CHAPTER 4. POWERS AND DUTIES OF THE INDIANA GAMING COMMISSION
IC 4-35-4
Chapter 4. Powers and Duties of the Indiana Gaming Commission
IC 4-35-4-1
Administration, regulation, and enforcement of slot machinewagering at racetracks
Sec. 1. (a) The commission shall regulate and administergambling games conducted by a licensee under this article.
(b) The commission has the following powers and duties for thepurpose of administering, regulating, and enforcing the system ofgambling games at racetracks authorized under this article:
(1) All powers and duties specified in this article.
(2) All powers necessary and proper to fully and effectivelyexecute this article.
(3) Jurisdiction and supervision over the following:
(A) All gambling game operations in Indiana.
(B) All persons at racetracks where gambling games areconducted.
(4) The power to investigate and reinvestigate applicants andlicensees and determine the eligibility of applicants for licenses.
(5) The power to take appropriate administrative enforcementor disciplinary action against a licensee.
(6) The power to investigate alleged violations of this article.
(7) The power to conduct hearings.
(8) The power to issue subpoenas for the attendance ofwitnesses and subpoenas duces tecum for the production ofbooks, records, and other relevant documents.
(9) The power to administer oaths and affirmations to thewitnesses.
(10) The power to prescribe forms to be used by licensees.
(11) The power to revoke, suspend, or renew licenses issuedunder this article.
(12) The power to hire employees to gather information,conduct investigations, and carry out other tasks under thisarticle. The employees hired by the commission under thisarticle may be the same as the commission's employees hiredunder IC 4-32.2 or IC 4-33.
(13) The power to take any reasonable or appropriate action toenforce this article.
(c) The commission may by resolution assign to the executivedirector any duty imposed upon the commission by this article.
(d) The executive director shall perform the duties assigned to theexecutive director by the commission. The executive director mayexercise any power conferred upon the commission by this articlethat is consistent with the duties assigned to the executive directorunder subsection (c).
As added by P.L.233-2007, SEC.21.
IC 4-35-4-2
Rules; violations; fees and penalties; voluntary exclusion program Sec. 2. (a) The commission shall do the following:
(1) Adopt rules under IC 4-22-2 that the commission determinesare necessary to protect or enhance the following:
(A) The credibility and integrity of gambling gamesauthorized under this article.
(B) The regulatory process provided in this article.
(2) Conduct all hearings concerning civil violations of thisarticle.
(3) Provide for the establishment and collection of license feesimposed under this article, and deposit the license fees in thestate general fund.
(4) Levy and collect penalties for noncriminal violations of thisarticle and deposit the penalties in the state general fund.
(5) Approve the design, appearance, aesthetics, andconstruction of slot machine facilities authorized under thisarticle.
(6) Adopt emergency rules under IC 4-22-2-37.1 if thecommission determines that:
(A) the need for a rule is so immediate and substantial thatrulemaking procedures under IC 4-22-2-13 throughIC 4-22-2-36 are inadequate to address the need; and
(B) an emergency rule is likely to address the need.
(7) Adopt rules to establish and implement a voluntaryexclusion program that meets the requirements of subsection(c).
(8) Establish the requirements for a power of attorney submittedunder IC 4-35-5-9.
(b) The commission shall begin rulemaking procedures underIC 4-22-2-13 through IC 4-22-2-36 to adopt an emergency ruleadopted under subsection (a)(6) not later than thirty (30) days afterthe adoption of the emergency rule under subsection (a)(6).
(c) Rules adopted under subsection (a)(7) must provide thefollowing:
(1) Except as provided by rule of the commission, a person whoparticipates in the voluntary exclusion program agrees to refrainfrom entering a facility at which gambling games are conductedor another facility under the jurisdiction of the commission.
(2) That the name of a person participating in the program willbe included on a list of persons excluded from all facilitiesunder the jurisdiction of the commission.
(3) Except as provided by rule of the commission, a person whoparticipates in the voluntary exclusion program may not petitionthe commission for readmittance to a facility under thejurisdiction of the commission.
(4) That the list of patrons entering the voluntary exclusionprogram and the personal information of the participants areconfidential and may only be disseminated by the commissionto the owner or operator of a facility under the jurisdiction ofthe commission for purposes of enforcement and to otherentities, upon request by the participant and agreement by the
commission.
(5) That an owner of a facility under the jurisdiction of thecommission shall make all reasonable attempts as determinedby the commission to cease all direct marketing efforts to aperson participating in the program.
(6) That an owner of a facility under the jurisdiction of thecommission may not cash the check of a person participating inthe program or extend credit to the person in any manner.However, the voluntary exclusion program does not preclude anowner from seeking the payment of a debt accrued by a personbefore entering the program.
As added by P.L.233-2007, SEC.21. Amended by P.L.142-2009,SEC.18.
IC 4-35-4-3
Rules
Sec. 3. The commission shall adopt rules under IC 4-22-2 for thefollowing purposes:
(1) Administering this article.
(2) Establishing the conditions under which gambling games atracetracks may be conducted.
(3) Providing for the prevention of practices detrimental to thepublic interest.
(4) Establishing rules concerning the inspection of gamblinggame facilities at racetracks and the review of the licensesnecessary to conduct gambling games under this article.
(5) Imposing penalties for noncriminal violations of this article.
As added by P.L.233-2007, SEC.21.
IC 4-35-4-4
Gaming agent duties
Sec. 4. The commission shall be present through the commission'sgaming agents during the time gambling games are being conductedat a racetrack to do the following:
(1) Certify the revenue received by a racetrack from gamblinggames.
(2) Receive complaints from the public concerning theoperation of gambling games.
(3) Conduct other investigations into the conduct of thegambling games and the maintenance of the equipment that thecommission considers necessary and proper.
As added by P.L.233-2007, SEC.21.
IC 4-35-4-5
Reimbursement for gaming agent expenses
Sec. 5. The commission shall employ gaming agents to performduties imposed by this article. A licensee shall, under rules adoptedby the commission under IC 4-22-2, reimburse the commission for:
(1) training expenses incurred to train gaming agents;
(2) salaries and other expenses of staff required to support the
gaming agents; and
(3) salaries and other expenses of the gaming agents required tobe present during the time gambling games are being conductedat a racetrack.
As added by P.L.233-2007, SEC.21.
IC 4-35-4-6
Contract with Indiana horse racing commission authorized
Sec. 6. The commission may enter into a contract with the Indianahorse racing commission for the provision of services necessary toadminister this article.
As added by P.L.233-2007, SEC.21.
IC 4-35-4-7
Licensing standards for occupations and slot machines
Sec. 7. (a) The commission shall adopt standards for the licensingof the following:
(1) Persons regulated under this article.
(2) Slot machines used in gambling games.
(b) Where applicable, 68 IAC applies to racetracks conductinggambling games under this article.
As added by P.L.233-2007, SEC.21.
IC 4-35-4-8
Records of licensee
Sec. 8. The commission shall require that the records, includingfinancial statements, of a licensee must be maintained in the mannerprescribed by the commission.
As added by P.L.233-2007, SEC.21.
IC 4-35-4-9
Ejection or exclusion from facilities
Sec. 9. (a) The commission may eject or exclude or authorize theejection or exclusion of a person from a facility at which gamblinggames are conducted if:
(1) the person's name is on the list of persons voluntarilyexcluding themselves from all facilities at which gamblinggames are conducted in a program established under the rulesof the commission;
(2) the person violates this article; or
(3) the commission determines that the person's conduct orreputation is such that the person's presence within a facility atwhich gambling games are conducted may:
(A) call into question the honesty and integrity of thegambling games at racetracks; or
(B) interfere with the orderly conduct of the gambling gamesat racetracks.
(b) A person, other than a person participating in a voluntaryexclusion program, may petition the commission for a hearing on theperson's ejection or exclusion under this section.As added by P.L.233-2007, SEC.21.
IC 4-35-4-10
Violations of article; fraudulent acts
Sec. 10. If a licensee or an employee of a licensee violates thisarticle or engages in a fraudulent act, the commission may do anycombination of the following:
(1) Suspend, revoke, or restrict the license of the licensee.
(2) Require the removal of a licensee or an employee of alicensee.
(3) Impose a civil penalty of not more than the greater of:
(A) ten thousand dollars ($10,000); or
(B) an amount equal to the licensee's daily gross receipts forthe day of the violation;
against a licensee for each violation of this article.
(4) Impose a civil penalty of not more than twenty-fivethousand dollars ($25,000) against a person who has beenissued a supplier's license for each violation of this article.
As added by P.L.233-2007, SEC.21.
IC 4-35-4-11
Investigative procedures; complaints
Sec. 11. (a) The commission shall review and make adetermination on a complaint by a licensee concerning aninvestigative procedure that the licensee alleges is unnecessarilydisruptive of gambling games at racetracks.
(b) A licensee filing a complaint under this section must prove allof the following by clear and convincing evidence:
(1) The investigative procedure had no reasonable lawenforcement purpose.
(2) The investigative procedure was so disruptive as tounreasonably inhibit gambling games at racetracks.
(c) For purposes of this section, the need to inspect andinvestigate a licensee shall be presumed at all times.
As added by P.L.233-2007, SEC.21.
IC 4-35-4-12
Display of toll free telephone number
Sec. 12. (a) The commission shall require a licensee toconspicuously display the number of the toll free telephone linedescribed in IC 4-33-12-6 in the following locations:
(1) On each admission ticket to a facility at which gamblinggames are conducted, if tickets are issued.
(2) On a poster or placard that is on display in a public area ofeach facility at which gambling games at racetracks areconducted.
(b) The commission may adopt rules under IC 4-22-2 necessaryto carry out this section.
As added by P.L.233-2007, SEC.21.
IC 4-35-4-13
Prohibition of fee for proposed transfer of ownership
Sec. 13. The commission may not do the following:
(1) Impose, charge, or collect by rule a fee that is not authorizedby this article on any party to a proposed transfer of anownership interest in a license issued under IC 4-35-5.
(2) Make the commission's approval of a proposed transfer ofan ownership interest in a license issued under IC 4-35-5contingent upon the payment of any amount that is notauthorized by this article.
As added by P.L.182-2009(ss), SEC.61.
IC 4-35-4-13.2
Model power of attorney
Sec. 13.2. The executive director shall establish a model power ofattorney setting forth the terms and conditions under which a trusteemay conduct gambling games at a racetrack under IC 4-35-12. Theexecutive director may provide a copy of the model power ofattorney to any interested party.
As added by P.L.142-2009, SEC.19.
IC 4-35-4-14
Appointment of temporary trustee
Sec. 14. (a) The commission may appoint a temporary trustee fora particular slot machine facility at a racetrack if the commissionmakes the following findings:
(1) That circumstances requiring a trustee to assume control ofthe slot machine facility are likely to occur.
(2) That the commission has not approved a power of attorneyidentifying any other person to serve as the trustee for the slotmachine facility.
(3) That there is not enough time to consider and approve apower of attorney with respect to the slot machine facilitybefore the circumstances found likely to occur undersubdivision (1) will occur.
(b) A person appointed under this section must be qualified toperform any duty described in this section or IC 4-35-12.
(c) A trustee appointed by the commission under this section shallserve until any of the following occur:
(1) The commission adopts a resolution under IC 4-35-12-3authorizing a trustee appointed in an approved power ofattorney submitted by the permit holder to conduct gamblinggames under IC 4-35-12.
(2) The commission revokes the trustee's authority to conductgambling games as provided by IC 4-35-12-12.
(3) A new permit holder assumes control of the racetrack, slotmachine facility, and related properties.
(d) A trustee appointed by the commission under this section shallexercise the trustee's powers in accordance with:
(1) the model power of attorney established by the executive
director under section 13.2 of this chapter; and
(2) IC 4-35-12.
As added by P.L.142-2009, SEC.20.
IC 4-35-4-15
Civil penalties for violations concerning a power of attorney
Sec. 15. The commission may impose a civil penalty upon aperson who:
(1) fails to submit a power of attorney before the deadlinespecified in IC 4-35-5-9;
(2) fails to take any corrective action required by thecommission with respect to a power of attorney submitted underIC 4-35-5-9; or
(3) violates any provision of this article concerning thesubmission of a power of attorney identifying the person whowould serve as a trustee under the power of attorney.
As added by P.L.142-2009, SEC.21.
IC 4-35-4-16
Withholding delinquent child support from winnings; fee; notice;priority of order over other claims
Sec. 16. (a) The bureau shall provide information to a permitholder or trustee concerning persons who are delinquent in childsupport.
(b) If a permit holder or trustee is required to file Form W-2G ora substantially equivalent form with the United States InternalRevenue Service for a person who is delinquent in child support,before payment of cash winnings from gambling games, the permitholder or trustee:
(1) may deduct and retain an administrative fee in the amountof the lesser of:
(A) three percent (3%) of the amount of delinquent childsupport withheld under subdivision (2)(A); or
(B) one hundred dollars ($100); and
(2) shall:
(A) withhold the amount of delinquent child support owedfrom the cash winnings;
(B) transmit to the bureau:
(i) the amount withheld for delinquent child support; and
(ii) identifying information, including the full name,address, and Social Security number of the obligor and thechild support case identifier, the date and amount of thepayment, and the name and location of the permit holderor trustee; and
(C) issue the obligor a receipt in a form prescribed by thebureau with the total amount withheld for delinquent childsupport and the administrative fee.
(c) The bureau shall notify the obligor at the address provided bythe permit holder or trustee that the bureau intends to offset theobligor's delinquent child support with the cash winnings. (d) The bureau shall hold the amount withheld from cashwinnings of the obligor for ten (10) business days before applyingthe amount as payment to the obligor's delinquent child support.
(e) The delinquent child support required to be withheld underthis section and an administrative fee described under subsection(b)(1) have priority over any secured or unsecured claim on cashwinnings except claims for federal or state taxes that are required tobe withheld under federal or state law.
As added by P.L.80-2010, SEC.6.