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 agent
contract with a person to operate one (1) riverboat on behalf of the
commission in a historic hotel district. The commission shall issue
a 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 an
interest in an owner's license issued under this article, may file an
application with the commission to serve as an operating agent under
this chapter. An applicant must pay a nonrefundable application fee
to the commission in an amount to be determined by the commission.
(b) An applicant must submit the following on forms provided by
the commission:
(1) If the applicant is an individual, two (2) sets of the
individual's fingerprints.
(2) If the applicant is not an individual, two (2) sets of
fingerprints for each officer and director of the applicant.
(c) This subsection applies to an applicant who applies after May
12, 2009, to serve as an operating agent under this chapter. An
applicant shall submit for the approval of the commission a written
power of attorney identifying the person who, if approved by the
commission, would serve as the applicant's trustee to operate the
riverboat. The power of attorney submitted 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 proposed
trustee;
(3) conform with the requirements established by the
commission under IC 4-33-4-3(a)(10); and
(4) be submitted on the date that the applicant pays the
application fee described in subsection (a).
(d) The commission shall review the applications filed under this
chapter and shall inform each applicant of the commission's decision.
(e) The costs of investigating an applicant to serve as an operating
agent under this chapter shall be paid from the application fee paid
by the applicant.
(f) An applicant to serve as an operating agent under this chapter
must 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 the
applicant. 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 agent
contract 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 an
application 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 employee
of a person described in subdivision (1) or (2);
(5) the person employs an individual who is described in
subdivision (1), (2), or (3); or
(6) a license issued to the person to own or operate gambling
facilities 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 agent
contract to an applicant, the commission shall consider the following:
(1) The character, reputation, experience, and financial integrity
of 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 or
by a person that directly or indirectly controls the
applicant.
(2) The facilities or proposed facilities for the conduct of
riverboat gambling in a historic hotel district. The applicant
must submit to the commission a proposed design of the
riverboat.
(3) The highest prospective total revenue to be collected by the
state from the conduct of riverboat gambling.
(4) The good faith affirmative action plan of each applicant to
recruit, train, and upgrade minorities in all employment
classifications.
(5) The financial ability of the applicant to purchase and
maintain adequate liability and casualty insurance.
(6) Whether the applicant has adequate capitalization to operate
a riverboat for the duration of the contract.
(7) The extent to which the applicant provides assurances that
the 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 other
standards 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 agent
applicant, the commission may enter into an operating agent contract
with the person. The operating agent contract must comply with this
article and include the following terms and conditions:
(1) The operating agent must pay a nonrefundable initial fee of
one million dollars ($1,000,000) to the commission. The fee
must be deposited by the commission into the West Baden
Springs historic hotel preservation and maintenance fund
established by IC 36-7-11.5-11(b).
(2) The operating agent must post a bond as required in section
6 of this chapter.
(3) The operating agent must implement flexible scheduling.
(4) The operating agent must locate the riverboat in a historic
hotel district at a location approved by the commission.
(5) The operating agent must comply with any requirements
concerning the exterior design of the riverboat that are approved
by the commission.
(6) Notwithstanding any law limiting the maximum length of
contracts:
(A) the initial term of the contract may not exceed twenty
(20) years; and
(B) any renewal or extension period permitted under the
contract may not exceed twenty (20) years.
(7) The operating agent must collect and remit all taxes under
IC 4-33-12 and IC 4-33-13.
(8) The operating agent must comply with the restrictions on the
transferability of the operating agent contract under section 12
of 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 the
commission at least sixty (60) days before the commencement of
regular 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 institution
of Indiana acceptable to the commission.
(c) If a bond is furnished in cash or negotiable securities, the
principal shall be placed without restriction at the disposal of the
commission, 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 will
adequately reflect the amount that a local community will
expend for infrastructure and other facilities associated with a
riverboat operation; and
(3) must be payable to the commission as obligee for use in
payment of the riverboat's financial obligations to the local
community, the state, and other aggrieved parties, as determined
by the rules of the commission.
Any bond proceeds remaining after the payments shall be deposited
in the West Baden Springs historic hotel preservation and
maintenance fund established by IC 36-7-11.5-11.
(e) If after a hearing (after at least five (5) days written notice) the
commission determines that the amount of an operating agent's bond
is insufficient, the operating agent shall, upon written demand of the
commission, file a new bond.
(f) The commission may require an operating agent to file a new
bond with a satisfactory surety in the same form and amount if:
(1) liability on the old bond is discharged or reduced by
judgment rendered, payment made, or otherwise; or
(2) in the opinion of the commission any surety on the old bond
becomes unsatisfactory.
(g) If a new bond obtained under subsection (e) or (f) is
unsatisfactory, the commission shall cancel the operating agent's
contract. If the new bond is satisfactorily furnished, the commission
shall release in writing the surety on the old bond from any liability
accruing after the effective date of the new bond.
(h) A bond is released on the condition that the operating agent
remains at the site of the riverboat operating within the historic hotel
district:
(1) for five (5) years; or
(2) until the date the commission enters into a contract with
another operating agent to operate from the site for which the
bond was posted;
whichever occurs first.
(i) An operating agent who does not meet the requirements of
subsection (h) forfeits a bond filed under this section. The proceeds
of a bond that is in default under this subsection are paid to the
commission and used in the same manner as specified in subsection
(d).
(j) The total liability of the surety on a bond is limited to the
amount specified in the bond, and the continuous nature of the bond
may not be construed as allowing the liability of the surety under a
bond to accumulate for each successive approval period during
which the bond is in force.
(k) A bond filed under this section is released sixty (60) days
after:
(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 complete
investigation at least once every three (3) years to ensure that the
operating agent remains in compliance with this article.
(b) Notwithstanding subsection (a), the commission may
investigate an operating agent at any time the commission determines
it is necessary to ensure that the operating agent remains in
compliance with this article.
(c) An operating agent shall bear the cost of an investigation or a
reinvestigation 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 the
operating agent to operate one (1) riverboat on behalf of the
commission. 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 and
may 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 annual
report listing the operating agent's inventories of gambling
equipment, 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 from
operating 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 is
established with respect to the operating agent.
(b) The commission shall adopt rules governing the procedure an
operating agent or other person must follow to take an action under
subsection (a). The rules must specify that a person who obtains an
ownership interest in an operating agent contract must meet the
criteria of this article and any rules adopted by the commission. An
operating agent may transfer an interest in an operating agent
contract only in accordance with this article and rules adopted by the
commission.
(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 not
include any terms under which the operating agent is required to pay
any amount to the state or the gaming commission other than the fees
and 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 a
licensed 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 contract
under this article is not exempt from property taxes imposed under
IC 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 on
July 1, 2009, shall submit for the approval of the commission a
written power of attorney identifying the person who, if approved by
the commission, would serve as the operating agent's trustee to
operate the riverboat. The power of attorney submitted 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 proposed
trustee;
(3) conform with the requirements established by the
commission 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 contract
unless the commission:
(1) receives a proposed power of attorney from the operating
agent;
(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 its
approval of any changes to a power of attorney approved by the
commission. As added by P.L.142-2009, SEC.11.
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 agent
contract with a person to operate one (1) riverboat on behalf of the
commission in a historic hotel district. The commission shall issue
a 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 an
interest in an owner's license issued under this article, may file an
application with the commission to serve as an operating agent under
this chapter. An applicant must pay a nonrefundable application fee
to the commission in an amount to be determined by the commission.
(b) An applicant must submit the following on forms provided by
the commission:
(1) If the applicant is an individual, two (2) sets of the
individual's fingerprints.
(2) If the applicant is not an individual, two (2) sets of
fingerprints for each officer and director of the applicant.
(c) This subsection applies to an applicant who applies after May
12, 2009, to serve as an operating agent under this chapter. An
applicant shall submit for the approval of the commission a written
power of attorney identifying the person who, if approved by the
commission, would serve as the applicant's trustee to operate the
riverboat. The power of attorney submitted 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 proposed
trustee;
(3) conform with the requirements established by the
commission under IC 4-33-4-3(a)(10); and
(4) be submitted on the date that the applicant pays the
application fee described in subsection (a).
(d) The commission shall review the applications filed under this
chapter and shall inform each applicant of the commission's decision.
(e) The costs of investigating an applicant to serve as an operating
agent under this chapter shall be paid from the application fee paid
by the applicant.
(f) An applicant to serve as an operating agent under this chapter
must 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 the
applicant. 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 agent
contract 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 an
application 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 employee
of a person described in subdivision (1) or (2);
(5) the person employs an individual who is described in
subdivision (1), (2), or (3); or
(6) a license issued to the person to own or operate gambling
facilities 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 agent
contract to an applicant, the commission shall consider the following:
(1) The character, reputation, experience, and financial integrity
of 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 or
by a person that directly or indirectly controls the
applicant.
(2) The facilities or proposed facilities for the conduct of
riverboat gambling in a historic hotel district. The applicant
must submit to the commission a proposed design of the
riverboat.
(3) The highest prospective total revenue to be collected by the
state from the conduct of riverboat gambling.
(4) The good faith affirmative action plan of each applicant to
recruit, train, and upgrade minorities in all employment
classifications.
(5) The financial ability of the applicant to purchase and
maintain adequate liability and casualty insurance.
(6) Whether the applicant has adequate capitalization to operate
a riverboat for the duration of the contract.
(7) The extent to which the applicant provides assurances that
the 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 other
standards 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 agent
applicant, the commission may enter into an operating agent contract
with the person. The operating agent contract must comply with this
article and include the following terms and conditions:
(1) The operating agent must pay a nonrefundable initial fee of
one million dollars ($1,000,000) to the commission. The fee
must be deposited by the commission into the West Baden
Springs historic hotel preservation and maintenance fund
established by IC 36-7-11.5-11(b).
(2) The operating agent must post a bond as required in section
6 of this chapter.
(3) The operating agent must implement flexible scheduling.
(4) The operating agent must locate the riverboat in a historic
hotel district at a location approved by the commission.
(5) The operating agent must comply with any requirements
concerning the exterior design of the riverboat that are approved
by the commission.
(6) Notwithstanding any law limiting the maximum length of
contracts:
(A) the initial term of the contract may not exceed twenty
(20) years; and
(B) any renewal or extension period permitted under the
contract may not exceed twenty (20) years.
(7) The operating agent must collect and remit all taxes under
IC 4-33-12 and IC 4-33-13.
(8) The operating agent must comply with the restrictions on the
transferability of the operating agent contract under section 12
of 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 the
commission at least sixty (60) days before the commencement of
regular 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 institution
of Indiana acceptable to the commission.
(c) If a bond is furnished in cash or negotiable securities, the
principal shall be placed without restriction at the disposal of the
commission, 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 will
adequately reflect the amount that a local community will
expend for infrastructure and other facilities associated with a
riverboat operation; and
(3) must be payable to the commission as obligee for use in
payment of the riverboat's financial obligations to the local
community, the state, and other aggrieved parties, as determined
by the rules of the commission.
Any bond proceeds remaining after the payments shall be deposited
in the West Baden Springs historic hotel preservation and
maintenance fund established by IC 36-7-11.5-11.
(e) If after a hearing (after at least five (5) days written notice) the
commission determines that the amount of an operating agent's bond
is insufficient, the operating agent shall, upon written demand of the
commission, file a new bond.
(f) The commission may require an operating agent to file a new
bond with a satisfactory surety in the same form and amount if:
(1) liability on the old bond is discharged or reduced by
judgment rendered, payment made, or otherwise; or
(2) in the opinion of the commission any surety on the old bond
becomes unsatisfactory.
(g) If a new bond obtained under subsection (e) or (f) is
unsatisfactory, the commission shall cancel the operating agent's
contract. If the new bond is satisfactorily furnished, the commission
shall release in writing the surety on the old bond from any liability
accruing after the effective date of the new bond.
(h) A bond is released on the condition that the operating agent
remains at the site of the riverboat operating within the historic hotel
district:
(1) for five (5) years; or
(2) until the date the commission enters into a contract with
another operating agent to operate from the site for which the
bond was posted;
whichever occurs first.
(i) An operating agent who does not meet the requirements of
subsection (h) forfeits a bond filed under this section. The proceeds
of a bond that is in default under this subsection are paid to the
commission and used in the same manner as specified in subsection
(d).
(j) The total liability of the surety on a bond is limited to the
amount specified in the bond, and the continuous nature of the bond
may not be construed as allowing the liability of the surety under a
bond to accumulate for each successive approval period during
which the bond is in force.
(k) A bond filed under this section is released sixty (60) days
after:
(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 complete
investigation at least once every three (3) years to ensure that the
operating agent remains in compliance with this article.
(b) Notwithstanding subsection (a), the commission may
investigate an operating agent at any time the commission determines
it is necessary to ensure that the operating agent remains in
compliance with this article.
(c) An operating agent shall bear the cost of an investigation or a
reinvestigation 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 the
operating agent to operate one (1) riverboat on behalf of the
commission. 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 and
may 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 annual
report listing the operating agent's inventories of gambling
equipment, 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 from
operating 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 is
established with respect to the operating agent.
(b) The commission shall adopt rules governing the procedure an
operating agent or other person must follow to take an action under
subsection (a). The rules must specify that a person who obtains an
ownership interest in an operating agent contract must meet the
criteria of this article and any rules adopted by the commission. An
operating agent may transfer an interest in an operating agent
contract only in accordance with this article and rules adopted by the
commission.
(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 not
include any terms under which the operating agent is required to pay
any amount to the state or the gaming commission other than the fees
and 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 a
licensed 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 contract
under this article is not exempt from property taxes imposed under
IC 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 on
July 1, 2009, shall submit for the approval of the commission a
written power of attorney identifying the person who, if approved by
the commission, would serve as the operating agent's trustee to
operate the riverboat. The power of attorney submitted 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 proposed
trustee;
(3) conform with the requirements established by the
commission 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 contract
unless the commission:
(1) receives a proposed power of attorney from the operating
agent;
(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 its
approval of any changes to a power of attorney approved by the
commission. As added by P.L.142-2009, SEC.11.
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 agent
contract with a person to operate one (1) riverboat on behalf of the
commission in a historic hotel district. The commission shall issue
a 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 an
interest in an owner's license issued under this article, may file an
application with the commission to serve as an operating agent under
this chapter. An applicant must pay a nonrefundable application fee
to the commission in an amount to be determined by the commission.
(b) An applicant must submit the following on forms provided by
the commission:
(1) If the applicant is an individual, two (2) sets of the
individual's fingerprints.
(2) If the applicant is not an individual, two (2) sets of
fingerprints for each officer and director of the applicant.
(c) This subsection applies to an applicant who applies after May
12, 2009, to serve as an operating agent under this chapter. An
applicant shall submit for the approval of the commission a written
power of attorney identifying the person who, if approved by the
commission, would serve as the applicant's trustee to operate the
riverboat. The power of attorney submitted 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 proposed
trustee;
(3) conform with the requirements established by the
commission under IC 4-33-4-3(a)(10); and
(4) be submitted on the date that the applicant pays the
application fee described in subsection (a).
(d) The commission shall review the applications filed under this
chapter and shall inform each applicant of the commission's decision.
(e) The costs of investigating an applicant to serve as an operating
agent under this chapter shall be paid from the application fee paid
by the applicant.
(f) An applicant to serve as an operating agent under this chapter
must 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 the
applicant. 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 agent
contract 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 an
application 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 employee
of a person described in subdivision (1) or (2);
(5) the person employs an individual who is described in
subdivision (1), (2), or (3); or
(6) a license issued to the person to own or operate gambling
facilities 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 agent
contract to an applicant, the commission shall consider the following:
(1) The character, reputation, experience, and financial integrity
of 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 or
by a person that directly or indirectly controls the
applicant.
(2) The facilities or proposed facilities for the conduct of
riverboat gambling in a historic hotel district. The applicant
must submit to the commission a proposed design of the
riverboat.
(3) The highest prospective total revenue to be collected by the
state from the conduct of riverboat gambling.
(4) The good faith affirmative action plan of each applicant to
recruit, train, and upgrade minorities in all employment
classifications.
(5) The financial ability of the applicant to purchase and
maintain adequate liability and casualty insurance.
(6) Whether the applicant has adequate capitalization to operate
a riverboat for the duration of the contract.
(7) The extent to which the applicant provides assurances that
the 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 other
standards 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 agent
applicant, the commission may enter into an operating agent contract
with the person. The operating agent contract must comply with this
article and include the following terms and conditions:
(1) The operating agent must pay a nonrefundable initial fee of
one million dollars ($1,000,000) to the commission. The fee
must be deposited by the commission into the West Baden
Springs historic hotel preservation and maintenance fund
established by IC 36-7-11.5-11(b).
(2) The operating agent must post a bond as required in section
6 of this chapter.
(3) The operating agent must implement flexible scheduling.
(4) The operating agent must locate the riverboat in a historic
hotel district at a location approved by the commission.
(5) The operating agent must comply with any requirements
concerning the exterior design of the riverboat that are approved
by the commission.
(6) Notwithstanding any law limiting the maximum length of
contracts:
(A) the initial term of the contract may not exceed twenty
(20) years; and
(B) any renewal or extension period permitted under the
contract may not exceed twenty (20) years.
(7) The operating agent must collect and remit all taxes under
IC 4-33-12 and IC 4-33-13.
(8) The operating agent must comply with the restrictions on the
transferability of the operating agent contract under section 12
of 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 the
commission at least sixty (60) days before the commencement of
regular 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 institution
of Indiana acceptable to the commission.
(c) If a bond is furnished in cash or negotiable securities, the
principal shall be placed without restriction at the disposal of the
commission, 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 will
adequately reflect the amount that a local community will
expend for infrastructure and other facilities associated with a
riverboat operation; and
(3) must be payable to the commission as obligee for use in
payment of the riverboat's financial obligations to the local
community, the state, and other aggrieved parties, as determined
by the rules of the commission.
Any bond proceeds remaining after the payments shall be deposited
in the West Baden Springs historic hotel preservation and
maintenance fund established by IC 36-7-11.5-11.
(e) If after a hearing (after at least five (5) days written notice) the
commission determines that the amount of an operating agent's bond
is insufficient, the operating agent shall, upon written demand of the
commission, file a new bond.
(f) The commission may require an operating agent to file a new
bond with a satisfactory surety in the same form and amount if:
(1) liability on the old bond is discharged or reduced by
judgment rendered, payment made, or otherwise; or
(2) in the opinion of the commission any surety on the old bond
becomes unsatisfactory.
(g) If a new bond obtained under subsection (e) or (f) is
unsatisfactory, the commission shall cancel the operating agent's
contract. If the new bond is satisfactorily furnished, the commission
shall release in writing the surety on the old bond from any liability
accruing after the effective date of the new bond.
(h) A bond is released on the condition that the operating agent
remains at the site of the riverboat operating within the historic hotel
district:
(1) for five (5) years; or
(2) until the date the commission enters into a contract with
another operating agent to operate from the site for which the
bond was posted;
whichever occurs first.
(i) An operating agent who does not meet the requirements of
subsection (h) forfeits a bond filed under this section. The proceeds
of a bond that is in default under this subsection are paid to the
commission and used in the same manner as specified in subsection
(d).
(j) The total liability of the surety on a bond is limited to the
amount specified in the bond, and the continuous nature of the bond
may not be construed as allowing the liability of the surety under a
bond to accumulate for each successive approval period during
which the bond is in force.
(k) A bond filed under this section is released sixty (60) days
after:
(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 complete
investigation at least once every three (3) years to ensure that the
operating agent remains in compliance with this article.
(b) Notwithstanding subsection (a), the commission may
investigate an operating agent at any time the commission determines
it is necessary to ensure that the operating agent remains in
compliance with this article.
(c) An operating agent shall bear the cost of an investigation or a
reinvestigation 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 the
operating agent to operate one (1) riverboat on behalf of the
commission. 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 and
may 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 annual
report listing the operating agent's inventories of gambling
equipment, 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 from
operating 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 is
established with respect to the operating agent.
(b) The commission shall adopt rules governing the procedure an
operating agent or other person must follow to take an action under
subsection (a). The rules must specify that a person who obtains an
ownership interest in an operating agent contract must meet the
criteria of this article and any rules adopted by the commission. An
operating agent may transfer an interest in an operating agent
contract only in accordance with this article and rules adopted by the
commission.
(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 not
include any terms under which the operating agent is required to pay
any amount to the state or the gaming commission other than the fees
and 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 a
licensed 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 contract
under this article is not exempt from property taxes imposed under
IC 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 on
July 1, 2009, shall submit for the approval of the commission a
written power of attorney identifying the person who, if approved by
the commission, would serve as the operating agent's trustee to
operate the riverboat. The power of attorney submitted 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 proposed
trustee;
(3) conform with the requirements established by the
commission 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 contract
unless the commission:
(1) receives a proposed power of attorney from the operating
agent;
(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 its
approval of any changes to a power of attorney approved by the
commission. As added by P.L.142-2009, SEC.11.
