CHAPTER 6. LICENSING OF OWNERS
IC 4-33-6
Chapter 6. Licensing of Owners
IC 4-33-6-1
Maximum number of licenses
Sec. 1. (a) The commission may issue to a person a license to owna riverboat subject to the numerical and geographical limitation ofowner's licenses under this section, section 3.5 of this chapter, andIC 4-33-4-17. However, not more than ten (10) owner's licenses maybe in effect at any time. Except as provided in subsection (b), thoseten (10) licenses are as follows:
(1) Two (2) licenses for a riverboat that operates from thelargest city located in the counties described underIC 4-33-1-1(1).
(2) One (1) license for a riverboat that operates from the secondlargest city located in the counties described underIC 4-33-1-1(1).
(3) One (1) license for a riverboat that operates from the thirdlargest city located in the counties described underIC 4-33-1-1(1).
(4) One (1) license for a city located in the counties describedunder IC 4-33-1-1(1). This license may not be issued to a citydescribed in subdivisions (1) through (3).
(5) A total of five (5) licenses for riverboats that operate uponthe Ohio River from the following counties:
(A) Vanderburgh County.
(B) Harrison County.
(C) Switzerland County.
(D) Ohio County.
(E) Dearborn County.
The commission may not issue a license to an applicant if theissuance of the license would result in more than one (1)riverboat operating from a county described in this subdivision.
(b) If a city described in subsection (a)(2) or (a)(3) conducts two(2) elections under section 20 of this chapter, and the voters of thecity do not vote in favor of permitting riverboat gambling at either ofthose elections, the license assigned to that city under subsection(a)(2) or (a)(3) may be issued to any city that:
(1) does not already have a riverboat operating from the city;and
(2) is located in a county described in IC 4-33-1-1(1).
(c) In addition to its power to issue owner's licenses undersubsection (a), the commission may also enter into a contract underIC 4-33-6.5 with respect to the operation of one (1) riverboat onbehalf of the commission in a historic hotel district.
(d) A person holding an owner's license may not move theperson's riverboat from the county in which the riverboat was dockedon January 1, 2007, to any other county.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.20-1995,SEC.8; P.L.55-1995, SEC.1; P.L.92-2003, SEC.27; P.L.149-2003,
SEC.1; P.L.233-2007, SEC.14.
IC 4-33-6-2
Applicant requirements for an owner's license
Sec. 2. (a) A person applying for an owner's license under thischapter must pay a nonrefundable application fee to the commission.The commission shall determine the amount of the application fee.
(b) An applicant must submit the following on forms provided bythe commission:
(1) If the applicant is an individual, two (2) sets of theindividual's fingerprints.
(2) If the applicant is not an individual, two (2) sets offingerprints for each officer and director of the applicant.
(c) This subsection applies to an applicant who applies after June30, 2009, for an owner's license. An applicant shall submit for theapproval of the commission a written power of attorney identifyingthe person who, if approved by the commission, would serve as theapplicant's trustee to operate the riverboat. The power of attorneysubmitted under this subsection must:
(1) be executed in the manner required by IC 30-5;
(2) describe the powers that may be delegated to the proposedtrustee;
(3) conform with the requirements established by thecommission under IC 4-33-4-3(a)(10); and
(4) be submitted on the date that the applicant pays theapplication fee described in subsection (a).
(d) The commission shall review the applications for an owner'slicense under this chapter and shall inform each applicant of thecommission's decision concerning the issuance of the owner'slicense.
(e) The costs of investigating an applicant for an owner's licenseunder this chapter shall be paid from the application fee paid by theapplicant.
(f) An applicant for an owner's license under this chapter must payall additional costs that are:
(1) associated with the investigation of the applicant; and
(2) greater than the amount of the application fee paid by theapplicant.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.142-2009,SEC.8.
IC 4-33-6-3
Restrictions on issuance
Sec. 3. The commission may not issue an owner's license underthis chapter to a person if:
(1) the person has been convicted of a felony under Indiana law,the laws of any other state, or laws of the United States;
(2) the person has knowingly or intentionally submitted anapplication for a license under this chapter that contains falseinformation; (3) the person is a member of the commission;
(4) the person is an officer, a director, or a managerial employeeof a person described in subdivision (1) or (2);
(5) the person employs an individual who:
(A) is described in subdivision (1), (2), or (3); and
(B) participates in the management or operation of gamblingoperations authorized under this article;
(6) the person owns an ownership interest of more than the totalamount of ownership interest permitted under section 3.5 of thischapter; or
(7) a license issued to the person:
(A) under this article; or
(B) to own or operate gambling facilities in anotherjurisdiction;
has been revoked.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.149-2003,SEC.2.
IC 4-33-6-3.5
Maximum number of owner's licenses that may be issued to ariverboat owner
Sec. 3.5. (a) For purposes of this section, a person is consideredto have an ownership interest in a riverboat owner's license if theinterest is owned directly or indirectly by the person or by an entitycontrolled by the person.
(b) A person may have up to a one hundred percent (100%)ownership interest in not more than two (2) riverboat licenses issuedunder this chapter.
(c) A person may not have an ownership interest in more than two(2) riverboat owner's licenses issued under this chapter.
(d) This section may not be construed to increase the maximumnumber of licenses permitted under section 1 of this chapter or thenumber of riverboats that may be owned and operated under a licenseunder section 10 of this chapter.
As added by P.L.149-2003, SEC.3.
IC 4-33-6-4
Factors considered in granting licenses; submission of riverboatand dock design
Sec. 4. (a) In determining whether to grant an owner's license toan applicant, the commission shall consider the following:
(1) The character, reputation, experience, and financial integrityof the following:
(A) The applicant.
(B) A person that:
(i) directly or indirectly controls the applicant; or
(ii) is directly or indirectly controlled by the applicant orby a person that directly or indirectly controls theapplicant.
(2) The facilities or proposed facilities for the conduct of
riverboat gambling.
(3) The highest prospective total revenue to be collected by thestate from the conduct of riverboat gambling.
(4) The good faith affirmative action plan of each applicant torecruit, train, and upgrade minorities in all employmentclassifications.
(5) The financial ability of the applicant to purchase andmaintain adequate liability and casualty insurance.
(6) If the applicant has adequate capitalization to provide andmaintain a riverboat for the duration of the license.
(7) The extent to which the applicant exceeds or meets otherstandards adopted by the commission.
(b) In an application for an owner's license, the applicant mustsubmit to the commission a proposed design of the riverboat and thedock. The commission may not grant a license to an applicant if thecommission determines that it will be difficult or unlikely for theriverboat to depart from the dock.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.20-1995,SEC.9; P.L.55-1995, SEC.2.
IC 4-33-6-5
Dock and navigable waterway; identification
Sec. 5. In an application for an owner's license, the applicant muststate the dock at which the riverboat is based and the navigablewaterway on which the riverboat will operate.
As added by P.L.277-1993(ss), SEC.124.
IC 4-33-6-6
Riverboat requirements
Sec. 6. (a) A riverboat that operates in a county described inIC 4-33-1-1(1) or IC 4-33-1-1(2) must:
(1) have either:
(A) a valid certificate of inspection from the United StatesCoast Guard for the carrying of at least five hundred (500)passengers; or
(B) a valid certificate of compliance with marine structuraland life safety standards determined by the commission; and
(2) be at least one hundred fifty (150) feet in length.
(b) This subsection applies only to a riverboat that operates on theOhio River. A riverboat must replicate, as nearly as possible, historicIndiana steamboat passenger vessels of the nineteenth century.However, steam propulsion or overnight lodging facilities are notrequired under this subsection.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.20-1995,SEC.10; P.L.92-2003, SEC.28; P.L.170-2005, SEC.7.
IC 4-33-6-7
Economic development
Sec. 7. (a) In granting a license under this chapter, the commissionmay give favorable consideration to the following: (1) Economically depressed areas of Indiana.
(2) Applicants presenting plans that provide for significanteconomic development over a large geographic area.
(b) This subsection applies to any owner's license issued for a citydescribed in section 1(a)(1) of this chapter. The commission mustrequire the applicant to provide assurances that economicdevelopment will occur in the city and that adequate infrastructureand site preparation will be provided to support the riverboatoperation. In order to prove the assurance that economicdevelopment will occur, the applicant must:
(1) construct or provide for the construction of an approvedhotel; or
(2) cause economic development that will have an economicimpact on the city that exceeds the economic impact that theconstruction of an approved hotel would have.
(c) This subsection applies to an owner's license issued for theCity of East Chicago. If a controlling interest in the owner's licenseis transferred, the fiscal body of the City of East Chicago may adoptan ordinance voiding any term of the development agreement (asdefined by IC 36-1-8-9.5) between:
(1) the city; and
(2) the person transferring the controlling interest in the owner'slicense;
that is in effect as of the date the controlling interest is transferred.The ordinance may provide for any payments made under theredevelopment agreement, including those held in escrow, to beredirected to the City of East Chicago for use as directed byordinance of the city fiscal body. A requirement to redirect apayment is valid to the same extent as if the requirement had beenpart of the original agreement. If the ordinance provides for thevoiding and renegotiation of any part of a redevelopment agreement,the mayor of the City of East Chicago may negotiate with the personacquiring a controlling interest in the owner's license to replace anyterms voided by the ordinance. Terms negotiated under thissubsection must be ratified in an ordinance adopted by the citylegislative body.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.234-2007,SEC.302.
IC 4-33-6-8
Issuance of license; fee; bond
Sec. 8. If the commission determines that a person is eligibleunder this chapter for an owner's license, the commission may issuean owner's license to the person if:
(1) the person pays an initial license fee of twenty-five thousanddollars ($25,000); and
(2) the person posts a bond as required in section 9 of thischapter.
As added by P.L.277-1993(ss), SEC.124.
IC 4-33-6-9
Bond
Sec. 9. (a) A licensed owner must post a bond with thecommission at least sixty (60) days before the commencement ofgambling on the riverboat.
(b) The bond shall be furnished in:
(1) cash or negotiable securities;
(2) a surety bond:
(A) with a surety company approved by the commission; and
(B) guaranteed by a satisfactory guarantor; or
(3) an irrevocable letter of credit issued by a banking institutionof Indiana acceptable to the commission.
(c) If a bond is furnished in cash or negotiable securities, theprincipal shall be placed without restriction at the disposal of thecommission, but income inures to the benefit of the licensee.
(d) The bond:
(1) is subject to the approval of the commission;
(2) must be in an amount that the commission determines willadequately reflect the amount that a local community willexpend for infrastructure and other facilities associated with ariverboat operation; and
(3) must be payable to the commission as obligee for use inpayment of the licensed owner's financial obligations to thelocal community, the state, and other aggrieved parties, asdetermined by the rules of the commission.
(e) If after a hearing (after at least five (5) days written notice) thecommission determines that the amount of a licensed owner's bondis insufficient, the licensed owner shall upon written demand of thecommission file a new bond.
(f) The commission may require a licensed owner to file a newbond with a satisfactory surety in the same form and amount if:
(1) liability on the old bond is discharged or reduced byjudgment rendered, payment made, or otherwise; or
(2) in the opinion of the commission any surety on the old bondbecomes unsatisfactory.
(g) If a new bond obtained under subsection (e) or (f) isunsatisfactory, the commission shall cancel the owner's license. If thenew bond is satisfactorily furnished, the commission shall release inwriting the surety on the old bond from any liability accruing afterthe effective date of the new bond.
(h) A bond is released on the condition that the licensed ownerremains at the site for which the owner's license is granted for thelesser of:
(1) five (5) years; or
(2) the date the commission grants a license to another licensedowner to operate from the site for which the bond was posted.
(i) A licensed owner who does not meet the requirements ofsubsection (h) forfeits a bond filed under this section. The proceedsof a bond that is in default under this subsection are paid to thecommission for the benefit of the local unit from which the riverboat
operated.
(j) The total and aggregate liability of the surety on a bond islimited to the amount specified in the bond, and the continuousnature of the bond may in no event be construed as allowing theliability of the surety under a bond to accumulate for each successiveapproval period during which the bond is in force.
(k) A bond filed under this section is released sixty (60) daysafter:
(1) the time has run under subsection (h); and
(2) a written request is submitted by the licensed owner.
As added by P.L.277-1993(ss), SEC.124. Amended byP.L.192-2002(ss), SEC.12.
IC 4-33-6-10
Riverboat operation and docking; flexible scheduling; licenseexpiration
Sec. 10. (a) An owner's license issued under this chapter permitsthe holder to own and operate one (1) riverboat and equipment foreach license.
(b) The holder of an owner's license issued under this chapter mayimplement flexible scheduling for the operation of the holder'sriverboat under section 21 of this chapter.
(c) An owner's license issued under this chapter must specify theplace where the riverboat must operate and dock. However, thecommission may permit the riverboat to dock at a temporary dock inthe applicable city for a specific period of time not to exceed one (1)year after the owner's license is issued.
(d) An owner's initial license expires five (5) years after theeffective date of the license.
As added by P.L.277-1993(ss), SEC.124. Amended byP.L.192-2002(ss), SEC.13.
IC 4-33-6-11
Revocation of license
Sec. 11. The commission may revoke an owner's license if:
(1) the licensee begins regular operations more than twelve (12)months after receiving the commission's approval of theapplication for the license; and
(2) the commission determines that the revocation of the licenseis in the best interests of Indiana.
As added by P.L.277-1993(ss), SEC.124. Amended byP.L.192-2002(ss), SEC.14.
IC 4-33-6-12
Renewal of license; compliance investigations
Sec. 12. (a) Unless the owner's license is terminated, expires, oris revoked, the owner's license may be renewed annually upon:
(1) the payment of a five thousand dollar ($5,000) annualrenewal fee; and
(2) a determination by the commission that the licensee satisfies
the conditions of this article.
(b) A licensed owner shall undergo a complete investigation everythree (3) years to determine that the licensed owner remains incompliance with this article.
(c) Notwithstanding subsection (b), the commission mayinvestigate a licensed owner at any time the commission determinesit is necessary to ensure that the licensee remains in compliance withthis article.
(d) The licensed owner shall bear the cost of an investigation orreinvestigation of the licensed owner and any investigation resultingfrom a potential transfer of ownership.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.20-1995,SEC.11.
IC 4-33-6-13
Other licenses
Sec. 13. A licensed owner may apply to the commission for andmay hold licenses that are necessary for the operation of a riverboat,including the following:
(1) A license to prepare and serve food for human consumption.
(2) Any other necessary license.
As added by P.L.277-1993(ss), SEC.124.
IC 4-33-6-14
Taxes; sales on riverboats
Sec. 14. All state excise taxes, use taxes, and gross retail taxesapply to sales on a riverboat.
As added by P.L.277-1993(ss), SEC.124.
IC 4-33-6-15
Gambling equipment, devices, and supplies
Sec. 15. A licensed owner may own gambling equipment, devices,and supplies. Each licensed owner must file an annual report listingthe licensed owner's inventories of gambling equipment, devices, andsupplies.
As added by P.L.277-1993(ss), SEC.124.
IC 4-33-6-16
Schools for training occupational licensees
Sec. 16. This article does not prohibit a licensed owner fromoperating a school for the training of occupational licensees.
As added by P.L.277-1993(ss), SEC.124.
IC 4-33-6-17
Nature of license
Sec. 17. A license to operate an excursion gaming boat:
(1) is a revocable privilege granted by the state; and
(2) is not a property right.
As added by P.L.277-1993(ss), SEC.124.
IC 4-33-6-18
Ordinances to permit docking in cities or counties
Sec. 18. (a) This subsection applies to cities described in section1(a)(1) through 1(a)(4) or section (1)(b) of this chapter. Thecommission may not issue a license authorizing a riverboat to dockin a city unless the legislative body of the city has approved anordinance permitting the docking of riverboats in the city.
(b) This subsection applies to a county described in section1(a)(5) of this chapter if the largest city in the county is contiguousto the Ohio River. The commission may not issue a licenseauthorizing a riverboat to dock in the county unless an ordinancepermitting the docking of riverboats in the county has been approvedby the legislative body of the largest city in the county. The licensemust specify that the home dock of the riverboat is to be located inthe largest city in the county.
(c) This subsection applies to a county described in section1(a)(5) of this chapter if the largest city in the county is notcontiguous to the Ohio River. The commission may not issue alicense authorizing a riverboat to dock in the county unless anordinance permitting the docking of riverboats in the county has beenapproved by the county fiscal body.
(d) This subsection applies to a county in which a historic hoteldistrict is located. The commission may not enter into a contractunder IC 4-33-6.5 for the operation of a riverboat in the countyunless an ordinance permitting the docking of riverboats in thecounty has been approved by the county fiscal body.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.2-1995,SEC.8; P.L.92-2003, SEC.29.
IC 4-33-6-19
County approval of riverboat gambling
Sec. 19. (a) This section applies to:
(1) a county contiguous to the Ohio River;
(2) a county containing a historic hotel district; and
(3) a county contiguous to Lake Michigan that has a populationof less than four hundred thousand (400,000).
(b) Notwithstanding any other provision of this article, thecommission may not:
(1) issue a license under this article to allow a riverboat tooperate in the county; or
(2) enter into a contract with an operating agent underIC 4-33-6.5;
unless the voters of the county have approved the conducting ofgambling games on riverboats in the county.
(c) If the docking of a riverboat in the county is approved by anordinance adopted under section 18 of this chapter, or if at least thenumber of the registered voters of the county required underIC 3-8-6-3 for a petition to place a candidate on the ballot sign apetition submitted to the circuit court clerk requesting that a localpublic question concerning riverboat gaming be placed on the ballot,
the county election board shall place the following question on theballot in the county during the next primary or general election:
"Shall riverboat gambling be permitted in ____ County?".
(d) A public question under this section shall be placed on theballot in accordance with IC 3-10-9 and must be certified inaccordance with IC 3-10-9-3.
(e) The clerk of the circuit court of a county holding an electionunder this chapter shall certify the results determined underIC 3-12-4-9 to the commission and the department of state revenue.
(f) If a public question under this section is placed on the ballotin a county and the voters of the county do not vote in favor ofpermitting riverboat gambling under this article, a second publicquestion under this section may not be held in that county for at leasttwo (2) years. If the voters of the county vote to reject riverboatgambling a second time, a third or subsequent public question underthis section may not be held in that county until the general electionheld during the tenth year following the year that the previous publicquestion was placed on the ballot.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.1-1994,SEC.14; P.L.12-1995, SEC.96; P.L.2-1995, SEC.9; P.L.24-1996,SEC.10; P.L.3-1997, SEC.414; P.L.92-2003, SEC.30.
IC 4-33-6-20
City approval of riverboat gambling
Sec. 20. (a) This section applies to a city that:
(1) has a population of less than one hundred thousand(100,000); and
(2) is located in a county contiguous to Lake Michigan that hasa population of more than four hundred thousand (400,000) butless than seven hundred thousand (700,000).
(b) Notwithstanding any other provision of this article, thecommission may not issue a license under this article to allow ariverboat to operate from a city to which this section applies unlessthe voters of the city have approved the conducting of gamblinggames on riverboats in the city.
(c) If the legislative body of the city approves the docking of ariverboat under section 19 of this chapter, or if at least the number ofthe registered voters of the city required under IC 3-8-6-3 for apetition to place a candidate on the ballot sign a petition submittedto the circuit court clerk requesting that a local public questionconcerning riverboat gaming be placed on the ballot, the countyelection board shall place the following question on the ballot in thecity during the next general election:
"Shall licenses be issued to permit riverboat gambling in theCity of _______?".
(d) A public question under this section shall be placed on theballot in accordance with IC 3-10-9 and must be certified inaccordance with IC 3-10-9-3.
(e) The clerk of the circuit court of a county holding an electionunder this chapter shall certify the results determined under
IC 3-12-4-9 to the commission and the department of state revenue.
(f) If a public question under this section is placed on the ballotin a city and the voters of the city do not vote in favor of permittingriverboat gambling under this article, another public question underthis section may not be held in that city for at least two (2) years.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.12-1995,SEC.97; P.L.3-1997, SEC.415.
IC 4-33-6-21
Plan for flexible scheduling; approval by commission
Sec. 21. (a) A licensed owner may submit a plan for flexiblescheduling to the commission by a date designated by thecommission. Upon receipt of an appropriate plan, the commissionshall authorize flexible scheduling and the licensed owner shallimplement the flexible scheduling plan by the date designated by thecommission.
(b) A licensed owner that:
(1) submits a plan for flexible scheduling to the commissionmay include provisions; or
(2) has implemented a flexible scheduling plan may amend theplan to include provisions;
to conduct gambling operations for up to twenty-four (24) hours aday. Upon receipt of a plan or an amendment to a plan concerningoperating hours, the commission shall authorize the licensed ownerto implement the plan or amendment for the days and hours specifiedin the plan or amendment. The licensed owner shall implement theprovisions related to operating days and hours by the date designatedby the commission. If the licensed owner fails or ceases to operate inaccordance with the authorized provisions concerning operating daysand hours, the commission may rescind the authorization.
As added by P.L.192-2002(ss), SEC.15. Amended by P.L.224-2003,SEC.44.
IC 4-33-6-22
Submission of proposed power of attorney
Sec. 22. (a) This section applies to any licensed owner who wasnot required to submit a proposed power of attorney when applyingfor an owner's license.
(b) A licensed owner shall submit for the approval of thecommission a written power of attorney identifying the person who,if approved by the commission, would serve as the licensed owner'strustee to operate the riverboat. The power of attorney submittedunder this subsection must:
(1) be executed in the manner required by IC 30-5;
(2) describe the powers that may be delegated to the proposedtrustee;
(3) conform with the requirements established by thecommission under IC 4-33-4-3(a)(10); and
(4) be submitted before:
(A) November 1, 2009, in the case of a person holding an
owner's license on July 1, 2009; or
(B) the deadline imposed by the commission in the case ofa licensed owner who is subject to this section and notdescribed by clause (A).
(c) The commission may not renew an owner's license unless thecommission:
(1) receives a proposed power of attorney from the licensedowner;
(2) approves the trustee identified by the power of attorney; and
(3) approves the power of attorney.
(d) A licensed owner must petition the commission for itsapproval of any changes to a power of attorney approved by thecommission.
As added by P.L.142-2009, SEC.9.