SB 712 — VIDEO GAMING-DISCLOSURE

SB0712 *LRB09804912AMC34942b*Engrossed 98THLRB098 GENERAL04912 ASSEMBLYAMC State34942 ofb IllinoisAN andACT 2014concerning SB0712gaming. Introduced 1/24/2013, by Sen.

John J.

Cullerton SYNOPSIS AS INTRODUCED:

ILCS 40/1 Amends the Video Gaming Act.

Makes a technical change in a Section concerning the short title.

LRB098 04912 AMC 34942 b A BILL FOR SB0712 LRB098 04912 AMC 34942 b AN ACT concerning gaming.

The Video Gaming Act is amended by changing Section 145 as follows:

(230 ILCS 40/1)40/45) Sec.

1.45.

ShortIssuance title.of license.

This(a) ArticleThe mayburden beis citedupon aseach theapplicant theto Videodemonstrate Gaminghis Act.suitability for licensure.

AnyEach referencesvideo ingaming thisterminal Articlemanufacturer, todistributor, "thissupplier, Act"operator, meanhandler, thislicensed Article.establishment, licensed truck stop establishment, licensed fraternal establishment, and licensed veterans establishment shall be licensed by the Board.

The Board may issue or deny a license under this Act to any person pursuant to the same criteria set forth in Section 9 of the Riverboat Gambling Act.

(a-5) The Board shall not grant a license to a person who has facilitated, enabled, or participated in the use of coin-operated devices for gambling purposes or who is under the significant influence or control of such a person.

For the purposes of this Act, "facilitated, enabled, or participated in the use of coin-operated amusement devices for gambling purposes" means that the person has been convicted of any SB0712 Engrossed - 2 - LRB098 04912 AMC 34942 b violation of Article 28 of the Criminal Code of 1961 or the Criminal Code of 2012.

If there is pending legal action against a person for any such violation, then the Board shall delay the licensure of that person until the legal action is resolved.

(b) Each person seeking and possessing a license as a video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment shall submit to a background investigation conducted by the Board with the assistance of the State Police or other law enforcement.

To the extent that the corporate structure of the applicant allows, the background investigation shall include any or all of the following as the Board deems appropriate or as provided by rule for each category of licensure:

(i) each beneficiary of a trust, (ii) each partner of a partnership, (iii) each member of a limited liability company, (iv) each director and officer of a publicly or non-publicly held corporation, (v) each stockholder of a non-publicly held corporation, (vi) each stockholder of 5% or more of a publicly held corporation, or (vii) each stockholder of 5% or more in a parent or subsidiary corporation.

In the course of conducting background investigations authorized under this Section, the Board has the discretion to determine whether to conduct a background investigation of a person or entity who holds an indirect interest in the person seeking licensure who:

(1) holds such interest for investment purposes SB0712 Engrossed - 3 - LRB098 04912 AMC 34942 b only;

(2) does not exercise any control over the activities of the person seeking and possessing a license;

and (3) is a limited partner in a partnership whose general partner is controlled, directly or indirectly, by an investment adviser registered under the federal Investment Advisers Act of 1940.

(c) Each person seeking and possessing a license as a video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment shall disclose the identity of every person, association, trust, corporation, or limited liability company having a greater than 1% direct or indirect pecuniary interest in the video gaming terminal operation for which the license is sought.

If the disclosed entity is a trust, the application shall disclose the names and addresses of the beneficiaries;

if a corporation, the names and addresses of all stockholders and directors;

if a limited liability company, the names and addresses of all members;

or if a partnership, the names and addresses of all partners, both general and limited.

The Board has discretion to determine whether to apply the disclosure requirement of this subsection (c) as it relates to the beneficiaries, stock holders, directors, members, or partners of an entity who holds an indirect interest in a person seeking licensure if the entity:

(1) holds an interest for investment purposes only;

(2) does not exercise any control over the activities of the person seeking and possessing a SB0712 Engrossed - 4 - LRB098 04912 AMC 34942 b license;

and (3) is a limited partner in a partnership whose general partner is controlled by an investment adviser registered under the federal Investment Advisers Act of 1940.

(d) No person may be licensed as a video gaming terminal manufacturer, distributor, supplier, operator, handler, licensed establishment, licensed truck stop establishment, licensed fraternal establishment, or licensed veterans establishment if that person has been found by the Board to:

(1) have a background, including a criminal record, reputation, habits, social or business associations, or prior activities that pose a threat to the public interests of the State or to the security and integrity of video gaming;

(2) create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of video gaming;

or (3) present questionable business practices and financial arrangements incidental to the conduct of video gaming activities.

(e) Any applicant for any license under this Act has the burden of proving his or her qualifications to the satisfaction of the Board.

The Board may adopt rules to establish additional qualifications and requirements to preserve the integrity and security of video gaming in this State.

(f) A non-refundable application fee shall be paid at the time an application for a license is filed with the Board in SB0712 Engrossed - 5 - LRB098 04912 AMC 34942 b the following amounts:

(1) Manufacturer ..............................