HB4112 95TH GENERAL ASSEMBLY

LRB095 12405 AMC 37467 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4112

Introduced 5/31/2007, by Rep. Michael J. Madigan - Tom Cross

SYNOPSIS AS INTRODUCED:

230 ILCS 10/7	from Ch. 120, par. 2407
230 ILCS 10/13	from Ch. 120, par. 2413
30 ILCS 105/5.675 new

Amends the Riverboat Gambling Act. Provides that the Illinois Gaming Board shall offer a total of 6,000 gaming positions, in blocks of 250 each, pursuant to an open and competitive bidding process. Provides that any person may bid and be awarded the gaming positions, regardless of whether the person is an owners licensee under the Act, but a gaming position so acquired must be in use on the riverboat of an existing licensee within 2 years after the purchase of the gaming position or the gaming position reverts back to the Board, and the Board may re-issue the gaming position in the same manner. Sets forth criteria under which a person may be ineligible for positions. Provides that a person who knowingly makes a false statement on an application to obtain a position is guilty of a Class A misdemeanor. Allows for the sale, lease, or transfer of positions, subject to Board approval of the purchaser or transferee and the terms of the sale, lease, or transfer. Provides that all tax revenues attributable to the adjusted gross receipts of those positions shall be deposited into the Building Illinois for Tomorrow Fund. Requires owners licensees to pay into the Horse Racing Equity Trust Fund an amount equal to 1% of adjusted gross receipts from the new positions. Makes other changes. Amends the State Finance Act to create the Build Illinois for Tomorrow Fund. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning gaming.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Riverboat Gambling Act is amended by changing Sections 7 and 13 as follows:

(230 ILCS 10/7) (from Ch. 120, par. 2407)

Sec. 7. Owners Licenses.

(a) The Board shall issue owners licenses to persons, firms or corporations which apply for such licenses upon payment to the Board of the non-refundable license fee set by the Board, upon payment of a $25,000 license fee for the first year of operation and a $5,000 license fee for each succeeding year and upon a determination by the Board that the applicant is eligible for an owners license pursuant to this Act and the rules of the Board. From May 26, 2006 ( For a period of 2 years beginning on the effective date of Public Act 94-804) until the effective date of this amendatory Act of the 95th General Assembly this amendatory Act of the 94th General Assembly, as a condition of licensure and as an alternative source of payment for those funds payable under subsection (c-5) of Section 13 of the Riverboat Gambling Act, any owners licensee that holds or receives its owners license on or after the effective date of this amendatory Act of the 94th General Assembly, other than an owners licensee operating a riverboat with adjusted gross receipts in calendar year 2004 of less than $200,000,000, must pay into the Horse Racing Equity Trust Fund, in addition to any other payments required under this Act, an amount equal to 3% of the adjusted gross receipts received by the owners licensee. Beginning on the effective date of this amendatory Act of the 95th General Assembly, as a condition of licensure and as an alternative source of payment for those funds available under subsection (c-5) of Section 13, any owners licensee that holds its owners license on or after the effective date of this amendatory Act of the 95th General Assembly must pay into the Horse Racing Equity Trust Fund, in addition to any other payments required under this Act, an amount equal to 1% of adjusted gross receipts from positions authorized under subsection (h-5) of this Section. The adjusted gross receipts of a licensed owner payable into the Horse Racing Equity Trust Fund shall be computed for any tax reporting period in the following manner: the number of positions of the licensed owner initially offered by the Board under the authority of subsection (h-5) of Section 7 shall be divided by the total number of positions of the licensed owner, and this number shall be multiplied by the total adjusted gross receipts of the licensed owner during the tax reporting period.

The payments required under this Section shall be made by the owners licensee to the State Treasurer no later than 3:00 o'clock p.m. of the day after the day when the adjusted gross receipts were received by the owners licensee. A person, firm or corporation is ineligible to receive an owners license if:

(1) the person has been convicted of a felony under the laws of this State, any other state, or the United States;

(2) the person has been convicted of any violation of Article 28 of the Criminal Code of 1961, or substantially similar laws of any other jurisdiction;

(3) the person has submitted an application for a license under this Act which contains false information;

(4) the person is a member of the Board;

(5) a person defined in (1), (2), (3) or (4) is an officer, director or managerial employee of the firm or corporation;

(6) the firm or corporation employs a person defined in (1), (2), (3) or (4) who participates in the management or operation of gambling operations authorized under this Act;

(7) (blank); or

(8) a license of the person, firm or corporation issued under this Act, or a license to own or operate gambling facilities in any other jurisdiction, has been revoked.

(b) In determining whether to grant an owners license to an applicant, the Board shall consider:

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

(A) controls, directly or indirectly, such applicant, or

(B) is controlled, directly or indirectly, by such applicant or by a person which controls, directly or indirectly, such applicant;

(2) the facilities or proposed facilities for the conduct of riverboat gambling;

(3) the highest prospective total revenue to be derived by the State from the conduct of riverboat gambling;

(4) the extent to which the ownership of the applicant reflects the diversity of the State by including minority persons and females and the good faith affirmative action plan of each applicant to recruit, train and upgrade minority persons and females in all employment classifications;

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

(6) whether the applicant has adequate capitalization to provide and maintain, for the duration of a license, a riverboat;

(7) the extent to which the applicant exceeds or meets other standards for the issuance of an owners license which the Board may adopt by rule; and

(8) The amount of the applicant's license bid.

(c) Each owners license shall specify the place where riverboats shall operate and dock.

(d) Each applicant shall submit with his application, on forms provided by the Board, 2 sets of his fingerprints.

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

In granting all licenses, the Board may give favorable consideration to economically depressed areas of the State, to applicants presenting plans which provide for significant economic development over a large geographic area, and to applicants who currently operate non-gambling riverboats in Illinois. The Board shall review all applications for owners licenses, and shall inform each applicant of the Board's decision. The Board may grant an owners license to an applicant that has not submitted the highest license bid, but if it does not select the highest bidder, the Board shall issue a written decision explaining why another applicant was selected and identifying the factors set forth in this Section that favored the winning bidder.

In addition to any other revocation powers granted to the Board under this Act, the Board may revoke the owners license of a licensee which fails to begin conducting gambling within 15 months of receipt of the Board's approval of the application if the Board determines that license revocation is in the best interests of the State.

(f) The first 10 owners licenses issued under this Act shall permit the holder to own up to 2 riverboats and equipment thereon for a period of 3 years after the effective date of the license. Holders of the first 10 owners licenses must pay the annual license fee for each of the 3 years during which they are authorized to own riverboats.

(g) Upon the termination, expiration, or revocation of each of the first 10 licenses, which shall be issued for a 3 year period, all licenses are renewable annually upon payment of the fee and a determination by the Board that the licensee continues to meet all of the requirements of this Act and the Board's rules. However, for licenses renewed on or after May 1, 1998, renewal shall be for a period of 4 years, unless the Board sets a shorter period.

(h) An owners license shall entitle the licensee to own up to 2 riverboats. A licensee shall limit the number of gaming positions gambling participants to 1,200 for any such owners license, plus any gaming positions acquired as a result of subsection (h-5). A licensee may operate both of its riverboats concurrently, provided that the total number of gaming positions gambling participants on both riverboats does not exceed those gaming positions authorized under this subsection (h) and subsection (h-5) 1,200. Riverboats licensed to operate on the Mississippi River and the Illinois River south of Marshall County shall have an authorized capacity of at least 500 persons. Any other riverboat licensed under this Act shall have an authorized capacity of at least 400 persons.

(h-5) As soon as practical after the effective date of this amendatory Act of the 95th General Assembly, the Board shall offer a total of 6,000 gaming positions, in blocks of 250 each, pursuant to an open and competitive bidding process. All persons whose applications to bid are accepted by the Board under subsection (h-6) may participate in the bidding process. At each bidding level, the Board shall publicly disclose the names of the bidders and their venture partners. The bidding process shall occur promptly after the Board has approved or disapproved as a bidder all persons that have timely submitted their names to the Board as provided by subsection (h-6). The Board shall promulgate emergency rules and establish procedures governing the bidding process. Any person may bid and be awarded the gaming positions, regardless of whether the person is an owners licensee under this Act. However, a gaming position acquired under this subsection must be in use on the riverboat of an owners licensee within 2 years after the purchase of the gaming position or the gaming position reverts back to the Board, and the Board may re-issue the gaming position pursuant to the process provided in this subsection (h-5). Once the gaming position is in use on a riverboat, the gaming position shall be treated as any other gaming position on the riverboat for the purposes of regulation and computation of adjusted gross receipts under this Act. Payment for all gaming positions sold under this subsection shall be made to the Board within 90 days after the date of a successful bid. Except as provided in subsection (h-8), a person who purchases a gaming position that is not in use on the riverboat of an existing licensee within 2 years after the purchase of the gaming position shall be eligible for reimbursement for the value of the position up to $100,000 for the position, payable out of the State Gaming Fund.

(h-6) No person shall be allowed to bid on a gaming position under the provisions of subsection (h-5) without receiving prior Board approval to engage in such bidding. Persons seeking to bid shall submit a bidding application to the Board under procedures established by the Board. The deadline for application shall be 60 days after the effective date of this amendatory Act of the 95th General Assembly. In its investigations and evaluations of persons applying under this subsection, the Board shall have all powers applicable to applicants for licenses under Section 5 of this Act. In determining whether to grant a person approval to engage in bidding under subsection (h-5), the Board shall consider: (A) the character, reputation, and financial integrity of the person and of any other person that (i) controls, directly or indirectly, the person, (ii) is controlled, directly or indirectly, by the person or by a person that controls, directly or indirectly, the person; (iii) is a venture partner of the person, or (iv) is a key person of the person, as defined by Board rules; (B) the ability of the person to make timely payment of the full amount of a successful bid; and (C) such other criteria as the Board may establish by rule to ensure maintenance of the credibility and integrity of gambling operations and the regulatory process. A person is ineligible to bid for positions under subsection (h-5) if: (i) the person has been convicted of a felony offense, a violation of Article 28 of the Criminal Code of 1961 or a similar statute of any jurisdiction, or a crime involving dishonesty or moral turpitude; (ii) the person makes a false statement on the application, or has submitted an application for a license under this Act that contains false information; (iii) the person has had any license issued under this Act or a license to own, operate, supply, or be employed by gambling facilities in any other jurisdiction revoked, suspended for disciplinary reasons, or involuntarily non-renewed; (iv) the person is a member of the Board; (v) the person has engaged in spin-off or contingent vendor activity prohibited under subsection (h-7); or (vi) the person is an entity within which a person defined in item (i), (ii), (iii), (iv), or (v) is an officer, director, or managerial employee. The Board shall publicly disclose the names of persons, and their venture partners, who apply to bid for positions authorized under subsection (h-5) and of persons, and their venture partners, who are approved for bidding. A person who knowingly makes a false statement on an application to obtain a position as authorized by subsection (h-5) is guilty of a Class A misdemeanor.

(h-7) A gaming position awarded under subsection (h-5) may be subsequently sold, leased, or transferred, including by inheritance, except that no sale or transfer shall occur until: (i) the Board has approved the purchaser or transferee under the criteria of subsection (h-6) and (ii) the Board has approved the terms of the sale, lease, or transfer. In approving or disapproving a sale, lease, or transfer, the Board shall have all powers applicable to other transactions subject to its approval under Section 5 of this Act. When the purchaser or transferee is a current licensee under this Act, and the Board has not decided that the licensee no longer meets the criteria for license approval, then the Board's prior license approval shall be sufficient for approval under this subsection, except that the criteria for license approval must encompass all of the criteria of subsection (h-6). There shall be no spin-off or contingent vendor activity associated with the attempted or actual purchase or transfer of a gaming position authorized by subsection (h-5). For purposes of this subsection, "spin-off or contingent vendor activity" means any bundling or linkage of the sale or transfer of a gaming position with one or more supplier or service contracts, or portions thereof.

(h-8) The Board shall have a continuing authority and duty to ensure that persons holding positions awarded under subsection (h-5) comply with the criteria for bidding authorization established under subsection (h-6), and the prohibition against spin-off or contingent vendor activity established under subsection (h-7). In exercising this authority and duty, the Board may obtain information from any source, conduct investigations and hearings, and exercise any of its powers applicable to licensees under Section 5 of this Act. The Board may revoke the ownership of a person that it finds, following hearing, to be an unsuitable owner under the criteria of subsection (h-6). The Board must revoke the ownership of a person that the Board finds to have been convicted of a felony offense, a violation of Article 28 of the Criminal Code of 1961 or a similar statute of any jurisdiction, or a crime involving dishonesty or moral turpitude, to have violated the prohibition against spin-off or contingent vendor activity under subsection (h-7), to have engaged in collusive activity that is intended to impair, or has the effect of impairing, the effective bidding for or use of a position, or to have made a false statement to the Board in connection with this or any other application. A person whose ownership of a position is revoked under this subsection shall not be eligible for reimbursement for the revoked position, notwithstanding the provisions of subsection (h-5).

(h-9) A licensed owner shall have full operational control of a position authorized under subsection (h-5) that is in use at one of its licensed gaming facilities and, with respect to the use of the position, must comply with all provisions of this Act, Board rules, and the Minimum Internal Operating Standards promulgated by the Board.

(h-10) Any collusive activity by a licensee that is intended to, or has the effect of, impairing the effective bidding for, or use of, a position, shall be grounds for disciplinary action by the Board against the licensee. If the Board finds that a violation of this subsection has occurred, it may impose any penalty authorized against licensees under Section 5 of this Act.

(i) A licensed owner is authorized to apply to the Board for and, if approved therefor, to receive all licenses from the Board necessary for the operation of a riverboat, including a liquor license, a license to prepare and serve food for human consumption, and other necessary licenses. All use, occupation and excise taxes which apply to the sale of food and beverages in this State and all taxes imposed on the sale or use of tangible personal property apply to such sales aboard the riverboat.

(j) The Board may issue or re-issue a license authorizing a riverboat to dock in a municipality or approve a relocation under Section 11.2 only if, prior to the issuance or re-issuance of the license or approval, the governing body of the municipality in which the riverboat will dock has by a majority vote approved the docking of riverboats in the municipality. The Board may issue or re-issue a license authorizing a riverboat to dock in areas of a county outside any municipality or approve a relocation under Section 11.2 only if, prior to the issuance or re-issuance of the license or approval, the governing body of the county has by a majority vote approved of the docking of riverboats within such areas.

(Source: P.A. 93-28, eff. 6-20-03; 93-453, eff. 8-7-03; 94-667, eff. 8-23-05; 94-804, eff. 5-26-06.)

(230 ILCS 10/13) (from Ch. 120, par. 2413)

Sec. 13. Wagering tax; rate; distribution.

(a) Until January 1, 1998, a tax is imposed on the adjusted gross receipts received from gambling games authorized under this Act at the rate of 20%.

(a-1) From January 1, 1998 until July 1, 2002, a privilege tax is imposed on persons engaged in the business of conducting riverboat gambling operations, based on the adjusted gross receipts received by a licensed owner from gambling games authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and including $25,000,000;

20% of annual adjusted gross receipts in excess of $25,000,000 but not exceeding $50,000,000;

25% of annual adjusted gross receipts in excess of $50,000,000 but not exceeding $75,000,000;

30% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000;

35% of annual adjusted gross receipts in excess of $100,000,000.

(a-2) From July 1, 2002 until July 1, 2003, a privilege tax is imposed on persons engaged in the business of conducting riverboat gambling operations, other than licensed managers conducting riverboat gambling operations on behalf of the State, based on the adjusted gross receipts received by a licensed owner from gambling games authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and including $25,000,000;

22.5% of annual adjusted gross receipts in excess of $25,000,000 but not exceeding $50,000,000;

27.5% of annual adjusted gross receipts in excess of $50,000,000 but not exceeding $75,000,000;

32.5% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000;

37.5% of annual adjusted gross receipts in excess of $100,000,000 but not exceeding $150,000,000;

45% of annual adjusted gross receipts in excess of $150,000,000 but not exceeding $200,000,000;

50% of annual adjusted gross receipts in excess of $200,000,000.

(a-3) Beginning July 1, 2003, a privilege tax is imposed on persons engaged in the business of conducting riverboat gambling operations, other than licensed managers conducting riverboat gambling operations on behalf of the State, based on the adjusted gross receipts received by a licensed owner from gambling games authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and including $25,000,000;

27.5% of annual adjusted gross receipts in excess of $25,000,000 but not exceeding $37,500,000;

32.5% of annual adjusted gross receipts in excess of $37,500,000 but not exceeding $50,000,000;

37.5% of annual adjusted gross receipts in excess of $50,000,000 but not exceeding $75,000,000;

45% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000;

50% of annual adjusted gross receipts in excess of $100,000,000 but not exceeding $250,000,000;

70% of annual adjusted gross receipts in excess of $250,000,000.

An amount equal to the amount of wagering taxes collected under this subsection (a-3) that are in addition to the amount of wagering taxes that would have been collected if the wagering tax rates under subsection (a-2) were in effect shall be paid into the Common School Fund.

The privilege tax imposed under this subsection (a-3) shall no longer be imposed beginning on the earlier of (i) July 1, 2005; (ii) the first date after June 20, 2003 that riverboat gambling operations are conducted pursuant to a dormant license; or (iii) the first day that riverboat gambling operations are conducted under the authority of an owners license that is in addition to the 10 owners licenses initially authorized under this Act. For the purposes of this subsection (a-3), the term "dormant license" means an owners license that is authorized by this Act under which no riverboat gambling operations are being conducted on June 20, 2003.

(a-4) Beginning on the first day on which the tax imposed under subsection (a-3) is no longer imposed, a privilege tax is imposed on persons engaged in the business of conducting riverboat gambling operations, other than licensed managers conducting riverboat gambling operations on behalf of the State, based on the adjusted gross receipts received by a licensed owner from gambling games authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and including $25,000,000;

22.5% of annual adjusted gross receipts in excess of $25,000,000 but not exceeding $50,000,000;

27.5% of annual adjusted gross receipts in excess of $50,000,000 but not exceeding $75,000,000;

32.5% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000;

37.5% of annual adjusted gross receipts in excess of $100,000,000 but not exceeding $150,000,000;

45% of annual adjusted gross receipts in excess of $150,000,000 but not exceeding $200,000,000;

50% of annual adjusted gross receipts in excess of $200,000,000.

(a-8) Riverboat gambling operations conducted by a licensed manager on behalf of the State are not subject to the tax imposed under this Section.

(a-10) The taxes imposed by this Section shall be paid by the licensed owner to the Board not later than 3:00 o'clock p.m. of the day after the day when the wagers were made.

(a-15) If the privilege tax imposed under subsection (a-3) is no longer imposed pursuant to item (i) of the last paragraph of subsection (a-3), then by June 15 of each year, each owners licensee, other than an owners licensee that admitted 1,000,000 persons or fewer in calendar year 2004, must, in addition to the payment of all amounts otherwise due under this Section, pay to the Board a reconciliation payment in the amount, if any, by which the licensed owner's base amount exceeds the amount of net privilege tax paid by the licensed owner to the Board in the then current State fiscal year. A licensed owner's net privilege tax obligation due for the balance of the State fiscal year shall be reduced up to the total of the amount paid by the licensed owner in its June 15 reconciliation payment. The obligation imposed by this subsection (a-15) is binding on any person, firm, corporation, or other entity that acquires an ownership interest in any such owners license. The obligation imposed under this subsection (a-15) terminates on the earliest of: (i) July 1, 2007, (ii) the first day after the effective date of this amendatory Act of the 94th General Assembly that riverboat gambling operations are conducted pursuant to a dormant license, (iii) the first day that riverboat gambling operations are conducted under the authority of an owners license that is in addition to the 10 owners licenses initially authorized under this Act, or (iv) the first day that a licensee under the Illinois Horse Racing Act of 1975 conducts gaming operations with slot machines or other electronic gaming devices. The Board must reduce the obligation imposed under this subsection (a-15) by an amount the Board deems reasonable for any of the following reasons: (A) an act or acts of God, (B) an act of bioterrorism or terrorism or a bioterrorism or terrorism threat that was investigated by a law enforcement agency, or (C) a condition beyond the control of the owners licensee that does not result from any act or omission by the owners licensee or any of its agents and that poses a hazardous threat to the health and safety of patrons. If an owners licensee pays an amount in excess of its liability under this Section, the Board shall apply the overpayment to future payments required under this Section.

For purposes of this subsection (a-15):

"Act of God" means an incident caused by the operation of an extraordinary force that cannot be foreseen, that cannot be avoided by the exercise of due care, and for which no person can be held liable.

"Base amount" means the following:

For a riverboat in Alton, $31,000,000.

For a riverboat in East Peoria, $43,000,000.

For the Empress riverboat in Joliet, $86,000,000.

For a riverboat in Metropolis, $45,000,000.

For the Harrah's riverboat in Joliet, $114,000,000.

For a riverboat in Aurora, $86,000,000.

For a riverboat in East St. Louis, $48,500,000.

For a riverboat in Elgin, $198,000,000.

"Dormant license" has the meaning ascribed to it in subsection (a-3).

"Net privilege tax" means all privilege taxes paid by a licensed owner to the Board under this Section, less all payments made from the State Gaming Fund pursuant to subsection (b) of this Section.

The changes made to this subsection (a-15) by Public Act 94-839 this amendatory Act of the 94th General Assembly are intended to restate and clarify the intent of Public Act 94-673 with respect to the amount of the payments required to be made under this subsection by an owners licensee to the Board.

(b) Until January 1, 1998, 25% of the tax revenue deposited in the State Gaming Fund under this Section shall be paid, subject to appropriation by the General Assembly, to the unit of local government which is designated as the home dock of the riverboat. Beginning January 1, 1998, from the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to 5% of adjusted gross receipts generated by a riverboat shall be paid monthly, subject to appropriation by the General Assembly, to the unit of local government that is designated as the home dock of the riverboat. From the tax revenue deposited in the State Gaming Fund pursuant to riverboat gambling operations conducted by a licensed manager on behalf of the State, an amount equal to 5% of adjusted gross receipts generated pursuant to those riverboat gambling operations shall be paid monthly, subject to appropriation by the General Assembly, to the unit of local government that is designated as the home dock of the riverboat upon which those riverboat gambling operations are conducted.

(c) Appropriations, as approved by the General Assembly, may be made from the State Gaming Fund to the Department of Revenue and the Department of State Police for the administration and enforcement of this Act, or to the Department of Human Services for the administration of programs to treat problem gambling.

(c-5) Before May 26, 2006 (the effective date of Public Act 94-804) this amendatory Act of the 94th General Assembly and beginning 2 years after May 26, 2006 (the effective date of Public Act 94-804) this amendatory Act of the 94th General Assembly, after the payments required under subsections (b) and (c) have been made, an amount equal to 15% of the adjusted gross receipts of (1) an owners licensee that relocates pursuant to Section 11.2, (2) an owners licensee conducting riverboat gambling operations pursuant to an owners license that is initially issued after June 25, 1999, or (3) the first riverboat gambling operations conducted by a licensed manager on behalf of the State under Section 7.3, whichever comes first, shall be paid from the State Gaming Fund into the Horse Racing Equity Fund.

(c-10) Each year the General Assembly shall appropriate from the General Revenue Fund to the Education Assistance Fund an amount equal to the amount paid into the Horse Racing Equity Fund pursuant to subsection (c-5) in the prior calendar year.

(c-15) After the payments required under subsections (b), (c), and (c-5) have been made, an amount equal to 2% of the adjusted gross receipts of (1) an owners licensee that relocates pursuant to Section 11.2, (2) an owners licensee conducting riverboat gambling operations pursuant to an owners license that is initially issued after June 25, 1999, or (3) the first riverboat gambling operations conducted by a licensed manager on behalf of the State under Section 7.3, whichever comes first, shall be paid, subject to appropriation from the General Assembly, from the State Gaming Fund to each home rule county with a population of over 3,000,000 inhabitants for the purpose of enhancing the county's criminal justice system.

(c-20) Each year the General Assembly shall appropriate from the General Revenue Fund to the Education Assistance Fund an amount equal to the amount paid to each home rule county with a population of over 3,000,000 inhabitants pursuant to subsection (c-15) in the prior calendar year.

(c-25) After the payments required under subsections (b), (c), (c-5) and (c-15) have been made, an amount equal to 2% of the adjusted gross receipts of (1) an owners licensee that relocates pursuant to Section 11.2, (2) an owners licensee conducting riverboat gambling operations pursuant to an owners license that is initially issued after June 25, 1999, or (3) the first riverboat gambling operations conducted by a licensed manager on behalf of the State under Section 7.3, whichever comes first, shall be paid from the State Gaming Fund to Chicago State University.

(d) From time to time, the Board shall transfer the remainder of the funds generated by this Act into the Education Assistance Fund, created by Public Act 86-0018, of the State of Illinois.

(e) Nothing in this Act shall prohibit the unit of local government designated as the home dock of the riverboat from entering into agreements with other units of local government in this State or in other states to share its portion of the tax revenue.

(e-1) Notwithstanding the provisions of subsections (a) through (e) of this Section, all tax revenues attributable to the adjusted gross receipts of positions offered by the Board under the authority of subsection (h-5) of Section 7 shall be deposited into the Building Illinois for Tomorrow Fund. The adjusted gross receipts of a licensed owner payable into the Building Illinois for Tomorrow Fund shall be computed for any tax reporting period in the following manner: the number of positions of the licensed owner initially offered by the Board under the authority of subsection (h-5) of Section 7 shall be divided by the total number of positions of the licensed owner, and this number shall be multiplied by the total adjusted gross receipts of the licensed owner during the tax reporting period.

(f) To the extent practicable, the Board shall administer and collect the wagering taxes imposed by this Section in a manner consistent with the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty and Interest Act.

(Source: P.A. 93-27, eff. 6-20-03; 93-28, eff. 6-20-03; 94-673, eff. 8-23-05; 94-804, eff. 5-26-06; 94-839, eff. 6-6-06; revised 8-3-06.)

Section 10. The State Finance Act is amended by adding Section 5.675 as follows:

(30 ILCS 105/5.675 new)

Sec. 5.675. The Build Illinois for Tomorrow Fund.

Section 99. Effective date. This Act takes effect upon becoming law.