Citations Affected: IC 4-31; IC 4-33; IC 4-35; IC 6-1.1-21.9;
IC 6-8.1-1-1; IC 35-45-5.
Synopsis: Agriculture, gaming, and economic development.
Appropriates $25,000,000 to the department of agriculture to promote
agriculture based economic development, conservation, research, and
education. Provides a 3.5% credit against the property taxes imposed
on qualified residential property. Authorizes slot machines at
racetracks. Requires a permit holder who offers slot machines to
terminate the permit holder's satellite facility operations. Imposes a
state wagering tax of 32% of the adjusted gross receipts from slot
machine wagering. Redirects certain riverboat admissions taxes from
the horse racing commission to the state general fund. Reduces the
supplemental distribution paid to the horse racing commission in state
fiscal years ending before July 1, 2008, and eliminates the
supplemental distribution after June 30, 2008. Provides for the annual
distribution of state slot machine wagering taxes. Imposes a local
wagering tax of 4%. Provides for the distribution of the local taxes in
Madison County and Shelby County. Imposes a horse racing promotion
fee of 15.25% of the adjusted gross receipts from slot machine
wagering. Provides for the distribution of the fees to purses, breed
development, and the associations representing owners, breeders, and
trainers. Requires 160 live racing days each year.
Effective: July 1, 2006; January 1, 2007.
January 5, 2006, read first time and referred to Committee on Public Policy and Veterans
Affairs.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration and to make an appropriation.
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2006]: Sec. 17.5. "Slot machine taxes" means the state wagering
tax imposed on gambling games conducted by a person holding a
gambling game license issued under IC 4-35-5.
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.
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.
(e) Money paid to a unit of local government under subsection
(b)(1) through (b)(2), (c)(1) through (c)(2), or (d)(1) through (d)(2):
(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 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 exceeds 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.
1, 2006]: Sec. 7. (a) The maximum amount paid to the Indiana
horse racing commission under this article in a state fiscal year
ending before July 1, 2008, may not exceed the remainder of:
(1) the Indiana horse racing commission's base year revenue
as determined under section 6(h) of this chapter; minus
(2) the amount of slot machine taxes, if any, distributed to the
Indiana horse racing commission under IC 4-35-8-3 in the
state fiscal year.
(b) For a state fiscal year ending before July 1, 2008, the
treasurer of state shall pay an amount equal to the lesser of:
(1) the amount of admissions taxes specified in:
(A) section 6(b)(6) of this chapter; and
(B) section 6(d)(7) of this chapter; or
(2) the amount of slot machine taxes subtracted from the
Indiana horse racing commission's base year revenue under
subsection (a);
to the state general fund instead of to the Indiana horse racing
commission.
(c) For a state fiscal year beginning after June 30, 2008, the
Indiana horse racing commission is not entitled to a distribution of
admissions taxes collected under this chapter. After June 30, 2008,
the treasurer of state shall pay the total amount of admissions taxes
specified in:
(1) section 6(b)(6) of this chapter; and
(2) section 6(d)(7) of this chapter;
to the state general fund instead of to the Indiana horse racing
commission.
riverboat from which the tax revenue was collected, in the case
of:
(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 dock of the
riverboat from which the tax revenue was collected, in the case
of a riverboat whose home dock is not in a city described in
clause (A).
(3) Subject to subsection (d), the remainder of the tax revenue
remitted by each licensed owner shall be paid to the property tax
replacement 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 property tax replacement 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 deposited in the state
gaming fund under this chapter as follows:
(1) Thirty-seven and one-half percent (37.5%) shall be paid to the
property tax replacement fund established under IC 6-1.1-21.
(2) Thirty-seven and one-half percent (37.5%) 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 property tax replacement fund established under
IC 6-1.1-21.
(3) Five percent (5%) shall be paid to the historic hotel
preservation commission established under IC 36-7-11.5.
(4) Ten percent (10%) 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.
(5) Ten percent (10%) 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
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) 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).
(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 property tax replacement 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 property tax replacement 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 4-32-10-6.
(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 property tax replacement
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 property tax replacement
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 additional credits for property
tax replacement in property tax increment allocation areas or 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 property tax replacement fund. Except as provided
in subsection (i), the amount of the 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 a state fiscal year ending before July 1, 2008, the
amount of the Indiana horse racing commission's supplemental
distribution under subsection (g) must be reduced by the amount
required under IC 4-33-12-7(a). For a state fiscal year beginning
after June 30, 2008, the Indiana horse racing commission is not
entitled to a supplemental distribution under subsection (g).
article.
Sec. 2. "Adjusted gross receipts" means:
(1) the total of all cash and property (including checks
received by a licensee, whether collected or not) received by
a licensee from gambling games; minus
(2) the total of:
(A) all cash paid out to patrons as winnings for gambling
games; and
(B) uncollectible gambling game receivables, not to exceed
the lesser of:
(i) a reasonable provision for uncollectible patron checks
received from gambling games; or
(ii) two percent (2%) of the total of all sums, including
checks, whether collected or not, less the amount paid
out to patrons as winnings for gambling games.
For purposes of this section, a counter or personal check that is
invalid or unenforceable under this article is considered cash
received by the licensee from gambling games.
Sec. 3. "Commission" refers to the Indiana gaming commission
established by IC 4-33-3-1.
Sec. 4. "Department" refers to the department of state revenue.
Sec. 5. "Gambling game" means a game played on a slot
machine.
Sec. 6. "Licensee" means a permit holder holding a gambling
game license issued under IC 4-35-5.
Sec. 7. "Permit holder" means a person holding a permit issued
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 licensees 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 licensee under this article.
Sec. 2. The commission shall do the following:
(1) Adopt rules that the commission determines are necessary
to protect or enhance the following:
(A) The credibility and integrity of gambling games
authorized under 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, and deposit the license fees in the
state general fund.
(4) Levy and collect penalties for noncriminal violations of
this article, and deposit the penalties in the state general fund.
(5) 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 the inspection of gambling
game facilities at racetracks and the review of the 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 the permit holder's
racetrack. The number of licenses issued under this chapter may
not exceed two (2).
Sec. 2. Before issuing a license to a person under this chapter,
the commission shall subject the person 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. A permit holder that is issued a gambling game license
under this article must do the following:
(1) Agree to terminate the operations of each satellite facility
operated by the permit holder under IC 4-31-5.5 before
January 1, 2008.
(2) Pay an initial licensing fee equal to the product of:
(A) forty thousand dollars ($40,000); multiplied by
(B) the number of slot machines that the permit holder will
place into service at the permit holder's racetrack.
The fee required under this section must be paid to the commission
before September 1, 2006.
Sec. 4. An initial gambling game license expires five (5) years
after the effective date of the license. Unless the gambling game
license is terminated or revoked, the gambling game license may be
renewed annually thereafter upon:
(1) the payment of an annual renewal fee of five thousand
dollars ($5,000); and
(2) a determination by the commission that the licensee
satisfies the conditions of this chapter.
Sec. 5. (a) The commission shall conduct a complete
investigation of each licensee every three (3) years to determine
whether the licensee remains in compliance with this article.
(b) Notwithstanding subsection (a), the commission may
investigate a licensee at any time the commission determines it is
necessary to ensure that the licensee remains in compliance with
this article.
Sec. 6. A permit holder or other person investigated under this
chapter shall bear the cost of the investigation.
Sec. 7. (a) A licensee or any other person must apply for and
receive the commission's approval before:
(1) a gambling game license is:
(A) transferred;
(B) sold; or
(C) purchased; or
(2) a voting trust agreement or other similar agreement is
established with respect to the gambling game license.
(b) The commission shall adopt rules governing the procedure
a licensee or other person must follow to take an action under
subsection (a). The rules must specify that a person who obtains an
ownership interest in a gambling game license must meet the
criteria of this article and rules adopted by the commission. A
licensee may transfer a gambling game license only in accordance
with this article and rules adopted by the commission.
(c) A licensee or any other person may not:
(1) lease;
(2) hypothecate; or
(3) borrow or loan money against;
a gambling game 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 game license previously
issued to another person. The fee is equal to two million dollars
($2,000,000).
Sec. 8. The commission shall transfer:
(1) fees collected under this chapter; and
(2) all investigation costs recovered under this chapter;
to the treasurer of state for deposit 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 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;
(4) the person is an officer, a director, or a managerial
employee of a person described in subdivision (1) or (2);
(5) the person employs an individual who:
(A) is described in subdivision (1), (2), or (3); or
(B) participates in the management or operation of
gambling operations authorized under this article;
(6) the person owns more than a ten percent (10%) ownership
interest in any other person holding a permit issued under
IC 4-31; or
(7) a license issued to the person:
(A) under this article;
(B) under IC 4-33-7; or
(C) to supply gaming supplies in another jurisdiction;
has been revoked.
Sec. 3. A holder of a supplier's license may:
(1) sell;
(2) lease; or
(3) contract to sell or lease;
a slot machine to a licensee.
Sec. 4. A person may not furnish slot machines to a licensee
unless the person possesses a supplier's license.
Sec. 5. A slot machine may not be distributed for use under this
article unless the slot machine conforms to standards adopted by
the commission.
Sec. 6. (a) A supplier shall furnish to the commission a list of all
slot machines offered for sale or lease in connection with gambling
games authorized under this article.
(b) A supplier shall keep books and records for the furnishing
of slot machines to licensees. The books and records required
under this subsection must be kept separate from the books and
records of any other business operated by the supplier.
(c) A supplier shall file a quarterly return with the commission
listing all sales and leases.
(d) A supplier shall permanently affix the supplier's name to all
slot machines that the supplier provides to licensees under this
chapter.
Sec. 7. If the commission determines that a supplier's slot
machine has been used by a person in an unauthorized gambling
operation, the slot machine shall be forfeited to the state.
allow the licensee 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.
(b) The department shall deposit tax revenue collected under
section 1 of this chapter in the state racetrack gaming fund.
(c) Money in the state racetrack gaming fund is appropriated
for 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 in a
state fiscal year ending before July 1, 2008.
(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 subdivision only for purses, promotions,
and routine operations of the racetrack. A grant may not be
made for long term capital investment or construction, and a
grant may not 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, 2008.
(b) The treasurer of state shall transfer the first one hundred
million dollars ($100,000,000) of the tax revenue described in
subsection (a) to the state general fund.
(c) After making the transfer required by subsection (b), the
treasurer of state shall transfer the remaining amount of tax
revenue deposited in the state racetrack gaming fund in a state
fiscal year ending before July 1, 2008, to the revenue sharing fund
established by section 10 of this chapter.
(d) Money deposited in the state general fund under this section
must be used to provide supplemental residential property tax
replacement credits under IC 6-1.1-21.9.
Sec. 5. (a) This section applies to a state fiscal year beginning
after June 30, 2008.
(b) The treasurer of state shall transfer the first one hundred
million dollars ($100,000,000) of the tax revenue deposited in the
state racetrack gaming fund in a state fiscal year to the state
general fund.
(c) After making the transfer required by subsection (b), the
treasurer of state shall transfer the remaining amount of tax
revenue deposited in the state racetrack gaming fund in a state
fiscal year to the revenue sharing fund established by section 10 of
this chapter.
(d) Money deposited in the state general fund under this section
must be used to provide supplemental residential property tax
replacement credits under IC 6-1.1-21.9.
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 four percent (4%).
(b) A licensee 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 licensee 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 local racetrack gaming 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 local racetrack gaming 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 in the local racetrack gaming fund under subsection
(b).
(d) Money in the local racetrack gaming fund is appropriated
for purposes of this chapter.
Sec. 8. The treasurer of state shall distribute the taxes deposited
in each account established under section 7 of this chapter for each
county containing a racetrack 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.
Sec. 9. (a) Before the fifteenth day of each month, a licensee
shall pay to the Indiana horse racing commission for the promotion
of horse racing a fee of fifteen and twenty-five hundredths percent
(15.25%) of the licensee's adjusted gross receipts received for the
previous month from wagering on slot machines authorized by this
article. Money received under this subsection must be spent as
follows:
(1) One and five-tenths percent (1.5%) for equine welfare.
(2) One and five-tenths percent (1.5%) for backside
benevolence.
(3) Ninety-seven percent (97%) to promote horses and horse
racing in accordance with subsection (c).
(b) The Indiana horse racing commission may expend the
amounts described in subsection (a)(1) through (a)(2) for a purpose
promoting equine welfare or for a benevolent purpose that the
Indiana horse racing commission determines in its sole discretion
to be in the best interests of horse racing in Indiana.
(c) The Indiana horse racing commission shall distribute the
amount described in subsection (a)(3) as follows:
(1) Forty-six percent (46%) for thoroughbred purposes as
follows:
(A) Seventy percent (70%) for the following purposes:
(i) Ninety-eight percent (98%) for thoroughbred purses.
(ii) One percent (1%) to the horsemen's association
representing thoroughbred owners and trainers.
(iii) One percent (1%) to the horsemen's association
representing thoroughbred owners and breeders.
(B) Thirty percent (30%) to the breed development fund
established for thoroughbreds under IC 4-31-11-10.
(2) Forty-six percent (46%) for standardbred purposes as
follows:
(A) Fifty percent (50%) for the following purposes:
(i) Ninety-eight percent (98%) for standardbred purses.
(ii) Two percent (2%) to the horsemen's association
representing standardbred owners and trainers.
(B) Fifty percent (50%) to the breed development fund
established for standardbreds under IC 4-31-11-10.
(3) Eight percent (8%) for quarter horse purposes as follows:
(A) Seventy percent (70%) for the following purposes:
(i) Ninety-five percent (95%) for quarter horse purses.
(ii) Five percent (5%) to the horsemen's association
representing quarter horse 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 five and
six-tenths percent (5.6%) of the total amount of money
distributed under this subsection. If quarter horse 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 quarter horse purposes shall be
increased by ten percent (10%) in the following year.
However, the money distributed under this clause may not
exceed five and six-tenths percent (5.6%) of the total
amount of money distributed under this subsection. If the
amount of money distributed under this clause is less than
five and six-tenths percent (5.6%) of the total amount of
money distributed under this subsection in a particular
year, the amounts distributed under subdivisions (1)(A)
and (2)(A) for that year shall be increased equally in
proportional amounts.
(B) Thirty percent (30%) to the breed development fund
established for quarter horses under IC 4-31-11-10.
Sec. 10. (a) As used in this section, "eligible county" means a
county that does not contain either of the following:
(1) A riverboat licensed under IC 4-33.
(2) A racetrack authorized to conduct gambling games under
this article.
(b) The revenue sharing fund is established. The revenue
sharing fund shall be administered by the treasurer of state. The
treasurer of state shall invest the money in the revenue sharing
fund not currently needed to meet the obligations of the revenue
sharing fund in the same manner as other public funds may be
invested. Interest that accrues from these investments shall be
deposited in the revenue sharing fund. Money in the revenue
sharing fund does not revert to the state general fund at the end of
a state fiscal year.
(c) Before August 15, the treasurer of state shall distribute the
money deposited in the revenue sharing fund under this chapter in
the previous state fiscal year to the county treasurer of each
eligible county. Except as otherwise provided in this subsection,
each county treasurer is entitled to a distribution of five hundred
thousand dollars ($500,000). If the amount of money deposited in
the revenue sharing fund in the previous state fiscal year is
insufficient to distribute the amount specified in this subsection,
each county's distribution amount must be reduced equally.
(d) The county auditor shall distribute the money received by an
eligible county under subsection (c) 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.
(e) Money in the revenue sharing fund is appropriated
continuously for purposes of this section.
Sec. 11. (a) As used in this section, "political subdivision" means
a county, city, or town.
(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
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 game license is issued to the
permit holder under IC 4-35-5.
(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 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.
the county auditor the amount of the assessed valuation of each
parcel of qualified residential property for which a credit has been
properly filed under this chapter.
(f) The county auditor shall apply the credit equally to each
installment of taxes that the person pays for the property.
Sec. 4. (a) A person who desires to claim the credit provided by
section 3 of this chapter must file a certified statement in duplicate,
on forms prescribed by the department of local government
finance, with the auditor of the county in which the qualified
residential property is located.
(b) The statement required under this section must include:
(1) the parcel number or key number of the real estate; and
(2) the name of the city, town, or township in which the real
estate is located.
(c) With respect to real property, the statement must be filed
during the twelve (12) months before May 11 of the year before the
first year for which the person wishes to obtain the credit for the
qualified residential property.
(d) With respect to a mobile home that is not assessed as real
property or a manufactured home that is not assessed as real
property, the statement must be filed during the twelve (12)
months before March 2 of the first year for which the person
wishes to obtain the credit.
(e) The statement may be filed in person or by mail. If mailed,
the mailing must be postmarked on or before the last day for filing.
The statement applies for the first year and any succeeding year
for which the credit is allowed.
(f) If a person who is receiving the credit provided by this
chapter changes the use of the person's real property, so that part
or all of that real property no longer qualifies for the credit
provided by this chapter, the person must file a certified statement
with the auditor of the county, notifying the auditor of the change
of use not later than sixty (60) days after the date of that change.
(g) A person who fails to file a statement required by subsection
(f) is liable for the amount of the credit the person was allowed
under this chapter for that real property after the date of the
change.
Sec. 5. Before April 1 of each year before the year in which the
credit is allowed, the auditor of each county shall certify to the
department of local government finance the amount of the assessed
valuation that qualifies for the supplemental residential property
tax replacement credit. Before February 1 of each year, the auditor
of each county shall certify to the department of local government
finance the amount of credits allowed under this chapter in that
county for that calendar year.