Bill Text: IL HB1396 | 2015-2016 | 99th General Assembly | Introduced


Bill Title: Amends the Video Gaming Act. Provides that establishments within 100 feet of a grocery store, a day care center, or a day care home are ineligible to operate video gaming terminals.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB1396 Detail]

Download: Illinois-2015-HB1396-Introduced.html


99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB1396

Introduced , by Rep. Thaddeus Jones

SYNOPSIS AS INTRODUCED:
230 ILCS 40/25

Amends the Video Gaming Act. Provides that establishments within 100 feet of a grocery store, a day care center, or a day care home are ineligible to operate video gaming terminals.
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A BILL FOR

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1 AN ACT concerning gaming.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Video Gaming Act is amended by changing
5Section 25 as follows:
6 (230 ILCS 40/25)
7 Sec. 25. Restriction of licensees.
8 (a) Manufacturer. A person may not be licensed as a
9manufacturer of a video gaming terminal in Illinois unless the
10person has a valid manufacturer's license issued under this
11Act. A manufacturer may only sell video gaming terminals for
12use in Illinois to persons having a valid distributor's
13license.
14 (b) Distributor. A person may not sell, distribute, or
15lease or market a video gaming terminal in Illinois unless the
16person has a valid distributor's license issued under this Act.
17A distributor may only sell video gaming terminals for use in
18Illinois to persons having a valid distributor's or terminal
19operator's license.
20 (c) Terminal operator. A person may not own, maintain, or
21place a video gaming terminal unless he has a valid terminal
22operator's license issued under this Act. A terminal operator
23may only place video gaming terminals for use in Illinois in

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1licensed establishments, licensed truck stop establishments,
2licensed fraternal establishments, and licensed veterans
3establishments. No terminal operator may give anything of
4value, including but not limited to a loan or financing
5arrangement, to a licensed establishment, licensed truck stop
6establishment, licensed fraternal establishment, or licensed
7veterans establishment as any incentive or inducement to locate
8video terminals in that establishment. Of the after-tax profits
9from a video gaming terminal, 50% shall be paid to the terminal
10operator and 50% shall be paid to the licensed establishment,
11licensed truck stop establishment, licensed fraternal
12establishment, or licensed veterans establishment,
13notwithstanding any agreement to the contrary. A video terminal
14operator that violates one or more requirements of this
15subsection is guilty of a Class 4 felony and is subject to
16termination of his or her license by the Board.
17 (d) Licensed technician. A person may not service,
18maintain, or repair a video gaming terminal in this State
19unless he or she (1) has a valid technician's license issued
20under this Act, (2) is a terminal operator, or (3) is employed
21by a terminal operator, distributor, or manufacturer.
22 (d-5) Licensed terminal handler. No person, including, but
23not limited to, an employee or independent contractor working
24for a manufacturer, distributor, supplier, technician, or
25terminal operator licensed pursuant to this Act, shall have
26possession or control of a video gaming terminal, or access to

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1the inner workings of a video gaming terminal, unless that
2person possesses a valid terminal handler's license issued
3under this Act.
4 (e) Licensed establishment. No video gaming terminal may be
5placed in any licensed establishment, licensed veterans
6establishment, licensed truck stop establishment, or licensed
7fraternal establishment unless the owner or agent of the owner
8of the licensed establishment, licensed veterans
9establishment, licensed truck stop establishment, or licensed
10fraternal establishment has entered into a written use
11agreement with the terminal operator for placement of the
12terminals. A copy of the use agreement shall be on file in the
13terminal operator's place of business and available for
14inspection by individuals authorized by the Board. A licensed
15establishment, licensed truck stop establishment, licensed
16veterans establishment, or licensed fraternal establishment
17may operate up to 5 video gaming terminals on its premises at
18any time.
19 (f) (Blank).
20 (g) Financial interest restrictions. As used in this Act,
21"substantial interest" in a partnership, a corporation, an
22organization, an association, a business, or a limited
23liability company means:
24 (A) When, with respect to a sole proprietorship, an
25 individual or his or her spouse owns, operates, manages, or
26 conducts, directly or indirectly, the organization,

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1 association, or business, or any part thereof; or
2 (B) When, with respect to a partnership, the individual
3 or his or her spouse shares in any of the profits, or
4 potential profits, of the partnership activities; or
5 (C) When, with respect to a corporation, an individual
6 or his or her spouse is an officer or director, or the
7 individual or his or her spouse is a holder, directly or
8 beneficially, of 5% or more of any class of stock of the
9 corporation; or
10 (D) When, with respect to an organization not covered
11 in (A), (B) or (C) above, an individual or his or her
12 spouse is an officer or manages the business affairs, or
13 the individual or his or her spouse is the owner of or
14 otherwise controls 10% or more of the assets of the
15 organization; or
16 (E) When an individual or his or her spouse furnishes
17 5% or more of the capital, whether in cash, goods, or
18 services, for the operation of any business, association,
19 or organization during any calendar year; or
20 (F) When, with respect to a limited liability company,
21 an individual or his or her spouse is a member, or the
22 individual or his or her spouse is a holder, directly or
23 beneficially, of 5% or more of the membership interest of
24 the limited liability company.
25 For purposes of this subsection (g), "individual" includes
26all individuals or their spouses whose combined interest would

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1qualify as a substantial interest under this subsection (g) and
2whose activities with respect to an organization, association,
3or business are so closely aligned or coordinated as to
4constitute the activities of a single entity.
5 (h) Location restriction. A licensed establishment,
6licensed truck stop establishment, licensed fraternal
7establishment, or licensed veterans establishment that is (i)
8located within 1,000 feet of a facility operated by an
9organization licensee licensed under the Illinois Horse Racing
10Act of 1975 or the home dock of a riverboat licensed under the
11Riverboat Gambling Act or (ii) located within 100 feet of a
12school, a grocery store, a day care center or a day care home
13as defined by the Child Care Act of 1969, or a place of worship
14under the Religious Corporation Act, is ineligible to operate a
15video gaming terminal. The location restrictions in this
16subsection (h) do not apply if (A) a facility operated by an
17organization licensee, a school, or a place of worship moves to
18or is established within the restricted area after a licensed
19establishment, licensed truck stop establishment, licensed
20fraternal establishment, or licensed veterans establishment
21becomes licensed under this Act or (B) a school or place of
22worship moves to or is established within the restricted area
23after a licensed establishment, licensed truck stop
24establishment, licensed fraternal establishment, or licensed
25veterans establishment obtains its original liquor license.
26For the purpose of this subsection, "school" means an

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1elementary or secondary public school, or an elementary or
2secondary private school registered with or recognized by the
3State Board of Education.
4 Notwithstanding the provisions of this subsection (h), the
5Board may waive the requirement that a licensed establishment,
6licensed truck stop establishment, licensed fraternal
7establishment, or licensed veterans establishment not be
8located within 1,000 feet from a facility operated by an
9organization licensee licensed under the Illinois Horse Racing
10Act of 1975 or the home dock of a riverboat licensed under the
11Riverboat Gambling Act. The Board shall not grant such waiver
12if there is any common ownership or control, shared business
13activity, or contractual arrangement of any type between the
14establishment and the organization licensee or owners licensee
15of a riverboat. The Board shall adopt rules to implement the
16provisions of this paragraph.
17 (i) Undue economic concentration. In addition to
18considering all other requirements under this Act, in deciding
19whether to approve the operation of video gaming terminals by a
20terminal operator in a location, the Board shall consider the
21impact of any economic concentration of such operation of video
22gaming terminals. The Board shall not allow a terminal operator
23to operate video gaming terminals if the Board determines such
24operation will result in undue economic concentration. For
25purposes of this Section, "undue economic concentration" means
26that a terminal operator would have such actual or potential

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1influence over video gaming terminals in Illinois as to:
2 (1) substantially impede or suppress competition among
3 terminal operators;
4 (2) adversely impact the economic stability of the
5 video gaming industry in Illinois; or
6 (3) negatively impact the purposes of the Video Gaming
7 Act.
8 The Board shall adopt rules concerning undue economic
9concentration with respect to the operation of video gaming
10terminals in Illinois. The rules shall include, but not be
11limited to, (i) limitations on the number of video gaming
12terminals operated by any terminal operator within a defined
13geographic radius and (ii) guidelines on the discontinuation of
14operation of any such video gaming terminals the Board
15determines will cause undue economic concentration.
16 (j) The provisions of the Illinois Antitrust Act are fully
17and equally applicable to the activities of any licensee under
18this Act.
19(Source: P.A. 97-333, eff. 8-12-11; 98-31, eff. 6-24-13; 98-77,
20eff. 7-15-13; 98-112, eff. 7-26-13; 98-756, eff. 7-16-14.)
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