IC 4-35-5-1 Maximum number of licenses
Sec. 1. The commission may issue a license to a permit holder to
conduct gambling games under this article at the permit holder's
racetrack. The number of licenses issued under this chapter may not
exceed two (2). As added by P.L.233-2007, SEC.21.
IC 4-35-5-2 Background investigation; approval of proposed slot machine
facilities
Sec. 2. (a) Before issuing a license to a person under this chapter,
the commission shall subject the person to a background
investigation similar to a background investigation required for an
applicant for a riverboat owner's license under IC 4-33-6.
(b) Before the commission may issue a license to a person under
this chapter, the person must submit to the commission for the
commission's approval the physical layout of the person's proposed
slot machines and the facilities that will contain the proposed slot
machines. The facilities that will contain the slot machines must be
connected to the licensee's racetrack facilities. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.4 Factors considered in granting licenses
Sec. 2.4. In determining whether to grant a license under this
chapter 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
gambling games. The facilities or proposed facilities must
include capital expenditures of at least one hundred million
dollars ($100,000,000).
(3) The prospective total revenue to be collected by the state
from the conduct of gambling games.
(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) If the applicant has adequate capitalization to provide and
maintain facilities for gambling games for the duration of the
license.
(7) The extent to which the applicant exceeds or meets other
standards adopted by the commission. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.5 Restrictions on issuance
Sec. 2.5. The commission may not issue a license under this
chapter to a person 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 for a license 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:
(A) is described in subdivision (1), (2), or (3); and
(B) participates in the management or operation of gambling
games authorized under this article; or
(6) a license issued to the person:
(A) under this article; or
(B) to own or operate gambling facilities in another
jurisdiction;
has been revoked. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.6 Bond
Sec. 2.6. (a) A licensee under this chapter must post a bond with
the commission at least sixty (60) days before the commencement of
gambling games at the licensee's racetrack.
(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 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 licensee.
(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
gambling games at the racetrack; and
(3) must be payable to the commission as obligee for use in
payment of the licensee's financial obligations to the local
community, the state, and other aggrieved parties, as determined
by the rules of the commission.
(e) If after a hearing (after at least five (5) days written notice) the
commission determines that the amount of a licensee's bond is
insufficient, the licensee shall upon written demand of the
commission file a new bond.
(f) The commission may require a licensee 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, by 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 licensee's license. 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) The proceeds of a bond that is in default under this subsection
are paid to the commission for the benefit of the local unit in which
the racetrack is located.
(i) The total and aggregate liability of the surety on a bond is
limited to the amount specified in the bond, and the continuous
nature of the bond may in no event 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.
(j) The commission may adopt rules authorizing the release of a
bond under this section. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.7 Revocation of license
Sec. 2.7. The commission may revoke a license under this chapter
if:
(1) the licensee begins regular gambling game operations more
than twelve (12) months after receiving the commission's
approval of the application for the license; and
(2) the commission determines that the revocation of the license
is in the best interests of Indiana. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.8 License is not a property right
Sec. 2.8. A license to conduct gambling games:
(1) is a revocable privilege granted by the state; and
(2) is not a property right. As added by P.L.233-2007, SEC.21. IC 4-35-5-3 Initial license fee
Sec. 3. (a) A permit holder that is issued a gambling game license
under this article must pay to the commission an initial licensing fee
of two hundred fifty million dollars ($250,000,000) as follows:
(1) One hundred fifty million dollars ($150,000,000) payable
before November 1, 2007.
(2) One hundred million dollars ($100,000,000) payable before
November 1, 2008.
(b) The commission shall deposit any initial licensing fees
collected under this section into the state general fund. As added by P.L.233-2007, SEC.21. Amended by P.L.146-2008,
SEC.19.
IC 4-35-5-4 Expiration of license; renewal
Sec. 4. (a) An initial gambling game license expires five (5) years
after the effective date of the license. Unless the gambling game
license is terminated or revoked, the gambling game license may be
renewed annually thereafter upon:
(1) the payment of an annual renewal fee of one hundred dollars
($100) per slot machine operated by the licensee; and
(2) a determination by the commission that the licensee satisfies
the conditions of this chapter.
Renewal fees paid under this section shall be deposited in the state
general fund.
(b) Except as provided in subsection (c), an initial gaming license
may not be transferred by the initial licensee for at least five (5)
years after the effective date of the license.
(c) A gambling game license may be transferred for any of the
following reasons:
(1) As a result of a bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial licensee or the
substantial owners of the initial licensee.
(2) Because:
(A) the licensee's license has been cancelled, terminated, or
revoked by the commission; or
(B) the commission determines that transferring the license
is in the best interests of Indiana.
(3) Because of the death of a substantial owner of the initial
licensee.
A transfer permitted under this subsection is subject to section 7 of
this chapter. As added by P.L.233-2007, SEC.21. Amended by P.L.146-2008,
SEC.20.
IC 4-35-5-4.5 Horse racing required of licensee
Sec. 4.5. A license issued under this article is null and void if the
licensee fails to:
(1) obtain or maintain a permit issued under IC 4-31-5 to
conduct a pari-mutuel wagering horse racing meeting in
Indiana; or
(2) satisfy the requirements of IC 4-31 concerning the amount
of live horse racing that the licensee must conduct at the
licensee's racetrack. As added by P.L.233-2007, SEC.21.
IC 4-35-5-5 Investigations
Sec. 5. (a) The commission shall conduct a complete investigation
of each licensee every three (3) years to determine whether the
licensee remains in compliance with this article.
(b) Notwithstanding subsection (a), the commission may
investigate a licensee at any time the commission determines it is
necessary to ensure that the licensee remains in compliance with this
article. As added by P.L.233-2007, SEC.21.
IC 4-35-5-6 Costs of investigations
Sec. 6. A permit holder or other person investigated under this
chapter shall bear the cost of the investigation. As added by P.L.233-2007, SEC.21.
IC 4-35-5-7 Transfer of license; commission approval; fees
Sec. 7. (a) A licensee or any other person must apply for and
receive the commission's approval before:
(1) a gambling game license is:
(A) transferred;
(B) sold; or
(C) purchased; or
(2) a voting trust agreement or other similar agreement is
established with respect to the gambling game license.
(b) The commission shall adopt rules governing the procedure a
licensee 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 a gambling game license must meet the criteria
of this article and comply with the rules adopted by the commission.
A licensee may transfer a gambling game license only in accordance
with this article and the rules adopted by the commission.
(c) A person may not:
(1) lease;
(2) hypothecate; or
(3) borrow or loan money against;
a gambling game license.
(d) Except as provided in subsection (e), a transfer fee is imposed
on an initial licensee who sells or otherwise relinquishes a
controlling interest, as determined under the rules of the commission,
in a gambling game license. The amount of the fee is fifty million
dollars ($50,000,000).
(e) The fee imposed by subsection (d) does not apply if:
(1) the gambling game license is transferred as a result of an
event described in section 4(c) of this chapter; or
(2) the controlling interest in the gambling game license is
transferred in a transaction in which no gain or loss is
recognized as a result of the transaction in accordance with
Section 351 of the Internal Revenue Code.
(f) The transfer of a gambling game license by a person other than
the initial licensee to receive the gambling game license is not
subject to a transfer fee. As added by P.L.233-2007, SEC.21.
IC 4-35-5-8 Deposit of fees and recovered investigation costs
Sec. 8. Except as otherwise provided in this chapter, the
commission shall transfer:
(1) fees collected under this chapter; and
(2) all investigation costs recovered under this chapter;
to the treasurer of state for deposit in the state general fund. As added by P.L.233-2007, SEC.21.
IC 4-35-5-9 Submission of proposed power of attorney
Sec. 9. (a) A permit holder or an applicant for a gambling game
license 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 permit holder's or applicant's trustee
to conduct gambling games at a racetrack. 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; and
(3) conform with the requirements established by the
commission under IC 4-35-4-2(a)(8).
(b) The proposed power of attorney required by this section must
be submitted as follows:
(1) Before November 1, 2009, in the case of a permit holder
who holds a gambling game license as of July 1, 2009.
(2) Before the deadline established by the commission, in the
case of a person who applies for a gambling game license after
December 31, 2008.
(c) A permit holder 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.22.
IC 4-35-5-1 Maximum number of licenses
Sec. 1. The commission may issue a license to a permit holder to
conduct gambling games under this article at the permit holder's
racetrack. The number of licenses issued under this chapter may not
exceed two (2). As added by P.L.233-2007, SEC.21.
IC 4-35-5-2 Background investigation; approval of proposed slot machine
facilities
Sec. 2. (a) Before issuing a license to a person under this chapter,
the commission shall subject the person to a background
investigation similar to a background investigation required for an
applicant for a riverboat owner's license under IC 4-33-6.
(b) Before the commission may issue a license to a person under
this chapter, the person must submit to the commission for the
commission's approval the physical layout of the person's proposed
slot machines and the facilities that will contain the proposed slot
machines. The facilities that will contain the slot machines must be
connected to the licensee's racetrack facilities. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.4 Factors considered in granting licenses
Sec. 2.4. In determining whether to grant a license under this
chapter 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
gambling games. The facilities or proposed facilities must
include capital expenditures of at least one hundred million
dollars ($100,000,000).
(3) The prospective total revenue to be collected by the state
from the conduct of gambling games.
(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) If the applicant has adequate capitalization to provide and
maintain facilities for gambling games for the duration of the
license.
(7) The extent to which the applicant exceeds or meets other
standards adopted by the commission. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.5 Restrictions on issuance
Sec. 2.5. The commission may not issue a license under this
chapter to a person 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 for a license 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:
(A) is described in subdivision (1), (2), or (3); and
(B) participates in the management or operation of gambling
games authorized under this article; or
(6) a license issued to the person:
(A) under this article; or
(B) to own or operate gambling facilities in another
jurisdiction;
has been revoked. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.6 Bond
Sec. 2.6. (a) A licensee under this chapter must post a bond with
the commission at least sixty (60) days before the commencement of
gambling games at the licensee's racetrack.
(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 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 licensee.
(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
gambling games at the racetrack; and
(3) must be payable to the commission as obligee for use in
payment of the licensee's financial obligations to the local
community, the state, and other aggrieved parties, as determined
by the rules of the commission.
(e) If after a hearing (after at least five (5) days written notice) the
commission determines that the amount of a licensee's bond is
insufficient, the licensee shall upon written demand of the
commission file a new bond.
(f) The commission may require a licensee 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, by 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 licensee's license. 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) The proceeds of a bond that is in default under this subsection
are paid to the commission for the benefit of the local unit in which
the racetrack is located.
(i) The total and aggregate liability of the surety on a bond is
limited to the amount specified in the bond, and the continuous
nature of the bond may in no event 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.
(j) The commission may adopt rules authorizing the release of a
bond under this section. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.7 Revocation of license
Sec. 2.7. The commission may revoke a license under this chapter
if:
(1) the licensee begins regular gambling game operations more
than twelve (12) months after receiving the commission's
approval of the application for the license; and
(2) the commission determines that the revocation of the license
is in the best interests of Indiana. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.8 License is not a property right
Sec. 2.8. A license to conduct gambling games:
(1) is a revocable privilege granted by the state; and
(2) is not a property right. As added by P.L.233-2007, SEC.21. IC 4-35-5-3 Initial license fee
Sec. 3. (a) A permit holder that is issued a gambling game license
under this article must pay to the commission an initial licensing fee
of two hundred fifty million dollars ($250,000,000) as follows:
(1) One hundred fifty million dollars ($150,000,000) payable
before November 1, 2007.
(2) One hundred million dollars ($100,000,000) payable before
November 1, 2008.
(b) The commission shall deposit any initial licensing fees
collected under this section into the state general fund. As added by P.L.233-2007, SEC.21. Amended by P.L.146-2008,
SEC.19.
IC 4-35-5-4 Expiration of license; renewal
Sec. 4. (a) An initial gambling game license expires five (5) years
after the effective date of the license. Unless the gambling game
license is terminated or revoked, the gambling game license may be
renewed annually thereafter upon:
(1) the payment of an annual renewal fee of one hundred dollars
($100) per slot machine operated by the licensee; and
(2) a determination by the commission that the licensee satisfies
the conditions of this chapter.
Renewal fees paid under this section shall be deposited in the state
general fund.
(b) Except as provided in subsection (c), an initial gaming license
may not be transferred by the initial licensee for at least five (5)
years after the effective date of the license.
(c) A gambling game license may be transferred for any of the
following reasons:
(1) As a result of a bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial licensee or the
substantial owners of the initial licensee.
(2) Because:
(A) the licensee's license has been cancelled, terminated, or
revoked by the commission; or
(B) the commission determines that transferring the license
is in the best interests of Indiana.
(3) Because of the death of a substantial owner of the initial
licensee.
A transfer permitted under this subsection is subject to section 7 of
this chapter. As added by P.L.233-2007, SEC.21. Amended by P.L.146-2008,
SEC.20.
IC 4-35-5-4.5 Horse racing required of licensee
Sec. 4.5. A license issued under this article is null and void if the
licensee fails to:
(1) obtain or maintain a permit issued under IC 4-31-5 to
conduct a pari-mutuel wagering horse racing meeting in
Indiana; or
(2) satisfy the requirements of IC 4-31 concerning the amount
of live horse racing that the licensee must conduct at the
licensee's racetrack. As added by P.L.233-2007, SEC.21.
IC 4-35-5-5 Investigations
Sec. 5. (a) The commission shall conduct a complete investigation
of each licensee every three (3) years to determine whether the
licensee remains in compliance with this article.
(b) Notwithstanding subsection (a), the commission may
investigate a licensee at any time the commission determines it is
necessary to ensure that the licensee remains in compliance with this
article. As added by P.L.233-2007, SEC.21.
IC 4-35-5-6 Costs of investigations
Sec. 6. A permit holder or other person investigated under this
chapter shall bear the cost of the investigation. As added by P.L.233-2007, SEC.21.
IC 4-35-5-7 Transfer of license; commission approval; fees
Sec. 7. (a) A licensee or any other person must apply for and
receive the commission's approval before:
(1) a gambling game license is:
(A) transferred;
(B) sold; or
(C) purchased; or
(2) a voting trust agreement or other similar agreement is
established with respect to the gambling game license.
(b) The commission shall adopt rules governing the procedure a
licensee 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 a gambling game license must meet the criteria
of this article and comply with the rules adopted by the commission.
A licensee may transfer a gambling game license only in accordance
with this article and the rules adopted by the commission.
(c) A person may not:
(1) lease;
(2) hypothecate; or
(3) borrow or loan money against;
a gambling game license.
(d) Except as provided in subsection (e), a transfer fee is imposed
on an initial licensee who sells or otherwise relinquishes a
controlling interest, as determined under the rules of the commission,
in a gambling game license. The amount of the fee is fifty million
dollars ($50,000,000).
(e) The fee imposed by subsection (d) does not apply if:
(1) the gambling game license is transferred as a result of an
event described in section 4(c) of this chapter; or
(2) the controlling interest in the gambling game license is
transferred in a transaction in which no gain or loss is
recognized as a result of the transaction in accordance with
Section 351 of the Internal Revenue Code.
(f) The transfer of a gambling game license by a person other than
the initial licensee to receive the gambling game license is not
subject to a transfer fee. As added by P.L.233-2007, SEC.21.
IC 4-35-5-8 Deposit of fees and recovered investigation costs
Sec. 8. Except as otherwise provided in this chapter, the
commission shall transfer:
(1) fees collected under this chapter; and
(2) all investigation costs recovered under this chapter;
to the treasurer of state for deposit in the state general fund. As added by P.L.233-2007, SEC.21.
IC 4-35-5-9 Submission of proposed power of attorney
Sec. 9. (a) A permit holder or an applicant for a gambling game
license 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 permit holder's or applicant's trustee
to conduct gambling games at a racetrack. 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; and
(3) conform with the requirements established by the
commission under IC 4-35-4-2(a)(8).
(b) The proposed power of attorney required by this section must
be submitted as follows:
(1) Before November 1, 2009, in the case of a permit holder
who holds a gambling game license as of July 1, 2009.
(2) Before the deadline established by the commission, in the
case of a person who applies for a gambling game license after
December 31, 2008.
(c) A permit holder 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.22.
IC 4-35-5-1 Maximum number of licenses
Sec. 1. The commission may issue a license to a permit holder to
conduct gambling games under this article at the permit holder's
racetrack. The number of licenses issued under this chapter may not
exceed two (2). As added by P.L.233-2007, SEC.21.
IC 4-35-5-2 Background investigation; approval of proposed slot machine
facilities
Sec. 2. (a) Before issuing a license to a person under this chapter,
the commission shall subject the person to a background
investigation similar to a background investigation required for an
applicant for a riverboat owner's license under IC 4-33-6.
(b) Before the commission may issue a license to a person under
this chapter, the person must submit to the commission for the
commission's approval the physical layout of the person's proposed
slot machines and the facilities that will contain the proposed slot
machines. The facilities that will contain the slot machines must be
connected to the licensee's racetrack facilities. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.4 Factors considered in granting licenses
Sec. 2.4. In determining whether to grant a license under this
chapter 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
gambling games. The facilities or proposed facilities must
include capital expenditures of at least one hundred million
dollars ($100,000,000).
(3) The prospective total revenue to be collected by the state
from the conduct of gambling games.
(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) If the applicant has adequate capitalization to provide and
maintain facilities for gambling games for the duration of the
license.
(7) The extent to which the applicant exceeds or meets other
standards adopted by the commission. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.5 Restrictions on issuance
Sec. 2.5. The commission may not issue a license under this
chapter to a person 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 for a license 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:
(A) is described in subdivision (1), (2), or (3); and
(B) participates in the management or operation of gambling
games authorized under this article; or
(6) a license issued to the person:
(A) under this article; or
(B) to own or operate gambling facilities in another
jurisdiction;
has been revoked. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.6 Bond
Sec. 2.6. (a) A licensee under this chapter must post a bond with
the commission at least sixty (60) days before the commencement of
gambling games at the licensee's racetrack.
(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 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 licensee.
(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
gambling games at the racetrack; and
(3) must be payable to the commission as obligee for use in
payment of the licensee's financial obligations to the local
community, the state, and other aggrieved parties, as determined
by the rules of the commission.
(e) If after a hearing (after at least five (5) days written notice) the
commission determines that the amount of a licensee's bond is
insufficient, the licensee shall upon written demand of the
commission file a new bond.
(f) The commission may require a licensee 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, by 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 licensee's license. 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) The proceeds of a bond that is in default under this subsection
are paid to the commission for the benefit of the local unit in which
the racetrack is located.
(i) The total and aggregate liability of the surety on a bond is
limited to the amount specified in the bond, and the continuous
nature of the bond may in no event 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.
(j) The commission may adopt rules authorizing the release of a
bond under this section. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.7 Revocation of license
Sec. 2.7. The commission may revoke a license under this chapter
if:
(1) the licensee begins regular gambling game operations more
than twelve (12) months after receiving the commission's
approval of the application for the license; and
(2) the commission determines that the revocation of the license
is in the best interests of Indiana. As added by P.L.233-2007, SEC.21.
IC 4-35-5-2.8 License is not a property right
Sec. 2.8. A license to conduct gambling games:
(1) is a revocable privilege granted by the state; and
(2) is not a property right. As added by P.L.233-2007, SEC.21. IC 4-35-5-3 Initial license fee
Sec. 3. (a) A permit holder that is issued a gambling game license
under this article must pay to the commission an initial licensing fee
of two hundred fifty million dollars ($250,000,000) as follows:
(1) One hundred fifty million dollars ($150,000,000) payable
before November 1, 2007.
(2) One hundred million dollars ($100,000,000) payable before
November 1, 2008.
(b) The commission shall deposit any initial licensing fees
collected under this section into the state general fund. As added by P.L.233-2007, SEC.21. Amended by P.L.146-2008,
SEC.19.
IC 4-35-5-4 Expiration of license; renewal
Sec. 4. (a) An initial gambling game license expires five (5) years
after the effective date of the license. Unless the gambling game
license is terminated or revoked, the gambling game license may be
renewed annually thereafter upon:
(1) the payment of an annual renewal fee of one hundred dollars
($100) per slot machine operated by the licensee; and
(2) a determination by the commission that the licensee satisfies
the conditions of this chapter.
Renewal fees paid under this section shall be deposited in the state
general fund.
(b) Except as provided in subsection (c), an initial gaming license
may not be transferred by the initial licensee for at least five (5)
years after the effective date of the license.
(c) A gambling game license may be transferred for any of the
following reasons:
(1) As a result of a bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial licensee or the
substantial owners of the initial licensee.
(2) Because:
(A) the licensee's license has been cancelled, terminated, or
revoked by the commission; or
(B) the commission determines that transferring the license
is in the best interests of Indiana.
(3) Because of the death of a substantial owner of the initial
licensee.
A transfer permitted under this subsection is subject to section 7 of
this chapter. As added by P.L.233-2007, SEC.21. Amended by P.L.146-2008,
SEC.20.
IC 4-35-5-4.5 Horse racing required of licensee
Sec. 4.5. A license issued under this article is null and void if the
licensee fails to:
(1) obtain or maintain a permit issued under IC 4-31-5 to
conduct a pari-mutuel wagering horse racing meeting in
Indiana; or
(2) satisfy the requirements of IC 4-31 concerning the amount
of live horse racing that the licensee must conduct at the
licensee's racetrack. As added by P.L.233-2007, SEC.21.
IC 4-35-5-5 Investigations
Sec. 5. (a) The commission shall conduct a complete investigation
of each licensee every three (3) years to determine whether the
licensee remains in compliance with this article.
(b) Notwithstanding subsection (a), the commission may
investigate a licensee at any time the commission determines it is
necessary to ensure that the licensee remains in compliance with this
article. As added by P.L.233-2007, SEC.21.
IC 4-35-5-6 Costs of investigations
Sec. 6. A permit holder or other person investigated under this
chapter shall bear the cost of the investigation. As added by P.L.233-2007, SEC.21.
IC 4-35-5-7 Transfer of license; commission approval; fees
Sec. 7. (a) A licensee or any other person must apply for and
receive the commission's approval before:
(1) a gambling game license is:
(A) transferred;
(B) sold; or
(C) purchased; or
(2) a voting trust agreement or other similar agreement is
established with respect to the gambling game license.
(b) The commission shall adopt rules governing the procedure a
licensee 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 a gambling game license must meet the criteria
of this article and comply with the rules adopted by the commission.
A licensee may transfer a gambling game license only in accordance
with this article and the rules adopted by the commission.
(c) A person may not:
(1) lease;
(2) hypothecate; or
(3) borrow or loan money against;
a gambling game license.
(d) Except as provided in subsection (e), a transfer fee is imposed
on an initial licensee who sells or otherwise relinquishes a
controlling interest, as determined under the rules of the commission,
in a gambling game license. The amount of the fee is fifty million
dollars ($50,000,000).
(e) The fee imposed by subsection (d) does not apply if:
(1) the gambling game license is transferred as a result of an
event described in section 4(c) of this chapter; or
(2) the controlling interest in the gambling game license is
transferred in a transaction in which no gain or loss is
recognized as a result of the transaction in accordance with
Section 351 of the Internal Revenue Code.
(f) The transfer of a gambling game license by a person other than
the initial licensee to receive the gambling game license is not
subject to a transfer fee. As added by P.L.233-2007, SEC.21.
IC 4-35-5-8 Deposit of fees and recovered investigation costs
Sec. 8. Except as otherwise provided in this chapter, the
commission shall transfer:
(1) fees collected under this chapter; and
(2) all investigation costs recovered under this chapter;
to the treasurer of state for deposit in the state general fund. As added by P.L.233-2007, SEC.21.
IC 4-35-5-9 Submission of proposed power of attorney
Sec. 9. (a) A permit holder or an applicant for a gambling game
license 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 permit holder's or applicant's trustee
to conduct gambling games at a racetrack. 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; and
(3) conform with the requirements established by the
commission under IC 4-35-4-2(a)(8).
(b) The proposed power of attorney required by this section must
be submitted as follows:
(1) Before November 1, 2009, in the case of a permit holder
who holds a gambling game license as of July 1, 2009.
(2) Before the deadline established by the commission, in the
case of a person who applies for a gambling game license after
December 31, 2008.
(c) A permit holder 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.22.
