MR. PRESIDENT:
I move
that Engrossed House Bill 1001 be amended to read as follows:
Page 94, between lines 23 and 24, begin a new paragraph and insert:
"SECTION 38. IC 4-12-1-15.6 IS ADDED TO TH E INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 15.6. (a) The Medicaid augmentation account is
created within the state general fund for the purpose of providing
money for Medicaid when the appropriation for Medicaid in the
biennial budget is insufficient to pay Medicaid claims.
(b)The account shall be administered by the budget agency.
Expenses of administering the account shall be paid from money in the
account.
(c) The account consists of the following:
(1) Pari-Mutel pull tab wagering taxes paid under IC
4-31-7.6-7(c)(2)(A).
(2) Riverboat admissions taxes paid under IC 4-33-12-
6(1).
(d) The budget agency shall annually determine the amount of
money in addition to the appropriation for Medicad needed to pay
Medicad claims
.
(e) The budget agency shall transfer the amount of money, up
to the entire balance, needed under subsection (d), from the Medicaid
augmentation account to the account from which Medicaid current
obligations are paid.
(f) Money in the Medicaid augmentation account is annually
appropriated for the purposes of this section.
(g) The treasurer of state shall invest the money in the account
not currently needed to meet the obligations of the account in the same
manner as other public money may be invested.".
(h) Money in the account at the end of a state fiscal year
does not revert.".
Page 96, between lines 7 and 8 begin a new paragraph and
insert:
"SECTION 41. IC 4-31-1-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. The purpose
purposes of this article is are to:
(1) permit pari-mutuel wagering on horse races in
Indiana; and to
(2) permit the sale of pari-mutuel pull tabs at
racetracks and satellite facilities in Indiana;
(3) ensure that the sale of pari-mutuel pull tabs and
pari-mutuel wagering on horse races in Indiana will
be conducted with the highest of standards and the
greatest level of integrity; and
(4) maximize and preserve state revenues
generated from the various forms of permitted
gaming and wagering by ensuring that the various
forms of permitted gaming and wagering occur in
different geographic regions of the state.
SOURCE: IC 4-31-2-1.5; (03)HB1598.1.2. -->
SECTION 42. IC 4-31-2-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 1.5. "Allowed city" means a city
that has a population that is greater than two hundred thousand
(200,000).
SOURCE: IC 4-31-2-11.5; (03)HB1598.1.3. -->
SECTION 43. IC 4-31-2-11.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 11.5. "Pari-mutuel pull tab"
means a game offered to the public at a facility authorized under
IC 4-33-7.5 in which a person who purchases a ticket or simulated
ticket has the opportunity to share in a prize pool, multiple prize
pools, or a shared prize pool.
SOURCE: IC 4-31-4-1.3; (03)HB1598.1.4. -->
SECTION 44. IC 4-31-4-1.3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1.3. (a) This section
does not apply to a person who satisfies all of the following:
(1) The person was issued a satellite facility license
before January 2, 1996.
(2) The person operated a satellite facility before
January 2, 1996.
(3) The person is currently operating the satellite
facility under the license.
(b) A person may not operate under a satellite facility license
unless both of the following apply:
(1) The county fiscal body of the county in which the
satellite facility will be operated has adopted an
ordinance under section 2.5 of this chapter.
(2) The person secures a license under IC 4-31-5.5.
(c) Notwithstanding any other provision of this article,
subsection (b)(1) does not apply to a permit holder that:
(1) was issued a permit before July 1, 2003; and
(2) operates or files an application to operate a
satellite facility in an allowed city.
SOURCE: IC 4-31-4-2; (03)HB1598.1.5. -->
SECTION 45. IC 4-31-4-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. (a) A county fiscal
body may adopt an ordinance permitting the filing of applications
under IC 4-31-5 to conduct pari-mutuel wagering on horse races at
racetracks in the county. However, before adopting the ordinance, the
county fiscal body must:
to require that before applications under IC 4-31-5.5
to operate a satellite facility in the county may be
filed, the voters of the county must approve the
operation of a satellite facility in the county under
section 3 of this chapter.
An ordinance adopted under this section may not be amended to apply
to a person who was issued a license under IC 4-31-5.5 before the
ordinance was amended.
(c) Notwithstanding any other provision of this article, this
section does not apply to a permit holder that:
(1) was issued a permit before July 1, 2003; and
(2) operates or files an application to operate a
satellite facility in an allowed city.
SOURCE: IC 4-31-4-3; (03)HB1598.1.7. -->
SECTION 47. IC 4-31-4-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) This section does
not apply to either of the following:
(1) A permit holder who satisfies all of the following:
(A) The permit holder was issued a permit
before January 2, 1996.
(B) The permit holder conducted live racing
before January 2, 1996.
(C) The permit holder is currently operating
under the permit.
(2) A person who satisfies all of the following:
(A) The person was issued a satellite facility
license before January 2, 1996.
(B) The person operated a satellite facility
before January 2, 1996.
(C) The person is currently operating the
satellite facility under the license.
(b) This section applies if either of the following apply:
(1) Both of the following are satisfied:
(A) An ordinance is adopted under section 2
or 2.5 of this chapter.
(B) The ordinance requires the voters of the
county to approve either of the following:
(i) The conducting of horse racing
meetings in the county.
(ii) The operation of a satellite
facility in the county.
(2) A local public question is required to be held
under section 2.7 of this chapter following the filing
of a petition with the circuit court clerk:
(A) signed by at least the number of
registered voters of the county required under
IC 3-8-6-3 to place a candidate on the ballot;
and
(B) requesting that the local public question
set forth in subsection (d) be placed on the
ballot.
applicant;
(2) a statement from the department of state revenue
and the treasurer of state that there are no pari-mutuel
taxes or other obligations owed by the applicant to the
state or any of its departments or agencies;
(3) a statement from the county treasurer of the
county in which the applicant proposes to conduct
horse racing meetings that there are no real or
personal property taxes owed by any of the principals
seeking the permit; and
(4) a statement of obligations that are owed or being
contested, including salaries, purses, entry fees,
laboratory fees, and debts owed to vendors and
suppliers.
(b) In addition to the requirements of subsection (a), the
commission may not issue a recognized meeting permit for a
recognized meeting to occur in a county unless IC 4-31-4 has been
satisfied.
(c) In addition to the requirements of subsections (a) and
(b), the commission may not issue a recognized meeting permit for
a recognized meeting to occur at a location within thirty (30) linear
miles of a location for which another permit holder has been issued
a recognized meeting permit for a recognized meeting to occur.
SOURCE: IC 4-31-5-15; (03)HB1598.1.9. -->
SECTION 49. IC 4-31-5-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 15. Except as
provided in IC 4-31-7.5 or IC 4-31-7.6, any fees or penalties collected
by the commission under IC 4-31-3-9(1)(E) through IC 4-31-3-9(1)(G)
shall be paid into the state general fund.
SOURCE: IC 4-31-5.5-3; (03)HB1598.1.10. -->
SECTION 50. IC 4-31-5.5-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) As used in this
section, "live racing day" means a day on which at least eight (8) live
horse races are conducted.
(b) The commission's authority to issue satellite facility
licenses is subject to the following conditions:
(1) The commission may issue four (4) two (2)
satellite facility licenses to each permit holder that:
(A) conducts at least one hundred twenty
(120) live racing days per year at the
racetrack designated in the permit holder's
permit; and
(B) meets the other requirements of this
chapter and the rules adopted under this
chapter.
If a permit holder that operates satellite facilities does
not meet the required minimum number of live racing
days, the permit holder may not operate the permit
holder's satellite facilities during the following year.
However, the requirement for one hundred twenty
(120) live racing days does not apply if the
commission determines that the permit holder is
prevented from conducting live horse racing as a
result of a natural disaster or other event over which
the permit holder has no control. In addition, if the
initial racing meeting conducted by a permit holder
commences at such a time as to make it impractical to
conduct one hundred twenty (120) live racing days
during the permit holder's first year of operations, the
commission may authorize the permit holder to
conduct simulcast wagering during the first year of
operations with fewer than one hundred twenty (120)
live racing days.
(2) Each proposed satellite facility must be covered
by a separate application. The timing for filing an
initial application for a satellite facility license shall
be established by the rules of the commission.
(3) A satellite facility must:
(A) have full dining service available;
(B) have multiple screens to enable each
patron to view simulcast races; and
(C) be designed to seat comfortably a
minimum of four hundred (400) persons.
(4) In determining whether a proposed satellite
facility should be approved, the commission shall
consider the following:
(A) The purposes and provisions of this
chapter.
(B) The public interest.
(C) The impact of the proposed satellite
facility on live racing.
(D) The impact of the proposed satellite
facility on the local community.
(E) The potential for job creation.
(F) The quality of the physical facilities and
the services to be provided at the proposed
satellite facility.
(G) Any other factors that the commission
considers important or relevant to its
decision.
(5) The commission may not issue a license for a
satellite facility to be located in a county unless
IC 4-31-4 has been satisfied.
(6) Satellite facilities are limited to the following
locations:
(A) An allowed city.
(B) A city, other than an allowed city, in
which the permit holder's satellite facility
operations began before March 1, 2003.
(7) A permit holder may not hold more than one
license issued for the operation of a satellite facility
in an allowed city, unless the permit holder holds
a license issued for the operation of a satellite
facility in an allowed city jointly with another
permit holder.
(c) The number of licenses issued for the operation of a
satellite facility in the allowed cities may not exceed two (2).
However, an allowed city may not contain more than one (1)
satellite facility. A license issued for the operation of a satellite
facility in an allowed city may be jointly held by more than one (1)
permit holder.
(d) Notwithstanding any other provision of this chapter, a
permit holder licensed to sell pari-mutuel pull tabs under
IC 4-31-7.5 shall surrender any satellite facility license held by the
permit holder for the operation of a satellite facility at any location
other than a location specified in subsection (b)(6).
(e) If:
(1) a permit holder is issued a license under
IC 4-31-7.5 to sell pari-mutuel pull tabs at a
satellite facility located in an allowed city; and
(2) the permit holder is operating a satellite facility
in an allowed city under a license issued before
March 1, 2003;
the permit holder shall cease operations at the satellite facility
described in subdivision (2) and surrender the license under which
the satellite facility had been operated before commencing
operations at a satellite facility licensed to sell pari-mutuel pull
tabs.
SOURCE: IC 4-31-5.5-6; (03)HB1598.1.11. -->
SECTION 51. IC 4-31-5.5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. A permit holder or
group of permit holders that is authorized to operate satellite facilities
may accept and transmit pari-mutuel wagers on horse racing at those
facilities and may engage in all activities necessary to establish and
operate appropriate satellite wagering facilities, including the
following:
(1) Live simulcasts of horse racing conducted at the
permit holder's racetrack or at other racetracks.
However, a satellite facility operated by a permit
holder may not simulcast races conducted in other
states on any day that is not a live racing day (as
defined in section 3 of this chapter) unless the
satellite facility also simulcasts all available races
conducted in Indiana on that day.
(2) Construction or leasing of satellite wagering
facilities.
(3) Sale of food and beverages.
(4) Advertising and promotion.
(5) Sale of pari-mutuel pull tabs authorized under
IC 4-31-7.5.
(6) All other related activities.
SOURCE: IC 4-31-5.5-7; (03)HB1598.1.12. -->
SECTION 52. IC 4-31-5.5-7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 7. A zoning ordinance that
permits real property to be used as a racetrack for the purpose of
conducting live pari-mutuel horse racing must be construed to
authorize the permit holder to operate a satellite facility on the real
property. An ordinance described in this section may not be
amended to prohibit the permit holder from operating a satellite
facility on the real property.
SOURCE: IC 4-31-7-1; (03)HB1598.1.13. -->
SECTION 53. IC 4-31-7-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. (a) A person holding
a permit to conduct a horse racing meeting or a license to operate a
satellite facility may provide a place in the racing meeting grounds or
enclosure or the satellite facility at which the person may conduct and
supervise the pari-mutuel system of wagering by patrons of legal age
on the horse races conducted or simulcast by the person. The person
may not permit or use:
(1) another place other than that provided and
designated by the person; or
(2) another method or system of betting or wagering.
However, a person holding a permit to conduct a horse racing
meeting may permit wagering on pari-mutuel pull tabs at the
person's racetrack or satellite facility as permitted by IC 4-31-7.5.
(b) Except as provided in section 7 of this chapter and
IC 4-31-5.5, the pari-mutuel system of wagering may not be conducted
on any races except the races at the racetrack, grounds, or enclosure for
which the person holds a permit.
SOURCE: IC 4-31-7-2; (03)HB1598.1.14. -->
SECTION 54. IC 4-31-7-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. (a) A person less
than eighteen (18) years of age may not wager at a horse racing
meeting.
(b) A person less than seventeen (17) eighteen (18) years of
age may not enter the grandstand, clubhouse, or similar areas of a
racetrack at which wagering is permitted unless accompanied by a
person who is at least twenty-one (21) years of age.
(c) A person less than eighteen (18) years of age may not enter
a satellite facility.
(d) A person less than twenty-one (21) years of age may not
enter the part of a satellite facility or racetrack in which
pari-mutuel pull tabs are sold and redeemed.
SOURCE: IC 4-31-7.5; (03)HB1598.1.15. -->
SECTION 55. IC 4-31-7.5 IS ADDED TO THE INDIANA
CODE AS A NEW CHAPTER TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]:
Chapter 7.5. Pari-Mutuel Pull Tabs
Sec. 1. (a) This chapter applies only to the sale of
pari-mutuel pull tabs by a person that holds a permit to conduct a
pari-mutuel horse racing meeting issued under IC 4-31-5.
(b) This chapter does not apply to the sale of pull tabs by
a qualified organization (as defined in IC 4-32-6-20) under IC 4-32.
Sec. 2. The Indiana gaming commission shall regulate and
administer the sale, purchase, and redemption of pari-mutuel pull
tab tickets under this chapter.
Sec. 3. (a) The Indiana gaming commission shall adopt
rules under IC 4-22-2, including emergency rules under
IC 4-22-2-37.1, to implement this chapter, including rules that
prescribe:
(1) an approval process for pari-mutuel pull tab
games that requires periodic testing of the games
and equipment by an independent entity under the
oversight of the commission to ensure the integrity
of the games to the public;
(2) a system of internal audit controls;
(3) a method of payment for pari-mutuel pull tab
prizes that allows a player to transfer credits from
one (1) terminal or device to another;
(4) a method of payment for pari-mutuel pull tab
prizes that allows a player to redeem a winning
ticket for additional play tickets or credit to permit
purchase of additional play tickets;
(5) requirements for a license to sell pari-mutuel
pull tabs that a permit holder must obtain from
the commission before selling pari-mutuel pull
tabs;
(6) a voluntary exclusion program; and
(7) any other procedure or requirement necessary
for the efficient and economical operation of the
pari-mutuel pull tab games and the convenience of
the public.
(b) The Indiana gaming commission may enter into a
contract with the Indiana horse racing commission for the
provision of services necessary to administer pari-mutuel pull tab
games.
Sec. 4. (a) The Indiana gaming commission may issue a
license to a permit holder to sell pari-mutuel pull tabs under this
chapter at the locations described in section 9 of this chapter. To
obtain a license under this section, a permit holder must submit an
application on a form prescribed by the Indiana gaming
commission.
(b) Before issuing a license to a permit holder under this
section, the Indiana gaming commission shall subject the permit
holder to a background investigation similar to a background
investigation required of an applicant for a riverboat owner's
license under IC 4-33-6.
(c) An initial pari-mutuel pull tab license expires five (5)
years after the effective date of the license. Unless the pari-mutuel
pull tab license is terminated or revoked, the pari-mutuel pull tab
license may be renewed annually thereafter upon:
(1) the payment of an annual renewal fee
determined by the Indiana gaming commission;
and
(2) a determination by the Indiana gaming
commission that the permit holder satisfies the
conditions of this chapter.
(d) A permit holder holding a pari-mutuel pull tab license
shall undergo a complete investigation every three (3) years to
determine that the permit holder remains in compliance with this
article.
(e) Notwithstanding subsection (d), the Indiana gaming
commission may investigate a permit holder at any time the
commission determines it is necessary to ensure that the permit
holder remains in compliance with this article.
(f) The permit holder shall bear the cost of an investigation
or a reinvestigation of the permit holder and any investigation
resulting from a potential transfer of ownership.
(g) The Indiana gaming commission may not issue a license
under this chapter unless the permit holder has executed an
agreement with the mayor of an allowed city concerning the
conditions under which the city and the permit holder agree that
a satellite facility should be located and operated in the city. An
agreement under this subsection:
(1) must promote the public health, safety, and
welfare of the city;
(2) may include provisions for revenue sharing,
grants, housing development, employment
opportunities, investment, assistance with the
satellite facility, use of revenues, and any other
terms and conditions mutually agreed upon; and
(3) must be executed before April 1, 2004.
An agreement executed under this subsection is binding upon the
issuance of a license under this chapter by the Indiana gaming
commission, subject to the other provisions of this chapter. The
agreement may not supersede any applicable zoning laws. The
permit holder is under a continuing duty to remain in compliance
with the terms of the agreement executed under this subsection to
retain the permit holder's pari-mutuel pull tab license. The Indiana
gaming commission may revoke a pari-mutuel pull tab license for
noncompliance with the terms of an agreement executed under this
subsection.
(h) Money received by any unit of government under an
agreement executed under subsection (g) is considered
miscellaneous revenue. The money may not be used to reduce the
unit's maximum levy under IC 6-1.1-18.5 or IC 6-1.1-19, but may
be used at the discretion of the unit to reduce the property tax levy
for a particular year. The money may be used for any legal or
corporate purpose of the unit, including the pledge of money to
bonds, leases, or other obligations under IC 5-1-14-4. In the case of
an allowed city subject to IC 36-7-15.1-35.5, the agreement
executed under subsection (g) must dedicate at least twenty percent
(20%) of the money received under the agreement to the housing
trust fund established under IC 36-7-15.1-35.5(e).
(i) Notwithstanding any other law, a permit holder may not
sell pari-mutuel pull tabs at the permit holder's race track until the
permit holder has executed an agreement with the mayor of an
allowed city under subsection (g).
Sec. 5. The Indiana gaming commission may assess an
administrative fee to a permit holder offering pari-mutuel pull tab
games in an amount that allows the commission to recover all of
the commission's costs of administering the pari-mutuel pull tab
games.
Sec. 6. A pari-mutuel pull tab game must be conducted in
the following manner:
(1) Each set of tickets must have a predetermined:
(A) total purchase price; and
(B) amount of prizes.
(2) Randomly ordered pari-mutuel pull tab tickets
may be distributed from an approved location or
from a distribution device to:
(A) the permit holder at the permit
holder's racetrack or satellite facility, or
both; or
(B) a terminal or device of the permit
holder at the permit holder's racetrack or
satellite facility, or both.
(3) A pari-mutuel pull tab ticket must be presented
to a player in the form of a paper ticket or display
on a terminal or device.
(4) Game results must be initially covered or
otherwise concealed from view on the pari-mutuel
pull tab ticket, terminal, or device so that the
number, letter, symbol, or set of numbers, letters,
or symbols cannot be seen until the concealing
medium is removed.
(5) A winner is identified after the display of the
game results when a player removes the concealing
medium of the pari-mutuel pull tab ticket or
display on a terminal or device.
(6) A winner shall receive the prize or prizes
posted or displayed for the game from the permit
holder.
Sec. 7. A person less than twenty-one (21) years of age may
not purchase a pari-mutuel pull tab ticket.
Sec. 8. The sale price of a pari-mutuel pull tab ticket may
not exceed ten dollars ($10).
Sec. 9. The sale, purchase, and redemption of pari-mutuel
pull tab tickets are limited to the following locations:
(1) A live pari-mutuel horse racing facility licensed
under this article.
(2) A satellite facility licensed under this article
located in an allowed city.
Sec. 10. A permit holder may not install more than:
(1) seven hundred fifty (750) pull tab terminals or
devices on the premises of the permit holder's live
pari-mutuel horse racing facility; and
(2) one thousand five hundred (1,500) pull tab
terminals or devices on the premises of the permit
holder's satellite facility located in an allowed city.
Sec. 11. The number and amount of the prizes in a
pari-mutuel pull tab game must be finite but may not be limited.
Sec. 12. A list of prizes for winning pari-mutuel pull tab
tickets must be posted or displayed at a location where the tickets
are sold.
Sec. 13. A permit holder may close a pari-mutuel pull tab
game at any time.
Sec. 14. A terminal or device selling pari-mutuel pull tab
tickets may be operated by a player without the assistance of the
permit holder for the sale and redemption of pari-mutuel pull tab
tickets.
Sec. 15. A terminal or device selling pari-mutuel pull tab
tickets may not dispense coins or currency as prizes for winning
tickets. Prizes awarded by a terminal or device must be in the form
of credits for additional play or certificates redeemable for cash or
prizes.
Sec. 16. All shipments of gambling devices, including
pari-mutuel pull tab machines, to permit holders in Indiana, the
registering, recording, and labeling of which have been completed
by the manufacturer or dealer in accordance with 15 U.S.C. 1171
through 15 U.S.C. 1178, are legal shipments of gambling devices
into Indiana.
Sec. 17. Under 15 U.S.C. 1172, approved January 2, 1951,
the state of Indiana, acting by and through elected and qualified
members of the general assembly, declares that the state is exempt
from 15 U.S.C. 1172.
Sec. 18. (a) This section applies if a permit holder's
employees are covered under the terms of a collective bargaining
agreement that is in effect at the time the permit holder is licensed
to offer pari-mutuel pull tab wagering under this chapter.
(b) If a permit holder has nonsupervisory employees whose
work is:
(1) directly related to:
(A) pari-mutuel terminal operations; or
(B) money room functions associated with
pari-mutuel wagering; and
(2) covered under the terms of a collective
bargaining agreement;
the permit holder shall, subject to subsection (c), staff
nonsupervisory positions directly related to the operation of
pari-mutuel pull tab wagering under this chapter with employees
described in subsection (c).
(c) The employees described in subsection (b) must be
qualified to meet the licensing requirements of this chapter and any
criteria required by the gaming commission in rules adopted under
IC 4-22-2.
Sec. 19. The job classifications, job duties, wage rates, and
benefits of nonsupervisory positions related to pari-mutuel pull tab
wagering may be established by agreement of the parties to a
collective bargaining agreement, or in the absence of an agreement,
by the permit holder.
Sec. 20. (a) The Indiana gaming commission may eject or
exclude or authorize the ejection or exclusion of a person from a
pari-mutuel pull tab wagering facility if:
(1) the person's name is on the list of persons
voluntarily excluding themselves from all
pari-mutuel pull tab facilities in a program
established under the rules of the Indiana gaming
commission;
(2) the person violates this chapter; or
(3) the Indiana gaming commission determines
that the person's conduct or reputation is such that
the person's presence within the pari-mutuel pull
tab wagering facility may:
(A) call into question the honesty and
integrity of the pari-mutuel pull tab
operations; or
(B) interfere with the orderly conduct of
the pari-mutuel pull tab operations.
(b) A person may petition the Indiana gaming commission
for a hearing on the person's ejection or exclusion under this
section.
SOURCE: IC 4-31-7.6; (03)HB1598.1.16. -->
SECTION 56. IC 4-31-7.6 IS ADDED TO THE INDIANA
CODE AS A NEW CHAPTER TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]:
Chapter 7.6. Taxation of Pari-Mutuel Pull Tabs and Fees
Sec. 1. (a) This chapter applies only to the lawful sale of
pari-mutuel pull tabs by a person that:
(1) holds a permit to conduct a pari-mutuel horse
racing meeting issued under IC 4-31-5; and
(2) is authorized to sell pari-mutuel pull tabs under
IC 4-31-7.5.
(b) This chapter does not apply to the sale of pull tabs by
a qualified organization (as defined in IC 4-32-6-20) under IC 4-32.
Sec. 2. As used in this chapter, "adjusted gross receipts"
means:
(1) the total of all cash and property (including
checks received by a permit holder, whether
collected or not) received by a permit holder from
pari-mutuel pull tab sales; minus
(2) the total of:
(A) all cash paid out to patrons as
winnings for pari-mutuel pull tabs; and
(B) uncollectible pari-mutuel pull tab
receivables, not to exceed the lesser of:
(i) a reasonable provision for
uncollectible patron checks
received from pari-mutuel pull
tab sales; or
(ii) two percent (2%) of the total
of all sums, including checks,
whether collected or not, less the
amount paid out to patrons as
winnings for pari-mutuel pull
tabs.
For purposes of this section, a counter or personal check that is
invalid or unenforceable under this article is considered cash
received by the permit holder from pari-mutuel pull tab sales.
Sec. 3. As used in this chapter, "county resident student"
means a student enrolled in a school corporation who resides in a
county having a population of more than one hundred thirty
thousand (130,000) but less than one hundred forty-five thousand
(145,000).
Sec. 4. As used in this chapter, "net receipts" means a
permit holder's adjusted gross receipts minus any taxes paid under
section 6 of this chapter.
Sec. 5. As used in this chapter, "school corporation" has
the meaning set forth in IC 36-1-2-17.
Sec. 6. (a) A tax is imposed on the adjusted gross receipts
received from the sale of pari-mutuel pull tabs authorized under
this article at the rate of thirty-one percent (31%).
(b) The permit holder shall remit the tax imposed by this
section to the department before the close of the business day
following the day the pari-mutuel pull tabs are sold.
(c) The department may require payment under this
section to be made by electronic funds transfer (as defined in
IC 4-8.1-2-7(f)).
(d) If the department requires taxes to be remitted under
this chapter through electronic funds transfer, the department may
allow the permit holder to file a monthly report to reconcile the
amounts remitted to the department.
(e) The department may allow taxes remitted under this
section to be reported on the same form used for taxes paid under
IC 4-31-9.
Sec. 7. (a) The state pull tab wagering fund is established.
Money in the fund does not revert to the state general fund at the
end of a state fiscal year.
(b) The department shall deposit tax revenue collected
under section 6 of this chapter in the state pull tab wagering fund.
(c) Before the fifteenth day of each month, the treasurer of
state shall distribute the tax revenue deposited in the state pull tab
wagering fund under this section in the preceding months as
follows:
(1) Thirty percent (30%) of the tax revenue
remitted by each permit holder's racetrack shall
be paid as follows:
(A) In the case of a racetrack that is
located in a county having a population of
more than one hundred thirty thousand
(130,000) but less than one hundred
forty-five thousand (145,000), the tax
revenue remitted by the racetrack shall be
paid as follows:
(i) Fifty-eight percent (58%) to a
city having a population of more
than fifty-nine thousand seven
hundred (59,700) but less than
sixty-five thousand (65,000).
(ii) Seventeen percent (17%) to
the capital projects fund of the
county for distribution by the
county legislative body.
(iii) Seventeen percent (17%) to
the school corporations located in
the county. The tax revenue
distributed under this item must
be divided among the school
corporations on a pro rata basis
according to the ratio the number
of county resident students
enrolled in each school
corporation bears to the total
number of county resident
students enrolled in the school
corporations located in the
county. Revenue received by a
school corporation under this item
is considered miscellaneous
revenue.
(iv) Eight percent (8%) to the
incorporated cities and towns
located in the county other than a
city described in item (i). The tax
revenue distributed under this
item must be divided among the
cities and towns on a pro rata
basis according to the ratio the
population of each city or town
bears to the total population of the
county minus the population of a
city described in item (i).
(B) In the case of a racetrack that is
located in a county having a population of
more than forty-three thousand (43,000)
but less than forty-five thousand (45,000),
the tax revenues remitted by the racetrack
shall be paid as follows:
(i) Forty-one and five-tenths
percent (41.5%) to the county.
(ii) Forty-one and five-tenths
percent (41.5%) to a city having a
population of more than seventeen
thousand nine hundred (17,900)
but less than eighteen thousand
one hundred (18,100).
(iii) Seventeen and five-tenths
percent (17.5%) to the school
corporations located in the
county. The tax revenue
distributed under this item must
be divided among the school
corporations on a pro rata basis
according to the ratio the number
of county resident students
enrolled in each school
corporation bears to the total
number of county resident
students enrolled in the school
corporations located in the
county. Revenue received by a
school corporation under this item
is considered miscellaneous
revenue.
(2) After the distributions required under
subdivision (1) are made, the remainder of the tax
revenues deposited in the state pull tab wagering
fund shall be paid as follows:
(A) Fifty percent (50%) shall be paid to
the Medicaid augmentation fund,
established under I.C. 4-12-1-15.6.
(B) Fifty percent (50%) shall be set aside
for revenue sharing under subsection (d).
(d) Before August 15, 2004, and each year thereafter, the
treasurer of state shall distribute the money deposited in the state
pull tab wagering fund and set aside for revenue sharing under
subsection (c)(2)(B) to the county treasurer of each county that
does not have a riverboat or a satellite facility authorized to sell
pari-mutuel pull tabs according to the ratio that the county's
population bears to the total population of the counties that do not
have a riverboat or a satellite facility authorized to sell pari-mutuel
pull tabs. The county auditor shall distribute the money received
by the county under this subsection as follows:
(1) To each city located in the county according to
the ratio the city's population bears to the total
population of the county.
(2) To each town located in the county according
to the ratio the town's population bears to the total
population of the county.
(3) After the distributions required in subdivisions
(1) and (2) are made, the remainder shall be
retained by the county.
(e) Money received by a city, town, or county under
subsection (d):
(1) may not be used to reduce the unit's maximum
levy under
IC 6-1.1-18.5
, but may be used at the
discretion of the unit to reduce the property tax
levy for a particular year;
(2) may be used for any legal or corporate
purpose, including the pledge of money to bonds,
leases, or other obligations under
IC 5-1-14-4
; and
(3) is considered miscellaneous revenue.
Sec. 8. (a) Before the fifteenth day of each month a permit
holder shall pay a fee to the commission for the promotion of horse
racing that is equal to the percentage set forth in subsection (b) of
the permit holder's net receipts from the preceding month.
(b) The fee required under subsection (a) is equal to the
following percentages of the permit holder's net receipts:
Year 1 9%
Year 2 15%
Year 3 and each year thereafter 19.25%
(c) Money paid to the commission under this section must be
distributed as follows:
(1) At least two hundred fifty thousand dollars ($250,000) but
not more than one percent (1%) is to be distributed in equal
amounts for the support and operation of the following
horsemen's associations (as defined in
IC 4-31-8-6
):
(A) The horsemen's associations representing the
standardbred owners and trainers.
(B) The horsemen's associations representing the
thoroughbred owners and trainers.
(C) The horsemen's associations representing the
quarterhorse owners and trainers.
(2) The remainder is to be distributed, in amounts determined
by the commission, for the promotion and operation of horse
racing, as follows:
(i) To a breed development fund established by the
commission under
IC 4-31-11-10.
(ii) To each racetrack that has been approved by the
commission under this article. The commission may
make a grant under this item only for purses,
promotions, and routine operations.
Sec. 9. (a) The commission shall annually impose a supplemental
fee of two hundred fifty thousand dollars ($250,000) upon each
permit holder operating a racetrack under this article.
(b) Fifty percent (50%) of the annual fees collected under this
section must be used for training facilities and capital
improvements, including stall improvements.
(c) Fifty percent (50%) of the annual fees collected under this
section must be used to promote live racing at county and 4-H
fairgrounds.
SOURCE: IC 4-31-9-1; (03)HB1598.1.17. -->
SECTION 57. IC 4-31-9-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. A person that holds
a permit to conduct a horse racing meeting or a license to operate a
satellite facility shall withhold:
(1) eighteen percent (18%) of the total of money wagered on each
day at the racetrack or satellite facility (including money wagered
on exotic wagering pools but excluding money wagered on
pari-mutuel pull tabs under IC 4-31-7.5); plus
(2) an additional three and one-half percent (3.5%) of the total of
all money wagered on exotic wagering pools on each day at the
racetrack or satellite facility.
SOURCE: IC 4-32-15-1; (03)HB1598.1.18. -->
SECTION 58. IC 4-32-15-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. An excise tax is
imposed on the distribution of pull tabs (excluding pari-mutuel pull
tabs under IC 4-31-7.5), punchboards, and tip boards in the amount
of ten percent (10%) of the wholesale price for the pull tabs,
punchboards, and tip boards.
SOURCE: IC 4-33-2-16.3; (03)HB1598.1.19. -->
SECTION 59. IC 4-33-2-16.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 16.3. "Pari-mutuel pull tab" has
the meaning set forth in IC 4-31-2-11.5.
SOURCE: IC 4-33-4-2; (03)HB1598.1.20. -->
SECTION 60. IC 4-33-4-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. The commission
shall adopt rules under IC 4-22-2 for the following purposes:
(1) Administering this article.
(2) Establishing the conditions under which riverboat gambling
in Indiana may be conducted.
(3) Providing for the prevention of practices detrimental to the
public interest and providing for the best interests of riverboat
gambling.
(4) With respect to riverboats that operate on Patoka Lake,
ensuring:
(A) the prevention of practices detrimental to the natural
environment and scenic beauty of Patoka Lake; and
(B) compliance by licensees and riverboat patrons with the
requirements of IC 14-26-2-5 and IC 14-28-1.
(5) Establishing rules concerning inspection of riverboats and the
review of the permits or licenses necessary to operate a riverboat.
(6) Imposing penalties for noncriminal violations of this article.
(7) Establishing the conditions under which the sale, purchase,
and redemption of pari-mutuel pull tabs may be conducted
under IC 4-31-7.5.
SOURCE: IC 4-33-7.5; (03)HB1598.1.21. -->
SECTION 61. IC 4-33-7.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]:
Chapter 7.5. Pari-Mutuel Pull Tab Suppliers
Sec. 1. The commission may issue a supplier's license under this
chapter to a person if:
(1) the person has:
(A) applied for the supplier's license;
(B) paid a nonrefundable application fee set by the
commission;
(C) paid a five thousand dollar ($5,000) annual license fee;
and
(D) submitted on forms provided by the commission:
(i) if the applicant is an individual, two (2) sets of the
individual's fingerprints; and
(ii) if the applicant is not an individual, two (2) sets of
fingerprints for each officer and director of the
applicant; and
(2) the commission has determined that the applicant is
eligible for a supplier's license.
Sec. 2. (a) A person holding a supplier's license may sell, lease,
and contract to sell or lease pari-mutuel pull tab terminals and
devices to a permit holder authorized to sell and redeem
pari-mutuel pull tab tickets under IC 4-31-7.5.
(b) Pari-mutuel pull tab terminals and devices may not be
distributed unless the terminals and devices conform to standards
adopted by the commission.
Sec. 3. A person may not receive a supplier's license if:
(1) the person has been convicted of a felony under Indiana
law, the laws of any other state, or laws of the United States;
(2) the person has knowingly or intentionally submitted an
application for a license under this chapter that contains false
information;
(3) the person is a member of the commission;
(4) the person is an officer, a director, or a managerial
employee of a person described in subdivision (1) or (2);
(5) the person employs an individual who:
(A) is described in subdivision (1), (2), or (3); and
(B) participates in the management or operation of
gambling operations authorized under this article;
(6) the person owns more than a ten percent (10%) ownership
interest in any other person holding a permit issued under
IC 4-31; or
(7) a license issued to the person:
(A) under this article; or
(B) to supply gaming supplies in another jurisdiction;
has been revoked.
Sec. 4. A person may not furnish pari-mutuel pull tab terminals
or devices to a permit holder unless the person possesses a
supplier's license.
Sec. 5. (a) A supplier shall furnish to the commission a list of all
pari-mutuel pull tab terminals and devices offered for sale or lease
in connection with the sale of pari-mutuel pull tab tickets
authorized under IC 4-31-7.5.
(b) A supplier shall keep books and records for the furnishing
of pari-mutuel pull tab terminals and devices to permit holders
separate from books and records of any other business operated by
the supplier.
(c) A supplier shall file a quarterly return with the commission
listing all sales and leases.
(d) A supplier shall permanently affix the supplier's name to all
the supplier's pari-mutuel pull tab terminals or devices provided
to permit holders under this chapter.
Sec. 6. A supplier's pari-mutuel pull tab terminals or devices
that are used by a person in an unauthorized gambling operation
shall be forfeited to the state.
Sec. 7. Pari-mutuel pull tab terminals and devices that are
provided by a supplier may be:
(1) repaired on the premises of a racetrack or satellite facility;
or
(2) removed for repair from the premises of a permit holder
to a facility owned by the permit holder.
Sec. 8. (a) Unless a supplier's license is suspended, expires, or is
revoked, the supplier's license may be renewed annually upon:
(1) the payment of a five thousand dollar ($5,000) annual
renewal fee; and
(2) a determination by the commission that the licensee is in
compliance with this article.
(b) The holder of a supplier's license shall undergo a complete
investigation every three (3) years to determine that the licensee is
in compliance with this article.
(c) Notwithstanding subsection (b), the commission may
investigate the holder of a supplier's license at any time the
commission determines it is necessary to ensure that the licensee is
in compliance with this article.
(d) The holder of a supplier's license shall bear the cost of an
investigation or reinvestigation of the licensee and any
investigation resulting from a potential transfer of ownership.
SOURCE: IC 4-33-10-1; (03)HB1598.1.22. -->
SECTION 62. IC 4-33-10-1, AS AMENDED BY P.L.192-2002(ss),
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 1. (a) A person who knowingly or intentionally:
(1) makes a false statement on an application submitted under this
article;
(2) operates a gambling operation or a cruise in which wagering
is conducted or is to be conducted in a manner other than the
manner required under this article;
(3) permits a person less than twenty-one (21) years of age to
make a wager;
(4) aids, induces, or causes a person less than twenty-one (21)
years of age who is not an employee of the riverboat gambling
operation to enter or attempt to enter a riverboat;
(5) wagers or accepts a wager at a location other than a riverboat;
or
(6) makes a false statement on an application submitted to the
commission under this article or IC 4-31-7.5; or
(7) aids, induces, or causes a person less than twenty-one (21)
years of age who is not an employee of a pari-mutuel pull tab
operation licensed under IC 4-31-7.5 to enter or attempt to
enter the pari-mutuel pull tab operation;
commits a Class A misdemeanor.
(b) A person who:
(1) is not an employee of the riverboat gambling operation;
(2) is less than twenty-one (21) years of age; and
(3) knowingly or intentionally enters or attempts to enter a
riverboat;
commits a Class A misdemeanor.
(c) A person who:
(1) is not an employee of a pari-mutuel pull tab operation
licensed under IC 4-31;
(2) is less than twenty-one (21) years of age; and
(3) knowingly or intentionally enters the pari-mutuel pull tab
operation;
commits a Class A misdemeanor.
SOURCE: IC 4-33-12-6; (03)HB1598.1.23. -->
SECTION 63. IC 4-33-12-6, AS AMENDED BY P.L.192-2002(ss),
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 6. (a) The department shall place in the state
general fund the tax revenue collected under this chapter.
(b) Except as provided by subsections (c) and (d) and IC 6-3.1-20-7,
the treasurer of state shall quarterly pay the following amounts:
(1) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person
embarking on a gambling excursion during the quarter or
admitted to a riverboat that has implemented flexible scheduling
under IC 4-33-6-21 during the quarter shall be paid to:
(A) the city in which the riverboat is docked, if the city:
(i) is located in a county having a population of more than
one hundred ten thousand (110,000) but less than one
hundred fifteen thousand (115,000); or
(ii) is contiguous to the Ohio River and is the largest city in
the county; and
(B) the county in which the riverboat is docked, if the
riverboat is not docked in a city described in clause (A).
(2) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county in which the riverboat is docked. In the
case of a county described in subdivision (1)(B), this one dollar
($1) is in addition to the one dollar ($1) received under
subdivision (1)(B).
(3) Except as provided in subsection (k), ten cents ($0.10) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
IC 4-33-15 shall receive one dollar ($1) of the admissions tax
collected for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to the riverboat during the quarter (if the
riverboat has implemented flexible scheduling).
(3) The resource conservation and development program that:
(A) is established under 16 U.S.C. 3451 et seq.; and
(B) serves the Patoka Lake area;
shall receive forty cents ($0.40) of the admissions tax collected
for each person embarking on a gambling excursion during the
quarter or admitted to the riverboat during the quarter (if the
riverboat has implemented flexible scheduling).
(4) The state general fund shall receive fifty cents ($0.50) of the
admissions tax collected for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to the riverboat during the quarter (if the
riverboat has implemented flexible scheduling).
(5) The division of mental health and addiction shall receive ten
cents ($0.10) of the admissions tax collected for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to the riverboat during the quarter (if the
riverboat has implemented flexible scheduling).
The division shall allocate at least twenty-five percent (25%) of
the funds derived from the admissions tax to the prevention and
treatment of compulsive gambling.
(d) With respect to tax revenue collected from a riverboat that
operates from a county having a population of more than four hundred
thousand (400,000) but less than seven hundred thousand (700,000),
the treasurer of state shall quarterly pay the following amounts:
(1) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the city in which the riverboat is docked.
(2) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county in which the riverboat is docked.
(3) Except as provided in subsection (k), nine cents ($0.09) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county convention and visitors bureau or
promotion fund for the county in which the riverboat is docked.
(4) Except as provided in subsection (k), one cent ($0.01) of the
admissions tax collected by the licensed owner for each person:
obligations under IC 5-1-14-4; and
(4) is considered miscellaneous revenue.
(f) Money paid by the treasurer of state under subsection (b)(3) or
(d)(3) shall be:
(1) deposited in:
(A) the county convention and visitor promotion fund; or
(B) the county's general fund if the county does not have a
convention and visitor promotion fund; and
(2) used only for the tourism promotion, advertising, and
economic development activities of the county and community.
(g) Money received by the division of mental health and addiction
under subsections (b)(5), (c)(5), and (d)(6):
(1) is annually appropriated to the division of mental health and
addiction;
(2) shall be distributed to the division of mental health and
addiction at times during each state fiscal year determined by the
budget agency; and
(3) shall be used by the division of mental health and addiction
for programs and facilities for the prevention and treatment of
addictions to drugs, alcohol, and compulsive gambling, including
the creation and maintenance of a toll free telephone line to
provide the public with information about these addictions. The
division shall allocate at least twenty-five percent (25%) of the
money received to the prevention and treatment of compulsive
gambling.
(h) This subsection applies to the following:
(1) Each entity receiving money under subsection (b).
(2) Each entity receiving money under subsection (d)(1) through
(d)(2).
(3) Each entity receiving money under subsection (d)(5) through
(d)(7).
The treasurer of state shall determine the total amount of money paid
by the treasurer of state to an entity subject to this subsection during
the state fiscal year 2002. The amount determined under this subsection
is the base year revenue for each entity subject to this subsection. The
treasurer of state shall certify the base year revenue determined under
this subsection to each entity subject to this subsection.
(i) This subsection applies to an entity receiving money under
subsection (d)(3) or (d)(4). The treasurer of state shall determine the
total amount of money paid by the treasurer of state to the entity
described in subsection (d)(3) during state fiscal year 2002. The
amount determined under this subsection multiplied by nine-tenths
(0.9) is the base year revenue for the entity described in subsection
(d)(3). The amount determined under this subsection multiplied by
one-tenth (0.1) is the base year revenue for the entity described in
subsection (d)(4). The treasurer of state shall certify the base year
revenue determined under this subsection to each entity subject to this
subsection.
(j) For state fiscal years beginning after June 30, 2002, the total
amount of money distributed to an entity under this section during a
state fiscal year may not exceed the entity's base year revenue as
determined under subsection (h) or (i). If the treasurer of state
determines that the total amount of money distributed to an entity under
this section during a state fiscal year is less than the entity's base year
revenue, the treasurer of state shall make a supplemental distribution
to the entity under IC 4-33-13-5(f).
(k) For state fiscal years beginning after June 30, 2002, the treasurer
of state shall pay that part of the riverboat admissions taxes that:
(1) exceed a particular entity's base year revenue; and
(2) would otherwise be due to the entity under this section;
to the property tax replacement fund instead of to the entity.
(l) The maximum amount paid to the Indiana horse racing
commission under this section in a state fiscal year may not exceed
the remainder of:
(1) the Indiana horse racing commission's base year revenue
as determined under subsection (h); minus
(2) the amount of fees, if any, paid to the Indiana horse racing
commission under IC 4-31-7.6-8.
The treasurer of state shall pay the amount of the admissions taxes
equal to the amount of fees subtracted from the Indiana horse
racing commission's base year revenue under this subsection to the
Medicaid augmentation fund, established under I.C. 4-12-1-15.6,
instead of to the Indiana horse racing commission.".
Page 98, between lines 14 and 15, begin a new paragraph and insert:
SOURCE: IC 4-33-14-1; (03)HB1598.1.24. -->
"SECTION 64. IC 4-33-14-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. The general
assembly declares that the opportunity for full minority and women's
business enterprise participation in the riverboat industry and
pari-mutuel pull tab industries is essential if social and economic
parity is to be obtained by minority and women business persons and
if the economies of the riverboat cities and pari-mutuel pull tab
communities are to be stimulated as contemplated by this article and
IC 4-31-7.5. In complying with this chapter, a licensed owner or
permit holder should give priority to minority and women's
business enterprises in the following order:
(1) Local enterprises.
(2) Enterprises located in Indiana and the region surrounding
the licensee's riverboat or pull tab facility.
(3) Indiana enterprises.
(4) National enterprises.
SOURCE: IC 4-33-14-1.5; (03)HB1598.1.25. -->
SECTION 65. IC 4-33-14-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 1.5. This chapter applies to:
(1) a licensed owner of a riverboat licensed under this article;
and
(2) a permit holder licensed to sell pari-mutuel pull tabs under
IC 4-31-7.5.
SOURCE: IC 4-33-14-5; (03)HB1598.1.26. -->
SECTION 66. IC 4-33-14-5, AS AMENDED BY P.L.195-2001,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 5. (a) As used in this section, "goods and services"
does not include the following:
(1) Utilities and taxes.
(2) Financing costs, mortgages, loans, or other debt.
(3) Medical insurance.
(4) Fees and payments to a parent or an affiliated company of the
person holding an owner's license or a pari-mutuel pull tab
license, other than fees and payments for goods and services
supplied by nonaffiliated persons through an affiliated company
for the use or benefit of the person holding the owner's license or
a pari-mutuel pull tab license.
(5) Rents paid for real property or payments constituting the price
of an interest in real property as a result of a real estate
transaction.
(b) Notwithstanding any law or rule to the contrary, the commission
shall establish annual goals for a person issued an owner's license or
a pari-mutuel pull tab license:
(1) for the use of minority and women's business enterprises; and
(2) derived from a statistical analysis of utilization study of
licensee contracts for goods and services that are required to be
updated every five (5) years.
A person holding an owner's license or a pari-mutuel pull tab license
shall submit annually to the commission a report that includes the total
dollar value of contracts awarded for goods or services and the
percentage awarded to minority and women's business enterprises.
(c) A person holding an owner's license or a pari-mutuel pull tab
license shall make a good faith effort to meet the requirements of this
section and shall annually demonstrate to the commission that an effort
was made to meet the requirements.
(d) A person holding an owner's license or a pari-mutuel pull tab
license may fulfill not more than seventy percent (70%) of an
obligation under this chapter by requiring a vendor to set aside a part
of a contract for minority or women's business enterprises. Upon
request, the licensee shall provide the commission with proof of the
amount of the set aside.
SOURCE: IC 4-33-14-6; (03)HB1598.1.27. -->
SECTION 67. IC 4-33-14-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. If the commission
determines that the provisions of this chapter relating to expenditures
and assignments to minority and women's business enterprises have not
been met by a licensee, the commission may suspend, limit, or revoke
the owner's license or fine or the permit holder's pari-mutuel pull
tab license, or impose a civil penalty or appropriate conditions on the
licensee to ensure that the goals for expenditures and assignments to
minority and women's business enterprises are met. However, if a
determination is made that a person holding an owner's license or a
pari-mutuel pull tab license has failed to demonstrate compliance
with this chapter, the person has ninety (90) days from the date of the
determination of noncompliance to comply.
SOURCE: IC 4-33-14-7; (03)HB1598.1.28. -->
SECTION 68. IC 4-33-14-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. The commission
shall establish and administer a unified certification procedure for
minority and women's business enterprises that do business with
riverboat operations and pari-mutuel pull tab operations on contracts
for goods and services or contracts for business.
SOURCE: IC 4-33-14-8; (03)HB1598.1.29. -->
SECTION 69. IC 4-33-14-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. The commission
shall supply persons holding owner's licenses or pari-mutuel pull tab
licenses with a list of the minority and women's business enterprises
the commission has certified under section 7 of this chapter. The
commission shall review the list annually to determine the minority and
women's business enterprises that should continue to be certified. The
commission shall establish a procedure for challenging the designation
of a certified minority and women's business enterprise. The procedure
must include proper notice and a hearing for all parties concerned.
SOURCE: IC 4-33-14-9; (03)HB1598.1.30. -->
SECTION 70. IC 4-33-14-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) This section
applies to the following:
(1) A person holding an owner's licenses license for riverboats
operated from a city described under IC 4-33-6-1(a)(1) through
IC 4-33-6-1(a)(3).
(2) A person holding a license to sell pari-mutuel pull tabs
under IC 4-31-7.5.
(b) The commission shall require persons holding owner's licenses
to adopt policies concerning the preferential hiring of residents of the
city in which the riverboat docks for riverboat jobs.
(c) The commission shall require a person holding a pari-mutuel
pull tab license to adopt policies concerning the preferential hiring
of residents of the city or county in which the person has a
pari-mutuel pull tab operation.
SOURCE: IC 4-33-14-11; (03)HB1598.1.31. -->
SECTION 71. IC 4-33-14-11 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 11. The commission shall deposit
civil penalties imposed under section 6 of this chapter in the
minority and women business participation fund established by
section 12 of this chapter.
SOURCE: IC 4-33-14-12; (03)HB1598.1.32. -->
SECTION 72. IC 4-33-14-12 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 12. (a) The minority and women
business participation fund is established to assist minority and
women business enterprises. The fund shall be administered by the
commission. The fund consists of fees collected under section 13 of
this chapter and civil penalties imposed under section 6 of this
chapter.
(b) The Indiana department of administration may use fees
collected under section 13 of this chapter to hire employees to
administer this chapter. The commission may use other money in
the fund for the purposes of this chapter.
(c) The expenses of administering the fund shall be paid from
money in the fund.
(d) The treasurer of state shall invest money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested. Interest that
accrues from those investments shall be deposited in the fund.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
SOURCE: IC 4-33-14-13; (03)HB1598.1.33. -->
SECTION 73. IC 4-33-14-13 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 13. The commission shall charge
an annual fee of ten thousand dollars ($10,000) upon the following:
(1) Each licensed owner of a riverboat licensed under this
article.
(2) Each racetrack offering pari-mutuel pull tabs under
IC 4-31-7.5.
(3) Each satellite facility offering pari-mutuel pull tabs under
IC 4-31-7.5.
The fees collected under this section must be deposited into the
minority and women business participation fund.".
Page 106, between lines 14 and 15, begin a new paragraph and
insert:
SOURCE: IC 6-3-4-8.2; (03)HB1598.1.34. -->
"SECTION 74. IC 6-3-4-8.2, AS AMENDED BY P.L.192-2002(ss),
SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 8.2. (a) Each person in Indiana who is required
under the Internal Revenue Code to withhold federal tax from winnings
shall deduct and retain adjusted gross income tax at the time and in the
amount described in withholding instructions issued by the department.
(b) In addition to amounts withheld under subsection (a), every
person engaged in a gambling operation (as defined in IC 4-33-2-10)
and making a payment in the course of the gambling operation (as
defined in IC 4-33-2-10) of:
(1) winnings (not reduced by the wager) valued at one thousand
two hundred dollars ($1,200) or more from slot machine play; or
(2) winnings (reduced by the wager) valued at one thousand five
hundred dollars ($1,500) or more from a keno game;
shall deduct and retain adjusted gross income tax at the time and in the
amount described in withholding instructions issued by the department.
The department's instructions must provide that amounts withheld shall
be paid to the department before the close of the business day following
the day the winnings are paid, actually or constructively. Slot machine
and keno winnings from a gambling operation (as defined in
IC 4-33-2-10) that are reportable for federal income tax purposes shall
be treated as subject to withholding under this section, even if federal
tax withholding is not required.
(c) The adjusted gross income tax due on prize money or prizes:
(1) received from a winning lottery ticket purchased under
IC 4-30; and
(2) exceeding one thousand two hundred dollars ($1,200) in
value;
shall be deducted and retained at the time and in the amount described
in withholding instructions issued by the department, even if federal
withholding is not required.
(d) In addition to the amounts withheld under subsection (a),
each person engaged in a pari-mutuel pull tab operation under
IC 4-31-7.5 making a payment in the course of the pull tab
operation of pull tab winnings valued at one thousand two hundred
dollars ($1,200) or more shall deduct and retain adjusted gross
income tax at the time and in the amount described in withholding
instructions issued by the department. The department's
instructions must provide that amounts withheld shall be paid to
the department before the close of the business day following the
day the winnings are paid, actually or constructively. Pari-mutuel
pull tab winnings are subject to withholding under this section even
if the winnings are not reportable or subject to withholding for
federal income tax purposes.
SOURCE: IC 6-8.1-1-1; (03)HB1598.1.35. -->
SECTION 75. IC 6-8.1-1-1, AS AMENDED BY P.L.192-2002(ss),
SECTION 140, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 1. "Listed taxes" or "taxes" includes
only the pari-mutuel pull tab wagering tax (IC 4-31-7.6);
pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the riverboat
admissions tax (IC 4-33-12); the riverboat wagering tax (IC 4-33-13);
the gross income tax (IC 6-2.1) (repealed); the utility receipts tax
(IC 6-2.3); the state gross retail and use taxes (IC 6-2.5); the adjusted
gross income tax (IC 6-3); the supplemental net income tax (IC 6-3-8)
(repealed); the county adjusted gross income tax (IC 6-3.5-1.1); the
county option income tax (IC 6-3.5-6); the county economic
development income tax (IC 6-3.5-7); the municipal option income tax
(IC 6-3.5-8); the auto rental excise tax (IC 6-6-9); the financial
institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the alternative
fuel permit fee (IC 6-6-2.1); the special fuel tax (IC 6-6-2.5); the motor
carrier fuel tax (IC 6-6-4.1); a motor fuel tax collected under a
reciprocal agreement under IC 6-8.1-3; the motor vehicle excise tax
(IC 6-6-5); the commercial vehicle excise tax (IC 6-6-5.5); the
hazardous waste disposal tax (IC 6-6-6.6); the cigarette tax (IC 6-7-1);
the beer excise tax (IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the
wine excise tax (IC 7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5);
the malt excise tax (IC 7.1-4-5); the petroleum severance tax
(IC 6-8-1); the various innkeeper's taxes (IC 6-9); the various county
food and beverage taxes (IC 6-9); the county admissions tax (IC 6-9-13
and IC 6-9-28); the oil inspection fee (IC 16-44-2); the emergency and
hazardous chemical inventory form fee (IC 6-6-10); the penalties
assessed for oversize vehicles (IC 9-20-3 and IC 9-30); the fees and
penalties assessed for overweight vehicles (IC 9-20-4 and IC 9-30); the
underground storage tank fee (IC 13-23); the solid waste management
fee (IC 13-20-22); and any other tax or fee that the department is
required to collect or administer.".
Page 151, between lines 2 and 3, begin a new paragraph and insert:
SOURCE: IC 35-45-5-7; (03)HB1598.1.36. -->
"SECTION 76. IC 35-45-5-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. This chapter does not
apply to the publication or broadcast of an advertisement, a list of
prizes, or other information concerning:
(1) pari-mutuel wagering on horse races or a lottery authorized by
the law of any state; or
opportunities, from the presence of casino gaming operations
because of the distance between the cities and Indiana's casino
gaming operations; and
(3) the large number of exempt properties, the urban
character of the community, the demands placed on the cities'
assets by commuters, tourists, and business visitors, and the
age of many of the cities' systems and facilities.".
Renumber all SECTIONS consecutively.
(Reference is to EHB 1001 as printed April 1, 2003.)