97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2931

 

Introduced 2/1/2012, by Sen. Michael Noland

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 10/7  from Ch. 120, par. 2407
230 ILCS 10/11.2

    Amends the Riverboat Gambling Act (1) to require the Illinois Gaming Board to award owners licenses to applicants whose plans (i) generate the highest amount of revenue to the State and (ii) provide for the least amount of cannibalization of existing licensees' revenues generated pursuant to the Act and (2) to condition the approval of relocation to a new home dock location for a licensee that was not conducting riverboat gambling on January 1, 1998 upon the determination that the new home dock provides for the least amount of cannibalization of an existing licensee's revenues. Effective upon becoming law.


LRB097 19373 AMC 64626 b

 

 

A BILL FOR

 

SB2931LRB097 19373 AMC 64626 b

1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Riverboat Gambling Act is amended by
5changing Sections 7 and 11.2 as follows:
 
6    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
7    Sec. 7. Owners Licenses.
8    (a) The Board shall issue owners licenses to persons, firms
9or corporations which apply for such licenses upon payment to
10the Board of the non-refundable license fee set by the Board,
11upon payment of a $25,000 license fee for the first year of
12operation and a $5,000 license fee for each succeeding year and
13upon a determination by the Board that the applicant is
14eligible for an owners license pursuant to this Act and the
15rules of the Board. From the effective date of this amendatory
16Act of the 95th General Assembly until (i) 3 years after the
17effective date of this amendatory Act of the 95th General
18Assembly, (ii) the date any organization licensee begins to
19operate a slot machine or video game of chance under the
20Illinois Horse Racing Act of 1975 or this Act, (iii) the date
21that payments begin under subsection (c-5) of Section 13 of the
22Act, or (iv) the wagering tax imposed under Section 13 of this
23Act is increased by law to reflect a tax rate that is at least

 

 

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1as stringent or more stringent than the tax rate contained in
2subsection (a-3) of Section 13, whichever occurs first, as a
3condition of licensure and as an alternative source of payment
4for those funds payable under subsection (c-5) of Section 13 of
5the Riverboat Gambling Act, any owners licensee that holds or
6receives its owners license on or after the effective date of
7this amendatory Act of the 94th General Assembly, other than an
8owners licensee operating a riverboat with adjusted gross
9receipts in calendar year 2004 of less than $200,000,000, must
10pay into the Horse Racing Equity Trust Fund, in addition to any
11other payments required under this Act, an amount equal to 3%
12of the adjusted gross receipts received by the owners licensee.
13The payments required under this Section shall be made by the
14owners licensee to the State Treasurer no later than 3:00
15o'clock p.m. of the day after the day when the adjusted gross
16receipts were received by the owners licensee. A person, firm
17or corporation is ineligible to receive an owners license if:
18        (1) the person has been convicted of a felony under the
19    laws of this State, any other state, or the United States;
20        (2) the person has been convicted of any violation of
21    Article 28 of the Criminal Code of 1961, or substantially
22    similar laws of any other jurisdiction;
23        (3) the person has submitted an application for a
24    license under this Act which contains false information;
25        (4) the person is a member of the Board;
26        (5) a person defined in (1), (2), (3) or (4) is an

 

 

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1    officer, director or managerial employee of the firm or
2    corporation;
3        (6) the firm or corporation employs a person defined in
4    (1), (2), (3) or (4) who participates in the management or
5    operation of gambling operations authorized under this
6    Act;
7        (7) (blank); or
8        (8) a license of the person, firm or corporation issued
9    under this Act, or a license to own or operate gambling
10    facilities in any other jurisdiction, has been revoked.
11    The Board is expressly prohibited from making changes to
12the requirement that licensees make payment into the Horse
13Racing Equity Trust Fund without the express authority of the
14Illinois General Assembly and making any other rule to
15implement or interpret this amendatory Act of the 95th General
16Assembly. For the purposes of this paragraph, "rules" is given
17the meaning given to that term in Section 1-70 of the Illinois
18Administrative Procedure Act.
19    (b) In determining whether to grant an owners license to an
20applicant, the Board shall consider:
21        (1) the character, reputation, experience and
22    financial integrity of the applicants and of any other or
23    separate person that either:
24            (A) controls, directly or indirectly, such
25        applicant, or
26            (B) is controlled, directly or indirectly, by such

 

 

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1        applicant or by a person which controls, directly or
2        indirectly, such applicant;
3        (2) the facilities or proposed facilities for the
4    conduct of riverboat gambling;
5        (3) the highest prospective total revenue to be derived
6    by the State from the conduct of riverboat gambling;
7        (4) the extent to which the ownership of the applicant
8    reflects the diversity of the State by including minority
9    persons, females, and persons with a disability and the
10    good faith affirmative action plan of each applicant to
11    recruit, train and upgrade minority persons, females, and
12    persons with a disability in all employment
13    classifications;
14        (5) the financial ability of the applicant to purchase
15    and maintain adequate liability and casualty insurance;
16        (6) whether the applicant has adequate capitalization
17    to provide and maintain, for the duration of a license, a
18    riverboat;
19        (7) the extent to which the applicant exceeds or meets
20    other standards for the issuance of an owners license which
21    the Board may adopt by rule; and
22        (8) The amount of the applicant's license bid.
23    (c) Each owners license shall specify the place where
24riverboats shall operate and dock.
25    (d) Each applicant shall submit with his application, on
26forms provided by the Board, 2 sets of his fingerprints.

 

 

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1    (e) The Board may issue up to 10 licenses authorizing the
2holders of such licenses to own riverboats. In the application
3for an owners license, the applicant shall state the dock at
4which the riverboat is based and the water on which the
5riverboat will be located. The Board shall issue 5 licenses to
6become effective not earlier than January 1, 1991. Three of
7such licenses shall authorize riverboat gambling on the
8Mississippi River, or, with approval by the municipality in
9which the riverboat was docked on August 7, 2003 and with Board
10approval, be authorized to relocate to a new location, in a
11municipality that (1) borders on the Mississippi River or is
12within 5 miles of the city limits of a municipality that
13borders on the Mississippi River and (2), on August 7, 2003,
14had a riverboat conducting riverboat gambling operations
15pursuant to a license issued under this Act; one of which shall
16authorize riverboat gambling from a home dock in the city of
17East St. Louis. One other license shall authorize riverboat
18gambling on the Illinois River south of Marshall County. The
19Board shall issue one additional license to become effective
20not earlier than March 1, 1992, which shall authorize riverboat
21gambling on the Des Plaines River in Will County. The Board may
22issue 4 additional licenses to become effective not earlier
23than March 1, 1992. In determining the water upon which
24riverboats will operate, the Board shall consider the economic
25benefit which riverboat gambling confers on the State, and
26shall seek to assure that all regions of the State share in the

 

 

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1economic benefits of riverboat gambling.
2    The Board shall award owners licenses to applicants whose
3plans (i) generate the highest amount of revenue to the State
4and (ii) provide for the least amount of cannibalization of
5existing licensees' revenues generated pursuant to this Act.
6For the purposes of this subsection (e), "cannibalization"
7means the diversion of revenues generated pursuant to this Act
8from existing licensees by an owners licensee authorized under
9this subsection (e). In determining whether cannibalization
10exists, the Board shall also consider the extent to which the
11applicant can attract from market areas of neighboring states.
12    In granting all licenses, the Board may give favorable
13consideration to economically depressed areas of the State, to
14applicants presenting plans which provide for significant
15economic development over a large geographic area, and to
16applicants who currently operate non-gambling riverboats in
17Illinois. The Board shall review all applications for owners
18licenses, and shall inform each applicant of the Board's
19decision. The Board may grant an owners license to an applicant
20that has not submitted the highest license bid, but if it does
21not select the highest bidder, the Board shall issue a written
22decision explaining why another applicant was selected and
23identifying the factors set forth in this Section that favored
24the winning bidder.
25    In addition to any other revocation powers granted to the
26Board under this Act, the Board may revoke the owners license

 

 

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1of a licensee which fails to begin conducting gambling within
215 months of receipt of the Board's approval of the application
3if the Board determines that license revocation is in the best
4interests of the State.
5    (f) The first 10 owners licenses issued under this Act
6shall permit the holder to own up to 2 riverboats and equipment
7thereon for a period of 3 years after the effective date of the
8license. Holders of the first 10 owners licenses must pay the
9annual license fee for each of the 3 years during which they
10are authorized to own riverboats.
11    (g) Upon the termination, expiration, or revocation of each
12of the first 10 licenses, which shall be issued for a 3 year
13period, all licenses are renewable annually upon payment of the
14fee and a determination by the Board that the licensee
15continues to meet all of the requirements of this Act and the
16Board's rules. However, for licenses renewed on or after May 1,
171998, renewal shall be for a period of 4 years, unless the
18Board sets a shorter period.
19    (h) An owners license shall entitle the licensee to own up
20to 2 riverboats. A licensee shall limit the number of gambling
21participants to 1,200 for any such owners license. A licensee
22may operate both of its riverboats concurrently, provided that
23the total number of gambling participants on both riverboats
24does not exceed 1,200. Riverboats licensed to operate on the
25Mississippi River and the Illinois River south of Marshall
26County shall have an authorized capacity of at least 500

 

 

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1persons. Any other riverboat licensed under this Act shall have
2an authorized capacity of at least 400 persons.
3    (i) A licensed owner is authorized to apply to the Board
4for and, if approved therefor, to receive all licenses from the
5Board necessary for the operation of a riverboat, including a
6liquor license, a license to prepare and serve food for human
7consumption, and other necessary licenses. All use, occupation
8and excise taxes which apply to the sale of food and beverages
9in this State and all taxes imposed on the sale or use of
10tangible personal property apply to such sales aboard the
11riverboat.
12    (j) The Board may issue or re-issue a license authorizing a
13riverboat to dock in a municipality or approve a relocation
14under Section 11.2 only if, prior to the issuance or
15re-issuance of the license or approval, the governing body of
16the municipality in which the riverboat will dock has by a
17majority vote approved the docking of riverboats in the
18municipality. The Board may issue or re-issue a license
19authorizing a riverboat to dock in areas of a county outside
20any municipality or approve a relocation under Section 11.2
21only if, prior to the issuance or re-issuance of the license or
22approval, the governing body of the county has by a majority
23vote approved of the docking of riverboats within such areas.
24(Source: P.A. 95-1008, eff. 12-15-08; 96-1392, eff. 1-1-11.)
 
25    (230 ILCS 10/11.2)

 

 

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1    Sec. 11.2. Relocation of riverboat home dock.
2    (a) A licensee that was not conducting riverboat gambling
3on January 1, 1998 may apply to the Board for renewal and
4approval of relocation to a new home dock location authorized
5under Section 3(c) upon renewal of the license and the Board
6shall grant the application and approval (i) upon receipt by
7the licensee of approval from the new municipality or county,
8as the case may be, in which the licensee wishes to relocate
9pursuant to Section 7(j) and (ii) upon the determination that
10the new home dock provides for the least amount of
11cannibalization, as defined in subsection (e) of Section 7, of
12an existing licensee's revenues generated pursuant to this Act.
13    (b) Any licensee that relocates its home dock pursuant to
14this Section shall attain a level of at least 20% minority
15person and female ownership, at least 16% and 4% respectively,
16within a time period prescribed by the Board, but not to exceed
1712 months from the date the licensee begins conducting gambling
18at the new home dock location. The 12-month period shall be
19extended by the amount of time necessary to conduct a
20background investigation pursuant to Section 6. For the
21purposes of this Section, the terms "female" and "minority
22person" have the meanings provided in Section 2 of the Business
23Enterprise for Minorities, Females, and Persons with
24Disabilities Act.
25(Source: P.A. 91-40, eff. 6-25-99.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.