Bill Text: IN HB1415 | 2011 | Regular Session | Introduced
Bill Title: Land based casino in Gary.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-18 - First reading: referred to Committee on Public Policy [HB1415 Detail]
Download: Indiana-2011-HB1415-Introduced.html
Citations Affected: IC 4-33.
Synopsis: Land based casino in Gary. Permits a licensed owner who
operates a riverboat in Gary to submit to the gaming commission a plan
for the construction of an inland casino. Provides that not more than
one riverboat gambling operation may be relocated. Imposes a
$25,000,000 relocation fee. Makes conforming changes. Removes
obsolete provisions concerning the original riverboat licensing process.
Effective: July 1, 2011.
January 18, 2011, read first time and referred to Committee on Public Policy.
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A BILL FOR AN ACT to amend the Indiana Code concerning
gaming.
(1) A self-propelled excursion boat located in a county described in IC 4-33-1-1(1) or IC 4-33-1-1(2) that complies with IC 4-33-6-6(a).
(2) A casino located in a historic hotel district.
(3) A casino located in Gary.
designated as the home of a riverboat by IC 4-33-9-17.
(1) All powers and duties specified in this article.
(2) All powers necessary and proper to fully and effectively execute this article.
(3) Jurisdiction and supervision over the following:
(A) All riverboat gambling operations in Indiana.
(B) All persons on riverboats where gambling operations are conducted.
(4) Investigate and reinvestigate applicants and license holders and determine the eligibility of applicants for licenses or operating agent contracts.
(5) Select among competing applicants the applicants that promote the most economic development in a home
(6) Take appropriate administrative enforcement or disciplinary action against a licensee or an operating agent.
(7) Investigate alleged violations of this article.
(8) Establish fees for licenses issued under this article.
(9) Adopt appropriate standards for the design, appearance, aesthetics, and construction for riverboats and facilities.
(10) Conduct hearings.
(11) Issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records, and other relevant documents.
(12) Administer oaths and affirmations to the witnesses.
(13) Prescribe a form to be used by an operating agent or a licensee involved in the ownership or management of gambling operations as an application for employment by potential employees.
(14) Revoke, suspend, or renew licenses issued under this article.
(15) Hire employees to gather information, conduct investigations, and carry out other tasks under this article.
(16) Take any reasonable or appropriate action to enforce this article.
(b) Applicants and license holders shall reimburse the commission for costs related to investigations and reinvestigations conducted under subsection (a)(4).
(1) located in a historic hotel district; or
(2) described in IC 4-33-2-17(3).
(b) After consulting with the United States Army Corps of Engineers, the commission may do the following:
(1) Determine the waterways that are navigable waterways for purposes of this article.
(2) Determine the navigable waterways that are suitable for the operation of riverboats under this article.
(c) In determining the navigable waterways on which riverboats may operate, the commission shall do the following:
(1) Obtain any required approvals from the United States Army Corps of Engineers for the operation of riverboats on those waterways.
(2) Consider the economic benefit that riverboat gambling provides to Indiana.
(3) Seek to ensure that all regions of Indiana share in the economic benefits of riverboat gambling.
operating agent contract under this article must provide the following
information to the commission:
(1) The name, business address, and business telephone number
of the applicant.
(2) An identification of the applicant.
(3) The following information for an applicant that is not an
individual:
(A) The state of incorporation or registration.
(B) The names of all corporate officers.
(C) The identity of the following:
(i) Any person in which the applicant has an equity interest
of at least one percent (1%) of all shares. The identification
must include the state of incorporation or registration if
applicable. However, an applicant that has a pending
registration statement filed with the Securities and Exchange
Commission is not required to provide information under
this item.
(ii) The shareholders or participants of the applicant. An
applicant that has a pending registration statement filed with
the Securities and Exchange Commission is required to
provide only the names of persons holding an interest of
more than one percent (1%) of all shares.
(4) An identification of any business, including the state of
incorporation or registration if applicable, in which an applicant
or the spouse or children of an applicant has an equity interest of
more than one percent (1%) of all shares.
(5) If the applicant has been indicted, been convicted, pleaded
guilty or nolo contendere, or forfeited bail concerning a criminal
offense other than a traffic violation under the laws of any
jurisdiction. The applicant must include the following information
under this subdivision:
(A) The name and location of the following:
(i) The court.
(ii) The arresting agency.
(iii) The prosecuting agency.
(B) The case number.
(C) The date and type of offense.
(D) The disposition of the case.
(E) The location and length of incarceration.
(6) If the applicant has had a license or certificate issued by a
licensing authority in Indiana or any other jurisdiction denied,
restricted, suspended, revoked, or not renewed. An applicant must
provide the following information under this subdivision:
(A) A statement describing the facts and circumstances
concerning the denial, restriction, suspension, revocation, or
nonrenewal.
(B) The date each action described in clause (A) was taken.
(C) The reason each action described in clause (A) was taken.
(7) If the applicant has:
(A) filed or had filed against the applicant a proceeding in
bankruptcy; or
(B) been involved in a formal process to adjust, defer,
suspend, or work out the payment of a debt;
including the date of filing, the name and location of the court,
and the case and number of the disposition.
(8) If the applicant has filed or been served with a complaint or
notice filed with a public body concerning:
(A) a delinquency in the payment of; or
(B) a dispute over a filing concerning the payment of;
a tax required under federal, state, or local law, including the
amount, type of tax, the taxing agency, and times involved.
(9) A statement listing the names and titles of public officials or
officers of units of government and relatives of the public officials
or officers who directly or indirectly:
(A) have a financial interest in;
(B) have a beneficial interest in;
(C) are the creditors of;
(D) hold a debt instrument issued by; or
(E) have an interest in a contractual or service relationship
with;
an applicant.
(10) If an applicant for an operating agent contract or an owner's
or a supplier's license has directly or indirectly made a political
contribution, loan, donation, or other payment to a candidate or an
office holder in Indiana not more than five (5) years before the
date the applicant filed the application. An applicant must provide
information concerning the amount and method of a payment
described in this subdivision.
(11) The name and business telephone number of the attorney
who will represent the applicant in matters before the
commission.
(12) A description of a proposed or an approved riverboat gaming
operation, including the following information:
(A) The type of boat. riverboat.
(B) The site or home dock location of the riverboat.
(C) The expected economic benefit to local communities.
(D) The anticipated or actual number of employees.
(E) Any statements from the applicant concerning compliance with federal and state affirmative action guidelines.
(F) Anticipated or actual admissions.
(G) Anticipated or actual adjusted gross gaming receipts.
(13) A description of the product or service to be supplied by the applicant if the applicant has applied for a supplier's license.
(14) The following information from each licensee or operating agent involved in the ownership or management of gambling operations:
(A) An annual balance sheet.
(B) An annual income statement.
(C) A list of the stockholders or other persons having at least a one percent (1%) beneficial interest in the gambling activities of the person who has been issued the owner's license or operating agent contract.
(D) Any other information the commission considers necessary for the effective administration of this article.
(1) Two (2) licenses for
(A) Two (2) riverboats may be operated from docks on Lake Michigan at the sites approved before January 1, 2011.
(B) Two (2) riverboats may be operated as follows:
(i) One (1) riverboat may be operated from a dock on Lake Michigan at a site approved before January 1, 2011.
(ii) One (1) riverboat may be operated at an inland location within the city limits at a facility approved after June 30, 2011, under section 23 of this chapter.
(2) One (1) license for a riverboat that operates from
(3) One (1) license for a riverboat that operates from
(4) One (1) license for a
(5) A total of five (5) licenses for riverboats that operate upon the Ohio River from the following counties:
(A) Vanderburgh County.
(B) Harrison County.
(C) Switzerland County.
(D) Ohio County.
(E) Dearborn County.
The commission may not issue a license to an applicant if the issuance of the license would result in more than one (1) riverboat operating from a county described in this subdivision.
(1) The character, reputation, experience, and financial integrity of the following:
(A) The applicant.
(B) A person that:
(i) directly or indirectly controls the applicant; or
(ii) is directly or indirectly controlled by the applicant or by a person that directly or indirectly controls the applicant.
(2) The facilities or proposed facilities for the conduct of riverboat gambling.
(3) The highest prospective total revenue to be collected by the state from the conduct of riverboat gambling.
(4) The good faith affirmative action plan of each applicant to recruit, train, and upgrade minorities in all employment classifications.
(5) The financial ability of the applicant to purchase and maintain adequate liability and casualty insurance.
(6) If the applicant has adequate capitalization to provide and maintain a riverboat for the duration of the license.
(7) The extent to which the applicant exceeds or meets other standards adopted by the commission.
(b) This subsection does not apply to:
(1) a licensed owner constructing a new riverboat under section 23 of this chapter; or
(2) a person applying for an owner's license to assume control of a riverboat on which gambling games have been conducted under an owner's license issued to another person.
In an application for an owner's license, the applicant must submit to the commission a proposed design of the riverboat and the dock. The commission may not grant a license to an applicant if the commission determines that it will be difficult or unlikely for the riverboat to depart from the dock.
(b) In an application for an owner's license, the applicant must state the dock at which the riverboat is based and the navigable waterway on which the riverboat will operate.
(1) have either:
(A) a valid certificate of inspection from the United States Coast Guard for the carrying of at least five hundred (500)
passengers; or
(B) a valid certificate of compliance with marine structural and
life safety standards determined by the commission; and
(2) be at least one hundred fifty (150) feet in length.
(b) This subsection applies only to a riverboat that operates on the
Ohio River. A riverboat must replicate, as nearly as possible, historic
Indiana steamboat passenger vessels of the nineteenth century.
However, steam propulsion or overnight lodging facilities are not
required under this subsection.
(c) A riverboat constructed under section 23 of this chapter
must comply with all applicable building codes and any
construction and safety requirements imposed by the commission.
(b) The holder of an owner's license issued under this chapter may implement flexible scheduling for the operation of the holder's riverboat under section 21 of this chapter.
(c) Except as provided in subsections (d) and (e), an owner's license issued under this chapter must specify the place where the riverboat must operate and dock.
(d) The commission may permit
(e) An owner's license issued with respect to a riverboat constructed under section 23 of this chapter must specify the site of the riverboat.
(b) This subsection applies to a county described in section 1(a)(5) of this chapter if the largest city in the county is contiguous to the Ohio River. The commission may not issue a license authorizing a riverboat to dock in the county unless an ordinance permitting the docking of riverboats in the county has been approved by the legislative body of
the largest city in the county. The license must specify that the home
dock of the riverboat is to be located in the largest city in the county.
(c) This subsection applies to a county described in section 1(a)(5)
of this chapter if the largest city in the county is not contiguous to the
Ohio River. The commission may not issue a license authorizing a
riverboat to dock in the county unless an ordinance permitting the
docking of riverboats in the county has been approved by the county
fiscal body.
(d) This subsection applies to a county in which a historic hotel
district is located. The commission may not enter into a contract under
IC 4-33-6.5 for the operation of a riverboat in the county unless an
ordinance permitting the docking operation of riverboats in the county
has been approved by the county fiscal body.
(e) An ordinance adopted before January 1, 2011, authorizing
a riverboat to dock in a city is sufficient to authorize the operation
of a riverboat described in IC 4-33-2-17(3) in the city.
(b) A licensed owner that:
(1) submits a plan for flexible scheduling to the commission may include provisions; or
(2) has implemented a flexible scheduling plan may amend the plan to include provisions;
to conduct gambling operations for up to twenty-four (24) hours a day. Upon receipt of a plan or an amendment to a plan concerning operating hours, the commission shall authorize the licensed owner to implement the plan or amendment for the days and hours specified in the plan or amendment. The licensed owner shall implement the provisions related to operating days and hours by the date designated by the commission. If the licensed owner fails or ceases to operate in accordance with the authorized provisions concerning operating days and hours, the commission may rescind the authorization.
(c) Notwithstanding subsection (a), a licensed owner operating a riverboat described in IC 4-33-2-17(3) shall implement flexible scheduling.
1, 2011]: Sec. 23. (a) This section applies only to a licensed owner
that operates a riverboat gambling operation in Gary.
(b) A licensed owner may submit to the commission a plan for
the construction of an inland casino within the city limits of the city
of Gary. The plan must include the proposed design of the casino
and any related facilities and amenities.
(c) If:
(1) the commission determines that the plan:
(A) promotes economic development within the city of
Gary; and
(B) satisfies the requirements of this section; and
(2) the licensed owner pays to the commission a relocation fee
of twenty-five million dollars ($25,000,000);
the commission shall approve the licensed owner's plan. However,
not more than one (1) riverboat gambling operation may be
relocated under this section.
(d) The commission shall evaluate an inland casino plan
submitted under this section using the following criteria:
(1) The proposed facilities of the casino and any related
facilities and amenities.
(2) The highest prospective total revenue to be collected by the
state from the conduct of gambling at the casino.
(3) The good faith affirmative action plan of the licensed
owner to recruit, train, and upgrade minorities in all
employment classifications.
(4) The financial ability of the licensed owner to purchase and
maintain adequate liability and casualty insurance.
(5) Whether the applicant has adequate capitalization to
provide and maintain a casino for the duration of the license.
(6) The extent to which the applicant exceeds or meets other
standards adopted by the commission.
(e) A relocation fee collected under this section is not a license
fee for purposes of IC 4-33-4-3. The commission shall deposit a
relocation fee collected under this section in the state general fund.
(1) The city in which a riverboat described in IC 4-33-2-17(1) is docked, if the riverboat is docked in:
(A) a city adjacent to Lake Michigan; or
(B) the largest city of a county adjacent to the Ohio River.
(2) The county in which a riverboat described in IC 4-33-2-17(1) is docked, if the riverboat:
(A) is docked in a county that is adjacent to the Ohio River; but
(B) is not docked in the largest city of that county.
(3) The county in which the riverboat described in IC 4-33-2-17(2) is located.
(4) The city in which the riverboat described in IC 4-33-2-17(3) is located.
(1) The first thirty-three million dollars ($33,000,000) of tax revenues collected under this chapter shall be set aside for revenue sharing under subsection (e).
(2) Subject to subsection (c), twenty-five percent (25%) of the remaining tax revenue remitted by each licensed owner shall be paid:
(A) to the city that is designated as the home
(i) a city described in IC 4-33-12-6(b)(1)(A); or
(ii) a city located in a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000); or
(B) to the county that is designated as the home
(3) Subject to subsection (d), the remainder of the tax revenue remitted by each licensed owner shall be paid to the state general 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
state general 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 remitted by the
operating agent under this chapter as follows:
(1) Thirty-seven and one-half percent (37.5%) shall be paid to the
state general fund.
(2) Nineteen percent (19%) 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 state general fund.
(3) Eight percent (8%) shall be paid to the Orange County
development commission established under IC 36-7-11.5.
(4) Sixteen percent (16%) shall be paid in equal amounts to each
town that is located in the county in which the riverboat is located
and contains a historic hotel. The following apply to taxes
received by a town under this subdivision:
(A) At least twenty-five percent (25%) of the taxes must be
transferred to the school corporation in which the town is
located.
(B) At least twelve and five-tenths percent (12.5%) of the
taxes imposed on adjusted gross receipts received after June
30, 2010, must be transferred to the Orange County
development commission established by IC 36-7-11.5-3.5.
(5) Nine percent (9%) shall be paid to the county treasurer of the
county in which the riverboat is located. The county treasurer
shall distribute the money received under this subdivision as
follows:
(A) Twenty-two and twenty-five hundredths percent (22.25%)
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-two and twenty-five hundredths percent (22.25%)
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) Fifty-five and five-tenths percent (55.5%) shall be retained
by the county in which the riverboat is located for
appropriation by the county fiscal body after receiving a
recommendation from the county executive.
(6) Five percent (5%) shall be paid to 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). At least forty
percent (40%) of the taxes received by a town under this
subdivision must be transferred to the school corporation in which
the town is located.
(7) Five percent (5%) shall be paid to 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). At least
forty percent (40%) of the taxes received by a town under this
subdivision must be transferred to the school corporation in which
the town is located.
(8) Five-tenths percent (0.5%) of the taxes imposed on adjusted
gross receipts received after June 30, 2010, shall be paid to the
Indiana economic development corporation established by
IC 5-28-3-1.
(c) For each city and county receiving money under subsection
(a)(2), the treasurer of state shall determine the total amount of money
paid by the treasurer of state to the city or county during the state fiscal
year 2002. The amount determined is the base year revenue for the city
or county. The treasurer of state shall certify the base year revenue
determined under this subsection to the city or county. The total
amount of money distributed to a city or county under this section
during a state fiscal year may not exceed the entity's base year revenue.
For each state fiscal year, the treasurer of state shall pay that part of the
riverboat wagering taxes that:
(1) exceeds a particular city's or county's base year revenue; and
(2) would otherwise be due to the city or county under this
section;
to the state general fund instead of to the city or county.
(d) Each state fiscal year the treasurer of state shall transfer from the
tax revenue remitted to the state general fund under subsection (a)(3)
to the build Indiana fund an amount that when added to the following
may not exceed two hundred fifty million dollars ($250,000,000):
(1) Surplus lottery revenues under IC 4-30-17-3.
(2) Surplus revenue from the charity gaming enforcement fund
under IC 4-32.2-7-7.
(3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
The treasurer of state shall make transfers on a monthly basis as needed
to meet the obligations of the build Indiana fund. If in any state fiscal
year insufficient money is transferred to the state general fund under
subsection (a)(3) to comply with this subsection, the treasurer of state
shall reduce the amount transferred to the build Indiana fund to the
amount available in the state general fund from the transfers under
subsection (a)(3) for the state fiscal year.
(e) Before August 15 of each year, the treasurer of state shall
distribute the wagering taxes set aside for revenue sharing under
subsection (a)(1) to the county treasurer of each county that does not
have a riverboat according to the ratio that the county's population
bears to the total population of the counties that do not have a
riverboat. Except as provided in subsection (h), the county auditor shall
distribute the money received by the county under this subsection as
follows:
(1) To each city located in the county according to the ratio the
city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio the
town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are
made, the remainder shall be retained by the county.
(f) Money received by a city, town, or county under subsection (e)
or (h) may be used for any of the following purposes:
(1) To reduce the property tax levy of the city, town, or county for a particular year (a property tax reduction under this subdivision does not reduce the maximum levy of the city, town, or county under IC 6-1.1-18.5).
(2) For deposit in a special fund or allocation fund created under IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and IC 36-7-30 to provide funding for 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 state general fund. Except as provided in subsection (i), the amount of 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 each state fiscal year 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).
(1) must be paid to the fiscal officer of the unit and may be 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 or actual levy under IC 6-1.1-18.5; and
(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.
(b) This chapter does not prohibit the city or county designated as the home
(b) The commission shall require persons holding owner's licenses to adopt policies concerning the preferential hiring of residents of the city in which the riverboat
(1) the amount of taxes remitted by the trustee under IC 4-33-12 and IC 4-33-13;
(2) the
(3) the riverboat's employees; and
(4) the creditors of the owner of the riverboat.
(b) In balancing the interests described in subsection (a), a trustee shall conduct gambling operations on the riverboat in a manner that enhances the credibility and integrity of riverboat gambling in Indiana while minimizing disruptions to tax revenues, incentive payments, employment, and credit obligations.
