Current through Register Vol. 48, No. 38, September 20, 2024
a) Any
person or organization, except a city, village or incorporated town, owning or
leasing premises on which another organization intends to conduct bingo must
have a providers license authorizing that person or organization to furnish the
premises for the conducting of bingo. However, a providers license is not
required for any premises on which organizations intending to conduct bingo
also have their office or headquarters, or on which they regularly further the
purposes for which they were organized.
b) Applications. Application for a providers
license must be made on the form prescribed by the Department, and must be
accompanied by a license fee of $200 in the form of a certified check or money
order payable to the Illinois Department of Revenue. Each providers license is
valid for one year from its date of issuance.
c) Rents. A person or organization holding a
providers license may charge as rent an amount not exceeding the reasonable,
allowable expenses incurred during the license year in providing the premises
for the conducting of bingo. Based on the expenses documented by the licensed
provider, the Department will determine the maximum rent that may be charged
organizations conducting bingo on the provider's premises.
1) Allowable expenses are as follows:
A) The licensed provider's rental or mortgage
payments, including real estate taxes and insurance. If less than the entire
premises is to be used for bingo, the allowable rental or mortgage expense
shall be that percentage of the total rental or mortgage expense equalling the
percentage (in terms of square footage) of the entire premises which is used
for bingo;
B) The cost of
utilities, including payments for gas, electricity, telephone and water. If
less than the entire premises is to be used for bingo, the allowable utilities
expense shall be that percentage of the total utilities expense equalling the
percentage (in terms of square footage) of the entire premises which is used
for bingo;
C) The cost of
equipment, including furniture, used for bingo. The cost of any single item of
equipment for a license year shall be the total cost of the equipment divided
by the number of years the equipment can be expected to be used. If any item of
equipment is not used exclusively for bingo, the allowable expense for the item
shall be that percentage of the expense for the item equalling the percentage
of the time the item is used for bingo;
D) The cost of providing security for the
premises;
E) The cost of salaries
and wages paid to managerial, secretarial, custodial, and maintenance personnel
for services related to the provision of the premises for bingo;
F) The cost of any other items or services
which are necessary to the use of the premises for bingo.
2) The costs of providing security and
transportation for patrons of bingo games are not allowable expenses for the
provider of the premises.
3) In
determining the rent that a licensed provider may charge, the Department will
not consider any expenses which are not documented by the provider.
Documentation of expenses may consist of copies of past bills, leases,
contracts, receipts, employment records, or any other evidence that the
expenses shown on the application have been or will be incurred in the amounts
shown. At any time during the license year a provider may submit additional
documentation showing that expenses have increased, and the Department will
adjust the maximum rent that may be charged accordingly. If expenses decrease,
the provider must notify the Department within 14 days after the decrease
becomes known.
4) The Department
will examine the provider's documented allowable expenses to determine that
they are reasonable. Such expenses shall be presumed to be reasonable unless it
appears, based on information available to the Department and its judgment of
all the facts of each particular case, that the expenses have been or will be
incurred primarily to increase the amount of rent that may be charged to
organizations conducting bingo on the provider's premises.
5) Computation of maximum rent. In
determining the maximum rent that a provider may collect from an organization
conducting bingo on the provider's premises, the total of all reasonable,
documented, allowable expenses for the license year shall be divided by the
number of weeks bingo is to be conducted on the premises during the year to
obtain an amount representing the provider's weekly expenses for providing
premises for bingo. If seven or fewer bingo sessions are conducted on the
premises each week, the maximum rent a provider may collect from each
organization for each session shall be an amount equal to one-seventh of the
provider's weekly expenses. If more than seven bingo sessions are conducted on
the premises each week, the maximum rent a provider may collect from each
organization for each session shall be an amount equal to the provider's weekly
expenses divided by the number of weekly bingo sessions conducted on the
premises. A provider may not charge or collect from a licensed organization,
and a licensed organization may not pay to a provider, any amounts exceeding
the maximum rent authorized by the Department pursuant to this
Section.
6) Nothing in these rules
shall prohibit any licensed organization from making donations or contributions
to a licensed provider, provided that the licensed provider is also licensed to
conduct bingo, or satisfies the eligibility requirements for a regular license
contained in Section
430.110(a)
above, but does not have a regular
license.
7) This Section shall
apply to all new applications for a providers license, and to all renewal
applications for providers licenses which expire after the effective date of
these rules.
d) No
licensed provider may advertise or promote, or participate in any way in the
advertising or promotion of, any bingo session for which it does not hold a
regular or limited license or a special permit.
