Introduced Version
HOUSE BILL No. 1556
_____
DIGEST OF INTRODUCED BILL
Citations Affected:
IC 4-30-8-9
; IC 4-32.
Synopsis: Charity gaming and lottery. Requires the procurement rules
of the lottery commission to give preference to Indiana vendors. Voids
certain proposed rules regarding charity gaming. Incorporates certain
rules by reference into statute. Requires qualified organizations to use
at least 5% of the organization's charity gaming gross receipts for the
organization's charitable purposes. Specifies that the gaming card
excise tax is imposed upon distributors. Allows the advertising of
charity gaming events through out of state media outlets. Prohibits
suppliers from becoming involved in an allowable event in any other
capacity. Prohibits qualified organizations from entering agreements
with affiliated persons. Makes other changes concerning the licensing
of qualified organizations.
Effective: Upon passage; July 1, 2003.
Liggett, Whetstone, Adams T
January 16, 2003, read first time and referred to Committee on Public Policy, Ethics and
Veterans Affairs.
Introduced
First Regular Session 113th General Assembly (2003)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
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between statutes enacted by the 2002 Regular or Special Session of the General Assembly.
HOUSE BILL No. 1556
A BILL FOR AN ACT to amend the Indiana Code concerning
gaming.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-30-8-9; (03)IN1556.1.1. -->
SECTION 1.
IC 4-30-8-9
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 9. (a) IC 5-22 does not apply
to procurement by the commission.
(b) 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, security,
competence, timeliness, and maximization of gross revenues and net
proceeds over the life of the contract.
(c) The rules adopted under subsection (b) must give preference
to the proposals offering the products and services of vendors
located in Indiana who meet the criteria set forth in subsection (b).
SOURCE: IC 4-32-7-3; (03)IN1556.1.2. -->
SECTION 2.
IC 4-32-7-3
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3.
(a) The department may
adopt rules under
IC 4-22-2
for the establishment, implementation, and
operation of allowable events or to ensure that the allowable events are
consistently operated in a fair and honest manner.
(b) The department may not adopt rules imposing restrictions
upon the manufacture or distribution of charity gaming supplies
and equipment that are in addition to the requirements of this
article.
SOURCE: IC 4-32-8-5; (03)IN1556.1.3. -->
SECTION 3.
IC 4-32-8-5
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. IC 4-21.5 applies to protests and
hearings under this article.
SOURCE: IC 4-32-9-3; (03)IN1556.1.4. -->
SECTION 4.
IC 4-32-9-3
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 3. (a) A qualified organization is
not required to obtain a license from the department if the value of all
prizes awarded at the bingo event, charity game night, raffle event, or
door prize event, including prizes from pull tabs, punchboards, and tip
boards, does not exceed one thousand dollars ($1,000) for a single
event and not more than three thousand dollars ($3,000) during a
calendar year.
(b) A qualified organization described in subsection (a) that plans
to hold a bingo event more than one (1) time a year shall send an
annual written notice to the department informing the department of the
following:
(1) The estimated frequency of the planned bingo events.
(2) The location or locations where the qualified organization
plans to hold the bingo events.
(3) The estimated amount of revenue expected to be generated by
each bingo event.
(c) The notice required under subsection (b) must be filed before the
earlier of the following:
(1) March 1 of each year.
(2) One (1) week before the qualified organization holds the first
bingo event of the year.
(d) A qualified organization described in subsection (a) shall
maintain accurate records of all financial transactions of an event
conducted under this section. The department may inspect records kept
in compliance with this section.
(e) A qualified organization may not conduct an allowable event
under this section if the qualified organization's license is
suspended or revoked under section 16 of this chapter.
SOURCE: IC 4-32-9-4; (03)IN1556.1.5. -->
SECTION 5.
IC 4-32-9-4
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Each organization
applying for a bingo license, special bingo license, charity game night
license, raffle license, door prize drawing license, or festival license
must submit to the department a written application on a form
prescribed by the department.
(b) The application must include the information that the
department requires, including the following:
(1) The name and street address of the organization.
(2) The names and street addresses of the officers of the
organization.
(3) The type of event the organization proposes to conduct.
(4) The location at which the organization will conduct the bingo
event, charity game night, raffle event, door prize event, or
festival.
(5) The dates and times for the proposed bingo event or events,
charity game night, raffle event, door prize event, or festival.
(6) Sufficient facts relating to the organization or the
organization's incorporation or founding to enable the department
to determine whether the organization is a qualified organization.
(7) The name and street address of each proposed operator and
sufficient facts relating to the proposed operator to enable the
department to determine whether the proposed operator is
qualified to serve as an operator.
(8) A sworn statement signed by the presiding officer and
secretary of the organization attesting to the eligibility of the
organization for a license, including the nonprofit character of the
organization.
(9) Any other information considered necessary by the
department.
(c) The department may not accept an application containing a
post office box address rather than a street address required under
this section.
SOURCE: IC 4-32-9-16; (03)IN1556.1.6. -->
SECTION 6.
IC 4-32-9-16
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 16.
The department
may, by rule, set the allowable expenditures of a qualified organization
with respect to an allowable event. All net proceeds from an allowable
event and related activities may only be used for the lawful purposes
of the qualified organization. (a) A qualified organization must use
at least five percent (5%) of the qualified organization's gross
receipts from an allowable event for:
(1) the lawful religious, charitable, community, or educational
purposes for which the qualified organization is specifically
chartered or organized; or
(2) the expenses relating to the acquisition, construction,
maintenance, or repair of any interest in real property
involved in the operation of the qualified organization and
used for the lawful religious, charitable, community, or
educational purposes of the qualified organization.
(b) Except as provided in subsection (c), the department shall
suspend, for six (6) months, all licenses issued under this article to
a qualified organization that fails to meet the requirements of
subsection (a).
(c) If a qualified organization is within one percent (1%) of the
minimum use of proceeds requirement set forth in subsection (a)
for a particular state fiscal year, the qualified organization may
request the department's permission to make up the total dollar
amount of the deficiency in the following state fiscal year. If the
department approves the qualified organization's request:
(1) the qualified organization's license may not be suspended
under subsection (b); and
(2) the total dollar amount of the deficiency is added to the
percentage required under subsection (a) for the following
state fiscal year.
(d) If a qualified organization described in subsection (c) fails to
meet the minimum use of proceeds requirement determined under
subsection (c) in the following subsequent state fiscal year, the
department shall revoke all licenses issued to the qualified
organization under this article and prohibit the qualified
organization from applying for a new license for at least one (1)
year.
SOURCE: IC 4-32-9-35; (03)IN1556.1.7. -->
SECTION 7.
IC 4-32-9-35
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 35. (a) Except to the extent that the rule
conflicts with a statute, the following are incorporated by reference
into this section:
(1) 45 IAC 18-3-2 (as in effect January 1, 2002).
(2) 45 IAC 18-4-1 (as in effect January 1, 2002).
(3) 45 IAC 18-4-2 (as in effect January 1, 2002).
(4) 45 IAC 18-5-2 (as in effect January 1, 2002).
(b) The publisher of the Indiana Administrative Code may
continue to publish the following in the Indiana Administrative
Code:
(1) 45 IAC 18-3-2 (as in effect January 1, 2002).
(2) 45 IAC 18-4-1 (as in effect January 1, 2002).
(3) 45 IAC 18-4-2 (as in effect January 1, 2002).
(4) 45 IAC 18-5-2 (as in effect January 1, 2002).
(c) The following rules, each as amended by LSA Document
#2-40, are void:
(1) 45 IAC 18-3-2.
(2) 45 IAC 18-4-1.
(3) 45 IAC 18-4-2.
(4) 45 IAC 18-5-2.
(d) The following rules, each as added by LSA Document #2-40,
are void:
(1) 45 IAC 18-3-7.
(2) 45 IAC 18-7-1.
(3) 45 IAC 18-8-3.
(4) 45 IAC 18-8-4.
(5) 45 IAC 18-8-5.
(6) 45 IAC 18-8-6.
(7) 45 IAC 18-8-7.
(8) 45 IAC 18-8-8.
(9) 45 IAC 18-8-9.
SOURCE: IC 4-32-9-36; (03)IN1556.1.8. -->
SECTION 8.
IC 4-32-9-36
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 36. A qualified organization may advertise
a qualified event through a media outlet located outside Indiana.
SOURCE: IC 4-32-9-37; (03)IN1556.1.9. -->
SECTION 9.
IC 4-32-9-37
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 37. (a) As used in this section, "affiliated
person" means:
(1) a member of the qualified organization;
(2) an officer of the qualified organization;
(3) a director of the qualified organization; or
(4) a member of the immediate family of an individual listed
in subdivisions (1) through (3).
(b) A qualified organization may not enter into a formal or
informal agreement with an affiliated person for any purpose.
SOURCE: IC 4-32-9-38; (03)IN1556.1.10. -->
SECTION 10.
IC 4-32-9-38
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 38. The:
(1) officers;
(2) employees; or
(3) agents;
of a manufacturer or distributor of charity gaming supplies or
equipment may not become involved in the charity gaming
operations of a qualified organization in any capacity other than
through the sale or lease of charity gaming supplies or equipment.
SOURCE: IC 4-32-12-5; (03)IN1556.1.11. -->
SECTION 11.
IC 4-32-12-5
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. If an organization makes an application
for a charity gaming license and after investigation by the
department the application is denied because the organization has
violated:
(1)
IC 4-32-9-15
;
(2)
IC 4-32-9-23
;
(3)
IC 4-32-9-25
;
(4)
IC 4-32-9-26
;
(5)
IC 4-32-9-28
; or
(6)
IC 4-32-9-29
;
the organization may not reapply for a charity gaming license for
a period of one (1) year after the date of the latest of the denial by
the department, the exhaustion of the organization's administrative
remedies, or the resolution of a resulting legal action.
SOURCE: IC 4-32-15-1; (03)IN1556.1.12. -->
SECTION 12.
IC 4-32-15-1
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. An excise tax is
imposed on the distribution of pull tabs, punchboards, and tip boards
in the amount of ten percent (10%) of the wholesale price for paid by
the qualified organization that purchases the pull tabs, punchboards,
and tip boards.
SOURCE: IC 4-32-15-2; (03)IN1556.1.13. -->
SECTION 13.
IC 4-32-15-2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. A licensed entity
supplying distributing pull tabs, punchboards, or tip boards under this
article is liable for the tax. The tax is imposed at the time the licensed
entity:
(1) brings or causes the pull tabs, punchboards, or tip boards to be
brought into Indiana for distribution;
(2) manufactures distributes pull tabs, punchboards, or tip boards
in Indiana; for distribution; or
(3) transports pull tabs, punchboards, or tip boards to qualified
organizations in Indiana for resale by those qualified
organizations.
SOURCE: ; (03)IN1556.1.14. -->
SECTION 14.
An emergency is declared for this act.