SB 405-22_ Filed 02/23/2010, 07:57 Ruppel


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 405 be amended to read as follows:

SOURCE: Page 6, line 24; (10)MO040526.6. -->     Page 6, between lines 24 and 25, begin a new paragraph and insert:
SOURCE: IC 4-32.2-1-1; (10)MO040526.6. -->     "SECTION 6. IC 4-32.2-1-1, AS AMENDED BY P.L.95-2008, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 1. (a) This article applies only to a qualified organization.
    (b) This article applies only to the following approved gambling events conducted as fundraising activities by qualified organizations:
        (1) Bingo events, charity game nights, door prize events, raffle events, festivals, and other gaming events approved by the commission.
        (2) The sale of pull tabs, punchboards, and tip boards:
            (A) at bingo events, charity game nights, door prize events, raffle events, and festivals conducted by qualified organizations; or
            (B) at any time on the premises owned or leased by a qualified organization and regularly used for the activities of the qualified organization.
        This article does not apply to any other sale of pull tabs, punchboards, and tip boards.
         (3) Wagering on slot machines conducted:
            (A) at any time on the premises owned or leased by a qualified organization and regularly used for the activities of the qualified organization; and
            (B) under the authority of a license issued under

IC 4-32.2-4-19.
        This article does not apply to any other slot machine operation.

    (c) This article does not apply to a promotion offer subject to IC 24-8.
    (d) This article does not apply to the following:
        (1) A type II gambling game authorized by IC 4-36.
        (2) A raffle or other gambling game authorized by IC 4-36-5-1(b).

SOURCE: IC 4-32.2-1-5; (10)MO040526.7. -->     SECTION 7. IC 4-32.2-1-5, AS ADDED BY P.L.91-2006, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 5. (a) Local governmental authority concerning the following all matters relating to the operation of bingo events, charity game nights, raffles, and door prize drawings is preempted by the state under this article. and IC 4-30
        (1) All matters relating to the operation of bingo events, charity game nights, raffles, and door prize drawings.
    (2) (b) Local governmental authority concerning all matters relating to the possession, transportation, advertising, sale, manufacture, printing, storing, or distribution of pull tabs, punchboards, or tip boards is preempted by the state under this article, IC 4-30, and IC 4-36.
     (c) Local governmental authority concerning slot machine wagering is preempted by the state under this article, IC 4-33, and IC 4-35.
    (b) (d) A county, municipality, or other political subdivision of the state may not enact an ordinance relating to the commission's operations authorized by this article.
SOURCE: IC 4-32.2-2-2; (10)MO040526.8. -->     SECTION 8. IC 4-32.2-2-2, AS ADDED BY P.L.91-2006, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 2. "Allowable event" means:
        (1) a bingo event;
        (2) a charity game night;
        (3) a raffle;
        (4) a door prize drawing;
        (5) a festival;
        (6) a sale of pull tabs, punchboards, or tip boards; or
         (7) slot machine wagering; or
        (7) (8) any other gambling event approved by the commission under this article;
conducted by a qualified organization in accordance with this article and rules adopted by the commission under this article.
SOURCE: IC 4-32.2-2-27.3; (10)MO040526.9. -->     SECTION 9. IC 4-32.2-2-27.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 27.3. "Slot machine" refers to a type of electronic gaming device approved by the Indiana gaming commission for wagering under IC 4-35.
SOURCE: IC 4-32.2-2-19; (10)MO040526.10. -->     SECTION 10. IC 4-32.2-2-19, AS ADDED BY P.L.91-2006, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 19. "Licensed supply" refers to any of the following:
        (1) Bingo cards.
        (2) Bingo boards.
        (3) Bingo sheets.
        (4) Bingo pads.
        (5) Pull tabs.
        (6) Punchboards.
        (7) Tip boards.
         (8) Slot machines.
        (8) (9) Any other supplies, devices, or equipment designed to be used in allowable events designated by rule of the commission.
SOURCE: IC 4-32.2-3-4; (10)MO040526.11. -->     SECTION 11. IC 4-32.2-3-4, AS AMENDED BY P.L.60-2009, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 4. (a) The commission has the sole authority to license entities under this article to sell, distribute, or manufacture a licensed supply. The commission may not require a person holding a supplier's license issued under IC 4-33-7 to obtain a license under this article before providing slot machines to a qualified organization licensed to conduct slot machine wagering under IC 4-32.2-4-19.
    (b) The commission may not limit the number of qualified entities licensed under subsection (a).
    (c) The commission may deny a license to an applicant for a license to sell, manufacture, or distribute licensed supplies if the commission determines that at least one (1) of the following applies with respect to the applicant:
        (1) The applicant has:
            (A) violated a local ordinance, a state or federal statute, or an administrative rule or regulation and the violation would cause the commission to determine that the applicant, a key person, or a substantial owner of the applicant is not of good moral character or reputation; or
            (B) committed any other act that would negatively impact the integrity of charity gaming in Indiana.
        (2) The applicant has engaged in fraud, deceit, or misrepresentation.
        (3) The applicant has failed to provide information required by this article or a rule adopted under this article.
SOURCE: IC 4-32.2-4-7.5; (10)MO040526.12. -->     SECTION 12. IC 4-32.2-4-7.5, AS AMENDED BY P.L.108-2009, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 7.5. (a) This section applies only to a qualified organization described in subsection (h). The commission may issue an annual charity game night license to a qualified organization if:
        (1) the provisions of this section are satisfied; and
        (2) the qualified organization:
            (A) submits an application; and
            (B) pays a fee set by the commission under IC 4-32.2-6.
    (b) The commission may hold a public hearing to obtain input on the proposed issuance of an annual charity game night license to an applicant that has never held an annual charity game night license under this article.
    (c) The first time that a qualified organization applies for an annual charity game night license, the qualified organization shall publish notice that the application has been filed by publication at least two (2) times, seven (7) days apart, as follows:
        (1) In one (1) newspaper in the county where the qualified organization is located.
        (2) In one (1) newspaper in the county where the allowable events will be conducted.
    (d) The notification required by subsection (c) must contain the following:
        (1) The name of the qualified organization and the fact that it has applied for an annual charity game night license.
        (2) The location where the charity game night events will be held.
        (3) The names of the operator and officers of the qualified organization.
        (4) A statement that any person can protest the proposed issuance of the annual charity game night license.
        (5) A statement that the commission shall hold a public hearing if ten (10) written and signed protest letters are received by the commission.
        (6) The address of the commission where correspondence concerning the application may be sent.
    (e) If the commission receives at least ten (10) protest letters, the commission shall hold a public hearing in accordance with IC 5-14-1.5. The commission shall issue a license or deny the application not later than sixty (60) days after the date of the public hearing.
    (f) A license issued under this section:
        (1) may authorize the qualified organization to conduct charity game night events on more than one (1) occasion during a period of one (1) year;
        (2) must state the locations of the permitted charity game night events;
        (3) must state the expiration date of the license; and
        (4) may be reissued annually upon the submission of an application for reissuance on the form established by the commission and upon the licensee's payment of a fee set by the commission.
    (g) Notwithstanding subsection (f)(4), the commission may hold a

public hearing for the reissuance of an annual charity game night license if at least one (1) of the following conditions is met:
        (1) An applicant has been cited for a violation of law or a rule of the commission.
        (2) The commission receives at least ten (10) protest letters concerning the qualified organization's charity game night operation.
        (3) A public hearing is considered necessary by the commission.
    (h) A qualified organization may apply for an annual charity game night license under this section if the qualified organization is:
        (1) a bona fide fraternal organization; or
        (2) a bona fide veterans organization;
that has been continuously in existence in Indiana for ten (10) years.
    (i) A facility or location may not be used for purposes of conducting an annual charity game night event on more than three (3) calendar days per calendar week regardless of the number of qualified organizations conducting an annual charity game night event at the facility or location.
     (j) A qualified organization holding an annual charity game night license may not hold a slot machine license at the same time.

SOURCE: IC 4-32.2-4-16; (10)MO040526.13. -->     SECTION 13. IC 4-32.2-4-16, AS AMENDED BY P.L.227-2007, SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 16. (a) This section applies to a gambling event that is not described in neither: any of the following:
        (1) Section 1(1) through 1(6) of this chapter. nor
        (2) IC 4-32.2-2-12(b).
         (3) Section 19 of this chapter.
    (b) The commission may issue a single event license or an annual event license to conduct a gambling event approved by the commission to a qualified organization upon the organization's submission of an application and payment of a fee determined under IC 4-32.2-6.
    (c) A single event license must:
        (1) authorize the qualified organization to conduct the gambling event at only one (1) time and location; and
        (2) state the date, beginning and ending times, and location of the gambling event.
    (d) An annual event license:
        (1) must authorize the qualified organization to conduct the events on more than one (1) occasion during a period of one (1) year;
        (2) must state the locations of the permitted events;
        (3) must state the expiration date of the license; and
        (4) may be reissued annually upon the submission of an application for reissuance on the form established by the commission and upon the licensee's payment of a fee set by the commission.
    (e) The commission may impose any condition upon a qualified organization that is issued a license to conduct a gambling event under this section.
SOURCE: IC 4-32.2-4-19; (10)MO040526.14. -->     SECTION 14. IC 4-32.2-4-19 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 19. (a) This section applies only to a qualified organization that:
        (1) is either:
            (A) a bona fide fraternal organization; or
            (B) a bona fide veterans organization; and
        (2) has been continuously in existence in Indiana for at least ten (10) years.
    (b) The commission may issue an annual slot machine license to a qualified organization if:
        (1) the provisions of this section are satisfied; and
        (2) the qualified organization:
            (A) submits an application; and
            (B) pays a fee set by the commission under IC 4-32.2-6.
    (c) The commission may hold a public hearing to obtain input on the proposed issuance of a slot machine license to an applicant that has never held a slot machine license under this article.
    (d) The first time that a qualified organization applies for a slot machine license, the qualified organization shall publish notice that the application has been filed by publication at least two (2) times, seven (7) days apart, in one (1) newspaper in the county where the qualified organization intends to conduct slot machine wagering.
    (e) The notification required by subsection (d) must contain the following:
        (1) The name of the qualified organization and the fact that it has applied for a slot machine license.
        (2) The location where the slot machines will be located.
        (3) The names of the operator and officers of the qualified organization.
        (4) A statement that any person can protest the proposed issuance of the slot machine license.
        (5) A statement that the commission shall hold a public hearing if ten (10) written and signed protest letters are received by the commission.
        (6) The address of the commission where correspondence concerning the application may be sent.
    (f) If the commission receives at least ten (10) protest letters, the commission shall hold a public hearing in accordance with IC 5-14-1.5. The commission shall issue a license or deny the application not later than sixty (60) days after the date of the public hearing.
    (g) A license issued under this section:
        (1) may authorize the qualified organization to conduct slot

machine wagering during a period of one (1) year;
        (2) must state the location of the permitted slot machines;
        (3) must state the expiration date of the license; and
        (4) may be reissued annually upon the submission of an application for reissuance on the form established by the commission and upon the licensee's payment of a fee set by the commission.
    (h) Notwithstanding subsection (g)(4), the commission may hold a public hearing for the reissuance of a slot machine license if at least one (1) of the following conditions is met:
        (1) An applicant has been cited for a violation of law or a rule of the commission.
        (2) The commission receives at least ten (10) protest letters concerning the qualified organization's slot machine operation.
        (3) A public hearing is considered necessary by the commission.
    (i) A qualified organization holding a slot machine license must conduct slot machine wagering in accordance with IC 4-32.2-5-27.
    (j) A qualified organization holding a slot machine license may not hold an annual charity game night license at the same time.

SOURCE: IC 4-32.2-5-6; (10)MO040526.15. -->     SECTION 15. IC 4-32.2-5-6, AS AMENDED BY P.L.95-2008, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 6. (a) Except as provided in IC 4-32.2-4-9, and IC 4-32.2-4-16.5, and section 27 of this chapter, a qualified organization may not conduct more than three (3) allowable events during a calendar week and not more than one (1) allowable event each day.
    (b) Except as provided in IC 4-32.2-4-9, IC 4-32.2-4-12, and IC 4-32.2-4-16.5, and section 27 of this chapter, allowable events may not be held on more than two (2) consecutive days.
    (c) A qualified organization may conduct one (1) additional festival event during each six (6) months of a calendar year.
SOURCE: IC 4-32.2-5-8; (10)MO040526.16. -->     SECTION 16. IC 4-32.2-5-8, AS AMENDED BY P.L.108-2009, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 8. (a) If a facility or location is leased for an allowable event, the rent may not be based in whole or in part on the revenue generated from the event.
    (b) Subject to the additional restrictions on the use of a facility or location that are set forth in IC 4-32.2-4-7.5(i), a facility or location may not be rented for more than three (3) days during a calendar week for an allowable event.
    (c) If personal property is leased for an allowable event, the rent may not be based in whole or in part on the revenue generated from the event.
     (d) A facility may not be leased for the sole purpose of conducting slot machine wagering under section 27 of this chapter.

A qualified organization may not conduct slot machine wagering in a leased facility unless the facility is:
        (1) in the sole possession of the qualified organization; and
        (2) regularly used for the activities of the qualified organization.

SOURCE: IC 4-32.2-5-24; (10)MO040526.17. -->     SECTION 17. IC 4-32.2-5-24, AS ADDED BY P.L.60-2009, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 24. (a) Except as provided in subsections (b) and (c) and section 27(g) of this chapter, the following apply to an allowable event:
        (1) A charity gaming patron is not required to submit to a qualified organization the patron's name, signature, driver's license number, or other identifying information.
        (2) A qualified organization is not required to obtain a patron's name, signature, driver's license number, or other identifying information.
    (b) A prize of two hundred fifty dollars ($250) or more may not be awarded to a winner of a slot machine wager or a pull tab, punchboard, or tip board game unless:
        (1) the winner provides the winner's printed name, signature, and date of birth to the qualified organization conducting the slot machine wagering or pull tab, punchboard, or tip board game; and
        (2) the qualified organization verifies the identity of the prize winner using any reasonable means the qualified organization considers necessary.
    (c) If a qualified organization is required to report a patron's gambling winnings to the Internal Revenue Service for federal income tax purposes, the winning patron shall provide the qualified organization with the information necessary to comply with all applicable state and federal tax laws.
SOURCE: IC 4-32.2-5-25; (10)MO040526.18. -->     SECTION 18. IC 4-32.2-5-25, AS ADDED BY P.L.60-2009, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 25. (a) Except as provided in subsection subsections (b) and (c), a qualified organization shall obtain licensed supplies from an entity licensed by the commission as a manufacturer or distributor.
    (b) Subsection (a) does not apply to a reusable licensed supply:
        (1) constructed, purchased, or otherwise obtained by a qualified organization before January 1, 2009; or
        (2) borrowed at any time from another qualified organization.
     (c) A qualified organization shall obtain slot machines from a person holding a supplier's license issued under IC 4-33-7.
SOURCE: IC 4-32.2-5-27; (10)MO040526.19. -->     SECTION 19. IC 4-32.2-5-27 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 27. (a) As used in this section,

"licensee" means a qualified organization that:
        (1) is either:
            (A) a bona fide fraternal organization; or
            (B) a bona fide veterans organization;
        (2) has been continuously in existence in Indiana for at least ten (10) years; and
        (3) holds a license issued under IC 4-32.2-4-19.
    (b) As used in this section, "net proceeds" means:
        (1) the amount of the licensee's adjusted gross receipts from slot machine wagering (as determined under IC 4-32.2-11); minus
        (2) the sum of the following expenses attributable to slot machine wagering:
            (A) License fees incurred to obtain or renew a slot machine license under IC 32.2-4-19.
            (B) Costs incurred to acquire or maintain the licensee's slot machines.
    (c) A licensee may conduct slot machine wagering in accordance with this section. Wagering on slot machines may be conducted at any time on the premises that is:
        (1) owned or leased by the licensee;
        (2) in the sole possession of the licensee; and
        (3) regularly used for the activities of the licensee.
    (d) The maximum number of slot machines that a licensee may install is:
        (1) two (2), in the case of a licensee that has fewer than two hundred fifty (250) members;
        (2) three (3), in the case of a licensee that has at least two hundred fifty (250) but not more than three hundred ninety-nine (399) members;
        (3) four (4), in the case of a licensee that has at least four hundred (400) but not more than five hundred forty-nine (549) members; and
        (4) five (5), in the case of a licensee that has at least five hundred fifty (550) members.
    (e) Slot machine wagering may not be offered to the general public. A licensee shall ensure that each slot machine possessed by the licensee is inaccessible to the general public.
    (f) Only a member of the licensee is permitted to wager on a slot machine located on the licensee's premises. For purposes of this section, an individual is considered a member of the licensee if the individual is a member of:
        (1) another chapter, lodge, or post of a national organization of which the licensee is an affiliate;
        (2) the licensee's auxiliary; or
        (3) an organization affiliated with the licensee in which the membership consists of individuals who are:


            (A) relatives of the licensee's members; and
            (B) ineligible to join the licensee or the licensee's auxiliary.
    (g) An individual must present identification and proof of the individual's membership in the licensee to obtain permission to wager on a slot machine located on the licensee's premises.
    (h) A licensee that conducts slot machine wagering under this section is subject to the slot machine wagering tax imposed under IC 4-32.2-11.
    (i) A licensee may not expend more than forty percent (40%) of the licensee's net proceeds on the licensee's operating expenses. A licensee must expend at least sixty percent (60%) of the licensee's net proceeds on charitable activities that benefit both members of the licensee and nonmembers, including:
        (1) scholarship programs;
        (2) youth programs;
        (3) community service projects; and
        (4) supporting other charitable organizations.

SOURCE: IC 4-32.2-6-2; (10)MO040526.20. -->     SECTION 20. IC 4-32.2-6-2, AS ADDED BY P.L.91-2006, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 2. (a) Subject to subsections (b) and (c), the commission shall establish an initial license fee schedule. However,
     (b) Except as provided in subsection (c), the license fee that is charged to a qualified organization in the first year that the qualified organization applies for a license may not exceed fifty dollars ($50).
     (c) This subsection applies only to an applicant for a slot machine license under IC 4-32.2-4-19. The license fee that is charged to a qualified organization in the first year that the qualified organization applies for a license equals the product of:
        (1) two hundred dollars ($200); multiplied by
        (2) the number of slot machines installed on the premises of the qualified organization.

SOURCE: IC 4-32.2-8-1; (10)MO040526.21. -->     SECTION 21. IC 4-32.2-8-1, AS AMENDED BY P.L.227-2007, SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 1. (a) This section does not apply to:
        (1) a violation of IC 4-32.2-5-27; or
        (2) any of the following violations committed by a qualified organization with respect to slot machine wagering conducted under IC 4-32.2-5-27:
            (A) Failure to accurately account for a licensed supply.
            (B) Failure to accurately account for the proceeds of slot machine wagering.
            (C) Commission of a fraud, deceit, or misrepresentation.
            (D) Conduct prejudicial to public confidence in the commission.

    (a) (b) The commission may suspend or revoke the license of or levy a civil penalty against a qualified organization, a manufacturer, a distributor, or an individual under this article for any of the following:
        (1) Violation of:
            (A) a provision of this article, IC 35-45-5-3, IC 35-45-5-3.5, IC 35-45-5-4, or a rule of the commission; or
            (B) any other local ordinance, state or federal statute, or administrative rule or regulation that would cause the commission to determine that the person is not of good moral character or reputation.
        (2) Failure to accurately account for a licensed supply.
        (3) Failure to accurately account for sales proceeds from an event or activity licensed or permitted under this article.
        (4) Commission of a fraud, deceit, or misrepresentation.
        (5) Conduct prejudicial to public confidence in the commission.
    (b) (c) If a violation is of a continuing nature, the commission may impose a civil penalty upon a licensee or an individual for each day the violation continues.
    (c) (d) For purposes of subsection (a), (b), a finding that a person has violated IC 35-45-5-3, IC 35-45-5-3.5, or IC 35-45-5-4 must be supported by a preponderance of the evidence.
SOURCE: IC 4-32.2-8-1.5; (10)MO040526.22. -->     SECTION 22. IC 4-32.2-8-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 1.5. (a) This section applies only to:
        (1) a violation of IC 4-32.2-5-27; or
        (2) any of the following violations committed by a qualified organization with respect to slot machine wagering conducted under IC 4-32.2-5-27:
            (A) Failure to accurately account for a licensed supply.
            (B) Failure to accurately account for the proceeds of slot machine wagering.
            (C) Commission of a fraud, deceit, or misrepresentation.
            (D) Conduct prejudicial to public confidence in the commission.

     (b) The commission may suspend or revoke any license issued under this article to a qualified organization that commits a violation described in subsection (a).
     (c) In addition to imposing a penalty described in subsection (b), the commission shall do the following:
        (1) Revoke the qualified organization's slot machine license.
        (2) Cause all slot machines to be removed from the premises of the qualified organization.
        (3) Require the qualified organization to forfeit an amount equal to the product of:
            (A) the qualified organization's total adjusted gross receipts for the twelve (12) months preceding the date of the violation; multiplied by
            (B) sixty-five percent (65%).

SOURCE: IC 4-32.2-9-2; (10)MO040526.23. -->     SECTION 23. IC 4-32.2-9-2, AS AMENDED BY P.L.227-2007,

SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 2. An employee of the commission may do any of the following:
        (1) Investigate an alleged violation of this article.
        (2) Arrest an alleged violator of this article.
        (3) Enter upon the following premises for the performance of the employee's lawful duties:
            (A) A location where a bingo event, charity game night, festival event, raffle, door prize drawing, or other charity gambling event licensed under IC 4-32.2-4-16 is being conducted.
            (B) A location where pull tabs, tip boards, or punchboards are being purchased, sold, manufactured, printed, or stored.
             (C) A location where a qualified organization conducts slot machine wagering.
        (4) Take necessary equipment from the premises for further investigation.
        (5) Obtain full access to all financial records of the entity upon request.
        (6) If there is a reason to believe that a violation has occurred, search and inspect the premises where the violation is alleged to have occurred or is occurring. A search under this subdivision may not be conducted unless a warrant has first been obtained by the executive director. A contract entered into by the executive director may not include a provision allowing for warrantless searches. A warrant may be obtained in the county where the search will be conducted or in Marion County.
        (7) Seize or take possession of:
            (A) papers;
            (B) records;
            (C) tickets;
            (D) currency; or
            (E) other items;
        related to an alleged violation.

SOURCE: IC 4-32.2-11; (10)MO040526.24. -->     SECTION 24. IC 4-32.2-11 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]:
     Chapter 11. Qualified Organization Slot Machine Wagering Tax
    Sec. 1. As used in this chapter, "adjusted gross receipts" means:
        (1) the total of all cash and property (including checks received by a qualified organization) whether collected or not, received by a qualified organization from the qualified organization's slot machine operations; minus
        (2) the total of:
            (A) all cash paid out as winnings to patrons; and
            (B) uncollectible gaming receivables, not to exceed the

lesser of:
                (i) a reasonable provision for uncollectible patron checks received from gaming operations; or
                (ii) two percent (2%) of the total of all sums, including checks, whether collected or not, less the amount paid out as winnings to patrons.
For purposes of this section, a counter or personal check that is invalid or unenforceable under this article is considered cash received by the qualified organization from its slot machine operations.
    Sec. 2. (a) A tax is imposed on the adjusted gross receipts received from slot machine wagering authorized by a license issued under IC 4-32.2-4-19 at the rate of thirty-five percent (35%) of the amount of the adjusted gross receipts.
    (b) A qualified organization shall remit the tax imposed by this section to the department before the close of the business day following the day the wagers are made.
    (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 qualified organization to file a monthly report to reconcile the amounts remitted to the department.
    (e) The payment of the tax under this section must be on a form prescribed by the department.
    Sec. 3. The department shall deposit tax revenue collected under section 2 of this chapter in the state general fund.
".

SOURCE: Page 17, line 13; (10)MO040526.17. -->     Page 17, between lines 13 and 14, begin a new paragraph and insert:
SOURCE: IC 4-33-7-2; (10)MO040526.44. -->     "SECTION 44. IC 4-33-7-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 2. (a) A person holding a supplier's license may sell, lease, and contract to sell or lease gambling equipment and supplies to:
         (1) a licensee or an operating agent involved in the ownership or management of riverboat gambling operations;
         (2) a permit holder authorized to conduct gambling games under IC 4-35; or
        (3) a qualified organization licensed under IC 4-32.2-4-19 to conduct slot machine wagering.

    (b) Gambling supplies and equipment may not be distributed unless the gambling supplies and equipment conform to standards adopted by the commission.
SOURCE: IC 4-33-7-7; (10)MO040526.45. -->     SECTION 45. IC 4-33-7-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 7. Gambling equipment, devices, and supplies that are provided by a supplier may be:
        (1) repaired:
             (A) on a riverboat;
             (B) at a facility at which gambling games at racetracks are conducted; or
             (C) on the premises of a qualified organization that is licensed under IC 4-32.2-4-19 to conduct slot machine wagering; or
        (2) removed for repair from the riverboat a facility described in subdivision (1) to a facility owned by:
             (A) a licensed owner or an operating agent;
            (B) a permit holder (as defined in IC 4-31-2-14); or

             (C) a qualified organization described in subdivision (1)(C).".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 405 as printed February 19, 2010.)

________________________________________

Representative Ruppel


MO040526/DI 92     2010