Full Text of SB0535 102nd General Assembly
SB0535 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB0535 Introduced 2/23/2021, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: |
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230 ILCS 10/8 | from Ch. 120, par. 2408 |
230 ILCS 10/8.1 new | | 230 ILCS 40/50 | | 230 ILCS 45/25-50 | |
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Amends the Illinois Gambling Act. Provides that an applicant for a suppliers license under the Act that already holds a specified license issued by the Illinois Gaming Board is entitled to licensure as a supplier under the Act without additional Board investigation or approval, except by a vote of the Board. Provides that an initial suppliers license shall be issued for 4 years and may be renewed for additional 4-year periods. Provides that if a holder of a specified license issued by the Board is granted an additional license issued by the Board, the initial period of the new license shall expire at the earliest expiration date of any other specified licenses held by the licensee. Amends the Video Gaming Act. Changes the period for a terminal handler, technician, licensed establishment, licensed truck stop establishment, licensed large truck establishment, licensed fraternal establishment, and licensed fraternal establishment license from one year to 2 years. Changes the period for a manufacturer, distributor, supplier, and terminal operator license from one year to 4 years. Amends the Sports Wagering Act. Changes the renewal period for a supplier license from one year to 4 years. Provides that beginning 4 years after issuance of the initial supplier license, a holder of a supplier license shall pay a $150,000 annual license fee. Effective immediately.
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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 Illinois Gambling Act is amended by | 5 | | changing Section 8 and by adding Section 8.1 as follows:
| 6 | | (230 ILCS 10/8) (from Ch. 120, par. 2408)
| 7 | | Sec. 8. Suppliers licenses.
| 8 | | (a) The Board may issue a suppliers license to such | 9 | | persons, firms or
corporations which apply therefor upon the | 10 | | payment of a non-refundable
application fee set by the Board, | 11 | | upon a determination by the Board that
the applicant is | 12 | | eligible for a suppliers license and upon payment of a
$5,000 | 13 | | annual license
fee. At the time of application for a supplier | 14 | | license under this Act, a person that holds a license as a | 15 | | manufacturer, distributor, or supplier under the Video Gaming | 16 | | Act or a supplier license under the Sports Wagering Act shall | 17 | | be entitled to licensure under this Act as a supplier without | 18 | | additional Board investigation or approval, except by vote of | 19 | | the Board; however, the applicant shall pay all fees required | 20 | | for a suppliers license under this Act.
| 21 | | (a-5) Except as provided by Section 8.1, the initial | 22 | | suppliers license shall be issued for 4 years. Thereafter, the | 23 | | license may be renewed for additional 4-year periods unless |
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| 1 | | sooner cancelled or terminated. | 2 | | (b) The holder of a suppliers license is authorized to | 3 | | sell or lease,
and to contract to sell or lease, gambling | 4 | | equipment and supplies to any
licensee involved in the | 5 | | ownership or management of gambling operations.
| 6 | | (c) Gambling supplies and equipment may not be distributed
| 7 | | unless supplies and equipment conform to standards adopted by
| 8 | | rules of the Board.
| 9 | | (d) A person, firm or corporation is ineligible to receive | 10 | | a suppliers
license if:
| 11 | | (1) the person has been convicted of a felony under | 12 | | the laws of this
State, any other state, or the United | 13 | | States;
| 14 | | (2) the person has been convicted of any violation of | 15 | | Article 28 of the
Criminal Code of 1961 or the Criminal | 16 | | Code of 2012, or substantially similar laws of any other | 17 | | jurisdiction;
| 18 | | (3) the person has submitted an application for a | 19 | | license under this
Act which contains false information;
| 20 | | (4) the person is a member of the Board;
| 21 | | (5) the entity is one in which a person defined in (1),
| 22 | | (2), (3) or (4), is an officer, director or managerial | 23 | | employee;
| 24 | | (6) the firm or corporation employs a person who | 25 | | participates in the
management or operation of gambling | 26 | | authorized under this Act;
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| 1 | | (7) the license of the person, firm or corporation | 2 | | issued under
this Act, or a license to own or operate | 3 | | gambling facilities
in any other jurisdiction, has been | 4 | | revoked.
| 5 | | (e) Any person that supplies any equipment, devices, or | 6 | | supplies to a
licensed gambling operation must first obtain a | 7 | | suppliers
license. A supplier shall furnish to the Board a | 8 | | list of all equipment,
devices and supplies offered for sale | 9 | | or lease in connection with gambling
games authorized under | 10 | | this Act. A supplier shall keep books and records
for the | 11 | | furnishing of equipment, devices and supplies to gambling
| 12 | | operations separate and distinct from any other business that | 13 | | the supplier
might operate. A supplier shall file a quarterly | 14 | | return with the Board
listing all sales and leases. A supplier | 15 | | shall permanently affix its name or a distinctive logo or | 16 | | other mark or design element identifying the manufacturer or | 17 | | supplier
to all its equipment, devices, and supplies, except | 18 | | gaming chips without a value impressed, engraved, or imprinted | 19 | | on it, for gambling operations.
The Board may waive this | 20 | | requirement for any specific product or products if it | 21 | | determines that the requirement is not necessary to protect | 22 | | the integrity of the game. Items purchased from a licensed | 23 | | supplier may continue to be used even though the supplier | 24 | | subsequently changes its name, distinctive logo, or other mark | 25 | | or design element; undergoes a change in ownership; or ceases | 26 | | to be licensed as a supplier for any reason. Any supplier's |
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| 1 | | equipment, devices or supplies which are used by any person
in | 2 | | an unauthorized gambling operation shall be forfeited to the | 3 | | State. A holder of an owners license or an organization gaming | 4 | | license may own its own equipment, devices and supplies. Each
| 5 | | holder of an owners license or an organization gaming license | 6 | | under the Act shall file an annual report
listing its | 7 | | inventories of gambling equipment, devices and supplies.
| 8 | | (f) Any person who knowingly makes a false statement on an | 9 | | application
is guilty of a Class A misdemeanor.
| 10 | | (g) Any gambling equipment, devices and supplies provided | 11 | | by any
licensed supplier may either be repaired on the | 12 | | riverboat, in the casino, or at the organization gaming | 13 | | facility or removed from
the riverboat, casino, or | 14 | | organization gaming facility to a facility owned by the holder | 15 | | of an owners
license, organization gaming license, or | 16 | | suppliers license for repair.
| 17 | | (Source: P.A. 101-31, eff. 6-28-19.)
| 18 | | (230 ILCS 10/8.1 new) | 19 | | Sec. 8.1. Harmonization of supplier category licenses. | 20 | | (a) As used in this Section, "supplier category license" | 21 | | means a suppliers license issued under this Act, a supplier | 22 | | license issued under the Sports Wagering Act, or a | 23 | | manufacturer, distributor, or supplier license issued under | 24 | | the Video Gaming Act. | 25 | | (b) If a holder of any supplier category license is |
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| 1 | | granted an additional supplier category license, the initial | 2 | | period of the new supplier category license shall expire at | 3 | | the earliest expiration date of any other supplier category | 4 | | license held by the licensee. If a licensee holds multiple | 5 | | supplier category licenses on the effective date of this | 6 | | amendatory Act of the 102nd General Assembly, all supplier | 7 | | category licenses shall expire at the earliest expiration date | 8 | | of any of the supplier category licenses held by the licensee. | 9 | | Section 10. The Video Gaming
Act is amended by changing | 10 | | Section 50 as follows: | 11 | | (230 ILCS 40/50)
| 12 | | Sec. 50. Distribution of license fees.
| 13 | | (a) All fees collected under Section 45 shall be deposited | 14 | | into the State Gaming
Fund.
| 15 | | (b) Fees collected under Section 45 shall be used as | 16 | | follows:
| 17 | | (1) Twenty-five percent shall be paid, subject to | 18 | | appropriation by the General Assembly, to the Department | 19 | | of Human Services for administration of programs for the | 20 | | treatment of
compulsive gambling.
| 21 | | (2) Seventy-five percent shall be used for the | 22 | | administration of this
Act.
| 23 | | (c) All initial terminal handler, technician, licensed | 24 | | establishment, licensed truck stop establishment, licensed |
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| 1 | | large truck establishment, licensed fraternal establishment, | 2 | | and licensed fraternal establishment licenses issued by the | 3 | | Board under this Act shall be issued for 2 years and are | 4 | | renewable for additional 2-year periods annually
unless sooner | 5 | | cancelled or terminated. Except as provided by Section 8.1 of | 6 | | the Illinois Gambling Act, all initial manufacturer, | 7 | | distributor, supplier, and terminal operator licenses issued | 8 | | by the Board under this Act shall be issued for 4 years and are | 9 | | renewable for additional 4-year periods unless sooner | 10 | | cancelled or terminated. No license issued under this Act is
| 11 | | transferable or assignable.
| 12 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) | 13 | | Section 15. The Sports Wagering Act is amended by changing | 14 | | Section 25-50 as follows: | 15 | | (230 ILCS 45/25-50)
| 16 | | Sec. 25-50. Supplier license. | 17 | | (a) The Board may issue a supplier license to a person to | 18 | | sell or lease sports wagering equipment, systems, or other | 19 | | gaming items to conduct sports wagering and offer services | 20 | | related to the equipment or other gaming items and data to a | 21 | | master sports wagering licensee while the license is active. | 22 | | (b) The Board may adopt rules establishing additional | 23 | | requirements for a supplier and any system or other equipment | 24 | | utilized for sports wagering. The Board may accept licensing |
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| 1 | | by another jurisdiction that it specifically determines to | 2 | | have similar licensing requirements as evidence the applicant | 3 | | meets supplier licensing requirements. | 4 | | (c) An applicant for a supplier license shall demonstrate | 5 | | that the equipment, system, or services that the applicant | 6 | | plans to offer to the master sports wagering licensee conforms | 7 | | to standards established by the Board and applicable State | 8 | | law. The Board may accept approval by another jurisdiction | 9 | | that it specifically determines have similar equipment | 10 | | standards as evidence the applicant meets the standards | 11 | | established by the Board and applicable State law. | 12 | | (d) Applicants shall pay to the Board a nonrefundable | 13 | | license and application fee in the amount of $150,000. Except | 14 | | as provided by Section 8.1 of the Illinois Gambling Act, the | 15 | | initial supplier license shall be issued for 4 years unless | 16 | | sooner cancelled or terminated. After the initial period | 17 | | 4-year term , the Board shall renew supplier licenses for | 18 | | additional 4-year periods unless sooner cancelled or | 19 | | terminated annually thereafter . Renewal of a supplier license | 20 | | shall be granted to a renewal applicant who has continued to | 21 | | comply with all applicable statutory and regulatory | 22 | | requirements , upon submission of the Board-issued renewal form | 23 | | and payment of a $150,000 renewal fee . Beginning 4 years after | 24 | | issuance of the initial supplier license, a holder of a | 25 | | supplier license shall pay a $150,000 annual license fee. | 26 | | (e) A supplier shall submit to the Board a list of all |
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| 1 | | sports wagering equipment and services sold, delivered, or | 2 | | offered to a master sports wagering licensee in this State, as | 3 | | required by the Board, all of which must be tested and approved | 4 | | by an independent testing laboratory approved by the Board. A | 5 | | master sports wagering licensee may continue to use supplies | 6 | | acquired from a licensed supplier, even if a supplier's | 7 | | license expires or is otherwise canceled, unless the Board | 8 | | finds a defect in the supplies.
| 9 | | (Source: P.A. 101-31, eff. 6-28-19.)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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