State of Illinois
90th General Assembly
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90_HB1846

      230 ILCS 10/5             from Ch. 120, par. 2405
      230 ILCS 10/6             from Ch. 120, par. 2406
      230 ILCS 10/7             from Ch. 120, par. 2407
          Amends the Riverboat Gambling Act.  Provides that any new
      license issued to conduct riverboat gambling,  or  any  other
      form  of  gambling  not  currently  authorized, under the Act
      shall be issued only to a municipality or county.   Effective
      immediately.
                                                     LRB9003893LDdv
                                               LRB9003893LDdv
 1        AN  ACT  to  amend the Riverboat Gambling Act by changing
 2    Sections 5, 6, and 7.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  Riverboat  Gambling  Act is amended by
 6    changing Sections 5, 6, and 7 as follows:
 7        (230 ILCS 10/5) (from Ch. 120, par. 2405)
 8        Sec. 5.  Gaming Board.
 9        (a)  (1)  There  is   hereby   established   within   the
10    Department  of  Revenue  an Illinois Gaming Board which shall
11    have the powers and duties specified in  this  Act,  and  all
12    other  powers  necessary  and proper to fully and effectively
13    execute  this  Act  for   the   purpose   of   administering,
14    regulating,  and  enforcing  the system of riverboat gambling
15    established by this Act. Its jurisdiction shall extend  under
16    this   Act   to   every   person,  association,  corporation,
17    partnership, and trust, municipality, and county involved  in
18    riverboat gambling operations in the State of Illinois.
19        (2)  The Board shall consist of 5 members to be appointed
20    by  the  Governor  with the advice and consent of the Senate,
21    one of whom  shall  be  designated  by  the  Governor  to  be
22    chairman.   Each  member shall have a reasonable knowledge of
23    the  practice,   procedure   and   principles   of   gambling
24    operations.  Each  member  shall  either  be  a  resident  of
25    Illinois  or  shall certify that he will become a resident of
26    Illinois before taking office. At least one member  shall  be
27    experienced in law enforcement and criminal investigation, at
28    least  one  member  shall  be  a  certified public accountant
29    experienced in accounting and  auditing,  and  at  least  one
30    member  shall  be  a  lawyer  licensed  to  practice  law  in
31    Illinois.
                            -2-                LRB9003893LDdv
 1        (3)  The  terms of office of the Board members shall be 3
 2    years, except that the terms of office of the  initial  Board
 3    members appointed pursuant to this Act will commence from the
 4    effective  date  of  this  Act and run as follows:  one for a
 5    term ending July 1, 1991, 2 for a term ending July  1,  1992,
 6    and 2 for a term ending July 1, 1993.  Upon the expiration of
 7    the  foregoing  terms,  the  successors of such members shall
 8    serve a term for 3  years  and  until  their  successors  are
 9    appointed  and  qualified  for  like  terms. Vacancies in the
10    Board shall be filled for the unexpired term in  like  manner
11    as  original appointments.  Each member of the Board shall be
12    eligible for reappointment at the discretion of the  Governor
13    with the advice and consent of the Senate.
14        (4)  Each member of the Board shall receive $300 for each
15    day  the Board meets and for each day the member conducts any
16    hearing pursuant to this Act.  Each member of the Board shall
17    also be reimbursed for all actual and necessary expenses  and
18    disbursements incurred in the execution of official duties.
19        (5)  No  person  shall be appointed a member of the Board
20    or continue to be a member of the  Board  who  is,  or  whose
21    spouse,  child,  or  parent  is,  a  member  of  the board of
22    directors of, or a  person  financially  interested  in,  any
23    gambling operation subject to the jurisdiction of this Board,
24    or  any  race track, race meeting, racing association, or the
25    operations  thereof  subject  to  the  jurisdiction  of   the
26    Illinois  Racing Board.  No Board member shall hold any other
27    public office for which he shall receive  compensation  other
28    than  necessary  travel  or  other  incidental  expenses.  No
29    person shall be a member of the Board  who  is  not  of  good
30    moral  character  or  who  has been convicted of, or is under
31    indictment for, a felony under the laws of  Illinois  or  any
32    other state, or the United States.
33        (6)  Any  member  of  the  Board  may  be  removed by the
34    Governor for neglect of duty,  misfeasance,  malfeasance,  or
                            -3-                LRB9003893LDdv
 1    nonfeasance in office.
 2        (7)  Before  entering upon the discharge of the duties of
 3    his or her office, each member of the  Board  shall  take  an
 4    oath that he will faithfully execute the duties of his or her
 5    office  according  to the laws of the State and the rules and
 6    regulations adopted therewith and  shall  give  bond  to  the
 7    State  of  Illinois,  approved by the Governor, in the sum of
 8    $25,000.  Every such bond, when duly executed  and  approved,
 9    shall  be  recorded  in the office of the Secretary of State.
10    Whenever the Governor determines that the bond of any  member
11    of  the  Board  has  become or is likely to become invalid or
12    insufficient, he shall require such member forthwith to renew
13    his bond, which is to  be  approved  by  the  Governor.   Any
14    member  of  the  Board  who  fails to take oath and give bond
15    within 30 days from the date of his or  her  appointment,  or
16    who fails to renew his or her bond within 30 days after it is
17    demanded  by the Governor, shall be guilty of neglect of duty
18    and may be removed by the Governor.  The  cost  of  any  bond
19    given  by any member of the Board under this Section shall be
20    taken to be a part of the necessary expenses of the Board.
21        (8)  Upon the request of the Board, the Department  shall
22    employ  such  personnel  as may be necessary to carry out the
23    functions of the Board.  No person shall be employed to serve
24    the Board who is, or whose spouse, parent  or  child  is,  an
25    official  of,  or  has  a  financial interest in or financial
26    relation with, any operator engaged  in  gambling  operations
27    within  this  State or any organization engaged in conducting
28    horse racing within this State.  Any employee violating these
29    prohibitions shall be subject to termination of employment.
30        (9)  An Administrator shall perform any  and  all  duties
31    that  the  Board  shall assign him or her.  The salary of the
32    Administrator shall be determined by the Board  and  approved
33    by the Director of the Department and, in addition, he or she
34    shall  be  reimbursed  for  all actual and necessary expenses
                            -4-                LRB9003893LDdv
 1    incurred by him or her in discharge of his  or  her  official
 2    duties.    The   Administrator  shall  keep  records  of  all
 3    proceedings of the Board  and  shall  preserve  all  records,
 4    books,  documents  and other papers belonging to the Board or
 5    entrusted to its care.  The Administrator  shall  devote  his
 6    full  time to the duties of the office and shall not hold any
 7    other office or employment.
 8        (b)  The Board shall have general responsibility for  the
 9    implementation  of  this  Act.   Its  duties include, without
10    limitation, the following:
11             (1)  To decide promptly and in reasonable order  all
12        license applications. Any party aggrieved by an action of
13        the  Board  denying, suspending, revoking, restricting or
14        refusing to renew a license may request a hearing  before
15        the  Board.   A request for a hearing must be made to the
16        Board in writing within 5 days after service of notice of
17        the action of the Board.  Notice of  the  action  of  the
18        Board  shall  be served either by personal delivery or by
19        certified mail, postage prepaid, to the aggrieved  party.
20        Notice  served by certified mail shall be deemed complete
21        on the business day following the date of  such  mailing.
22        The  Board  shall conduct all requested hearings promptly
23        and in reasonable order;
24             (2)  To conduct all  hearings  pertaining  to  civil
25        violations   of   this   Act  or  rules  and  regulations
26        promulgated hereunder;
27             (3)  To promulgate such rules and regulations as  in
28        its  judgment  may be necessary to protect or enhance the
29        credibility  and   integrity   of   gambling   operations
30        authorized   by  this  Act  and  the  regulatory  process
31        hereunder;
32             (4)  To provide for the establishment and collection
33        of all license and registration fees and taxes imposed by
34        this Act and the rules and  regulations  issued  pursuant
                            -5-                LRB9003893LDdv
 1        hereto.   All such fees and taxes shall be deposited into
 2        the State Gaming Fund;
 3             (5)  To provide  for  the  levy  and  collection  of
 4        penalties  and  fines  for the violation of provisions of
 5        this  Act  and  the  rules  and  regulations  promulgated
 6        hereunder.   All  such  fines  and  penalties  shall   be
 7        deposited  into the Education Assistance Fund, created by
 8        Public Act 86-0018, of the State of Illinois;
 9             (6)  To be present through its inspectors and agents
10        any  time  gambling  operations  are  conducted  on   any
11        riverboat  for  the  purpose  of  certifying  the revenue
12        thereof,  receiving  complaints  from  the  public,   and
13        conducting  such other investigations into the conduct of
14        the gambling games and the maintenance of  the  equipment
15        as  from  time  to  time the Board may deem necessary and
16        proper;
17             (7)  To review and rule  upon  any  complaint  by  a
18        licensee  regarding  any  investigative procedures of the
19        State that which are unnecessarily disruptive of gambling
20        operations.  The need to inspect and investigate shall be
21        presumed at all times.  The disruption  of  a  licensee's
22        operations  shall  be  proved  by  clear  and  convincing
23        evidence,  and establish that:  (A) the procedures had no
24        reasonable  law  enforcement  purposes,   and   (B)   the
25        procedures  were so disruptive as to unreasonably inhibit
26        gambling operations;
27             (8)  To hold at least one meeting  each  quarter  of
28        the  fiscal  year.   In addition, special meetings may be
29        called by the Chairman or any 2  Board  members  upon  72
30        hours  written notice to each member.  All Board meetings
31        shall be subject to the Open Meetings Act. Three  members
32        of the Board shall constitute a quorum, and 3 votes shall
33        be  required  for  any  final determination by the Board.
34        The Board shall keep a complete and  accurate  record  of
                            -6-                LRB9003893LDdv
 1        all  its meetings. A majority of the members of the Board
 2        shall constitute a quorum  for  the  transaction  of  any
 3        business,  for  the  performance  of any duty, or for the
 4        exercise of any power that which this  Act  requires  the
 5        Board  members to transact, perform, or exercise en banc,
 6        except that, upon order of the Board, one  of  the  Board
 7        members  or an administrative law judge designated by the
 8        Board may conduct any hearing provided for under this Act
 9        or by Board rule and may recommend findings and decisions
10        to the Board.  The Board  member  or  administrative  law
11        judge  conducting  the such hearing shall have all powers
12        and rights granted to the Board in this Act.  The  record
13        made  at the time of the hearing shall be reviewed by the
14        Board, or  a  majority  thereof,  and  the  findings  and
15        decision  of  the  majority of the Board shall constitute
16        the order of the Board in such case;
17             (9)  To maintain records that which are separate and
18        distinct from the records of any  other  State  board  or
19        commission.   Such  records shall be available for public
20        inspection  and  shall  accurately  reflect   all   Board
21        proceedings;
22             (10)  To  file  a  written  annual  report  with the
23        Governor  on  or  before  March  1  each  year  and  such
24        additional reports  as  the  Governor  may  request.  The
25        annual  report  shall include a statement of receipts and
26        disbursements by the Board, actions taken by  the  Board,
27        and  any  additional information and recommendations that
28        which the Board may deem valuable or which  the  Governor
29        may request;
30             (11)  To  review  the  patterns of wagering and wins
31        and losses by persons on  riverboat  gambling  operations
32        under  this  Act, and make recommendation to the Governor
33        and the General Assembly, by  January  31,  1992,  as  to
34        whether limits on wagering losses should be imposed; and
                            -7-                LRB9003893LDdv
 1             (12)  To     assume     responsibility    for    the
 2        administration and enforcement of the Bingo  License  and
 3        Tax  Act, the Charitable Games Act, and the Pull Tabs and
 4        Jar Games Act if such responsibility is delegated  to  it
 5        by the Director of Revenue.
 6        (c)  The  Board  shall  have  jurisdiction over and shall
 7    supervise all gambling operations governed by this Act.   The
 8    Board shall have all powers necessary and proper to fully and
 9    effectively  execute  the  provisions of this Act, including,
10    but not limited to, the following:
11             (1)  To investigate  applicants  and  determine  the
12        eligibility  of  applicants  for  licenses  and to select
13        among competing applicants the applicants that which best
14        serve the interests of the citizens of Illinois.
15             (2)  To have jurisdiction and supervision  over  all
16        riverboat  gambling  operations  in  this  State  and all
17        persons  on  riverboats  where  gambling  operations  are
18        conducted.
19             (3)  To promulgate rules  and  regulations  for  the
20        purpose  of  administering the provisions of this Act and
21        to prescribe  rules,  regulations  and  conditions  under
22        which  all  riverboat  gambling  in  the  State  shall be
23        conducted.  Such rules and regulations are to provide for
24        the prevention of practices  detrimental  to  the  public
25        interest   and   for  the  best  interests  of  riverboat
26        gambling, including rules and regulations  regarding  the
27        inspection  of  such  riverboats  and  the  review of any
28        permits or licenses  necessary  to  operate  a  riverboat
29        under   any  laws  or  rules  regulations  applicable  to
30        riverboats,  and  to  impose  penalties  for   violations
31        thereof.
32             (4)  To enter the office, riverboats, facilities, or
33        other places of business of a licensee, where evidence of
34        the  compliance  or  noncompliance with the provisions of
                            -8-                LRB9003893LDdv
 1        this Act is likely to be found.
 2             (5)  To investigate alleged violations of  this  Act
 3        or  the  rules  of  the  Board  and  to  take appropriate
 4        disciplinary action against a licensee or a holder of  an
 5        occupational   license  for  a  violation,  or  institute
 6        appropriate legal action for enforcement, or both.
 7             (6)  To adopt standards for  the  licensing  of  all
 8        persons  under  this  Act,  as  well as for electronic or
 9        mechanical gambling games,  and  to  establish  fees  for
10        those such licenses.
11             (7)  To   adopt   appropriate   standards   for  all
12        riverboats and facilities.
13             (8)  To  require   that   the   records,   including
14        financial  or other statements of any licensee under this
15        Act, shall be kept in such manner as  prescribed  by  the
16        Board   and  that  any  such  licensee  involved  in  the
17        ownership or management of gambling operations submit  to
18        the  Board  an  annual  balance sheet and profit and loss
19        statement, list of  the  stockholders  or  other  persons
20        having  a  1%  or  greater  beneficial  interest  in  the
21        gambling  activities  of  each  licensee,   and any other
22        information  the  Board  deems  necessary  in  order   to
23        effectively   administer   this   Act   and   all  rules,
24        regulations,  orders,  and  final  decisions  promulgated
25        under this Act.
26             (9)  To conduct hearings, issue  subpoenas  for  the
27        attendance  of  witnesses,  and subpoenas duces tecum for
28        the production of books,  records,  and  other  pertinent
29        documents  in accordance with the Illinois Administrative
30        Procedure Act, and to administer oaths  and  affirmations
31        to  the witnesses, when, in the judgment of the Board, it
32        is necessary to administer or enforce  this  Act  or  the
33        Board rules.
34             (10)  To prescribe a form to be used by any licensee
                            -9-                LRB9003893LDdv
 1        involved  in  the  ownership  or  management  of gambling
 2        operations as an application for employment for its their
 3        employees.
 4             (11)  To revoke or suspend licenses,  as  the  Board
 5        may see fit and in compliance with applicable laws of the
 6        State  regarding administrative procedures, and to review
 7        applications for the renewal of licenses.  The Board  may
 8        suspend an owners license, without notice or hearing upon
 9        a  determination  that the safety or health of patrons or
10        employees is  jeopardized  by  continuing  a  riverboat's
11        operation.  The suspension may remain in effect until the
12        Board  determines  that the cause for suspension has been
13        abated.  The Board may revoke the owners license  upon  a
14        determination  that  the  owner has not made satisfactory
15        progress toward abating the hazard.
16             (12)  To eject or exclude or authorize the  ejection
17        or  exclusion  of,  any  person  from  riverboat gambling
18        facilities where that such person is in violation of this
19        Act, rules and regulations thereunder, or final orders of
20        the  Board,  or  where  that  such  person's  conduct  or
21        reputation is such that his presence within the riverboat
22        gambling facilities may, in the  opinion  of  the  Board,
23        call  into  question  the  honesty  and  integrity of the
24        gambling operations or  interfere  with  orderly  conduct
25        thereof; provided that the propriety of the such ejection
26        or  exclusion  is  subject  to  subsequent hearing by the
27        Board.
28             (13)  To   require   all   licensees   of   gambling
29        operations to utilize a cashless wagering system  whereby
30        all  players'  money  is  converted to tokens, electronic
31        cards, or chips which shall be used only for wagering  in
32        the gambling establishment.
33             (14)  To authorize the routes of a riverboat and the
34        stops that which a riverboat may make.
                            -10-               LRB9003893LDdv
 1             (15)  To  suspend,  revoke, or restrict licenses, to
 2        require the removal of a licensee or  an  employee  of  a
 3        licensee  for  a violation of this Act or a Board rule or
 4        for engaging in a  fraudulent  practice,  and  to  impose
 5        civil  penalties  of up to $5,000 against individuals and
 6        up to $10,000 or an  amount  equal  to  the  daily  gross
 7        receipts, whichever is larger, against licensees for each
 8        violation  of any provision of the Act, any rules adopted
 9        by the Board, any order of the Board or any other  action
10        that  which, in the Board's discretion, is a detriment or
11        impediment to riverboat gambling operations.
12             (16)  To  hire  employees  to  gather   information,
13        conduct  investigations  and  carry  out  any other tasks
14        contemplated under this Act.
15             (17)  To establish minimum levels of insurance to be
16        maintained by licensees.
17             (18)  To authorize  a  licensee  to  sell  or  serve
18        alcoholic  liquors, wine or beer as defined in the Liquor
19        Control Act of 1934 on board  a  riverboat  and  to  have
20        exclusive  authority  to establish the hours for sale and
21        consumption of alcoholic liquor  on  board  a  riverboat,
22        notwithstanding  any  provision of the Liquor Control Act
23        of 1934 or any local ordinance.  The establishment of the
24        hours for sale and consumption  of  alcoholic  liquor  on
25        board  a  riverboat is an exclusive power and function of
26        the State.  A home rule unit may not establish the  hours
27        for  sale  and consumption of alcoholic liquor on board a
28        riverboat.  This amendatory Act of 1991 is a  denial  and
29        limitation  of  home  rule  powers  and  functions  under
30        subsection  (h)  of  Section  6  of  Article  VII  of the
31        Illinois Constitution.
32             (19)  After consultation with the U.S. Army Corps of
33        Engineers, to establish binding emergency orders upon the
34        concurrence of a majority of the  members  of  the  Board
                            -11-               LRB9003893LDdv
 1        regarding  the  navigability  of  rivers  in the event of
 2        extreme weather conditions, acts of God or other  extreme
 3        circumstances.
 4             (20)  To delegate the execution of any of its powers
 5        under  this  Act  for  the  purpose  of administering and
 6        enforcing  this  Act  and  its  rules   and   regulations
 7        hereunder.
 8             (21)  To  take any other action as may be reasonable
 9        or  appropriate  to  enforce  this  Act  and  rules   and
10        regulations hereunder.
11        (d)  The Board may seek and shall receive the cooperation
12    of  the  Department  of State Police in conducting background
13    investigations  of   applicants   and   in   fulfilling   its
14    responsibilities  under  this Section.  Costs incurred by the
15    Department of State Police as a result  of  such  cooperation
16    shall   be   paid  by  the  Board  in  conformance  with  the
17    requirements of subsection 22 of Section  55a  of  The  Civil
18    Administrative Code of Illinois.
19    (Source: P.A. 86-1029; 86-1389; 87-826.)
20        (230 ILCS 10/6) (from Ch. 120, par. 2406)
21        Sec. 6.  Application for Owners License.
22        (a)  A qualified entity person may apply to the Board for
23    an  owners  license to conduct a riverboat gambling operation
24    as provided in this Act.  The application shall  be  made  on
25    forms   provided   by   the  Board  and  shall  contain  such
26    information  as  the  Board  prescribes,  including  but  not
27    limited to the identity of the riverboat on  which  the  such
28    gambling  operation is to be conducted and the exact location
29    where such riverboat will be docked, a certification that the
30    riverboat will be registered under  this  Act  at  all  times
31    during  which  gambling  operations  are  conducted on board,
32    detailed information regarding the ownership  and  management
33    of the applicant, and detailed personal information regarding
                            -12-               LRB9003893LDdv
 1    the applicant.  Information provided on the application shall
 2    be  used  as  a basis for a thorough background investigation
 3    which the Board shall conduct with respect to each applicant.
 4    An incomplete application shall be  cause  for  denial  of  a
 5    license by the Board.
 6        (b)  Applicants  shall  submit  with  their  applications
 7    application   all  documents,  resolutions,  and  letters  of
 8    support  from  the  governing  body   that   represents   the
 9    municipality or county wherein the licensee will dock.
10        (c)  Each  applicant shall disclose the identity of every
11    person, association, trust, or corporation having  a  greater
12    than   1%  direct  or  indirect  pecuniary  interest  in  the
13    riverboat  gambling  operation  with  respect  to  which  the
14    license is sought.  If the disclosed entity is a  trust,  the
15    application  shall  disclose  the  names and addresses of the
16    beneficiaries; if a corporation, the names and  addresses  of
17    all  stockholders  and directors; if a partnership, the names
18    and addresses of all partners, both general and limited; if a
19    municipality or  county,  the  names  and  addresses  of  all
20    members of the governing body of that municipality or county.
21        (d)  An  application  shall  be  filed  with the Board by
22    January 1 of the year preceding any calendar year  for  which
23    an  applicant  seeks an owners license; however, applications
24    for an owners license permitting  operations  on  January  1,
25    1991  shall  be filed by July 1, 1990.  An application fee of
26    $50,000 shall be paid at the time of  filing  to  defray  the
27    costs  associated with the background investigation conducted
28    by the Board.  If  the  costs  of  the  investigation  exceed
29    $50,000, the applicant shall pay the additional amount to the
30    Board.   If  the  costs  of  the  investigation are less than
31    $50,000,  the  applicant  shall  receive  a  refund  of   the
32    remaining  amount.   All  information,  records,  interviews,
33    reports,  statements,  memoranda or other data supplied to or
34    used  by  the  Board  in  the  course  of   its   review   or
                            -13-               LRB9003893LDdv
 1    investigation  of an application for a license under this Act
 2    shall be privileged, strictly confidential and shall be  used
 3    only  for  the  purpose  of  evaluating  an  applicant.  Such
 4    information,  records,   interviews,   reports,   statements,
 5    memoranda  or other data shall not be admissible as evidence,
 6    nor discoverable in any action of any kind in  any  court  or
 7    before  any tribunal, board, agency or person, except for any
 8    action deemed necessary by the Board.
 9        (e)  The Board shall charge each applicant a fee  set  by
10    the Department of State Police to defray the costs associated
11    with  the  search and classification of fingerprints obtained
12    by the Board with respect  to  the  applicant's  application.
13    These fees shall be paid into the State Police Services Fund.
14        (f)  The  licensed  owner  shall  be  the  entity  person
15    primarily   responsible   for  the  boat  itself.   Only  one
16    riverboat gambling operation may be authorized by  the  Board
17    on any riverboat.  The applicant must identify each riverboat
18    it intends to use and certify that the riverboat: (1) has the
19    authorized  capacity  required in this Act; (2) is accessible
20    to disabled persons; (3)  is  either  a  replica  of  a  19th
21    century Illinois riverboat or of a casino cruise ship design;
22    and  (4)  is fully registered and licensed in accordance with
23    any applicable laws.
24        (g)  A person who knowingly makes a false statement on an
25    application is guilty of a Class A misdemeanor.
26    (Source: P.A. 86-1029; 86-1389.)
27        (230 ILCS 10/7) (from Ch. 120, par. 2407)
28        Sec. 7.  Owners Licenses.
29        (a)  The Board shall issue owners  licenses  to  persons,
30    firms,  or  corporations,  municipalities,  or  counties that
31    which apply for such licenses upon payment to  the  Board  of
32    the non-refundable license fee set by the Board, upon payment
33    of  a $25,000 license fee for the first year of operation and
                            -14-               LRB9003893LDdv
 1    a $5,000 license fee for each  succeeding  year  and  upon  a
 2    determination by the Board that the applicant is eligible for
 3    an  owners  license pursuant to this Act and the rules of the
 4    Board.  Beginning on the effective date  of  this  amendatory
 5    Act  of 1997, no license to conduct riverboat gambling or any
 6    other form of gambling under this Act shall be issued  to  an
 7    entity other than a municipality or county.  The provision in
 8    the  previous  sentence  shall  not  affect  the  renewal  of
 9    existing  licenses.   A  license  issued to a municipality or
10    county after the effective date of  this  amendatory  Act  of
11    1997  may not be transferred to any entity other than another
12    municipality or county provided, however, that a municipality
13    or county may contract with a private entity to  operate  the
14    riverboat  or  other gambling facility that may be authorized
15    under this Act. A person, firm, or corporation, municipality,
16    or county is ineligible to receive an owners license if:
17             (1)  the person has been convicted of a felony under
18        the laws of this State, any other state,  or  the  United
19        States;
20             (2)  the  person has been convicted of any violation
21        of  Article  28  of  the  Criminal  Code  of   1961,   or
22        substantially similar laws of any other jurisdiction;
23             (3)  the  person  has submitted an application for a
24        license  under  this  Act  that  which   contains   false
25        information;
26             (4)  the person is a member of the Board;
27             (5)  a  person defined in (1), (2), (3) or (4) is an
28        officer, director or managerial employee of the  firm  or
29        corporation;
30             (6)  the   firm  or  corporation  employs  a  person
31        defined in (1), (2), (3) or (4) who participates  in  the
32        management or operation of gambling operations authorized
33        under this Act;
34             (7)  the person, firm or corporation  owns more than
                            -15-               LRB9003893LDdv
 1        a  10% ownership interest in any entity holding an owners
 2        license issued under this Act; or
 3             (8)  a license of the person,  firm  or  corporation
 4        issued  under  this  Act,  or a license to own or operate
 5        gambling facilities in any other jurisdiction,  has  been
 6        revoked.
 7        (b)  In determining whether to grant an owners license to
 8    an applicant, the Board shall consider:
 9             (1)  the   character,   reputation,  experience  and
10        financial integrity of the applicants and of any other or
11        separate person that either:
12                  (A)  controls,  directly  or  indirectly,  such
13             applicant, or
14                  (B)  is controlled, directly or indirectly,  by
15             such  applicant  or by a person that which controls,
16             directly or indirectly, such applicant;
17             (2)  the facilities or proposed facilities  for  the
18        conduct of riverboat gambling;
19             (3)  the  highest  prospective  total  revenue to be
20        derived by  the  State  from  the  conduct  of  riverboat
21        gambling;
22             (4)  the  good faith affirmative action plan of each
23        applicant to recruit, train and upgrade minorities in all
24        employment classifications;
25             (5)  the  financial  ability  of  the  applicant  to
26        purchase and maintain  adequate  liability  and  casualty
27        insurance;
28             (6)  whether     the    applicant    has    adequate
29        capitalization to provide and maintain, for the  duration
30        of a license, a riverboat; and
31             (7)  the  extent  to  which the applicant exceeds or
32        meets other standards  for  the  issuance  of  an  owners
33        license which the Board may adopt by rule.
34        (c)  Each  owners  license  shall specify the place where
                            -16-               LRB9003893LDdv
 1    riverboats shall operate and dock.
 2        (d)  Each applicant shall submit with his application, on
 3    forms provided by the Board, 2 sets of his fingerprints.
 4        (e)  The Board may issue up to  10  licenses  authorizing
 5    the  holders  of  such  licenses  to  own riverboats.  In the
 6    application for an owners license, the applicant shall  state
 7    the  dock  at  which the riverboat is based and the navigable
 8    stream on which the riverboat will operate.  The Board  shall
 9    issue 5 licenses to become effective not earlier than January
10    1,  1991.  Four  of  such  licenses shall authorize riverboat
11    gambling  on  the  Mississippi  River,  one  of  which  shall
12    authorize riverboat gambling from a home dock in the city  of
13    East  St.  Louis. The other license shall authorize riverboat
14    gambling on the Illinois River south of Marshall County.  The
15    Board  shall  issue  1 additional license to become effective
16    not  earlier  than  March  1,  1992,  which  shall  authorize
17    riverboat gambling on the Des Plaines River in  Will  County.
18    The Board may issue 4 additional licenses to become effective
19    not  earlier than March 1, 1992. In determining the navigable
20    streams upon which  riverboats  will  operate  with  licenses
21    effective on or after March 1, 1992, the Board shall consider
22    the  economic benefit which riverboat gambling confers on the
23    State, and shall seek to assure that all regions of the State
24    share in the economic benefits of riverboat gambling.
25        In granting all licenses, the Board  may  give  favorable
26    consideration  to  economically depressed areas of the State,
27    to applicants presenting plans which provide for  significant
28    economic  development  over  a  large geographic area, and to
29    applicants who currently operate non-gambling  riverboats  in
30    Illinois.  The Board shall review all applications for owners
31    licenses,  and  shall  inform  each  applicant of the Board's
32    decision.
33          The Board may revoke the owners license of  a  licensee
34    which  fails  to  begin  regular  riverboat cruises within 12
                            -17-               LRB9003893LDdv
 1    months of receipt of the Board's approval of the  application
 2    if  the  Board  determines  that license revocation is in the
 3    best interests of the State.
 4        (f)  The first 10 owners licenses issued under  this  Act
 5    shall  permit  the  holder  to  own  up  to  2 riverboats and
 6    equipment thereon for a period of 3 years after the effective
 7    date of the license. Holders of the first 10 owners  licenses
 8    must  pay  the  annual  license  fee  for each of the 3 years
 9    during which they are authorized to own riverboats.
10        (g)  Upon the termination, expiration  or  revocation  of
11    each  of the first 10 licenses, which shall be issued for a 3
12    year period, all licenses are renewable annually upon payment
13    of the fee and a determination by the Board that the licensee
14    continues to meet all of the requirements of this Act and the
15    Board's rules.
16        (h)  An owners license shall entitle the licensee to  own
17    up  to  2  riverboats.   A licensee shall limit the number of
18    gambling participants to 1,200 for any such  owners  license.
19    Riverboats  licensed  to operate on the Mississippi River and
20    the Illinois River south of Marshall  County  shall  have  an
21    authorized  capacity  of  at  least  500  persons.  Any other
22    riverboat licensed under this Act shall  have  an  authorized
23    capacity of at least 400 persons.
24        (i)  A licensed owner is authorized to apply to the Board
25    for  and,  if approved therefor, to receive all licenses from
26    the  Board  necessary  for  the  operation  of  a  riverboat,
27    including a liquor license, a license to  prepare  and  serve
28    food  for  human  consumption,  and other necessary licenses.
29    All use, occupation and excise taxes which apply to the  sale
30    of  food and beverages in this State and all taxes imposed on
31    the sale or use of tangible personal property apply  to  such
32    sales aboard the riverboat.
33        (j)  None  of the first 5 licenses issued by the Board to
34    become effective not  earlier  than  January  1,  1991  shall
                            -18-               LRB9003893LDdv
 1    authorize  a  riverboat  to  dock  in  a  municipality with a
 2    population of under 2,000; however, this restriction does not
 3    apply to any additional  licenses  issued  by  the  Board  to
 4    become  effective  not earlier than March 1, 1992.  The Board
 5    may issue a license authorizing a  riverboat  to  dock  in  a
 6    municipality  only  if, prior to the issuance of the license,
 7    the governing body of the municipality has by a majority vote
 8    approved the docking of riverboats in the municipality.   The
 9    Board  may issue a license authorizing a riverboat to dock in
10    areas of a county outside any municipality only if, prior  to
11    the issuance of the license, the governing body of the county
12    has  by a majority vote approved of the docking of riverboats
13    within such areas.
14        (k)  Nothing in this Act shall be interpreted to prohibit
15    a licensed owner from operating a school for the training  of
16    any occupational licensee.
17    (Source: P.A. 86-1029; 86-1389; 86-1475; 87-826.)
18        Section  99.  Effective date.  This Act takes effect upon
19    becoming law.

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