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House Bill 1835


House Bill 1835

ARCHIVE (2007)

Latest Information

 

DIGEST OF HB 1835 (Updated April 29, 2007 11:21 pm - DI 92)


Gaming. Provides that the horse racing commission shall require at least 140 but not more than 165 live racing days at each racetrack. Provides that a permit holder may not conduct more than 14 races on a racing day. Authorizes slot machines at racetracks. Provides that a licensee may not install more than 2,000 slot machines without the approval of the Indiana gaming commission (commission). Limits a permit holder who offers slot machines to the number of satellite facility licenses issued to the permit holder before January 1, 2007. Specifies certain powers and duties of the commission for the purpose of administering, regulating, and enforcing the system of slot machine gambling at racetracks. Provides that a license is null and void if the licensee fails to obtain and maintain a horse racing permit and satisfy the racing requirements of the horse racing law. Requires from each licensee an initial licensing fee of $250,000,000 payable in two annual installments. Requires the commission to deposit the initial licensing fees into the property tax reduction trust fund. Imposes a graduated slot machine wagering tax equal to: (1) 25% of the first $100,000,000 of adjusted gross receipts received during the state fiscal year; (2) 30% of the adjusted gross receipts in excess of $100,000,000 but not exceeding $200,000,000 received during the state fiscal year; and (3) 35% of the adjusted gross receipts in excess of $200,000,000 received during the state fiscal year. Provides that all slot machine wagering taxes are deposited into the property tax reduction trust fund. Imposes a 3% county slot machine wagering fee on a licensee that offers slot machine wagering. Provides that a licensee is not required to pay more than $8,000,000 of fees in any state fiscal year. Provides that the fees are distributed to the county auditor of the county in which the licensee's racetrack is located for distribution to the county and cities and towns in the county. Requires a licensee that offers slot machine wagering to annually pay to the commission a gaming integrity fee of $250,000. Provides that in state fiscal years beginning after June 30, 2007, and ending before July 1, 2012, a licensee that offers slot machine wagering shall pay to the commission a supplemental fee equal to 1% of the adjusted gross receipts received from slot machine wagering. Provides that the supplemental fees are distributed to each licensed owner or operating agent that commences gaming operations with respect to an initial owner's license or the initial term of an operating agent contract after June 30, 2006. Requires a licensee in each state fiscal year to devote to horse racing purses and certain other purposes an amount equal to the lesser of 15% of the adjusted gross receipts from slot machine wagering or $85,000,000 plus inflation. Specifies the distribution of this money. Specifies that beginning with the first year in which slot machine wagering is allowed, the riverboat admissions tax revenue otherwise distributed to the Indiana horse racing commission is reduced each state fiscal year by the money that is dedicated to purses, breed development, and horsemen's associations. Provides that the first $250,000 (from each racetrack) of the money is to be deposited in the gaming integrity fund. Provides that money distributed to a horsemen's association may not be expended unless the expenditure is for the purposes specified in statute and is either for a purpose promoting the equine industry or equine welfare or is for a benevolent purpose that is in the best interests of horse racing in Indiana. Requires a horsemen's association to: (1) annually file a report with the Indiana horse racing commission concerning the use of the money; and (2) register with the Indiana horse racing commission. Allows a slot machine facility to be licensed under the alcoholic beverage laws under the same conditions as a riverboat. Provides that the commission shall establish goals for permit holders concerning contracts for goods and services with minority business enterprises and women's business enterprises. Requires these goals to be equal to goals set by the commission for riverboat gaming licensees. Requires a licensee that offers slot machine wagering at racetracks to annually pay to the division of mental health and addiction a problem gambling fee equal to $500,000 for each racetrack at which the licensee offers slot machine wagering. Specifies the five counties in which a riverboat is currently operating as the Ohio River counties for which a riverboat owner's license may be issued. Provides that a person holding a riverboat owner's license may not move the person's riverboat from the county in which the riverboat was docked on January 1, 2007. Provides that the commission may by rule determine the point at which a person is considered to be admitted to a gambling excursion or admitted to a riverboat, for purposes of collecting the riverboat admissions tax. Increases the riverboat wagering tax rate on adjusted gross receipts exceeding $600,000,000 to 40%. Prohibits local development agreements between the permit holders who operate slot machine facilities and political subdivisions. Provides alternative property tax assessment methodologies for riverboats.
Current Status:
 Law Enacted
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