Full Text of HB3431 101st General Assembly
HB3431 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB3431 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED: |
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Amends the Video Gaming Act. Provides that on and after the effective date of the amendatory Act, the Illinois Gaming Board: (1) may only issue 5 licenses to a location authorized to conduct video gaming in a unit of local government, and (2) may not issue a terminal operator any other license issued under the Act.
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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 | | Section 25 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. | 17 | | A distributor may only sell video gaming
terminals for use in
| 18 | | Illinois to persons having a valid distributor's or terminal | 19 | | operator's
license.
| 20 | | (c) Terminal operator. A person may not own, maintain, or | 21 | | place a video gaming terminal unless he has a valid terminal | 22 | | operator's
license issued
under this Act. A terminal operator | 23 | | may only place video gaming terminals for
use in
Illinois in |
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| 1 | | licensed establishments, licensed truck stop establishments, | 2 | | licensed fraternal establishments,
and
licensed veterans | 3 | | establishments.
No terminal operator may give anything of | 4 | | value, including but not limited to
a loan or financing | 5 | | arrangement, to a licensed establishment, licensed truck stop | 6 | | establishment,
licensed fraternal establishment, or licensed | 7 | | veterans establishment as
any incentive or inducement to locate | 8 | | video terminals in that establishment.
Of the after-tax profits
| 9 | | from a video gaming terminal, 50% shall be paid to the terminal
| 10 | | operator and 50% shall be paid to the licensed establishment, | 11 | | licensed truck stop establishment,
licensed fraternal | 12 | | establishment, or
licensed veterans establishment, | 13 | | notwithstanding any agreement to the contrary.
A video terminal | 14 | | operator that violates one or more requirements of this | 15 | | subsection is guilty of a Class 4 felony and is subject to | 16 | | termination of his or her license by the Board.
| 17 | | (d) Licensed technician. A person may not service, | 18 | | maintain, or repair a
video gaming terminal
in this State | 19 | | unless he or she (1) has a valid technician's license issued
| 20 | | under this Act, (2) is a terminal operator, or (3) is employed | 21 | | by a terminal
operator, distributor, or manufacturer.
| 22 | | (d-5) Licensed terminal handler. No person, including, but | 23 | | not limited to, an employee or independent contractor working | 24 | | for a manufacturer, distributor, supplier, technician, or | 25 | | terminal operator licensed pursuant to this Act, shall have | 26 | | possession or control of a video gaming terminal, or access to |
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| 1 | | the inner workings of a video gaming terminal, unless that | 2 | | person possesses a valid terminal handler's license issued | 3 | | under this Act. | 4 | | (e) Licensed establishment. No video gaming terminal may be | 5 | | placed in any licensed establishment, licensed veterans | 6 | | establishment, licensed truck stop establishment,
or licensed | 7 | | fraternal establishment
unless the owner
or agent of the owner | 8 | | of the licensed establishment, licensed veterans | 9 | | establishment, licensed truck stop establishment, or licensed
| 10 | | fraternal establishment has entered into a
written use | 11 | | agreement with the terminal operator for placement of the
| 12 | | terminals. A copy of the use agreement shall be on file in the | 13 | | terminal
operator's place of business and available for | 14 | | inspection by individuals
authorized by the Board. A licensed | 15 | | establishment, licensed truck stop establishment, licensed | 16 | | veterans establishment,
or
licensed
fraternal
establishment | 17 | | may operate up to 5 video gaming terminals on its premises at | 18 | | any
time.
| 19 | | (f) (Blank).
| 20 | | (g) Financial interest restrictions.
As used in this Act, | 21 | | "substantial interest" in a partnership, a corporation, an
| 22 | | organization, an association, a business, or a limited | 23 | | liability company means:
| 24 | | (A) When, with respect to a sole proprietorship, an | 25 | | individual or
his or her spouse owns, operates, manages, or | 26 | | conducts, directly
or indirectly, the organization, |
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| 1 | | association, or business, or any part thereof;
or
| 2 | | (B) When, with respect to a partnership, the individual | 3 | | or his or
her spouse shares in any of the profits, or | 4 | | potential profits,
of the partnership activities; or
| 5 | | (C) When, with respect to a corporation, an individual | 6 | | or his or her
spouse is an officer or director, or the | 7 | | individual or his or her spouse is a holder, directly or | 8 | | beneficially, of 5% or more of any class
of stock of the | 9 | | corporation; or
| 10 | | (D) When, with respect to an organization not covered | 11 | | in (A), (B) or
(C) above, an individual or his or her | 12 | | spouse is an officer or manages the
business affairs, or | 13 | | the individual or his or her spouse is the
owner of or | 14 | | otherwise controls 10% or more of the assets of the | 15 | | organization;
or
| 16 | | (E) When an individual or his or her spouse furnishes
| 17 | | 5% or more of the capital, whether in cash, goods, or | 18 | | services, for the
operation of any business, association, | 19 | | or organization during any calendar
year; or | 20 | | (F) When, with respect to a limited liability company, | 21 | | an individual or his or her
spouse is a member, or the | 22 | | individual or his or her spouse is a holder, directly or | 23 | | beneficially, of 5% or more of the membership interest of | 24 | | the limited liability company.
| 25 | | For purposes of this subsection (g), "individual" includes | 26 | | all individuals or their spouses whose combined interest would |
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| 1 | | qualify as a substantial interest under this subsection (g) and | 2 | | whose activities with respect to an organization, association, | 3 | | or business are so closely aligned or coordinated as to | 4 | | constitute the activities of a single entity. | 5 | | (h) Location restriction. A licensed establishment, | 6 | | licensed truck stop establishment, licensed
fraternal
| 7 | | establishment, or licensed veterans establishment that is (i) | 8 | | located within 1,000
feet of a facility operated by an | 9 | | organization licensee licensed under the Illinois Horse Racing | 10 | | Act of 1975 or the home dock of a riverboat licensed under the | 11 | | Riverboat
Gambling Act or (ii) located within 100 feet of a | 12 | | school or a place of worship under the Religious Corporation | 13 | | Act, is ineligible to operate a video gaming terminal. The | 14 | | location restrictions in this subsection (h) do not apply if | 15 | | (A) a facility operated by an organization licensee, a school, | 16 | | or a place of worship moves to or is established within the | 17 | | restricted area after a licensed establishment, licensed truck | 18 | | stop establishment, licensed fraternal establishment, or | 19 | | licensed veterans establishment becomes licensed under this | 20 | | Act or (B) a school or place of worship moves to or is | 21 | | established within the restricted area after a licensed | 22 | | establishment, licensed truck stop establishment, licensed | 23 | | fraternal establishment, or licensed veterans establishment | 24 | | obtains its original liquor license. For the purpose of this | 25 | | subsection, "school" means an elementary or secondary public | 26 | | school, or an elementary or secondary private school registered |
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| 1 | | with or recognized by the State Board of Education. | 2 | | Notwithstanding the provisions of this subsection (h), the | 3 | | Board may waive the requirement that a licensed establishment, | 4 | | licensed truck stop establishment, licensed fraternal | 5 | | establishment, or licensed veterans establishment not be | 6 | | located within 1,000 feet from a facility operated by an | 7 | | organization licensee licensed under the Illinois Horse Racing | 8 | | Act of 1975 or the home dock of a riverboat licensed under the | 9 | | Riverboat Gambling Act. The Board shall not grant such waiver | 10 | | if there is any common ownership or control, shared business | 11 | | activity, or contractual arrangement of any type between the | 12 | | establishment and the organization licensee or owners licensee | 13 | | of a riverboat. The Board shall adopt rules to implement the | 14 | | provisions of this paragraph. | 15 | | (i) Undue economic concentration. In addition to | 16 | | considering all other requirements under this Act, in deciding | 17 | | whether to approve the operation of video gaming terminals by a | 18 | | terminal operator in a location, the Board shall consider the | 19 | | impact of any economic concentration of such operation of video | 20 | | gaming terminals. The Board shall not allow a terminal operator | 21 | | to operate video gaming terminals if the Board determines such | 22 | | operation will result in undue economic concentration. For | 23 | | purposes of this Section, "undue economic concentration" means | 24 | | that a terminal operator would have such actual or potential | 25 | | influence over video gaming terminals in Illinois as to: | 26 | | (1) substantially impede or suppress competition among |
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| 1 | | terminal operators; | 2 | | (2) adversely impact the economic stability of the | 3 | | video gaming industry in Illinois; or | 4 | | (3) negatively impact the purposes of the Video Gaming | 5 | | Act. | 6 | | The Board shall adopt rules concerning undue economic | 7 | | concentration with respect to the operation of video gaming | 8 | | terminals in Illinois. The rules shall include, but not be | 9 | | limited to, (i) limitations on the number of video gaming | 10 | | terminals operated by any terminal operator within a defined | 11 | | geographic radius and (ii) guidelines on the discontinuation of | 12 | | operation of any such video gaming terminals the Board | 13 | | determines will cause undue economic concentration.
| 14 | | (j) The provisions of the Illinois Antitrust Act are fully | 15 | | and equally applicable to the activities of any licensee under | 16 | | this Act.
| 17 | | (k) On and after the effective date of this amendatory Act | 18 | | of the 101st General Assembly, the Board may only issue up to 5 | 19 | | licenses for a licensed establishment, licensed veterans | 20 | | establishment, licensed truck stop establishment, or licensed | 21 | | fraternal establishment, or any combination thereof, in a unit | 22 | | of local government. | 23 | | (l) On and after the effective date of this amendatory Act | 24 | | of the 101st General Assembly, the Board may not issue a | 25 | | terminal operator any other license issued under this Act. | 26 | | (Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77, |
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| 1 | | eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
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