Bill Text: IL SB0620 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Amends the Video Gaming Act. In the definition of "terminal operator", adds to mean the individual, partnership, corporation, or limited liability company is engaged in the occupation of owning, placing, operating, and maintaining video gaming terminals. Provides that a video gaming terminal is not an amusement for purposes of the Illinois Municipal Code and is a gambling device as defined under federal law. Adds that the act of owning, placing, operating, and maintaining video gaming terminals by terminal operators is an occupation upon which home rule municipalities are prohibited from imposing taxes under the Illinois Constitution.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2021-04-16 - Rule 3-9(a) / Re-referred to Assignments [SB0620 Detail]

Download: Illinois-2021-SB0620-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0620

Introduced 2/24/2021, by Sen. Dave Syverson

SYNOPSIS AS INTRODUCED:
230 ILCS 40/5
230 ILCS 40/60

Amends the Video Gaming Act. In the definition of "terminal operator", adds to mean the individual, partnership, corporation, or limited liability company is engaged in the occupation of owning, placing, operating, and maintaining video gaming terminals. Provides that a video gaming terminal is not an amusement for purposes of the Illinois Municipal Code and is a gambling device as defined under federal law. Adds that the act of owning, placing, operating, and maintaining video gaming terminals by terminal operators is an occupation upon which home rule municipalities are prohibited from imposing taxes under the Illinois Constitution.
LRB102 16127 SMS 21503 b
HOME RULE NOTE ACT MAY APPLY

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
5Sections 5 and 60 as follows:
6 (230 ILCS 40/5)
7 Sec. 5. Definitions. As used in this Act:
8 "Board" means the Illinois Gaming Board.
9 "Credit" means one, 5, 10, or 25 cents either won or
10purchased by a player.
11 "Distributor" means an individual, partnership,
12corporation, or limited liability company licensed under this
13Act to buy, sell, lease, or distribute video gaming terminals
14or major components or parts of video gaming terminals to or
15from terminal operators.
16 "Electronic card" means a card purchased from a licensed
17establishment, licensed fraternal establishment, licensed
18veterans establishment, licensed truck stop establishment, or
19licensed large truck stop establishment for use in that
20establishment as a substitute for cash in the conduct of
21gaming on a video gaming terminal.
22 "Electronic voucher" means a voucher printed by an
23electronic video game machine that is redeemable in the

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1licensed establishment for which it was issued.
2 "In-location bonus jackpot" means one or more video gaming
3terminals at a single licensed establishment that allows for
4wagers placed on such video gaming terminals to contribute to
5a cumulative maximum jackpot of up to $10,000.
6 "Terminal operator" means an individual, partnership,
7corporation, or limited liability company that is licensed
8under this Act and that owns, services, and maintains video
9gaming terminals for placement in licensed establishments,
10licensed truck stop establishments, licensed large truck stop
11establishments, licensed fraternal establishments, or licensed
12veterans establishments and is engaged in the occupation of
13owning, placing, operating, and maintaining video gaming
14terminals.
15 "Licensed technician" means an individual who is licensed
16under this Act to repair, service, and maintain video gaming
17terminals.
18 "Licensed terminal handler" means a person, including but
19not limited to an employee or independent contractor working
20for a manufacturer, distributor, supplier, technician, or
21terminal operator, who is licensed under this Act to possess
22or control a video gaming terminal or to have access to the
23inner workings of a video gaming terminal. A licensed terminal
24handler does not include an individual, partnership,
25corporation, or limited liability company defined as a
26manufacturer, distributor, supplier, technician, or terminal

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1operator under this Act.
2 "Manufacturer" means an individual, partnership,
3corporation, or limited liability company that is licensed
4under this Act and that manufactures or assembles video gaming
5terminals.
6 "Supplier" means an individual, partnership, corporation,
7or limited liability company that is licensed under this Act
8to supply major components or parts to video gaming terminals
9to licensed terminal operators.
10 "Net terminal income" means money put into a video gaming
11terminal minus credits paid out to players.
12 "Video gaming terminal" means any electronic video game
13machine that, upon insertion of cash, electronic cards or
14vouchers, or any combination thereof, is available to play or
15simulate the play of a video game, including but not limited to
16video poker, line up, and blackjack, as authorized by the
17Board utilizing a video display and microprocessors in which
18the player may receive free games or credits that can be
19redeemed for cash. The term does not include a machine that
20directly dispenses coins, cash, or tokens or is for amusement
21purposes only. "Video gaming terminal" is not an amusement for
22purposes of Section 11-42-5 of the Illinois Municipal Code.
23"Video gaming terminal" is a gambling device as defined under
2415 U.S.C. 1171.
25 "Licensed establishment" means any licensed retail
26establishment where alcoholic liquor is drawn, poured, mixed,

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1or otherwise served for consumption on the premises, whether
2the establishment operates on a nonprofit or for-profit basis.
3"Licensed establishment" includes any such establishment that
4has a contractual relationship with an inter-track wagering
5location licensee licensed under the Illinois Horse Racing Act
6of 1975, provided any contractual relationship shall not
7include any transfer or offer of revenue from the operation of
8video gaming under this Act to any licensee licensed under the
9Illinois Horse Racing Act of 1975. Provided, however, that the
10licensed establishment that has such a contractual
11relationship with an inter-track wagering location licensee
12may not, itself, be (i) an inter-track wagering location
13licensee, (ii) the corporate parent or subsidiary of any
14licensee licensed under the Illinois Horse Racing Act of 1975,
15or (iii) the corporate subsidiary of a corporation that is
16also the corporate parent or subsidiary of any licensee
17licensed under the Illinois Horse Racing Act of 1975.
18"Licensed establishment" does not include a facility operated
19by an organization licensee, an inter-track wagering licensee,
20or an inter-track wagering location licensee licensed under
21the Illinois Horse Racing Act of 1975 or a riverboat licensed
22under the Illinois Gambling Act, except as provided in this
23paragraph. The changes made to this definition by Public Act
2498-587 are declarative of existing law.
25 "Licensed fraternal establishment" means the location
26where a qualified fraternal organization that derives its

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1charter from a national fraternal organization regularly
2meets.
3 "Licensed veterans establishment" means the location where
4a qualified veterans organization that derives its charter
5from a national veterans organization regularly meets.
6 "Licensed truck stop establishment" means a facility (i)
7that is at least a 3-acre facility with a convenience store,
8(ii) with separate diesel islands for fueling commercial motor
9vehicles, (iii) that sells at retail more than 10,000 gallons
10of diesel or biodiesel fuel per month, and (iv) with parking
11spaces for commercial motor vehicles. "Commercial motor
12vehicles" has the same meaning as defined in Section 18b-101
13of the Illinois Vehicle Code. The requirement of item (iii) of
14this paragraph may be met by showing that estimated future
15sales or past sales average at least 10,000 gallons per month.
16 "Licensed large truck stop establishment" means a facility
17located within 3 road miles from a freeway interchange, as
18measured in accordance with the Department of Transportation's
19rules regarding the criteria for the installation of business
20signs: (i) that is at least a 3-acre facility with a
21convenience store, (ii) with separate diesel islands for
22fueling commercial motor vehicles, (iii) that sells at retail
23more than 50,000 gallons of diesel or biodiesel fuel per
24month, and (iv) with parking spaces for commercial motor
25vehicles. "Commercial motor vehicles" has the same meaning as
26defined in Section 18b-101 of the Illinois Vehicle Code. The

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1requirement of item (iii) of this paragraph may be met by
2showing that estimated future sales or past sales average at
3least 50,000 gallons per month.
4(Source: P.A. 101-31, eff. 6-28-19.)
5 (230 ILCS 40/60)
6 Sec. 60. Imposition and distribution of tax.
7 (a) A tax of 30% is imposed on net terminal income and
8shall be collected by the Board.
9 Of the tax collected under this subsection (a),
10five-sixths shall be deposited into the Capital Projects Fund
11and one-sixth shall be deposited into the Local Government
12Video Gaming Distributive Fund.
13 (b) Beginning on July 1, 2019, an additional tax of 3% is
14imposed on net terminal income and shall be collected by the
15Board.
16 Beginning on July 1, 2020, an additional tax of 1% is
17imposed on net terminal income and shall be collected by the
18Board.
19 The tax collected under this subsection (b) shall be
20deposited into the Capital Projects Fund.
21 (c) Revenues generated from the play of video gaming
22terminals shall be deposited by the terminal operator, who is
23responsible for tax payments, in a specially created, separate
24bank account maintained by the video gaming terminal operator
25to allow for electronic fund transfers of moneys for tax

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1payment.
2 (d) Each licensed establishment, licensed truck stop
3establishment, licensed large truck stop establishment,
4licensed fraternal establishment, and licensed veterans
5establishment shall maintain an adequate video gaming fund,
6with the amount to be determined by the Board.
7 (e) The State's percentage of net terminal income shall be
8reported and remitted to the Board within 15 days after the
915th day of each month and within 15 days after the end of each
10month by the video terminal operator. A video terminal
11operator who falsely reports or fails to report the amount due
12required by this Section is guilty of a Class 4 felony and is
13subject to termination of his or her license by the Board. Each
14video terminal operator shall keep a record of net terminal
15income in such form as the Board may require. All payments not
16remitted when due shall be paid together with a penalty
17assessment on the unpaid balance at a rate of 1.5% per month.
18 (f) The act of owning, placing, operating, and maintaining
19video gaming terminals by terminal operators is an occupation
20upon which home rule municipalities are prohibited from
21imposing taxes under subsection (e) of Section 6 of Article
22VII of the Illinois Constitution. This subsection (f) is a
23limitation, pursuant to subsection (g) of Section 6 of Article
24VII of the Illinois Constitution, on the power of home rule
25units to tax.
26(Source: P.A. 101-31, eff. 6-28-19.)
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