CHAPTER 6.5. RIVERBOAT OPERATING AGENT CONTRACT
IC 4-33-6.5
Chapter 6.5. Riverboat Operating Agent Contract
IC 4-33-6.5-1
Maximum number of operating agent contracts
Sec. 1. The commission may enter into one (1) operating agentcontract with a person to operate one (1) riverboat on behalf of thecommission in a historic hotel district. The commission shall issuea request for proposals and award the contract under IC 5-22-9.
As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-2
Applicant requirements for an operating agent contract
Sec. 2. (a) A person, including a person who holds or has aninterest in an owner's license issued under this article, may file anapplication with the commission to serve as an operating agent underthis chapter. An applicant must pay a nonrefundable application feeto the commission in an amount to be determined by the commission.
(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 May12, 2009, to serve as an operating agent under this chapter. Anapplicant shall submit for the approval of the commission a writtenpower of attorney identifying the person who, if approved by thecommission, would serve as the applicant's trustee to operate theriverboat. The power of attorney submitted under this subsectionmust:
(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 filed under thischapter and shall inform each applicant of the commission's decision.
(e) The costs of investigating an applicant to serve as an operatingagent under this chapter shall be paid from the application fee paidby the applicant.
(f) An applicant to serve as an operating agent under this chaptermust pay all 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.92-2003, SEC.31. Amended by P.L.142-2009,SEC.10; P.L.1-2010, SEC.9.
IC 4-33-6.5-3
Restrictions on issuance
Sec. 3. The commission may not enter into an operating agentcontract with a person under this chapter if:
(1) the person has been convicted of a felony under Indiana law,the laws of any other state, or the laws of the United States;
(2) the person has knowingly or intentionally submitted anapplication under this chapter that contains false information;
(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 is described insubdivision (1), (2), or (3); or
(6) a license issued to the person to own or operate gamblingfacilities in another jurisdiction has been revoked.
As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-4
Factors considered in granting operating agent contract;submission of proposed riverboat design
Sec. 4. In determining whether to grant an operating agentcontract to an 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 ofriverboat gambling in a historic hotel district. The applicantmust submit to the commission a proposed design of theriverboat.
(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) Whether the applicant has adequate capitalization to operatea riverboat for the duration of the contract.
(7) The extent to which the applicant provides assurances thatthe applicant will participate in the funding of:
(A) specific economic development programs; or
(B) infrastructure improvements;
in the county where the riverboat is located.
(8) The extent to which the applicant exceeds or meets otherstandards adopted by the commission.As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-5
Requirements of operating agent
Sec. 5. After selecting the most appropriate operating agentapplicant, the commission may enter into an operating agent contractwith the person. The operating agent contract must comply with thisarticle and include the following terms and conditions:
(1) The operating agent must pay a nonrefundable initial fee ofone million dollars ($1,000,000) to the commission. The feemust be deposited by the commission into the West BadenSprings historic hotel preservation and maintenance fundestablished by IC 36-7-11.5-11(b).
(2) The operating agent must post a bond as required in section6 of this chapter.
(3) The operating agent must implement flexible scheduling.
(4) The operating agent must locate the riverboat in a historichotel district at a location approved by the commission.
(5) The operating agent must comply with any requirementsconcerning the exterior design of the riverboat that are approvedby the commission.
(6) Notwithstanding any law limiting the maximum length ofcontracts:
(A) the initial term of the contract may not exceed twenty(20) years; and
(B) any renewal or extension period permitted under thecontract may not exceed twenty (20) years.
(7) The operating agent must collect and remit all taxes underIC 4-33-12 and IC 4-33-13.
(8) The operating agent must comply with the restrictions on thetransferability of the operating agent contract under section 12of this chapter.
As added by P.L.92-2003, SEC.31. Amended by P.L.234-2007,SEC.278.
IC 4-33-6.5-6
Bond
Sec. 6. (a) An operating agent must post a bond with thecommission at least sixty (60) days before the commencement ofregular riverboat operations in the historic hotel district.
(b) The bond must 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 operating agent. (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 riverboat's financial obligations to the localcommunity, the state, and other aggrieved parties, as determinedby the rules of the commission.
Any bond proceeds remaining after the payments shall be depositedin the West Baden Springs historic hotel preservation andmaintenance fund established by IC 36-7-11.5-11.
(e) If after a hearing (after at least five (5) days written notice) thecommission determines that the amount of an operating agent's bondis insufficient, the operating agent shall, upon written demand of thecommission, file a new bond.
(f) The commission may require an operating agent 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 operating agent'scontract. If the new bond is satisfactorily furnished, the commissionshall release in writing the surety on the old bond from any liabilityaccruing after the effective date of the new bond.
(h) A bond is released on the condition that the operating agentremains at the site of the riverboat operating within the historic hoteldistrict:
(1) for five (5) years; or
(2) until the date the commission enters into a contract withanother operating agent to operate from the site for which thebond was posted;
whichever occurs first.
(i) An operating agent 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 and used in the same manner as specified in subsection(d).
(j) The total liability of the surety on a bond is limited to theamount specified in the bond, and the continuous nature of the bondmay not be construed as allowing the liability of the surety under abond to accumulate for each successive approval period duringwhich the bond is in force.
(k) A bond filed under this section is released sixty (60) daysafter:
(1) the time specified under subsection (h); and
(2) a written request is submitted by the operating agent.As added by P.L.92-2003, SEC.31. Amended by P.L.234-2007,SEC.279.
IC 4-33-6.5-7
Reinvestigations of operating agent
Sec. 7. (a) An operating agent shall undergo a completeinvestigation at least once every three (3) years to ensure that theoperating agent remains in compliance with this article.
(b) Notwithstanding subsection (a), the commission mayinvestigate an operating agent at any time the commission determinesit is necessary to ensure that the operating agent remains incompliance with this article.
(c) An operating agent shall bear the cost of an investigation or areinvestigation under this section.
As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-8
Maximum number of riverboats operated by operating agent
Sec. 8. An operating agent contract under this chapter permits theoperating agent to operate one (1) riverboat on behalf of thecommission.
As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-9
Other licenses
Sec. 9. An operating agent 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.92-2003, SEC.31.
IC 4-33-6.5-10
Equipment of operating agent; annual inventory report
Sec. 10. An operating agent may own gambling equipment,devices, and supplies. Each operating agent must file an annualreport listing the operating agent's inventories of gamblingequipment, devices, and supplies.
As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-11
Schools for training occupational licensees
Sec. 11. This article does not prohibit an operating agent fromoperating a school for the training of occupational licensees.
As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-12
Operating agent contract, transfer, sale, purchase, or voting trust;rules of procedure; prohibitions
Sec. 12. (a) An operating agent must apply for and receive the
commission's approval before:
(1) an operating agent's contract is:
(A) transferred;
(B) sold; or
(C) purchased; or
(2) a voting trust agreement or other similar agreement isestablished with respect to the operating agent.
(b) The commission shall adopt rules governing the procedure anoperating agent or other person must follow to take an action undersubsection (a). The rules must specify that a person who obtains anownership interest in an operating agent contract must meet thecriteria of this article and any rules adopted by the commission. Anoperating agent may transfer an interest in an operating agentcontract only in accordance with this article and rules adopted by thecommission.
(c) An operating agent or any other person may not:
(1) lease;
(2) hypothecate; or
(3) borrow or loan money against;
an operating agent contract.
As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-13
Prohibited terms of contract
Sec. 13. A contract entered into under this chapter may notinclude any terms under which the operating agent is required to payany amount to the state or the gaming commission other than the feesand taxes specifically authorized or required under this article.
As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-14
Duties of operating agent
Sec. 14. Except as otherwise specifically provided by this article,an operating agent is charged with all the duties imposed upon alicensed owner under this article.
As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-15
Riverboat operated by operating agent subject to property taxes
Sec. 15. A riverboat operated under an operating agent contractunder this article is not exempt from property taxes imposed underIC 6-1.1.
As added by P.L.92-2003, SEC.31.
IC 4-33-6.5-16
Submission of proposed power of attorney
Sec. 16. (a) The person holding an operating agent contract onJuly 1, 2009, shall submit for the approval of the commission awritten power of attorney identifying the person who, if approved bythe commission, would serve as the operating agent's trustee to
operate the riverboat. The power of attorney submitted under thissubsection 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 November 1, 2009.
(b) The commission may not renew an operating agent contractunless the commission:
(1) receives a proposed power of attorney from the operatingagent;
(2) approves the trustee identified by the power of attorney; and
(3) approves the power of attorney.
(c) An operating agent 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.11.