Bill Text: IL SB3489 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Video Gaming Act. Provides that imposing fees on an establishment authorized to conduct video gaming and on terminal operators is an exclusive power and function of the State. Prohibits a unit of local government with a population under 2,000,000 from applying any additional tax on net terminal income. Provides that a unit of local government (rather than a non-home rule unit of government) may not impose a fee for the operation of a video gaming terminal in excess of $100 per year (rather than $25). Provides that any unit of local government imposing a fee for the operation of a video gaming terminal in excess of $100 on or before January 1, 2020 may retain its fee structure but may not increase fees beyond the limit provided in the provisions. Provides that a home rule unity may not regulate the provisions in a manner inconsistent with the provisions. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3489 Detail]

Download: Illinois-2019-SB3489-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3489 Introduced 2/13/2020, by Sen. Dave Syverson SYNOPSIS AS INTRODUCED:
230 ILCS 40/45
230 ILCS 40/60
230 ILCS 40/65
Amends the Video Gaming Act. Provides that imposing fees on an establishment authorized to conduct video gaming and on terminal operators is an exclusive power and function of the State. Prohibits a unit of local government with a population under 2,000,000 from applying any additional tax on net terminal income. Provides that a unit of local government (rather than a non-home rule unit of government) may not impose a fee for the operation of a video gaming terminal in excess of $100 per year (rather than $25). Provides that any unit of local government imposing a fee for the operation of a video gaming terminal in excess of $100 on or before January 1, 2020 may retain its fee structure but may not increase fees beyond the limit provided in the provisions. Provides that a home rule unity may not regulate the provisions in a manner inconsistent with the provisions. Effective immediately.
LRB101 19872 SMS 69392 b
FISCAL NOTE ACT MAY APPLY HOME RULE NOTE ACT MAY APPLY
A BILL FOR
SB3489 LRB101 19872 SMS 69392 b
AN ACT concerning gaming.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Video Gaming Act is amended by changing
Sections 45, 60, and 65 as follows:
(230 ILCS 40/45)
Sec. 45. Issuance of license.
(a) The burden is upon each applicant to demonstrate his
suitability for licensure. Each video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, and licensed veterans establishment shall be
licensed by the Board. The Board may issue or deny a license
under this Act to any person pursuant to the same criteria set
forth in Section 9 of the Illinois Gambling Act.
(a-5) The Board shall not grant a license to a person who
has facilitated, enabled, or participated in the use of
coin-operated devices for gambling purposes or who is under the
significant influence or control of such a person. For the
purposes of this Act, "facilitated, enabled, or participated in
the use of coin-operated amusement devices for gambling
purposes" means that the person has been convicted of any

SB3489 - 2 - LRB101 19872 SMS 69392 b
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012. If there is pending legal action against
a person for any such violation, then the Board shall delay the
licensure of that person until the legal action is resolved.
(b) Each person seeking and possessing a license as a video
gaming terminal manufacturer, distributor, supplier, operator,
handler, licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed veterans
establishment shall submit to a background investigation
conducted by the Board with the assistance of the State Police
or other law enforcement. To the extent that the corporate
structure of the applicant allows, the background
investigation shall include any or all of the following as the
Board deems appropriate or as provided by rule for each
category of licensure: (i) each beneficiary of a trust, (ii)
each partner of a partnership, (iii) each member of a limited
liability company, (iv) each director and officer of a publicly
or non-publicly held corporation, (v) each stockholder of a
non-publicly held corporation, (vi) each stockholder of 5% or
more of a publicly held corporation, or (vii) each stockholder
of 5% or more in a parent or subsidiary corporation.
(c) Each person seeking and possessing a license as a video
gaming terminal manufacturer, distributor, supplier, operator,
handler, licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,

SB3489 - 3 - LRB101 19872 SMS 69392 b
licensed fraternal establishment, or licensed veterans
establishment shall disclose the identity of every person,
association, trust, corporation, or limited liability company
having a greater than 1% direct or indirect pecuniary interest
in the video gaming terminal operation for which the license is
sought. If the disclosed entity is a trust, the application
shall disclose the names and addresses of the beneficiaries; if
a corporation, the names and addresses of all stockholders and
directors; if a limited liability company, the names and
addresses of all members; or if a partnership, the names and
addresses of all partners, both general and limited.
(d) No person may be licensed as a video gaming terminal
manufacturer, distributor, supplier, operator, handler,
licensed establishment, licensed truck stop establishment,
licensed large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment if that
person has been found by the Board to:
(1) have a background, including a criminal record,
reputation, habits, social or business associations, or
prior activities that pose a threat to the public interests
of the State or to the security and integrity of video
gaming;
(2) create or enhance the dangers of unsuitable,
unfair, or illegal practices, methods, and activities in
the conduct of video gaming; or
(3) present questionable business practices and

SB3489 - 4 - LRB101 19872 SMS 69392 b
financial arrangements incidental to the conduct of video
gaming activities.
(e) Any applicant for any license under this Act has the
burden of proving his or her qualifications to the satisfaction
of the Board. The Board may adopt rules to establish additional
qualifications and requirements to preserve the integrity and
security of video gaming in this State.
(f) A non-refundable application fee shall be paid at the
time an application for a license is filed with the Board in
the following amounts:
(1) Manufacturer..........................$5,000
(2) Distributor...........................$5,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,500
(5) Technician..............................$100
(6) Terminal Handler........................$100
(7) Licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed
veterans establishment...............................$100
(g) The Board shall establish an annual fee for each
license not to exceed the following:
(1) Manufacturer.........................$10,000
(2) Distributor..........................$10,000
(3) Terminal operator.....................$5,000
(4) Supplier..............................$2,000

SB3489 - 5 - LRB101 19872 SMS 69392 b
(5) Technician..............................$100
(6) Licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, or licensed
veterans establishment..........................$100
(7) Video gaming terminal...................$100
(8) Terminal Handler............................$100
(h) A terminal operator and a licensed establishment,
licensed truck stop establishment, licensed large truck stop
establishment, licensed fraternal establishment, or licensed
veterans establishment shall equally split the fees specified
in item (7) of subsection (g).
(i) Imposing fees for licensed establishments, licensed
truck stop establishments, licensed large truck stop
establishments, licensed fraternal establishments, licensed
veterans establishments, and terminal operators is an
exclusive power and function of the State. A home rule unit may
not impose fees for licensed establishments, licensed truck
stop establishments, licensed large truck stop establishments,
licensed fraternal establishments, licensed veterans
establishments, and terminal operators. This subsection (i) is
a denial and limitation of home rule powers and functions under
subsection (h) of Section 6 of Article VII of the Illinois
Constitution.
(Source: P.A. 100-1152, eff. 12-14-18; 101-31, eff. 6-28-19.)

SB3489 - 6 - LRB101 19872 SMS 69392 b
(230 ILCS 40/60)
Sec. 60. Imposition and distribution of tax.
(a) A tax of 30% is imposed on net terminal income and
shall be collected by the Board.
Of the tax collected under this subsection (a), five-sixths
shall be deposited into the Capital Projects Fund and one-sixth
shall be deposited into the Local Government Video Gaming
Distributive Fund.
(b) Beginning on July 1, 2019, an additional tax of 3% is
imposed on net terminal income and shall be collected by the
Board.
Beginning on July 1, 2020, an additional tax of 1% is
imposed on net terminal income and shall be collected by the
Board.
The tax collected under this subsection (b) shall be
deposited into the Capital Projects Fund.
(c) Revenues generated from the play of video gaming
terminals shall be deposited by the terminal operator, who is
responsible for tax payments, in a specially created, separate
bank account maintained by the video gaming terminal operator
to allow for electronic fund transfers of moneys for tax
payment.
(d) Each licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, and licensed veterans
establishment shall maintain an adequate video gaming fund,

SB3489 - 7 - LRB101 19872 SMS 69392 b
with the amount to be determined by the Board.
(e) The State's percentage of net terminal income shall be
reported and remitted to the Board within 15 days after the
15th day of each month and within 15 days after the end of each
month by the video terminal operator. A video terminal operator
who falsely reports or fails to report the amount due required
by this Section is guilty of a Class 4 felony and is subject to
termination of his or her license by the Board. Each video
terminal operator shall keep a record of net terminal income in
such form as the Board may require. All payments not remitted
when due shall be paid together with a penalty assessment on
the unpaid balance at a rate of 1.5% per month.
(f) A unit of local government with a population under
2,000,000 people is prohibited from applying any additional tax
on net terminal income.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 40/65)
Sec. 65. Fees. Except as provided in this Section, a
non-home rule unit of local government may not impose any fee
for the operation of a video gaming terminal in excess of $100
$25 per year. The City of Rockford may not impose any fee for
the operation of a video gaming terminal in excess of $250 per
year.
Any unit of local government imposing a fee for the
operation of a video gaming terminal in excess of $100 on or

SB3489 - 8 - LRB101 19872 SMS 69392 b
before January 1, 2020 may retain its fee structure but may not
increase fees beyond the limit provided in this Section.
A home rule unit may not regulate the provisions of this
Section in a manner inconsistent with this Section. This
Section is a limitation under subsection (i) of Section 6 of
Article VII of the Illinois Constitution on the concurrent
exercise by home rule units of powers and functions exercised
by the State.
(Source: P.A. 101-337, eff. 1-1-20.)
Section 99. Effective date. This Act takes effect upon
becoming law.