Sen. Bill Cunningham

Filed: 3/25/2021

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 535

2    AMENDMENT NO. ______. Amend Senate Bill 535 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Administrative Procedure Act is
5amended by adding Section 5-45.8 as follows:
 
6    (5 ILCS 100/5-45.8 new)
7    Sec. 5-45.8. Emergency rulemaking; Illinois Gaming Board.
8To provide for the expeditious and timely implementation of
9subsection (f) of Section 5 of the Illinois Gambling Act,
10emergency rules implementing remedial measures to assist
11minorities, women, and persons with disabilities in the
12Illinois gaming industry may be adopted in accordance with
13Section 5-45 by the Illinois Gaming Board if, as a result of
14the study conducted under subsection (f) of Section 5 of the
15Illinois Gambling Act, the Illinois Gaming Board finds that
16there is a compelling interest in implementing remedial

 

 

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1measures. The adoption of emergency rules authorized by
2Section 5-45 and this Section is deemed to be necessary for the
3public interest, safety, and welfare.
4    This Section is repealed on January 1, 2029.
 
5    Section 10. The Illinois Gambling Act is amended by
6changing Sections 5 and 8 and by adding Section 8.1 as follows:
 
7    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
8    Sec. 5. Gaming Board.
9    (a) (1) There is hereby established the Illinois Gaming
10Board, which shall have the powers and duties specified in
11this Act, and all other powers necessary and proper to fully
12and effectively execute this Act for the purpose of
13administering, regulating, and enforcing the system of
14riverboat and casino gambling established by this Act and
15gaming pursuant to an organization gaming license issued under
16this Act. Its jurisdiction shall extend under this Act to
17every person, association, corporation, partnership and trust
18involved in riverboat and casino gambling operations and
19gaming pursuant to an organization gaming license issued under
20this Act in the State of Illinois.
21    (2) The Board shall consist of 5 members to be appointed by
22the Governor with the advice and consent of the Senate, one of
23whom shall be designated by the Governor to be chairperson.
24Each member shall have a reasonable knowledge of the practice,

 

 

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1procedure and principles of gambling operations. Each member
2shall either be a resident of Illinois or shall certify that he
3or she will become a resident of Illinois before taking
4office.
5    On and after the effective date of this amendatory Act of
6the 101st General Assembly, new appointees to the Board must
7include the following:
8        (A) One member who has received, at a minimum, a
9    bachelor's degree from an accredited school and at least
10    10 years of verifiable experience in the fields of
11    investigation and law enforcement.
12        (B) One member who is a certified public accountant
13    with experience in auditing and with knowledge of complex
14    corporate structures and transactions.
15        (C) One member who has 5 years' experience as a
16    principal, senior officer, or director of a company or
17    business with either material responsibility for the daily
18    operations and management of the overall company or
19    business or material responsibility for the policy making
20    of the company or business.
21        (D) One member who is an attorney licensed to practice
22    law in Illinois for at least 5 years.
23    Notwithstanding any provision of this subsection (a), the
24requirements of subparagraphs (A) through (D) of this
25paragraph (2) shall not apply to any person reappointed
26pursuant to paragraph (3).

 

 

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1    No more than 3 members of the Board may be from the same
2political party. No Board member shall, within a period of one
3year immediately preceding nomination, have been employed or
4received compensation or fees for services from a person or
5entity, or its parent or affiliate, that has engaged in
6business with the Board, a licensee, or a licensee under the
7Illinois Horse Racing Act of 1975. Board members must publicly
8disclose all prior affiliations with gaming interests,
9including any compensation, fees, bonuses, salaries, and other
10reimbursement received from a person or entity, or its parent
11or affiliate, that has engaged in business with the Board, a
12licensee, or a licensee under the Illinois Horse Racing Act of
131975. This disclosure must be made within 30 days after
14nomination but prior to confirmation by the Senate and must be
15made available to the members of the Senate.
16    (3) The terms of office of the Board members shall be 3
17years, except that the terms of office of the initial Board
18members appointed pursuant to this Act will commence from the
19effective date of this Act and run as follows: one for a term
20ending July 1, 1991, 2 for a term ending July 1, 1992, and 2
21for a term ending July 1, 1993. Upon the expiration of the
22foregoing terms, the successors of such members shall serve a
23term for 3 years and until their successors are appointed and
24qualified for like terms. Vacancies in the Board shall be
25filled for the unexpired term in like manner as original
26appointments. Each member of the Board shall be eligible for

 

 

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1reappointment at the discretion of the Governor with the
2advice and consent of the Senate.
3    (4) Each member of the Board shall receive $300 for each
4day the Board meets and for each day the member conducts any
5hearing pursuant to this Act. Each member of the Board shall
6also be reimbursed for all actual and necessary expenses and
7disbursements incurred in the execution of official duties.
8    (5) No person shall be appointed a member of the Board or
9continue to be a member of the Board who is, or whose spouse,
10child or parent is, a member of the board of directors of, or a
11person financially interested in, any gambling operation
12subject to the jurisdiction of this Board, or any race track,
13race meeting, racing association or the operations thereof
14subject to the jurisdiction of the Illinois Racing Board. No
15Board member shall hold any other public office. No person
16shall be a member of the Board who is not of good moral
17character or who has been convicted of, or is under indictment
18for, a felony under the laws of Illinois or any other state, or
19the United States.
20    (5.5) No member of the Board shall engage in any political
21activity. For the purposes of this Section, "political" means
22any activity in support of or in connection with any campaign
23for federal, State, or local elective office or any political
24organization, but does not include activities (i) relating to
25the support or opposition of any executive, legislative, or
26administrative action (as those terms are defined in Section 2

 

 

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1of the Lobbyist Registration Act), (ii) relating to collective
2bargaining, or (iii) that are otherwise in furtherance of the
3person's official State duties or governmental and public
4service functions.
5    (6) Any member of the Board may be removed by the Governor
6for neglect of duty, misfeasance, malfeasance, or nonfeasance
7in office or for engaging in any political activity.
8    (7) Before entering upon the discharge of the duties of
9his office, each member of the Board shall take an oath that he
10will faithfully execute the duties of his office according to
11the laws of the State and the rules and regulations adopted
12therewith and shall give bond to the State of Illinois,
13approved by the Governor, in the sum of $25,000. Every such
14bond, when duly executed and approved, shall be recorded in
15the office of the Secretary of State. Whenever the Governor
16determines that the bond of any member of the Board has become
17or is likely to become invalid or insufficient, he shall
18require such member forthwith to renew his bond, which is to be
19approved by the Governor. Any member of the Board who fails to
20take oath and give bond within 30 days from the date of his
21appointment, or who fails to renew his bond within 30 days
22after it is demanded by the Governor, shall be guilty of
23neglect of duty and may be removed by the Governor. The cost of
24any bond given by any member of the Board under this Section
25shall be taken to be a part of the necessary expenses of the
26Board.

 

 

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1    (7.5) For the examination of all mechanical,
2electromechanical, or electronic table games, slot machines,
3slot accounting systems, sports wagering systems, and other
4electronic gaming equipment, and the field inspection of such
5systems, games, and machines, for compliance with this Act,
6the Board shall utilize the services of independent outside
7testing laboratories that have been accredited in accordance
8with ISO/IEC 17025 by an accreditation body that is a
9signatory to the International Laboratory Accreditation
10Cooperation Mutual Recognition Agreement signifying they are
11qualified to perform such examinations. Notwithstanding any
12law to the contrary, the Board shall consider the licensing of
13independent outside testing laboratory applicants in
14accordance with procedures established by the Board by rule.
15The Board shall not withhold its approval of an independent
16outside testing laboratory license applicant that has been
17accredited as required under this paragraph (7.5) and is
18licensed in gaming jurisdictions comparable to Illinois. Upon
19the finalization of required rules, the Board shall license
20independent testing laboratories and accept the test reports
21of any licensed testing laboratory of the system's, game's, or
22machine manufacturer's choice, notwithstanding the existence
23of contracts between the Board and any independent testing
24laboratory.
25    (8) The Board shall employ such personnel as may be
26necessary to carry out its functions and shall determine the

 

 

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1salaries of all personnel, except those personnel whose
2salaries are determined under the terms of a collective
3bargaining agreement. No person shall be employed to serve the
4Board who is, or whose spouse, parent or child is, an official
5of, or has a financial interest in or financial relation with,
6any operator engaged in gambling operations within this State
7or any organization engaged in conducting horse racing within
8this State. For the one year immediately preceding employment,
9an employee shall not have been employed or received
10compensation or fees for services from a person or entity, or
11its parent or affiliate, that has engaged in business with the
12Board, a licensee, or a licensee under the Illinois Horse
13Racing Act of 1975. Any employee violating these prohibitions
14shall be subject to termination of employment.
15    (9) An Administrator shall perform any and all duties that
16the Board shall assign him. The salary of the Administrator
17shall be determined by the Board and, in addition, he shall be
18reimbursed for all actual and necessary expenses incurred by
19him in discharge of his official duties. The Administrator
20shall keep records of all proceedings of the Board and shall
21preserve all records, books, documents and other papers
22belonging to the Board or entrusted to its care. The
23Administrator shall devote his full time to the duties of the
24office and shall not hold any other office or employment.
25    (b) The Board shall have general responsibility for the
26implementation of this Act. Its duties include, without

 

 

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1limitation, the following:
2        (1) To decide promptly and in reasonable order all
3    license applications. Any party aggrieved by an action of
4    the Board denying, suspending, revoking, restricting or
5    refusing to renew a license may request a hearing before
6    the Board. A request for a hearing must be made to the
7    Board in writing within 5 days after service of notice of
8    the action of the Board. Notice of the action of the Board
9    shall be served either by personal delivery or by
10    certified mail, postage prepaid, to the aggrieved party.
11    Notice served by certified mail shall be deemed complete
12    on the business day following the date of such mailing.
13    The Board shall conduct any such hearings promptly and in
14    reasonable order;
15        (2) To conduct all hearings pertaining to civil
16    violations of this Act or rules and regulations
17    promulgated hereunder;
18        (3) To promulgate such rules and regulations as in its
19    judgment may be necessary to protect or enhance the
20    credibility and integrity of gambling operations
21    authorized by this Act and the regulatory process
22    hereunder;
23        (4) To provide for the establishment and collection of
24    all license and registration fees and taxes imposed by
25    this Act and the rules and regulations issued pursuant
26    hereto. All such fees and taxes shall be deposited into

 

 

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1    the State Gaming Fund;
2        (5) To provide for the levy and collection of
3    penalties and fines for the violation of provisions of
4    this Act and the rules and regulations promulgated
5    hereunder. All such fines and penalties shall be deposited
6    into the Education Assistance Fund, created by Public Act
7    86-0018, of the State of Illinois;
8        (6) To be present through its inspectors and agents
9    any time gambling operations are conducted on any
10    riverboat, in any casino, or at any organization gaming
11    facility for the purpose of certifying the revenue
12    thereof, receiving complaints from the public, and
13    conducting such other investigations into the conduct of
14    the gambling games and the maintenance of the equipment as
15    from time to time the Board may deem necessary and proper;
16        (7) To review and rule upon any complaint by a
17    licensee regarding any investigative procedures of the
18    State which are unnecessarily disruptive of gambling
19    operations. The need to inspect and investigate shall be
20    presumed at all times. The disruption of a licensee's
21    operations shall be proved by clear and convincing
22    evidence, and establish that: (A) the procedures had no
23    reasonable law enforcement purposes, and (B) the
24    procedures were so disruptive as to unreasonably inhibit
25    gambling operations;
26        (8) To hold at least one meeting each quarter of the

 

 

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1    fiscal year. In addition, special meetings may be called
2    by the Chairman or any 2 Board members upon 72 hours
3    written notice to each member. All Board meetings shall be
4    subject to the Open Meetings Act. Three members of the
5    Board shall constitute a quorum, and 3 votes shall be
6    required for any final determination by the Board. The
7    Board shall keep a complete and accurate record of all its
8    meetings. A majority of the members of the Board shall
9    constitute a quorum for the transaction of any business,
10    for the performance of any duty, or for the exercise of any
11    power which this Act requires the Board members to
12    transact, perform or exercise en banc, except that, upon
13    order of the Board, one of the Board members or an
14    administrative law judge designated by the Board may
15    conduct any hearing provided for under this Act or by
16    Board rule and may recommend findings and decisions to the
17    Board. The Board member or administrative law judge
18    conducting such hearing shall have all powers and rights
19    granted to the Board in this Act. The record made at the
20    time of the hearing shall be reviewed by the Board, or a
21    majority thereof, and the findings and decision of the
22    majority of the Board shall constitute the order of the
23    Board in such case;
24        (9) To maintain records which are separate and
25    distinct from the records of any other State board or
26    commission. Such records shall be available for public

 

 

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1    inspection and shall accurately reflect all Board
2    proceedings;
3        (10) To file a written annual report with the Governor
4    on or before July 1 each year and such additional reports
5    as the Governor may request. The annual report shall
6    include a statement of receipts and disbursements by the
7    Board, actions taken by the Board, and any additional
8    information and recommendations which the Board may deem
9    valuable or which the Governor may request;
10        (11) (Blank);
11        (12) (Blank);
12        (13) To assume responsibility for administration and
13    enforcement of the Video Gaming Act;
14        (13.1) To assume responsibility for the administration
15    and enforcement of operations at organization gaming
16    facilities pursuant to this Act and the Illinois Horse
17    Racing Act of 1975;
18        (13.2) To assume responsibility for the administration
19    and enforcement of the Sports Wagering Act; and
20        (14) To adopt, by rule, a code of conduct governing
21    Board members and employees that ensure, to the maximum
22    extent possible, that persons subject to this Code avoid
23    situations, relationships, or associations that may
24    represent or lead to a conflict of interest.
25    Internal controls and changes submitted by licensees must
26be reviewed and either approved or denied with cause within 90

 

 

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1days after receipt of submission is deemed final by the
2Illinois Gaming Board. In the event an internal control
3submission or change does not meet the standards set by the
4Board, staff of the Board must provide technical assistance to
5the licensee to rectify such deficiencies within 90 days after
6the initial submission and the revised submission must be
7reviewed and approved or denied with cause within 90 days
8after the date the revised submission is deemed final by the
9Board. For the purposes of this paragraph, "with cause" means
10that the approval of the submission would jeopardize the
11integrity of gaming. In the event the Board staff has not acted
12within the timeframe, the submission shall be deemed approved.
13    (c) The Board shall have jurisdiction over and shall
14supervise all gambling operations governed by this Act. The
15Board shall have all powers necessary and proper to fully and
16effectively execute the provisions of this Act, including, but
17not limited to, the following:
18        (1) To investigate applicants and determine the
19    eligibility of applicants for licenses and to select among
20    competing applicants the applicants which best serve the
21    interests of the citizens of Illinois.
22        (2) To have jurisdiction and supervision over all
23    riverboat gambling operations authorized under this Act
24    and all persons in places where gambling operations are
25    conducted.
26        (3) To promulgate rules and regulations for the

 

 

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1    purpose of administering the provisions of this Act and to
2    prescribe rules, regulations and conditions under which
3    all gambling operations subject to this Act shall be
4    conducted. Such rules and regulations are to provide for
5    the prevention of practices detrimental to the public
6    interest and for the best interests of riverboat gambling,
7    including rules and regulations regarding the inspection
8    of organization gaming facilities, casinos, and
9    riverboats, and the review of any permits or licenses
10    necessary to operate a riverboat, casino, or organization
11    gaming facility under any laws or regulations applicable
12    to riverboats, casinos, or organization gaming facilities
13    and to impose penalties for violations thereof.
14        (4) To enter the office, riverboats, casinos,
15    organization gaming facilities, and other facilities, or
16    other places of business of a licensee, where evidence of
17    the compliance or noncompliance with the provisions of
18    this Act is likely to be found.
19        (5) To investigate alleged violations of this Act or
20    the rules of the Board and to take appropriate
21    disciplinary action against a licensee or a holder of an
22    occupational license for a violation, or institute
23    appropriate legal action for enforcement, or both.
24        (6) To adopt standards for the licensing of all
25    persons and entities under this Act, as well as for
26    electronic or mechanical gambling games, and to establish

 

 

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1    fees for such licenses.
2        (7) To adopt appropriate standards for all
3    organization gaming facilities, riverboats, casinos, and
4    other facilities authorized under this Act.
5        (8) To require that the records, including financial
6    or other statements of any licensee under this Act, shall
7    be kept in such manner as prescribed by the Board and that
8    any such licensee involved in the ownership or management
9    of gambling operations submit to the Board an annual
10    balance sheet and profit and loss statement, list of the
11    stockholders or other persons having a 1% or greater
12    beneficial interest in the gambling activities of each
13    licensee, and any other information the Board deems
14    necessary in order to effectively administer this Act and
15    all rules, regulations, orders and final decisions
16    promulgated under this Act.
17        (9) To conduct hearings, issue subpoenas for the
18    attendance of witnesses and subpoenas duces tecum for the
19    production of books, records and other pertinent documents
20    in accordance with the Illinois Administrative Procedure
21    Act, and to administer oaths and affirmations to the
22    witnesses, when, in the judgment of the Board, it is
23    necessary to administer or enforce this Act or the Board
24    rules.
25        (10) To prescribe a form to be used by any licensee
26    involved in the ownership or management of gambling

 

 

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1    operations as an application for employment for their
2    employees.
3        (11) To revoke or suspend licenses, as the Board may
4    see fit and in compliance with applicable laws of the
5    State regarding administrative procedures, and to review
6    applications for the renewal of licenses. The Board may
7    suspend an owners license or an organization gaming
8    license without notice or hearing upon a determination
9    that the safety or health of patrons or employees is
10    jeopardized by continuing a gambling operation conducted
11    under that license. The suspension may remain in effect
12    until the Board determines that the cause for suspension
13    has been abated. The Board may revoke an owners license or
14    organization gaming license upon a determination that the
15    licensee has not made satisfactory progress toward abating
16    the hazard.
17        (12) To eject or exclude or authorize the ejection or
18    exclusion of, any person from gambling facilities where
19    that person is in violation of this Act, rules and
20    regulations thereunder, or final orders of the Board, or
21    where such person's conduct or reputation is such that his
22    or her presence within the gambling facilities may, in the
23    opinion of the Board, call into question the honesty and
24    integrity of the gambling operations or interfere with the
25    orderly conduct thereof; provided that the propriety of
26    such ejection or exclusion is subject to subsequent

 

 

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1    hearing by the Board.
2        (13) To require all licensees of gambling operations
3    to utilize a cashless wagering system whereby all players'
4    money is converted to tokens, electronic cards, or chips
5    which shall be used only for wagering in the gambling
6    establishment.
7        (14) (Blank).
8        (15) To suspend, revoke or restrict licenses, to
9    require the removal of a licensee or an employee of a
10    licensee for a violation of this Act or a Board rule or for
11    engaging in a fraudulent practice, and to impose civil
12    penalties of up to $5,000 against individuals and up to
13    $10,000 or an amount equal to the daily gross receipts,
14    whichever is larger, against licensees for each violation
15    of any provision of the Act, any rules adopted by the
16    Board, any order of the Board or any other action which, in
17    the Board's discretion, is a detriment or impediment to
18    gambling operations.
19        (16) To hire employees to gather information, conduct
20    investigations and carry out any other tasks contemplated
21    under this Act.
22        (17) To establish minimum levels of insurance to be
23    maintained by licensees.
24        (18) To authorize a licensee to sell or serve
25    alcoholic liquors, wine or beer as defined in the Liquor
26    Control Act of 1934 on board a riverboat or in a casino and

 

 

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1    to have exclusive authority to establish the hours for
2    sale and consumption of alcoholic liquor on board a
3    riverboat or in a casino, notwithstanding any provision of
4    the Liquor Control Act of 1934 or any local ordinance, and
5    regardless of whether the riverboat makes excursions. The
6    establishment of the hours for sale and consumption of
7    alcoholic liquor on board a riverboat or in a casino is an
8    exclusive power and function of the State. A home rule
9    unit may not establish the hours for sale and consumption
10    of alcoholic liquor on board a riverboat or in a casino.
11    This subdivision (18) is a denial and limitation of home
12    rule powers and functions under subsection (h) of Section
13    6 of Article VII of the Illinois Constitution.
14        (19) After consultation with the U.S. Army Corps of
15    Engineers, to establish binding emergency orders upon the
16    concurrence of a majority of the members of the Board
17    regarding the navigability of water, relative to
18    excursions, in the event of extreme weather conditions,
19    acts of God or other extreme circumstances.
20        (20) To delegate the execution of any of its powers
21    under this Act for the purpose of administering and
22    enforcing this Act and the rules adopted by the Board.
23        (20.5) To approve any contract entered into on its
24    behalf.
25        (20.6) To appoint investigators to conduct
26    investigations, searches, seizures, arrests, and other

 

 

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1    duties imposed under this Act, as deemed necessary by the
2    Board. These investigators have and may exercise all of
3    the rights and powers of peace officers, provided that
4    these powers shall be limited to offenses or violations
5    occurring or committed in a casino, in an organization
6    gaming facility, or on a riverboat or dock, as defined in
7    subsections (d) and (f) of Section 4, or as otherwise
8    provided by this Act or any other law.
9        (20.7) To contract with the Department of State Police
10    for the use of trained and qualified State police officers
11    and with the Department of Revenue for the use of trained
12    and qualified Department of Revenue investigators to
13    conduct investigations, searches, seizures, arrests, and
14    other duties imposed under this Act and to exercise all of
15    the rights and powers of peace officers, provided that the
16    powers of Department of Revenue investigators under this
17    subdivision (20.7) shall be limited to offenses or
18    violations occurring or committed in a casino, in an
19    organization gaming facility, or on a riverboat or dock,
20    as defined in subsections (d) and (f) of Section 4, or as
21    otherwise provided by this Act or any other law. In the
22    event the Department of State Police or the Department of
23    Revenue is unable to fill contracted police or
24    investigative positions, the Board may appoint
25    investigators to fill those positions pursuant to
26    subdivision (20.6).

 

 

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1        (21) To adopt rules concerning the conduct of gaming
2    pursuant to an organization gaming license issued under
3    this Act.
4        (22) To have the same jurisdiction and supervision
5    over casinos and organization gaming facilities as the
6    Board has over riverboats, including, but not limited to,
7    the power to (i) investigate, review, and approve
8    contracts as that power is applied to riverboats, (ii)
9    adopt rules for administering the provisions of this Act,
10    (iii) adopt standards for the licensing of all persons
11    involved with a casino or organization gaming facility,
12    (iv) investigate alleged violations of this Act by any
13    person involved with a casino or organization gaming
14    facility, and (v) require that records, including
15    financial or other statements of any casino or
16    organization gaming facility, shall be kept in such manner
17    as prescribed by the Board.
18        (23) To take any other action as may be reasonable or
19    appropriate to enforce this Act and the rules adopted by
20    the Board.
21    (d) The Board may seek and shall receive the cooperation
22of the Department of State Police in conducting background
23investigations of applicants and in fulfilling its
24responsibilities under this Section. Costs incurred by the
25Department of State Police as a result of such cooperation
26shall be paid by the Board in conformance with the

 

 

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1requirements of Section 2605-400 of the Department of State
2Police Law.
3    (e) The Board must authorize to each investigator and to
4any other employee of the Board exercising the powers of a
5peace officer a distinct badge that, on its face, (i) clearly
6states that the badge is authorized by the Board and (ii)
7contains a unique identifying number. No other badge shall be
8authorized by the Board.
9    (f) On or before July 1, 2022, the Board shall submit to
10the General Assembly and publish on its website a diversity
11study. The diversity study shall determine whether there is a
12compelling interest in implementing remedial measures,
13including the application of the Business Enterprise Program
14under the Business Enterprise for Minorities, Women, and
15Persons with Disabilities Act or a similar program, to assist
16minorities, women, and persons with disabilities in the
17Illinois gaming industry. Additionally, the study shall
18evaluate race-neutral and gender-neutral programs or other
19methods that may be used to address the needs of minority
20applicants, women applicants, applicants with disabilities,
21minority-owned businesses, women-owned businesses, and
22businesses owned by persons with disabilities seeking to
23participate in any gambling or gaming under the Illinois
24Gambling Act, the Video Gaming Act, or the Sports Wagering
25Act.
26    If, as a result of the study conducted under this

 

 

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1subsection (f), the Board finds that there is a compelling
2interest in implementing remedial measures, the Board may
3adopt rules, including emergency rules, to implement remedial
4measures, if necessary and to the extent permitted by State
5and federal law, based on the findings of the study conducted
6under this subsection (f).
7(Source: P.A. 100-1152, eff. 12-14-18; 101-31, eff. 6-28-19.)
 
8    (230 ILCS 10/8)  (from Ch. 120, par. 2408)
9    Sec. 8. Suppliers licenses.
10    (a) The Board may issue a suppliers license to such
11persons, firms or corporations which apply therefor upon the
12payment of a non-refundable application fee set by the Board,
13upon a determination by the Board that the applicant is
14eligible for a suppliers license and upon payment of a $5,000
15annual license fee. At the time of application for a supplier
16license under this Act, a person that holds a license as a
17manufacturer, distributor, or supplier under the Video Gaming
18Act or a supplier license under the Sports Wagering Act shall
19be entitled to licensure under this Act as a supplier without
20additional Board investigation or approval, except by vote of
21the Board; however, the applicant shall pay all fees required
22for a suppliers license under this Act.
23    (a-5) Except as provided by Section 8.1, the initial
24suppliers license shall be issued for 4 years. Thereafter, the
25license may be renewed for additional 4-year periods unless

 

 

10200SB0535sam001- 23 -LRB102 05176 SMS 23573 a

1sooner cancelled or terminated.
2    (b) The holder of a suppliers license is authorized to
3sell or lease, and to contract to sell or lease, gambling
4equipment and supplies to any licensee involved in the
5ownership or management of gambling operations.
6    (c) Gambling supplies and equipment may not be distributed
7unless supplies and equipment conform to standards adopted by
8rules of the Board.
9    (d) A person, firm or corporation is ineligible to receive
10a suppliers license if:
11        (1) the person has been convicted of a felony under
12    the laws of this State, any other state, or the United
13    States;
14        (2) the person has been convicted of any violation of
15    Article 28 of the Criminal Code of 1961 or the Criminal
16    Code of 2012, or substantially similar laws of any other
17    jurisdiction;
18        (3) the person has submitted an application for a
19    license under this Act which contains false information;
20        (4) the person is a member of the Board;
21        (5) the entity is one in which a person defined in (1),
22    (2), (3) or (4), is an officer, director or managerial
23    employee;
24        (6) the firm or corporation employs a person who
25    participates in the management or operation of gambling
26    authorized under this Act;

 

 

10200SB0535sam001- 24 -LRB102 05176 SMS 23573 a

1        (7) the license of the person, firm or corporation
2    issued under this Act, or a license to own or operate
3    gambling facilities in any other jurisdiction, has been
4    revoked.
5    (e) Any person that supplies any equipment, devices, or
6supplies to a licensed gambling operation must first obtain a
7suppliers license. A supplier shall furnish to the Board a
8list of all equipment, devices and supplies offered for sale
9or lease in connection with gambling games authorized under
10this Act. A supplier shall keep books and records for the
11furnishing of equipment, devices and supplies to gambling
12operations separate and distinct from any other business that
13the supplier might operate. A supplier shall file a quarterly
14return with the Board listing all sales and leases. A supplier
15shall permanently affix its name or a distinctive logo or
16other mark or design element identifying the manufacturer or
17supplier to all its equipment, devices, and supplies, except
18gaming chips without a value impressed, engraved, or imprinted
19on it, for gambling operations. The Board may waive this
20requirement for any specific product or products if it
21determines that the requirement is not necessary to protect
22the integrity of the game. Items purchased from a licensed
23supplier may continue to be used even though the supplier
24subsequently changes its name, distinctive logo, or other mark
25or design element; undergoes a change in ownership; or ceases
26to be licensed as a supplier for any reason. Any supplier's

 

 

10200SB0535sam001- 25 -LRB102 05176 SMS 23573 a

1equipment, devices or supplies which are used by any person in
2an unauthorized gambling operation shall be forfeited to the
3State. A holder of an owners license or an organization gaming
4license may own its own equipment, devices and supplies. Each
5holder of an owners license or an organization gaming license
6under the Act shall file an annual report listing its
7inventories of gambling equipment, devices and supplies.
8    (f) Any person who knowingly makes a false statement on an
9application is guilty of a Class A misdemeanor.
10    (g) Any gambling equipment, devices and supplies provided
11by any licensed supplier may either be repaired on the
12riverboat, in the casino, or at the organization gaming
13facility or removed from the riverboat, casino, or
14organization gaming facility to a facility owned by the holder
15of an owners license, organization gaming license, or
16suppliers license for repair.
17(Source: P.A. 101-31, eff. 6-28-19.)
 
18    (230 ILCS 10/8.1 new)
19    Sec. 8.1. Harmonization of supplier category licenses.
20    (a) As used in this Section, "supplier category license"
21means a suppliers license issued under this Act, a supplier
22license issued under the Sports Wagering Act, or a
23manufacturer, distributor, or supplier license issued under
24the Video Gaming Act.
25    (b) If a holder of any supplier category license is

 

 

10200SB0535sam001- 26 -LRB102 05176 SMS 23573 a

1granted an additional supplier category license, the initial
2period of the new supplier category license shall expire at
3the earliest expiration date of any other supplier category
4license held by the licensee. If a licensee holds multiple
5supplier category licenses on the effective date of this
6amendatory Act of the 102nd General Assembly, all supplier
7category licenses shall expire at the earliest expiration date
8of any of the supplier category licenses held by the licensee.
 
9    Section 15. The Video Gaming Act is amended by changing
10Section 50 as follows:
 
11    (230 ILCS 40/50)
12    Sec. 50. Distribution of license fees.
13    (a) All fees collected under Section 45 shall be deposited
14into the State Gaming Fund.
15    (b) Fees collected under Section 45 shall be used as
16follows:
17        (1) Twenty-five percent shall be paid, subject to
18    appropriation by the General Assembly, to the Department
19    of Human Services for administration of programs for the
20    treatment of compulsive gambling.
21        (2) Seventy-five percent shall be used for the
22    administration of this Act.
23    (c) All initial terminal handler, technician, licensed
24establishment, licensed truck stop establishment, licensed

 

 

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1large truck establishment, licensed fraternal establishment,
2and licensed fraternal establishment licenses issued by the
3Board under this Act shall be issued for 2 years and are
4renewable for additional 2-year periods annually unless sooner
5cancelled or terminated. Except as provided by Section 8.1 of
6the Illinois Gambling Act, all initial manufacturer,
7distributor, supplier, and terminal operator licenses issued
8by the Board under this Act shall be issued for 4 years and are
9renewable for additional 4-year periods unless sooner
10cancelled or terminated. No license issued under this Act is
11transferable or assignable.
12(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
13    Section 20. The Sports Wagering Act is amended by changing
14Section 25-50 as follows:
 
15    (230 ILCS 45/25-50)
16    Sec. 25-50. Supplier license.
17    (a) The Board may issue a supplier license to a person to
18sell or lease sports wagering equipment, systems, or other
19gaming items to conduct sports wagering and offer services
20related to the equipment or other gaming items and data to a
21master sports wagering licensee while the license is active.
22    (b) The Board may adopt rules establishing additional
23requirements for a supplier and any system or other equipment
24utilized for sports wagering. The Board may accept licensing

 

 

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1by another jurisdiction that it specifically determines to
2have similar licensing requirements as evidence the applicant
3meets supplier licensing requirements.
4    (c) An applicant for a supplier license shall demonstrate
5that the equipment, system, or services that the applicant
6plans to offer to the master sports wagering licensee conforms
7to standards established by the Board and applicable State
8law. The Board may accept approval by another jurisdiction
9that it specifically determines have similar equipment
10standards as evidence the applicant meets the standards
11established by the Board and applicable State law.
12    (d) Applicants shall pay to the Board a nonrefundable
13license and application fee in the amount of $150,000. Except
14as provided by Section 8.1 of the Illinois Gambling Act, the
15initial supplier license shall be issued for 4 years unless
16sooner cancelled or terminated. After the initial period
174-year term, the Board shall renew supplier licenses for
18additional 4-year periods unless sooner cancelled or
19terminated annually thereafter. Renewal of a supplier license
20shall be granted to a renewal applicant who has continued to
21comply with all applicable statutory and regulatory
22requirements, upon submission of the Board-issued renewal form
23and payment of a $150,000 renewal fee. Beginning 4 years after
24issuance of the initial supplier license, a holder of a
25supplier license shall pay a $150,000 annual license fee.
26    (e) A supplier shall submit to the Board a list of all

 

 

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1sports wagering equipment and services sold, delivered, or
2offered to a master sports wagering licensee in this State, as
3required by the Board, all of which must be tested and approved
4by an independent testing laboratory approved by the Board. A
5master sports wagering licensee may continue to use supplies
6acquired from a licensed supplier, even if a supplier's
7license expires or is otherwise canceled, unless the Board
8finds a defect in the supplies.
9(Source: P.A. 101-31, eff. 6-28-19.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law, except that Section 5 takes effect July 1,
122022.".