AN ACT to amend the Indiana Code concerning gaming and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
requirements do 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 another event over which the permit
holder has no control.
(c) The commission may by rule adjust any of the following:
(1) The total required number of live racing days under
subsection (b).
(2) The number of live racing days required under subsection
(b)(1).
(3) The number of live racing days required under subsection
(b)(2).
(d) A permit holder may not conduct more than fourteen (14)
races on a particular racing day.
SECTION 7. IC 4-31-5.5-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) As used in
this section, "live racing day" means a day on which at least eight (8)
live horse races are conducted.
(b) The commission's authority to issue satellite facility licenses is
subject to the following conditions:
(1) Except as provided in subsection (c), the commission may
issue four (4) satellite facility licenses to each permit holder that
(A) conducts at least one hundred twenty (120) live racing
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 two
hundred (400) (200) 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) A permit holder licensed to conduct gambling games under
IC 4-35 is limited to the number of satellite facility licenses issued
to the permit holder before January 1, 2007.
SECTION 8. IC 4-31-7-1 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 1. (a) A person holding a
permit to conduct a horse racing meeting or a license to operate a
satellite facility may provide a place in the racing meeting grounds or
enclosure or the satellite facility at which the person may conduct and
supervise the pari-mutuel system of wagering by patrons of legal age
on the horse races conducted or simulcast by the person. The person
may not permit or use:
(1) another place other than that provided and designated by the
person; or
(2) another method or system of betting or wagering.
However, a permit holder licensed to conduct gambling games
under IC 4-35 may permit wagering on slot machines at a
racetrack as permitted by IC 4-35.
(b) Except as provided in section 7 of this chapter and IC 4-31-5.5,
the pari-mutuel system of wagering may not be conducted on any races
except the races at the racetrack, grounds, or enclosure for which the
person holds a permit.
SECTION 9. IC 4-31-7-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 2. (a) A person less than
eighteen (18) years of age may not wager at a horse racing meeting.
(b) A person less than seventeen (17) eighteen (18) years of age
may not enter the grandstand, clubhouse, or similar areas of a racetrack
at which wagering is permitted unless accompanied by a person who
is at least twenty-one (21) years of age.
(c) A person less than eighteen (18) years of age may not enter a
satellite facility.
(d) Except as provided by IC 4-35-7-2, a person less than
twenty-one (21) years of age may not enter the area of a racetrack
in which gambling games are conducted under IC 4-35.
SECTION 10. IC 4-31-9-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. A person that
holds a permit to conduct a horse racing meeting or a license to operate
a satellite facility shall withhold:
(1) eighteen percent (18%) of the total of money wagered on each
day at the racetrack or satellite facility (including money wagered
on exotic wagering pools, but excluding money wagered on slot
machines under IC 4-35); plus
(2) an additional three and one-half percent (3.5%) of the total of
all money wagered on exotic wagering pools on each day at the
racetrack or satellite facility.
SECTION 11. IC 4-33-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 1. This article applies
only to the following:
(1) Counties contiguous to Lake Michigan.
(2) Counties A county that is:
(A) contiguous to the Ohio River; and
(B) described in IC 4-33-6-1(a)(5).
(3) A county that contains a historic hotel district.
SECTION 12. IC 4-33-2-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 9. "Gambling game"
includes any of the following if game approved by the commission as
a wagering device.
(1) Baccarat.
(2) Twenty-one.
(3) Poker.
(4) Craps.
(5) Slot machine.
to subsection (b);
for purposes of collecting the admissions tax under this chapter.
SECTION 16. IC 4-33-12-6, AS AMENDED BY P.L.4-2005,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) The department shall place in the state
general fund the tax revenue collected under this chapter.
(b) Except as provided by subsections (c) and (d) and IC 6-3.1-20-7,
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
embarking on a gambling excursion during the quarter or
admitted to a riverboat that has implemented flexible scheduling
under IC 4-33-6-21 during the quarter shall be paid to:
(A) the city in which the riverboat is docked, if the city:
(i) is located in a county having a population of more than
one hundred ten thousand (110,000) but less than one
hundred fifteen thousand (115,000); or
(ii) is contiguous to the Ohio River and is the largest city in
the county; and
(B) the county in which the riverboat is docked, if the
riverboat is not docked in a city described in clause (A).
(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. In the
case of a county described in subdivision (1)(B), this one dollar
($1) is in addition to the one dollar ($1) received under
subdivision (1)(B).
(3) 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 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 (k) and section 7 of this
chapter, 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;
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), one cent ($0.01) 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 northwest Indiana law enforcement training
center.
(5) 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.
(6) 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.
(7) Except as provided in subsection (k) and section 7 of this
chapter, 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.
(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:
year 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 money, if any, distributed by licensees under
IC 4-35-7-12 to horsemen's associations and for horse racing
purses and breed development in the state fiscal year.
(b) For each state fiscal year, 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 money distributed under IC 4-35-7-12 that
is 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.
SECTION 18. IC 4-33-13-1.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 1.5. (a) This section
applies only to a riverboat that has implemented flexible scheduling
under IC 4-33-6-21 or IC 4-33-6.5.
(b) A graduated tax is imposed on the adjusted gross receipts
received from gambling games authorized under this article as follows:
(1) Fifteen percent (15%) of the first twenty-five million dollars
($25,000,000) of adjusted gross receipts received during the
period beginning July 1 of each year and ending June 30 of the
following year.
(2) Twenty percent (20%) of the adjusted gross receipts in excess
of twenty-five million dollars ($25,000,000) but not exceeding
fifty million dollars ($50,000,000) received during the period
beginning July 1 of each year and ending June 30 of the following
year.
(3) Twenty-five percent (25%) of the adjusted gross receipts in
excess of fifty million dollars ($50,000,000) but not exceeding
seventy-five million dollars ($75,000,000) received during the
period beginning July 1 of each year and ending June 30 of the
following year.
(4) Thirty percent (30%) of the adjusted gross receipts in excess
of seventy-five million dollars ($75,000,000) but not exceeding
one hundred fifty million dollars ($150,000,000) received during
the period beginning July 1 of each year and ending June 30 of
the following year.
(5) Thirty-five percent (35%) of all adjusted gross receipts in
excess of one hundred fifty million dollars ($150,000,000) but
not exceeding six hundred million dollars ($600,000,000)
received during the period beginning July 1 of each year and
ending June 30 of the following year.
(6) Forty percent (40%) of all adjusted gross receipts
exceeding six hundred million dollars ($600,000,000) received
during the period beginning July 1 of each year and ending
June 30 of the following year.
(c) The licensed owner or operating agent shall remit the tax
imposed by this chapter to the department before the close of the
business day following the day the wagers are made.
(d) 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)).
(e) If the department requires taxes to be remitted under this chapter
through electronic funds transfer, the department may allow the
licensed owner or operating agent to file a monthly report to reconcile
the amounts remitted to the department.
(f) The department may allow taxes remitted under this section to
be reported on the same form used for taxes paid under IC 4-33-12.
(g) If a riverboat implements flexible scheduling during any part of
a period beginning July 1 of each year and ending June 30 of the
following year, the tax rate imposed on the adjusted gross receipts
received while the riverboat implements flexible scheduling shall be
computed as if the riverboat had engaged in flexible scheduling during
the entire period beginning July 1 of each year and ending June 30 of
the following year.
(h) If a riverboat:
(1) implements flexible scheduling during any part of a period
beginning July 1 of each year and ending June 30 of the following
year; and
(2) before the end of that period ceases to operate the riverboat
with flexible scheduling;
the riverboat shall continue to pay a wagering tax at the tax rates
imposed under subsection (b) until the end of that period as if the
riverboat had not ceased to conduct flexible scheduling.
SECTION 19. IC 4-33-13-5, AS AMENDED BY P.L.91-2006,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) This subsection does not apply 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 to the
following:
(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 dock of the
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.
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 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).
SECTION 20. IC 4-33-18-9, AS AMENDED BY P.L.91-2006,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9. (a) Nothing in this chapter may be
construed to limit the powers or responsibilities of:
(1) the Indiana state lottery commission under IC 4-30;
(2) the Indiana horse racing commission under IC 4-31; or
(3) the Indiana gaming commission under IC 4-32.2, or IC 4-33,
or IC 4-35.
(b) The department may not exercise any administrative or
regulatory powers with respect to:
(1) the Indiana lottery under IC 4-30;
(2) pari-mutuel horse racing under IC 4-31;
(3) charity gaming under IC 4-32.2; or
(4) riverboat casino gambling under IC 4-33; or
(5) gambling games conducted at a racetrack (as defined in
IC 4-35-2-9) under IC 4-35.
SECTION 21. IC 4-35 IS ADDED TO THE INDIANA CODE AS
A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]:
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) Approve the design, appearance, aesthetics, and
construction of slot machine facilities authorized under this
article.
(6) Adopt emergency rules under IC 4-22-2-37.1 if the
commission determines that:
(A) the need for a rule is so immediate and substantial that
rulemaking procedures under IC 4-22-2-13 through
IC 4-22-2-36 are inadequate to address the need; and
(B) an emergency rule is likely to address the need.
(7) Adopt rules to establish and implement a voluntary
exclusion program that meets the requirements of subsection
(c).
(b) The commission shall begin rulemaking procedures under
IC 4-22-2-13 through IC 4-22-2-36 to adopt an emergency rule
adopted under subsection (a)(6) not later than thirty (30) days after
the adoption of the emergency rule under subsection (a)(6).
(c) Rules adopted under subsection (a)(7) must provide the
following:
(1) Except as provided by rule of the commission, a person
who participates in the voluntary exclusion program agrees
to refrain from entering a facility at which gambling games
are conducted or another facility under the jurisdiction of the
commission.
(2) That the name of a person participating in the program
will be included on a list of persons excluded from all facilities
under the jurisdiction of the commission.
(3) Except as provided by rule of the commission, a person
who participates in the voluntary exclusion program may not
petition the commission for readmittance to a facility under
the jurisdiction of the commission.
(4) That the list of patrons entering the voluntary exclusion
program and the personal information of the participants are
confidential and may only be disseminated by the commission
to the owner or operator of a facility under the jurisdiction of
the commission for purposes of enforcement and to other
entities, upon request by the participant and agreement by the
commission.
(5) That an owner of a facility under the jurisdiction of the
commission shall make all reasonable attempts as determined
by the commission to cease all direct marketing efforts to a
person participating in the program.
(6) That an owner of a facility under the jurisdiction of the
commission may not cash the check of a person participating
in the program or extend credit to the person in any manner.
However, the voluntary exclusion program does not preclude
an owner from seeking the payment of a debt accrued by a
person before entering the program.
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 shall be present through the
commission's gaming agents during the time gambling games are
being conducted at a racetrack to do the following:
(1) Certify the revenue received by a racetrack from gambling
games.
(2) Receive complaints from the public concerning the
operation of gambling games.
(3) Conduct other investigations into the conduct of the
gambling games and the maintenance of the equipment that
the commission considers necessary and proper.
Sec. 5. The commission shall employ gaming agents to perform
duties imposed by this article. A licensee shall, under rules adopted
by the commission under IC 4-22-2, reimburse the commission for:
(1) training expenses incurred to train gaming agents;
(2) salaries and other expenses of staff required to support the
gaming agents; and
(3) salaries and other expenses of the gaming agents required
to be present during the time gambling games are being
conducted at a racetrack.
Sec. 6. The commission may enter into a contract with the
Indiana horse racing commission for the provision of services
necessary to administer this article.
Sec. 7. (a) The commission shall adopt standards for the
licensing of the following:
(1) Persons regulated under this article.
(2) Slot machines used in gambling games.
(b) Where applicable, 68 IAC applies to racetracks conducting
gambling games under this article.
Sec. 8. The commission shall require that the records, including
financial statements, of a licensee must be maintained in the
manner prescribed by the commission.
Sec. 9. (a) The commission may eject or exclude or authorize the
ejection or exclusion of a person from a facility at which gambling
games are conducted if:
(1) the person's name is on the list of persons voluntarily
excluding themselves from all facilities at which gambling
games are conducted in a program established under the rules
of the commission;
(2) the person violates this article; or
(3) the commission determines that the person's conduct or
reputation is such that the person's presence within a facility
at which gambling games are conducted may:
(A) call into question the honesty and integrity of the
gambling games at racetracks; or
(B) interfere with the orderly conduct of the gambling
games at racetracks.
(b) A person, other than a person participating in a voluntary
exclusion program, may petition the commission for a hearing on
the person's ejection or exclusion under this section.
Sec. 10. If a licensee or an employee of a licensee violates this
article or engages in a fraudulent act, the commission may do any
combination of the following:
(1) Suspend, revoke, or restrict the license of the licensee.
(2) Require the removal of a licensee or an employee of a
licensee.
(3) Impose a civil penalty of not more than the greater of:
(A) ten thousand dollars ($10,000); or
(B) an amount equal to the licensee's daily gross receipts
for the day of the violation;
against a licensee for each violation of this article.
(4) Impose a civil penalty of not more than twenty-five
thousand dollars ($25,000) against a person who has been
issued a supplier's license for each violation of this article.
license may not be transferred by the initial licensee for at least
five (5) years after the effective date of the license.
(c) A gambling game license may be transferred for any of the
following reasons:
(1) As a result of a bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial licensee or the
substantial owners of the initial licensee.
(2) Because:
(A) the licensee's license has been cancelled, terminated, or
revoked by the commission; or
(B) the commission determines that transferring the license
is in the best interests of Indiana.
(3) Because of the death of a substantial owner of the initial
licensee.
A transfer permitted under this subsection is subject to section 7 of
this chapter.
Sec. 4.5. A license issued under this article is null and void if the
licensee fails to:
(1) obtain or maintain a permit issued under IC 4-31-5 to
conduct a pari-mutuel wagering horse racing meeting in
Indiana; or
(2) satisfy the requirements of IC 4-31 concerning the amount
of live horse racing that the licensee must conduct at the
licensee's racetrack.
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 comply with the rules adopted by the
commission. A licensee may transfer a gambling game license only
in accordance with this article and the rules adopted by the
commission.
(c) A person may not:
(1) lease;
(2) hypothecate; or
(3) borrow or loan money against;
a gambling game license.
(d) Except as provided in subsection (e), a transfer fee is
imposed on an initial licensee who sells or otherwise relinquishes
a controlling interest, as determined under the rules of the
commission, in a gambling game license. The amount of the fee is
fifty million dollars ($50,000,000).
(e) The fee imposed by subsection (d) does not apply if:
(1) the gambling game license is transferred as a result of an
event described in section 4(c) of this chapter; or
(2) the controlling interest in the gambling game license is
transferred in a transaction in which no gain or loss is
recognized as a result of the transaction in accordance with
Section 351 of the Internal Revenue Code.
(f) The transfer of a gambling game license by a person other
than the initial licensee to receive the gambling game license is not
subject to a transfer fee.
Sec. 8. Except as otherwise provided in this chapter, 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 games at racetracks 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.
Sec. 8. Slot machines operated under this article may be:
(1) repaired on the premises of a racetrack; or
(2) removed for repair from the racetrack to a facility owned
by the licensee.
Sec. 9. (a) Unless a supplier's license is suspended, expires, or is
revoked, the supplier's license may be renewed annually upon:
(1) the payment of a five thousand dollar ($5,000) annual
renewal fee; and
(2) a determination by the commission that the holder of the
supplier's license is in compliance with this article.
(b) The commission shall conduct a complete investigation of
each holder of a supplier's license every three (3) years to
determine whether the holder of the supplier's license is in
compliance with this article.
(c) Notwithstanding subsection (b), the commission may
investigate the holder of a supplier's license at any time the
commission determines it is necessary to ensure that the holder of
the supplier's license is in compliance with this article.
(d) The holder of a supplier's license shall bear the cost of an
investigation or a reinvestigation of the licensee and any
investigation resulting from a potential transfer of ownership.
Sec. 10. 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 6.5. Licensing of Occupations
Sec. 1. The commission shall determine the occupations related
to gambling games at racetracks that require a license under this
chapter.
Sec. 2. (a) The commission may issue an occupational license to
an individual if:
(1) the individual has applied for the occupational license;
(2) a nonrefundable application fee set by the commission has
been paid on behalf of the applicant in accordance with
subsection (b);
(3) the commission has determined that the applicant is
eligible for an occupational license; and
(4) an annual license fee in an amount established by the
commission has been paid on behalf of the applicant in
accordance with subsection (b).
(b) A permit holder that is an applicant for a license under this
article or that is issued a license under this article or a holder of a
supplier's license under this article shall pay the application fee of
an individual applying for an occupational license to work:
(1) in an occupation related to gambling games at the permit
holder's racetrack; or
(2) for the holder of a supplier's license.
A permit holder that is an applicant for a license under this article
or that is issued a license under this article or a holder of a
supplier's license under this article shall pay the annual
occupational license fee on behalf of an employee or potential
employee. A permit holder that is an applicant for a license under
this article or that is issued a license under this article or a holder
of a supplier's license under this article may seek reimbursement
of the application fee or annual license fee from an employee who
is issued an occupational license.
(c) A license issued under this chapter is valid for one (1) year
after the date of issuance.
(d) Unless an occupational license is suspended, expires, or is
revoked, the occupational license may be renewed annually upon:
(1) the payment of an annual license fee by the permit holder
that is issued a license under this article or the holder of a
supplier's license under this article on behalf of the licensee in
an amount established by the commission; and
(2) a determination by the commission that the licensee is in
compliance with this article.
(e) The commission may investigate the holder of an
occupational license at any time the commission determines it is
necessary to ensure that the licensee is in compliance with this
article.