SB1297 97TH GENERAL ASSEMBLY

LRB097 08401 ASK 48528 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1297

Introduced 2/8/2011, by Sen. Antonio Muņoz

SYNOPSIS AS INTRODUCED:

230 ILCS 25/1.1
230 ILCS 25/2.5 new

Amends the Bingo License and Tax Act. Provides that no person or organization shall conduct a remote caller bingo game without a remote caller bingo license issued from the Department of Revenue. Sets forth certain restrictions on the conducting of a remote caller bingo game. Sets forth provisions concerning costs, fees, prizes, and proceeds. Defines "remote caller bingo game".

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Bingo License and Tax Act is amended by changing Section 1.1 and by adding Section 2.5 as follows:

(230 ILCS 25/1.1)

Sec. 1.1. Definitions. For purposes of this Act, the following definitions apply:

"Bingo" means a game in which each player has a card or board for which a consideration has been paid, containing 5 horizontal rows of spaces, with each row except the central one containing 5 figures. The central row has 4 figures with the word "free" marked in the center space. "Bingo" includes games that otherwise qualify under this paragraph, except for the use of cards where the figures are not preprinted but are filled in by the players. A player wins a game of bingo by completing a preannounced combination of spaces or, in the absence of a preannouncement of a combination of spaces, any combination of 5 spaces in a row, vertically, horizontally, or diagonally.

"Bingo equipment" means any equipment or machinery designed or used for the play of bingo. "Bingo equipment" does not include electronic equipment.

"Charitable organization" means an organization or institution organized and operated to benefit an indefinite number of the public.

"Department" means the Department of Revenue.

"Educational organization" means an organization or institution organized and operated to provide systematic instruction in useful branches of learning by methods common to schools and institutions of learning which compare favorably in their scope and intensity with the course of study presented in tax-supported schools.

"Fraternal organization" means an organization of persons having a common interest that is organized and operated exclusively to promote the welfare of its members and to benefit the general public on a continuing and consistent basis, including but not limited to ethnic organizations.

"Holiday" means any of the holidays listed in Section 17 of the Promissory Note and Bank Holiday Act.

"Labor organization" means an organization composed of labor unions or workers organized with the objectives of betterment of the conditions of those engaged in such pursuit and the development of a higher degree of efficiency in their respective occupations.

"Licensed organization" means a qualified organization that has obtained a license to conduct bingo in conformance with the provisions of this Act.

"Limited license" means a license issued to an organization that is not a licensed organization, but that is otherwise eligible for a regular license to conduct bingo. A limited license authorizes the conduct of bingo at up to 2 indoor or outdoor festivals during the calendar year for which the license is issued for a maximum of 5 consecutive days on each occasion.

"Non-profit organization" means an organization or institution organized and conducted on a not-for-profit basis with no personal profit inuring to anyone as a result of the operation.

"Organization" means a corporation, agency, partnership, association, firm, business or other entity consisting of 2 or more persons joined by a common interest or purpose.

"Person" means any natural individual, corporation, partnership, limited liability company, organization (as defined in this Section), licensee under this Act, or volunteer.

"Provider" means any person or organization, except a city, village, or incorporated town that owns or leases premises to an organization for the conduct of bingo.

"Regular license" means a license authorizing its holder to conduct one session of bingo per week on the date and at the time and location stated on the license.

"Religious organization" means any church, congregation, society, or organization founded for the purpose of religious worship.

"Remote caller bingo game" means a game of bingo in which (1) the numbers or symbols on randomly-drawn plastic balls are announced by a natural person present at the site where the live game is conducted and (2) the organization conducting the game of bingo uses audio and video technology to link any of its in-state facilities for the purpose of transmitting the remote calling of a live bingo game from a single location to multiple locations owned, leased, or rented by that organization.

"Senior citizens organization" means an organization or association comprised of members of which substantially all are individuals who are senior citizens, as defined in the Illinois Act on the Aging, the primary purpose of which is to promote the welfare of its members.

"Special games" means bingo games that may be designated as such, played a maximum of 5 times during a bingo session and are distinguished from regular games only by the maximum price that may be charged for the bingo cards used.

"Special permit" means the ability of a licensee who currently holds a license to be granted a permit to conduct bingo at other premises or on other days not exceeding 5 consecutive days.

"Supplier" means any person, firm, or corporation that sells, leases, or distributes to any organization licensed to conduct bingo or to any licensed bingo supplier, cards, boards, sheets, markers, pads and any other supplies, devices and equipment designed for use in the play of bingo.

"Veterans' organization" means an organization comprised of members of which substantially all are individuals who are veterans or spouses, widows, or widowers of veterans, the primary purpose of which is to promote the welfare of its members and to provide assistance to the general public in such a way as to confer a public benefit.

"Volunteer" means a person recruited by an organization who voluntarily performs services at a bingo event, including participation in the management or operation of a game.

"Youth athletic organization" means an organization having as its exclusive purpose the promotion and provision of athletic activities for youth aged 18 and under.

(Source: P.A. 95-228, eff. 8-16-07.)

(230 ILCS 25/2.5 new)

Sec. 2.5. Remote caller bingo license; restrictions.

(a) No person or organization may conduct a remote caller bingo game without a remote caller bingo license. The remote caller bingo game license must list all of the locations approved by the Department to conduct remote caller bingo games under that license. The Department shall issue qualifications for a remote caller bingo license and set forth an application process.

(b) The conducting of a remote caller bingo game is subject to the following restrictions:

(1) The drawing of each ball bearing a number or symbol by the natural person calling the game shall be visible to all players as the ball is drawn, including through a simultaneous live video feed at remote locations at which players may participate in the game. The audio or video technology used to link the facilities may include cable, Internet, satellite, broadband, or telephone technology, or any other means of electronic transmission that ensures the secure, accurate, and simultaneous transmission of the announcement of numbers or symbols in the game from the location at which the game is called by a natural person to the remote location or locations at which players may participate in the game.

(2) The remote caller bingo licensee or members of its organization shall not receive a profit, wage, or salary from the remote caller bingo game.

(3) The remote caller bingo game shall be operated and staffed only by the remote caller bingo licensee or members of its organization with the exception of administrative, managerial, technical, financial, or security personnel who are employed by the remote caller bingo licensee at a location participating in the remote caller bingo game. Notwithstanding any other provision of law, an exclusive agreement or other agreement between the remote caller bingo licensee and other entities or persons to provide services in the administration, management, or conduct of the game shall not be considered a violation of the prohibition against holding a legally cognizable financial interest in the conduct of the remote caller bingo game by persons or entities other than the charitable organization.

(4) The remote caller bingo licensee shall not have overhead costs exceeding 25% of gross sales, except that the limitations of this item (4) shall not apply to one-time, non-recurring capital acquisitions. For purposes of this item (4), overhead costs include, but are not limited to, amounts paid for rent and equipment leasing and the reasonable fees authorized to be paid to administrative, managerial, technical, financial, and security personnel employed by the remote caller bingo licensee.

For the purpose of keeping its overhead costs below 25% of gross sales, a remote caller bingo licensee may elect to deduct all or a portion of the fees paid to financial institutions for the use and processing of credit card sales from the amount of gross revenues awarded for prizes. These deducted fees for the use and processing of credit card sales shall not be considered overhead costs. Additionally, fees paid to financial institutions for the use and processing of credit card sales shall not be deducted from the proceeds retained by the charitable organization.

(5) No person shall be allowed to participate in a remote caller bingo game unless the person is physically present at the time and place where the remote caller bingo game is being conducted. A person shall be deemed to be physically present at the place where the remote caller bingo game is being conducted if he or she is present at any of the locations participating in the remote caller bingo game in accordance with this Section.

(6) An organization shall only co-sponsor a remote caller bingo game with one or more other organizations that share the same type of membership category. Unaffiliated organizations shall be limited to a maximum of 10 locations for a remote caller bingo game and a maximum of 2 remote caller bingo games per week.

(7) Every remote caller bingo game shall be played until a winner is declared. The declared winner of a remote caller bingo game shall provide his or her identifying information and a mailing address to the onsite manager of the remote caller bingo game. Prizes shall be paid only by check if the prize money exceeds $999.99. The remote caller bingo licensee may issue a check to the winner at the time of the game or may a check to the declared winner by certified mail, return receipt requested, within 10 days after the remote caller bingo game.

(8) The value of prizes awarded during the conduct of any remote caller bingo game shall not exceed 40% of the gross receipts for that game. If an authorized organization elects to deduct fees paid for the use and processing of credit card sales from the amount of gross revenues for that game awarded for prizes, then the maximum amount of gross revenues that may be awarded for prizes shall not exceed 40% of the gross receipts for that game, less the amount of redirected fees paid for the use and processing of credit card sales.

(9) All prize money exceeding State and federal exemption limits on prize money shall be subject to income tax reporting and withholding requirements under applicable State and federal laws and regulations and those reports and withholding shall be forwarded, within 10 business days after the remote caller bingo game, to the appropriate State or federal agency on behalf of the winner. A report shall accompany the amount withheld identifying the person on whose behalf the money is being sent. Any game interrupted by a transmission failure, electrical outage, or act of God shall be considered void in the location that was affected and the organizations members, affiliates, and the State shall be held harmless. A refund for a canceled game or games shall be provided to the purchasers.

(10) The entire net proceeds, comprised of at least 35% of the gross proceeds, from the remote caller bingo game must be exclusively devoted to the lawful purposes of the organization permitted to conduct that game.