Illinois General Assembly - Full Text of SB2523
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Full Text of SB2523  99th General Assembly


Sen. Terry Link

Filed: 3/16/2016





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2    AMENDMENT NO. ______. Amend Senate Bill 2523 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Riverboat Gambling Act is amended by
5changing Section 5 as follows:
6    (230 ILCS 10/5)  (from Ch. 120, par. 2405)
7    Sec. 5. Gaming Board.
8    (a) (1) There is hereby established the Illinois Gaming
9Board, which shall have the powers and duties specified in this
10Act, and all other powers necessary and proper to fully and
11effectively execute this Act for the purpose of administering,
12regulating, and enforcing the system of riverboat gambling
13established by this Act. Its jurisdiction shall extend under
14this Act to every person, association, corporation,
15partnership and trust involved in riverboat gambling
16operations in the State of Illinois.



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1    (2) The Board shall consist of 5 members to be appointed by
2the Governor with the advice and consent of the Senate, one of
3whom shall be designated by the Governor to be chairman. Each
4member shall have a reasonable knowledge of the practice,
5procedure and principles of gambling operations. Each member
6shall either be a resident of Illinois or shall certify that he
7will become a resident of Illinois before taking office. At
8least one member shall be experienced in law enforcement and
9criminal investigation, at least one member shall be a
10certified public accountant experienced in accounting and
11auditing, and at least one member shall be a lawyer licensed to
12practice law in Illinois.
13    (3) The terms of office of the Board members shall be 3
14years, except that the terms of office of the initial Board
15members appointed pursuant to this Act will commence from the
16effective date of this Act and run as follows: one for a term
17ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
18a term ending July 1, 1993. Upon the expiration of the
19foregoing terms, the successors of such members shall serve a
20term for 3 years and until their successors are appointed and
21qualified for like terms. Vacancies in the Board shall be
22filled for the unexpired term in like manner as original
23appointments. Each member of the Board shall be eligible for
24reappointment at the discretion of the Governor with the advice
25and consent of the Senate.
26    (4) Each member of the Board shall receive $300 for each



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



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1service functions.
2    (6) Any member of the Board may be removed by the Governor
3for neglect of duty, misfeasance, malfeasance, or nonfeasance
4in office or for engaging in any political activity.
5    (7) Before entering upon the discharge of the duties of his
6office, each member of the Board shall take an oath that he
7will faithfully execute the duties of his office according to
8the laws of the State and the rules and regulations adopted
9therewith and shall give bond to the State of Illinois,
10approved by the Governor, in the sum of $25,000. Every such
11bond, when duly executed and approved, shall be recorded in the
12office of the Secretary of State. Whenever the Governor
13determines that the bond of any member of the Board has become
14or is likely to become invalid or insufficient, he shall
15require such member forthwith to renew his bond, which is to be
16approved by the Governor. Any member of the Board who fails to
17take oath and give bond within 30 days from the date of his
18appointment, or who fails to renew his bond within 30 days
19after it is demanded by the Governor, shall be guilty of
20neglect of duty and may be removed by the Governor. The cost of
21any bond given by any member of the Board under this Section
22shall be taken to be a part of the necessary expenses of the
24    (7.5) For the examination of all mechanical,
25electromechanical, or electronic table games, slot machines,
26slot accounting systems, and other electronic gaming equipment



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1for compliance with this Act, the Board shall may utilize the
2services of all one or more independent outside testing
3laboratories that have been accredited by a national
4accreditation body signifying they are qualified to and that,
5in the judgment of the Board, are qualified to perform such
6examinations. The Board shall not unreasonably withhold its
7recognition of an accredited independent outside testing
8laboratory as long as the laboratory is found suitable by the
9Board and holds a license to perform such examinations in good
10standing or is recognized to perform such examinations in New
11Jersey, Nevada, or Ohio.
12    (8) The Board shall employ such personnel as may be
13necessary to carry out its functions and shall determine the
14salaries of all personnel, except those personnel whose
15salaries are determined under the terms of a collective
16bargaining agreement. No person shall be employed to serve the
17Board who is, or whose spouse, parent or child is, an official
18of, or has a financial interest in or financial relation with,
19any operator engaged in gambling operations within this State
20or any organization engaged in conducting horse racing within
21this State. Any employee violating these prohibitions shall be
22subject to termination of employment.
23    (9) An Administrator shall perform any and all duties that
24the Board shall assign him. The salary of the Administrator
25shall be determined by the Board and, in addition, he shall be
26reimbursed for all actual and necessary expenses incurred by



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1him in discharge of his official duties. The Administrator
2shall keep records of all proceedings of the Board and shall
3preserve all records, books, documents and other papers
4belonging to the Board or entrusted to its care. The
5Administrator shall devote his full time to the duties of the
6office and shall not hold any other office or employment.
7    (b) The Board shall have general responsibility for the
8implementation of this Act. Its duties include, without
9limitation, the following:
10        (1) To decide promptly and in reasonable order all
11    license applications. Any party aggrieved by an action of
12    the Board denying, suspending, revoking, restricting or
13    refusing to renew a license may request a hearing before
14    the Board. A request for a hearing must be made to the
15    Board in writing within 5 days after service of notice of
16    the action of the Board. Notice of the action of the Board
17    shall be served either by personal delivery or by certified
18    mail, postage prepaid, to the aggrieved party. Notice
19    served by certified mail shall be deemed complete on the
20    business day following the date of such mailing. The Board
21    shall conduct all requested hearings promptly and in
22    reasonable order;
23        (2) To conduct all hearings pertaining to civil
24    violations of this Act or rules and regulations promulgated
25    hereunder;
26        (3) To promulgate such rules and regulations as in its



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1    judgment may be necessary to protect or enhance the
2    credibility and integrity of gambling operations
3    authorized by this Act and the regulatory process
4    hereunder;
5        (4) To provide for the establishment and collection of
6    all license and registration fees and taxes imposed by this
7    Act and the rules and regulations issued pursuant hereto.
8    All such fees and taxes shall be deposited into the State
9    Gaming Fund;
10        (5) To provide for the levy and collection of penalties
11    and fines for the violation of provisions of this Act and
12    the rules and regulations promulgated hereunder. All such
13    fines and penalties shall be deposited into the Education
14    Assistance Fund, created by Public Act 86-0018, of the
15    State of Illinois;
16        (6) To be present through its inspectors and agents any
17    time gambling operations are conducted on any riverboat for
18    the purpose of certifying the revenue thereof, receiving
19    complaints from the public, and conducting such other
20    investigations into the conduct of the gambling games and
21    the maintenance of the equipment as from time to time the
22    Board may deem necessary and proper;
23        (7) To review and rule upon any complaint by a licensee
24    regarding any investigative procedures of the State which
25    are unnecessarily disruptive of gambling operations. The
26    need to inspect and investigate shall be presumed at all



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1    times. The disruption of a licensee's operations shall be
2    proved by clear and convincing evidence, and establish
3    that: (A) the procedures had no reasonable law enforcement
4    purposes, and (B) the procedures were so disruptive as to
5    unreasonably inhibit gambling operations;
6        (8) To hold at least one meeting each quarter of the
7    fiscal year. In addition, special meetings may be called by
8    the Chairman or any 2 Board members upon 72 hours written
9    notice to each member. All Board meetings shall be subject
10    to the Open Meetings Act. Three members of the Board shall
11    constitute a quorum, and 3 votes shall be required for any
12    final determination by the Board. The Board shall keep a
13    complete and accurate record of all its meetings. A
14    majority of the members of the Board shall constitute a
15    quorum for the transaction of any business, for the
16    performance of any duty, or for the exercise of any power
17    which this Act requires the Board members to transact,
18    perform or exercise en banc, except that, upon order of the
19    Board, one of the Board members or an administrative law
20    judge designated by the Board may conduct any hearing
21    provided for under this Act or by Board rule and may
22    recommend findings and decisions to the Board. The Board
23    member or administrative law judge conducting such hearing
24    shall have all powers and rights granted to the Board in
25    this Act. The record made at the time of the hearing shall
26    be reviewed by the Board, or a majority thereof, and the



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1    findings and decision of the majority of the Board shall
2    constitute the order of the Board in such case;
3        (9) To maintain records which are separate and distinct
4    from the records of any other State board or commission.
5    Such records shall be available for public inspection and
6    shall accurately reflect all Board proceedings;
7        (10) To file a written annual report with the Governor
8    on or before March 1 each year and such additional reports
9    as the Governor may request. The annual report shall
10    include a statement of receipts and disbursements by the
11    Board, actions taken by the Board, and any additional
12    information and recommendations which the Board may deem
13    valuable or which the Governor may request;
14        (11) (Blank);
15        (12) (Blank);
16        (13) To assume responsibility for administration and
17    enforcement of the Video Gaming Act; and
18        (14) To adopt, by rule, a code of conduct governing
19    Board members and employees that ensure, to the maximum
20    extent possible, that persons subject to this Code avoid
21    situations, relationships, or associations that may
22    represent or lead to a conflict of interest.
23    (c) The Board shall have jurisdiction over and shall
24supervise all gambling operations governed by this Act. The
25Board shall have all powers necessary and proper to fully and
26effectively execute the provisions of this Act, including, but



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1not limited to, the following:
2        (1) To investigate applicants and determine the
3    eligibility of applicants for licenses and to select among
4    competing applicants the applicants which best serve the
5    interests of the citizens of Illinois.
6        (2) To have jurisdiction and supervision over all
7    riverboat gambling operations in this State and all persons
8    on riverboats where gambling operations are conducted.
9        (3) To promulgate rules and regulations for the purpose
10    of administering the provisions of this Act and to
11    prescribe rules, regulations and conditions under which
12    all riverboat gambling in the State shall be conducted.
13    Such rules and regulations are to provide for the
14    prevention of practices detrimental to the public interest
15    and for the best interests of riverboat gambling, including
16    rules and regulations regarding the inspection of such
17    riverboats and the review of any permits or licenses
18    necessary to operate a riverboat under any laws or
19    regulations applicable to riverboats, and to impose
20    penalties for violations thereof.
21        (4) To enter the office, riverboats, facilities, or
22    other places of business of a licensee, where evidence of
23    the compliance or noncompliance with the provisions of this
24    Act is likely to be found.
25        (5) To investigate alleged violations of this Act or
26    the rules of the Board and to take appropriate disciplinary



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



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



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



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1    liquors, wine or beer as defined in the Liquor Control Act
2    of 1934 on board a riverboat and to have exclusive
3    authority to establish the hours for sale and consumption
4    of alcoholic liquor on board a riverboat, notwithstanding
5    any provision of the Liquor Control Act of 1934 or any
6    local ordinance, and regardless of whether the riverboat
7    makes excursions. The establishment of the hours for sale
8    and consumption of alcoholic liquor on board a riverboat is
9    an exclusive power and function of the State. A home rule
10    unit may not establish the hours for sale and consumption
11    of alcoholic liquor on board a riverboat. This amendatory
12    Act of 1991 is a denial and limitation of home rule powers
13    and functions under subsection (h) of Section 6 of Article
14    VII of the Illinois Constitution.
15        (19) After consultation with the U.S. Army Corps of
16    Engineers, to establish binding emergency orders upon the
17    concurrence of a majority of the members of the Board
18    regarding the navigability of water, relative to
19    excursions, in the event of extreme weather conditions,
20    acts of God or other extreme circumstances.
21        (20) To delegate the execution of any of its powers
22    under this Act for the purpose of administering and
23    enforcing this Act and its rules and regulations hereunder.
24        (20.5) To approve any contract entered into on its
25    behalf.
26        (20.6) To appoint investigators to conduct



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1    investigations, searches, seizures, arrests, and other
2    duties imposed under this Act, as deemed necessary by the
3    Board. These investigators have and may exercise all of the
4    rights and powers of peace officers, provided that these
5    powers shall be limited to offenses or violations occurring
6    or committed 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 on a riverboat or dock,
19    as defined in subsections (d) and (f) of Section 4, or as
20    otherwise provided by this Act or any other law. In the
21    event the Department of State Police or the Department of
22    Revenue is unable to fill contracted police or
23    investigative positions, the Board may appoint
24    investigators to fill those positions pursuant to
25    subdivision (20.6).
26        (21) To take any other action as may be reasonable or



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1    appropriate to enforce this Act and rules and regulations
2    hereunder.
3    (d) The Board may seek and shall receive the cooperation of
4the Department of State Police in conducting background
5investigations of applicants and in fulfilling its
6responsibilities under this Section. Costs incurred by the
7Department of State Police as a result of such cooperation
8shall be paid by the Board in conformance with the requirements
9of Section 2605-400 of the Department of State Police Law (20
10ILCS 2605/2605-400).
11    (e) The Board must authorize to each investigator and to
12any other employee of the Board exercising the powers of a
13peace officer a distinct badge that, on its face, (i) clearly
14states that the badge is authorized by the Board and (ii)
15contains a unique identifying number. No other badge shall be
16authorized by the Board.
17(Source: P.A. 98-377, eff. 1-1-14; 98-582, eff. 8-27-13.)
18    Section 10. The Video Gaming Act is amended by changing
19Section 15 as follows:
20    (230 ILCS 40/15)
21    Sec. 15. Minimum requirements for licensing and
22registration. Every video gaming terminal offered for play
23shall first be tested and approved pursuant to the rules of the
24Board, and each video gaming terminal offered in this State for



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1play shall conform to an approved model. For the examination of
2video gaming machines and associated equipment as required by
3this Section, the Board shall may utilize the services of all
4one or more independent outside testing laboratories that have
5been accredited by a national accreditation body signifying
6they are qualified to and that, in the judgment of the Board,
7are qualified to perform such examinations. The Board shall not
8unreasonably withhold its recognition of an accredited
9independent outside testing laboratory as long as the
10laboratory is found suitable by the Board and holds a license
11to perform such examinations in good standing or is recognized
12to perform such examinations in New Jersey, Nevada, or Ohio.
13Every video gaming terminal offered in this State for play must
14meet minimum standards set by an independent outside testing
15laboratory approved by the Board. Each approved model shall, at
16a minimum, meet the following criteria:
17        (1) It must conform to all requirements of federal law
18    and regulations, including FCC Class A Emissions
19    Standards.
20        (2) It must theoretically pay out a mathematically
21    demonstrable percentage during the expected lifetime of
22    the machine of all amounts played, which must not be less
23    than 80%. The Board shall establish a maximum payout
24    percentage for approved models by rule. Video gaming
25    terminals that may be affected by skill must meet this
26    standard when using a method of play that will provide the



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1    greatest return to the player over a period of continuous
2    play.
3        (3) It must use a random selection process to determine
4    the outcome of each play of a game. The random selection
5    process must meet 99% confidence limits using a standard
6    chi-squared test for (randomness) goodness of fit.
7        (4) It must display an accurate representation of the
8    game outcome.
9        (5) It must not automatically alter pay tables or any
10    function of the video gaming terminal based on internal
11    computation of hold percentage or have any means of
12    manipulation that affects the random selection process or
13    probabilities of winning a game.
14        (6) It must not be adversely affected by static
15    discharge or other electromagnetic interference.
16        (7) It must be capable of detecting and displaying the
17    following conditions during idle states or on demand: power
18    reset; door open; and door just closed.
19        (8) It must have the capacity to display complete play
20    history (outcome, intermediate play steps, credits
21    available, bets placed, credits paid, and credits cashed
22    out) for the most recent game played and 10 games prior
23    thereto.
24        (9) The theoretical payback percentage of a video
25    gaming terminal must not be capable of being changed
26    without making a hardware or software change in the video



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1    gaming terminal, either on site or via the central
2    communications system.
3        (10) Video gaming terminals must be designed so that
4    replacement of parts or modules required for normal
5    maintenance does not necessitate replacement of the
6    electromechanical meters.
7        (11) It must have nonresettable meters housed in a
8    locked area of the terminal that keep a permanent record of
9    all cash inserted into the machine, all winnings made by
10    the terminal printer, credits played in for video gaming
11    terminals, and credits won by video gaming players. The
12    video gaming terminal must provide the means for on-demand
13    display of stored information as determined by the Board.
14        (12) Electronically stored meter information required
15    by this Section must be preserved for a minimum of 180 days
16    after a power loss to the service.
17        (13) It must have one or more mechanisms that accept
18    cash in the form of bills. The mechanisms shall be designed
19    to prevent obtaining credits without paying by stringing,
20    slamming, drilling, or other means. If such attempts at
21    physical tampering are made, the video gaming terminal
22    shall suspend itself from operating until reset.
23        (14) It shall have accounting software that keeps an
24    electronic record which includes, but is not limited to,
25    the following: total cash inserted into the video gaming
26    terminal; the value of winning tickets claimed by players;



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1    the total credits played; the total credits awarded by a
2    video gaming terminal; and pay back percentage credited to
3    players of each video game.
4        (15) It shall be linked by a central communications
5    system to provide auditing program information as approved
6    by the Board. The central communications system shall use a
7    standard industry protocol, as defined by the Gaming
8    Standards Association, and shall have the functionality to
9    enable the Board or its designee to activate or deactivate
10    individual gaming devices from the central communications
11    system. In no event may the communications system approved
12    by the Board limit participation to only one manufacturer
13    of video gaming terminals by either the cost in
14    implementing the necessary program modifications to
15    communicate or the inability to communicate with the
16    central communications system.
17        (16) The Board, in its discretion, may require video
18    gaming terminals to display Amber Alert messages if the
19    Board makes a finding that it would be economically and
20    technically feasible and pose no risk to the integrity and
21    security of the central communications system and video
22    gaming terminals.
23    The Board may adopt rules to establish additional criteria
24to preserve the integrity and security of video gaming in this
25State. The central communications system vendor may be licensed
26as a video gaming terminal manufacturer or a video gaming



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1terminal distributor, or both, but in no event shall the
2central communications system vendor be licensed as a video
3gaming terminal operator.
4    The Board shall not permit the development of information
5or the use by any licensee of gaming device or individual game
6performance data. Nothing in this Act shall inhibit or prohibit
7the Board from the use of gaming device or individual game
8performance data in its regulatory duties. The Board shall
9adopt rules to ensure that all licensees are treated and all
10licensees act in a non-discriminatory manner and develop
11processes and penalties to enforce those rules.
12(Source: P.A. 98-31, eff. 6-24-13; 98-377, eff. 1-1-14; 98-582,
13eff. 8-27-13; 98-756, eff. 7-16-14.)".