Full Text of SB0007 100th General Assembly
SB0007sam003 100TH GENERAL ASSEMBLY | Sen. Terry Link Filed: 2/28/2017
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| 1 | | AMENDMENT TO SENATE BILL 7
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 7, on page 2, line | 3 | | 10, after "water-based facility", by inserting "and airport | 4 | | gaming locations pursuant to Section 1-67 of this Act"; and | 5 | | by replacing line 21 on page 20 through line 22 on page 23 with | 6 | | the following: | 7 | | "Section 1-45. Casino management contracts.
| 8 | | (a) The Casino Board shall enter into a casino management | 9 | | contract with a casino operator subject to a background | 10 | | investigation and approval by the Gaming Board and payment by | 11 | | the proposed casino operator of a fee of $50,000,000, which | 12 | | shall be deposited into the Gaming Facilities Fee Revenue Fund. | 13 | | The Gaming Board shall complete its background investigation | 14 | | and approval of the casino operator within 6 months after the | 15 | | date that the proposed casino operator submits its application | 16 | | to the Gaming Board. If the Gaming Board does not complete its |
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| 1 | | background investigation and approval within the 6-month | 2 | | period, then the Gaming Board shall give a written explanation | 3 | | to the proposed casino operator and the chief legal officer of | 4 | | the Authority as to why it has not reached a final | 5 | | determination and when it reasonably expects to make a final | 6 | | determination. Validity of the casino management contract is | 7 | | contingent upon the issuance of a casino operator license. If | 8 | | the Gaming Board grants a casino operator license, the Casino | 9 | | Board shall transmit a copy of the executed casino management | 10 | | contract to the Gaming Board. | 11 | | (b) After (1) the Authority has been issued an owners | 12 | | license, (2) the Gaming Board has issued a casino operator | 13 | | license, and (3) the Gaming Board has approved the members of | 14 | | the Casino Board, the Authority may conduct gaming operations | 15 | | at a temporary facility, subject to the adopted rules of the | 16 | | Gaming Board, for no longer than 24 months after gaming | 17 | | operations begin. The Gaming Board may, after holding a public | 18 | | hearing, grant an extension so long as a permanent facility is | 19 | | not operational and the Authority is working in good faith to | 20 | | complete the permanent facility. The Gaming Board may grant | 21 | | additional extensions following further public hearings. Each | 22 | | extension may be for a period of no longer than 6 months."; and | 23 | | on page 27, immediately below line 19, by inserting the | 24 | | following:
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| 1 | | "Section 1-67. Limitations on gaming at Chicago airports. | 2 | | The Authority may conduct gaming operations in an airport under | 3 | | the administration or control of the Chicago Department of | 4 | | Aviation. Gaming operations may be conducted pursuant to this | 5 | | Section so long as (i) gaming operations are conducted in a | 6 | | secured area that is beyond the Transportation Security | 7 | | Administration security checkpoints and only available to | 8 | | airline passengers at least 21 years of age who are members of | 9 | | a private club, and not to the general public, (ii) gaming | 10 | | operations are limited to slot machines, as defined in Section | 11 | | 4 of the Illinois Gambling Act, and (iii) the combined number | 12 | | of gaming positions operating in the City at the airports and | 13 | | at the temporary and permanent casino facility does not exceed | 14 | | the maximum number of gaming positions authorized pursuant to | 15 | | subsection (h) of Section 7 of the Illinois Gambling Act. | 16 | | Gaming operations at an airport are subject to all applicable | 17 | | laws and rules that apply to any other gaming facility under | 18 | | this Act or the Illinois Gambling Act."; and | 19 | | on page 50, line 2, by replacing "Sections 5-45 and 20-10" with | 20 | | "Section 5-45"; and | 21 | | by deleting line 21 on page 55 through line 12 on page 61; and | 22 | | on page 96, by replacing lines 1 through 12 with the following: | 23 | | " (b) The revenues in the Fund shall be used, subject to |
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| 1 | | appropriation, by the Comptroller for the purpose of providing | 2 | | appropriations to the Illinois Gaming Board for the | 3 | | administration and enforcement of the Illinois Gambling Act and | 4 | | the applicable provisions of the Chicago Casino Development | 5 | | Authority Act, with any remaining amounts being transferred to | 6 | | the General Revenue Fund. "; and | 7 | | on page 96, line 14, by replacing " (e) " with " (a) "; and | 8 | | on page 96, line 16, by replacing " (e-25) " with " (h) "; and | 9 | | by replacing line 22 on page 214 through line 6 on page 215 | 10 | | with the following: | 11 | | " (e-1) In awarding standardbred racing dates for calendar | 12 | | year 2018, the Board shall award at least 160 racing dates, and | 13 | | each organization licensee shall average at least 10 races for | 14 | | each racing date awarded. In awarding standardbred racing dates | 15 | | for calendar year 2019, the Board shall award at least 200 | 16 | | racing dates, and each organization licensee shall average at | 17 | | least 11 races for each racing date awarded. In awarding | 18 | | standardbred racing dates for calendar year 2020 and | 19 | | thereafter, the Board shall award at least 260 racing dates, | 20 | | and each organization licensee shall average at least 11 races | 21 | | for each racing date awarded unless a lesser schedule of live | 22 | | racing is a result of an agreement with the organization | 23 | | representing the largest number of standardbred owners, |
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| 1 | | breeders, trainers, drivers, caretakers in the State. | 2 | | Standardbred racing conducted in Sangamon County shall not be | 3 | | considered races under this subsection (e-1). "; and | 4 | | on page 217, by replacing lines 16 through 26 with the | 5 | | following: | 6 | | " (e-4) Notwithstanding the provisions of Section 7.7 of the | 7 | | Illinois Gambling Act or any provision of this Act other than | 8 | | subsections (e-3) and (e-4.5), for each calendar year for which | 9 | | an electronic gaming licensee requests thoroughbred racing | 10 | | dates which results in a number of live races under its | 11 | | organization license that is less than the total number of live | 12 | | races which it conducted in 2016 at its race track facility, | 13 | | the electronic gaming licensee may not conduct electronic | 14 | | gaming for the calendar year of such requested live races. | 15 | | (e-4.1) Notwithstanding the provisions of Section 7.7 of | 16 | | the Illinois Gambling Act or any provision of this Act other | 17 | | than subsections (e-3) and (e-4.5), for each calendar year for | 18 | | which an organization licensee requests racing dates for | 19 | | standardbred racing which results in a number of live races | 20 | | that is less than the total number of live races required in | 21 | | subsection (e-1), the electronic gaming licensee may not | 22 | | conduct electronic gaming for the calendar year of such | 23 | | requested live races. "; and | 24 | | on page 253, line 3, by replacing "or (iii)" with " or (iii) at |
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| 1 | | a track awarded standardbred racing dates in 2018 and | 2 | | thereafter; or (iv) "; and | 3 | | on page 253, line 26, after the period, by inserting " An | 4 | | eligible race track conducting standardbred racing may have up | 5 | | to 9 inter-track wagering locations. "; and | 6 | | on page 309, by deleting lines 7 through 15; and | 7 | | on page 315, by replacing lines 21 through 25 with the | 8 | | following: | 9 | | " (b) If the organization licensee is operating electronic | 10 | | gaming, then, for the 5-year period beginning on the January 1 | 11 | | of the calendar year immediately following the calendar year | 12 | | during which an organization licensee begins conducting | 13 | | electronic gaming operations pursuant to an electronic gaming | 14 | | license issued under the Illinois Gambling Act, the | 15 | | organization licensee shall make capital expenditures, in an | 16 | | amount equal to no less than 50% of the tax credit under this | 17 | | Section, to the improvement and maintenance of the backstretch, | 18 | | including, but not limited to, backstretch barns, dormitories, | 19 | | and services for backstretch workers. Those capital | 20 | | expenditures must be in addition to, and not in lieu of, the | 21 | | capital expenditures made for backstretch improvements in | 22 | | calendar year 2015, as reported to the Board in the | 23 | | organization licensee's application for racing dates and as |
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| 1 | | certified by the Board. The organization licensee is required | 2 | | to annually submit the list and amounts of these capital | 3 | | expenditures to the Board by January 30th of the year following | 4 | | the expenditure. | 5 | | (c) If the organization licensee is operating electronic | 6 | | gaming in accordance with paragraph (b), then, after the 5-year | 7 | | period beginning on January 1 of the calendar year immediately | 8 | | following the calendar year during which an organization | 9 | | licensee begins conducting electronic gaming operations | 10 | | pursuant to an electronic gaming license issued under the | 11 | | Illinois Gambling Act, the organization license is ineligible | 12 | | to receive a tax credit under this Section. "; and | 13 | | on page 322, lines 20 and 21, by replacing " controlled
by the | 14 | | licensee's race track " with " of which the electronic gaming | 15 | | licensee has operating control "; and | 16 | | on page 326, line 23, by replacing "and 7.13" with "7.13, and | 17 | | 25"; and | 18 | | on page 333, immediately below line 18, by inserting the | 19 | | following: | 20 | | " "Wide area progressive system" means a method of linking | 21 | | progressive slot machines or electronic gaming machines across | 22 | | telecommunication lines as part of a network connecting | 23 | | participating facilities. Wide area progressive systems offer |
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| 1 | | a common progressive jackpot at all participating locations and | 2 | | the award of the jackpot is at random. "; and | 3 | | on page 367, line 2, after the period, by inserting " In order | 4 | | to expedite the application process, the Board may establish | 5 | | rules allowing applicants to acquire criminal background | 6 | | checks and financial integrity reviews as part of the initial | 7 | | application process from a list of vendors approved by the | 8 | | Board. "; and | 9 | | on page 370, line 15, after " casino ", by inserting " or in an | 10 | | airport "; and | 11 | | on page 374, line 24, by replacing " 6 months " with " 120 days "; | 12 | | and | 13 | | on page 379, line 8, by replacing " paragraphs (2) through (5) " | 14 | | with " subsection (e) or paragraph (2), (3), (4), or (5) "; and | 15 | | on page 379, line 20, after the period, by inserting " The fees | 16 | | under this subsection (h) shall be deposited into the Gaming | 17 | | Facilities Fee Revenue
Fund. "; and | 18 | | on page 380, lines 14 and 16, by replacing " per gaming | 19 | | position " each time it appears with " per additional gaming | 20 | | position "; and |
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| 1 | | on page 382, by replacing lines 5 through 7 with " 2,000 | 2 | | positions total. "; and | 3 | | on page 385, by replacing lines 15 through 19 with the | 4 | | following: | 5 | | "7.4, or (iii) it will issue an owners license pursuant to an | 6 | | open
and competitive bidding process, as set forth in Section | 7 | | 7.12,
the open and competitive"; and | 8 | | on page 391, by replacing lines 22 and 23 with " required under | 9 | | subsection (k), (v) conduct live racing in accordance with | 10 | | subsections (e-1), (e-2), and (e-3) of Section 20 of the | 11 | | Illinois Horse Racing Act of 1975 or for a licensee that is | 12 | | only "; and | 13 | | on page 392, lines 5 and 6, by deleting " that had an open | 14 | | backstretch in
2009 "; and | 15 | | on page 392, by replacing lines 14 through 18 with " of this Act | 16 | | that apply to owners licensees. "; and | 17 | | on page 394, lines 4 through 6, by deleting " whose electronic
| 18 | | gaming license originates with an organization licensee that
| 19 | | conducted live racing in calendar year 2016 "; and |
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| 1 | | on page 394, lines 8 through 10, by deleting " whose electronic
| 2 | | gaming license originates with an organization licensee that
| 3 | | conducted live racing in calendar year 2016 "; and | 4 | | on page 397, immediately below line 16, by inserting the | 5 | | following: | 6 | | " (i-5) Under no circumstances shall an electronic gaming | 7 | | licensee conduct electronic gaming at any State or county | 8 | | fair. "; and | 9 | | on page 429, immediately below line 6, by inserting the | 10 | | following: | 11 | | " (a-4.5) Beginning on the first day of the calendar month | 12 | | immediately following 24 months after the effective date of | 13 | | this amendatory Act of the 100th General Assembly and ending on | 14 | | the date gambling operations, commence at a permanent facility | 15 | | with respect to the owners license authorized under paragraph | 16 | | (1) of subsection (e-5) of Section 7 of this Act, a privilege | 17 | | tax is imposed on persons engaged in the business of conducting | 18 | | riverboat or casino gambling or electronic gaming operations, | 19 | | other than licensed managers conducting riverboat gambling | 20 | | operations on behalf of the State, based on the adjusted gross | 21 | | receipts received by such licensee from the gambling games | 22 | | authorized under this Act. The privilege tax shall be the | 23 | | average of the privilege tax, in terms of dollar amounts, | 24 | | calculated pursuant to subsection (a-4) and subsection |
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| 1 | | (a-6). "; and | 2 | | on page 429, by replacing lines 7 through 10 with the | 3 | | following: | 4 | | " (a-5) Beginning on January 1 following the opening of the | 5 | | permanent casino at which gambling operations are conducted | 6 | | pursuant to the Chicago Casino Development Authority Act, a | 7 | | privilege tax is imposed on persons engaged in "; and | 8 | | on page 431, immediately below line 26, by inserting the | 9 | | following: | 10 | | " (a-7) Beginning in the initial adjustment year and through | 11 | | the final adjustment year, if the total obligation imposed | 12 | | pursuant to either subsection (a-5) or (a-6) will result in an | 13 | | owners licensee receiving less after-tax adjusted gross | 14 | | receipts than it received in calendar year 2016, then the total | 15 | | amount of privilege taxes that the owners licensee is required | 16 | | to pay for that calendar year shall be reduced to the extent | 17 | | necessary so that the after-tax adjusted gross receipts in that | 18 | | calendar year equals the after-tax adjusted gross receipts in | 19 | | calendar year 2016, but the privilege tax reduction shall not | 20 | | exceed the annual adjustment cap. If pursuant to this | 21 | | subsection (a-7), the total obligation imposed pursuant to | 22 | | either subsection (a-5) or (a-6) shall be reduced, then the | 23 | | owners licensee shall not receive a refund from the State at | 24 | | the end of the subject calendar year but instead shall be able |
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| 1 | | to apply that amount as a credit against any payments it owes | 2 | | to the State in the following calendar year to satisfy its | 3 | | total obligation under either subsection (a-5) or (a-6). The | 4 | | credit for the final adjustment year shall occur in the | 5 | | calendar year following the final adjustment year. | 6 | | If an owners licensee that conducted gambling operations | 7 | | prior to January 1, 2017 expands its riverboat or casino, | 8 | | including, but not limited to, with respect to its gaming | 9 | | floor, additional non-gaming amenities such as restaurants, | 10 | | bars, and hotels and other additional facilities, and incurs | 11 | | construction and other costs related to such expansion from the | 12 | | effective date of this amendatory Act of the 100th General | 13 | | Assembly until the 5th anniversary of the effective date of | 14 | | this amendatory Act of the 100th General Assembly, then for | 15 | | each $15,000,000 spent for any such construction or other costs | 16 | | related to expansion paid by the owners licensee, the final | 17 | | adjustment year shall be extended by one year and the annual | 18 | | adjustment cap shall increase by 0.2% of adjusted gross | 19 | | receipts during each calendar year until and including the | 20 | | final adjustment year. No further modifications to the final | 21 | | adjustment year or annual adjustment cap shall be made after | 22 | | $75,000,000 is incurred in construction or other costs related | 23 | | to expansion so that the final adjustment year shall not extend | 24 | | beyond the 9th calendar year after the initial adjustment year, | 25 | | not including the initial adjustment year, and the annual | 26 | | adjustment cap shall not exceed 4% of adjusted gross receipts |
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| 1 | | in a particular calendar year. Construction and other costs | 2 | | related to expansion shall include all project related costs, | 3 | | including, but not limited to, all hard and soft costs, | 4 | | financing costs, on or off-site ground, road or utility work, | 5 | | cost of gaming equipment and all other personal property, | 6 | | initial fees assessed for each incremental gaming position, and | 7 | | the cost of incremental land acquired for such expansion. Soft | 8 | | costs shall include, but not be limited to, legal fees, | 9 | | architect, engineering and design costs, other consultant | 10 | | costs, insurance cost, permitting costs, and pre-opening costs | 11 | | related to the expansion, including, but not limited to, any of | 12 | | the following: marketing, real estate taxes, personnel, | 13 | | training, travel and out-of-pocket expenses, supply, | 14 | | inventory, and other costs, and any other project related soft | 15 | | costs. | 16 | | Notwithstanding any other provision of this subsection | 17 | | (a-7), this subsection (a-7) does not apply to an owners | 18 | | licensee unless such owners licensee spends at least | 19 | | $15,000,000 on construction and other costs related to its | 20 | | expansion, excluding the initial fees assessed for each | 21 | | incremental gaming position. | 22 | | This subsection (a-7) does not apply to owners licensees
| 23 | | authorized pursuant to subsection (e-5) of Section 7 of this
| 24 | | Act. | 25 | | For purposes of this subsection (a-7): | 26 | | "Initial adjustment year" means the year commencing on |
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| 1 | | January 1 of the calendar year immediately following the | 2 | | earlier of the following: | 3 | | (1) the commencement of gambling operations, either in | 4 | | a temporary or permanent facility, with respect to the | 5 | | owners license authorized under paragraph (1) of | 6 | | subsection (e-5) of Section 7 of this Act; or | 7 | | (2) 36 months after the effective date of this | 8 | | amendatory Act of the 100th General Assembly, provided the | 9 | | initial adjustment year shall not commence earlier than 24 | 10 | | months after the effective date of this amendatory Act of | 11 | | the 100th General Assembly. | 12 | | "Final adjustment year" means the 4th calendar year after | 13 | | the initial adjustment year, not including the initial | 14 | | adjustment year, and as may be extended further as described in | 15 | | this subsection (a-7). | 16 | | "After-tax adjusted gross receipts" means, for calendar | 17 | | year 2016, the adjusted
gross receipts less privilege taxes | 18 | | paid to the State and for
subsequent calendar years, the | 19 | | adjusted gross receipts less
privilege taxes paid to the State, | 20 | | then divided by the owners
licensee's average number of gaming | 21 | | positions operating in that
calendar year and then multiplied | 22 | | by the owners licensee's
average number of gaming positions | 23 | | operating in calendar year
2016. | 24 | | "Annual adjustment cap" means 3% of adjusted gross receipts | 25 | | in a particular calendar year, and as may be increased further | 26 | | as otherwise described in this subsection (a-7). "; and |
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| 1 | | on page 453, immediately below line 2, by inserting the | 2 | | following: | 3 | | "(230 ILCS 10/25 new) | 4 | | Sec. 25. Wide area progressive systems. The operation of a | 5 | | wide area progressive system is permitted in gambling | 6 | | operations authorized under this Act subject to the following | 7 | | conditions: | 8 | | (1) The method of communication over the wide area | 9 | | progressive system must consist of dedicated on-line | 10 | | communication lines or the equivalent, as determined by the | 11 | | Administrator, or wireless communication, which may be | 12 | | subject to certain restrictions imposed by the | 13 | | Administrator. | 14 | | (2) All communication between each facility location | 15 | | and the central system site must be encrypted. | 16 | | (3) The central system site must be located within the | 17 | | State of Illinois and be equipped with a non-interruptible | 18 | | power supply and the central computer must be capable of | 19 | | on-line data redundancy should hard disk peripherals fail | 20 | | during operation. The office containing the central | 21 | | computer shall be equipped with a surveillance system that | 22 | | has been approved by the Administrator. The wide area | 23 | | progressive system provider shall be required to keep and | 24 | | maintain an entry and exit log for the office containing |
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| 1 | | the central computer. The wide area progressive system | 2 | | provider shall provide access to the office containing the | 3 | | central computer to the Administrator and shall make | 4 | | available to the Administrator all books, records, and | 5 | | information required by the Administrator in fulfilling | 6 | | his or her regulatory purpose. | 7 | | (4) A wide area progressive system provider must | 8 | | suspend play on the wide area progressive system if a | 9 | | communication failure of the system cannot be corrected | 10 | | within 24 consecutive hours. | 11 | | (5) Approval by the Board of any wide area progressive | 12 | | system shall occur only after the Administrator has | 13 | | reviewed the wide area progressive system software and | 14 | | hardware and is satisfied that the operation of the system | 15 | | meets accepted industry standards for wide area | 16 | | progressive system products, as well as any other | 17 | | requirements that the Administrator may impose to ensure | 18 | | the integrity, security, and legal operation of the wide | 19 | | area progressive system. | 20 | | (6) A meter that shows the amount of the common | 21 | | progressive jackpot must be conspicuously displayed at or | 22 | | near the machines to which the jackpot applies. The common | 23 | | progressive jackpot meter need not precisely show the | 24 | | actual moneys in the common progressive jackpot award at | 25 | | each instant. Nothing shall prohibit the use of an odometer | 26 | | or other paced updating progressive display to show updates |
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| 1 | | to the jackpot. When a paced updating display is used and | 2 | | the remote site is communicating to the central computer, | 3 | | the common progressive jackpot meter must display the | 4 | | winning value after the jackpot broadcast is received from | 5 | | the central system. If a common progressive jackpot is | 6 | | recognized in the middle of a systemwide poll cycle, the | 7 | | common progressive jackpot display may contain a value less | 8 | | than the aggregated amount calculated by the central | 9 | | system. The fund values from the remaining portion of the | 10 | | poll cycle shall be received by the central system, but not | 11 | | the local site, in which case the common progressive | 12 | | jackpot amount paid shall always be the higher of the 2 | 13 | | reporting amounts. | 14 | | (7) When a common progressive jackpot is won, the wide | 15 | | area progressive system provider shall have the | 16 | | opportunity to inspect the machine, storage media, the | 17 | | error events received by the central system, and any other | 18 | | data which could reasonably be used to ascertain the | 19 | | validity of the jackpot. | 20 | | (A) The central system shall produce reports that | 21 | | clearly demonstrate the method of arriving at the | 22 | | payoff amount. This shall include the funds | 23 | | contributed beginning with the polling cycle | 24 | | immediately following the previous jackpot and all | 25 | | funds contributed up to and including the polling cycle | 26 | | that includes the jackpot signal. Funds contributed to |
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| 1 | | and registered by the system before the jackpot message | 2 | | is received shall be deemed to have been contributed to | 3 | | the progressive amount prior to the current jackpot. | 4 | | Funds contributed to the system subsequent to the | 5 | | jackpot message's being received, as well as funds | 6 | | contributed to the system before the jackpot message is | 7 | | received by the system but registered after the jackpot | 8 | | message is received at the system, shall be deemed to | 9 | | have been contributed to the progressive amount of the | 10 | | next jackpot. | 11 | | (B) The common progressive jackpot may be | 12 | | disbursed in periodic payments as long as each machine | 13 | | clearly displays the fact that the jackpot shall be | 14 | | paid in such periodic payments. In addition, the number | 15 | | of periodic payments and time between payments must be | 16 | | clearly displayed on the slot machine in a | 17 | | non-misleading manner. | 18 | | (C) A wide area progressive system provider must, | 19 | | upon request, supply to the Board reports that support | 20 | | and verify the economic activity of the system. | 21 | | (8) In calculating adjusted gross revenue, a facility | 22 | | may deduct its pro rata share of the present value of any | 23 | | common progressive jackpots awarded. The deduction shall | 24 | | be listed on the detailed accounting records provided by | 25 | | the wide area progressive system provider. A facility's pro | 26 | | rata share is based on the number of funds in from that |
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| 1 | | facility's machines on the wide area progressive system, | 2 | | compared to the total amount of funds in on the whole | 3 | | system for the time period between jackpots awarded. | 4 | | (9) In the event a facility ceases operations and a | 5 | | progressive jackpot is awarded subsequent to the last day | 6 | | of the final month of operation, the facility may not file | 7 | | an amended wagering tax submission or make a claim for a | 8 | | wagering tax refund based on its contributions to that | 9 | | particular progressive prize pool. | 10 | | (10) A facility, or an entity that is licensed as a | 11 | | manufacturer or distributor, shall provide the wide area | 12 | | progressive system in accordance with a written agreement | 13 | | that shall be reviewed and approved by the Board prior to | 14 | | offering the jackpots. | 15 | | (11) The payment of any common progressive jackpot | 16 | | offered on a wide area progressive system shall be | 17 | | administered by the wide area progressive system provider, | 18 | | and the provider shall have primary liability for payment | 19 | | of any common progressive jackpot the person administers. | 20 | | (12) A wide area progressive system provider shall | 21 | | comply with the following: | 22 | | (A) A reserve shall be established and maintained | 23 | | by the provider of the wide area progressive system in | 24 | | an amount of not less than the sum of the following | 25 | | amounts: | 26 | | (i) the present value of the aggregate |
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| 1 | | remaining balances owed on all jackpots previously | 2 | | won by patrons on the wide area progressive system; | 3 | | (ii) the present value of the amount currently | 4 | | reflected on the jackpot meters of the wide area | 5 | | progressive system; and | 6 | | (iii) the present value of one additional | 7 | | reset of the wide area progressive system. | 8 | | (B) The reserve shall continue to be maintained | 9 | | until all payments owed to winners of the common | 10 | | progressive jackpots have been made. | 11 | | (C) For common progressive jackpots disbursed in | 12 | | periodic payments, any qualified investment shall be | 13 | | purchased within 90 days following notice of the win of | 14 | | the common progressive jackpot, and a copy of such | 15 | | qualified investment shall be provided to the Board | 16 | | within 30 days of purchase. Any qualified investment | 17 | | shall have a surrender value at maturity and shall have | 18 | | a maturity date prior to the date the periodic jackpot | 19 | | payment is required to be made. | 20 | | (D) The person authorized to provide the wide area | 21 | | progressive system shall not be permitted to sell, | 22 | | trade, or otherwise dispose of any qualified | 23 | | investments prior to their maturity unless approval to | 24 | | do so is first obtained from the Board. | 25 | | (E) Upon becoming aware of an event of | 26 | | noncompliance with the terms of the reserve |
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| 1 | | requirement mandated by subparagraph (A) in this | 2 | | paragraph (12), the wide area progressive system | 3 | | provider must immediately notify the Board of such | 4 | | event. An event of noncompliance includes a | 5 | | non-payment of a jackpot periodic payment or a | 6 | | circumstance which may cause the wide area progressive | 7 | | system provider to be unable to fulfill, or which may | 8 | | otherwise impair the person's ability to satisfy, the | 9 | | person's jackpot payment obligations. | 10 | | (F) On a quarterly basis, the wide area progressive | 11 | | system provider must deliver to the Board a calculation | 12 | | of system reserves required under subparagraph (A) in | 13 | | this paragraph (12). The calculation shall come with a | 14 | | certification of financial compliance signed by a duly | 15 | | authorized financial officer of the wide area | 16 | | progressive system provider, on a form prescribed by | 17 | | the Board, validating the calculation. | 18 | | (13) For common progressive jackpots disbursed in | 19 | | periodic payments, subsequent to the date of the win, a | 20 | | winner may be offered the option to receive, in lieu of | 21 | | periodic payments, a discounted single cash payment in the | 22 | | form of a qualified prize option, as that term is defined | 23 | | in Section 451(h) of the Internal Revenue Code of 1986. The | 24 | | wide area progressive system provider shall calculate the | 25 | | single cash payment based on the discount rate. Until the | 26 | | new discount rate becomes effective, the discount rate |
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| 1 | | selected by the wide area progressive system provider shall | 2 | | be used to calculate the single cash payment for all | 3 | | qualified prizes that occur subsequent to the date of the | 4 | | selected discount rate. "; and | 5 | | on page 453, line 4, after "5,", by inserting "20,"; and | 6 | | on page 453, line 4, after "80", by inserting "and by adding | 7 | | Section 90"; and | 8 | | on page 457, immediately below line 5, by inserting the | 9 | | following: | 10 | | "(230 ILCS 40/20)
| 11 | | Sec. 20. Direct dispensing of receipt tickets only. A video | 12 | | gaming
terminal may not
directly dispense coins, cash, tokens, | 13 | | or any other article of exchange or
value except for receipt | 14 | | tickets. Tickets shall be dispensed by
pressing the ticket | 15 | | dispensing button on the video gaming terminal at the end
of | 16 | | one's turn or play. The ticket shall indicate the total amount | 17 | | of credits
and the cash award, the time of day in a 24-hour | 18 | | format showing hours and
minutes, the date, the
terminal serial | 19 | | number, the sequential number of the ticket, and an encrypted
| 20 | | validation number from which the validity of the prize may be | 21 | | determined.
The player shall turn in this ticket to the | 22 | | appropriate
person at the licensed establishment, licensed |
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| 1 | | truck stop establishment, licensed fraternal establishment,
or
| 2 | | licensed veterans establishment
to receive the cash award. The | 3 | | cost
of the credit shall be one cent, 5 cents, 10 cents, or 25 | 4 | | cents, and the maximum
wager played per hand shall not exceed | 5 | | $4 $2 .
No cash award for the maximum wager on any
individual | 6 | | hand shall exceed $1,199, except in the case of a wide area | 7 | | progressive system, as defined in the Illinois Gambling Act, | 8 | | which shall have no limits for cash awards $500 .
| 9 | | (Source: P.A. 96-34, eff. 7-13-09; 96-1410, eff. 7-30-10.)"; | 10 | | and | 11 | | on page 468, immediately below line 25, by inserting the | 12 | | following: | 13 | | "(230 ILCS 40/90 new) | 14 | | Sec. 90. Wide area progressive systems. The operation of a | 15 | | wide area progressive system, as defined in the Illinois | 16 | | Gambling Act, is permitted, subject to the provisions of the | 17 | | Illinois Gambling Act, and the following conditions: | 18 | | (1) Licensed terminal operators and manufacturer or | 19 | | supplier licensees may operate one or more wide area | 20 | | progressive systems in licensed establishments, licensed | 21 | | truck stop establishments, licensed veterans | 22 | | establishments, and licensed fraternal establishments. A | 23 | | designated portion of a player's wager may be allocated to | 24 | | the jackpot. The jackpot may be awarded to a player on any |
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| 1 | | of the video gaming terminals that are linked to the wide | 2 | | area progressive system. | 3 | | (2) A wide area progressive system shall at all times | 4 | | be installed and operated in accordance with relevant | 5 | | requirements of this Act and technical standards of wide | 6 | | area progressive systems. | 7 | | (3) A wide area progressive system shall be operated | 8 | | and administered by participating licensees in accordance | 9 | | with the terms and conditions of a written approved policy, | 10 | | which must be submitted in writing and approved by the | 11 | | Board prior to implementation and must comply with this Act | 12 | | and technical standards of wide area progressive systems. | 13 | | (4) Approved policies must address: | 14 | | (A) responsibility for the funding and payment of | 15 | | all jackpots, fees, and taxes associated with the | 16 | | operation of the wide area progressive system; | 17 | | (B) control and operation of the computer | 18 | | monitoring room required under paragraph (5); and | 19 | | (C) other requirements in the technical standards | 20 | | on wide area progressive systems. | 21 | | (5) A wide area progressive system shall be controlled | 22 | | and operated from a computer monitoring room. The computer | 23 | | monitoring room must: | 24 | | (A) be under the sole possession and control of, | 25 | | and maintained and operated by, employees of the | 26 | | licensee designated in the approved policy for that |
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| 1 | | system; the employees of the licensee may be required | 2 | | to obtain a terminal handler license if the Board | 3 | | determines, after a review of the work being performed, | 4 | | the employees require a license or permit for the | 5 | | protection of the integrity of gaming; | 6 | | (B) have its monitoring equipment subjected to | 7 | | surveillance coverage either by the surveillance | 8 | | system of a licensee or by a dedicated surveillance | 9 | | system maintained by the terminal operator; | 10 | | (C) be accessible through a locked door; the door | 11 | | must be alarmed in a manner that audibly signals the | 12 | | surveillance monitoring room for the surveillance | 13 | | system elected under subparagraph (B) of this | 14 | | paragraph (5); and | 15 | | (D) have a computer monitoring room entry log. | 16 | | This Section shall not be construed to impact the maximum | 17 | | wager as set forth in this Act. ".
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