Full Text of HB1545 95th General Assembly
HB1545eng 95TH GENERAL ASSEMBLY
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HB1545 Engrossed |
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| AN ACT concerning gaming.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Riverboat Gambling Act is amended by | 5 |
| changing Sections 7 and 7.5 as follows:
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| (230 ILCS 10/7) (from Ch. 120, par. 2407)
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| Sec. 7. Owners Licenses.
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| (a) The Board shall issue owners licenses to persons, firms | 9 |
| or
corporations which apply for such licenses upon payment to | 10 |
| the Board of the
non-refundable license fee set by the Board, | 11 |
| upon payment of a $25,000
license fee for the first year of | 12 |
| operation and a $5,000 license fee for
each succeeding year and | 13 |
| upon a determination by the Board that the
applicant is | 14 |
| eligible for an owners license pursuant to this Act and the
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| rules of the Board. For a period of 2 years beginning on the | 16 |
| effective date of this amendatory Act of the 94th General | 17 |
| Assembly, as a condition of licensure and as an alternative | 18 |
| source of payment for those funds payable under subsection | 19 |
| (c-5) of Section 13 of the Riverboat Gambling Act, any owners | 20 |
| licensee that holds or receives its owners license on or after | 21 |
| the effective date of this amendatory Act of the 94th General | 22 |
| Assembly, other than an owners licensee operating a riverboat | 23 |
| with adjusted gross receipts in calendar year 2004 of less than |
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| $200,000,000, must pay into the Horse Racing Equity Trust Fund, | 2 |
| in addition to any other payments required under this Act, an | 3 |
| amount equal to 3% of the adjusted gross receipts received by | 4 |
| the owners licensee. The payments required under this Section | 5 |
| shall be made by the owners licensee to the State Treasurer no | 6 |
| later than 3:00 o'clock p.m. of the day after the day when the | 7 |
| adjusted gross receipts were received by the owners licensee. A | 8 |
| person, firm or corporation is ineligible to receive
an owners | 9 |
| license if:
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| (1) the person has been convicted of a felony under the | 11 |
| laws of this
State, any other state, or the United States;
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| (2) the person has been convicted of any violation of | 13 |
| Article 28 of the
Criminal Code of 1961, or substantially | 14 |
| similar laws of any other jurisdiction;
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| (3) the person has submitted an application for a | 16 |
| license under this
Act which contains false information;
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| (4) the person is
a member of the Board;
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| (5) a person defined in (1), (2), (3) or (4) is an | 19 |
| officer, director or
managerial employee of the firm or | 20 |
| corporation;
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| (6) the firm or corporation employs a person defined in | 22 |
| (1), (2), (3) or
(4) who participates in the management or | 23 |
| operation of gambling operations
authorized under this | 24 |
| Act;
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| (7) (blank); or
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| (8) a license of the person, firm or corporation issued |
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| under
this Act, or a license to own or operate gambling | 2 |
| facilities
in any other jurisdiction, has been revoked.
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| (b) In determining whether to grant an owners license to an | 4 |
| applicant, the
Board shall consider:
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| (1) the character, reputation, experience and | 6 |
| financial integrity of the
applicants and of any other or | 7 |
| separate person that either:
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| (A) controls, directly or indirectly, such | 9 |
| applicant, or
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| (B) is controlled, directly or indirectly, by such | 11 |
| applicant or by a
person which controls, directly or | 12 |
| indirectly, such applicant;
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| (2) the facilities or proposed facilities for the | 14 |
| conduct of riverboat
gambling;
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| (3) the highest prospective total revenue to be derived | 16 |
| by the State
from the conduct of riverboat gambling;
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| (4) the extent to which the ownership of the applicant | 18 |
| reflects the
diversity of the State by including minority | 19 |
| persons and females
and the good faith affirmative action | 20 |
| plan of
each applicant to recruit, train and upgrade | 21 |
| minority persons and females in all employment | 22 |
| classifications;
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| (5) the financial ability of the applicant to purchase | 24 |
| and maintain
adequate liability and casualty insurance;
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| (6) whether the applicant has adequate capitalization | 26 |
| to provide and
maintain, for the duration of a license, a |
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| riverboat;
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| (7) the extent to which the applicant exceeds or meets | 3 |
| other standards
for the issuance of an owners license which | 4 |
| the Board may adopt by rule;
and
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| (8) The amount of the applicant's license bid.
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| (c) Each owners license shall specify the place where | 7 |
| riverboats shall
operate and dock.
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| (d) Each applicant shall submit with his application, on | 9 |
| forms
provided by the Board, 2 sets of his fingerprints.
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| (e) The Board may issue up to 10 licenses authorizing the | 11 |
| holders of such
licenses to own riverboats. In the application | 12 |
| for an owners license, the
applicant shall state the dock at | 13 |
| which the riverboat is based and the water
on which the | 14 |
| riverboat will be located. The Board shall issue 5 licenses to
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| become effective not earlier than January 1, 1991. Three of | 16 |
| such licenses
shall authorize riverboat gambling on the | 17 |
| Mississippi River, or, with approval
by the municipality in | 18 |
| which the
riverboat was docked on August 7, 2003 and with Board | 19 |
| approval, be authorized to relocate to a new location,
in a
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| municipality that (1) borders on the Mississippi River or is | 21 |
| within 5
miles of the city limits of a municipality that | 22 |
| borders on the Mississippi
River and (2), on August 7, 2003, | 23 |
| had a riverboat conducting riverboat gambling operations | 24 |
| pursuant to
a license issued under this Act; one of which shall | 25 |
| authorize riverboat
gambling from a home dock in the city of | 26 |
| East St. Louis. One other license
shall
authorize riverboat |
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| gambling on
the Illinois River south of Marshall County. The | 2 |
| Board shall issue one
additional license to become effective | 3 |
| not earlier than March 1, 1992, which
shall authorize riverboat | 4 |
| gambling on the Des Plaines River in Will County.
The Board may | 5 |
| issue 4 additional licenses to become effective not
earlier | 6 |
| than
March 1, 1992. In determining the water upon which | 7 |
| riverboats will operate,
the Board shall consider the economic | 8 |
| benefit which riverboat gambling confers
on the State, and | 9 |
| shall seek to assure that all regions of the State share
in the | 10 |
| economic benefits of riverboat gambling.
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| In granting all licenses, the Board may give favorable | 12 |
| consideration to
economically depressed areas of the State, to | 13 |
| applicants presenting plans
which provide for significant | 14 |
| economic development over a large geographic
area, and to | 15 |
| applicants who currently operate non-gambling riverboats in
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| Illinois.
The Board shall review all applications for owners | 17 |
| licenses,
and shall inform each applicant of the Board's | 18 |
| decision.
The Board may grant an owners license to an
applicant | 19 |
| that has not submitted the highest license bid, but if it does | 20 |
| not
select the highest bidder, the Board shall issue a written | 21 |
| decision explaining
why another
applicant was selected and | 22 |
| identifying the factors set forth in this Section
that favored | 23 |
| the winning bidder.
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| In addition to any other revocation powers granted to the | 25 |
| Board under this
Act,
the Board may revoke the owners license | 26 |
| of a licensee which fails
to begin conducting gambling within |
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| 15 months
of receipt of the
Board's approval of the application | 2 |
| if the Board determines that license
revocation is in the best | 3 |
| interests of the State.
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| (e-5) Any license authorizing the conduct of gambling under | 5 |
| this Act issued by the Board after the effective date of this | 6 |
| amendatory Act of the 95th General Assembly must be issued | 7 |
| pursuant to the competitive bidding process contained in | 8 |
| Section 7.5 of this Act.
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| (f) The first 10 owners licenses issued under this Act | 10 |
| shall permit the
holder to own up to 2 riverboats and equipment | 11 |
| thereon
for a period of 3 years after the effective date of the | 12 |
| license. Holders of
the first 10 owners licenses must pay the | 13 |
| annual license fee for each of
the 3
years during which they | 14 |
| are authorized to own riverboats.
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| (g) Upon the termination, expiration, or revocation of each | 16 |
| of the first
10 licenses, which shall be issued for a 3 year | 17 |
| period, all licenses are
renewable annually upon payment of the | 18 |
| fee and a determination by the Board
that the licensee | 19 |
| continues to meet all of the requirements of this Act and the
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| Board's rules.
However, for licenses renewed on or after May 1, | 21 |
| 1998, renewal shall be
for a period of 4 years, unless the | 22 |
| Board sets a shorter period.
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| (h) An owners license shall entitle the licensee to own up | 24 |
| to 2
riverboats. A licensee shall limit the number of gambling | 25 |
| participants to
1,200 for any such owners license.
A licensee | 26 |
| may operate both of its riverboats concurrently, provided that |
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| the
total number of gambling participants on both riverboats | 2 |
| does not exceed
1,200. Riverboats licensed to operate on the
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| Mississippi River and the Illinois River south of Marshall | 4 |
| County shall
have an authorized capacity of at least 500 | 5 |
| persons. Any other riverboat
licensed under this Act shall have | 6 |
| an authorized capacity of at least 400
persons.
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| (i) A licensed owner is authorized to apply to the Board | 8 |
| for and, if
approved therefor, to receive all licenses from the | 9 |
| Board necessary for the
operation of a riverboat, including a | 10 |
| liquor license, a license
to prepare and serve food for human | 11 |
| consumption, and other necessary
licenses. All use, occupation | 12 |
| and excise taxes which apply to the sale of
food and beverages | 13 |
| in this State and all taxes imposed on the sale or use
of | 14 |
| tangible personal property apply to such sales aboard the | 15 |
| riverboat.
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| (j) The Board may issue or re-issue a license authorizing a | 17 |
| riverboat to
dock
in a municipality or approve a relocation | 18 |
| under Section 11.2 only if, prior
to the issuance or | 19 |
| re-issuance of
the license or approval, the governing body of | 20 |
| the municipality in which
the riverboat will dock has by a | 21 |
| majority vote approved the docking of
riverboats in the | 22 |
| municipality. The Board may issue or re-issue a license
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| authorizing a
riverboat to dock in areas of a county outside | 24 |
| any municipality or approve a
relocation under Section 11.2 | 25 |
| only if, prior to the issuance or re-issuance
of the license
or | 26 |
| approval, the
governing body of the county has by a majority |
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| vote approved of the docking of
riverboats within such areas.
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| (Source: P.A. 93-28, eff. 6-20-03; 93-453, eff. 8-7-03; 94-667, | 3 |
| eff. 8-23-05; 94-804, eff. 5-26-06.)
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| (230 ILCS 10/7.5)
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| Sec. 7.5. Competitive Bidding. When the Board (i) re-issues
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| determines that it will re-issue an owners license pursuant to
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| an
open and competitive bidding process, as set forth in | 8 |
| Section 7.1, (ii) issues
or that it
will issue a managers | 9 |
| license pursuant to an open and competitive bidding
process, as | 10 |
| set forth in Section 7.4, or (iii) issues a license authorizing | 11 |
| the conduct of gambling under this Act after the effective date | 12 |
| of this amendatory Act of the 95th General Assembly pursuant to
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| an
open and competitive bidding process, as provided in | 14 |
| subsection (e-5) of Section 7, the open and competitive bidding | 15 |
| process
shall adhere to the following procedures:
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| (1) The Board shall make applications for owners and | 17 |
| managers
licenses available to the public and allow a | 18 |
| reasonable time for applicants to
submit applications to the | 19 |
| Board.
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| (2) During the filing period for owners or managers license | 21 |
| applications,
the
Board may retain the services of an | 22 |
| investment banking firm to assist the Board
in conducting the | 23 |
| open and competitive bidding process.
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| (3) After receiving all of the bid proposals, the Board | 25 |
| shall open all of
the
proposals in a public forum and disclose |
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| the prospective owners or managers
names, venture partners, if | 2 |
| any, and, in the case of applicants for owners
licenses, the | 3 |
| locations of the proposed development sites.
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| (4) The Board shall summarize the terms of the proposals | 5 |
| and may make this
summary available to the public.
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| (5) The Board shall evaluate the proposals within a | 7 |
| reasonable time and
select no
more than 3 final applicants to | 8 |
| make presentations of their
proposals to the Board.
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| (6) The final applicants shall make their presentations to | 10 |
| the
Board on
the same day during an open session of the Board.
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| (7) As soon as practicable after the public presentations | 12 |
| by the final
applicants,
the Board, in its
discretion, may | 13 |
| conduct further negotiations among the 3 final applicants.
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| During such negotiations, each final applicant may increase its | 15 |
| license bid or
otherwise enhance its bid proposal. At the | 16 |
| conclusion of such
negotiations, the Board shall
select the | 17 |
| winning proposal. In the case of negotiations for
an owners | 18 |
| license, the Board may, at the conclusion of such negotiations,
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| make the determination allowed under Section 7.3(a).
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| (8) Upon selection of a winning bid, the Board shall | 21 |
| evaluate the winning
bid
within a reasonable period of time for | 22 |
| licensee suitability in accordance with
all applicable | 23 |
| statutory and regulatory criteria.
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| (9) If the winning bidder is unable or otherwise fails to
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| consummate the transaction, (including if the Board determines | 26 |
| that the winning
bidder does not satisfy the suitability |
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| requirements), the Board may, on the
same criteria, select from | 2 |
| the remaining bidders or make the determination
allowed under | 3 |
| Section 7.3(a).
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| (Source: P.A. 93-28, eff. 6-20-03.)
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| Section 99. Effective date. This Act takes effect upon | 6 |
| becoming law.
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