a corporation, the names and addresses of all
10stockholders and directors; if a limited liability company, the
11names and addresses of all members; or if a partnership, the
12names and addresses of all partners, both general and limited.
13    (d) No person may be licensed as a video gaming terminal
14manufacturer, distributor, supplier, operator, handler,
15licensed establishment, licensed truck stop establishment,
16licensed fraternal establishment, or licensed veterans
17establishment if that 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
4burden of proving his or her qualifications to the satisfaction
5of the Board. The Board may adopt rules to establish additional
6qualifications and requirements to preserve the integrity and
7security of video gaming in this State.
8    (f) A non-refundable application fee shall be paid at the
9time an application for a license is filed with the Board in
10the 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..............................$50
17    (g) The Board shall establish an annual fee for each
18license not to exceed the following:
19        (1) Manufacturer.........................$10,000
20        (2) Distributor..........................$10,000
21        (3) Terminal operator.....................$5,000
22        (4) Supplier..............................$2,000
23        (5) Technician..............................$100
24        (6) Licensed establishment, licensed truck stop
25    establishment, licensed fraternal establishment,
26    or licensed veterans establishment..............$100



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1        (7) Video gaming terminal...................$100
2        (8) Terminal Handler..............................$50
3(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
4eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1410, eff. 7-30-10;
597-1150, eff. 1-25-13.)
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".