Citations Affected: IC 4-31; IC 4-33; IC 4-35; IC 6-3-4-8.2;
IC 6-8.1-1-1; IC 35-45-5.
Synopsis: Slot machines. Authorizes slot machines at racetracks and
satellite facilities in Indianapolis and Fort Wayne. 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
the satellite facilities in Indianapolis and Fort Wayne to be jointly
operated by the permit holders. Imposes a state wagering tax of 32.5%
on the first $150,000,000 of annual adjusted gross receipts and 37.5%
on the annual adjusted gross receipts exceeding $150,000,000.
Redirects certain riverboat admissions taxes from the horse racing
commission to the state general fund. 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 for the annual distribution of
state slot machine wagering taxes. Imposes a horse racing promotion
fee of 15.25% of the adjusted gross receipts from slot machine
wagering. Provides for the distribution of the fees to purses, breed
development, and the associations representing owners, breeders, and
trainers. Requires 160 live racing days each year. Establishes the
minority and women business participation fund consisting of fees and
civil penalties imposed upon riverboats and slot machine operators.
Makes an appropriation.
Effective: July 1, 2007.
January 16, 2007, read first time and referred to Committee on Public Policy.
A BILL FOR AN ACT to amend the Indiana Code concerning
gaming and to make an appropriation.
in the county. However, before adopting the ordinance, the county
fiscal body must:
(1) conduct a public hearing on the proposed ordinance; and
(2) publish notice of the public hearing in the manner prescribed
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.
following the year of the previous public question held under that
subsection.
permit; and
(B) meets the other requirements of this chapter and the rules
adopted under this chapter.
If a permit holder that operates satellite facilities does not meet
the required minimum number of live racing days, the permit
holder may not operate the permit holder's satellite facilities
during the following year. However, the requirement for one
hundred twenty (120) live racing days does 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
other event over which the permit holder has no control. In
addition, if the initial racing meeting conducted by a permit
holder commences at such a time as to make it impractical to
conduct one hundred twenty (120) live racing days during the
permit holder's first year of operations, the commission may
authorize the permit holder to conduct simulcast wagering during
the first year of operations with fewer than one hundred twenty
(120) live racing days.
(2) Each proposed satellite facility must be covered by a separate
application. The timing for filing an initial application for a
satellite facility license shall be established by the rules of the
commission.
(3) A satellite facility must:
(A) have full dining service available;
(B) have multiple screens to enable each patron to view
simulcast races; and
(C) be designed to seat comfortably a minimum of four
hundred (400) persons.
(4) In determining whether a proposed satellite facility should be
approved, the commission shall consider the following:
(A) The purposes and provisions of this chapter.
(B) The public interest.
(C) The impact of the proposed satellite facility on live racing.
(D) The impact of the proposed satellite facility on the local
community.
(E) The potential for job creation.
(F) The quality of the physical facilities and the services to be
provided at the proposed satellite facility.
(G) Any other factors that the commission considers important
or relevant to its decision.
(5) The commission may not issue a license for a satellite facility
to be located in a county unless IC 4-31-4 has been satisfied.
(as defined in section 3 of this chapter) unless the satellite facility
also simulcasts all available races conducted in Indiana on that
day.
(2) Construction or leasing of satellite wagering facilities.
(3) Sale of food and beverages.
(4) Advertising and promotion.
(5) Conducting gambling games authorized under IC 4-35.
(5) (6) All other related activities.
person who is at least twenty-one (21) years of age.
(c) A person less than eighteen (18) years of age may not enter a
satellite facility.
(d) Except as provided by IC 4-35-7-2, a person less than
twenty-one (21) years of age may not enter the area of a racetrack
or a satellite facility in which gambling games are conducted under
IC 4-35.
admissions tax collected by the licensed owner for each person
embarking on a gambling excursion during the quarter or
admitted to a riverboat that has implemented flexible scheduling
under IC 4-33-6-21 during the quarter shall be paid to:
(A) the city in which the riverboat is docked, if the city:
(i) is located in a county having a population of more than
one hundred ten thousand (110,000) but less than one
hundred fifteen thousand (115,000); or
(ii) is contiguous to the Ohio River and is the largest city in
the county; and
(B) the county in which the riverboat is docked, if the
riverboat is not docked in a city described in clause (A).
(2) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county in which the riverboat is docked. In the
case of a county described in subdivision (1)(B), this one dollar
($1) is in addition to the one dollar ($1) received under
subdivision (1)(B).
(3) Except as provided in subsection (k), ten cents ($0.10) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county convention and visitors bureau or
promotion fund for the county in which the riverboat is docked.
(4) Except as provided in subsection (k), fifteen cents ($0.15) of
the admissions tax collected by the licensed owner for each
person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during a quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the state fair commission, for use in any activity
that the commission is authorized to carry out under IC 15-1.5-3.
(5) Except as provided in subsection (k), ten cents ($0.10) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the division of mental health and addiction. The
division shall allocate at least twenty-five percent (25%) of the
funds derived from the admissions tax to the prevention and
treatment of compulsive gambling.
(6) Except as provided in subsection (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
deposited in the unit's general fund or riverboat fund established
under IC 36-1-8-9, or both;
(2) may not be used to reduce the unit's maximum levy under
IC 6-1.1-18.5 but may be used at the discretion of the unit to
reduce the property tax levy of the unit for a particular year;
(3) may be used for any legal or corporate purpose of the unit,
including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4; and
(4) is considered miscellaneous revenue.
(f) Money paid by the treasurer of state under subsection (b)(3) or
(d)(3) shall be:
(1) deposited in:
(A) the county convention and visitor promotion fund; or
(B) the county's general fund if the county does not have a
convention and visitor promotion fund; and
(2) used only for the tourism promotion, advertising, and
economic development activities of the county and community.
(g) Money received by the division of mental health and addiction
under subsections (b)(5) and (d)(6):
(1) is annually appropriated to the division of mental health and
addiction;
(2) shall be distributed to the division of mental health and
addiction at times during each state fiscal year determined by the
budget agency; and
(3) shall be used by the division of mental health and addiction
for programs and facilities for the prevention and treatment of
addictions to drugs, alcohol, and compulsive gambling, including
the creation and maintenance of a toll free telephone line to
provide the public with information about these addictions. The
division shall allocate at least twenty-five percent (25%) of the
money received to the prevention and treatment of compulsive
gambling.
(h) This subsection applies to the following:
(1) Each entity receiving money under subsection (b).
(2) Each entity receiving money under subsection (d)(1) through
(d)(2).
(3) Each entity receiving money under subsection (d)(5) through
(d)(7).
The treasurer of state shall determine the total amount of money paid
by the treasurer of state to an entity subject to this subsection during
the state fiscal year 2002. The amount determined under this subsection
is the base year revenue for each entity subject to this subsection. The
treasurer of state shall certify the base year revenue determined under
this subsection to each entity subject to this subsection.
(i) This subsection applies to an entity receiving money under
subsection (d)(3) or (d)(4). The treasurer of state shall determine the
total amount of money paid by the treasurer of state to the entity
described in subsection (d)(3) during state fiscal year 2002. The
amount determined under this subsection multiplied by nine-tenths
(0.9) is the base year revenue for the entity described in subsection
(d)(3). The amount determined under this subsection multiplied by
one-tenth (0.1) is the base year revenue for the entity described in
subsection (d)(4). The treasurer of state shall certify the base year
revenue determined under this subsection to each entity subject to this
subsection.
(j) This subsection does not apply to an entity receiving money
under subsection (c). For state fiscal years beginning after June 30,
2002, the total amount of money distributed to an entity under this
section during a state fiscal year may not exceed the entity's base year
revenue as determined under subsection (h) or (i). If the treasurer of
state determines that the total amount of money distributed to an entity
under this section during a state fiscal year is less than the entity's base
year revenue, the treasurer of state shall make a supplemental
distribution to the entity under IC 4-33-13-5(g).
(k) This subsection does not apply to an entity receiving money
under subsection (c). For state fiscal years beginning after June 30,
2002, the treasurer of state shall pay that part of the riverboat
admissions taxes that:
(1) exceed exceeds a particular entity's base year revenue; and
(2) would otherwise be due to the entity under this section;
to the property tax replacement fund instead of to the entity.
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:
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).
license, or the permit holder issued a gambling game license
under IC 4-35.
(5) Rents paid for real property or payments constituting the price
of an interest in real property as a result of a real estate
transaction.
(b) Notwithstanding any law or rule to the contrary, the commission
shall establish annual goals for an operating agent, or a person issued
an owner's license, or a permit holder issued a gambling game
license under IC 4-35:
(1) for the use of minority and women's business enterprises; and
(2) derived from a statistical analysis of utilization study of
licensee and operating agent contracts for goods and services that
are required to be updated every five (5) years.
(c) An operating agent, or a person holding an owner's license, or
a permit holder issued a gambling game license under IC 4-35 shall
submit annually to the commission a report that includes the following
information:
(1) The total dollar value of contracts awarded for goods or
services and the percentage awarded to minority and women's
business enterprises.
(2) The following information relating to each minority business
enterprise or women's business enterprise awarded a contract for
goods or services:
(A) The name.
(B) The address.
(C) The total dollar amount of the contract.
A record containing information described in this subsection is not
exempt from the disclosure requirements of IC 5-14-3-3 under
IC 5-14-3-4.
(d) An operating agent, or a person holding an owner's license, or
a permit holder issued a gambling game license under IC 4-35 shall
make a good faith effort to meet the requirements of this section and
shall annually demonstrate to the commission that an effort was made
to meet the requirements.
(e) An operating agent, or a person holding an owner's license, or
a permit holder issued a gambling game license under IC 4-35 may
fulfill not more than seventy percent (70%) of an obligation under this
chapter by requiring a vendor to set aside a part of a contract for
minority or women's business enterprises. Upon request, the licensee,
or operating agent, or permit holder shall provide the commission
with proof of the amount of the set aside.
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 6. If the commission
determines that the provisions of this chapter relating to expenditures
and assignments to minority and women's business enterprises have not
been met, the commission may suspend, limit, or revoke the owner's
license, permit holder's gambling game license, or operating agent's
gaming operations, or may fine or impose appropriate conditions on the
licensee, permit holder, or operating agent 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 person
holding an owner's license, a permit holder issued a gambling game
license under IC 4-35, or an operating agent has failed to demonstrate
compliance with this chapter, the person has ninety (90) days from the
date of the determination of noncompliance to comply.
civil penalties imposed under section 6 of this chapter in the
minority and women business participation fund established by
section 12 of this chapter.
IC 4-31-2-1.5.
Sec. 4. "Commission" refers to the Indiana gaming commission
established by IC 4-33-3-1.
Sec. 5. "Department" refers to the department of state revenue.
Sec. 6. "Eligible county" means a county that does not contain
either of the following:
(1) A riverboat licensed under IC 4-33.
(2) A slot machine facility.
Sec. 7. "Gambling game" means a game played on a slot
machine approved for wagering under this article by the
commission.
Sec. 8. "Licensee" means a permit holder holding a gambling
game license issued under IC 4-35-5.
Sec. 9. "Permit holder" means a person holding a permit issued
under IC 4-31-5 to conduct a pari-mutuel horse racing meeting.
Sec. 10. "Racetrack" means the racetrack specified in a permit
holder's permit to conduct a pari-mutuel horse racing meeting.
Sec. 11. "Satellite facility" has the meaning set forth in
IC 4-31-2-20.5.
Sec. 12. "Slot machine facility" means a facility located at a
racetrack or a satellite facility that has been approved for slot
machine wagering under this article.
Sec. 13. "Supplier's license" means a license issued under
IC 4-35-6.
Chapter 3. General Provisions
Sec. 1. All shipments of slot machines to licensees in Indiana, the
registering, recording, and labeling of which have been completed
by the manufacturer or dealer in accordance with 15 U.S.C. 1171
through 15 U.S.C. 1178, are legal shipments of gambling devices
into Indiana.
Sec. 2. Under 15 U.S.C. 1172, approved January 2, 1951, the
state of Indiana, acting by and through elected and qualified
members of the general assembly, declares that the state is exempt
from 15 U.S.C. 1172.
Chapter 4. Powers and Duties of the Indiana Gaming
Commission
Sec. 1. The commission shall regulate and administer gambling
games conducted by a licensee under this article.
Sec. 2. The commission shall do the following:
(1) Adopt rules that the commission determines are necessary
to protect or enhance the following:
(A) The credibility and integrity of gambling games
authorized under this article.
(B) The regulatory process provided in this article.
(2) Conduct all hearings concerning civil violations of this
article.
(3) Provide for the establishment and collection of license fees
imposed under this article and deposit the license fees in the
state general fund.
(4) Levy and collect penalties for noncriminal violations of
this article and deposit the penalties in the state general fund.
(5) Adopt appropriate standards for 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
may be conducted.
(3) Providing for the prevention of practices detrimental to
the public interest.
(4) Establishing rules concerning the inspection of slot
machine facilities 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 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:
(1) the permit holder's racetrack; and
(2) each satellite facility that is:
(A) located in an allowed city; and
(B) jointly operated by the two (2) permit holders issued
permits under IC 4-31-5 to conduct pari-mutuel horse
racing meetings before January 1, 2007.
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) The commission may not issue a license to a person
under this chapter unless the person submits an agreement signed
by the mayor of the city in which the person intends to conduct
gambling games. The agreement must contain the person's
commitment to support economic development in the city.
(b) Money received by any unit of government under an
agreement executed under this section is considered miscellaneous
revenue. The money may not be used to reduce the unit's maximum
levy under IC 6-1.1-18.5 or IC 6-1.1-19. Subject to subsections (c)
and (d), the money may be used for any legal or corporate purpose
of the unit, including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4.
(c) In the case of an allowed city that is also a consolidated city,
the agreement executed under this section must dedicate at least
twenty percent (20%) of the money received under the agreement
to the housing trust fund established under IC 36-7-15.1-35.5(e).
An additional twenty percent (20%) of the money received under
the agreement must be paid to the school corporations located in
the county in which the consolidated city is located to be used for
capital projects. The money distributed under this subsection must
be divided among the school corporations on a pro rata basis
according to each school corporation's ADM (as defined in
IC 20-43-1-6).
(d) In the case of an allowed city that is not a consolidated city,
the agreement executed under this section must allocate money
received under the agreement as follows:
(1) Fifty percent (50%) to be divided between the allowed city
and the county in which the allowed city is located on a pro
rata basis according to the ratio of the allowed city's
population to the total population of the county.
(2) Fifty percent (50%) to the capital improvement board
established:
(A) under IC 36-10-8; and
(B) by the county in which the allowed city is located.
Money allocated to the capital improvement board under
subdivision (2) must be used to finance capital improvements
undertaken to implement a downtown improvement plan adopted
as a part of the municipal comprehensive plan enacted or amended
under IC 36-7-4.
Sec. 4. A permit holder that is issued a gambling game license
under this article must pay an initial licensing fee of one million
dollars ($1,000,000) to the commission before September 1, 2007.
Sec. 5. An initial gambling game license expires five (5) 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.
Sec. 6. (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. 7. A permit holder or other person investigated under this
chapter shall bear the cost of the investigation.
Sec. 8. (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 another 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 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 purchases or
otherwise acquires a controlling interest, as determined under the
rules of the commission, in a gambling game license previously
issued to another person. The fee is equal to two million dollars
($2,000,000).
Sec. 9. 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.
Sec. 7. If the commission determines that a supplier's slot
machine has been used by a person in an unauthorized gambling
operation, the slot machine shall be forfeited to the state.
Sec. 8. Slot machines operated under this article may be:
(1) repaired on the premises of a licensee's slot machine
facility; or
(2) removed for repair from a licensee's slot machine facility
to a facility owned by the licensee.
Sec. 9. (a) Unless a supplier's license is suspended, expires, or is
revoked, the supplier's license may be renewed annually upon:
(1) the payment of a five thousand dollar ($5,000) annual
renewal fee; and
(2) a determination by the commission that the holder of the
supplier's license is in compliance with this article.
(b) The commission shall conduct a complete investigation of
each holder of a supplier's license every three (3) years to
determine whether the holder of the supplier's license is in
compliance with this article.
(c) Notwithstanding subsection (b), the commission may
investigate the holder of a supplier's license at any time the
commission determines it is necessary to ensure that the holder of
the supplier's license is in compliance with this article.
(d) The holder of a supplier's license shall bear the cost of an
investigation or a reinvestigation of the licensee and any
investigation resulting from a potential transfer of ownership.
Sec. 10. 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 7. Conduct of Gambling Games
Sec. 1. Gambling games authorized under this article may not
be conducted anywhere other than a slot machine facility approved
by the commission.
Sec. 2. (a) A person who is less than twenty-one (21) years of age
may not wager on a slot machine.
(b) Except as provided in subsection (c), a person who is less
than twenty-one (21) years of age may not be present in the area of
a slot machine facility where gambling games are conducted.
(c) A person who is at least eighteen (18) years of age and who
is an employee of the licensee may be present in the area of the slot
machine facility where gambling games are conducted. However,
an employee who is less than twenty-one (21) years of age may not
perform any function involving gambling by the patrons of the
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. Slot machine 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 another person who is not present in the
licensee's slot machine facility.
Sec. 9. Wagering at a slot machine facility may not be conducted
with money or other negotiable currency.
Sec. 10. (a) A patron may make a wager at a slot machine
facility only by means of:
(1) a token; or
(2) an electronic card;
purchased from a licensee at the licensee's slot machine facility.
(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 slot machine facility only to make a wager on a slot machine
authorized under this article.
Sec. 12. (a) Not more than two thousand five hundred (2,500)
slot machines may be installed on the premises of a slot machine
facility.
(b) Additional slot machines may not be installed on the
premises of a slot machine facility unless the installation is
approved by the commission.
Chapter 8. Taxation of Slot Machine Wagering
Sec. 1. (a) A state wagering tax is imposed on the adjusted gross
receipts received from wagering on gambling games authorized by
this article at the rate of:
(1) thirty-two and five-tenths percent (32.5%) of the first one
hundred fifty million dollars ($150,000,000) of the adjusted
gross receipts received during the period beginning July 1 of
each year and ending June 30 of the following year; and
(2) thirty-seven and five-tenths percent (37.5%) of the
adjusted gross receipts exceeding one hundred fifty million
dollars ($150,000,000) received during the period beginning
July 1 of each year and ending June 30 of the following year.
(b) For purposes of calculating the amount of taxes imposed
under this section each day, a licensee shall determine the sum of:
(1) the licensee's adjusted gross receipts received from
wagering on gambling games at the licensee's racetrack; plus
(2) fifty percent (50%) of the adjusted gross receipts received
from wagering on gambling games at each satellite facility.
(c) 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.
(d) 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)).
(e) 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.
(f) The payment of the tax under this section must be on a form
prescribed by the department. Taxes remitted from each slot
machine facility operated wholly or in part by a licensee must be
separately stated on the form prescribed by the department.
Sec. 2. (a) The state slot machine wagering tax fund is
established.
(b) The department shall deposit tax revenue collected under
section 1 of this chapter in the state slot machine wagering tax
fund.
(c) Money in the state slot machine wagering tax fund is
continuously appropriated for 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 slot machine wagering tax fund
in a state fiscal year ending before July 1, 2009.
(b) Before the fifteenth day of each month, the treasurer of state
shall distribute the tax revenue deposited in the state slot machine
wagering tax fund in the preceding month to the Indiana horse
racing commission to be distributed in amounts determined by the
Indiana horse racing commission as follows:
(1) To one (1) or more breed development funds established
by the Indiana horse racing commission under IC 4-31-11-10.
(2) To a racetrack that was approved by the Indiana horse
racing commission under IC 4-31. The commission may make
a grant under this subdivision only for purses, promotions,
and routine operations of the racetrack. A grant may not be
made for long term capital investment or construction, and a
grant may not be made before the racetrack becomes
operational and is offering a racing schedule.
Sec. 4. (a) This section applies to the tax revenue deposited in
the state slot machine wagering tax fund that exceeds twenty-seven
million two hundred five thousand two hundred eighty-four dollars
($27,205,284) in a state fiscal year ending before July 1, 2009.
(b) The treasurer of state shall transfer the first one hundred
million dollars ($100,000,000) of the tax revenue described in
subsection (a) to the health care reserve fund established by section
9 of this chapter.
(c) After making the transfer required by subsection (b), the
treasurer of state shall transfer twenty million dollars
($20,000,000) to the department of agriculture to promote the
following:
(1) Agriculture based economic development.
(2) Conservation.
(3) Research.
(4) Education.
(d) After making the transfers required by subsections (b) and
(c), the treasurer of state shall transfer to the revenue sharing fund
established by section 7 of this chapter:
(1) five hundred thousand dollars ($500,000); multiplied by
(2) the number of eligible counties.
(e) After making the transfers required by subsections (b), (c),
and (d), the treasurer of state shall transfer the remaining amount
of tax revenue deposited in the state slot machine wagering tax
fund in a state fiscal year ending before July 1, 2009, as follows:
(1) Ninety-five percent (95%) to the health care reserve fund
established by section 9 of this chapter.
(2) Five percent (5%) to the military family relief fund
established by IC 10-17-12-8.
Sec. 5. (a) This section applies to a state fiscal year beginning
after June 30, 2009.
(b) Each month, a part of the tax revenue deposited in the state
slot machine wagering tax fund shall be paid to entities located in
each community containing a slot machine facility as follows:
(1) In the case of a racetrack located in a county having a
population of more than one hundred thirty thousand
(130,000) but less than one hundred forty-five thousand
(145,000), the amount determined under subsection (c) shall
be paid as follows:
(A) Thirty-five percent (35%) to the county economic
development council established under section 11 of this
chapter for distribution under section 12 of this chapter.
(B) Fifteen percent (15%) to a city having a population of
more than fifty-nine thousand seven hundred (59,700) but
less than sixty-five thousand (65,000).
(C) Twenty percent (20%) to the school corporations
located in the county. The tax revenue distributed under
this clause must be divided among the school corporations
on a pro rata basis according to the ratio the number of
county resident students enrolled in each school
corporation bears to the total number of county resident
students enrolled in the school corporations located in the
county. Revenue received by a school corporation under
this clause is considered miscellaneous revenue.
(D) Fifteen percent (15%) to the incorporated cities and
towns located in the county other than a city described in
clause (B). The tax revenue distributed under this clause
must be divided among the cities and towns on a pro rata
basis according to the ratio the population of each city or
town bears to the total population of the county.
(E) Fourteen and five-tenths percent (14.5%) to the capital
projects fund of the county for distribution by the county
legislative body.
(F) Five-tenths of one percent (0.5%) to the county fiscal
body for distribution to mental health and addiction
service providers located in the county.
(2) In the case of a racetrack that is located in a county having
a population of more than forty-three thousand (43,000) but
less than forty-five thousand (45,000), the amount determined
under subsection (d) shall be paid in equal amounts to:
(A) the county; and
(B) the city in which the racetrack is located.
(3) In the case of the satellite facility located in a county
containing a consolidated city, the amount determined under
subsection (e) shall be paid as follows:
(A) Forty-one and seven-tenths percent (41.7%) to the
consolidated city.
(B) Twenty and eight-tenths percent (20.8%) to the
housing trust fund established under IC 36-7-15.1-35.5(e).
(C) Twelve and five-tenths percent (12.5%) to the county.
(D) Twenty-five percent (25%) to the school corporations
located in the county containing a consolidated city. The
tax revenue distributed under this clause must be divided
among the school corporations on a pro rata basis
according to each school corporation's ADM (as defined in
IC 20-43-1-6).
(4) In the case of a satellite facility located in an allowed city
other than a consolidated city, the amount determined under
subsection (f) shall be paid in equal amounts to:
(A) the county; and
(B) the city in which the satellite facility is located.
(c) This subsection applies to tax revenues received from a
racetrack located in a county having a population of more than one
hundred thirty thousand (130,000) but less than one hundred
forty-five thousand (145,000). The amount of tax revenues to be
distributed under subsection (b)(1) is determined under STEP
TWO of the following formula:
STEP ONE: Determine the amount of tax revenue remitted by
the permit holder in the preceding month attributable to
adjusted gross receipts received from the permit holder's
racetrack.
STEP TWO: Multiply the STEP ONE amount by thirty
percent (30%).
(d) This subsection applies to tax revenues received from a
racetrack located in a county having a population of more than
forty-three thousand (43,000) but less than forty-five thousand
(45,000). The amount of tax revenues to be distributed under
subsection (b)(2) is determined under STEP TWO of the following
formula:
STEP ONE: Determine the amount of tax revenue remitted by
the permit holder in the preceding month attributable to
adjusted gross receipts received from the permit holder's
racetrack.
STEP TWO: Multiply the STEP ONE amount by thirty
percent (30%).
(e) This subsection applies to tax revenues received from a
satellite facility located in a county containing a consolidated city.
The amount of the tax revenues distributed under subsection (b)(3)
is determined under STEP TWO of the following formula:
STEP ONE: Determine the amount of tax revenues remitted
by the licensees' jointly operated satellite facility located in
the consolidated city.
STEP TWO: Multiply the sum determined under STEP ONE
by thirty percent (30%).
(f) This subsection applies to tax revenues received from a
satellite facility located in an allowed city that is not a consolidated
city. The amount of the tax revenues distributed under subsection
(b)(4) is determined under STEP TWO of the following formula:
STEP ONE: Determine the amount of tax revenues remitted
by the licensees' jointly operated satellite facility located in
the allowed city.
STEP TWO: Multiply the sum determined under STEP ONE
by thirty percent (30%).
(g) After making the payments required by subsection (b), the
treasurer of state shall transfer one million six hundred sixty-six
thousand six hundred sixty-six dollars ($1,666,666) each month to
the department of agriculture to promote the following:
(1) Agriculture based economic development.
(2) Conservation.
(3) Research.
(4) Education.
(h) After making the transfers required by subsections (b) and
(g), the treasurer of state shall transfer each month:
(1) fifty thousand dollars ($50,000); multiplied by
(2) the number of eligible counties;
to the revenue sharing fund established by section 7 of this chapter.
(i) After making the transfers required by subsections (b), (g),
and (h), the treasurer of state shall transfer the remaining amount
of tax revenue deposited in the state slot machine wagering tax
fund as follows:
(1) Ninety-five percent (95%) to the health care reserve fund
established by section 9 of this chapter.
(2) Five percent (5%) to the military family relief fund
established by IC 10-17-12-8.
Sec. 6. (a) Before the fifteenth day of each month, a licensee
shall pay to the Indiana horse racing commission for the promotion
of horse racing a fee of fifteen and twenty-five hundredths percent
(15.25%) of the licensee's adjusted gross receipts received for the
previous month from wagering on slot machines authorized by this
article. The Indiana horse racing commission shall allocate the
money received under this subsection as follows:
(1) Five-tenths percent (0.5%) must be transferred to the
horsemen's associations in the amounts specified in subsection
(d) for equine welfare.
(2) Five-tenths percent (0.5%) must be transferred to the
horsemen's associations in the amounts specified in subsection
(d) for backside benevolence.
(3) Ninety-nine percent (99%) to promote horses and horse
racing in accordance with subsection (c).
(b) A horsemen's association may expend the amounts described
in subsection (a)(1) through (a)(2) for a purpose promoting equine
welfare or for a benevolent purpose that the horsemen's
association determines in its sole discretion to be in the best
interests of horse racing in Indiana for the breed represented by
the association.
(c) The Indiana horse racing commission shall distribute the
amount described in subsection (a)(3) as follows:
(1) Forty-six percent (46%) for thoroughbred purposes as
follows:
(A) Sixty percent (60%) for the following purposes:
(i) Ninety-seven percent (97%) for thoroughbred purses.
(ii) Two and four-tenths percent (2.4%) to the
horsemen's association representing thoroughbred
owners and trainers.
(iii) Six-tenths percent (0.6%) to the horsemen's
association representing thoroughbred owners and
breeders.
(B) Forty percent (40%) to the breed development fund
established for thoroughbreds under IC 4-31-11-10.
(2) Forty-six percent (46%) for standardbred purposes as
follows:
(A) Fifty percent (50%) for the following purposes:
(i) Ninety-six and five-tenths percent (96.5%) for
standardbred purses.
(ii) Three and five-tenths percent (3.5%) to the
horsemen's association representing standardbred
owners and trainers.
(B) Fifty percent (50%) to the breed development fund
established for standardbreds under IC 4-31-11-10.
(3) Eight percent (8%) for quarter horse purposes as follows:
(A) Seventy percent (70%) for the following purposes:
(i) Ninety-five percent (95%) for quarter horse purses.
(ii) Five percent (5%) to the horsemen's association
representing quarter horse owners and trainers.
However, in the first year after the commencement of slot
machine operations, the money distributed under this
clause may not exceed the lesser of two million seven
hundred thousand dollars ($2,700,000) or five and
six-tenths percent (5.6%) of the total amount of money
distributed under this subsection. If quarter horse races
average at least seven and five-tenths (7.5) horses per gate
in the first year after the commencement of slot machine
operations or in a subsequent year, the money distributed
under this clause for quarter horse purposes shall be
increased by ten percent (10%) in the following year.
However, the money distributed under this clause may not
exceed five and six-tenths percent (5.6%) of the total
amount of money distributed under this subsection. If the
amount of money distributed under this clause is less than
five and six-tenths percent (5.6%) of the total amount of
money distributed under this subsection in a particular
year, the amounts distributed under subdivisions (1)(A)
and (2)(A) for that year shall be increased equally in
proportional amounts.
(B) Thirty percent (30%) to the breed development fund
established for quarter horses under IC 4-31-11-10.
(d) Money described in subsection (a)(1) and (a)(2) must be
allocated as follows:
(1) Forty-six percent (46%) for the horsemen's association
representing thoroughbred owners and trainers.
(2) Forty-six percent (46%) for the horsemen's association
representing standardbred owners and trainers.
(3) Eight percent (8%) for the horsemen's association
representing quarter horse owners and trainers.
Sec. 7. (a) The revenue sharing fund is established. The revenue
sharing fund shall be administered by the treasurer of state. The
treasurer of state shall invest the money in the revenue sharing
fund not currently needed to meet the obligations of the revenue
sharing fund in the same manner as other public funds may be
invested. Interest that accrues from these investments shall be
deposited in the revenue sharing fund. Money in the revenue
sharing fund does not revert to the state general fund at the end of
a state fiscal year.
(b) Before August 15, the treasurer of state shall distribute the
money deposited in the revenue sharing fund under this chapter in
the previous state fiscal year to the county treasurer of each
eligible county. Except as otherwise provided in this subsection,
each county treasurer is entitled to a distribution of six hundred
thousand dollars ($600,000). If the amount of money deposited in
the revenue sharing fund in the previous state fiscal year is
insufficient to distribute the amount specified in this subsection,
each county's distribution amount must be reduced equally.
(c) The county auditor shall distribute the money received by an
eligible county under subsection (b) 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.
(d) Money in the revenue sharing fund is appropriated
continuously for the purposes of this section.
Sec. 8. (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. 9. (a) The health care reserve fund is established. The fund
consists of amounts deposited under this chapter.
(b) The health care reserve fund shall be administered by the
treasurer of state. The treasurer of state shall invest the money in
the health care reserve fund not currently needed to meet the
obligations of the health care reserve fund in the same manner as
other public funds may be invested. Interest that accrues from
these investments shall be deposited in the health care reserve
fund. Money in the health care reserve fund does not revert to the
state general fund at the end of a state fiscal year.
(c) Money in the health care reserve fund must be used to
provide health insurance to Indiana residents that reside in a
household with an annual household income that is less than three
hundred percent (300%) of the federal income poverty level.
Sec. 10. (a) The education reserve fund is established. The fund
consists of amounts appropriated by the general assembly.
(b) The education reserve fund shall be administered by the
treasurer of state. The treasurer of state shall invest the money in
the education reserve fund not currently needed to meet the
obligations of the education reserve fund in the same manner as
other public funds may be invested. Interest that accrues from
these investments shall be deposited in the education reserve fund.
Money in the education reserve fund does not revert to the state
general fund at the end of a state fiscal year.
Sec. 11. (a) This section applies only to a county having a
population of more than one hundred thirty thousand (130,000) but
less than one hundred forty-five thousand (145,000).
(b) The county economic development council is established to
allocate state slot machine wagering taxes received under section
5(b)(1)(A) of this chapter for funding, promoting, and marketing:
(1) economic development projects; and
(2) charity programs;
benefiting the county.
(c) The council consists of the following voting members:
(1) Two (2) elected officials representing the county,
appointed by the county executive. The members appointed
under this subdivision may not be members of the same
political party.
(2) Two (2) elected officials representing the largest city in the
county, appointed by the mayor of the city. The members
appointed under this subdivision may not be members of the
same political party.
(3) One (1) elected official from each city in the county other
than the city described in subdivision (2), appointed by the
mayor of the city.
(4) One (1) elected official from each town in the county,
appointed by the legislative body of the town.
(5) The president of the Chamber of Commerce for Anderson
and Madison County, or the president's designee.
(6) The president of the Anderson/Madison County Visitors
and Convention Bureau, or the president's designee.
(7) The president of the Anderson/Madison County
Association of Realtors, or the president's designee.
(8) The president of the Madison County Black Chamber of
Commerce, or the president's designee.
(9) The president of the Martin Luther King Foundation, or
the president's designee.
(d) The:
(1) executive director of the Anderson Corporation for
Economic Development; or
(2) the executive director's designee;
shall serve as the chairperson of the council. The chairperson may
not vote except to cast a tie breaking vote.
(e) For purposes of this section, "economic development
project" has the meaning set forth in IC 6-3.5-7-13.1(c).
Sec. 12. (a) When allocating the tax revenues received under
section 5(b)(1)(A) of this chapter, the county economic
development council shall allocate at least ten percent (10%) of the
tax revenues to each of the following:
(1) Urban focused economic development.
(2) Charity programming.
(b) The county economic development council shall annually
make the following allocations from the tax revenues received
under section 5(b)(1)(A) of this chapter:
(1) Three hundred thousand dollars ($300,000) to the
Anderson Corporation for Economic Development to provide
professional and administrative support to the county
economic development council. The amount paid under this
subdivision must be annually increased by the percent of
increase in the United States Department of Labor Consumer
Price Index during the year preceding the year in which an
increase is established.
(2) Five hundred thousand dollars ($500,000) to the Flagship
Enterprise Center for operations and capital projects.
(3) One hundred fifty thousand dollars ($150,000) to youth
sports programs in the county.
(4) One thousand dollars ($100,000) to shelters for victims of
domestic violence located in the county.
(5) One hundred thousand dollars ($100,000) to the Urban
League of Anderson for the purpose of providing technology
education programs and after school education and tutoring
programs.
(6) One hundred twenty-five thousand dollars ($125,000) to
the Madison County Foundation for scholarships for students
graduating from Anderson High School, Highland High
School, Frankton High School, Elwood High School, and
Alexandria High School.
(7) Seventy-five thousand dollars ($75,000) for regional fire
and rescue training conducted in Anderson.
(8) One hundred thousand dollars ($100,000) to construct and
maintain multi-use trails that connect urban, suburban, and
rural areas of Madison County.
(9) Fifty thousand dollars ($50,000) to the Boy Scouts of
America for the maintenance of camping facilities located in
the county.
(10) Fifty thousand dollars ($50,000) to the South Madison
County Foundation for scholarships for students graduating
from Pendleton Heights High School and Lapel High School.
(11) Fifty thousand dollars ($50,000) to the Stepping Stones
veterans' organization.
(12) Fifty thousand dollars ($50,000) to the Madison County
sheriff for reserve police officer and cadet programs.
(13) Fifty thousand dollars ($50,000) to the Boys and Girls
Clubs of Madison County.
(14) Fifty thousand dollars ($50,000) to 4-H in Madison
County.
(15) Fifty thousand dollars ($50,000) to youth organizations
for girls in Madison County.
(16) Twenty-five thousand dollars ($25,000) to competitive
youth swimming programs in Madison County.
(c) Money remaining after making the allocations required
under subsection (b) may be allocated at the discretion of the
county economic development council.
(d) Scholarships awarded with money allocated under
subsection (b)(6) must be used to benefit graduates who enroll in
both college and vocational education programs. Scholarships must
be awarded based on need to graduates who have demonstrated
leadership qualities and the potential to succeed in their
educational pursuits and civic life.
Chapter 9. Penalties
Sec. 1. This chapter applies only to gambling games authorized
under this article.
Sec. 2. A person who knowingly or intentionally aids, induces,
or causes a person who is:
(1) less than twenty-one (21) years of age; and
(2) not an employee of a licensee;
to enter or attempt to enter the licensee's slot machine facility
commits a Class A misdemeanor.
Sec. 3. A person who:
(1) is not an employee of a licensee;
(2) is less than twenty-one (21) years of age; and
(3) knowingly or intentionally enters the licensee's slot
machine facility;
commits a Class A misdemeanor.
Sec. 4. A person who knowingly or intentionally:
(1) makes a false statement on an application submitted under
this article;
(2) conducts a gambling game in a manner other than the
manner required under this article; or
(3) wagers on a gambling game or accepts a wager on a
gambling game at a location other than a licensee's slot
machine facility;
commits a Class A misdemeanor.
Sec. 5. A person who knowingly or intentionally does any of the
following commits a Class D felony:
(1) Offers, promises, or gives anything of value or benefit:
(A) to a person who is connected with a licensee, including
an officer or an employee of a licensee; and
(B) under an agreement to influence or with the intent to
influence:
(i) the actions of the person to whom the offer, promise,
or gift was made in order to affect or attempt to affect
the outcome of a gambling game; or
(ii) an official action of a commission member.
(2) Solicits, accepts, or receives a promise of anything of value
or benefit:
(A) while the person is connected with a licensee, including
as an officer or employee of a licensee; and
(B) under an agreement to influence or with the intent to
influence:
(i) the actions of the person to affect or attempt to affect
the outcome of a gambling game; or
(ii) an official action of a commission member.
(3) Uses or possesses with the intent to use a device to assist
in:
(A) projecting the outcome of a gambling game;
(B) analyzing the probability of the occurrence of an event
relating to a gambling game; or
(C) analyzing the strategy for playing or betting to be used
in a gambling game, except as permitted by the
commission.
(4) Cheats at a gambling game.
(5) Manufactures, sells, or distributes any game or device that
is intended to be used to violate this article.
(6) Alters or misrepresents the outcome of a gambling game
on which wagers have been made after the outcome is made
sure but before the outcome is revealed to the players.
(7) Places a bet on the outcome of a gambling game after
acquiring knowledge that:
(A) is not available to all players; and
(B) concerns the outcome of the gambling game that is the
subject of the bet.
(8) Aids a person in acquiring the knowledge described in
subdivision (7) to place a bet contingent on the outcome of a
gambling game.
(9) Claims, collects, takes, or attempts to claim, collect, or
take money or anything of value in or from a gambling game:
(A) with the intent to defraud; or
(B) without having made a wager contingent on winning a
gambling game.
(10) Claims, collects, or takes an amount of money or a thing
of value that is of greater value than the amount won in a
gambling game.
(11) Uses or possesses counterfeit tokens in or for use in a
gambling game.
(12) Possesses a key or device designed for:
(A) opening, entering, or affecting the operation of a
gambling game, a drop box, or an electronic or a
mechanical device connected with the gambling game; or
(B) removing coins, tokens, or other contents of a gambling
game.
This subdivision does not apply to a licensee or an employee
of a licensee acting in the course of the employee's
employment.
(13) Possesses materials used to manufacture a slug or device
intended to be used in a manner that violates this article.
Chapter 10. Employment
Sec. 1. (a) This section applies if a permit holder's employees are
covered under the terms of a collective bargaining agreement that
is in effect at the time a gambling game license is issued to the
permit holder under IC 4-35-5.
(b) If a permit holder has nonsupervisory employees whose
work is:
(1) directly related to:
(A) pari-mutuel terminal operations; or
(B) money room functions associated with pari-mutuel
wagering on horse racing; and
(2) covered under the terms of a collective bargaining
agreement;
the permit holder shall, subject to subsection (c), staff
nonsupervisory positions directly related to the operation of
gambling games under this article with employees whose work is
covered under the terms of a collective bargaining agreement.
(c) The employees described in subsection (b) must be qualified
to meet the licensing requirements of this article and any criteria
required by the commission in rules adopted under IC 4-22-2.
Sec. 2. Job classifications, job duties, wage rates, and benefits of
nonsupervisory positions related to gambling games may be
established by agreement of the parties to a collective bargaining
agreement or, in the absence of an agreement, by the permit
holder.
qualified organization (as defined in IC 4-32.2-2-24(a)) that awards a
prize under IC 4-32.2 exceeding one thousand two hundred dollars
($1,200) in value shall deduct and retain adjusted gross income tax at
the time and in the amount described in withholding instructions issued
by the department. The department's instructions must provide that
amounts withheld shall be paid to the department before the close of
the business day following the day the winnings are paid, actually or
constructively.
JULY 1, 2007]: Sec. 7. This chapter does not apply to the publication
or broadcast of an advertisement, a list of prizes, or other information
concerning:
(1) pari-mutuel wagering on horse races or a lottery authorized by
the law of any state; or
(2) a game of chance operated in accordance with IC 4-32.2; or
(3) a gambling game operated in accordance with IC 4-35.
the act unless:
(1) the remainder is so essentially and inseparably connected
with and so dependent upon the invalid provision or
application that it cannot be presumed that the remainder
would have been enacted without the invalid provision or
application; or
(2) the remainder is incomplete and incapable of being
executed in accordance with the legislative intent without the
invalid provision or application.