Indiana 2023 Regular Session

Indiana House Bill HB1548 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1548
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 4-32.3-1-1; IC 4-39.5; IC 6-8.1-1-1;
7	7	IC 35-45-5-15; IC 35-52-4.
8	8	Synopsis: Video gaming terminals. Authorizes wagering on video
9	9	gaming terminals in certain establishments. Establishes a licensing
10	10	structure for participants in video gaming. Imposes a video gaming
11	11	wagering tax of 30% of adjusted gross receipts.
12	12	Effective: July 1, 2023.
13	13	Judy, Vermilion, Bartels, Moed
14	14	January 19, 2023, read first time and referred to Committee on Public Policy.
15	15	2023 IN 1548—LS 7127/DI 125 Introduced
16	16	First Regular Session of the 123rd General Assembly (2023)
17	17	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
18	18	Constitution) is being amended, the text of the existing provision will appear in this style type,
19	19	additions will appear in this style type, and deletions will appear in this style type.
20	20	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
21	21	provision adopted), the text of the new provision will appear in this style type. Also, the
22	22	word NEW will appear in that style type in the introductory clause of each SECTION that adds
23	23	a new provision to the Indiana Code or the Indiana Constitution.
24	24	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
25	25	between statutes enacted by the 2022 Regular Session of the General Assembly.
26	26	HOUSE BILL No. 1548
27	27	A BILL FOR AN ACT to amend the Indiana Code concerning
28	28	gaming.
29	29	Be it enacted by the General Assembly of the State of Indiana:
30	30	1 SECTION 1. IC 4-32.3-1-1, AS ADDED BY P.L.58-2019,
31	31	2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32	32	3 JULY 1, 2023]: Sec. 1. (a) This article applies only to a qualified
33	33	4 organization.
34	34	5 (b) This article applies only to the following approved gambling
35	35	6 activities conducted as fundraising activities by qualified organizations:
36	36	7 (1) Bingo events, casino game nights, raffles, festivals, and other
37	37	8 gaming activities approved by the commission.
38	38	9 (2) The sale of pull tabs, punchboards, and tip boards:
39	39	10 (A) at bingo events, casino game nights, raffles, and festivals
40	40	11 conducted by qualified organizations; or
41	41	12 (B) at any time on the premises owned or leased by qualified
42	42	13 organizations and regularly used for the activities of qualified
43	43	14 organizations.
44	44	15 This article does not apply to any other sale of pull tabs,
45	45	16 punchboards, and tip boards.
46	46	17 (c) This article does not apply to a promotion offer subject to
47	47	2023 IN 1548—LS 7127/DI 125 2
48	48	1 IC 24-8.
49	49	2 (d) This article does not apply to the following:
50	50	3 (1) A type II gambling game authorized by IC 4-36.
51	51	4 (2) A raffle or other gambling game authorized by IC 4-36-5-1(b).
52	52	5 (3) Video gaming authorized by IC 4-39.5.
53	53	6 (e) This article does not apply to a prize linked savings program
54	54	7 that:
55	55	8 (1) is offered or conducted by an eligible financial institution
56	56	9 under IC 28-1-23.2;
57	57	10 (2) is:
58	58	11 (A) offered or conducted by a credit union organized or
59	59	12 reorganized under United States law; and
60	60	13 (B) conducted in the same manner as a prize linked savings
61	61	14 program under IC 28-1-23.2; or
62	62	15 (3) is:
63	63	16 (A) offered or conducted by an insured depository institution
64	64	17 (as defined in 12 U.S.C. 1813) that is:
65	65	18 (i) a national bank formed under 12 U.S.C. 21;
66	66	19 (ii) a state member bank (as defined in 12 U.S.C. 1813);
67	67	20 (iii) a state nonmember bank (as defined in 12 U.S.C. 1813);
68	68	21 or
69	69	22 (iv) a savings association (as defined in 12 U.S.C. 1813);
70	70	23 and
71	71	24 (B) conducted in the same manner as a prize linked savings
72	72	25 program under IC 28-1-23.2.
73	73	26 SECTION 2. IC 4-39.5 IS ADDED TO THE INDIANA CODE AS
74	74	27 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
75	75	28 2023]:
76	76	29 ARTICLE 39.5. VIDEO GAMING TERMINALS IN
77	77	30 ESTABLISHMENTS
78	78	31 Chapter 1. General Provisions
79	79	32 Sec. 1. This article applies only to wagering on video gaming
80	80	33 terminals located in licensed establishments under a video gaming
81	81	34 terminal installation contract described in IC 4-39.5-8.
82	82	35 Sec. 2. All shipments of video gaming terminals to a
83	83	36 manufacturer, distributor, supplier, operator, or establishment in
84	84	37 Indiana, the registering, recording, and labeling of which have
85	85	38 been completed by the manufacturer or dealer in accordance with
86	86	39 15 U.S.C. 1171 through 15 U.S.C. 1178, are legal shipments of
87	87	40 gambling devices into Indiana.
88	88	41 Sec. 3. Under 15 U.S.C. 1172, approved January 2, 1951, the
89	89	42 state of Indiana, acting by and through elected and qualified
90	90	2023 IN 1548—LS 7127/DI 125 3
91	91	1 members of the general assembly, declares that the state is exempt
92	92	2 from 15 U.S.C. 1172.
93	93	3 Sec. 4. (a) This section does not apply to real or personal
94	94	4 property taxes imposed by a local taxing unit.
95	95	5 (b) Except as provided in subsection (e), local governmental
96	96	6 authority concerning all matters relating to video gaming
97	97	7 conducted under this article is preempted by the state.
98	98	8 (c) No tax or fee, except as provided in this article, may be
99	99	9 assessed or collected from a licensee by a political subdivision
100	100	10 having the power to assess or collect a tax or fee. This section does
101	101	11 not prohibit the assessment and levying of property taxes otherwise
102	102	12 authorized by law or the imposing of a special assessment
103	103	13 (including a ditch or drainage assessment, Barrett Law assessment,
104	104	14 improvement assessment, sewer assessment, or sewage assessment)
105	105	15 otherwise authorized by law to be imposed on property to be
106	106	16 benefitted by an improvement.
107	107	17 (d) A political subdivision may not enter into an agreement with
108	108	18 a licensee that requires any financial commitments from the
109	109	19 licensee that are in addition to the fees and taxes imposed under
110	110	20 this article.
111	111	21 (e) An ordinance prohibiting video gaming in existence on June
112	112	22 30, 2023, is preempted by this article. However, the legislative body
113	113	23 of:
114	114	24 (1) a city or town may pass an ordinance to prohibit video
115	115	25 gaming within the corporate limits of the city or town; or
116	116	26 (2) a county may pass an ordinance to prohibit video gaming
117	117	27 in the unincorporated area of the county;
118	118	28 after June 30, 2023.
119	119	29 Sec. 5. This article will maintain the public's confidence and
120	120	30 trust through:
121	121	31 (1) comprehensive law enforcement supervision; and
122	122	32 (2) the strict regulation of facilities, persons, associations, and
123	123	33 video gaming at establishments.
124	124	34 Chapter 2. Definitions
125	125	35 Sec. 1. The definitions in this chapter apply throughout this
126	126	36 article.
127	127	37 Sec. 2. "Adjusted gross receipts" means the difference between:
128	128	38 (1) a person's gross receipts; minus
129	129	39 (2) prizes paid out to patrons by the person.
130	130	40 Sec. 3. "Commission" refers to the Indiana gaming commission
131	131	41 established by IC 4-33-3-1.
132	132	42 Sec. 4. "Convenience store" refers to a store or food mart that
133	133	2023 IN 1548—LS 7127/DI 125 4
134	134	1 is primarily engaged in:
135	135	2 (1) the retail sale of a line of goods that may include milk,
136	136	3 bread, soda, and snacks; or
137	137	4 (2) the retail sale of automotive fuels and the retail sale of a
138	138	5 line of goods that may include milk, bread, soda, and snacks.
139	139	6 Sec. 5. "Department" refers to the department of state revenue.
140	140	7 Sec. 6. "Distributor" means a person licensed under this article
141	141	8 to:
142	142	9 (1) buy a video gaming terminal from a manufacturer; and
143	143	10 (2) sell, lease, or otherwise distribute a video gaming terminal
144	144	11 or major components or parts of a video gaming terminal to
145	145	12 an operator.
146	146	13 Sec. 7. "Establishment" means any of the following locations
147	147	14 licensed to have video gaming terminals on the premises:
148	148	15 (1) A veterans organization establishment.
149	149	16 (2) A fraternal organization establishment.
150	150	17 (3) Subject to IC 4-39.5-5-13(b)(5), an establishment licensed
151	151	18 under IC 7.1-3 to sell alcoholic beverages to customers for
152	152	19 consumption on the premises of the establishment.
153	153	20 (4) A truck stop establishment.
154	154	21 Sec. 8. "Fraternal organization establishment" means an
155	155	22 organization or institution that:
156	156	23 (1) is organized and conducted on a nonprofit basis;
157	157	24 (2) is exempt from federal income taxation under Section
158	158	25 501(c) of the Internal Revenue Code;
159	159	26 (3) is a branch, lodge, or chapter of a national organization;
160	160	27 and
161	161	28 (4) exists for the common charitable purposes, brotherhood,
162	162	29 and other interests of its members.
163	163	30 Sec. 9. "Gambling game" means a game played on a video
164	164	31 gaming terminal approved for wagering under this article by the
165	165	32 commission.
166	166	33 Sec. 10. "Gross receipts" means the total amount of money
167	167	34 wagered, either by cash or ticket, by patrons on a video gaming
168	168	35 terminal in an establishment.
169	169	36 Sec. 11. "Licensee" means a person holding a license issued
170	170	37 under this article.
171	171	38 Sec. 12. "Manufacturer" means a person that is licensed under
172	172	39 this article to:
173	173	40 (1) manufacture or assemble video gaming terminals; and
174	174	41 (2) sell video gaming terminals to a distributor.
175	175	42 Sec. 13. "Operator" means a person that is licensed under this
176	176	2023 IN 1548—LS 7127/DI 125 5
177	177	1 article to own or lease, install, maintain, and operate video gaming
178	178	2 terminals at an establishment located in Indiana.
179	179	3 Sec. 14. "Patron" means an individual who wagers on gambling
180	180	4 games played on a video gaming terminal.
181	181	5 Sec. 15. "Payment ticket" means a ticket dispensed by a video
182	182	6 gaming terminal in exchange for credits accumulated on a video
183	183	7 gaming terminal.
184	184	8 Sec. 16. "Payout device" means a device that redeems a
185	185	9 payment ticket with cash.
186	186	10 Sec. 17. "Person" means an individual, a sole proprietorship, a
187	187	11 partnership, an association, a fiduciary, a corporation, a limited
188	188	12 liability company, or any other business entity.
189	189	13 Sec. 18. "Supplier" means a person that is licensed under this
190	190	14 article to supply major components or parts for video gaming
191	191	15 terminals and payout devices.
192	192	16 Sec. 19. "Truck stop establishment" means a premises that:
193	193	17 (1) is equipped with diesel islands designated for fueling
194	194	18 commercial motor vehicles (as defined in IC 9-13-2-31);
195	195	19 (2) has sold at retail on average more than fifty thousand
196	196	20 (50,000) gallons of diesel or biodiesel fuel each month over the
197	197	21 previous twelve (12) months, or, in the case of an
198	198	22 establishment that has been open for less than twelve (12)
199	199	23 months, is expected to average more than fifty thousand
200	200	24 (50,000) gallons in retail sales of diesel or biodiesel fuel each
201	201	25 month;
202	202	26 (3) has parking spaces designated for commercial motor
203	203	27 vehicles (as defined in IC 9-13-2-31); and
204	204	28 (4) has a convenience store.
205	205	29 Sec. 20. "Vendor" means a person that provides or proposes to
206	206	30 provide goods or services to the commission. The term does not
207	207	31 include an employee of the commission, a licensed establishment,
208	208	32 a licensee, or a state agency.
209	209	33 Sec. 21. "Veterans organization establishment" means an
210	210	34 organization or institution that is:
211	211	35 (1) organized and conducted on a nonprofit basis;
212	212	36 (2) exempt from federal income taxation under Section 501(c)
213	213	37 of the Internal Revenue Code; and
214	214	38 (3) a branch or chapter of a national veterans organization.
215	215	39 Sec. 22. "Video gaming terminal" means an electronic video
216	216	40 gaming machine that:
217	217	41 (1) is available for consideration in the form of cash or a ticket
218	218	42 to play or simulate the play of a gambling game, including
219	219	2023 IN 1548—LS 7127/DI 125 6
220	220	1 poker, line up, and blackjack, using a video display and
221	221	2 microprocessors; and
222	222	3 (2) awards winning players with free games or credits that
223	223	4 may be redeemed for cash.
224	224	5 The term does not include a machine that directly dispenses coins,
225	225	6 cash, or tokens or is for amusement purposes only.
226	226	7 Sec. 23. "Video gaming terminal installation contract" means
227	227	8 a contractual agreement between:
228	228	9 (1) an operator or a person eligible to apply for an operator's
229	229	10 license; and
230	230	11 (2) an establishment or a person eligible to apply for an
231	231	12 establishment license;
232	232	13 that sets forth the terms and conditions for the placement,
233	233	14 installation, and operation of video gaming terminals on the
234	234	15 premises of the establishment.
235	235	16 Chapter 3. Powers and Duties of the Indiana Gaming
236	236	17 Commission
237	237	18 Sec. 1. The commission has jurisdiction and supervision over the
238	238	19 following:
239	239	20 (1) All video gaming operations in Indiana.
240	240	21 (2) All patrons in establishments.
241	241	22 Sec. 2. (a) The commission has the following powers for the
242	242	23 purpose of administering, regulating, and enforcing the system of
243	243	24 video gaming established under this article:
244	244	25 (1) All powers and duties specified in this article.
245	245	26 (2) All powers necessary and proper to fully and effectively
246	246	27 execute this article.
247	247	28 (3) The power to conduct hearings and to issue subpoenas for
248	248	29 the attendance of witnesses and subpoenas duces tecum for
249	249	30 the production of books, records, and other relevant
250	250	31 documents.
251	251	32 (4) The power to administer oaths and affirmations to
252	252	33 witnesses.
253	253	34 (5) The power to revoke, suspend, or renew licenses issued
254	254	35 under this article.
255	255	36 (6) The power to hire employees, gather information, conduct
256	256	37 investigations, and carry out other tasks under this article.
257	257	38 (b) The commission has the following duties for the purpose of
258	258	39 administering, regulating, and enforcing the system of video
259	259	40 gaming established under this article:
260	260	41 (1) To investigate and reinvestigate applicants, vendors,
261	261	42 suppliers, establishments, and licensees.
262	262	2023 IN 1548—LS 7127/DI 125 7
263	263	1 (2) To take appropriate administrative enforcement or
264	264	2 disciplinary action against a person regulated under this
265	265	3 article.
266	266	4 (3) To investigate alleged violations of this article.
267	267	5 (4) To take any reasonable or appropriate action to enforce
268	268	6 this article.
269	269	7 Sec. 3. (a) The commission shall adopt rules under IC 4-22-2 for
270	270	8 the following purposes:
271	271	9 (1) Administering this article.
272	272	10 (2) Establishing the conditions under which video gaming in
273	273	11 Indiana may be conducted.
274	274	12 (3) Providing for the prevention of practices detrimental to
275	275	13 the public interest and providing for the best interests of video
276	276	14 gaming in Indiana.
277	277	15 (4) Imposing penalties for noncriminal violations of this
278	278	16 article.
279	279	17 (b) The commission shall adopt emergency rules in the manner
280	280	18 provided under IC 4-22-2-37.1 for the purposes described in
281	281	19 subsection (a) to enable video gaming in Indiana to commence as
282	282	20 soon as possible after June 30, 2023.
283	283	21 Sec. 4. The commission shall do the following:
284	284	22 (1) Conduct all hearings concerning civil violations of this
285	285	23 article.
286	286	24 (2) Levy and collect penalties for noncriminal violations of
287	287	25 this article.
288	288	26 (3) Deposit the penalties in the state general fund.
289	289	27 Sec. 5. The commission shall adopt standards for the licensing
290	290	28 of the following:
291	291	29 (1) Persons regulated under this article.
292	292	30 (2) Equipment necessary to conduct video gaming.
293	293	31 Sec. 6. The commission shall issue a request for proposals for a
294	294	32 central communications system vendor and enter into a contract
295	295	33 with a central communications system vendor.
296	296	34 Sec. 7. The commission shall issue a request for proposals for an
297	297	35 independent outside testing laboratory for the examination of video
298	298	36 gaming terminals and associated equipment as required by this
299	299	37 article. The commission shall enter into contracts with at least two
300	300	38 (2) independent outside testing laboratories.
301	301	39 Sec. 8. If a licensee or an employee of a licensee violates this
302	302	40 article or engages in a fraudulent act, the commission may do any
303	303	41 combination of the following:
304	304	42 (1) Suspend, revoke, or restrict the license of the licensee.
305	305	2023 IN 1548—LS 7127/DI 125 8
306	306	1 (2) Require the removal of the licensee or employee of a
307	307	2 licensee.
308	308	3 (3) Impose a civil penalty or fine upon the licensee or
309	309	4 employee.
310	310	5 Sec. 9. (a) The commission shall employ investigators.
311	311	6 (b) An investigator employed by the commission is vested with
312	312	7 full police powers and duties to enforce this article.
313	313	8 (c) An investigator may issue a summons for an infraction or a
314	314	9 misdemeanor violation if the defendant promises to appear by
315	315	10 signing the summons. A defendant who signs a summons issued
316	316	11 under this subsection but fails to appear is subject to the penalties
317	317	12 provided by IC 35-44.1-2-10. Upon the defendant's failure to
318	318	13 appear, the court shall issue a warrant for the arrest of the
319	319	14 defendant.
320	320	15 (d) In addition to the powers and duties vested under subsection
321	321	16 (b), an investigator may act as an officer for the arrest of offenders
322	322	17 who violate the laws of Indiana if the investigator reasonably
323	323	18 believes that a crime has been, is being, or is about to be committed
324	324	19 or attempted in the investigator's presence.
325	325	20 Sec. 10. The commission shall establish the minimum amount of
326	326	21 insurance that must be maintained by an operator or an
327	327	22 establishment.
328	328	23 Chapter 4. Applicant Information
329	329	24 Sec. 1. This chapter applies to an applicant for any of the
330	330	25 following:
331	331	26 (1) A manufacturer license.
332	332	27 (2) A distributor license.
333	333	28 (3) A supplier license.
334	334	29 (4) An operator license.
335	335	30 (5) An establishment license.
336	336	31 Sec. 2. (a) Except as provided in subsection (b), an applicant for
337	337	32 a manufacturer license, distributor license, supplier license,
338	338	33 operator license, or establishment license must provide the
339	339	34 following information:
340	340	35 (1) The name, business address, and business telephone
341	341	36 number of the applicant.
342	342	37 (2) The following information for an applicant that is not an
343	343	38 individual:
344	344	39 (A) The state of the applicant's incorporation or
345	345	40 registration.
346	346	41 (B) The names of all directors and officers.
347	347	42 (3) The identity of the following:
348	348	2023 IN 1548—LS 7127/DI 125 9
349	349	1 (A) Any person in which the applicant has an equity
350	350	2 interest of at least one percent (1%) of all shares. The
351	351	3 identification must include the state of incorporation or
352	352	4 registration, if applicable. However, an applicant that has
353	353	5 a pending registration statement filed with the Securities
354	354	6 and Exchange Commission is not required to provide
355	355	7 information under this clause.
356	356	8 (B) The shareholders or participants in the applicant. An
357	357	9 applicant whose interests are publicly traded is required to
358	358	10 provide only the names of the persons holding an equity
359	359	11 interest of more than five percent (5%).
360	360	12 (4) An identification of any business, including the state of
361	361	13 incorporation or registration, if applicable, in which an
362	362	14 applicant, the spouse of the applicant, or a child of the
363	363	15 applicant has an equity interest of more than five percent
364	364	16 (5%).
365	365	17 (5) If the applicant has been indicted or convicted, has
366	366	18 pleaded guilty or nolo contendere, or has forfeited bail
367	367	19 concerning a criminal offense under the laws of any
368	368	20 jurisdiction, the applicant must include the following
369	369	21 information:
370	370	22 (A) The name and location of the following:
371	371	23 (i) The court.
372	372	24 (ii) The arresting law enforcement agency.
373	373	25 (iii) The prosecuting attorney.
374	374	26 (B) The case number.
375	375	27 (C) The date and type of the criminal offense.
376	376	28 (D) The disposition of the case.
377	377	29 (E) The location and duration of any periods of
378	378	30 incarceration served by the applicant.
379	379	31 (6) If the applicant has had a license or a certificate issued by
380	380	32 a licensing authority in Indiana or any other jurisdiction
381	381	33 denied, restricted, suspended, revoked, or not renewed, the
382	382	34 applicant must provide the following information:
383	383	35 (A) A statement describing the facts and circumstances
384	384	36 concerning the authority's actions concerning the
385	385	37 applicant's license or certificate.
386	386	38 (B) The date of the authority's action concerning the
387	387	39 applicant's license or certificate.
388	388	40 (C) The reason for the authority's action concerning the
389	389	41 applicant's license or certificate.
390	390	42 (7) If the applicant:
391	391	2023 IN 1548—LS 7127/DI 125 10
392	392	1 (A) has filed or has had filed against the applicant a
393	393	2 proceeding in bankruptcy; or
394	394	3 (B) has been involved in a formal process to adjust, defer,
395	395	4 suspend, or work out the payment of a debt;
396	396	5 the applicant must provide the date of filing, the name and
397	397	6 location of the court, the case number of the proceeding, and
398	398	7 the disposition of the proceeding.
399	399	8 (8) If the applicant has filed or been served with a complaint
400	400	9 or notice filed with a public body concerning:
401	401	10 (A) a delinquency in the payment of; or
402	402	11 (B) a dispute over the filing of;
403	403	12 a return or the payment of a tax under federal, state, or local
404	404	13 law, the applicant must include the amount of the disputed
405	405	14 tax, the type of the disputed tax, the name of the taxing agency
406	406	15 involved, and the time involved in the tax dispute.
407	407	16 (9) A statement listing the names and positions of public
408	408	17 officials, public officers, and the relatives of public officials
409	409	18 and public officers who directly or indirectly:
410	410	19 (A) have a financial interest in;
411	411	20 (B) have a beneficial interest in;
412	412	21 (C) are the creditors of;
413	413	22 (D) hold a debt instrument issued by; or
414	414	23 (E) have an interest in a contractual or service relationship
415	415	24 with;
416	416	25 the applicant.
417	417	26 (10) Except as provided in subsection (b), if the applicant has
418	418	27 directly or indirectly made a political contribution, loan,
419	419	28 donation, or other payment to a candidate or an officeholder
420	420	29 in Indiana in the five (5) years before the date of the
421	421	30 application, the applicant must provide the amount and
422	422	31 method of the payment.
423	423	32 (11) The name and business telephone number of the attorney
424	424	33 who will represent the applicant in matters before the
425	425	34 commission.
426	426	35 (12) A description of the product or service to be
427	427	36 manufactured, distributed, or supplied by the applicant if the
428	428	37 applicant is applying for a manufacturer, distributor, or
429	429	38 supplier license.
430	430	39 (b) Subsection (a)(10) does not apply to an applicant for an
431	431	40 establishment license.
432	432	41 Sec. 3. (a) The following information that may be submitted,
433	433	42 collected, or gathered as part of an application for a license under
434	434	2023 IN 1548—LS 7127/DI 125 11
435	435	1 this article is confidential for purposes of IC 5-14-3-4:
436	436	2 (1) Any information concerning a minor child of the
437	437	3 applicant.
438	438	4 (2) The Social Security number of the applicant or the
439	439	5 applicant's spouse.
440	440	6 (3) The home telephone number of the applicant, the
441	441	7 applicant's spouse, or the children of the applicant.
442	442	8 (4) The applicant's birth certificate.
443	443	9 (5) The driver's license number of the applicant or the
444	444	10 applicant's spouse.
445	445	11 (6) The name or address of any former spouse of the
446	446	12 applicant.
447	447	13 (7) The date of birth of the applicant's spouse.
448	448	14 (8) The place of birth of the applicant's spouse.
449	449	15 (9) The personal financial records of the applicant, the
450	450	16 applicant's spouse, or a minor child of the applicant.
451	451	17 (10) Any information concerning the applicant being a victim
452	452	18 of domestic violence, sexual assault, or stalking.
453	453	19 (11) The electronic mail address of the applicant, the spouse
454	454	20 of an applicant, or a family member of an applicant.
455	455	21 (b) In addition to information that is confidential under
456	456	22 subsection (a), all information maintained by the commission
457	457	23 concerning an applicant who holds, has held, or has applied for a
458	458	24 license under this article:
459	459	25 (1) is confidential for purposes of IC 5-14-3; and
460	460	26 (2) may be released by the commission only for law
461	461	27 enforcement purposes or to a state agency.
462	462	28 Sec. 4. Notwithstanding any other law, the commission shall
463	463	29 provide upon written request the following information:
464	464	30 (1) The information provided under section 2 of this chapter
465	465	31 concerning a licensee or an applicant.
466	466	32 (2) The aggregate amount of tax paid to the state by all of the
467	467	33 establishments located in each municipality or county.
468	468	34 (3) A copy of any documentation from the commission
469	469	35 providing the reasons for the denial, revocation, suspension,
470	470	36 or nonrenewal of a license.
471	471	37 (4) A copy of any documentation from the commission
472	472	38 providing the reasons for the commission's refusal to allow an
473	473	39 applicant to withdraw the applicant's application.
474	474	40 Chapter 5. Licensing of Persons
475	475	41 Sec. 1. (a) The commission may issue the following licenses
476	476	42 under this chapter to qualified applicants:
477	477	2023 IN 1548—LS 7127/DI 125 12
478	478	1 (1) A manufacturer license.
479	479	2 (2) A distributor license.
480	480	3 (3) A supplier license.
481	481	4 (4) An operator license.
482	482	5 (5) An establishment license.
483	483	6 (b) To obtain a license, a person must submit an application
484	484	7 form, an application fee, and any information requested by the
485	485	8 commission under this article.
486	486	9 (c) The commission shall, promptly and in reasonable order,
487	487	10 approve or reject all license applications received under this
488	488	11 article.
489	489	12 Sec. 2. The burden is on each applicant to demonstrate the
490	490	13 applicant's suitability for a license issued under this article. The
491	491	14 commission may issue or deny a license as provided by this article.
492	492	15 Sec. 3. An applicant for a license under this article must submit
493	493	16 to a background investigation conducted by the commission with
494	494	17 the assistance of the state police department or another law
495	495	18 enforcement agency.
496	496	19 Sec. 4. A person may not be licensed under this article if any of
497	497	20 the following apply:
498	498	21 (1) The applicant has knowingly made a false statement of
499	499	22 material fact to the commission.
500	500	23 (2) The applicant is found by the commission to lack the
501	501	24 necessary financial stability or responsibility to hold an
502	502	25 establishment license issued under this article.
503	503	26 (3) The applicant, if an individual, is less than twenty-one (21)
504	504	27 years of age on the date on which the application is received
505	505	28 by the commission.
506	506	29 (4) The applicant is on the most recent tax warrant list.
507	507	30 (5) The applicant, if an individual, has been convicted of or
508	508	31 entered a plea of guilty or nolo contendere to a crime set forth
509	509	32 in IC 35-45-5 or a crime of moral turpitude.
510	510	33 (6) The applicant, if an individual, has been convicted of or
511	511	34 entered a plea of guilty or nolo contendere to a felony under
512	512	35 Indiana law, the laws of any other state, or the laws of the
513	513	36 United States within the ten (10) years preceding the date of
514	514	37 the license application.
515	515	38 (7) The applicant, if an individual, has been convicted of or
516	516	39 entered a plea of guilty or nolo contendere to a felony under
517	517	40 Indiana law, the laws of any other state, or the laws of the
518	518	41 United States more than ten (10) years preceding the date of
519	519	42 the license application, unless the commission determines
520	520	2023 IN 1548—LS 7127/DI 125 13
521	521	1 that:
522	522	2 (A) the individual has been pardoned or the individual's
523	523	3 civil rights have been restored;
524	524	4 (B) after the conviction or entry of the plea, the individual
525	525	5 has engaged in the kind of law abiding commerce and good
526	526	6 citizenship that would reflect well upon the integrity of the
527	527	7 commission; or
528	528	8 (C) the individual has terminated a relationship with a
529	529	9 person whose actions directly contributed to the conviction
530	530	10 or entry of the plea.
531	531	11 (8) The applicant fails to provide all materials requested by
532	532	12 the commission.
533	533	13 (9) The applicant has a background, including a criminal
534	534	14 record, reputation, habits, social or business associations, or
535	535	15 prior activities, that poses a threat to the public interests of
536	536	16 the state or to the security and integrity of video gaming.
537	537	17 (10) The applicant may create or enhance the dangers of
538	538	18 unsuitable, unfair, or illegal practices, methods, and activities
539	539	19 in the conduct of video gaming.
540	540	20 (11) The applicant presents questionable business practices
541	541	21 and financial arrangements incidental to the conduct of video
542	542	22 gaming operations.
543	543	23 Sec. 5. The fact that an applicant:
544	544	24 (1) has faced charges of a crime described in section 4(5) or
545	545	25 4(6) of this chapter that were ultimately dismissed; or
546	546	26 (2) has been charged with a crime described in section 4(5) or
547	547	27 4(6) of this chapter, but not convicted of the crime;
548	548	28 is not sufficient grounds to disqualify the applicant for a license
549	549	29 under this article in the absence of other facts determined by the
550	550	30 commission to support a finding of unsuitability under section 4(9)
551	551	31 through 4(11) of this chapter.
552	552	32 Sec. 6. The costs of investigating an applicant for a license under
553	553	33 this chapter must be paid from the initial license fee paid by the
554	554	34 applicant under IC 4-39.5-13.
555	555	35 Sec. 7. The commission shall conduct or cause to be conducted
556	556	36 a background investigation of each applicant for a license issued
557	557	37 under this chapter.
558	558	38 Sec. 8. Criminal history record information obtained during the
559	559	39 investigation of an individual must be maintained by the
560	560	40 commission for the term of the license and for any subsequent
561	561	41 license term.
562	562	42 Sec. 9. The commission may require that an application or other
563	563	2023 IN 1548—LS 7127/DI 125 14
564	564	1 document submitted by an applicant or a licensee must be sworn
565	565	2 to or affirmed before a notary public.
566	566	3 Sec. 10. An applicant must furnish all information requested by
567	567	4 the commission, including financial data and documents,
568	568	5 certifications, consents, waivers, and individual histories.
569	569	6 Sec. 11. (a) An initial license issued under this chapter is valid
570	570	7 for one (1) year. A person holding a manufacturer license, a
571	571	8 distributor license, a supplier license, or an operator license may
572	572	9 annually renew the license if:
573	573	10 (1) the commission determines that the person satisfies the
574	574	11 conditions of this article; and
575	575	12 (2) the person pays the annual renewal fee under IC 4-39.5-13.
576	576	13 (b) A person holding a manufacturer license, a distributor
577	577	14 license, a supplier license, or an operator license is subject to a
578	578	15 complete investigation every three (3) years to determine that the
579	579	16 person is in compliance with this article. The costs of the
580	580	17 investigation must be paid from the renewal license fee paid under
581	581	18 IC 4-39.5-13.
582	582	19 (c) Notwithstanding subsection (b), the commission may
583	583	20 investigate a person holding a manufacturer license, a distributor
584	584	21 license, a supplier license, or an operator license at any time the
585	585	22 commission determines that an investigation is necessary to ensure
586	586	23 that the person remains in compliance with this article.
587	587	24 Sec. 12. (a) The commission may issue an establishment license
588	588	25 to an applicant that satisfies the requirements of this article.
589	589	26 (b) An establishment license allows the licensee to conduct video
590	590	27 gaming under a video gaming terminal installation contract at the
591	591	28 street address specified in the licensee's application for the
592	592	29 establishment license. A person must obtain a separate
593	593	30 establishment license for each premises at which the person wishes
594	594	31 to conduct video gaming under a video gaming terminal
595	595	32 installation contract.
596	596	33 (c) An establishment license issued under this chapter is valid
597	597	34 for one (1) year. An establishment may annually renew the license
598	598	35 if:
599	599	36 (1) the commission determines that the establishment satisfies
600	600	37 the conditions of this article; and
601	601	38 (2) the establishment pays the annual renewal fee under
602	602	39 IC 4-39.5-13.
603	603	40 Sec. 13. (a) To qualify for an establishment license, a person
604	604	41 must operate:
605	605	42 (1) a fraternal organization establishment, as defined by
606	606	2023 IN 1548—LS 7127/DI 125 15
607	607	1 IC 4-39.5-2-8;
608	608	2 (2) a veterans organization establishment, as defined by
609	609	3 IC 4-39.5-2-21;
610	610	4 (3) except as provided in subsection (b)(5), an establishment
611	611	5 licensed under IC 7.1-3 to sell alcoholic beverages to
612	612	6 customers for consumption on the premises of the
613	613	7 establishment; or
614	614	8 (4) a truck stop establishment.
615	615	9 (b) The following may not apply for an establishment license
616	616	10 under this article:
617	617	11 (1) A person holding a horse track permit under IC 7.1-3-17.7.
618	618	12 (2) A licensed owner of a riverboat licensed under IC 4-33.
619	619	13 (3) An operating agent who operates a riverboat in a historic
620	620	14 hotel district under IC 4-33-6.5.
621	621	15 (4) A person holding a gambling game license issued under
622	622	16 IC 4-35-5.
623	623	17 (5) A person holding a permit issued under IC 7.1-3 for any of
624	624	18 the following:
625	625	19 (A) A boat permit.
626	626	20 (B) A hotel permit.
627	627	21 (C) A resort hotel permit.
628	628	22 (D) An airport permit.
629	629	23 (E) A satellite facility permit.
630	630	24 (F) A microbrewery permit.
631	631	25 (G) A social club permit.
632	632	26 (H) A civic center permit.
633	633	27 (I) A catering hall permit.
634	634	28 (J) A dining car permit.
635	635	29 (K) A temporary event permit.
636	636	30 (L) A permit for any of the following facilities:
637	637	31 (i) A stadium.
638	638	32 (ii) An automobile race track.
639	639	33 (iii) A concert hall.
640	640	34 (6) A person (other than a truck stop establishment) operating
641	641	35 a convenience store.
642	642	36 Sec. 14. If the commission proposes to revoke a license issued
643	643	37 under this chapter, the licensee may continue to operate under the
644	644	38 license until the commission has made a decision and all
645	645	39 administrative appeals have been exhausted by the licensee.
646	646	40 Chapter 6. Restrictions on Licensees and Other Persons
647	647	41 Sec. 1. A person holding a manufacturer license or a person
648	648	42 holding an interest in a person holding a manufacturer license may
649	649	2023 IN 1548—LS 7127/DI 125 16
650	650	1 not:
651	651	2 (1) hold an operator license;
652	652	3 (2) hold an establishment license; or
653	653	4 (3) own an equity interest in a person holding an operator
654	654	5 license or establishment license.
655	655	6 Sec. 2. A person holding a distributor license or a person
656	656	7 holding an interest in a person holding a distributor license may
657	657	8 not:
658	658	9 (1) hold an operator license;
659	659	10 (2) hold an establishment license; or
660	660	11 (3) own an equity interest in a person holding an operator
661	661	12 license or establishment license.
662	662	13 Sec. 3. A person holding a supplier license or a person holding
663	663	14 an interest in a person holding a supplier license may not:
664	664	15 (1) hold an establishment license; or
665	665	16 (2) own an equity interest in a person holding an
666	666	17 establishment license.
667	667	18 Sec. 4. A person holding an operator license or a person holding
668	668	19 an interest in a person holding an operator license may not:
669	669	20 (1) hold a manufacturer license;
670	670	21 (2) hold a distributor license;
671	671	22 (3) hold an establishment license; or
672	672	23 (4) own an equity interest in a person holding a manufacturer
673	673	24 license, a distributor license, or an establishment license.
674	674	25 Sec. 5. A person holding an establishment license or an owner or
675	675	26 a manager of a person holding an establishment license may not:
676	676	27 (1) hold a manufacturer license;
677	677	28 (2) hold a distributor license;
678	678	29 (3) hold a supplier license;
679	679	30 (4) hold an operator license; or
680	680	31 (5) own an equity interest in a person holding a manufacturer
681	681	32 license, a distributor license, a supplier license, or an operator
682	682	33 license.
683	683	34 Sec. 6. Notwithstanding sections 1 through 5 of this chapter, a
684	684	35 licensee may hold an otherwise prohibited equity interest of not
685	685	36 more than five percent (5%) in another person holding a license
686	686	37 under this article if the other person is registered with the
687	687	38 Securities and Exchange Commission.
688	688	39 Sec. 7. A person may not assemble, sell, lease, or contract to sell
689	689	40 or lease a video gaming terminal to a distributor unless the person
690	690	41 holds a valid manufacturer license.
691	691	42 Sec. 8. A person may not sell, lease, or contract to sell or lease
692	692	2023 IN 1548—LS 7127/DI 125 17
693	693	1 a video gaming terminal to an operator unless the person holds a
694	694	2 valid distributor license.
695	695	3 Sec. 9. A person may not place, install, or manage the operations
696	696	4 of a video gaming terminal or the major components or parts of a
697	697	5 video gaming terminal in an establishment unless the person holds
698	698	6 a valid operator license. A person may not own or lease a video
699	699	7 gaming terminal or major components or parts of a video gaming
700	700	8 terminal unless the person holds a valid operator license.
701	701	9 Sec. 10. A person may not service, maintain, repair, possess,
702	702	10 control, or have access to a video gaming terminal or major
703	703	11 components or parts of a video gaming terminal unless the person
704	704	12 holds a valid operator license under this article.
705	705	13 Sec. 11. (a) A manufacturer may not:
706	706	14 (1) be licensed as an operator; or
707	707	15 (2) own, control, or manage an establishment.
708	708	16 (b) A distributor may not:
709	709	17 (1) be licensed as an operator; or
710	710	18 (2) own, control, or manage an establishment.
711	711	19 (c) An operator may not:
712	712	20 (1) be licensed as a manufacturer or distributor; or
713	713	21 (2) own, control, or manage an establishment.
714	714	22 (d) An operator may contract only with other licensees under
715	715	23 this article.
716	716	24 Sec. 12. (a) An operator may not give anything of value,
717	717	25 including a loan or a financing arrangement, to any establishment
718	718	26 as an incentive or inducement to locate video gaming terminals in
719	719	27 that establishment.
720	720	28 (b) An establishment may not accept anything of value,
721	721	29 including a loan or a financing arrangement, from any person as
722	722	30 an incentive or inducement to locate video gaming terminals in that
723	723	31 establishment.
724	724	32 Chapter 7. Video Gaming Terminal Standards
725	725	33 Sec. 1. A licensee may not install a video gaming terminal in a
726	726	34 licensed establishment under a video gaming terminal installation
727	727	35 contract unless the video gaming terminal has been approved by
728	728	36 the commission.
729	729	37 Sec. 2. The commission may use the services of an independent
730	730	38 testing laboratory to test video gaming terminals for compliance
731	731	39 with this chapter.
732	732	40 Sec. 3. A video gaming terminal must do the following to satisfy
733	733	41 the requirements for approval under this chapter:
734	734	42 (1) Conform to all requirements of federal law, including
735	735	2023 IN 1548—LS 7127/DI 125 18
736	736	1 Class A Emissions Standards imposed under 47 CFR 15.
737	737	2 (2) Pay out a mathematically demonstrable percentage during
738	738	3 the service life of the terminal of at least eighty percent
739	739	4 (80%), but not more than ninety-five percent (95%).
740	740	5 (3) Use a random selection process to determine the outcome
741	741	6 of each play of a game.
742	742	7 (4) Use a random selection process that meets ninety-nine
743	743	8 percent (99%) confidence limits using a standard chi-square
744	744	9 test for goodness of fit.
745	745	10 (5) Display an accurate representation of the game outcome.
746	746	11 (6) Be capable of detecting and displaying the following
747	747	12 conditions during an idle state or on demand:
748	748	13 (A) Power reset.
749	749	14 (B) Door open.
750	750	15 (C) Door just closed.
751	751	16 (7) Be capable of displaying complete play history, including
752	752	17 outcome, intermediate play steps, credits available, bets
753	753	18 placed, credits paid, and credits cashed out, for the eleven (11)
754	754	19 games most recently played on the terminal.
755	755	20 (8) Allow for the replacement of parts or modules required
756	756	21 for normal maintenance without requiring the replacement of
757	757	22 the electromechanical meters.
758	758	23 (9) House in a locked area of the terminal meters that:
759	759	24 (A) are incapable of being reset; and
760	760	25 (B) keep a permanent record of the value of any electronic
761	761	26 card inserted into the terminal, all winnings made by the
762	762	27 terminal printer, credits played, and credits won by video
763	763	28 gaming players.
764	764	29 (10) Allow on demand display of the information recorded in
765	765	30 compliance with subdivision (9)(B).
766	766	31 (11) Use accounting software that keeps an electronic record
767	767	32 of at least the following information:
768	768	33 (A) The total value of all electronic cards inserted into the
769	769	34 terminal.
770	770	35 (B) The value of winning tickets claimed by players.
771	771	36 (C) The total credits played.
772	772	37 (D) The total credits awarded by the terminal.
773	773	38 (E) The payback percentage credited to the players of each
774	774	39 game.
775	775	40 (12) Link to a central communications system to provide
776	776	41 auditing program information required by the commission.
777	777	42 Sec. 4. The commission may not approve a video gaming
778	778	2023 IN 1548—LS 7127/DI 125 19
779	779	1 terminal:
780	780	2 (1) on which an automatic alteration of pay tables or any
781	781	3 function of the video gaming terminal through an internal
782	782	4 computation of hold percentage is possible;
783	783	5 (2) that is subject to any means of manipulation that affects
784	784	6 the random selection process or the probabilities of winning
785	785	7 a game; or
786	786	8 (3) that may be adversely affected by a static discharge or
787	787	9 other electromagnetic interference.
788	788	10 Sec. 5. The theoretical payback percentage of a video gaming
789	789	11 terminal may not be altered except by changing the hardware or
790	790	12 software of the video gaming terminal on site or through the
791	791	13 central communications system required by IC 4-39.5-9-5.
792	792	14 Sec. 6. The operator shall retain any electronically stored meter
793	793	15 information recorded in accordance with this chapter for at least
794	794	16 one hundred eighty (180) days after a loss of electric power to a
795	795	17 video gaming terminal in service at a licensed establishment.
796	796	18 Chapter 8. Video Gaming Terminal Installation Contract
797	797	19 Sec. 1. A video gaming terminal installation contract must
798	798	20 include the following terms and conditions:
799	799	21 (1) An affirmative statement that no inducement was offered
800	800	22 by the operator, the agent of the operator, or any other person
801	801	23 regarding the placement and operation of video gaming
802	802	24 terminals on the premises of the establishment.
803	803	25 (2) A provision prohibiting the operator from assigning the
804	804	26 contract to an unlicensed entity.
805	805	27 (3) A provision releasing the establishment from all
806	806	28 contractual obligations to the operator if the operator
807	807	29 surrenders its license, the license of the operator is revoked,
808	808	30 or the commission declines to renew the license of the
809	809	31 operator.
810	810	32 (4) A provision that indemnifies and holds harmless the state,
811	811	33 the commission, and any agent of the commission with respect
812	812	34 to a cause of action arising from the contract.
813	813	35 (5) A statement that the operator's obligation to place video
814	814	36 gaming terminals and the establishment's obligation to allow
815	815	37 the placement of video gaming terminals are both conditioned
816	816	38 upon the parties obtaining the necessary licenses to conduct
817	817	39 video gaming under this article.
818	818	40 Sec. 2. A video gaming terminal installation contract entered
819	819	41 into under this article must require the adjusted gross receipts
820	820	42 derived from video gaming to be allocated as follows:
821	821	2023 IN 1548—LS 7127/DI 125 20
822	822	1 (1) Thirty percent (30%) to the state in the form of taxes
823	823	2 remitted under IC 4-39.5-12.
824	824	3 (2) Thirty-five percent (35%) to the operator.
825	825	4 (3) Thirty-five percent (35%) to the establishment.
826	826	5 Chapter 9. Conduct of Video Gaming
827	827	6 Sec. 1. (a) In the case of an establishment licensed for the
828	828	7 consumption of alcoholic beverages on the premises of the
829	829	8 establishment, a video gaming terminal may be played only during
830	830	9 the period beginning one (1) hour before the lawful consumption
831	831	10 of alcoholic beverages begins in the establishment and ending one
832	832	11 (1) hour after the lawful consumption of alcoholic beverages ends
833	833	12 in the establishment.
834	834	13 (b) An establishment that violates this section is subject to:
835	835	14 (1) the suspension, termination, or revocation of the
836	836	15 establishment's license; or
837	837	16 (2) other disciplinary action as determined by the commission.
838	838	17 Sec. 2. An operator must own or lease each video gaming
839	839	18 terminal installed under this article. An operator is responsible for
840	840	19 maintaining each video gaming terminal owned or leased by the
841	841	20 operator. An operator shall ensure that each video gaming
842	842	21 terminal owned or leased by the operator is in compliance with this
843	843	22 article and the requirements of the commission.
844	844	23 Sec. 3. (a) An operator must maintain liability insurance on any
845	845	24 video gaming terminal or equipment placed or installed in an
846	846	25 establishment by the operator.
847	847	26 (b) An establishment must maintain liability insurance on any
848	848	27 video gaming terminal or equipment placed or installed in the
849	849	28 establishment under a video gaming terminal installation contract
850	850	29 under IC 4-39.5-8.
851	851	30 (c) The commission shall determine the minimum amount of
852	852	31 insurance required by this section.
853	853	32 Sec. 4. An establishment shall conspicuously display the
854	854	33 following information on a poster or placard in the public area of
855	855	34 the establishment in which video gaming is conducted:
856	856	35 (1) The telephone number of the toll free telephone line
857	857	36 described in IC 4-33-12-9(c).
858	858	37 (2) That the area is restricted to individuals who are at least
859	859	38 twenty-one (21) years of age.
860	860	39 (3) The telephone number of the operator.
861	861	40 Sec. 5. (a) An operator must ensure that each video gaming
862	862	41 terminal in Indiana is linked to a central communications system.
863	863	42 (b) The central communications system required by this section
864	864	2023 IN 1548—LS 7127/DI 125 21
865	865	1 must:
866	866	2 (1) have game to system communication protocol;
867	867	3 (2) use a standard industry protocol approved by the
868	868	4 commission; and
869	869	5 (3) allow the commission or the operator to activate or
870	870	6 deactivate a particular video gaming terminal from a remote
871	871	7 location.
872	872	8 Sec. 6. An operator is liable for the video gaming wagering tax
873	873	9 imposed under IC 4-39.5-12.
874	874	10 Sec. 7. An operator shall display the odds of winning each game
875	875	11 on or near each video gaming terminal, including the manner in
876	876	12 which the odds are calculated.
877	877	13 Sec. 8. Each video gaming terminal in an establishment must be
878	878	14 installed in an area separated from the public spaces of the
879	879	15 establishment in which a minor may be present. The entrance to
880	880	16 the area must be within the view at all times of at least one (1)
881	881	17 employee who is at least twenty-one (21) years of age. An
882	882	18 establishment may comply with this section by erecting a physical
883	883	19 barrier to the video gaming area, including a partition, gate, or
884	884	20 rope that is secured to the floor or walls.
885	885	21 Sec. 9. A maximum of five (5) video gaming terminals may be
886	886	22 installed in a particular licensed establishment.
887	887	23 Sec. 10. The cost of a credit must be one (1) of the following
888	888	24 amounts:
889	889	25 (1) One cent ($0.01).
890	890	26 (2) Five cents ($0.05).
891	891	27 (3) Ten cents ($0.10).
892	892	28 (4) Twenty-five cents ($0.25).
893	893	29 Sec. 11. The maximum amount that a patron may wager on a
894	894	30 particular game on a video gaming terminal is two dollars ($2).
895	895	31 Sec. 12. The maximum amount that a patron may win on any
896	896	32 individual hand on a video gaming terminal is five hundred
897	897	33 ninety-nine dollars ($599).
898	898	34 Sec. 13. A video gaming terminal may not directly dispense cash,
899	899	35 coins, or any article of exchange or value other than a payment
900	900	36 ticket.
901	901	37 Sec. 14. A patron must be able to obtain a payment ticket at the
902	902	38 end of the patron's play by pressing a ticket dispensing button on
903	903	39 the video gaming terminal.
904	904	40 Sec. 15. A payment ticket must include the following
905	905	41 information:
906	906	42 (1) The total amount of credits and the amount of the cash
907	907	2023 IN 1548—LS 7127/DI 125 22
908	908	1 award, if any, won by the patron.
909	909	2 (2) The date and time that the payment ticket is dispensed.
910	910	3 (3) The serial number of the video gaming terminal.
911	911	4 (4) The sequential number of the payment ticket.
912	912	5 (5) An encrypted validation number from which the validity
913	913	6 of the cash award, if any, may be determined.
914	914	7 (6) The one (1) year expiration date of the payment ticket.
915	915	8 Sec. 16. A patron may collect any cash award won on a video
916	916	9 gaming terminal by submitting the payment ticket into a payout
917	917	10 device located in the establishment.
918	918	11 Sec. 17. The following persons may not wager on a video gaming
919	919	12 terminal:
920	920	13 (1) An employee of the commission.
921	921	14 (2) A person less than twenty-one (21) years of age.
922	922	15 Sec. 18. (a) Except as provided in subsection (c), video gaming
923	923	16 may not be conducted at an establishment located within one
924	924	17 hundred (100) feet of a school or place of worship.
925	925	18 (b) Except as provided in subsection (c), video gaming may not
926	926	19 be conducted at an establishment located within one thousand
927	927	20 (1,000) feet of a casino regulated under IC 4-33 or IC 4-35.
928	928	21 (c) The prohibitions on video gaming near facilities described in
929	929	22 subsections (a) and (b) do not apply if a facility described in
930	930	23 subsection (a) or (b) is opened within the minimum distance of an
931	931	24 establishment after video gaming has commenced at the
932	932	25 establishment.
933	933	26 Chapter 10. Crimes and Penalties
934	934	27 Sec. 1. A person who knowingly or intentionally:
935	935	28 (1) makes a false statement on an application submitted under
936	936	29 this article;
937	937	30 (2) conducts video gaming in a manner other than the manner
938	938	31 required by this article; or
939	939	32 (3) permits a person less than twenty-one (21) years of age to
940	940	33 make a wager on a video gaming terminal;
941	941	34 commits a Class A misdemeanor.
942	942	35 Sec. 2. A licensee who knowingly or intentionally violates
943	943	36 IC 4-39.5-6-12 commits a Level 6 felony.
944	944	37 Sec. 3. The commission may impose a civil penalty of not more
945	945	38 than five thousand dollars ($5,000) upon a licensee that permits a
946	946	39 person barred from wagering under IC 4-39.5-9-17 to place a
947	947	40 wager on a video gaming terminal.
948	948	41 Chapter 11. Judicial Review
949	949	42 Sec. 1. Except as provided in this article, IC 4-21.5 applies to
950	950	2023 IN 1548—LS 7127/DI 125 23
951	951	1 actions of the commission.
952	952	2 Sec. 2. An appeal of a final rule or order of the commission
953	953	3 issued under this article may be commenced under IC 4-21.5 in the
954	954	4 circuit court of the county containing an affected licensed
955	955	5 establishment.
956	956	6 Sec. 3. (a) The commission may require a licensee to suspend
957	957	7 video gaming operations without notice or hearing if the
958	958	8 commission determines that the safety or health of patrons or
959	959	9 employees would be threatened by the continued operation of video
960	960	10 gaming in the licensed establishment.
961	961	11 (b) The suspension of video gaming operations under this
962	962	12 section may remain in effect until the commission determines that
963	963	13 the cause for suspension has been abated. The commission may
964	964	14 revoke a license issued under this article if the commission
965	965	15 determines that the licensee has not made satisfactory progress
966	966	16 toward abating the hazard.
967	967	17 Chapter 12. Video Gaming Wagering Tax
968	968	18 Sec. 1. A tax is imposed on the adjusted gross receipts from
969	969	19 video gaming authorized under this article at the rate of thirty
970	970	20 percent (30%). Each operator owning or leasing a video gaming
971	971	21 terminal on which video gaming is conducted is liable for the tax
972	972	22 imposed by this section.
973	973	23 Sec. 2. An operator shall remit an amount equal to thirty
974	974	24 percent (30%) of the tax imposed by section 1 of this chapter to the
975	975	25 department before the fifteenth day of the calendar month
976	976	26 following the calendar month in which the adjusted gross receipts
977	977	27 are received by the operator. The operator shall divide the
978	978	28 remaining seventy percent (70%) as provided in IC 4-39.5-8-2(2)
979	979	29 and IC 4-39.5-8-2(3).
980	980	30 Sec. 3. The operator shall submit the following information to
981	981	31 the department on a form prescribed by the department before the
982	982	32 fifteenth day of each month:
983	983	33 (1) The total amount of adjusted gross receipts received from
984	984	34 video gaming in the previous month.
985	985	35 (2) The total amount of gross receipts received from video
986	986	36 gaming in the previous month.
987	987	37 (3) The total amount of taxes remitted under section 2 of this
988	988	38 chapter.
989	989	39 (4) The information required by subdivisions (1) through (3)
990	990	40 for each licensed establishment conducting video gaming on
991	991	41 video gaming terminals owned or leased by the operator in
992	992	42 the previous month.
993	993	2023 IN 1548—LS 7127/DI 125 24
994	994	1 (5) The location of each establishment conducting video
995	995	2 gaming on video gaming terminals owned or leased by the
996	996	3 operator in the previous month, including whether the
997	997	4 establishment is located in an unincorporated area of a
998	998	5 county.
999	999	6 Sec. 4. The department shall require payment under this
1000	1000	7 chapter to be made by electronic funds transfer (as defined in
1001	1001	8 IC 4-8.1-2-7(f)).
1002	1002	9 Sec. 5. (a) Except as provided in subsection (b), the department
1003	1003	10 shall do the following with the tax revenue remitted to the
1004	1004	11 department each month under section 2 of this chapter:
1005	1005	12 (1) Set aside thirty-five percent (35%) of the revenue for a
1006	1006	13 quarterly allocation to the municipality where the licensed
1007	1007	14 establishment conducting video gaming on video gaming
1008	1008	15 terminals owned or leased by the operator that submitted the
1009	1009	16 taxes is located.
1010	1010	17 (2) Set aside thirty-five percent (35%) of the revenue for a
1011	1011	18 quarterly allocation to the county where the licensed
1012	1012	19 establishment conducting video gaming on video gaming
1013	1013	20 terminals owned or leased by the operator that submitted the
1014	1014	21 taxes is located.
1015	1015	22 (3) Deposit thirty percent (30%) of the revenue in the state
1016	1016	23 general fund.
1017	1017	24 (b) If revenue is collected from an operator that operates in an
1018	1018	25 unincorporated area of a county, the department shall do the
1019	1019	26 following with the tax revenue remitted to the department each
1020	1020	27 month under section 2 of this chapter:
1021	1021	28 (1) Set aside seventy percent (70%) of the revenue for a
1022	1022	29 quarterly allocation to the county where the licensed
1023	1023	30 establishment conducting video gaming on video gaming
1024	1024	31 terminals owned or leased by the operator that submitted the
1025	1025	32 taxes is located.
1026	1026	33 (2) Deposit thirty percent (30%) of the revenue in the state
1027	1027	34 general fund.
1028	1028	35 (c) A county may use the revenue received under this section
1029	1029	36 only for the following purposes:
1030	1030	37 (1) Mental health treatment for jail inmates.
1031	1031	38 (2) Addiction interventions for jail inmates.
1032	1032	39 (3) Contributions to the pension fund of the county's sheriff's
1033	1033	40 department.
1034	1034	41 (4) Training and equipment for the county's sheriff's
1035	1035	42 department.
1036	1036	2023 IN 1548—LS 7127/DI 125 25
1037	1037	1 (d) A municipality may use the revenue received under this
1038	1038	2 section only for the following purposes:
1039	1039	3 (1) Mental health treatment for jail inmates.
1040	1040	4 (2) Addiction interventions for jail inmates.
1041	1041	5 (3) Contributions to the 1977 police officers' and firefighters'
1042	1042	6 pension and disability fund established by IC 36-8-8-4.
1043	1043	7 (4) Training and equipment for the police department of the
1044	1044	8 municipality.
1045	1045	9 Chapter 13. License Fees
1046	1046	10 Sec. 1. The commission shall charge the following initial license
1047	1047	11 fees:
1048	1048	12 (1) Twenty-five thousand dollars ($25,000) for an initial
1049	1049	13 manufacturer license, an initial distributor license, or an
1050	1050	14 initial supplier license issued to a person residing or domiciled
1051	1051	15 in Indiana.
1052	1052	16 (2) Thirty-five thousand dollars ($35,000) for an initial
1053	1053	17 manufacturer license, an initial distributor license, or an
1054	1054	18 initial supplier license issued to a person residing or domiciled
1055	1055	19 in a state other than Indiana or a country other than the
1056	1056	20 United States.
1057	1057	21 (3) Fifteen thousand dollars ($15,000) for an initial operator
1058	1058	22 license issued to a person residing or domiciled in Indiana.
1059	1059	23 (4) Twenty-five thousand dollars ($25,000) for an initial
1060	1060	24 operator license issued to a person residing or domiciled in a
1061	1061	25 state other than Indiana or a country other than the United
1062	1062	26 States.
1063	1063	27 (5) Five hundred dollars ($500) for an initial establishment
1064	1064	28 license.
1065	1065	29 Sec. 2. (a) A person holding a distributor license, a
1066	1066	30 manufacturer license, or a supplier license shall pay an annual
1067	1067	31 license renewal fee of ten thousand dollars ($10,000).
1068	1068	32 (b) A person holding an operator license shall pay an annual
1069	1069	33 license renewal fee of five thousand dollars ($5,000).
1070	1070	34 (c) The commission shall charge each person holding an
1071	1071	35 establishment license the following annual renewal fees:
1072	1072	36 (1) One hundred dollars ($100) for a licensed establishment
1073	1073	37 that had adjusted gross receipts of less than twenty-five
1074	1074	38 thousand dollars ($25,000) in the previous twelve (12)
1075	1075	39 calendar months.
1076	1076	40 (2) Two hundred fifty dollars ($250) for a licensed
1077	1077	41 establishment that had adjusted gross receipts of at least
1078	1078	42 twenty-five thousand dollars ($25,000) but less than fifty
1079	1079	2023 IN 1548—LS 7127/DI 125 26
1080	1080	1 thousand dollars ($50,000) in the previous twelve (12)
1081	1081	2 calendar months.
1082	1082	3 (3) Five hundred dollars ($500) for a licensed establishment
1083	1083	4 that had adjusted gross receipts of at least fifty thousand
1084	1084	5 dollars ($50,000) but less than one hundred thousand dollars
1085	1085	6 ($100,000) in the previous twelve (12) calendar months.
1086	1086	7 (4) One thousand dollars ($1,000) for a licensed establishment
1087	1087	8 that had adjusted gross receipts of at least one hundred
1088	1088	9 thousand dollars ($100,000) in the previous twelve (12)
1089	1089	10 calendar months.
1090	1090	11 Sec. 3. A licensee shall pay the annual renewal fee due under
1091	1091	12 section 2 of this chapter on the first day of the calendar month
1092	1092	13 containing the anniversary date of the issuance of the licensee's
1093	1093	14 establishment license.
1094	1094	15 Sec. 4. The commission shall deposit the following into the state
1095	1095	16 general fund:
1096	1096	17 (1) All fees collected under this chapter.
1097	1097	18 (2) All application fees received under IC 4-39.5-5.
1098	1098	19 SECTION 3. IC 6-8.1-1-1, AS AMENDED BY P.L.138-2022,
1099	1099	20 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1100	1100	21 JULY 1, 2023]: Sec. 1. "Listed taxes" or "taxes" includes only the
1101	1101	22 pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the supplemental
1102	1102	23 wagering tax (IC 4-33-12); the riverboat wagering tax (IC 4-33-13); the
1103	1103	24 slot machine wagering tax (IC 4-35-8); the type II gambling game
1104	1104	25 excise tax (IC 4-36-9); the video gaming wagering tax (IC
1105	1105	26 4-39.5-12); the gross income tax (IC 6-2.1) (repealed); the utility
1106	1106	27 receipts and utility services use taxes (IC 6-2.3) (repealed); the state
1107	1107	28 gross retail and use taxes (IC 6-2.5); the adjusted gross income tax (IC
1108	1108	29 6-3); the supplemental net income tax (IC 6-3-8) (repealed); the county
1109	1109	30 adjusted gross income tax (IC 6-3.5-1.1) (repealed); the county option
1110	1110	31 income tax (IC 6-3.5-6) (repealed); the county economic development
1111	1111	32 income tax (IC 6-3.5-7) (repealed); the local income tax (IC 6-3.6); the
1112	1112	33 auto rental excise tax (IC 6-6-9); the financial institutions tax (IC
1113	1113	34 6-5.5); the gasoline tax (IC 6-6-1.1); the special fuel tax (IC 6-6-2.5);
1114	1114	35 the motor carrier fuel tax (IC 6-6-4.1); a motor fuel tax collected under
1115	1115	36 a reciprocal agreement under IC 6-8.1-3; the vehicle excise tax (IC
1116	1116	37 6-6-5); the aviation fuel excise tax (IC 6-6-13); the commercial vehicle
1117	1117	38 excise tax (IC 6-6-5.5); the excise tax imposed on recreational vehicles
1118	1118	39 and truck campers (IC 6-6-5.1); the hazardous waste disposal tax (IC
1119	1119	40 6-6-6.6) (repealed); the heavy equipment rental excise tax (IC 6-6-15);
1120	1120	41 the vehicle sharing excise tax (IC 6-6-16); the cigarette tax (IC 6-7-1);
1121	1121	42 the closed system cartridge tax (IC 6-7-2-7.5); the electronic cigarette
1122	1122	2023 IN 1548—LS 7127/DI 125 27
1123	1123	1 tax (IC 6-7-4); the beer excise tax (IC 7.1-4-2); the liquor excise tax (IC
1124	1124	2 7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider excise tax (IC
1125	1125	3 7.1-4-4.5); the petroleum severance tax (IC 6-8-1); the various
1126	1126	4 innkeeper's taxes (IC 6-9); the various food and beverage taxes (IC
1127	1127	5 6-9); the county admissions tax (IC 6-9-13 and IC 6-9-28); the oil
1128	1128	6 inspection fee (IC 16-44-2); the penalties assessed for oversize vehicles
1129	1129	7 (IC 9-20-3 and IC 9-20-18); the fees and penalties assessed for
1130	1130	8 overweight vehicles (IC 9-20-4 and IC 9-20-18); and any other tax or
1131	1131	9 fee that the department is required to collect or administer.
1132	1132	10 SECTION 4. IC 35-45-5-15 IS ADDED TO THE INDIANA CODE
1133	1133	11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1134	1134	12 1, 2023]: Sec. 15. This chapter does not apply to video gaming
1135	1135	13 authorized by IC 4-39.5.
1136	1136	14 SECTION 5. IC 35-52-4-36 IS ADDED TO THE INDIANA CODE
1137	1137	15 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1138	1138	16 1, 2023]: Sec. 36. IC 4-39.5-10-1 defines a crime concerning video
1139	1139	17 gaming.
1140	1140	18 SECTION 6. IC 35-52-4-37 IS ADDED TO THE INDIANA CODE
1141	1141	19 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1142	1142	20 1, 2023]: Sec. 37. IC 4-39.5-10-2 defines a crime concerning video
1143	1143	21 gaming.
1144	1144	2023 IN 1548—LS 7127/DI 125