The rules contained in this section and the subsections thereunder shall govern all disciplinary actions against licensees including, but not limited to, suspension and revocation of a license.
A. Grounds for Disciplinary Actions:
1. Holders of any license issued under this chapter and identified persons with significant influence or control shall be subject to imposition of fines, suspension, revocation or restriction of license, or other disciplinary action for any act or failure to act by themselves or by their agents or employees that violates any provision of this chapter, is injurious to the public health, safety, morals, good order and general welfare of the people of the state or the City, or that would discredit or tend to discredit the Illinois video gaming industry, the state or the City. Without limiting the provisions of this subsection (a)(1), the following acts or omissions may be grounds for discipline:
a. Failing to comply with or make provision for compliance with the video gaming act, the regulations promulgated under the video gaming act and this chapter, any federal, state or local law or regulation, or a control system or protocol mandated by the Illinois gaming board or the City;
b. Failing to comply with any order or ruling of the Illinois gaming board or its agents pertaining to the regulation of video gaming in the state;
c. Failing to comply with any order or ruling of the liquor commissioner or the City's officers, employees or agents pertaining to the regulation of video gaming in the City;
d. Receiving goods or services from a licensee or other person in violation of the video gaming act's or this chapter's licensing requirements, or in violation of any restriction, condition or prohibition of a license;
e. Being suspended or ruled ineligible or having a license revoked or suspended by the Illinois gaming board, the City or in any state or gaming or video gaming jurisdiction;
f. Employing, associating with, or participating in any enterprise or business with a documented or identifiable organized crime group or recognized organized crime figure;
g. Employing, associating with, or participating in any enterprise or business with persons of notorious or unsavory reputation or who have extensive police records, or who have failed to cooperate with any officially constituted investigatory or administrative body;
h. Failing to establish and maintain standards and procedures designed to prevent ineligible or unsuitable persons from being employed by the licensee, including any person known to have been found guilty of cheating or using any improper device in connection with any game or gaming device regulated under the video gaming act or under the law of any gaming jurisdiction;
i. Misrepresenting any information to the Illinois gaming board, the liquor commissioner or the City;
j. Intentionally making, causing to be made, or aiding, assisting, or procuring another to make any false statement in any report, disclosure, application, permit, form, or any other document, including improperly notarized documents, required by the video gaming act, the regulations promulgated under the video gaming act or this chapter;
k. Submitting tardy, inaccurate, or incomplete material or information to the liquor commissioner;
l. Obstructing or impeding the lawful activities of the Illinois gaming board or its agents, the liquor commissioner or the City's officers, employees or agents;
m. Willfully or repeatedly failing to pay amounts due or to be remitted to the state or the City;
n. Failing to timely pay amounts due or to be remitted to the state or the City;
o. Failing to timely pay a fine imposed by the Illinois gaming board or the City;
p. Failing to respond in a timely manner to communications from the Illinois gaming board or the City;
q. Being unavailable to the Illinois gaming board, the City or their representatives or agents;
r. Aiding and abetting a violation by an Illinois gaming board member, City official or employee, or other government official, of a requirement established by statute, resolution, ordinance, personnel code or code of conduct;
s. Violation of the video gaming act, the regulations promulgated under the video gaming act or this chapter by any person identified as a person with significant influence or control;
t. Employing, associating with, or participating in any enterprise or business with a person determined unsuitable to be a person with significant influence or control over an applicant or licensee by the Illinois gaming board, the liquor commissioner or any other gaming jurisdiction;
u. Facilitating, enabling or participating in the use of coin operated amusement devices for gambling purposes on or after December 16, 2009;
v. Engaging in, or facilitating, any unfair methods of competition or unfair or deceptive acts or practices, including, but not limited to, the use or employment of any deception, fraud, false pretense, false promise or misrepresentation, or the concealment, suppression or omission of any material fact in the conduct of any video gaming operation;
w. Failing to maintain minimum qualifications for licensure; and
x. Any cause that, if known by the liquor commissioner, would have disqualified the applicant from receiving a license.
2. A licensee whose employment has been terminated is subject to revocation of license for any act or failure to act that occurred while licensed.
3. A person who has had his or her license revoked by the liquor commissioner may not reapply for a license without permission from the liquor commissioner.
B. Notice of Proposed Disciplinary Action Against Licensees:
1. When notified of facts sufficient to support disciplinary action against a licensee or a person with significant influence or control, the liquor commissioner shall immediately notify the licensee of the proposed disciplinary action. The notice shall advise the licensee of the following:
a. A statement of the facts supporting the proposed disciplinary action;
b. A description of the rule or statutory section the licensee has violated;
c. A statement or description of the matters asserted and the consequences of the failure to respond; and
d. The name and mailing address of the City.
2. The liquor commissioner shall serve the notice of proposed disciplinary action on the licensee by personal service or U.S. certified mail or U.S. regular mail to the last known address of the licensee. Service is complete four (4) days after mailing.
B. Hearings in Disciplinary Actions:
1. Should a licensee wish to contest the proposed disciplinary action, the licensee must submit a response to the notice of proposed disciplinary action described in subsection (b) of this section to the liquor commissioner.
2. All responses shall be in writing and shall include an original and one copy. The response shall contain the following:
a. The name, current address and current telephone number of the licensee.
b. A clear and concise statement admitting or denying each of the factual allegations set forth in the notice of proposed disciplinary action, with each admission or denial being shown in separately numbered paragraphs corresponding to the separately numbered paragraphs in the notice of proposed disciplinary action.
c. For all factual allegations that the licensee denies, a clear and concise statement of facts upon which the licensee relies or will rely on at a hearing.
d. A signature of the licensee.
e. A verification of the licensee in the following form:
The undersigned certifies that the statements set forth in this request are true and correct, except as to matters therein stated to be on information and belief and as to such matters the undersigned certifies as aforesaid that he or she verily believes the same to be true.
f. The response must be notarized.
g. A deposit of five hundred dollars ($500.00) to secure the attendance of a stenographer at the hearing to record the proceedings. Following the conclusion of the hearing, the City shall either refund to the licensee any portion of the deposit that exceeds the cost of the stenographer to record the proceedings or shall invoice the licensee for the amount of the cost of the stenographer to record the proceedings that exceeds the deposit.
3. The response must be filed within twenty-one (21) days after receipt of the notice of proposed disciplinary action. A response shall be deemed filed on the date on which it is postmarked.
4. If a response is not filed within twenty-one (21) days after receipt of the notice of proposed disciplinary action, then the proposed disciplinary action becomes effective and final immediately.
5. No response shall be deemed filed if it fails to comply with any of the requirements of this section.
6. The licensee may submit a response by:
a. Personal delivery;
b. Certified mail, postage prepaid; or
c. Overnight express mail, postage prepaid.
7. All responses must be submitted to the liquor commissioner at the City's offices.
8. If a response is properly filed, the liquor commissioner will conduct a hearing.
C. Appearances:
1. All licensees may be represented by an attorney who is licensed to practice in Illinois. All attorneys who appear in a representative capacity on behalf of a licensee must file a written appearance setting forth:
a. The name, address and telephone number of the attorney;
b. The name and address of the licensee the attorney represents; and
c. An affirmative statement that the attorney is licensed to practice in Illinois.
2. Only individual attorneys may file appearances. Any licensee's attorney who has not filed an appearance may not address the liquor commissioner or sign pleadings.
3. An attorney may only withdraw his or her appearance upon written notice to the liquor commissioner.
4. An individual may appear on his or her own behalf.
5. A partner may appear on behalf of a partnership.
6. A corporation and a limited liability company must be represented by an attorney.
7. The City will be represented by its corporation counsel.
8. The liquor commissioner may, but shall not be required to, appoint an attorney admitted to the practice of law by, and in good standing with, the Illinois supreme court to advise the liquor commissioner on conducting the hearing in accordance with this section.
D. Discovery:
1. Upon written request served on the opposing party, a party shall be entitled to:
a. The name and address of any witness who may be reasonably expected to testify on behalf of the opposing party;
b. All documents or other materials in the possession or control of the opposing party that the opposing party reasonably expects will be necessary to introduce into evidence. The licensee's burden of production includes those documents the licensee reasonably expects to introduce into evidence either in his or her case in chief or in rebuttal. Rebuttal documents, to the extent that they are not immediately identifiable, shall be tendered to the liquor commissioner within fourteen (14) days after receipt of documents tendered to licensee by the liquor commissioner unless additional time is granted by the liquor commissioner.
2. Discovery may be obtained only through written requests to produce witness lists, documents or other materials, as specified in subsection (e)(1) of this section. Witnesses and documents responsive to a proper request for production that were not produced shall be excluded from the hearing and additional sanctions or penalties may be imposed.
E. Subpoenas:
1. Subpoenas for the attendance of witnesses at hearing may be served by the licensee only upon application to the liquor commissioner.
a. The licensee must show good cause, state the testimony to be elicited from a witness, state why the evidence to which the testimony relates cannot otherwise be obtained, and state the reasons why the testimony is necessary and relevant.
b. An agent or employee of the Illinois gaming board or the City may not be required by the licensee to appear except under the procedures provided in this section.
2. The liquor commissioner may issue subpoenas for the attendance of witnesses or subpoenas duces tecum for the production of relevant documents, records or other material at a disciplinary proceeding conducted under this chapter.
F. Proceedings:
1. The City shall establish the charges contained in the notice of proposed disciplinary action by a preponderance of the evidence.
2. All testimony shall be given under oath or affirmation.
3. All testimony and oral proceedings shall be recorded stenographically or by such other means as to adequately ensure the preservation of such testimony or oral proceedings and shall be transcribed on request of any party. The stenographer or such other means as to adequately ensure the preservation of such testimony or oral proceedings shall be arranged by the City. The cost of the stenographer or such other means as to adequately ensure the preservation of such testimony or oral proceedings shall be paid by the licensee. The transcript shall be paid for by the requesting party.
4. Both parties may present opening statements. The City will proceed first, followed by the licensee.
5. The City shall then present its case.
6. Upon the conclusion of the City's case, the licensee may move for a directed finding. The liquor commissioner may hear arguments on the motion or may grant, deny or reserve decision on the motion, without argument.
7. If no motion for directed finding is made, or if such motion is denied or decision reserved, the licensee may present its case.
8. Upon the conclusion of the licensee's case, the City may present evidence in rebuttal.
9. Each party may conduct cross examination of adverse witnesses.
10. Both parties may present closing arguments. The City proceeds first, then the licensee, and thereafter the City may present rebuttal argument.
G. Evidence:
1. The hearing need not be conducted according to the technical rules of evidence. Any relevant evidence may be admitted and shall be sufficient in itself to support a finding if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statute that might make improper the admission of evidence over objection in a civil action. Hearsay may support a finding of the liquor commissioner if it is the best evidence available, has sufficient indicia of trustworthiness and reliability, and is of the type reasonably and customarily relied on in the gaming industry.
a. If relevant, and not precluded from the hearing by section 6(d) of the riverboat gambling act 1 relating to all licensed applicants, the official Illinois gaming board records or certified copies of the records shall be admissible into evidence if the records tend to prove or disprove an allegation contained in the complaint.
b. Official Illinois gaming board records are documents either prepared by or provided to the Illinois gaming board for the purpose of conducting its regular business.
c. If relevant and not precluded from the hearing by a statute, regulation or ordinance, official City records or certified copies of the records shall be admissible into evidence.
d. Official City records are documents either prepared by or provided to the City for the purpose of conducting its regular business.
2. The parties should, to the fullest extent possible, stipulate to all matters that are not or fairly should not be in dispute.
3. The parties may make objections to evidentiary offers. When an objection is made, the liquor commissioner may receive the disputed evidence subject to a ruling at a later time.
4. The liquor commissioner may take official notice of any generally accepted information or technical or scientific matter within the field of video gaming, and any other fact that may be judicially noticed by courts of this state. The parties shall be informed of any information, matter or facts so noticed, including any City staff memoranda or data, and shall be given reasonable opportunity to refute that information.
H. Prohibition On Ex Parte Communication: No licensee or its representative shall communicate directly or indirectly with the liquor commissioner regarding any pending disciplinary matter, except upon notice to and opportunity for all parties to participate.
I. Sanctions and Penalties:
1. The liquor commissioner may impose sanctions and penalties if the liquor commissioner finds that a party has acted in bad faith, for the purpose of delay, or has otherwise abused the hearing process. Such sanctions and penalties include, but are not limited to, default judgment or directed finding on one or more issues.
2. If a licensee fails to testify on his or her own behalf with respect to any question propounded to him or her, the liquor commissioner may infer that such testimony or answer would have been adverse to the licensee's case.
3. Failure of a licensee to appear at a hearing or scheduled proceeding shall constitute an admission of all matters and facts contained in the complaint. In such cases the liquor commissioner may take action based upon that admission or upon any other evidence, including affidavits, without any further notice to the licensee.
J. Hearing Record and Order:
1. The record shall consist of the following:
a. The notice of denial, the request for hearing and all motions and rulings;
b. All evidence received;
c. A statement of matters officially noticed; and
d. Offers of proof, objections and rulings.
2. Upon conclusion of the hearing the liquor commissioner shall review the entire record and shall render a written order including written findings of fact and conclusions of law on which the liquor commissioner's decision is based. The findings of fact shall be based exclusively on the evidence and on matters officially noticed.
3. Copies of the liquor commissioner's final order shall be served on the licensee by personal delivery, certified mail or overnight express mail to licensee's last known address.
4. The liquor commissioner's final order shall become effective upon personal delivery to the licensee or upon posting by certified or overnight express mail to applicant's last known address.
K. Penalties:
1. The liquor commissioner may impose fines, suspend, revoke or restrict any license issued under this chapter or impose other disciplinary action for any act or failure to act by the licensee or by the licensee's agents or employees that violates any provision of the video gaming act or the regulations promulgated under the video gaming act or this chapter.
2. Failure to maintain the state license, the video gaming terminal license of each video gaming terminal or the location license at the location where the video gaming terminal is operated shall be subject to a fine not to exceed one thousand dollars ($1000.00).
3. Any licensee who knowingly permits a person under the age of twenty-one (21) years to use or play a video gaming terminal shall be subject to a fine of not more than one thousand dollars ($1000.00).
4. Any licensed video gaming location in the City used for the conduct of gambling games in violation of this chapter shall be subject to a fine of not more than one thousand dollars ($1000.00).
5. Any person, firm, corporation, partnership, limited liability company, or other entity recognized in law who violates any provision of this chapter for which another penalty is not specifically provided shall be subject to a fine of not less than seven hundred fifty dollars ($750.00) nor more than one thousand dollars ($1,000.00). Each and every day that a violation occurs or exists shall constitute a separate and distinct offense for which a fine may be imposed. In addition to the penalties provided herein, the City shall have available to it all remedies in law or in equity or as may be otherwise provided for by the ordinances of the City.
6. Every gambling device found in a licensed video gaming location in the City operating gambling games in violation of this chapter shall be subject to seizure and confiscation and shall be turned over to the Illinois gaming board as provided in section 1800.1110 of the Illinois administrative code.
7. Any City liquor license issued by the liquor commissioner under the provisions of section 4-2 of this code to any operator of a licensed video gaming location that operates or permits the operation of a video gaming terminal within its establishment in violation of this chapter shall be immediately revoked. (Ord. 3567, 9-23-2019)
Notes
| 1 | 230 ILCS 10/6(d) |