Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
gaming and to make an appropriation.
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.
days per year at the racetrack designated in the permit holder's
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.
(c) After December 31, 2004, a permit holder may not submit an
initial application for a license to operate an additional satellite
facility under this chapter. After December 31, 2004, the
commission may not issue an initial license for a new satellite
facility. A satellite facility license issued before January 1, 2005,
may be renewed annually subject to the requirements of this
chapter.
[EFFECTIVE JULY 1, 2005]: Sec. 17.5. "Slot machine taxes" means
the state wagering tax imposed on gambling games conducted by
a person holding a gambling games license issued under IC 4-35-5.
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 subsections (k) and (l),
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;
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 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.
(l) The maximum amount paid to the Indiana horse racing
commission under this section in a state fiscal year ending before
July 1, 2007, may not exceed the remainder of:
(1) the Indiana horse racing commission's base year revenue
as determined under subsection (h); minus
(2) the amount of slot machine taxes, if any, paid to the
Indiana horse racing commission under IC 4-35-8-3 in the
state fiscal year.
For a state fiscal year ending before July 1, 2007, the treasurer of
state shall pay the amount of the admissions taxes equal to the
amount of slot machine taxes, if any, subtracted from the Indiana
horse racing commission's base year revenue under this subsection
to the property tax replacement fund instead of to the Indiana
horse racing commission. For a state fiscal year beginning after
June 30, 2007, the Indiana horse racing commission is not entitled
to a distribution of admissions taxes collected under this chapter.
After June 30, 2007, the treasurer of state shall pay the admissions
taxes specified in subsections (b)(6) and (d)(7) to the property tax
replacement fund instead of to the Indiana horse racing
commission.
under IC 4-31-5 to conduct a pari-mutuel horse racing meeting.
Sec. 8. "Racetrack" means the racetrack specified in a permit
holder's permit to conduct a pari-mutuel horse racing meeting.
Sec. 9. "Slot machine" means a type of electronic gaming device
approved by the commission as a wagering device for use under
this article.
Sec. 10. "Supplier's license" means a license issued under
IC 4-35-6.
Chapter 3. General Provisions
Sec. 1. All shipments of slot machines to permit holders 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 permit holder licensed to conduct gambling
games under this article.
Sec. 2. The commission shall do the following:
(1) Adopt rules that the commission determines necessary to
protect or enhance the following:
(A) The credibility and integrity of gambling games
authorized by 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.
(4) Deposit the license fees in the state racetrack gaming fund
established by IC 4-35-8-2.
(5) Levy and collect penalties for noncriminal violations of this
article.
(6) Deposit the penalties in the state racetrack gaming fund
established by IC 4-35-8-2.
(7) 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
at racetracks may be conducted.
(3) Providing for the prevention of practices detrimental to the
public interest.
(4) Establishing rules concerning inspection of gambling game
facilities at racetracks and the review of the permits or
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 a racetrack. The
number of licenses issued under this chapter may not exceed two
(2).
Sec. 2. Before issuing a license to a permit holder under this
chapter, the commission shall subject the permit holder 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. In determining whether to issue a gambling games license
to an applicant, the commission shall consider the following:
(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
gambling games at a racetrack. The applicant must submit to
the commission a proposed design of the slot machine
facilities.
(3) The prospective total revenue to be collected by the state
from the conduct of gambling games under this article.
(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) Whether the applicant has adequate capitalization to
operate a slot machine facility for the duration of the license
period.
obtains an ownership interest in a license must meet the criteria of
this article and any rules adopted by the commission. A permit
holder may transfer a gambling games license only in accordance
with this article and rules adopted by the commission.
(c) A permit holder or any other person may not:
(1) lease;
(2) hypothecate; or
(3) borrow or loan money against;
a gambling games 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 games license previously
issued to another person. The fee is equal to two million dollars
($2,000,000). The commission shall collect and deposit a fee
imposed under this subsection 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) A holder of a supplier's license issued under this
chapter may sell, lease, and contract to sell or lease slot machines
to a permit holder licensed under this article.
(b) Slot machines may not be distributed unless the slot
machines conform to standards adopted by the commission.
Sec. 3. 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;
the supplier's license is in compliance with this article.
(d) A person holding a supplier's license shall bear the cost of an
investigation or a reinvestigation of the person and any
investigation resulting from a potential transfer of ownership.
Chapter 7. Conduct of Gambling Games at Racetracks
Sec. 1. Gambling games authorized by this article may not be
conducted anywhere other than a slot machine facility located at a
racetrack.
Sec. 2. (a) A person 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 racetrack where gambling games are conducted.
(c) A person who is at least eighteen (18) years of age and who
is an employee of the racetrack may be present in the area of the
racetrack 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.
Sec. 3. Minimum and maximum wagers on gambling games
shall be determined by the permit holder who has been issued a
gambling game license under this article.
Sec. 4. The following may inspect a racetrack's slot machine
facilities 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 the slot machine facilities of a permit holder.
Sec. 6. Slot machines may be purchased or leased only from
suppliers licensed under this article.
Sec. 7. A permit holder may not permit any form of wagering
except:
(1) slot machine wagering as permitted under this article; and
(2) pari-mutuel wagering as permitted under IC 4-31.
Sec. 8. Wagers may be received only from a person present in a
racetrack's slot machine facilities. A person present in a racetrack's
slot machine facilities may not place or attempt to place a wager on
behalf of another person who is not present in the racetrack's slot
machine facilities.
Sec. 9. Wagering may not be conducted with money or other
negotiable currency.
Sec. 10. (a) All tokens or electronic cards that are used to make
wagers must be purchased from a permit holder at a racetrack.
(b) The tokens or electronic cards may be purchased by means
of an agreement under which the permit holder extends credit to
the patron.
Sec. 11. Tokens or electronic cards may be used while present at
the racetrack only for the purpose of making wagers on slot
machines authorized by this article.
Sec. 12. A permit holder licensed to conduct gambling games
under this article may not install more than one thousand (1,000)
slot machines on the premises of the permit holder's racetrack.
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 slot machines authorized under
this article at the rate of thirty-two percent (32%).
(b) A permit holder 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.
(c) 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)).
(d) If the department requires taxes to be remitted under this
chapter through electronic funds transfer, the department may
allow the permit holder to file a monthly report to reconcile the
amounts remitted to the department.
(e) The payment of the tax under this section must be on a form
prescribed by the department.
Sec. 2. (a) The state racetrack gaming fund is established.
Money in the fund does not revert to the state general fund at the
end of a state fiscal year.
(b) The department shall deposit tax revenue collected under
section 1 of this chapter in the state racetrack gaming fund.
(c) Money in the fund is appropriated for the 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 racetrack gaming fund under
section 2 of this chapter in a state fiscal year ending before July 1,
2007.
(b) Before the fifteenth day of each month, the treasurer of state
shall distribute the tax revenue deposited in the state racetrack
gaming 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 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.
Sec. 4. (a) This section applies to the tax revenue deposited in the
state racetrack gaming 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, 2007.
(b) Before the fifteenth day of each month, the treasurer of state
shall transfer the remaining tax revenue to the state general fund.
Sec. 5. (a) This section applies to a state fiscal year beginning
after June 30, 2007.
(b) Before the fifteenth day of each month, the treasurer of state
shall transfer the tax revenue deposited in the state racetrack
gaming fund under section 2 of this chapter in the preceding month
to the state general fund.
Sec. 6. (a) A local wagering tax is imposed on the adjusted gross
receipts received from wagering on slot machines authorized under
this article at the rate of eight percent (8%).
(b) A permit holder 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.
(c) 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)).
(d) If the department requires taxes to be remitted under this
chapter through electronic funds transfer, the department may
allow the permit holder to file a monthly report to reconcile the
amounts remitted to the department.
(e) The department may allow taxes remitted under this section
to be reported on the same form used for taxes paid under section
1 of this chapter.
Sec. 7. (a) The local racetrack gaming fund is established.
Money in the fund does not revert to the state general fund at the
end of a state fiscal year.
(b) The department shall deposit tax revenue collected under
section 6 of this chapter in the local racetrack gaming fund.
(c) The treasurer of state shall establish a separate account
within the fund for each county containing a racetrack. Each
account consists of the local wagering taxes remitted by the
county's racetrack under section 6 of this chapter and deposited
into the fund under subsection (b).
(d) Money in the fund is appropriated for the purposes of this
chapter.
Sec. 8. The treasurer of state shall distribute the taxes deposited
in the local racetrack gaming fund as follows:
(1) The tax revenue remitted by a slot machine operation
located at a racetrack that is 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) shall be distributed under section 9 of this chapter.
(2) The tax revenue remitted by a slot machine operation
located at 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) shall be distributed under
section 10 of this chapter.
Sec. 9. In the case of a racetrack described in section 8(1) of this
chapter, the first two hundred thousand dollars ($200,000) of tax
revenue distributed under this section in the first calendar year
that gambling games are conducted at the racetrack located in the
county must be paid to the county treasurer for a one (1) time
distribution to a shelter for victims of domestic violence located in
the county. The first two hundred fifty thousand dollars ($250,000)
of tax revenue distributed under this section in the second calendar
year that gambling games are conducted at the racetrack located
in the county must be paid to a post secondary educational
institution located in the county to support the institution's
electrical engineering programs. The first two hundred thousand
dollars ($200,000) of tax revenue distributed in the third calendar
year that gambling games are conducted at the racetrack located
in the county must be paid to the Madison County Community
Health Center. The remainder of the tax revenues distributed
under this section each year shall be paid as follows:
(1) Thirty-two percent (32%) to the county's economic
development council for distribution under section 11 of this
chapter.
(2) Eighteen percent (18%) to a city having a population of
more than fifty-nine thousand seven hundred (59,700) but less
than sixty-five thousand (65,000).
(3) Twenty percent (20%) to the school corporations located
in the county. The tax revenue distributed under this
subdivision 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.
(4) Fifteen percent (15%) to the incorporated cities and towns
located in the county other than a city described in subdivision
(2). The tax revenue distributed under this subdivision must
be divided among the cities and towns on a pro rata basis
according to the ratio that the population of each city or town
bears to the total population of the county minus the
population of a city described in subdivision (2).
(5) Fourteen and five-tenths percent (14.5%) to the capital
projects fund of the county for distribution by the county
legislative body.
(6) 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.
Sec. 10. In the case of a racetrack that is described in section
8(2) of this chapter, the tax revenues remitted by the racetrack
shall be paid as follows:
(1) Thirty-eight and five-tenths percent (38.5%) to the county.
(2) Thirty-eight and five-tenths percent (38.5%) to a city
having a population of more than seventeen thousand nine
hundred (17,900) but less than eighteen thousand one hundred
(18,100).
(3) Twenty percent (20%) to the school corporations located
in the county. The tax revenue distributed under this
subdivision must be divided among the school corporations on
a pro rata basis according to the ratio that 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.
(4) 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.
(5) Two and five-tenths percent (2.5%) to a town having a
population of more than one thousand (1,000) that is located
in the county.
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 slot machine taxes received under section 9 of this chapter
within the county. Five hundred thousand dollars ($500,000) of the
taxes received each year must be allocated for operations, capital
improvements, and other necessary expenditures of the certified
technology park located in the largest city in the county. The
council may allocate the remainder of the taxes received under
section 9 of this chapter each year for the following purposes:
(1) Economic development projects within the county.
(2) Assisting the Madison County Community Health Center.
(3) Assisting nonprofit organizations located in the county.
If the council determines that the certified technology park located
in the largest city in the county no longer needs the amount of
money provided under this section, the council may reallocate the
taxes for any purpose permitted by this section.
(c) The council consists of the following members:
(1) Two (2) elected officials, who must be members of different
political parties, representing the county, appointed by the
county executive.
(2) Two (2) elected officials, who must be members of different
political parties, representing the largest city in the county,
appointed by the mayor of the city.
(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 executive dean of Ivy Tech Community
College-Anderson or the executive dean's designee.
(6) The president of Anderson University or the president's
designee.
(d) For purposes of this section, "economic development
project" means any project that would be considered an economic
development project under IC 6-3.5-7-13.1.
Sec. 12. (a) Before the fifteenth day of each month, a permit
holder shall pay to the Indiana horse racing commission for the
promotion of horse racing a fee of thirteen percent (13%) of the
permit holder's adjusted gross receipts received from wagering on
slot machines authorized by this article for the previous month.
(b) Subject to subdivision (1)(C), the Indiana horse racing
commission shall distribute the money that is paid under subsection
(a) as follows:
(1) Eighty-one percent (81%) for the following purposes:
(A) Forty-six percent (46%) for thoroughbred purposes as
follows:
(i) Ninety-eight and five-tenths percent (98.5%) for
thoroughbred purses.
(ii) One and two-tenths percent (1.2%) to the horsemen's
association representing thoroughbred owners and
trainers.
(iii) Three-tenths of one percent (0.3%) to the horsemen's
association representing thoroughbred owners and
breeders.
(B) Forty-six percent (46%) for standardbred purposes as
follows:
(i) Ninety-eight and five-tenths percent (98.5%) for
standardbred purses.
(ii) One and five-tenths percent (1.5%) to the horsemen's
association representing standardbred owners and
trainers.
(C) Eight percent (8%) for quarterhorse purposes as
follows:
(i) Ninety-five percent (95%) for quarterhorse purses.
(ii) Five percent (5%) to the horsemen's association
representing quarterhorse 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 eight percent
(8%) of the money paid under this subdivision. If
quarterhorse 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 quarterhorse purposes shall be increased by ten
percent (10%) in the following year. However, the money
distributed under this clause may not exceed eight percent
(8%) of the total amount of money distributed under this
subdivision. If the amount of money distributed under this
clause is less than eight percent (8%) of the total amount of
money distributed under this subdivision in a particular
year, the amounts distributed under clauses (A) and (B) for
that year shall be increased equally in proportional
amounts.
(2) Nineteen percent (19%) to the breed development funds
established under IC 4-31-11-10 in the same proportion that
money is distributed for the purposes of each breed under
subdivision (1).
Sec. 13. (a) As used in this section, "political subdivision" means
a county, township, city, town, separate municipal corporation,
special taxing district, or school corporation.
(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.
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 racetrack licensed to conduct
gambling games under this article;
to enter or attempt to enter the racetrack's slot machine operation
commits a Class A misdemeanor.
Sec. 3. A person who:
(1) is not an employee of a racetrack licensed to conduct
gambling games under this article;
(2) is less than twenty-one (21) years of age; and
(3) knowingly or intentionally enters the racetrack's slot
machine operation;
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 or accepts a wager at a location other than a
racetrack's slot machine operation;
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 permit holder,
including an officer or an employee of a permit holder; 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 permit holder,
including an officer or employee of a permit holder; 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 the game;
(B) analyzing the probability of the occurrence of an event
relating to the gambling game; or
(C) analyzing the strategy for playing or betting to be used
in the 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) for the purpose of placing 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 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, 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 permit holder or an
employee of a permit holder 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 games license is issued
authorizing a person to conduct gambling games under this article
at the permit holder's racetrack.
(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 Indiana gaming commission in rules adopted under
IC 4-22-2.
Sec. 2. The 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.".
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; or
(3) a gambling game operated in accordance with IC 4-35.