Citations Affected: IC 4-31; IC 4-33; IC 4-35; IC 6-8.1; IC 7.1-3;
IC 7.1-5; IC 35-45; noncode.
Synopsis: Race tracks. Requires 160 live racing days each year.
Provides that the horse racing commission may not issue more than two
recognized meeting permits. Authorizes slot machines at racetracks.
Imposes an initial license fee of $100,000,000. Limits a permit holder
who offers slot machines to the number of satellite facility licenses
issued to the permit holder before January 1, 2007. Requires a
racetrack to annually devote at least 15% of the adjusted gross receipts
from slot machine wagering at the racetrack to horse racing purses.
Imposes a wagering tax of 37.5% on the licensee's adjusted gross
receipts. Reduces the supplemental distribution paid to the horse racing
commission in state fiscal years ending before July 1, 2009, and
eliminates the supplemental distribution after June 30, 2009. Provides
that an operating agent is entitled to a daily credit against the riverboat
wagering tax equal to the admissions tax remitted by the operating
agent for that day. Allows a slot machine facility to be licensed under
the alcoholic beverage laws under the same conditions as a riverboat.
Provides for revenue sharing. Provides requirements for contracting
with minority and women's business enterprises. Prohibits local
development agreements between the permit holders who operate slot
machine facilities and political subdivisions. Authorizes the possession
of an antique slot machine that is used for decorative, historic, or
nostalgic purposes.
Effective: Upon passage; July 1, 2007.
January 17, 2007, read first time and referred to Committee on Rules and Legislative
Procedures.
February 1, 2007, reassigned to Committee on Public Policy.
February 15, 2007, amended, reported _ Do Pass. Recommitted to Committee on Ways
and Means.
February 20, 2007, amended, reported _ Do Pass.
February 22, 2007, read second time, amended, ordered engrossed.
A BILL FOR AN ACT to amend the Indiana Code concerning
gaming and to make an appropriation.
by IC 5-3-1.
(b) The county fiscal body may:
(1) require in the ordinance adopted by the county fiscal body that
before applications under IC 4-31-5 to conduct pari-mutuel
wagering on horse races at racetracks in the county may be filed,
the voters of the county must approve the conducting of horse
racing meetings in the county under section 3 of this chapter; or
(2) amend an ordinance already adopted by the county fiscal body
to require that before applications under IC 4-31-5 to conduct
pari-mutuel wagering on horse races at racetracks in the county
may be filed, the voters of the county must approve the
conducting of horse racing meetings in the county under section
3 of this chapter.
An ordinance adopted under this section may not be amended to apply
to a person who has already been issued a permit under IC 4-31-5
before amendment of the ordinance.
(c) An ordinance adopted under this section authorizing a
person to conduct pari-mutuel wagering on horse races at
racetracks in the county may not be adopted or amended in a
manner that restricts a person's ability to conduct gambling games
under IC 4-35. An ordinance adopted by the county fiscal body
permitting slot machines in the county is not a prerequisite for the
lawful operation of slot machines under IC 4-35.
a recognized meeting may not be conducted after December 10 of a
calendar year.
(b) The commission shall require at least one hundred sixty
(160) live racing days each calendar year at the racetrack
designated in a permit holder's permit, as follows:
(1) One hundred (100) live racing days must be for
standardbreds.
(2) Sixty (60) live racing days must be for horses that are:
(A) mounted by jockeys; and
(B) run on a course without jumps or obstacles.
The requirements of this subsection are a continuing condition for
maintaining the permit holder's permit. However, the
requirements do not apply if the commission determines that the
permit holder is prevented from conducting live horse racing as a
result of a natural disaster or another event over which the permit
holder has no control.
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) A permit holder licensed to conduct gambling games under
IC 4-35 is limited to the number of satellite facility licenses issued
to the permit holder before January 1, 2007.
racetrack as permitted by IC 4-35.
(b) Except as provided in section 7 of this chapter and IC 4-31-5.5,
the pari-mutuel system of wagering may not be conducted on any races
except the races at the racetrack, grounds, or enclosure for which the
person holds a permit.
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 (k) and section 7 of this
chapter, 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.
(d) With respect to tax revenue collected from a riverboat that
operates from a county having a population of more than four hundred
thousand (400,000) but less than seven hundred thousand (700,000),
the treasurer of state shall quarterly pay the following amounts:
(1) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the city in which the riverboat is docked.
(2) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county in which the riverboat is docked.
(3) Except as provided in subsection (k), nine cents ($0.09) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county convention and visitors bureau or
promotion fund for the county in which the riverboat is docked.
(4) Except as provided in subsection (k), one cent ($0.01) of the
admissions tax collected by the licensed owner for each person:
(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;
revenue deposited in the state gaming fund under this chapter to the
following:
(1) The first thirty-three million dollars ($33,000,000) of tax
revenues collected under this chapter shall be set aside for
revenue sharing under subsection (e).
(2) Subject to subsection (c), twenty-five percent (25%) of the
remaining tax revenue remitted by each licensed owner shall be
paid:
(A) to the city that is designated as the home dock of the
riverboat from which the tax revenue was collected, in the case
of:
(i) a city described in IC 4-33-12-6(b)(1)(A); or
(ii) a city located in a county having a population of more
than four hundred thousand (400,000) but less than seven
hundred thousand (700,000); or
(B) to the county that is designated as the home dock of the
riverboat from which the tax revenue was collected, in the case
of a riverboat whose home dock is not in a city described in
clause (A).
(3) Subject to subsection (d), the remainder of the tax revenue
remitted by each licensed owner shall be paid to the property tax
replacement fund. In each state fiscal year, the treasurer of state
shall make the transfer required by this subdivision not later than
the last business day of the month in which the tax revenue is
remitted to the state for deposit in the state gaming fund.
However, if tax revenue is received by the state on the last
business day in a month, the treasurer of state may transfer the tax
revenue to the property tax replacement fund in the immediately
following month.
(b) This subsection applies only to tax revenue remitted by an
operating agent operating a riverboat in a historic hotel district. After
funds are appropriated under section 4 of this chapter, each month the
treasurer of state shall distribute the tax revenue deposited in the state
gaming fund under this chapter as follows:
(1) Thirty-seven and one-half percent (37.5%) shall be paid to the
property tax replacement fund established under IC 6-1.1-21.
(2) Thirty-seven and one-half percent (37.5%) shall be paid to the
West Baden Springs historic hotel preservation and maintenance
fund established by IC 36-7-11.5-11(b). However, at any time the
balance in that fund exceeds twenty million dollars
($20,000,000), the amount described in this subdivision shall be
paid to the property tax replacement fund established under
IC 6-1.1-21.
(3) Five percent (5%) shall be paid to the historic hotel
preservation commission established under IC 36-7-11.5.
(4) Ten percent (10%) 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.
(5) Ten percent (10%) 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
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.
(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).
(c) For each city and county receiving money under subsection
(a)(2), the treasurer of state shall determine the total amount of money
paid by the treasurer of state to the city or county during the state fiscal
year 2002. The amount determined is the base year revenue for the city
or county. The treasurer of state shall certify the base year revenue
determined under this subsection to the city or county. The total
amount of money distributed to a city or county under this section
during a state fiscal year may not exceed the entity's base year revenue.
For each state fiscal year, the treasurer of state shall pay that part of the
riverboat wagering taxes that:
(1) exceeds a particular city's or county's base year revenue; and
(2) would otherwise be due to the city or county under this
section;
to the property tax replacement fund instead of to the city or county.
(d) Each state fiscal year the treasurer of state shall transfer from the
tax revenue remitted to the property tax replacement fund under
subsection (a)(3) to the build Indiana fund an amount that when added
to the following may not exceed two hundred fifty million dollars
($250,000,000):
(1) Surplus lottery revenues under IC 4-30-17-3.
(2) Surplus revenue from the charity gaming enforcement fund
under IC 4-32.2-7-7.
(3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
The treasurer of state shall make transfers on a monthly basis as needed
to meet the obligations of the build Indiana fund. If in any state fiscal
year insufficient money is transferred to the property tax replacement
fund under subsection (a)(3) to comply with this subsection, the
treasurer of state shall reduce the amount transferred to the build
Indiana fund to the amount available in the property tax replacement
fund from the transfers under subsection (a)(3) for the state fiscal year.
(e) Before August 15 of each year, the treasurer of state shall
distribute the wagering taxes set aside for revenue sharing under
subsection (a)(1) to the county treasurer of each county that does not
have a riverboat or a racetrack that offers slot machine wagering
under IC 4-35 according to the ratio that the county's population bears
to the total population of the counties that do not have a riverboat or a
racetrack that offers slot machine wagering under IC 4-35. Except
as provided in subsection (h), the county auditor shall distribute the
money received by the county under this subsection as follows:
(1) To each city located in the county according to the ratio the
city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio the
town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are
made, the remainder shall be retained by the county.
(f) Money received by a city, town, or county under subsection (e)
or (h) may be used for any of the following purposes:
(1) To reduce the property tax levy of the city, town, or county for
a particular year (a property tax reduction under this subdivision
does not reduce the maximum levy of the city, town, or county
under IC 6-1.1-18.5).
(2) For deposit in a special fund or allocation fund created under
IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and
IC 36-7-30 to provide funding for additional credits for property
tax replacement in property tax increment allocation areas or debt
repayment.
(3) To fund sewer and water projects, including storm water
management projects.
(4) For police and fire pensions.
(5) To carry out any governmental purpose for which the money
is appropriated by the fiscal body of the city, town, or county.
Money used under this subdivision does not reduce the property
tax levy of the city, town, or county for a particular year or reduce
the maximum levy of the city, town, or county under
IC 6-1.1-18.5.
(g) This subsection does not apply to an entity receiving money
under IC 4-33-12-6(c). Before September 15 of each year, the treasurer
of state shall determine the total amount of money distributed to an
entity under IC 4-33-12-6 during the preceding state fiscal year. If the
treasurer of state determines that the total amount of money distributed
to an entity under IC 4-33-12-6 during the preceding state fiscal year
was less than the entity's base year revenue (as determined under
IC 4-33-12-6), the treasurer of state shall make a supplemental
distribution to the entity from taxes collected under this chapter and
deposited into the property tax replacement fund. Except as provided
in subsection (i), the amount of the an entity's supplemental
distribution is equal to:
(1) the entity's base year revenue (as determined under
IC 4-33-12-6); minus
(2) the sum of:
(A) the total amount of money distributed to the entity during
the preceding state fiscal year under IC 4-33-12-6; plus
(B) any amounts deducted under IC 6-3.1-20-7.
(h) This subsection applies only to a county containing a
consolidated city. The county auditor shall distribute the money
received by the county under subsection (e) as follows:
(1) To each city, other than a consolidated city, located in the
county according to the ratio that the city's population bears to the
total population of the county.
(2) To each town located in the county according to the ratio that
the town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are
made, the remainder shall be paid in equal amounts to the
consolidated city and the county.
(i) This subsection applies only to the Indiana horse racing
commission. For a state fiscal year ending before July 1, 2009, the
amount of the Indiana horse racing commission's supplemental
distribution under subsection (g) must be reduced by the amount
required to comply with IC 4-33-12-7(a). For a state fiscal year
beginning after June 30, 2009, the Indiana horse racing
commission is not entitled to a supplemental distribution under
subsection (g).
this article and deposit the penalties in the state general fund.
(5) Approve the design, appearance, aesthetics, and
construction of slot machine facilities authorized under this
article.
Sec. 3. The commission shall adopt rules under IC 4-22-2 for the
following purposes:
(1) Administering this article.
(2) Establishing the conditions under which gambling games
at racetracks may be conducted.
(3) Providing for the prevention of practices detrimental to
the public interest.
(4) Establishing rules concerning the inspection of gambling
game facilities at racetracks and the review of the licenses
necessary to conduct gambling games under this article.
(5) Imposing penalties for noncriminal violations of this
article.
Sec. 4. The commission shall be present through the
commission's gaming agents during the time gambling games are
being conducted at a racetrack to do the following:
(1) Certify the revenue received by a racetrack from gambling
games.
(2) Receive complaints from the public concerning the
operation of gambling games.
(3) Conduct other investigations into the conduct of the
gambling games and the maintenance of the equipment that
the commission considers necessary and proper.
Sec. 5. The commission shall employ gaming agents to perform
duties imposed by this article. A licensee shall, under rules adopted
by the commission under IC 4-22-2, reimburse the commission for:
(1) training expenses incurred to train gaming agents;
(2) salaries and other expenses of staff required to support the
gaming agents; and
(3) salaries and other expenses of the gaming agents required
to be present during the time gambling games are being
conducted at a racetrack.
Sec. 6. The commission may enter into a contract with the
Indiana horse racing commission for the provision of services
necessary to administer this article.
Chapter 5. Gambling Game License
Sec. 1. The commission may issue a license to a permit holder to
conduct gambling games under this article at the permit holder's
racetrack. The number of licenses issued under this chapter may
not exceed two (2).
Sec. 2. Before issuing a license to a person under this chapter,
the commission shall subject the person to a background
investigation similar to a background investigation required for an
applicant for a riverboat owner's license under IC 4-33-6.
Sec. 3. A permit holder that is issued a gambling game license
under this article must pay an initial licensing fee of one hundred
million dollars ($100,000,000). The fee required under this section
must be paid to the commission before September 1, 2007.
Sec. 4. (a) An initial gambling game license expires ten (10)
years after the effective date of the license. Unless the gambling
game license is terminated or revoked, the gambling game license
may be renewed annually thereafter upon:
(1) the payment of an annual renewal fee of five thousand
dollars ($5,000); and
(2) a determination by the commission that the licensee
satisfies the conditions of this chapter.
(b) An initial gambling game license must be held by the licensee
for at least ten (10) years
Sec. 5. (a) The commission shall conduct a complete
investigation of each licensee every three (3) years to determine
whether the licensee remains in compliance with this article.
(b) Notwithstanding subsection (a), the commission may
investigate a licensee at any time the commission determines it is
necessary to ensure that the licensee remains in compliance with
this article.
Sec. 6. A permit holder or other person investigated under this
chapter shall bear the cost of the investigation.
Sec. 7. (a) A licensee or any other person must apply for and
receive the commission's approval before:
(1) a gambling game license is:
(A) transferred;
(B) sold; or
(C) purchased; or
(2) a voting trust agreement or other similar agreement is
established with respect to the gambling game license.
(b) The commission shall adopt rules governing the procedure
a licensee or other person must follow to take an action under
subsection (a). The rules must specify that a person who obtains an
ownership interest in a gambling game license must meet the
criteria of this article and comply with the rules adopted by the
commission. A licensee may transfer a gambling game license only
in accordance with this article and the rules adopted by the
commission.
(c) A person may not:
(1) lease;
(2) hypothecate; or
(3) borrow or loan money against;
a gambling game license.
(d) A transfer fee is imposed on a person who sells or otherwise
relinquishes a controlling interest, as determined under the rules
of the commission, in a gambling game license. The fee is equal to
the greater of:
(1) zero (0); or
(2) the product of:
(A) five-tenths (0.5); multiplied by
(B) the result of:
(i) the amount of the selling price of the controlling
interest; minus
(ii) one hundred million dollars ($100,000,000).
Sec. 8. The commission shall transfer:
(1) fees collected under this chapter; and
(2) all investigation costs recovered under this chapter;
to the treasurer of state for deposit in the state general fund.
Chapter 6. Slot Machine Suppliers
Sec. 1. The commission may issue a supplier's license under this
chapter to a person if:
(1) the person has:
(A) applied for the supplier's license;
(B) paid a nonrefundable application fee set by the
commission;
(C) paid a five thousand dollar ($5,000) annual supplier's
license fee; and
(D) submitted, on forms provided by the commission, two
(2) sets of:
(i) the individual's fingerprints, if the applicant is an
individual; or
(ii) fingerprints for each officer and director of the
applicant, if the applicant is not an individual; and
(2) the commission has determined that the applicant is
eligible for a supplier's license.
Sec. 2. A person may not receive a supplier's license under this
chapter if:
(1) the person has been convicted of a felony under Indiana
law, the laws of any other state, or the laws of the United
States;
(2) the person has knowingly or intentionally submitted an
application for a supplier's license under this chapter that
contains false information;
(3) the person is a member of the commission;
(4) the person is an officer, a director, or a managerial
employee of a person described in subdivision (1) or (2);
(5) the person employs an individual who:
(A) is described in subdivision (1), (2), or (3); or
(B) participates in the management or operation of
gambling operations authorized under this article;
(6) the person owns more than a ten percent (10%) ownership
interest in any other person holding a permit issued under
IC 4-31; or
(7) a license issued to the person:
(A) under this article;
(B) under IC 4-33-7; or
(C) to supply gaming supplies in another jurisdiction;
has been revoked.
Sec. 3. A holder of a supplier's license may:
(1) sell;
(2) lease; or
(3) contract to sell or lease;
a slot machine to a licensee.
Sec. 4. A person may not furnish slot machines to a licensee
unless the person possesses a supplier's license.
Sec. 5. A slot machine may not be distributed for use under this
article unless the slot machine conforms to standards adopted by
the commission.
Sec. 6. (a) A supplier shall furnish to the commission a list of all
slot machines offered for sale or lease in connection with gambling
games authorized under this article.
(b) A supplier shall keep books and records for the furnishing
of slot machines to licensees. The books and records required
under this subsection must be kept separate from the books and
records of any other business operated by the supplier.
(c) A supplier shall file a quarterly return with the commission
listing all sales and leases.
(d) A supplier shall permanently affix the supplier's name to all
slot machines that the supplier provides to licensees under this
chapter.
licensee's slot machine facility.
Sec. 3. Minimum and maximum wagers on gambling games
shall be determined by the licensee.
Sec. 4. The following may inspect a licensee's slot machine
facility at any time to determine if this article is being violated:
(1) Employees of the commission.
(2) Officers of the state police department.
Sec. 5. Employees of the commission have the right to be present
in a licensee's slot machine facility.
Sec. 6. A slot machine may be purchased or leased only from a
supplier licensed under this article.
Sec. 7. Slot machine wagering is the only form of wagering
permitted in a licensee's slot machine facility.
Sec. 8. Wagers may be received only from a person present in a
licensee's slot machine facility. A person present in a licensee's slot
machine facility may not place or attempt to place a wager on
behalf of a person who is not present in the licensee's slot machine
facility.
Sec. 9. Wagering may not be conducted with money or other
negotiable currency.
Sec. 10. (a) A patron may make a wager at a racetrack only by
means of:
(1) a token; or
(2) an electronic card;
purchased from a licensee at the licensee's racetrack.
(b) A token or an electronic card may be purchased by means
of an agreement under which a licensee extends credit to the
patron.
Sec. 11. A token or an electronic card described in section 10 of
this chapter may be used by a patron while the patron is present at
the racetrack only to make a wager on a slot machine authorized
under this article.
Sec. 12. (a) A licensee may not initially install more than two
thousand five hundred (2,500) slot machines on the premises of the
licensee's racetrack.
(b) A licensee may not install additional slot machines on the
premises of the licensee's racetrack unless the installation is
approved by the commission.
Sec. 13. (a) The Indiana horse racing commission shall enforce
the requirements of this section.
(b) A licensee shall annually devote to horse racing purses an
amount equal to at least fifteen percent (15%) of the adjusted gross
receipts from slot machine wagering at the licensee's racetrack.
(c) The commission shall provide the Indiana horse racing
commission with the information necessary to enforce this section.
(d) The Indiana horse racing commission shall investigate any
complaint that a licensee has failed to comply with the horse racing
purse requirements set forth in this section. If, after notice and a
hearing, the Indiana horse racing commission finds that a licensee
has failed to comply with the purse requirements set forth in this
section, the Indiana horse racing commission may:
(1) issue a warning to the licensee;
(2) impose a civil penalty that may not exceed one million
dollars ($1,000,000); or
(3) suspend a meeting permit issued under IC 4-31-5 to
conduct a pari-mutuel wagering horse racing meeting in
Indiana.
(e) A civil penalty collected under this section must be deposited
in the Indiana health insurance fund established by IC 4-35-8-8.
Chapter 8. Taxation of Slot Machine Wagering
Sec. 1. (a) A slot machine wagering tax is imposed at the rate of
thirty-seven and five-tenths percent (37.5%) on the adjusted gross
receipts received from wagering on gambling games authorized by
this article.
(b) A licensee 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 licensee 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. 2. (a) The state racetrack gaming fund is established.
(b) The department shall deposit tax revenue collected under
section 1 of this chapter in the state racetrack gaming fund.
(c) Money in the state racetrack gaming fund is continuously
appropriated for the purposes of this chapter.
Sec. 3. (a) This section applies to the first twenty-seven million
two hundred five thousand two hundred eighty-four dollars
($27,205,284) deposited in the state racetrack gaming fund in a
state fiscal year ending before July 1, 2009.
county.
(2) To each town located in the county according to the ratio
the town's population bears to the total population of the
county.
(3) After the distributions required in subdivisions (1) and (2)
are made, the remainder shall be retained by the county.
Sec. 7. (a) As used in this section, "political subdivision" means
a county, city, or town.
(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.
Sec. 8. (a) As used in this section, "fund" refers to the Indiana
health insurance fund established under subsection (b).
(b) The Indiana health insurance fund is established. The fund
consists of amounts deposited under IC 4-33 and this article.
(c) The fund shall be administered by the treasurer of state. 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. Money in the fund
does not revert to the state general fund at the end of a state fiscal
year.
(d) Money in the fund must be used to provide health insurance
to Indiana residents who reside in a household with an annual
household income that is less than three hundred percent (300%)
of the federal income poverty level.
(e) Money in the fund is continuously appropriated for the
purposes of this section.
Sec. 9. (a) The local revenue sharing fund is established. The
revenue sharing fund shall be administered by the treasurer of
state. Money in the local revenue sharing fund does not revert to
the state general fund at the end of a state fiscal year.
women's business enterprises are to obtain social and economic
parity and if the economies of the cities, towns, and counties in
which slot machines are operated at racetracks are to be
stimulated as contemplated by this article.
Sec. 3. As used in this chapter, "minority" means a person who
is one (1) of the following:
(1) Black.
(2) Hispanic.
(3) Asian American.
(4) Native American or Alaskan native.
Sec. 4. As used in this chapter, "minority business enterprise"
means a business that is one (1) of the following:
(1) A sole proprietorship owned and controlled by a minority.
(2) A partnership or joint venture owned and controlled by
minorities and in which:
(A) at least fifty-one percent (51%) of the ownership
interest is held by at least one (1) minority; and
(B) the management and daily business operations are
controlled by at least one (1) minority who also holds an
ownership interest.
(3) A corporation or other entity in which:
(A) at least fifty-one percent (51%) of:
(i) the ownership interest; or
(ii) the stock, if stock is issued;
is held by at least one (1) minority; and
(B) the management and daily business operations are
controlled by at least one (1) minority who also holds an
ownership interest or stock.
Sec. 5. As used in this chapter, "women's business enterprise"
means a business that is one (1) of the following:
(1) A sole proprietorship owned and controlled by a woman.
(2) A partnership or joint venture owned and controlled by
women and in which:
(A) at least fifty-one percent (51%) of the ownership
interest is held by at least one (1) woman; and
(B) the management and daily business operations are
controlled by at least one (1) woman who also holds an
ownership interest.
(3) A corporation or other entity in which:
(A) at least fifty-one percent (51%) of:
(i) the ownership interest; or
(ii) the stock, if stock is issued;
to ensure that the goals for expenditures and assignments to
minority and women's business enterprises are met. However, if a
determination is made that a permit holder has failed to
demonstrate compliance with this chapter, the person has ninety
(90) days from the date of the determination of noncompliance to
comply.
Sec. 8. The commission shall establish and administer a unified
certification procedure for minority and women's business
enterprises that do business with permit holders on contracts for
goods and services or contracts for business.
Sec. 9. The commission shall supply permit holders with a list of
minority and women's business enterprises the commission has
certified under section 8 of this chapter. The commission shall
review the list at least annually to determine the minority and
women's business enterprises that should continue to be certified.
The commission shall establish procedures for challenging the
designation of a certified minority and women's business
enterprise. The procedure must include proper notice and a
hearing for all concerned parties.
Sec. 10. The commission shall adopt other rules necessary to
interpret and implement this chapter.
the malt excise tax (IC 7.1-4-5); the petroleum severance tax
(IC 6-8-1); the various innkeeper's taxes (IC 6-9); the various food and
beverage taxes (IC 6-9); the county admissions tax (IC 6-9-13 and
IC 6-9-28); the oil inspection fee (IC 16-44-2); the emergency and
hazardous chemical inventory form fee (IC 6-6-10); the penalties
assessed for oversize vehicles (IC 9-20-3 and IC 9-30); the fees and
penalties assessed for overweight vehicles (IC 9-20-4 and IC 9-30); the
underground storage tank fee (IC 13-23); the solid waste management
fee (IC 13-20-22); and any other tax or fee that the department is
required to collect or administer.
permittee is not authorized to sell under this title.
(b) A premises that operates at least two (2) restaurants that are
separate and distinct from each other on the same premises may
provide for a different schedule of prices in each restaurant if each
restaurant conforms to all other laws and rules of the commission
regarding pricing and price discrimination in its separate and distinct
areas.
(c) This section does not apply to the holder of an excursion and
adjacent landsite a gaming site permit that complies with
IC 7.1-3-17.5-6.
(d) Notwithstanding subsection (a), a beer wholesaler may offer a
special discount price to a beer dealer or beer retailer for beer or
flavored malt beverage, if the beer or flavored malt beverage:
(1) is a brand or package the beer wholesaler has discontinued; or
(2) will expire in not more than:
(A) twenty (20) days for packaged beer or packaged flavored
malt beverage; and
(B) ten (10) days for draft beer or draft flavored malt beverage.
(e) The special discount under subsection (d) only applies to beer or
flavored malt beverage that will expire and be subject to removal from
retailer or dealer shelves in accordance with the primary source of
supply's coding data clearly identified on the container.
(f) Any beer or flavored malt beverage sold at a special discount
price under subsection (d) shall be accompanied by an invoice clearly
designating, in addition to all other information required by law, all the
following information:
(1) The date of delivery.
(2) The expiration date of each brand, package type, and quantity
delivered.
(3) The per unit price for each package.
intentionally permits another person to use the place for
professional gambling;
commits promoting professional gambling, a Class D felony.
(b) Subsection (a)(1) does not apply to a boat manufacturer who:
(1) transports or possesses a gambling device solely for the
purpose of installing that device in a boat that is to be sold and
transported to a buyer; and
(2) does not display the gambling device to the general public or
make the device available for use in Indiana.
(c) When a public utility is notified by a law enforcement agency
acting within its jurisdiction that any service, facility, or equipment
furnished by it is being used or will be used to violate this section, it
shall discontinue or refuse to furnish that service, facility, or
equipment, and no damages, penalty, or forfeiture, civil or criminal,
may be found against a public utility for an act done in compliance
with such a notice. This subsection does not prejudice the right of a
person affected by it to secure an appropriate determination, as
otherwise provided by law, that the service, facility, or equipment
should not be discontinued or refused, or should be restored.
(d) Subsection (a)(1) does not apply to a person who:
(1) possesses an antique slot machine;
(2) restricts display and use of the antique slot machine to
the person's private residence; and
(3) does not use the antique slot machine for profit.
(e) As used in this section, "antique slot machine" refers to a slot
machine that is:
(1) at least forty (40) years old; and
(2) possessed and used for decorative, historic, or nostalgic
purposes.