MADAM PRESIDENT:
I move
that Engrossed House Bill 1001 be amended to read as follows:
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.
(c) After December 31, 2004, a permit holder may not submit an
initial application for a license to operate an additional satellite
facility under this chapter. After December 31, 2004, the
commission may not issue an initial license for a new satellite
facility. A satellite facility license issued before January 1, 2005,
may be renewed annually subject to the requirements of this
chapter.
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
(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), fifteen cents ($0.15) 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 a quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the state fair commission, for use in any activity
that the commission is authorized to carry out under IC 15-1.5-3.
(5) 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
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the division of mental health and addiction. 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.
(6) Except as provided in subsection subsections (k) and (l),
sixty-five cents ($0.65) 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 during the
quarter that has implemented flexible scheduling under
IC 4-33-6-21 shall be paid to the Indiana horse racing commission
to be distributed as follows, in amounts determined by the Indiana
horse racing commission, for the promotion and operation of
horse racing in Indiana:
(A) To one (1) or more breed development funds established
by the Indiana horse racing commission under IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse
racing commission under IC 4-31. The commission may make
a grant under this clause only for purses, promotions, and
routine operations of the racetrack. No grants shall be made for
long term capital investment or construction, and no grants
shall be made before the racetrack becomes operational and is
offering a racing schedule.
(c) With respect to tax revenue collected from a riverboat located in
a historic hotel district, the treasurer of state shall quarterly pay the
following amounts:
(1) Twenty-five percent (25%) of the admissions tax collected
during the quarter shall be paid to the county treasurer of the
county in which the riverboat is docked. The county treasurer
shall distribute the money received under this subdivision as
follows:
(A) Twenty percent (20%) shall be quarterly distributed to the
county treasurer of a county having a population of more than
thirty-nine thousand six hundred (39,600) but less than forty
thousand (40,000) for appropriation by the county fiscal body
after receiving a recommendation from the county executive.
The county fiscal body for the receiving county shall provide
for the distribution of the money received under this clause to
one (1) or more taxing units (as defined in IC 6-1.1-1-21) in
the county under a formula established by the county fiscal
body after receiving a recommendation from the county
executive.
(B) Twenty percent (20%) shall be quarterly distributed to the
county treasurer of a county having a population of more than
ten thousand seven hundred (10,700) but less than twelve
thousand (12,000) for appropriation by the county fiscal body.
The county fiscal body for the receiving county shall provide
for the distribution of the money received under this clause to
one (1) or more taxing units (as defined in IC 6-1.1-1-21) in
the county under a formula established by the county fiscal
body after receiving a recommendation from the county
executive.
(C) Sixty percent (60%) shall be retained by the county where
the riverboat is docked for appropriation by the county fiscal
body after receiving a recommendation from the county
executive. The county fiscal body shall provide for the
distribution of part or all of the money received under this
clause to the following under a formula established by the
county fiscal body:
(i) A town having a population of more than two thousand
two hundred (2,200) but less than three thousand five
hundred (3,500) located in a county having a population of
more than nineteen thousand three hundred (19,300) but less
than twenty thousand (20,000).
(ii) A town having a population of more than three thousand
five hundred (3,500) located in a county having a population
of more than nineteen thousand three hundred (19,300) but
less than twenty thousand (20,000).
(2) Sixteen percent (16%) of the admissions tax collected during
the quarter shall be paid in equal amounts to each town that:
(A) is located in the county in which the riverboat docks; and
(B) contains a historic hotel.
The town council shall appropriate a part of the money received
by the town under this subdivision to the budget of the town's
tourism commission.
(3) Nine percent (9%) of the admissions tax collected during the
quarter shall be paid to the historic hotel preservation commission
established under IC 36-7-11.5.
(4) Twenty-five percent (25%) of the admissions tax collected
during the quarter shall be paid to the West Baden Springs historic
hotel preservation and maintenance fund established by
IC 36-7-11.5-11(b).
(5) Twenty-five percent (25%) of the admissions tax collected
during the quarter shall be paid to the Indiana economic
development corporation to be used by the corporation for the
development and implementation of a regional economic
development strategy to assist the residents of the county in which
the riverboat is located and residents of contiguous counties in
improving their quality of life and to help promote successful and
sustainable communities. The regional economic development
strategy must include goals concerning the following issues:
(A) Job creation and retention.
(B) Infrastructure, including water, wastewater, and storm
water infrastructure needs.
(C) Housing.
(D) Workforce training.
(E) Health care.
(F) Local planning.
(G) Land use.
(H) Assistance to regional economic development groups.
(I) Other regional development issues as determined by the
Indiana economic development corporation.
sixty-five cents ($0.65) 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 during the
quarter that has implemented flexible scheduling under
IC 4-33-6-21 shall be paid to the Indiana horse racing commission
to be distributed as follows, in amounts determined by the Indiana
horse racing commission, for the promotion and operation of
horse racing in Indiana:
(A) To one (1) or more breed development funds established
by the Indiana horse racing commission under IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse
racing commission under IC 4-31. The commission may make
a grant under this clause only for purses, promotions, and
routine operations of the racetrack. No grants shall be made for
long term capital investment or construction, and no grants
shall be made before the racetrack becomes operational and is
offering a racing schedule.
(e) Money paid to a unit of local government under subsection (b)(1)
through (b)(2), (c)(1) through (c)(2), or (d)(1) through (d)(2):
(1) must be paid to the fiscal officer of the unit and may be
deposited in the unit's general fund or riverboat fund established
under IC 36-1-8-9, or both;
(2) 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 of the unit for a particular year;
(3) 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; 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) 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) This subsection does not apply to an entity receiving money
under subsection (c). 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(g).
(k) This subsection does not apply to an entity receiving money
under subsection (c). 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 ending 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 pari-mutuel pull tab revenues, if any,
distributed under IC 4-35-7-3(a)(1) in the state fiscal year.
The treasurer of state shall pay the amount of the admissions taxes
equal to the amount of pari-mutuel pull tab revenues subtracted
from the Indiana horse racing commission's base year revenue
under this subsection to the state general fund instead of to the
Indiana horse racing commission.".
civil rights have been restored; or
(B) subsequent to the individual's conviction or entry of a
plea, the individual engaged in the kind of law abiding
behavior and good citizenship that would reflect well upon
the integrity of the lottery.
(2) The director, a member, or an employee of the commission
having decision making authority may not participate in a
decision involving a vendor or retailer with whom the
director, member, or employee has a financial interest. An
employee may not participate in a decision involving a vendor
or retailer with whom the employee has discussed employment
opportunities without the approval of the director or, if the
individual is the director or a member of the commission,
without the approval of the governor. An employee of the
commission shall notify the director of any employment
opportunities discussed or, if the individual is the director or
a member of the commission, the director or member shall
notify the governor. A violation of this subdivision is a Class
A infraction.
(3) The director, a member, or an employee of the commission
who terminates employment with the commission may not
represent a vendor or retailer before the commission
regarding a specific matter that the director, member, or
employee was involved in while serving as a director or
member of or while employed by the commission for one (1)
year following the date the director or member left the
commission or the date of cessation of employment with the
commission. A violation of this subdivision is a Class A
infraction.
Sec. 7. The commission shall establish and maintain a personnel
program for its employees engaged in the operation of pari-mutuel
pull tabs under this article. Employees of the commission serve at
the pleasure of the director and are subject to suspension,
dismissal, reduction in pay, demotion, transfer, or other personnel
action at the discretion of the director. Employees of the
commission are not merit system employees under IC 4-15-2.
Employees may not be hired or fired on the basis of political
affiliation.
Sec. 8. The commission may charge fees to persons applying for
a contract as a vendor. The fees must be reasonably calculated to
cover the costs of investigations and other activities related to the
processing of the application.
Sec. 9. The commission may enter into contracts for the
purchase, lease, or lease-purchase of goods and services necessary
for the operation and promotion of pari-mutuel pull tabs, including
assistance provided by a governmental agency. The commission
may require separate bids or proposals for each of the following
supplies or services, if the supplies or services are provided under
contract with the commission under this section or under
IC 4-35-6:
(1) Management consultation services.
(2) Pari-mutuel pull tab services and supplies.
Sec. 10. (a) This section applies only to contributions made after
June 30, 2005.
(b) The definitions set forth in IC 3-5-2 apply to this section.
(c) As used in this section, "candidate" refers only to a candidate
for a state office.
(d) As used in this section, "committee" refers to any of the
following:
(1) A candidate's committee.
(2) A regular party committee.
(3) A committee organized by a legislative caucus of the house
of the general assembly.
(4) A committee organized by a legislative caucus of the senate
of the general assembly.
(e) As used in this section, "contract" refers only to a contract
with the commission or the director for any of the following:
(1) A major procurement.
(2) Auditing services to the commission.
(f) As used in this section, "contractor" means a person who has
a contract with the commission or the director.
(g) As used in this section, "officer" refers only to either of the
following:
(1) An individual listed as an officer of a corporation in the
corporation's most recent annual report.
(2) An individual who is a successor to an individual described
in subdivision (1).
(h) A person is considered to have made a contribution under
this section if a contribution is made by any of the following:
(1) The person.
(2) An officer of the person.
(3) A political action committee of the person.
(i) A person may not enter into a contract if the person has made
a contribution to a candidate or a committee within the three (3)
years preceding the award of the contract.
(j) A contractor, an officer of a contractor, or a political action
committee of a contractor may not make a contribution to a
candidate or a committee while the contract is in effect and during
the three (3) years following the final expiration or termination of
the contract.
(k) A person who knowingly or intentionally violates this section
commits a Class D felony.
Chapter 5. Pari-Mutuel Pull Tab Vendors
Sec. 1. (a) The commission may enter into contracts for the
purchase, lease, or lease-purchase of goods or services necessary to
carry out this article. The commission may not contract with any
person or entity for the total operation and administration of the
sale of pari-mutuel pull tabs authorized by this article, but may
enter into contracts and make purchases that integrate functions
such as game design, supply of goods and services, and
advertisement.
(b) In all procurement decisions, the director or the commission,
if the commission chooses to make the decision, shall take into
account the particularly sensitive nature of the gaming authorized
by this article and shall consider the competence, quality of
product, experience, and timely performance of the vendors in
order to promote and ensure security, honesty, fairness, and
integrity in the operation and administration of the sale of
pari-mutuel pull tabs and the objective of raising net revenues for
the benefit of the public purposes described in this article.
Sec. 2. The division of security established under IC 4-30 shall
investigate the financial responsibility, security, and integrity of a
person who submits a bid, proposal, or offer as part of a major
procurement. At a minimum, each person must disclose at the time
of submitting a bid, proposal, or offer to the commission all of the
following items:
(1) A disclosure of the vendor's name and address and the
names and addresses of the following:
(A) If the vendor is a corporation, the officers, directors,
and each stockholder in the corporation, except that in the
case of owners of equity securities of a publicly traded
corporation only the names and addresses of those known
to the corporation to own beneficially at least five percent
(5%) in equity securities need be disclosed.
(B) If the vendor is a trust, the trustees and all persons
entitled to receive income or benefits from the trust.
(C) If the vendor is an association, the members, officers,
and directors.
(D) If the vendor is a partnership or joint venture, all of the
general partners, limited partners, or joint venturers.
(2) A disclosure of all the states and jurisdictions in which the
vendor does business and the nature of that business for each
state or jurisdiction.
(3) A disclosure of all the states and jurisdictions in which the
vendor has contracts to supply gaming goods or services,
including lottery goods and services, and of the nature of the
goods and services involved for each state or jurisdiction.
(4) A disclosure of all the states and jurisdictions in which the
vendor has applied for, has sought renewal of, has received,
has been denied, has pending, or has had revoked or
terminated a gaming license or contract of any kind and of the
disposition in each state or jurisdiction. If a gaming license or
contract has been revoked or terminated or has not been
renewed or a gaming license application or contract bid has
been either denied or is pending and has remained pending
for more than six (6) months, all of the facts and
circumstances underlying this failure to receive a license or
contract must be disclosed.
(5) A tax clearance statement from the department of state
revenue certifying that the vendor is not on the most recent
tax warrant list.
(6) A disclosure of the details of a conviction or judgment of
a state or federal court of the vendor of a felony or any other
criminal offense other than a traffic violation.
(7) A disclosure of the details of a bankruptcy, an insolvency,
a reorganization, or any pending litigation of the vendor.
(8) If a vendor subcontracts part of the work to be performed,
the vendor shall disclose all the information required by this
chapter for the subcontractor as if the subcontractor were a
vendor.
(9) Additional disclosures and information the commission
determines appropriate for the procurement involved.
Sec. 3. A contract for a major procurement with a vendor that
does not comply with the disclosure requirements described in
section 2 of this chapter may not be entered into and is not
enforceable. A contract with a vendor who does not comply with
the requirements for periodically updating the disclosures during
the tenure of the contract as specified in the contract may be
terminated by the commission. This section shall be construed
broadly and liberally to achieve full disclosure of all information
necessary to allow for a full and complete evaluation by the
commission of the competence, integrity, background, and
character of vendors for major procurement.
Sec. 4. A contract for a major procurement with a vendor may
not be entered into if the vendor has been convicted of, or entered
a plea of guilty or nolo contendere to, a felony committed in the
preceding ten (10) years, regardless of adjudication, unless the
commission determines that:
(1) the vendor has been pardoned or the vendor's civil rights
have been restored;
(2) subsequent to the conviction or entry of the plea, the
vendor has engaged in the kind of law abiding commerce and
good citizenship that would reflect well upon the integrity of
the lottery; or
(3) if the vendor is a firm, an association, a partnership, a
trust, a corporation, a limited liability company, or other
entity, the vendor has terminated its relationship with the
individual whose actions directly contributed to the vendor's
conviction or entry of the plea.
Sec. 5. Each vendor in a major procurement must, at the time
of executing the contract with the commission, post an appropriate
bond or a letter of credit with the commission in an amount equal
to the full amount estimated to be paid annually to the vendor
under contract. However, the commission may, by a majority vote
of all the members of the commission, adopt a resolution expressly
permitting the director to decrease the bond or letter of credit
requirement for a procurement if the director determines that the
decrease will result in a cost savings to the commission while still
providing adequate protection against nonperformance. Instead of
a bond or letter of credit, a vendor may, to assure the faithful
performance of the vendor's obligations, deposit and maintain with
the commission securities that are interest bearing or accruing and
that, with the exception of those specified in subdivision (1) or (2),
are rated in one (1) of the four (4) highest classifications by an
established nationally recognized investment rating service.
Securities eligible under this section are limited to the following:
(1) Certificates of deposit issued by solvent banks or savings
associations organized and existing under Indiana law or
under the laws of the United States and having their principal
place of business in Indiana.
(2) United States bonds and bills for which the full faith and
credit of the government of the United States is pledged for
the payment of principal and interest.
(3) General obligation bonds and notes of any political
subdivision of the state.
(4) Corporate bonds of a corporation that is not an affiliate or
a subsidiary of the depositor.
Securities shall be held in trust and must have at all times a market
value at least equal to the full amount estimated to be paid annually
to the vendor under the contract.
Sec. 6. Each contract entered into by the commission for a major
procurement under this chapter must contain a provision for
payment of liquidated damages to the commission for a breach of
the major procurement contract by the vendor.
Sec. 7. A contract entered into by the commission under this
chapter may not include a provision allowing for warrantless
searches.
Sec. 8. Each vendor must be qualified to do business in Indiana
and shall file appropriate tax returns as provided by Indiana law.
All contracts under this chapter are governed by Indiana law.
Sec. 9. IC 5-22 does not apply to procurement by the
commission. The commission shall adopt rules under IC 4-22-2 for
procurement. The rules shall be designed to aid the commission in
evaluating competing proposals and selecting the proposal that
provides the greatest long term benefit to Indiana with respect to
the quality of the product or services, dependability and integrity
of the vendor, dependability of the vendor's products or service, the
security, competence, and timeliness of the vendor's products or
services, and the maximization of gross revenues and net proceeds
over the life of the contract.
Chapter 6. Conduct of Pari-Mutuel Pull Tab Games
Sec. 1. A pari-mutuel pull tab game must be owned and
operated by the commission.
Sec. 2. A pari-mutuel pull tab game must be conducted in the
following manner:
(1) Each set of pari-mutuel pull tabs must have a
predetermined:
(A) total purchase price; and
(B) amount of prizes.
(2) Randomly ordered pari-mutuel pull tabs may be
distributed from an approved location or from a distribution
device to:
(A) the commission at a permit holder's racetrack; or
(B) a terminal or device of the commission at the permit
holder's racetrack.
(3) A pari-mutuel pull tab 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. 3. (a) A person less than twenty-one (21) years of age may
not purchase a pari-mutuel pull tab.
(b) A person less than twenty-one (21) years of age may not
enter the part of a racetrack in which pari-mutuel pull tabs are
sold and redeemed unless the person is an employee of the
pari-mutuel pull tab operation.
Sec. 4. The sale price of a pari-mutuel pull tab may not exceed
ten dollars ($10).
Sec. 5. The sale, purchase, and redemption of pari-mutuel pull
tabs may occur under this article in no location other than a
racetrack operated by a permit holder.
Sec. 6. The commission may not install more than two thousand
five hundred (2,500) pari-mutuel pull tab terminals or devices on
the premises of a permit holder's racetrack.
Sec. 7. A list of prizes for winning pari-mutuel pull tabs must be
posted or displayed at a location where the pari-mutuel pull tabs
are sold.
Sec. 8. The commission may close a pari-mutuel pull tab game
at any time.
Sec. 9. A pari-mutuel pull tab terminal or device may be
operated by a player without the assistance of the commission for
the sale and redemption of pari-mutuel pull tabs.
Sec. 10. A pari-mutuel pull tab terminal or device may not
dispense coins or currency as prizes for winning pari-mutuel pull
tabs. Prizes awarded by a terminal or device must be in the form
of credits for additional play or certificates redeemable for cash or
prizes.
Chapter 7. Pari-Mutuel Pull Tab Revenues
Sec. 1. (a) The state shall retain one hundred percent (100%) of
the adjusted gross receipts received from the sale of pari-mutuel
pull tabs authorized under this article.
(b) The commission shall remit the adjusted gross receipts to the
treasurer of state before the close of the business day following the
day the pari-mutuel pull tabs are sold.
(c) The commission may make the payment required under this
section by electronic funds transfer (as defined in IC 4-8.1-2-7(f)).
Sec. 2. (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 treasurer of state shall deposit the adjusted gross
receipts remitted under section 1 of this chapter in the state pull
tab wagering fund.
(c) Money in the fund is continuously appropriated for the
purposes of this chapter.
Sec. 3. (a) Before the fifteenth day of each month, the treasurer
of state shall distribute the adjusted gross receipts deposited in the
state pull tab wagering fund in the preceding month as follows:
(1) Seventeen percent (17%) to promote horse racing for
distribution under section 4 of this chapter.
(2) Thirty-three percent (33%) to be divided in equal amounts
to each racetrack at the which the commission sells
pari-mutuel pull tabs under this article.
(3) Fifty percent (50%) shall be retained by the state and paid
as follows:
(A) To the board of managers of the capital improvement
board established under IC 36-10-9 until the sum of the
amounts transferred under this clause in a state fiscal year
equals thirty million dollars ($30,000,000).
(B) The remainder to the state general fund.
(b) The money transferred under subsection (a)(3)(A) must be
used for a stadium and convention center project undertaken by
the capital improvement board.
Sec. 4. Subject to subdivision (1)(C), the Indiana horse racing
commission shall distribute the money that is paid under section
3(a)(1) of this chapter as follows:
(1) Seventy percent (70%) for the following purposes:
(A) Forty-six percent (46%) for thoroughbred purposes as
follows:
(i) Ninety-eight and five-tenths percent (98.5%) for
thoroughbred purses.
(ii) One and two-tenths percent (1.2%) to the horsemen's
association representing thoroughbred owners and
trainers.
(iii) Three-tenths of one percent (0.3%) to the horsemen's
association representing thoroughbred owners and
breeders.
(B) Forty-six percent (46%) for standardbred purposes as
follows:
(i) Ninety-eight and five-tenths percent (98.5%) for
standardbred purses.
(ii) One and five-tenths percent (1.5%) to the horsemen's
association representing standardbred owners and
trainers.
(C) Eight percent (8%) for quarterhorse purposes as
follows:
(i) Ninety-five percent (95%) for quarterhorse purses.
(ii) Five percent (5%) to the horsemen's association
representing quarterhorse owners and trainers.
However, in the first year after the commencement of
pari-mutuel pull tab game operations under this article, the
money distributed under this clause may not exceed the
lesser of two million seven hundred thousand dollars
($2,700,000) or eight percent (8%) of the money paid under
this subdivision. If quarterhorse races average at least
seven and five-tenths (7.5) horses per gate in the first year
after the commencement of pari-mutuel pull tab game
operations or in a subsequent year, the money distributed
under this clause for quarterhorse purposes shall be
increased by ten percent (10%) in the following year.
However, the money distributed under this clause may not
exceed eight percent (8%) of the total amount of money
distributed under this subdivision. If the amount of money
distributed under this clause is less than eight percent (8%)
of the total amount of money distributed under this
subdivision in a particular year, the amounts distributed
under clauses (A) and (B) for that year shall be increased
equally in proportional amounts.
(2) Thirty percent (30%) to the breed development funds
established under IC 4-31-11-10 in the same proportion that
money is distributed for the purposes of each breed under
subdivision (1).
Chapter 8. Admissions Tax
Sec. 1. A tax is imposed on admissions to a pari-mutuel pull tab
facility authorized under this article at a rate of two dollars ($2) for
each person admitted to the pari-mutuel pull tab facility.
Sec. 2. (a) The commission shall remit admissions taxes collected
under this chapter to the department. The commission must remit
taxes each day for the preceding day's admissions.
(b) The remission of the tax under this section must be on a form
prescribed by the department.
(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 paid under this section
through electronic funds transfer, the department may allow the
commission to file a monthly report to reconcile the amount of
taxes paid to the department.
Sec. 3. The department shall deposit the taxes remitted under
this chapter in the local racetrack gaming fund established under
section 4 of this chapter.
Sec. 4. (a) The local racetrack gaming 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 treasurer of state shall establish a separate account
within the fund for each county containing a racetrack. Each
account consists of the admissions taxes collected by the
commission for admissions to the pari-mutuel facility located at the
county's racetrack and deposited into the fund under section 3 of
this chapter.
(c) Money in the fund is continuously appropriated for the
purposes of this chapter.
Sec. 5. The treasurer of state shall distribute the admissions
taxes deposited in the local racetrack gaming fund as follows:
(1) The tax revenue remitted by the commission from 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) shall be
distributed under section 6 of this chapter.
(2) The tax revenue remitted by the commission from 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) shall be distributed under section
7 of this chapter.
Sec. 6. In the case of a racetrack described in section 5(1) of this
chapter, the first two hundred thousand dollars ($200,000) of tax
revenue distributed under this section in the first calendar year
that pari-mutuel pull tab games are conducted at the racetrack
located in the county must be paid to the county treasurer for a one
(1) time distribution to a shelter for victims of domestic violence
located in the county. The first two hundred fifty thousand dollars
($250,000) of tax revenue distributed under this section in the
second calendar year that pari-mutuel pull tab games are
conducted at the racetrack located in the county must be paid to a
post secondary educational institution located in the county to
support the institution's electrical engineering programs. The first
two hundred thousand dollars ($200,000) of tax revenue distributed
in the third calendar year that pari-mutuel pull tab games are
conducted at the racetrack located in the county must be paid to
the Madison County Community Health Center. The remainder of
the tax revenues distributed under this section each year shall be
paid as follows:
(1) Twenty-five percent (25%) to the county's economic
development council for distribution under section 8 of this
chapter.
(2) Twenty-five percent (25%) to a city having a population of
more than fifty-nine thousand seven hundred (59,700) but less
than sixty-five thousand (65,000).
(3) Twenty percent (20%) to the school corporations located
in the county. The tax revenue distributed under this
subdivision must be divided among the school corporations on
a pro rata basis according to the ratio that 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.
(4) Fifteen percent (15%) to the incorporated cities and towns
located in the county other than a city described in subdivision
(2). The tax revenue distributed under this subdivision must
be divided among the cities and towns on a pro rata basis
according to the ratio that the population of each city or town
bears to the total population of the county minus the
population of a city described in subdivision (2).
(5) Fourteen and five-tenths percent (14.5%) to the capital
projects fund of the county for distribution by the county
legislative body.
(6) Five-tenths of one percent (0.5%) to the county fiscal body
for distribution to mental health and addiction service
providers located in the county.
Sec. 7. In the case of a racetrack that is described in section 5(2)
of this chapter, the tax revenues remitted by the racetrack shall be
paid as follows:
(1) Thirty-eight and five-tenths percent (38.5%) to the county.
(2) Thirty-eight and five-tenths percent (38.5%) to a city
having a population of more than seventeen thousand nine
hundred (17,900) but less than eighteen thousand one hundred
(18,100).
(3) Twenty percent (20%) to the school corporations located
in the county. The tax revenue distributed under this
subdivision must be divided among the school corporations on
a pro rata basis according to the ratio that 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.
(4) Five-tenths of one percent (0.5%) to the county fiscal body
for distribution to mental health and addiction service
providers located in the county.
(5) Two and five-tenths percent (2.5%) to a town having a
population of more than one thousand (1,000) that is located
in the county.
Sec. 8. (a) This section applies only to a county having a
population of more than one hundred thirty thousand (130,000) but
less than one hundred forty-five thousand (145,000).
(b) The county economic development council is established to
allocate admissions taxes received under section 6 of this chapter
within the county. Fifty percent (50%) of the taxes received each
year must be allocated for operations, capital improvements, and
other necessary expenditures of the certified technology park
located in the largest city in the county. The council may allocate
the remainder of the taxes received under section 6 of this chapter
each year for the following purposes:
(1) Economic development projects within the county.
(2) Assisting the Madison County Community Health Center.
(3) Assisting nonprofit organizations located in the county.
If the council determines that the certified technology park located
in the largest city in the county no longer needs the amount of
money provided under this section, the council may reallocate the
taxes for any purpose permitted by this section.
(c) The council consists of the following members:
(1) Two (2) elected officials, who must be members of different
political parties, representing the county and appointed by the
county executive.
(2) Two (2) elected officials, who must be members of different
political parties, representing the largest city in the county
and appointed by the mayor of the city.
(3) One (1) elected official from each city in the county other
than the city described in subdivision (2), appointed by the
mayor of the city.
(4) One (1) elected official from each town in the county,
appointed by the legislative body of the town.
(5) The executive dean of Ivy Tech Community
College-Anderson or the executive dean's designee.
(6) The president of Anderson University or the president's
designee.
(d) For purposes of this section, "economic development
project" means any project that would be considered an economic
development project under IC 6-3.5-7-13.1.
Sec. 9. (a) As used in this section, "political subdivision" means
a county, township, city, town, separate municipal corporation,
special taxing district, or school corporation.
(b) Money paid to a political subdivision under this chapter:
(1) must be paid to the fiscal officer of the political subdivision
and must be deposited in the political subdivision's general
fund;
(2) may not be used to reduce the political subdivision's
maximum levy under IC 6-1.1 but may be used at the
discretion of the political subdivision to reduce the property
tax levy of the political subdivision for a particular year;
(3) may be used for any purpose specified in this chapter or
for any other legal or corporate purpose of the political
subdivision, including the pledge of money to bonds, leases, or
other obligations under IC 5-1-14-4; and
(4) is considered miscellaneous revenue.
Chapter 9. Penalties
Sec. 1. A person who knowingly or intentionally aids, induces,
or causes a person who is:
(1) less than twenty-one (21) years of age; and
(2) not an employee of a pari-mutuel pull tab operation
operated under this article;
to enter or attempt to enter the pari-mutuel pull tab operation
commits a Class A misdemeanor.
Sec. 2. A person who:
(1) is not an employee of a pari-mutuel pull tab operation
operated under this article;
(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.".
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 11. This chapter does not apply
to the sale of pari-mutuel pull tab tickets authorized by IC 4-35.".