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HomeMy WebLinkAboutG30-19 Ordinance No. G30-19 AN ORDINANCE RELATING TO VIDEO GAMING LICENSING WHEREAS,the Illinois Video Gaming Act(230 ILCS 40/1,et seq)was enacted on July 13, 2009, and legalized the use of video gaming terminals in certain liquor license establishments and license truck stop establishments within the state; and WHEREAS,pursuant to Ordinance G17-13,adopted by the City Council on March 13,2013, the City Council of the City of Elgin determined that it was appropriate to allow video gaming within the City of Elgin pursuant to the Illinois Video Gaming Act; and WHEREAS, the City Council of the City of Elgin has determined that it is appropriate to adopt video gaming license requirements for establishments operating any video gaming terminal pursuant to the Illinois Video Gaming Act and for distributors of video gaming terminals; and WHEREAS, the City of Elgin is a home rule unit and as a home rule unit may exercise any power and perform any function pertaining to its government affairs; and WHEREAS, the power to license as provided in this ordinance pertains to the government and affairs of the city and is an appropriate exercise of municipal authority pursuant to the Illinois Video Gaming Act. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That a new Chapter 6.08 of the Elgin Municipal Code, 1976,as amended,be and is hereby created and added to the Elgin Municipal Code entitled "Video Gaming"to read as follows: "CHAPTER 6.08 VIDEO GAMING 6.08.010: DEFINITIONS: Words or phrases as used in this chapter shall be defined as provided in Section 5 of the Illinois Video Gaming Act (230 ILCS 40/5), as amended, except as otherwise provided herein. PERSON: Natural person,joint venture,joint stock company,partnership,association,club. company, corporation, business, limited liability company, trust or organization, or the manager, lessee, agent, servant, officer or employee of any of them. 6.08.020: VIDEO GAMING REGULATIONS ADOPTED: Regulations of the Illinois Video Gaming Act 230 ILCS 40/1 et seq,as amended,and Title 11 of the Illinois Administrative Code,Subtitle D,Video Gaming,Chapter I,Illinois Gaming Board,Art. 1800,Video Gaming(General)(11 Ill Adm Code 1800.110 et seq,as amended) be and are hereby adopted and incorporated by reference herein. Such laws and regulations relating to video gaming, as amended, are referred to in this chapter collectively as video gaming regulations. 6.08.030: LICENSE REQUIRED FOR DISTRIBUTORS OF VIDEO GAMING TERMINALS: A. No distributor or any person shall distribute, sell, lease out, establish or supply any video gaming terminal in the city without first obtaining a distributor's license from the Local Liquor Control Commission of the city pursuant to this chapter. B. Each distributor licensed under this chapter shall maintain a current list of all premises in the city in which the distributor owns, has sold, leased out, supplied or delivered any video gaming terminal. Such list shall be available for inspection by the city clerk or his or her designee, on demand, during normal business hours. C. No distributor or any other person shall own, sell, lease out, supply or deliver any video gaming terminal to any premises within the city unless the owner or lessee of the premises shall also have applied for and obtained a current valid city license for the video gaming terminal. D. Every distributor that is licensed to distribute,sell, lease out,establish or supply any video gaming terminal in the city pursuant to this chapter shall pay a yearly license fee to the city in the amount of$1,500 for each video gaming terminal distributed, sold, leased out, established or supplied in the city. E. Failure or neglect to pay the requisite fees in a timely manner shall be cause for denial of issuance or non-renewal or revocation as the case may be. F. All distributor's licenses shall expire on April 30, next after the date of issue. G. It shall be a prerequisite to any distributor's license from the city that the person distributing video gaming terminals have a valid license from the State of Illinois as a distributor of video gaming terminals. A loss or suspension of any such license by the State of Illinois shall automatically result in the same status for the license issued hereunder, without refund of any license fee. 6.08.040: LICENSE REQUIRED FOR ESTABLISHMENTS WITH VIDEO GAMING TERMINALS: A. No establishment or any person shall keep or display for operating or patronage by the public within the city any video gaming terminal without having first obtained a license therefor from the Local Liquor Control Commission of the city pursuant to this chapter. 2 B. Every establishment that is licensed to keep or display any video gaming terminal in the city pursuant to this chapter shall pay a yearly license fee to the city in the amount of$25 for each video gaming terminal in the city. C. Failure and neglect to pay the requisite fees in a timely manner shall be cause for denial of issuance or non-renewal or revocation as the case may be. D. All licenses shall expire on April 30, next after the date of issue. E. It shall be a prerequisite to any license from the city that the person keeping or displaying video gaming terminals shall have a valid license from the State of Illinois for each such video gaming terminal. A loss or suspension of any such license by the State of Illinois shall automatically result in the same status for the license issued hereunder, without refund of any license fee. F. A license for a video gaming terminal issued by the city shall be framed and hung in plain view in a conspicuous place on the licensed premises. 6.08.050: APPLICATIONS: A. Applications for license pursuant to this chapter shall be directed to and filed with the Local Liquor Control Commission of the city. In addition to the licensing fees imposed applicants for a distributor's license should also pay a non-refundable$200 application fee at the time of filing of an initial application to cover the cost of processing the application. Prior to the issuance of any license applicants shall also pay to the city clerk the full amount of the annual license fee required to be paid for the kind of license applied for. B. All applications shall be on forms approved by the local liquor control commission and provided by the city. If the applicant is a partnership,all partners shall sign the application. If the applicant is a corporation or club, the president and secretary of the applicant business entity shall sign the application. If the applicant is a limited liability company, the managers of the limited liability company shall sign the application. If the members of the limited liability company do not elect managers, the application shall be signed by the members with interest representing the majority of the book value of the membership interest unless the articles of organization or operating agreement otherwise provide the manner in which members or managers may bind a limited liability company. Each application shall contain at the least the following information and statements: 1. The applicant's name, birthdate, social security number, driver's license number, address,position and percentage of ownership in the business; and the name,birthdate,social security number,driver's license number,address, position and percentage of ownership in the business of every sole owner, partner, corporate officer, director, manager of a limited liability company, manager and any person or member of the limited liability company who owns 5% or more of the shares of the applicant business entity or parent 3 corporations of the applicant business entry. The articles of incorporation for any corporation shall be attached to the application. 2. The type of license applied for,whether distributors license or video gaming terminal license. 3. Description of the principal business and any ancillary business to be operated on the premises. 4. For a distributor's license a list of all premises in the city and number of video gaming terminals at each premises the distributor owns, has sold, leased out, supplied or delivered for which a distributor's license is being sought. 5. For licenses for video game terminals the name and address of the distributor and the terminator operator for each of the video gaming terminals for which permission is sought under the license. 6. For an initial license for video gaming terminals at a premises a set of floor plans showing the design and layout of the premises including, but not limited to, seating, dining rooms, bars, game and waiting areas, proposed video gaming areas,and the position of equipment and fixtures therein. The layout of any video gaming terminal licensed premises may not be substantially changed without submission of a new set of plans and approval by the Local Liquor Control Commission. 7. The number of video gaming terminals for which permission is sought under the license. 8. A copy of the license from the State of Illinois for the distributor or for each video gaming terminal for which an application to the city is being made along with a copy of the application for such license submitted to the State of Illinois. 9. Such other information required by the Local Liquor Commission to determine compliance with the requirements of this chapter. 6.08.060: CONDITIONS OF LICENSE: A. In addition to any other conditions or regulations contained in this chapter,each and every video gaming terminal shall be licensed by the State of Illinois and the license of each and every video gaming terminal shall be maintained at the licensed premises where the video gaming terminal is operated. B. Video gaming terminals shall be placed and every video gaming terminal licensee shall be responsible to ensure that video gaming terminals are placed and operated in strict compliance with video gaming regulations, the requirements of this chapter, 4 and any other applicable requirements of law. C. In addition to any other conditions or regulations contained in this chapter or in the statutes of the State of Illinois, no video gaming terminal shall be located in any establishment that does not have a valid and current Class A,AA,C,E,El,E2 or E3 liquor license from the city. Notwithstanding the foregoing,any establishment which as of the effective date of this ordinance had a valid and current liquor license from the city other than a Class A, AA, C, E, El, E2 or E3, and which was lawfully operating video gaming terminals licensed by the State of Illinois,shall be eligible to be issued a video gaming terminal license by the city so long as such a licensee is in compliance with all other applicable requirements and so long as the video gaming terminal license is issued to the current holder of the liquor license issued by the city as of the effective date of this ordinance. Any sale, transfer or assignment of more than 50% of the ownership of a business or partnership holding the liquor licensed issued by the city shall terminate such grandfathered right to receive a video gaming terminal license from the city. In the event that such a liquor license is held in the name of a corporation, the sale, transfer or assignment of 50% of the stock shall terminate such grandfathered right to receive a video gaming terminal license from the city. D. No video gaming terminal may be used, operated or played at a liquor licensed establishment where alcoholic liquor is sold except during the legal hours of operation allowed for the sale or consumption of alcoholic liquor on the premises pursuant to the provisions of Chapter 6.06 of this Code. E. No video gaming license shall be issued,and no video gaming terminals may be used or operated on a premises except as an accessory use to a principal use on such a premises as such terms are defined in Title 19 of this Code, as amended. 6.08.070: LICENSES NOT TRANSFERRABLE A. No license issued pursuant to this chapter may be transferred to any other person or entity or to any other premises. B. Any changes in partnerships, officers, directors, members or managers of a limited liability company or persons holding directly or beneficially more than 5% of the stock or ownership interest in a partnership or limited liability company holding a license under this chapter shall be reported in writing to the Local Liquor Control Commission within ten (10) days of the change. All such persons shall meet the standards of this chapter and must otherwise qualify to hold a license issued pursuant to this chapter. When a license has been issued to a partnership or limited liability company and a change of ownership occurs resulting in a partnership interest, or a membership interest in the case of a limited liability company, by one who is not eligible hold their liquor license, said license shall terminate. When a license has been issued to a corporation and a change takes place in the officers, directors, managers or shareholders of more than 5%of the stock,which changes the results in the holding of officer or shares by one who is not eligible for a license, said license 5 shall terminate. C. Any sale,transfer or assignment of more than 50%of the ownership of a business or partnership shall terminate licenses issued pursuant to this chapter. In the event that the license is held in the name of a corporation, the sale, transfer of assignment of 50%of the stock shall terminate licenses issued pursuant to this chapter. 6.08.080: REVOCATION; SUSPENSION; FINES The Local Liquor Control Commission has the authority to suspend, revoke and/or fine a licensee who is violating or has violated the provisions of this chapter pursuant to the same rules and procedures set forth in regard to liquor licenses as provided in Chapter 6.06 of this Code, provided however, appeals from orders or actions of the Local Liquor Control Commission with respect to video gaming licenses shall not be taken to the Illinois State Liquor Control Commission,and such appeals shall be made as otherwise provided by law. Actions for fines and injunctive relief may also be filed in the Circuit Court of Kane County or pursuant to Chapter 1.25 of this Code providing for administrative adjudication of non- vehicular code violations. 6.08.080: LIMITATIONS ON THE ISSUANCE OF VIDEO GAMING TERMINAL LICENSES: The number of video gaming terminal licenses shall be limited to 148 video gaming terminals." Section 2. That Section 6.06.020 of the Elgin Municipal Code, 1976, as amended, entitled"Liquor Control Commission Established;Composition:"be and is hereby further amended by amending subparagraph A thereof to read as follows: "A. For purposes of the administration of this chapter, there is established a Local Liquor Control Commission that shall be charged with the administration of the laws of the State and the City pertaining to the sale of alcoholic liquor. The Local Liquor Control Commission shall also be charged with the administration of Chapter 6.08 of this Code relating to video gaming licensing and the administration of the laws of the state and the city pertaining to video gaming and the licensing thereof." Section 3. That all ordinances or parts of ordinance in conflict with the provisions of this ordinance be and are hereby repealed to the extent of any such conflict. Section 4. That this ordinance shall be in full force and effect upon its passage and publication in the manner provided by law. /( / I► David J. Kapt n, :yor 6 Presented: July 10, 2019 Passed: July 10, 2019 Vote: Yeas: 9 Nays: 0 Recorded: July 10, 2019 Published: July 12, 2019 Attest: �,`0 OF F< kil/. 4e/(eeb(Ze/S • Kimberly Dewis, •' Clerk VIII szz: MTED F1L 7