SB0744sam006 96TH GENERAL ASSEMBLY

Sen. Terry Link

Filed: 5/20/2009

09600SB0744sam006 LRB096 06812 AMC 27241 a

AMENDMENT TO SENATE BILL 744

AMENDMENT NO. ______. Amend Senate Bill 744, AS AMENDED, with reference to page and line numbers of Senate Amendment No. 5, on page 42, line 14, after "9,", by inserting "20,"; and

on page 42, line 15, by replacing "and 3.27" with "3.27, and 30.6"; and

on page 44, by replacing lines 15 and 16 with the following: "slot machine gambling, video games of chance, and electronic gambling games that are conducted at a race track licensed under this Act pursuant to an electronic gaming license."; and

on page 57, immediately below line 4, by inserting the following:

"(230 ILCS 5/20) (from Ch. 8, par. 37-20)

Sec. 20. (a) Any person desiring to conduct a horse race meeting may apply to the Board for an organization license. The application shall be made on a form prescribed and furnished by the Board. The application shall specify:

(1) the dates on which it intends to conduct the horse race meeting, which dates shall be provided under Section 21;

(2) the hours of each racing day between which it intends to hold or conduct horse racing at such meeting;

(3) the location where it proposes to conduct the meeting; and

(4) any other information the Board may reasonably require.

(b) A separate application for an organization license shall be filed for each horse race meeting which such person proposes to hold. Any such application, if made by an individual, or by any individual as trustee, shall be signed and verified under oath by such individual. If made by individuals or a partnership, it shall be signed and verified under oath by at least 2 of such individuals or members of such partnership as the case may be. If made by an association, corporation, corporate trustee or any other entity, it shall be signed by the president and attested by the secretary or assistant secretary under the seal of such association, trust or corporation if it has a seal, and shall also be verified under oath by one of the signing officers.

(c) The application shall specify the name of the persons, association, trust, or corporation making such application and the post office address of the applicant; if the applicant is a trustee, the names and addresses of the beneficiaries; if a corporation, the names and post office addresses of all officers, stockholders and directors; or if such stockholders hold stock as a nominee or fiduciary, the names and post office addresses of these persons, partnerships, corporations, or trusts who are the beneficial owners thereof or who are beneficially interested therein; and if a partnership, the names and post office addresses of all partners, general or limited; if the applicant is a corporation, the name of the state of its incorporation shall be specified.

(d) The applicant shall execute and file with the Board a good faith affirmative action plan to recruit, train, and upgrade minorities in all classifications within the association.

(e) With such application there shall be delivered to the Board a certified check or bank draft payable to the order of the Board for an amount equal to $1,000. All applications for the issuance of an organization license shall be filed with the Board before August 1 of the year prior to the year for which application is made and shall be acted upon by the Board at a meeting to be held on such date as shall be fixed by the Board during the last 15 days of September of such prior year. At such meeting, the Board shall announce the award of the racing meets, live racing schedule, and designation of host track to the applicants and its approval or disapproval of each application. No announcement shall be considered binding until a formal order is executed by the Board, which shall be executed no later than October 15 of that prior year. Absent the agreement of the affected organization licensees, the Board shall not grant overlapping race meetings to 2 or more tracks that are within 100 miles of each other to conduct the thoroughbred racing.

(e-1) In awarding standardbred racing dates for calendar year 2010 and thereafter, the Board shall award at least 312 racing days. The Board shall have the discretion to allocate those racing days among organization licensees. Once awarded by the Board, organization licensees shall run at least 3,500 races annually. Should the organization licensee fail to race all dates awarded by the Board, the organization licensees shall pay to the standardbred purse account at that racing facility an amount equal to the organization licensee's revenue from electronic gaming for the day not raced. The Board may waive the requirements of this subsection only if a lesser schedule is appropriate due to (a) weather or unsafe tracks conditions due to acts of God, (b) an agreement between the organization licensee and the association representing standardbred horsemen racing at the organization licensee's race meeting, or (c) lack of sufficient numbers of horses to conduct racing.

(e-5) In reviewing an application for the purpose of granting an organization license consistent with the best interests of the public and the sport of horse racing, the Board shall consider:

(1) the character, reputation, experience, and financial integrity of the applicant and of any other separate person that either:

(i) controls the applicant, directly or indirectly, or

(ii) is controlled, directly or indirectly, by that applicant or by a person who controls, directly or indirectly, that applicant;

(2) the applicant's facilities or proposed facilities for conducting horse racing;

(3) the total revenue without regard to Section 32.1 to be derived by the State and horsemen from the applicant's conducting a race meeting;

(4) the applicant's good faith affirmative action plan to recruit, train, and upgrade minorities in all employment classifications;

(5) the applicant's financial ability to purchase and maintain adequate liability and casualty insurance;

(6) the applicant's proposed and prior year's promotional and marketing activities and expenditures of the applicant associated with those activities;

(7) an agreement, if any, among organization licensees as provided in subsection (b) of Section 21 of this Act; and

(8) the extent to which the applicant exceeds or meets other standards for the issuance of an organization license that the Board shall adopt by rule.

In granting organization licenses and allocating dates for horse race meetings, the Board shall have discretion to determine an overall schedule, including required simulcasts of Illinois races by host tracks that will, in its judgment, be conducive to the best interests of the public and the sport of horse racing.

(e-10) The Illinois Administrative Procedure Act shall apply to administrative procedures of the Board under this Act for the granting of an organization license, except that (1) notwithstanding the provisions of subsection (b) of Section 10-40 of the Illinois Administrative Procedure Act regarding cross-examination, the Board may prescribe rules limiting the right of an applicant or participant in any proceeding to award an organization license to conduct cross-examination of witnesses at that proceeding where that cross-examination would unduly obstruct the timely award of an organization license under subsection (e) of Section 20 of this Act; (2) the provisions of Section 10-45 of the Illinois Administrative Procedure Act regarding proposals for decision are excluded under this Act; (3) notwithstanding the provisions of subsection (a) of Section 10-60 of the Illinois Administrative Procedure Act regarding ex parte communications, the Board may prescribe rules allowing ex parte communications with applicants or participants in a proceeding to award an organization license where conducting those communications would be in the best interest of racing, provided all those communications are made part of the record of that proceeding pursuant to subsection (c) of Section 10-60 of the Illinois Administrative Procedure Act; (4) the provisions of Section 14a of this Act and the rules of the Board promulgated under that Section shall apply instead of the provisions of Article 10 of the Illinois Administrative Procedure Act regarding administrative law judges; and (5) the provisions of subsection (d) of Section 10-65 of the Illinois Administrative Procedure Act that prevent summary suspension of a license pending revocation or other action shall not apply.

(f) The Board may allot racing dates to an organization licensee for more than one calendar year but for no more than 3 successive calendar years in advance, provided that the Board shall review such allotment for more than one calendar year prior to each year for which such allotment has been made. The granting of an organization license to a person constitutes a privilege to conduct a horse race meeting under the provisions of this Act, and no person granted an organization license shall be deemed to have a vested interest, property right, or future expectation to receive an organization license in any subsequent year as a result of the granting of an organization license. Organization licenses shall be subject to revocation if the organization licensee has violated any provision of this Act or the rules and regulations promulgated under this Act or has been convicted of a crime or has failed to disclose or has stated falsely any information called for in the application for an organization license. Any organization license revocation proceeding shall be in accordance with Section 16 regarding suspension and revocation of occupation licenses.

(f-5) If, (i) an applicant does not file an acceptance of the racing dates awarded by the Board as required under part (1) of subsection (h) of this Section 20, or (ii) an organization licensee has its license suspended or revoked under this Act, the Board, upon conducting an emergency hearing as provided for in this Act, may reaward on an emergency basis pursuant to rules established by the Board, racing dates not accepted or the racing dates associated with any suspension or revocation period to one or more organization licensees, new applicants, or any combination thereof, upon terms and conditions that the Board determines are in the best interest of racing, provided, the organization licensees or new applicants receiving the awarded racing dates file an acceptance of those reawarded racing dates as required under paragraph (1) of subsection (h) of this Section 20 and comply with the other provisions of this Act. The Illinois Administrative Procedures Act shall not apply to the administrative procedures of the Board in conducting the emergency hearing and the reallocation of racing dates on an emergency basis.

(g) (Blank).

(h) The Board shall send the applicant a copy of its formally executed order by certified mail addressed to the applicant at the address stated in his application, which notice shall be mailed within 5 days of the date the formal order is executed.

Each applicant notified shall, within 10 days after receipt of the final executed order of the Board awarding racing dates:

(1) file with the Board an acceptance of such award in the form prescribed by the Board;

(2) pay to the Board an additional amount equal to $110 for each racing date awarded; and

(3) file with the Board the bonds required in Sections 21 and 25 at least 20 days prior to the first day of each race meeting.

Upon compliance with the provisions of paragraphs (1), (2), and (3) of this subsection (h), the applicant shall be issued an organization license.

If any applicant fails to comply with this Section or fails to pay the organization license fees herein provided, no organization license shall be issued to such applicant.

(Source: P.A. 91-40, eff. 6-25-99.)"; and

by replacing line 22 on page 72 through line 8 on page 73 with the following:

"with the provisions of this Section. For the calendar year in which any organization licensee that is eligible to receive payment under this paragraph (13) begins to receive funds from electronic gaming, the amount of the payment due to all organization licensees under this paragraph (13) shall be reduced by a percentage equal to the percentage of the year remaining after the earliest date that any wagering facility begins conducting electronic gaming pursuant to its electronic gaming license. No organization licensees shall be able to receive payments under this paragraph (13) beginning on the January 1 first occurring after the earliest date that any organization licensee begins receiving funds from electronic gaming pursuant to Section 7.10 of the Illinois Gambling Act."; and

on page 97, immediately below line 16, by inserting the following:

"(230 ILCS 5/30.6 new)

Sec. 30.6. Grants from Quarter Horse Purse Fund. Thoroughbred organization licensees may petition the Board to conduct quarter horse racing and receive purse grants from the Quarter Horse Purse Fund. The Board shall have complete discretion in distributing the Quarter Horse Purse Fund to the petitioning organization licensees."; and

on page 109, line 2, by replacing "slot machines" with "electronic gaming"; and

on page 121, immediately below line 10, by inserting the following:

"Any action by the Board or staff of the Board, including, but not limited to, denying a renewal, approving procedures (including internal controls), levying a fine or penalty, promotions, or other activities by an applicant for licensure or a licensee, may at the discretion of the applicant or licensee be appealed to an administrative law judge in accordance with subsection (b) of Section 17.1.

Internal controls and changes submitted by licensees must be reviewed and either approved or denied with cause within 60 days after receipt by the Illinois Gaming Board. In the event an internal control submission or change does not meet the standards set by the Board, staff of the Board must provide technical assistance to the licensee to rectify such deficiencies within 60 days after the initial submission and the revised submission must be reviewed and approved or denied with cause within 60 days. For the purposes of this paragraph, "with cause" means that the approval of the submission would jeopardize the integrity of gaming. In the event the Board staff has not acted within the timeframe, the submission shall be deemed approved."; and

on page 143, line 26, by replacing "at its licensed facility" with "on a riverboat or in a casino and up to 50 electronic poker positions at each electronic gaming facility"; and

on page 144, by replacing lines 7 through 10 with the following:

"For the purposes of this subsection (l), "electronic poker" means a form of gambling by which players can play electronically via a network of machines at the same or any other licensed facility in Illinois."; and

on page 154, line 1, by replacing "State" with "State Gaming Fund"; and

on page 157, lines 23 and 24, by replacing "Horse Racing Equity Fund" with "the Quarter Horse Purse Fund and the Horse Racing Equity Trust Fund"; and

on page 158, by replacing lines 7 through 18 with the following: "the electronic gaming licensee from electronic gaming operations shall be distributed as follows:

(1) $250,000 in each calendar year shall be deposited into the Quarter Horse Purse Fund, which is created as a non-appropriated trust fund administered by the Illinois Racing Board for grants to thoroughbred organization licensees for payment of purses for quarter horse races conducted by the organization licensee.

(2) The remainder shall be deposited into the Horse Racing Equity Trust Fund.

If the sum of the amounts distributed under paragraphs (1) and (2) of this Section does not equal $50,000,000 in a calendar year, then each electronic gaming licensee must pay into the Horse Racing Equity Trust Fund a portion of the difference between the total amount paid for that calendar year and $50,000,000, based upon each electronic gaming licensee's adjusted gross receipts for that calendar year as compared to total adjusted gross receipts from all electronic gaming licensees for that calendar year.

If the percentage of adjusted gross receipts to be deposited into the Horse Racing Equity Fund under subsection (c-5) of Section 13 is reduced by law, then the percentage of each licensee's remaining balance after payment of taxes under Section 13 of this Act and operational costs incurred by the electronic gaming licensee from electronic gaming operations that shall be distributed to the Quarter Horse Purse Fund and the Horse Racing Equity Trust Fund shall be increased to 40%."; and

on page 171, line immediately below line 8, by inserting the following:

"If the licensed owner of a riverboat in operation on January 1, 2009 has capital projects of at least $40,000,000 that are approved by the Board in calendar year 2006 and thereafter or, starting in 2006 and going forward, for which at least $40,000,000 in capital expenditures have been made during a period of 3 calendar years, then no admissions tax is imposed on admissions to that riverboat for a 3-year period beginning on (i) the January 1 after the approval or the expenditures have been made or (ii) in the case of projects approved or expenditures made before the effective date of this amendatory Act of the 96th General Assembly, January 1, 2010."; and

by deleting line 26 on page 172 through line 10 on page 173.