Current through Register Vol. 48, No. 38, September 20, 2024
a) In
General. No
person shall sell, lease, lend, distribute
or otherwise provide to any organization licensed to conduct charitable games
events in Illinois any charitable games equipment, without having
first obtained a supplier's
license to do so
from the Department except as provided in subsection (h) (Section 6 of
the Act).
1)
No licensed supplier
under the Act shall lease, lend, or distribute charitable gaming equipment,
supplies, or other devices to persons not otherwise licensed to conduct
charitable games under the Act (Section 6 of the Act). To ensure that
the organization to whom equipment is sold, leased, lent or distributed is
licensed for charitable gaming, the supplier shall obtain from the organization
and retain among his or her books and records a copy of the organization's
license showing the license number, expiration date and event date for which
the equipment was sold, leased, lent or distributed.
A)
All charitable games equipment
shall be kept segregated and separate from any other products, materials or
equipment that the supplier might own, sell or lease (Section 6 of the
Act), and the supplier shall inform the Department of the exact location of the
storage of all charitable games equipment in the supplier's
possession.
B) No supplier shall
sell, lease or distribute to any licensed organization any item of charitable
games equipment not included on the list (or any amendments to the list)
described in subsection (b)(1), nor shall any supplier sell, lease or
distribute to any charitable games licensed organization any item of charitable
games equipment at a price other than the price on file with the Department.
Changes in price must be reported to the Department 30 days prior to the
change.
C) Suppliers may deliver
equipment to a licensed organization up to one day before the date of the
scheduled event, if the contract with the licensed organization specifies an
early delivery date. Delivery is authorized only when the supplier delivers the
equipment to a secured location (e.g., a location where access is restricted to
the licensed organization with whom the supplier has contracted).
2) A licensed organization may
purchase charitable games equipment only from a person that possesses a valid
supplier's license issued by the Department.
3) A supplier's license shall not be issued
to an ineligible organization.
4)
Unless extended as provided in this Section, an annual supplier's license shall
be valid only for the one-year period beginning with the effective date stated
on the license, and a triennial supplier's license shall be valid only for the
three-year period beginning with the effective date stated on the license.
However, as provided in Section
435.200,
the Department may suspend or revoke a supplier's license prior to the
expiration of the one or three year period.
5) The Department may extend a supplier's
license beyond the period for which the license is otherwise effective (but not
to exceed one year), provided that an application for a license with respect to
the period covered by the extension has first been submitted to the Department
in accordance with subsection (b).
b) Applications. Application for a supplier's
license must be made on the form and in the manner provided by the Department,
and must contain such information or documentation as the Department may
require to show that the applicant is not an ineligible organization.
Applications for an annual license must be accompanied by a nonrefundable
license fee of $500 in the form of a check or money order payable to the
Illinois Department of Revenue. Applications for a triennial license must be
accompanied by a nonrefundable license fee of $1,500 in the form of a check or
money order payable to the Illinois Department of Revenue.
1) Along with the application form, the
applicant must submit a list of all charitable games equipment offered for
sale, lease or distribution to any charitable games licensed organization, and
the sales and/or rental price for all such equipment, including, if applicable,
the price of equipment rented as part of a package deal.
2) Any change in officers or directors, or
partners, members or stockholders owning at least 10% of the shares or
interests of a licensed organization must be reported to the Department within
30 days after the change. If ownership of a licensed organization is changed, a
new application must be submitted to the Department (e.g., a corporate licensed
organization is merged into a different corporation).
c) Within 20 days after the end of any
calendar quarter during which a supplier's license is in effect, the supplier
shall file a return with the Department listing all sales and leases of
charitable games equipment for such quarter, the gross proceeds derived from
each such sale or lease, and the event dates for which equipment was sold,
leased, lent or distributed.
d) The
following general provisions apply to all licensed suppliers:
1)
A supplier shall not alter or
modify any charitable games equipment, or possess any charitable games
equipment so altered or modified, so as to allow the possessor or operator of
the equipment to obtain a greater chance of winning a game other than as under
normal rules of play of such games (Section 6 of the Act). Any
charitable games equipment so altered or modified shall be confiscated by the
Department.
2)
A supplier
shall permit Department employees to enter the supplier's premises to inspect
and test all charitable games equipment (Section 6 of the
Act).
3)
A supplier shall
not receive a percentage of the proceeds or admission fees from any charitable
games event (Section 6 of the Act).
4) No employee, owner, partner, officer or
agent of a supplier may recruit or provide volunteers for a licensed
organization.
5)
No
employee, owner, partner, officer, or agent of a supplier may participate in
the management or operation of any charitable games event even if the employee,
owner or officer , is also a member, volunteer, or employee of the charitable
games licensee (Section 6 of the Act). The supplier may provide
training classes and consulting service prior to the events, and it may have
one representative present at the event to ensure its equipment is not
damaged.
6)
A supplier
shall not have any interest, direct or indirect, in the business of any person,
firm, or corporation licensed under the Act to provide premises for the conduct
of charitable games (Section 6 of the Act).
7)
A supplier may not promote or
solicit a charitable games event on behalf of a charitable games licensee or
qualified organization (Section 6 of the Act). For instance, suppliers
may not maintain or operate hotlines, websites or newsletters that advertise
game dates or locations, nor may they recruit qualified organizations to host
events.
8) No corporation, firm,
agency or partnership, in which an owner, officer, partner, agent or employee
of a supplier holds any interest, direct or indirect, shall promote, advertise,
announce or solicit charitable games events on behalf of a charitable games
licensed organization or qualified organization.
e)
A supplier shall permanently affix
his name to all charitable games equipment, supplies and pull tabs he
or she sells, leases or rents (Section 6 of the Act). The name
shall be plainly visible to the public while any item of charitable games
equipment is being used for the purpose for which it was intended at a
charitable games event. The supplier's name shall be affixed to any box or
other package containing unopened pull tab or break open tickets, and to any
promotional cards, or "flares".
f)
Suppliers may not enter into agreements not to compete in certain geographic
areas with other suppliers.
g)
A supplier shall keep books and records for the furnishing of
charitable games equipment separate and distinct from any other business the
supplier might operate (Section 6 of the Act). A supplier shall
maintain all such books and records, including the documentation required by
this Section, for a period of at least three years and must allow inspection of
the books and records by agents or employees of the Department during
reasonable business hours.
h)
Organizations licensed to conduct charitable games may own their own
equipment. Such organizations must apply to the Department for an ownership
permit. Any such application must be accompanied by a one-time, nonrefundable
fee of $50. Such organizations shall file an annual report listing their
inventory of charitable games equipment. Such organizations may lend such
equipment without compensation to other licensed organizations without applying
for a supplier's license. (Section 6 of the Act) The one-time,
nonrefundable fee of $50 shall be in the form of a check or money order payable
to the Department.
