98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2843

 

Introduced , by Rep. David Harris

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 5/27.2 new
230 ILCS 10/7  from Ch. 120, par. 2407
230 ILCS 10/13.05 new
750 ILCS 28/56 new

    Amends the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, and the Income Withholding for Support Act. Provides that an organization licensee under the Illinois Horse Racing Act of 1975 shall withhold moneys from winning wagers and winnings from wagers placed upon races conducted by that organization licensee as provided in the Income Withholding for Support Act; imposes a similar duty on a licensed owner under the Riverboat Gambling Act with respect to winnings on games. Provides that if a licensed owner fails to withhold, from winnings otherwise payable to an individual, an amount representing delinquent child support as required under the Income Withholding for Support Act, the owner's license is not renewable upon its expiration, but the owner must instead apply for a new license. Provides that the Department of Healthcare and Family Services shall provide to each organization licensee under the Illinois Horse Racing Act of 1975 and each licensed owner under the Riverboat Gambling Act information concerning all individuals who are identified in the State Case Registry of child support orders and who have been determined to be delinquent in child support. Provides for: the obligations of an organization licensee or licensed owner; notice to the obligor; priority of claims; administrative appeals; enforcement; and immunity.


LRB098 09320 AMC 39460 b

 

 

A BILL FOR

 

HB2843LRB098 09320 AMC 39460 b

1    AN ACT concerning support.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Horse Racing Act of 1975 is amended
5by adding Section 27.2 as follows:
 
6    (230 ILCS 5/27.2 new)
7    Sec. 27.2. Withholding for support from winning wagers or
8winnings from wagers. An organization licensee shall withhold
9moneys from winning wagers and winnings from wagers placed upon
10races conducted by that organization licensee as provided in
11Section 56 of the Income Withholding for Support Act.
 
12    Section 10. The Riverboat Gambling Act is amended by
13changing Section 7 and by adding Section 13.05 as follows:
 
14    (230 ILCS 10/7)  (from Ch. 120, par. 2407)
15    Sec. 7. Owners Licenses.
16    (a) The Board shall issue owners licenses to persons, firms
17or corporations which apply for such licenses upon payment to
18the Board of the non-refundable license fee set by the Board,
19upon payment of a $25,000 license fee for the first year of
20operation and a $5,000 license fee for each succeeding year and
21upon a determination by the Board that the applicant is

 

 

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1eligible for an owners license pursuant to this Act and the
2rules of the Board. From the effective date of this amendatory
3Act of the 95th General Assembly until (i) 3 years after the
4effective date of this amendatory Act of the 95th General
5Assembly, (ii) the date any organization licensee begins to
6operate a slot machine or video game of chance under the
7Illinois Horse Racing Act of 1975 or this Act, (iii) the date
8that payments begin under subsection (c-5) of Section 13 of the
9Act, or (iv) the wagering tax imposed under Section 13 of this
10Act is increased by law to reflect a tax rate that is at least
11as stringent or more stringent than the tax rate contained in
12subsection (a-3) of Section 13, whichever occurs first, as a
13condition of licensure and as an alternative source of payment
14for those funds payable under subsection (c-5) of Section 13 of
15the Riverboat Gambling Act, any owners licensee that holds or
16receives its owners license on or after the effective date of
17this amendatory Act of the 94th General Assembly, other than an
18owners licensee operating a riverboat with adjusted gross
19receipts in calendar year 2004 of less than $200,000,000, must
20pay into the Horse Racing Equity Trust Fund, in addition to any
21other payments required under this Act, an amount equal to 3%
22of the adjusted gross receipts received by the owners licensee.
23The payments required under this Section shall be made by the
24owners licensee to the State Treasurer no later than 3:00
25o'clock p.m. of the day after the day when the adjusted gross
26receipts were received by the owners licensee. A person, firm

 

 

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1or corporation is ineligible to receive an owners license if:
2        (1) the person has been convicted of a felony under the
3    laws of this State, any other state, or the United States;
4        (2) the person has been convicted of any violation of
5    Article 28 of the Criminal Code of 1961 or the Criminal
6    Code of 2012, or substantially similar laws of any other
7    jurisdiction;
8        (3) the person has submitted an application for a
9    license under this Act which contains false information;
10        (4) the person is a member of the Board;
11        (5) a person defined in (1), (2), (3) or (4) is an
12    officer, director or managerial employee of the firm or
13    corporation;
14        (6) the firm or corporation employs a person defined in
15    (1), (2), (3) or (4) who participates in the management or
16    operation of gambling operations authorized under this
17    Act;
18        (7) (blank); or
19        (8) a license of the person, firm or corporation issued
20    under this Act, or a license to own or operate gambling
21    facilities in any other jurisdiction, has been revoked.
22    The Board is expressly prohibited from making changes to
23the requirement that licensees make payment into the Horse
24Racing Equity Trust Fund without the express authority of the
25Illinois General Assembly and making any other rule to
26implement or interpret this amendatory Act of the 95th General

 

 

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1Assembly. For the purposes of this paragraph, "rules" is given
2the meaning given to that term in Section 1-70 of the Illinois
3Administrative Procedure Act.
4    (b) In determining whether to grant an owners license to an
5applicant, the Board shall consider:
6        (1) the character, reputation, experience and
7    financial integrity of the applicants and of any other or
8    separate person that either:
9            (A) controls, directly or indirectly, such
10        applicant, or
11            (B) is controlled, directly or indirectly, by such
12        applicant or by a person which controls, directly or
13        indirectly, such applicant;
14        (2) the facilities or proposed facilities for the
15    conduct of riverboat gambling;
16        (3) the highest prospective total revenue to be derived
17    by the State from the conduct of riverboat gambling;
18        (4) the extent to which the ownership of the applicant
19    reflects the diversity of the State by including minority
20    persons, females, and persons with a disability and the
21    good faith affirmative action plan of each applicant to
22    recruit, train and upgrade minority persons, females, and
23    persons with a disability in all employment
24    classifications;
25        (5) the financial ability of the applicant to purchase
26    and maintain adequate liability and casualty insurance;

 

 

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1        (6) whether the applicant has adequate capitalization
2    to provide and maintain, for the duration of a license, a
3    riverboat;
4        (7) the extent to which the applicant exceeds or meets
5    other standards for the issuance of an owners license which
6    the Board may adopt by rule; and
7        (8) The amount of the applicant's license bid.
8    (c) Each owners license shall specify the place where
9riverboats shall operate and dock.
10    (d) Each applicant shall submit with his application, on
11forms provided by the Board, 2 sets of his fingerprints.
12    (e) The Board may issue up to 10 licenses authorizing the
13holders of such licenses to own riverboats. In the application
14for an owners license, the applicant shall state the dock at
15which the riverboat is based and the water on which the
16riverboat will be located. The Board shall issue 5 licenses to
17become effective not earlier than January 1, 1991. Three of
18such licenses shall authorize riverboat gambling on the
19Mississippi River, or, with approval by the municipality in
20which the riverboat was docked on August 7, 2003 and with Board
21approval, be authorized to relocate to a new location, in a
22municipality that (1) borders on the Mississippi River or is
23within 5 miles of the city limits of a municipality that
24borders on the Mississippi River and (2), on August 7, 2003,
25had a riverboat conducting riverboat gambling operations
26pursuant to a license issued under this Act; one of which shall

 

 

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1authorize riverboat gambling from a home dock in the city of
2East St. Louis. One other license shall authorize riverboat
3gambling on the Illinois River south of Marshall County. The
4Board shall issue one additional license to become effective
5not earlier than March 1, 1992, which shall authorize riverboat
6gambling on the Des Plaines River in Will County. The Board may
7issue 4 additional licenses to become effective not earlier
8than March 1, 1992. In determining the water upon which
9riverboats will operate, the Board shall consider the economic
10benefit which riverboat gambling confers on the State, and
11shall seek to assure that all regions of the State share in the
12economic benefits of riverboat gambling.
13    In granting all licenses, the Board may give favorable
14consideration to economically depressed areas of the State, to
15applicants presenting plans which provide for significant
16economic development over a large geographic area, and to
17applicants who currently operate non-gambling riverboats in
18Illinois. The Board shall review all applications for owners
19licenses, and shall inform each applicant of the Board's
20decision. The Board may grant an owners license to an applicant
21that has not submitted the highest license bid, but if it does
22not select the highest bidder, the Board shall issue a written
23decision explaining why another applicant was selected and
24identifying the factors set forth in this Section that favored
25the winning bidder.
26    In addition to any other revocation powers granted to the

 

 

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1Board under this Act, the Board may revoke the owners license
2of a licensee which fails to begin conducting gambling within
315 months of receipt of the Board's approval of the application
4if the Board determines that license revocation is in the best
5interests of the State.
6    (f) The first 10 owners licenses issued under this Act
7shall permit the holder to own up to 2 riverboats and equipment
8thereon for a period of 3 years after the effective date of the
9license. Holders of the first 10 owners licenses must pay the
10annual license fee for each of the 3 years during which they
11are authorized to own riverboats.
12    (g) Except as provided in Section 13.05, upon Upon the
13termination, expiration, or revocation of each of the first 10
14licenses, which shall be issued for a 3 year period, all
15licenses are renewable annually upon payment of the fee and a
16determination by the Board that the licensee continues to meet
17all of the requirements of this Act and the Board's rules.
18However, for licenses renewed on or after May 1, 1998, renewal
19shall be for a period of 4 years, unless the Board sets a
20shorter period.
21    (h) An owners license shall entitle the licensee to own up
22to 2 riverboats. A licensee shall limit the number of gambling
23participants to 1,200 for any such owners license. A licensee
24may operate both of its riverboats concurrently, provided that
25the total number of gambling participants on both riverboats
26does not exceed 1,200. Riverboats licensed to operate on the

 

 

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1Mississippi River and the Illinois River south of Marshall
2County shall have an authorized capacity of at least 500
3persons. Any other riverboat licensed under this Act shall have
4an authorized capacity of at least 400 persons.
5    (i) A licensed owner is authorized to apply to the Board
6for and, if approved therefor, to receive all licenses from the
7Board necessary for the operation of a riverboat, including a
8liquor license, a license to prepare and serve food for human
9consumption, and other necessary licenses. All use, occupation
10and excise taxes which apply to the sale of food and beverages
11in this State and all taxes imposed on the sale or use of
12tangible personal property apply to such sales aboard the
13riverboat.
14    (j) The Board may issue or re-issue a license authorizing a
15riverboat to dock in a municipality or approve a relocation
16under Section 11.2 only if, prior to the issuance or
17re-issuance of the license or approval, the governing body of
18the municipality in which the riverboat will dock has by a
19majority vote approved the docking of riverboats in the
20municipality. The Board may issue or re-issue a license
21authorizing a riverboat to dock in areas of a county outside
22any municipality or approve a relocation under Section 11.2
23only if, prior to the issuance or re-issuance of the license or
24approval, the governing body of the county has by a majority
25vote approved of the docking of riverboats within such areas.
26(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
 

 

 

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1    (230 ILCS 10/13.05 new)
2    Sec. 13.05. Withholding for support from gaming winnings;
3penalty for failure.
4    (a) A licensed owner shall withhold moneys from winnings on
5games as provided in Section 56 of the Income Withholding for
6Support Act.
7    (b) If a licensed owner, or an employee, agent, or
8representative of a licensed owner acting on the licensed
9owner's behalf, fails to withhold, from winnings otherwise
10payable to an individual, an amount representing delinquent
11child support as required under Section 56 of the Income
12Withholding for Support Act, the owner's license is not
13renewable under subsection (g) of Section 7 upon its
14expiration, but the owner must instead apply for a new license
15as provided in Sections 6 and 7.
 
16    Section 15. The Income Withholding for Support Act is
17amended by adding Section 56 as follows:
 
18    (750 ILCS 28/56 new)
19    Sec. 56. Withholding from gaming winnings.
20    (a) Delinquency information. The Department of Healthcare
21and Family Services shall provide to each organization licensee
22under the Illinois Horse Racing Act of 1975 and each licensed
23owner under the Riverboat Gambling Act information concerning

 

 

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1all individuals who are identified in the State Case Registry
2established pursuant to Section 10-27 of the Illinois Public
3Aid Code and who have been determined to be delinquent in the
4payment of child support. The information made available to a
5licensee under this Section about each individual obligor who
6has been determined to be delinquent in the payment of child
7support shall include appropriate information to identify the
8individual, the amount of the delinquency, and other
9information necessary for the organization licensee or
10licensed owner to remit payment of withheld amounts to the
11Department of Healthcare and Family Services as provided in
12this Section.
13    (b) Licensee's withholding obligations. If an organization
14licensee or an employee of an organization licensee under the
15Illinois Horse Racing Act of 1975, or a licensed owner or an
16employee of a licensed owner under the Riverboat Gambling Act,
17disburses winnings from wagers or a jackpot, exchange chips,
18tokens, or vouchers (hereinafter, collectively, "cash
19winnings") in the amount of $1,200 or more to a person
20identified pursuant to this Section in the State Case Registry
21as being delinquent in child support, the organization
22licensee, licensed owner, or employee:
23        (1) may deduct and retain an administrative fee in the
24    amount of 5% of the amount of delinquent child support
25    withheld under this Section or $250, whichever is less;
26        (2) shall withhold the amount of delinquent child

 

 

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1    support owed or so much of the delinquent child support
2    owed that is collectible from the winnings;
3        (3) shall transmit to the Department of Healthcare and
4    Family Services, within 7 business days after the date the
5    cash winnings were paid or claimed: the amount withheld
6    under this Section; identifying information, including the
7    full name, address, and social security number of the
8    obligor and the child support case identifier; the date and
9    amount of the cash winnings and the amount withheld; and
10    the name, location, and contact information of the
11    licensee; and
12        (4) shall issue to the obligor a receipt, in a form
13    prescribed by the Department of Healthcare and Family
14    Services, stating the total amount withheld from the cash
15    winnings for delinquent child support and the
16    administrative fee.
17    (c) Notice to obligor. The Department of Healthcare and
18Family Services shall provide written notice to the obligor, at
19the address provided by the organization licensee or licensed
20owner, that the Department intends to offset the obligor's
21delinquent child support with some or all of his or her cash
22winnings. The Department shall hold the amount withheld from
23the obligor's cash winnings for 10 business days after sending
24the written notice to the obligor before applying the amount as
25payment toward the obligor's delinquent child support.
26    (d) The delinquent child support required to be withheld

 

 

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1under this Section and the administrative fee authorized under
2this Section have priority over any secured or unsecured claim
3on cash winnings, except claims for federal or State taxes that
4are required to be withheld under federal or State law.
5    (e) Administrative appeal. The obligor may dispute the
6notice in subsection (c), as provided in Sections 10-12, 10-13,
7and 10-14 of the Illinois Public Aid Code and Sections 160.60
8and 160.61 of Title 89 of the Illinois Administrative Code.
9    (f) Enforcement. The Department of Healthcare and Family
10Services and the Illinois Gaming Board shall provide for
11enforcement of this Section by rule.
12    (g) Immunity. An organization licensee or licensed owner is
13immune from civil or criminal liability for acting in
14conformity with this Section or the rules applicable to a
15licensee under this Section.