MR. PRESIDENT:
I move
that Engrossed House Bill 1004 be amended to read as follows:
Page 102, between lines 8 and 9, begin a new paragraph and insert:
"SECTION 101. IC 7.1-7 IS ADDED TO THE INDIANA CODE
AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2002]:
ARTICLE 7. ELECTRONIC GAMING IN
ESTABLISHMENTS LICENSED TO SELL ALCOHOLIC
BEVERAGES
Chapter 1. Definitions
Sec. 1. The definitions in this chapter apply throughout this
article.
Sec. 2.
"Adjusted gross receipts" means :
(1) the total of all cash and property (including checks
received by a licensee) whether collected or not, received by
a licensee from gaming 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 licensee from gaming operations.
Sec. 3. "Commission" refers to the alcohol and tobacco
commission established by
IC 7.1-2-1-1.
Sec. 4. "Electronic gaming device" means an electromechanical
device, an electrical device, or a machine that:
(1) upon payment of consideration is available to play or
operate;
(2) makes payoffs in any manner, including delivery of
premiums, merchandise, tokens, redeemable game credits, or
anything of value to the person playing the game; and
(3) is approved by the commission under this article.
Sec. 5. "Establishment" means a licensed premises that is
licensed to sell alcoholic beverages under IC 7.1-3.
Sec. 6. "Gambling operations" means the operation of
electronic gaming devices in establishments licensed under this
article.
Sec. 7. "Licensee" means a person that holds:
(1) a supplier's license; or
(2) an establishment license;
issued under
IC 7.1-7-2.
Sec. 8. "Person" has the meaning set forth in IC 7.1-1-3-31.
Sec. 9. "Supplier" means an individual or a business entity that
is licensed under this article to:
(1) distribute, sell, or lease electronic gaming devices or
associated equipment in Indiana; or
(2) own electronic gaming devices and physically place the
devices for public gaming operations at an establishment in
Indiana.
Chapter 2. Licensing
Sec. 1. The commission does not have authority to regulate
gaming devices that are operated on riverboats (as defined in
IC 4-33-2-17
).
Sec. 2. The commission may issue supplier and establishment
licenses to applicants that satisfy the requirements of this article.
Sec. 3. (a) An applicant seeking to obtain a license under this
article must submit the fee required by the commission and apply
to the commission in the manner required by the commission. The
application must include at least the following:
(1) The name and address of the applicant and of any person
holding at least a one percent (1%) interest in the applicant.
(2) The applicant's consent to credit investigations and
criminal record searches.
(3) Waivers and releases signed by the applicant that the
commission believes are necessary to ensure a full and
complete review of the application.
(b) An applicant shall furnish all information requested by the
commission, including financial data and documents,
certifications, consents, waivers, and individual histories.
Sec. 4. Criminal history record information obtained during the
investigation of an individual must be maintained by the
commission for the term of the license and for any subsequent
license term.
Sec. 5. The commission shall conduct or cause to be conducted
a background investigation of each applicant for licensure.
Sec. 6. The commission may require that an application or
other document submitted by an applicant or a licensee must be
sworn to or affirmed before a notary public.
Sec. 7. (a) The commission shall notify an applicant who is
denied a license of the specific reasons for denial. The notification
must be:
(1) in writing; and
(2) sent by certified mail.
(b) The applicant has forty-five (45) calendar days after the
date the written notice is received by the applicant under
subsection (a) to request a hearing on the denial of the license.
Sec. 8. The commission may not issue a license to an applicant
who:
(1) has knowingly made a false statement of material fact to
the commission;
(2) is found by the commission to lack the necessary financial
stability or responsibility for licensure;
(3) if an individual, is less than twenty-one (21) years of age
on the date the application is received by the commission;
(4) is on the most recent tax warrant list provided to the
commission by the department of state revenue;
(5) if an individual, has been convicted of or entered a plea of
guilty or nolo contendere to a felony in the ten (10) years
preceding the date of license application, unless the
commission determines that:
(A) the individual has been pardoned or the individual's
civil rights have been restored;
(B) after the conviction or entry of the plea, the individual
has engaged in the kind of law abiding commerce and
good citizenship that would reflect well upon the integrity
of the commission; or
(C) the individual has terminated a relationship with a
person whose actions directly contributed to the
conviction or entry of the plea;
(6) if an individual, has been convicted of or entered a plea of
guilty or nolo contendere to a violation of a gambling statute
in any jurisdiction; or
(7) fails to provide all materials requested by the commission.
However, the commission may determine that a waiver is
warranted under the circumstances for an individual described in
subdivision (6).
Sec. 9. Credit and security investigation information submitted
in connection with an application for a license under this article is
confidential and may not be disclosed except for official purposes
under this article or under a judicial order.
Sec. 10. A license issued under this article may not be
transferred without prior written approval of the commission.
Chapter 3. Powers and Duties of the Commission
Sec. 1. The commission has the following powers and duties to
administer, regulate, and enforce gambling operations:
(1) All powers and duties specified by this article.
(2) All powers necessary and proper to fully and effectively
execute and enforce this article, including the power to do the
following:
(A) Supervise and exercise jurisdiction over the following:
device to an establishment unless the establishment is licensed
under
IC 7.1-7-5.
Sec. 7. (a) A supplier's license issued under this chapter expires
one (1) year after the date of issuance.
(b) A supplier's license issued under this chapter may be
renewed for a fee and in a manner determined by the commission.
Chapter 5. Establishment License
Sec. 1. An establishment license issued under this chapter
entitles an establishment described in section 2 of this chapter to
have gambling operations on the premises of the establishment.
Sec. 2. To qualify for an establishment license, an establishment
must be licensed to sell alcoholic beverages, and the applicant
must hold:
(1) a beer retailer's permit under
IC 7.1-3-4
;
(2) a liquor retailer's permit under
IC 7.1-3-9
;
(3) a wine retailer's permit under
IC 7.1-3-14
;
(4) a horse track permit under
IC 7.1-3-17.7
that covers the
establishment; or
(5) a club, restaurant, or hotel permit under
IC 7.1-3-20.
Sec. 3. (a) For each establishment license that is issued by the
commission, the commission shall create and maintain a list of the
following:
(1) The name of the individual who signed the application for
the license.
(2) The name, address, and telephone number of the person
holding the license.
(3) The number of electronic gaming devices located at the
establishment.
(4) The serial number of each electronic gaming device
located at the establishment.
(5) The sticker numbers required under section 4(c) of this
chapter.
(b) The lists described in subsection (a) must be available for
public inspection in the offices of the commission.
Sec. 4. (a) An establishment license issued under this chapter
authorizes an establishment to have the following number of
electronic gaming devices placed in the establishment:
(1) Five (5) machines for an establishment that is licensed for
the on-premises consumption of alcoholic beverages.
(2) Ten (10) machines for a club (as defined in
IC 7.1-1-3-10
)
or a fraternal club (as defined in
IC 7.1-1-3-17
), with an
additional machine per one hundred (100) members and a
maximum of twenty (20) machines per licensed premises.
(3) Twenty (20) machines for an establishment that holds a
horse track permit under
IC 7.1-3-17.7.
(b) An establishment must pay an annual fee established under
IC 7.1-7-6
for each electronic gaming device located on the
premises of the establishment.
(c) The commission shall annually issue a sticker with a number
for each licensed electronic gaming device. The establishment
must place the sticker on each licensed electronic gaming device
in a manner determined by the commission.
(d) A person holding an establishment license may not own
more than the lesser of:
(1) the number of machines authorized to be placed in the
person's establishment under subsection (a); or
(2) twenty (20) machines.
Sec. 5. (a) An establishment license issued under this chapter
must be conspicuously displayed in the establishment.
(b) Gambling operations may not take place unless the
establishment license is conspicuously displayed in the licensed
establishment as required by subsection (a).
Sec. 6. (a) An establishment license issued under this chapter
expires one (1) year after the date of issuance.
(b) An establishment license may be renewed for a fee and in
the manner determined by the commission.
Chapter 6. Fees
Sec. 1. The commission shall adopt rules under
IC 4-22-2
to
establish fees for licenses issued under this article. The fees may
not exceed the following:
(1) Five thousand dollars ($5,000) annually for each
supplier's license.
(2) One thousand dollars ($1,000) annually for an
establishment license if the establishment has one (1)
electronic gaming device. The licensee shall pay an additional
one thousand dollars ($1,000) annually for each additional
electronic gaming device that the licensee will operate in the
establishment.
Sec. 2. Fees collected under this chapter must be deposited in
the electronic gaming fund established by
IC 7.1-7-9-2.
Sec. 3. A local governmental authority may not charge an
additional fee or charge for the licensing of suppliers or
establishments under this article.
Chapter 7. Adjusted Gross Receipts Tax
Sec. 1.
(a) A tax is imposed on the adjusted gross receipts
received from gambling operations authorized under this article
at the rate of ten percent (10%) of the amount of the adjusted
gross receipts.
(b) The licensee shall remit the tax imposed by this chapter to
the commission before the close of the business day following the
day the wagers are made.
(c) The commission may require payment under this section to
be made by electronic funds transfer (as defined in IC
4-8.1-2-
7
(e)).
(d) If the commission requires taxes to be remitted under this
chapter through electronic funds transfer, the commission may
allow the licensed owner to file a monthly report to reconcile the
amounts remitted to the commission.
Sec. 2. The commission shall deposit tax revenue collected
under this chapter in the electronic gaming fund established under
IC 7.1-7-9-2.
Chapter 8. Operation of Electronic Gaming Devices
Sec. 1. Electronic gaming devices and equipment associated
with electronic gaming devices must be maintained and serviced
in the manner and condition required by the commission.
Sec. 2. (a) An establishment licensee is responsible for keeping
a written service log in each of the electronic gaming devices. The
log must be located in the main cabinet access area of the device's
terminal.
(b) An individual, including an employee or agent of the
commission, who gains entry into any internal space of an
electronic gaming device shall sign the log and indicate the time,
date, and purpose of entry, the electronic and mechanical meter
readings, and the parts of the terminal inspected or repaired.
(c) Service log forms must be obtained from the commission
and be retained by an establishment during the time that the
electronic gaming device is being used for gambling operations
and for at least one (1) year after the electronic gaming device is
removed from service.
(d) Service logs created under this section must be available for
immediate inspection by an employee or agent of the commission
upon request.
Sec. 3. The commission may inspect an electronic gaming
device terminal before the device or terminal is placed in
operation to ensure that the electronic gaming device is in
compliance with this article and the rules of the commission.
Sec. 4. An electronic gaming device must prominently display
a table listing the available prizes and the odds of winning.
Sec. 5. An electronic gaming device must dispense to each
winning player a ticket indicating the amount won and containing:
(1) information on how to redeem the ticket for cash; and
(2) a notice that the ticket must be redeemed within the time
set forth in section 6(c) of this chapter.
Sec. 6. (a) The holder of an establishment license shall
immediately pay a winning player the amount won on an
electronic gaming device upon presentation of a winning ticket by
the player.
(b) An establishment may not pay a player for a winning ticket
from another establishment.
(c) A ticket that is not redeemed within seventy-two (72) hours
after the ticket is dispensed is void.
Sec. 7. (a) A licensee shall maintain records of the electronic
gaming devices the licensee owns. The records shall be made
available to the commission upon request and must be sufficient
to ensure that the electronic gaming device is operated in
compliance with this article and the rules of the commission.
(b) The records required under this section must be held by the
licensee during the time that each electronic gaming device is
located in Indiana and for at least one (1) year after the device is
no longer being used for gambling operations.
Sec. 8. (a) An electronic gaming device may not be operated in
a location in an establishment where a person less than twenty-one
(21) years of age has access to the device.
(b) An establishment may not allow a person less than
twenty-one (21) years of age to wager on an electronic gaming
device.
Sec. 9. (a) Except as provided in subsection (b), an
establishment licensee may not advertise or promote in any way
the presence of electronic gaming devices in an establishment.
(b) An establishment licensee may advertise electronic gaming
devices within the establishment if:
(1) the advertising cannot be viewed from outside the
establishment; and
(2) the licensee complies with the rules of the commission
concerning advertising.
Sec. 10. An establishment licensee may not include within the
name of the business the term "casino", "electronic gaming
devices", or any related term that may be identified with casino
gambling.
Sec. 11. The minimum payout percentage required of electronic
gaming devices authorized under this article is eighty percent
(80%).
Sec. 12. The minimum amount for a wager in an electronic
gaming device under this article is five cents ($0.05).
Sec. 13. The maximum amount for a wager in an electronic
gaming device under this article is six dollars and forty cents
($6.40).
Sec. 14. The maximum prize on a game played on an electronic
gaming device under this article is one thousand five hundred
dollars ($1,500).
Chapter 9. Electronic Gaming Fund and Disbursement of Fund
Money
Sec. 1. As used in this chapter, "fund" refers to the electronic
gaming fund established by section 2 of this chapter.
Sec. 2. The electronic gaming fund is established. The fund
shall be administered by the commission.
Sec. 3. (a) Expenses of administering the fund:
(1) may not exceed five percent (5%) of the total amount
collected in any fiscal year; and
(2) shall be paid from money in the fund.
(b) Money in the fund is continually appropriated to the
commission to carry out the purposes of this article.
Sec. 4. The fund consists of licensing fees deposited into the
fund under
IC 7.1-7-6-2.
Sec. 5. The treasurer of state shall invest the money in the fund
not currently needed to meet the obligations of the fund in the
same manner as other public funds may be invested. Interest that
accrues from these investments shall be deposited in the fund.
Sec. 6. The commission shall distribute annually, at the end of
a state fiscal year, after administrative expenses are paid under
section 3 of this chapter, the following:
(1) Twenty percent (20%) of the money in the fund at the end
of the state fiscal year shall be disbursed to the counties based
on the population of the counties according to the most recent
federal special or decennial census, special tabulation, or
corrected population count effective under
IC 1-1-3.5.
(2) Twenty percent (20%) of the money in the fund at the end
of the state fiscal year shall be disbursed to cities and towns
based on the population of the cities and towns according to
the most recent federal special or decennial census, special
tabulation, or corrected population count under
IC 1-1-3.5.
(3) Five percent (5%) of the money in the fund at the end of
the state fiscal year shall be disbursed to the natural
resources reclamation division fund established by IC 14-34-
14-2.
(4) Five percent (5%) of the money in the fund at the end of
the state fiscal year shall be disbursed to the oil and gas
environmental fund established by IC 14-37-10-2.
Sec. 7. Money in the fund at the end of a state fiscal year after
distributions are made under section 6 of this chapter must be
transferred to the property tax replacement fund and used to
increase the property tax replacement credit percentage under
IC 6-1.1-21
and does not revert to the state general fund.
Sec. 8. With respect to a reimbursement that the commission is
required to pay to the state or to an agency of the state, the
commission may enter into an agreement with the state or the
state agency under which the commission pays to the state or the
state agency an amount reasonably anticipated to cover
reimbursable expenses before these expenses are incurred.
Chapter 10. Crimes and Penalties
Sec. 1. A person who knowingly or intentionally tampers with
an electronic gaming device with intent to interfere with the
proper operation of the electronic gaming device commits
electronic gaming device tampering, a Class D felony.
Sec. 2. A person who knowingly or intentionally, with intent to
manipulate the outcome, payoff, or operation of an electronic
gaming device, manipulates or attempts to manipulate the
outcome, payoff, or operation of an electronic gaming device
commits electronic gaming device manipulation, a Class D felony.
Sec. 3. (a) Except as provided in subsection (b), a person who
knowingly or intentionally purchases, sells, leases, or places in an
establishment for use by the public a type of machine that is
authorized by the commission for play but that is not licensed
under this article commits unlicensed electronic gaming device
operation, a Class D felony.
(b) Subsection (a) does not apply to a coin operated machine
used for amusement only.
".
Page 125, between lines 14 and 15, begin a new paragraph
and insert:
"SECTION 126.
IC 35-45-5-11
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 11. This chapter does not apply
to gambling on electronic gaming devices licensed for use in an
establishment licensed under IC 7.1-7.
".