Citations Affected: IC 4-31; IC 4-32.2; IC 4-36; IC 6-2.5; IC 6-8.1;
IC 7.1-3; IC 27-1; IC 35-45; noncode.
Effective: Upon passage; July 1, 2008.
January 10, 2008, read first time and referred to Committee on Public Policy.
January 24, 2008, amended, reported _ Do Pass.
January 28, 2008, read second time, amended, ordered engrossed.
the county and the cities, towns, and school corporations located in the county. Provides that the allocations may be used for any lawful purpose. Requires a person who holds a retailers license or permit to sell alcoholic beverages for consumption on the premises to procure and maintain a policy of liability insurance after December 31, 2008, to cover the person's liability for damages arising out of the person's sale of alcoholic beverages. Authorizes persons to join together for the purchase of a group policy. Authorizes the sale of a group policy. Provides a procedure for a person who holds a license or permit to obtain a certificate of self-insurance from the department of insurance as an alternative to procuring insurance. Requires the commissioner of the department of insurance to adopt rules to establish minimum amounts of insurance coverage and self-insurance. Makes an appropriation.
A BILL FOR AN ACT to amend the Indiana Code concerning
gaming and to make an appropriation.
conducted on any races except the races at the racetrack, grounds, or
enclosure for which the person holds a permit.
by IC 4-31-7.5-5).
conducted within or outside Indiana. Wagers made under this
chapter are considered to have been made in Indiana.
(b) A licensed SPMO must have a single written contract signed
by each permit holder. The contract must be approved by the
commission. The contract must:
(1) specify the manner in which the amount of the source
market fee is determined for each permit holder; and
(2) govern all other aspects of the business relationship
between the licensed SPMO and each permit holder.
(c) A permit holder may not enter into an exclusive agreement
with a licensed SPMO.
Sec. 11. The commission shall adopt rules under IC 4-22-2,
including emergency rules, to implement this chapter, including
but not limited to rules that prescribe:
(1) procedures for verifying the age of a person opening an
advance deposit wagering account or placing a wager with a
licensed SPMO;
(2) requirements for opening and administering advance
deposit wagering accounts;
(3) a guarantee or acceptable surety that the full value of
balances in an advance deposit wagering account will be paid;
(4) record keeping requirements;
(5) licensure procedures, including investigation of applicants,
forms for licensure and procedures for renewal; and
(6) civil penalties for violations of this chapter or a rule
adopted by the commission.
Sec. 12. A licensed SPMO shall comply with all applicable
federal laws.
Sec. 13. A secondary pari-mutuel organization applying for a
license under this chapter must provide:
(1) Written evidence of approval, by the appropriate
regulatory authority in each state where the secondary
pari-mutuel organization is licensed, to conduct advance
deposit wagering.
(2) A copy of a proposed contract executed by the applicant
and each permit holder to satisfy the requirements of section
10 of this chapter.
(3) A nonrefundable application fee of five thousand dollars
($5,000).
(4) A complete application on a form prescribed by the
commission.
(5) Any other information required by the commission.
commission.
(d) A license issued under this section is not required for raffles
permitted under section 13 of this chapter at events held under a
bingo license, a special bingo license, a charity game night license,
a door prize license, or an annual door prize license.
A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2008]:
ARTICLE 36. TYPE II GAMING IN ESTABLISHMENTS
LICENSED TO SELL ALCOHOLIC BEVERAGES
Chapter 1. General Provisions
Sec. 1. Under 15 U.S.C. 1172, approved January 2, 1951, the
state of Indiana, acting by and through the elected and qualified
members of the legislature, declares that the state is exempt from
15 U.S.C. 1172.
Sec. 2. All shipments of gambling games authorized under this
article to distributors and retailers 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 the
state of Indiana.
Sec. 3. This article does not apply to the following:
(1) The Indiana state lottery established under IC 4-30.
(2) Pari-mutuel horse racing under IC 4-31.
(3) Charity gaming under IC 4-32.2.
(4) Riverboat gambling under IC 4-33.
(5) Slot machine wagering under IC 4-35.
Sec. 4. Nothing in this article may be construed to authorize the
use of an electronic gaming device in a type II gambling operation.
Chapter 2. Definitions
Sec. 1. The definitions in this chapter apply throughout this
article.
Sec. 2. "Commission" means the Indiana gaming commission.
Sec. 3. "Deal" means each separate game or series of pull tab
tickets with a specific form number and a unique serial number.
Sec. 4. "Department" refers to the department of state revenue.
Sec. 5. "Distributor" means a person licensed to distribute pull
tabs, punchboards, and tip boards under IC 4-32.2.
Sec. 6. "Electronic gaming device" has the meaning set forth in
IC 35-45-5-1.
Sec. 7. "Executive director" means the executive director of the
Indiana gaming commission appointed under IC 4-33-3-18.
Sec. 8. "Flare" means the board or placard that accompanies
each deal of pull tabs on which the following information is
printed:
(1) The game name.
(2) The manufacturer's name or distinctive logo.
(3) The form number.
(4) The ticket count.
(5) The prize structure.
(6) The cost per play.
(7) The game serial number.
Sec. 9. "Form number" means the unique number or
alphanumeric code that identifies a game's cost per play, ticket
count, payout structure, and extended payout structure, if any.
Sec. 10. "Fund" means the type II gaming enforcement fund
established by IC 4-36-6-3.
Sec. 11. "Gross receipts" means the total amount of money
exchanged for the purchase of raffle tickets, pull tabs,
punchboards, and tip boards by type II gaming patrons.
Sec. 12. "Licensed premises" has the meaning set forth in
IC 7.1-1-3-20.
Sec. 13. "Licensee" means a person holding a license issued
under this article.
Sec. 14. "Manufacturer" means a person licensed to
manufacture pull tabs, punchboards, and tip boards under
IC 4-32.2.
Sec. 15. "Person" means an individual, a sole proprietorship, a
partnership, an association, a fiduciary, a corporation, a limited
liability company, or any other business entity.
Sec. 16. "Pull tab" has the meaning set forth in IC 4-32.2-2-22.
Sec. 17. "Punchboard" has the meaning set forth in
IC 4-32.2-2-23.
Sec. 18. "Raffle" means the selling of tickets or chances to win
a prize awarded through a random drawing.
Sec. 19. "Retailer" means a person that is licensed:
(1) to sell alcoholic beverages under IC 7.1-3 to customers for
consumption on the person's licensed premises; and
(2) to conduct type II gambling games under a retailer's
license issued under IC 4-36-4.
Sec. 20. "Tip board" has the meaning set forth in
IC 4-32.2-2-28.
Sec. 21. "Type II gambling game" means a pull tab,
punchboard, or tip board game approved by the commission for
play under both IC 4-32.2 and this article.
Sec. 22. "Type II gambling operation" means the conduct of
gambling games authorized under this article in a licensed
establishment.
Chapter 3. Powers and Duties of the Commission
Sec. 1. (a) The commission shall supervise and administer type
II gambling operations conducted in Indiana under this article.
(b) The commission shall enforce this article.
(c) The commission may by resolution assign to the executive
director any duty imposed upon the commission by this article.
(d) The executive director shall perform the duties assigned to
the executive director by the commission. The executive director
may exercise any power conferred upon the commission by this
article that is consistent with the duties assigned to the executive
director under subsection (c).
Sec. 2. For purposes of conducting an investigation or a
proceeding under this article, the commission may do the
following:
(1) Administer oaths.
(2) Take depositions.
(3) Issue subpoenas.
(4) Compel the attendance of witnesses and the production of
books, papers, documents, and other evidence.
Sec. 3. (a) The commission may adopt rules under IC 4-22-2 for
the establishment, implementation, and operation of type II
gambling games and to ensure that the type II gambling operations
are consistently operated in a fair and honest manner.
(b) The commission may adopt emergency rules under
IC 4-22-2-37.1 for the administration of this article if the
commission determines that:
(1) 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
(2) an emergency rule is likely to address the need.
Sec. 4. (a) The commission has the sole authority to issue a
license to a person authorizing the person to sell, distribute, or
manufacture type II gambling games under this article.
(b) The commission may not limit the number of persons
licensed under this article.
Chapter 4. Licensing
Sec. 1. The commission may issue a retailer's license to an
applicant that satisfies the requirements of this article. A retailer's
license allows the retailer to conduct type II gaming at only the
licensed premises specified in the retailer's application under
section 3(b)(2) of this chapter. An applicant must obtain a separate
retailer's license for each licensed premises on which the applicant
wishes to conduct type II gaming.
Sec. 2. (a) To qualify for a retailer's license, a person must
operate an establishment licensed under IC 7.1-3 to sell alcoholic
beverages to customers for consumption on the person's licensed
premises.
(b) Notwithstanding subsection (a), the following may not apply
for a retailer's license under this article:
(1) A person holding a horse track permit under IC 7.1-3-17.7.
(2) A licensed owner of a riverboat licensed under IC 4-33.
(3) An operating agent who operates a riverboat in a historic
hotel district under IC 4-33.
(4) A qualified organization (as defined in IC 4-32.2-2-24).
(5) A person holding a gambling game license issued under
IC 4-35-5.
Sec. 3. (a) To obtain a retailer's license, a person must submit an
application form to the commission.
(b) An application submitted under this section must include at
least the following:
(1) The name and address of the applicant and of any person
holding at least a ten percent (10%) interest in the applicant.
(2) The name and address of the licensed premises for which
the applicant seeks a retailer's license.
(3) The applicant's consent to credit investigations and
criminal record searches.
(4) Waivers and releases signed by the applicant that the
commission believes are necessary to ensure a full and
complete review of the application.
(c) An applicant must furnish all information requested by the
commission, including financial data and documents, certifications,
consents, waivers, and individual histories.
(d) The commission shall review the applications for a retailer's
license under this chapter and shall inform each applicant of the
commission's decision concerning the issuance of a retailer's
license.
Sec. 4. The costs of investigating an applicant for a retailer's
license under this chapter shall be paid from the initial license fee
paid by the applicant under section 5 of this chapter.
Sec. 5. (a) The commission shall charge the following fees for the
issuance of a person's initial annual license under this chapter:
(1) Two hundred fifty dollars ($250) for a retailer's license to
conduct a type II gambling operation in the retailer's licensed
premises.
(2) One thousand dollars ($1,000) for a distributor's license.
(3) One thousand five hundred dollars ($1,500) for a
manufacturer's license.
(b) The commission shall charge the following fees for the
renewal of a person's annual license under this chapter:
(1) The amount determined under section 6 of this chapter for
a retailer's license.
(2) One thousand dollars ($1,000) for a distributor's license.
(3) One thousand five hundred dollars ($1,500) for a
manufacturer's license.
Sec. 6. (a) For the purposes of subsection (c), a retailer's
adjusted gross revenue is an amount equal to the difference
between:
(1) the retailer's total gross revenue from the retailer's type II
gambling operations in the preceding year; minus
(2) the sum of any amounts deducted under subsection (b) in
the preceding year.
(b) To determine the amount of a retailer's adjusted gross
revenue from the retailer's type II gambling operations in the
preceding year under subsection (a), the retailer shall subtract the
following from the retailer's gross receipts:
(1) An amount equal to the total value of the prizes awarded
in the preceding year.
(2) The sum of the purchase prices paid for type II gambling
games dispensed in the retailer's type II gambling operation
in the preceding year.
(3) An amount equal to the amount of license fees paid by the
retailer in the preceding year.
(c) The license fee that is charged to a retailer that renews the
license must be based on the adjusted gross revenue from the
retailer's type II gambling operations in the preceding year,
according to the following schedule:
Class Adjusted Gross Revenues
Fee
At Least But Less Than
A $ 0
$ 15,000
$ 50
B $ 15,000
$ 25,000
$ 100
C $ 25,000
$ 50,000
$ 300
D $ 50,000
$ 75,000
$ 400
E $ 75,000
$ 100,000
$ 700
F $ 100,000
$ 150,000
$ 1,000
G $ 150,000
$ 200,000
$ 1,500
H $ 200,000
$ 250,000
$ 1,800
I $ 250,000
$ 300,000
$ 2,500
J $ 300,000
$ 400,000
$ 3,250
K $ 400,000
$ 500,000
$ 5,000
L $ 500,000
$ 750,000
$ 6,750
M $ 750,000
$ 1,000,000
$ 9,000
N $ 1,000,000
$ 1,250,000
$ 11,000
O $ 1,250,000
$ 1,500,000
$ 13,000
P $ 1,500,000
$ 1,750,000
$ 15,000
Q $ 1,750,000
$ 2,000,000
$ 17,000
R $ 2,000,000
$ 2,250,000
$ 19,000
S $ 2,250,000
$ 2,500,000
$ 21,000
T $ 2,500,000
$ 3,000,000
$ 24,000
U $ 3,000,000
$ 26,000
Sec. 7. The commission may issue a distributor's license to an
applicant who meets the requirements of this article.
Sec. 8. The commission may issue a manufacturer's license to an
applicant who meets the requirements of this article.
Sec. 9. (a) To obtain a distributor's license or a manufacturer's
license, a person must submit an application to the commission on
a form prescribed by the commission. An applicant shall furnish all
information required by the commission.
(b) To qualify for a distributor's license or a manufacturer's
license under this chapter, a person must also be a licensed
distributor or manufacturer under IC 4-32.2.
Sec. 10. The commission shall conduct or cause to be conducted
a background investigation of each applicant for licensure.
Sec. 11. Criminal history record information obtained during
the investigation of an individual must be maintained by the
commission for the term of the license and for any subsequent
license term.
Sec. 12. The commission may require that an application or
other document submitted by an applicant or a licensee must be
sworn to or affirmed before a notary public.
Sec. 13. The commission may not issue a license to an applicant
if any of the following apply:
(1) The applicant has knowingly made a false statement of
material fact to the commission.
(2) The applicant is found by the commission to lack the
necessary financial stability or responsibility for licensure.
(3) The applicant, if an individual, is less than twenty-one (21)
years of age on the date on which the application is received
by the commission.
(4) The applicant is on the most recent tax warrant list.
(5) The applicant, if an individual, has been convicted of or
entered a plea of guilty or nolo contendere to a felony within
the ten (10) years preceding the date of the license application,
unless the commission determines that:
(A) the individual has been pardoned or the individual's
civil rights have been restored;
(B) after the conviction or entry of the plea, the individual
has engaged in the kind of law abiding commerce and good
citizenship that would reflect well upon the integrity of the
commission; or
(C) the individual has terminated a relationship with a
person whose actions directly contributed to the conviction
or entry of the plea.
(6) The applicant fails to provide all materials requested by
the commission.
Sec. 14. Credit and security investigation information submitted
in connection with an application for a license under this article is
confidential and may not be disclosed except for official purposes
under this article or under a judicial order.
Sec. 15. A license issued under this article may not be
transferred without prior written approval of the commission.
Sec. 16. If the commission proposes to revoke a license issued
under this chapter, the licensee may continue to operate under the
license until the commission has made a decision and all
administrative appeals have been exhausted by the licensee.
Chapter 5. Type II Gambling Operations
Sec. 1. (a) A retailer may offer the sale of type II gambling
games in accordance with this article.
(b) A retailer's license also authorizes a retailer to conduct the
following gambling games on the retailer's licensed premises:
(1) Raffles in which the retailer retains the proceeds of the
raffle drawing.
(2) Winner take all drawings in which the retailer retains no
portion of the amounts wagered.
Sec. 2. A type II gambling game may be sold under this article
only on the retailer's licensed premises.
Sec. 3. (a) A retailer that obtains a type II gambling game must
obtain the type II gambling game from a distributor licensed by the
commission under this article.
(b) Except as provided in subsection (c), a distributor must
obtain at least twenty-five percent (25%) of the type II gambling
games purchased by the distributor from a manufacturer that is
domiciled in Indiana.
(c) The commission may excuse a distributor from the
requirement set forth in subsection (b) if the commission finds that
at least one (1) of the following conditions exists:
(1) No manufacturer domiciled in Indiana is licensed under
this article.
(2) No manufacturer domiciled in Indiana is in good standing
with the requirements of this article.
(3) All of the licensed manufacturers domiciled in Indiana also
hold distributor's licenses.
Sec. 4. A retailer shall maintain accurate records of all financial
aspects of the retailer's type II gambling operation. A retailer shall
make accurate reports of all financial aspects of the type II
gambling operation to the commission within the time established
by the commission. The commission shall prescribe forms for this
purpose.
Sec. 5. (a) The total prizes awarded for one (1) type II gambling
game may not exceed five thousand dollars ($5,000).
(b) A single prize awarded for one (1) winning ticket in a type II
gambling game may not exceed five hundred ninety-nine dollars
($599).
(c) The selling price for one (1) ticket for a type II gambling
game may not exceed one dollar ($1). Tickets sold for less than one
dollar ($1) must be sold for a price specified in section 6(b) of this
chapter.
Sec. 6. (a) Except as provided in subsection (b), a type II
gambling game must pay out at least seventy-five percent (75%)
and not more than one hundred percent (100%) of the amount
wagered.
(b) This subsection applies only to a type II gambling game
ticket that is sold for less than one dollar ($1). A type II gambling
game subject to this subsection must comply with the following
minimum payout percentages:
Purchase Price Minimum Payout Percentage
$0.10 60%
$0.25 65%
Three (3) tickets for one dollar ($1) 65%
$0.50 70%
(c) A type II gambling game's pay out percentage must be stated
on the ticket or on the accompanying flare.
Sec. 7. The following persons may not play or participate in any
manner in a type II gambling game:
(1) An employee of the commission.
(2) A person less than twenty-one (21) years of age.
(3) The retailer offering the type II gambling game.
(4) A person employed by the retailer offering the type II
gambling game.
Chapter 6. Type II Gaming Enforcement Fund
Sec. 1. As used in this chapter, "county resident student" means
a student who:
(1) resides in a county that makes a distribution required by
section 7(a)(2) or 8(a)(2) of this chapter; and
(2) is enrolled in a school corporation that has at least some
territory within the county in which the student resides.
Sec. 2. As used in this chapter, "school corporation" has the
meaning set forth in IC 36-1-2-17.
Sec. 3. The type II gaming enforcement fund is established. The
commission shall administer the fund.
Sec. 4. The fees, civil penalties, and taxes collected by the
commission or the department under this article shall be deposited
in the fund.
Sec. 5. Money in the fund does not revert to the state general
fund at the end of a state fiscal year. The treasurer of state shall
invest the money in the fund not currently needed to meet the
obligations of the fund in the same manner as other public funds
may be invested.
Sec. 6. There is appropriated annually to the commission from
the fund an amount sufficient to cover the costs incurred by the
commission for the purposes specified in this article.
Sec. 7. (a) After funds are appropriated under section 6 of this
chapter, each month the treasurer of state shall distribute the fees
paid by a retailer under this article in the previous month to the
county treasurer of the county in which the retailer is located for
distribution as follows:
(1) Two-thirds (2/3) for allocation among the county and the
cities and towns located in the county.
(2) One-third (1/3) for allocation among the school
corporations located in the county.
(b) The county auditor shall distribute the money received by
the county for allocation under subsection (a)(1) 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.
(c) The money received by the county for allocation under
subsection (a)(2) must be divided among the school corporations on
a pro rata basis according to the ratio the number of county
resident students enrolled in each school corporation bears to the
total number of county resident students enrolled in the school
corporations located in the county. Revenue received by a school
corporation under this section is considered miscellaneous revenue.
(d) Money allocated under this section to a county, city, town, or
school corporation may be used for any lawful purpose.
Sec. 8. (a) After funds are appropriated under section 6 of this
chapter, each month the treasurer of state shall distribute the
amount certified under IC 4-36-10-8 for a particular county to the
county treasurer of that county for distribution as follows:
(1) Two-thirds (2/3) for allocation among the county and the
cities and towns located in the county.
(2) One-third (1/3) for allocation among the school
corporations located in the county.
(b) The county auditor shall distribute the money received by
the county for allocation under subsection (a)(1) 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.
(c) The money received by the county for allocation under
subsection (a)(2) must be divided among the school corporations on
a pro rata basis according to the ratio the number of county
resident students enrolled in each school corporation bears to the
total number of county resident students enrolled in the school
corporations located in the county. Revenue received by a school
corporation under this section is considered miscellaneous revenue.
(d) Money allocated under this section to a county, city, town, or
school corporation may be used for any lawful purpose.
Chapter 7. Penalties
Sec. 1. (a) The commission may suspend or revoke the license of
or levy a civil penalty against a licensee for any of the following:
(1) Violation of a provision of this article or of a rule of the
commission.
(2) Failure to accurately account for type II gambling games.
(3) Failure to accurately account for sales proceeds from type
II gambling operations.
(4) Commission of a fraud, deceit, or misrepresentation.
(5) Conduct prejudicial to public confidence in the
commission.
(b) If a violation is of a continuing nature, the commission may
impose a civil penalty on a licensee for each day the violation
continues.
Sec. 2. The commission may impose on a licensee the following
civil penalties:
(1) Not more than one thousand dollars ($1,000) for the first
violation.
(2) Not more than two thousand five hundred dollars ($2,500)
for the second violation.
(3) Not more than five thousand dollars ($5,000) for each
additional violation.
Sec. 3. In addition to the penalties described in section 2 of this
chapter, the commission may do all or any of the following:
(1) Suspend or revoke a license issued under this article.
(2) Lengthen a period of suspension of a license issued under
this article.
(3) Impose an additional civil penalty of not more than one
hundred dollars ($100) for each day a civil penalty goes
unpaid.
Sec. 4. Except as provided in section 5 of this chapter, a person
who violates this article commits a Class A infraction.
Sec. 5. A person who knowingly or intentionally:
(1) makes a false statement on an application submitted under
this article;
(2) operates a type II gambling operation in which wagering
is conducted or is to be conducted in a manner other than the
manner required under this article;
(3) permits a person less than twenty-one (21) years of age to
play a type II gambling game; or
(4) wagers or accepts a wager on a type II gambling game at
a location other than a retailer's licensed premises;
commits a Class A misdemeanor.
Chapter 8. Security
Sec. 1. The commission is responsible for security matters under
this article. The commission may employ individuals who are
necessary to carry out this chapter.
Sec. 2. The commission may do any of the following:
(1) Investigate an alleged violation of this article.
(2) Enter the following premises for the performance of the
commission's lawful duties:
(A) A retailer's licensed premises.
(B) A place in which type II gambling games are being
purchased, sold, manufactured, printed, or stored.
(3) Take necessary equipment from the premises referred to
in subdivision (2) for further investigation.
(4) Obtain full access to all financial records of the alleged
violator on request.
(5) If there is a reason to believe that a violation has occurred,
search and inspect the premises where the violation is alleged
to have occurred or is occurring. A search under this
subdivision may not be conducted unless a warrant has first
been obtained by the executive director. A contract entered
into by the commission may not include a provision allowing
for warrantless searches. A warrant may be obtained in the
county in which the search will be conducted or in Marion
County.
(6) Seize or take possession of:
(A) papers;
(B) records;
(C) tickets;
(D) currency; or
(E) other items;
related to an alleged violation.
Sec. 3. The commission shall conduct investigations necessary
to ensure the security and integrity of the operation of type II
gambling games under this article. The commission may conduct
investigations of the following:
(1) Retailers.
(2) Applicants for licenses issued under this article.
(3) Licensed manufacturers and distributors.
(4) Employees of the commission under this article.
(5) Applicants for contracts or employment with the
commission under this article.
Sec. 4. (a) The state police department shall, at the request of the
executive director, provide the following:
(1) Assistance in obtaining criminal history information
relevant to investigations required for honest, secure,
exemplary operations under this article.
(2) Any other assistance requested by the executive director
and agreed to by the superintendent of the state police
department.
(b) Any other state agency, including the alcohol and tobacco
commission and the Indiana professional licensing agency, shall
upon request provide the executive director with information
relevant to an investigation conducted under this article.
Chapter 9. State Preemption
Sec. 1. Type II gambling games other than those authorized by
the commission under this article are not allowed in Indiana.
Sec. 2. Local taxes, regardless of type, may not be imposed on
the operations of the commission under this article or on the sale
of type II gambling games under this article.
Sec. 3. (a) Local governmental authority concerning the
following is preempted by the state under this article:
(1) All matters relating to the operation of type II gambling
games.
(2) All matters relating to the possession, transportation,
advertising, sale, manufacture, printing, storing, or
distribution of type II gambling games.
(b) A county, a municipality, or another political subdivision of
the state may not enact an ordinance relating to the commission's
operations authorized by this article.
Sec. 4. A state or local law providing a penalty for or a
restriction or prohibition against the operation of type II gambling
games or the possession, manufacture, transportation, distribution,
advertising, printing, storing, or sale of type II gambling games
does not apply to the operation of type II gambling games under
this article or to the possession, manufacture, transportation,
distribution, advertising, printing, storing, or sale of type II
gambling games under this article.
Chapter 10. Type II Gambling Game Excise Tax
Sec. 1. An excise tax is imposed on the distribution of type II
gambling games in the amount of ten percent (10%) of the price
paid by the retailer that purchases the type II gambling games.
Sec. 2. A licensed entity distributing pull tabs, punchboards, or
tip boards under this article is liable for the tax. The tax is imposed
at the time the licensed entity:
(1) brings or causes the type II gambling games to be brought
into Indiana for distribution;
(2) distributes type II gambling games in Indiana; or
(3) transports type II gambling games to retailers in Indiana
for resale by those retailers in accordance with this article.
Sec. 3. The department shall establish procedures by which each
licensee must account for the following:
(1) The tax collected under this chapter by the licensee.
(2) The type II gambling games sold by the licensee.
(3) The funds received for the sale of type II gambling games
by the licensee.
(4) The address of each retailer that purchased pull tabs,
punchboards, or tip boards from the licensee in the previous
calendar month.
Sec. 4. A payment by a licensee to the department may not be in
cash. All payments must be in the form of a check, a draft, an
electronic funds transfer, or another financial instrument
authorized by the department. The department may require a
licensee to establish a separate electronic funds transfer account to
make payments to the department.
Sec. 5. All taxes imposed on a licensee under this chapter shall
be remitted to the department on a monthly basis at the times and
as directed by the department. The department is responsible for
all administrative functions related to the receipt of funds. The
department may require a licensee to file with the department
reports of the licensee's receipts and transactions in the sale of type
II gambling games. The department shall prescribe the form of the
reports and the information to be contained in the reports.
Sec. 6. The department may at any time perform an audit of the
books and records of a licensee to ensure compliance with this
article.
Sec. 7. The department shall deposit all taxes collected under
this chapter in the type II gaming enforcement fund.
Sec. 8. Each month the department shall calculate for each
county the amount of taxes remitted under this chapter in the
previous month that are attributable to the distribution of pull
tabs, punchboards, and tip boards to retailers located in the
county. Subject to the amounts appropriated to the commission
under IC 4-36-6-6, the department shall certify to the treasurer of
state and the county treasurer in each county the amount of the
taxes remitted in the previous month that the county is entitled to
receive under IC 4-36-6-8.
1, 2008]: Sec. 43. Sales of type II gambling games authorized by
IC 4-36 are exempt from the state gross retail tax.
or permitted premises;
shall procure and, after December 31, 2008, continuously maintain
a policy of liability insurance to cover the person's liability for
damages arising out of the person's sale of alcoholic beverages for
consumption on the licensed or permitted premises.
Sec. 2. (a) A person described in section 1 of this chapter is not
required to maintain liability insurance under section 1 of this
chapter if the person holds a certificate of self-insurance issued
under this section.
(b) The department of insurance may, upon the application of
a person described in section 1 of this chapter, issue to the person
a certificate of self-insurance if the department of insurance is
satisfied that the person making the application possesses and will
continue to possess the ability to pay a judgment obtained against
the person for damages arising out of the person's sale of alcoholic
beverages for consumption on the licensed premises.
Sec. 3. The minimum amounts of insurance coverage or
self-insurance required under this chapter shall be established in
rules adopted by the insurance commissioner under section 6 of
this chapter.
Sec. 4. Two (2) or more persons described in section 1 of this
chapter may comply with this chapter by joining together to form
a group for the purpose of:
(1) purchasing a group policy of liability insurance; or
(2) mutual risk sharing of losses of members of the group
through self insurance approved by the department of
insurance as described in section 2 of this chapter;
to provide the coverage or ability to pay a judgement as required
under this chapter.
Sec. 5. A person who violates this chapter is subject to the
penalties set forth in IC 7.1-3-23.
Sec. 6. The insurance commissioner shall adopt rules under
IC 4-22-2 to implement this chapter.
following:
(1) Establish minimum amounts of liability insurance
coverage or available self insurance funds that must be
maintained by a person or group of persons described in
IC 7.1-3-27.
(2) Establish maximum risk retainment amounts and
minimum stop-loss coverage requirements for a person or
group of persons described in IC 7.1-3-27 that comply with
IC 7.1-3-27 by holding a certificate of self insurance.
(3) Establish a self-insurance certification process through
which a certificate of self-insurance described in IC 7.1-3-27-2
is issued.