97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3176

 

Introduced 2/24/2011, by Rep. John D. Cavaletto

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 10/13  from Ch. 120, par. 2413
230 ILCS 10/23  from Ch. 120, par. 2423

    Amends the Riverboat Gambling Act. Provides that, on the first day of every month, the Comptroller must certify to the Board the mean delay in payment of valid reimbursement claims of health service providers. Requires the Illinois Gaming Board to delay payments to units of local government from privilege tax receipts by the length of time certified by the Comptroller. Provides that any interest on moneys held by the Illinois Gaming Board shall be transferred to the General Revenue Fund.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 13 and 23 as follows:
 
6    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
7    Sec. 13. Wagering tax; rate; distribution.
8    (a) Until January 1, 1998, a tax is imposed on the adjusted
9gross receipts received from gambling games authorized under
10this Act at the rate of 20%.
11    (a-1) From January 1, 1998 until July 1, 2002, a privilege
12tax is imposed on persons engaged in the business of conducting
13riverboat gambling operations, based on the adjusted gross
14receipts received by a licensed owner from gambling games
15authorized under this Act at the following rates:
16        15% of annual adjusted gross receipts up to and
17    including $25,000,000;
18        20% of annual adjusted gross receipts in excess of
19    $25,000,000 but not exceeding $50,000,000;
20        25% of annual adjusted gross receipts in excess of
21    $50,000,000 but not exceeding $75,000,000;
22        30% of annual adjusted gross receipts in excess of
23    $75,000,000 but not exceeding $100,000,000;

 

 

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1        35% of annual adjusted gross receipts in excess of
2    $100,000,000.
3    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
4is imposed on persons engaged in the business of conducting
5riverboat gambling operations, other than licensed managers
6conducting riverboat gambling operations on behalf of the
7State, based on the adjusted gross receipts received by a
8licensed owner from gambling games authorized under this Act at
9the following rates:
10        15% of annual adjusted gross receipts up to and
11    including $25,000,000;
12        22.5% of annual adjusted gross receipts in excess of
13    $25,000,000 but not exceeding $50,000,000;
14        27.5% of annual adjusted gross receipts in excess of
15    $50,000,000 but not exceeding $75,000,000;
16        32.5% of annual adjusted gross receipts in excess of
17    $75,000,000 but not exceeding $100,000,000;
18        37.5% of annual adjusted gross receipts in excess of
19    $100,000,000 but not exceeding $150,000,000;
20        45% of annual adjusted gross receipts in excess of
21    $150,000,000 but not exceeding $200,000,000;
22        50% of annual adjusted gross receipts in excess of
23    $200,000,000.
24    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
25persons engaged in the business of conducting riverboat
26gambling operations, other than licensed managers conducting

 

 

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1riverboat gambling operations on behalf of the State, based on
2the adjusted gross receipts received by a licensed owner from
3gambling games authorized under this Act at the following
4rates:
5        15% of annual adjusted gross receipts up to and
6    including $25,000,000;
7        27.5% of annual adjusted gross receipts in excess of
8    $25,000,000 but not exceeding $37,500,000;
9        32.5% of annual adjusted gross receipts in excess of
10    $37,500,000 but not exceeding $50,000,000;
11        37.5% of annual adjusted gross receipts in excess of
12    $50,000,000 but not exceeding $75,000,000;
13        45% of annual adjusted gross receipts in excess of
14    $75,000,000 but not exceeding $100,000,000;
15        50% of annual adjusted gross receipts in excess of
16    $100,000,000 but not exceeding $250,000,000;
17        70% of annual adjusted gross receipts in excess of
18    $250,000,000.
19    An amount equal to the amount of wagering taxes collected
20under this subsection (a-3) that are in addition to the amount
21of wagering taxes that would have been collected if the
22wagering tax rates under subsection (a-2) were in effect shall
23be paid into the Common School Fund.
24    The privilege tax imposed under this subsection (a-3) shall
25no longer be imposed beginning on the earlier of (i) July 1,
262005; (ii) the first date after June 20, 2003 that riverboat

 

 

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1gambling operations are conducted pursuant to a dormant
2license; or (iii) the first day that riverboat gambling
3operations are conducted under the authority of an owners
4license that is in addition to the 10 owners licenses initially
5authorized under this Act. For the purposes of this subsection
6(a-3), the term "dormant license" means an owners license that
7is authorized by this Act under which no riverboat gambling
8operations are being conducted on June 20, 2003.
9    (a-4) Beginning on the first day on which the tax imposed
10under subsection (a-3) is no longer imposed, a privilege tax is
11imposed on persons engaged in the business of conducting
12riverboat gambling operations, other than licensed managers
13conducting riverboat gambling operations on behalf of the
14State, based on the adjusted gross receipts received by a
15licensed owner from gambling games authorized under this Act at
16the following rates:
17        15% of annual adjusted gross receipts up to and
18    including $25,000,000;
19        22.5% of annual adjusted gross receipts in excess of
20    $25,000,000 but not exceeding $50,000,000;
21        27.5% of annual adjusted gross receipts in excess of
22    $50,000,000 but not exceeding $75,000,000;
23        32.5% of annual adjusted gross receipts in excess of
24    $75,000,000 but not exceeding $100,000,000;
25        37.5% of annual adjusted gross receipts in excess of
26    $100,000,000 but not exceeding $150,000,000;

 

 

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1        45% of annual adjusted gross receipts in excess of
2    $150,000,000 but not exceeding $200,000,000;
3        50% of annual adjusted gross receipts in excess of
4    $200,000,000.
5    (a-8) Riverboat gambling operations conducted by a
6licensed manager on behalf of the State are not subject to the
7tax imposed under this Section.
8    (a-10) The taxes imposed by this Section shall be paid by
9the licensed owner to the Board not later than 5:00 o'clock
10p.m. of the day after the day when the wagers were made.
11    (a-15) If the privilege tax imposed under subsection (a-3)
12is no longer imposed pursuant to item (i) of the last paragraph
13of subsection (a-3), then by June 15 of each year, each owners
14licensee, other than an owners licensee that admitted 1,000,000
15persons or fewer in calendar year 2004, must, in addition to
16the payment of all amounts otherwise due under this Section,
17pay to the Board a reconciliation payment in the amount, if
18any, by which the licensed owner's base amount exceeds the
19amount of net privilege tax paid by the licensed owner to the
20Board in the then current State fiscal year. A licensed owner's
21net privilege tax obligation due for the balance of the State
22fiscal year shall be reduced up to the total of the amount paid
23by the licensed owner in its June 15 reconciliation payment.
24The obligation imposed by this subsection (a-15) is binding on
25any person, firm, corporation, or other entity that acquires an
26ownership interest in any such owners license. The obligation

 

 

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1imposed under this subsection (a-15) terminates on the earliest
2of: (i) July 1, 2007, (ii) the first day after the effective
3date of this amendatory Act of the 94th General Assembly that
4riverboat gambling operations are conducted pursuant to a
5dormant license, (iii) the first day that riverboat gambling
6operations are conducted under the authority of an owners
7license that is in addition to the 10 owners licenses initially
8authorized under this Act, or (iv) the first day that a
9licensee under the Illinois Horse Racing Act of 1975 conducts
10gaming operations with slot machines or other electronic gaming
11devices. The Board must reduce the obligation imposed under
12this subsection (a-15) by an amount the Board deems reasonable
13for any of the following reasons: (A) an act or acts of God,
14(B) an act of bioterrorism or terrorism or a bioterrorism or
15terrorism threat that was investigated by a law enforcement
16agency, or (C) a condition beyond the control of the owners
17licensee that does not result from any act or omission by the
18owners licensee or any of its agents and that poses a hazardous
19threat to the health and safety of patrons. If an owners
20licensee pays an amount in excess of its liability under this
21Section, the Board shall apply the overpayment to future
22payments required under this Section.
23    For purposes of this subsection (a-15):
24    "Act of God" means an incident caused by the operation of
25an extraordinary force that cannot be foreseen, that cannot be
26avoided by the exercise of due care, and for which no person

 

 

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1can be held liable.
2    "Base amount" means the following:
3        For a riverboat in Alton, $31,000,000.
4        For a riverboat in East Peoria, $43,000,000.
5        For the Empress riverboat in Joliet, $86,000,000.
6        For a riverboat in Metropolis, $45,000,000.
7        For the Harrah's riverboat in Joliet, $114,000,000.
8        For a riverboat in Aurora, $86,000,000.
9        For a riverboat in East St. Louis, $48,500,000.
10        For a riverboat in Elgin, $198,000,000.
11    "Dormant license" has the meaning ascribed to it in
12subsection (a-3).
13    "Net privilege tax" means all privilege taxes paid by a
14licensed owner to the Board under this Section, less all
15payments made from the State Gaming Fund pursuant to subsection
16(b) of this Section.
17    The changes made to this subsection (a-15) by Public Act
1894-839 are intended to restate and clarify the intent of Public
19Act 94-673 with respect to the amount of the payments required
20to be made under this subsection by an owners licensee to the
21Board.
22    (b) Until January 1, 1998, 25% of the tax revenue deposited
23in the State Gaming Fund under this Section shall be paid,
24subject to appropriation by the General Assembly, to the unit
25of local government which is designated as the home dock of the
26riverboat. Beginning January 1, 1998, from the tax revenue

 

 

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1deposited in the State Gaming Fund under this Section, an
2amount equal to 5% of adjusted gross receipts generated by a
3riverboat shall be paid monthly, subject to appropriation by
4the General Assembly, to the unit of local government that is
5designated as the home dock of the riverboat. From the tax
6revenue deposited in the State Gaming Fund pursuant to
7riverboat gambling operations conducted by a licensed manager
8on behalf of the State, an amount equal to 5% of adjusted gross
9receipts generated pursuant to those riverboat gambling
10operations shall be paid monthly, subject to appropriation by
11the General Assembly, to the unit of local government that is
12designated as the home dock of the riverboat upon which those
13riverboat gambling operations are conducted.
14    (b-5) Notwithstanding any other provision of this Act,
15payments under subsection (b) of this Section must be made in
16accordance with the provisions of this subsection (b-5).
17    On the first day of every month, the Comptroller must
18certify to the Board the mean delay in payment of valid
19reimbursement claims of health service providers. The Board
20must delay payments to units of local government under
21subsection (b) by the length of time certified by the
22Comptroller. Any interest on moneys held by the Board under
23this subsection (b-5) shall be transferred to the General
24Revenue Fund.
25    (c) Appropriations, as approved by the General Assembly,
26may be made from the State Gaming Fund to the Board (i) for the

 

 

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1administration and enforcement of this Act and the Video Gaming
2Act, (ii) for distribution to the Department of State Police
3and to the Department of Revenue for the enforcement of this
4Act, and (iii) to the Department of Human Services for the
5administration of programs to treat problem gambling.
6    (c-5) Before May 26, 2006 (the effective date of Public Act
794-804) and beginning on the effective date of this amendatory
8Act of the 95th General Assembly, unless any organization
9licensee under the Illinois Horse Racing Act of 1975 begins to
10operate a slot machine or video game of chance under the
11Illinois Horse Racing Act of 1975 or this Act, after the
12payments required under subsections (b) and (c) have been made,
13an amount equal to 15% of the adjusted gross receipts of (1) an
14owners licensee that relocates pursuant to Section 11.2, (2) an
15owners licensee conducting riverboat gambling operations
16pursuant to an owners license that is initially issued after
17June 25, 1999, or (3) the first riverboat gambling operations
18conducted by a licensed manager on behalf of the State under
19Section 7.3, whichever comes first, shall be paid from the
20State Gaming Fund into the Horse Racing Equity Fund.
21    (c-10) Each year the General Assembly shall appropriate
22from the General Revenue Fund to the Education Assistance Fund
23an amount equal to the amount paid into the Horse Racing Equity
24Fund pursuant to subsection (c-5) in the prior calendar year.
25    (c-15) After the payments required under subsections (b),
26(c), and (c-5) have been made, an amount equal to 2% of the

 

 

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1adjusted gross receipts of (1) an owners licensee that
2relocates pursuant to Section 11.2, (2) an owners licensee
3conducting riverboat gambling operations pursuant to an owners
4license that is initially issued after June 25, 1999, or (3)
5the first riverboat gambling operations conducted by a licensed
6manager on behalf of the State under Section 7.3, whichever
7comes first, shall be paid, subject to appropriation from the
8General Assembly, from the State Gaming Fund to each home rule
9county with a population of over 3,000,000 inhabitants for the
10purpose of enhancing the county's criminal justice system.
11    (c-20) Each year the General Assembly shall appropriate
12from the General Revenue Fund to the Education Assistance Fund
13an amount equal to the amount paid to each home rule county
14with a population of over 3,000,000 inhabitants pursuant to
15subsection (c-15) in the prior calendar year.
16    (c-25) After the payments required under subsections (b),
17(c), (c-5) and (c-15) have been made, an amount equal to 2% of
18the adjusted gross receipts of (1) an owners licensee that
19relocates pursuant to Section 11.2, (2) an owners licensee
20conducting riverboat gambling operations pursuant to an owners
21license that is initially issued after June 25, 1999, or (3)
22the first riverboat gambling operations conducted by a licensed
23manager on behalf of the State under Section 7.3, whichever
24comes first, shall be paid from the State Gaming Fund to
25Chicago State University.
26    (d) From time to time, the Board shall transfer the

 

 

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1remainder of the funds generated by this Act into the Education
2Assistance Fund, created by Public Act 86-0018, of the State of
3Illinois.
4    (e) Nothing in this Act shall prohibit the unit of local
5government designated as the home dock of the riverboat from
6entering into agreements with other units of local government
7in this State or in other states to share its portion of the
8tax revenue.
9    (f) To the extent practicable, the Board shall administer
10and collect the wagering taxes imposed by this Section in a
11manner consistent with the provisions of Sections 4, 5, 5a, 5b,
125c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
13Retailers' Occupation Tax Act and Section 3-7 of the Uniform
14Penalty and Interest Act.
15(Source: P.A. 95-331, eff. 8-21-07; 95-1008, eff. 12-15-08;
1696-37, eff. 7-13-09; 96-1392, eff. 1-1-11.)
 
17    (230 ILCS 10/23)  (from Ch. 120, par. 2423)
18    Sec. 23. The State Gaming Fund. On or after the effective
19date of this Act, except as provided for payments into the
20Horse Racing Equity Trust Fund under subsection (a) of Section
217 and as provided in subsection (b-5) of Section 13, all of the
22fees and taxes collected pursuant to this Act shall be
23deposited into the State Gaming Fund, a special fund in the
24State Treasury, which is hereby created. The adjusted gross
25receipts of any riverboat gambling operations conducted by a

 

 

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1licensed manager on behalf of the State remaining after the
2payment of the fees and expenses of the licensed manager shall
3be deposited into the State Gaming Fund. Fines and penalties
4collected pursuant to this Act shall be deposited into the
5Education Assistance Fund, created by Public Act 86-0018, of
6the State of Illinois.
7(Source: P.A. 93-28, eff. 6-20-03; 94-804, eff. 5-26-06.)