[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ House Amendment 001 ] |
90_HB2247
230 ILCS 10/3.5 new
230 ILCS 10/5 from Ch. 120, par. 2405
230 ILCS 10/6 from Ch. 120, par. 2406
230 ILCS 10/13 from Ch. 120, par. 2413
230 ILCS 10/14.1 new
Amends the Riverboat Gambling Act. Requires an advisory
referendum before dockside gambling may be authorized under
the Act. Requires a new applicant for an owners license to
competitively bid what percentage of adjusted gross receipts
it shall pay as a wagering tax, with the new license going to
the highest bidder. Prohibits licensees from making any
political contributions. Requires each licensee to make a
quarterly report to the Board indicating profits and losses.
LRB9004595LDdvA
LRB9004595LDdvA
1 AN ACT to amend the Riverboat Gambling Act by changing
2 Sections 5, 6, and 13 and adding Sections 3.5 and 14.1.
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 13 and adding Sections 3.5 and
7 14.1 as follows:
8 (230 ILCS 10/3.5 new)
9 Sec. 3.5. Dockside gambling advisory referendum. Before
10 a licensee may conduct dockside gambling under this Act, the
11 municipality where the riverboat docks, or the county where
12 the riverboat docks if it does not dock within a
13 municipality, shall submit an advisory question to the voters
14 of the municipality or county, as the case may be, of whether
15 dockside gambling should be permitted in the municipality or
16 county.
17 (230 ILCS 10/5) (from Ch. 120, par. 2405)
18 Sec. 5. Gaming Board.
19 (a) (1) There is hereby established within the
20 Department of Revenue an Illinois Gaming Board which shall
21 have the powers and duties specified in this Act, and all
22 other powers necessary and proper to fully and effectively
23 execute this Act for the purpose of administering,
24 regulating, and enforcing the system of riverboat gambling
25 established by this Act. Its jurisdiction shall extend under
26 this Act to every person, association, corporation,
27 partnership and trust involved in riverboat gambling
28 operations in the State of Illinois.
29 (2) The Board shall consist of 5 members to be appointed
30 by the Governor with the advice and consent of the Senate,
-2- LRB9004595LDdvA
1 one of whom shall be designated by the Governor to be
2 chairman. Each member shall have a reasonable knowledge of
3 the practice, procedure and principles of gambling
4 operations. Each member shall either be a resident of
5 Illinois or shall certify that he will become a resident of
6 Illinois before taking office. At least one member shall be
7 experienced in law enforcement and criminal investigation, at
8 least one member shall be a certified public accountant
9 experienced in accounting and auditing, and at least one
10 member shall be a lawyer licensed to practice law in
11 Illinois.
12 (3) The terms of office of the Board members shall be 3
13 years, except that the terms of office of the initial Board
14 members appointed pursuant to this Act will commence from the
15 effective date of this Act and run as follows: one for a
16 term ending July 1, 1991, 2 for a term ending July 1, 1992,
17 and 2 for a term ending July 1, 1993. Upon the expiration of
18 the foregoing terms, the successors of such members shall
19 serve a term for 3 years and until their successors are
20 appointed and qualified for like terms. Vacancies in the
21 Board shall be filled for the unexpired term in like manner
22 as original appointments. Each member of the Board shall be
23 eligible for reappointment at the discretion of the Governor
24 with the advice and consent of the Senate.
25 (4) Each member of the Board shall receive $300 for each
26 day the Board meets and for each day the member conducts any
27 hearing pursuant to this Act. Each member of the Board shall
28 also be reimbursed for all actual and necessary expenses and
29 disbursements incurred in the execution of official duties.
30 (5) No person shall be appointed a member of the Board
31 or continue to be a member of the Board who is, or whose
32 spouse, child or parent is, a member of the board of
33 directors of, or a person financially interested in, any
34 gambling operation subject to the jurisdiction of this Board,
-3- LRB9004595LDdvA
1 or any race track, race meeting, racing association or the
2 operations thereof subject to the jurisdiction of the
3 Illinois Racing Board. No Board member shall hold any other
4 public office for which he shall receive compensation other
5 than necessary travel or other incidental expenses. No
6 person shall be a member of the Board who is not of good
7 moral character or who has been convicted of, or is under
8 indictment for, a felony under the laws of Illinois or any
9 other state, or the United States.
10 (6) Any member of the Board may be removed by the
11 Governor for neglect of duty, misfeasance, malfeasance, or
12 nonfeasance in office.
13 (7) Before entering upon the discharge of the duties of
14 his office, each member of the Board shall take an oath that
15 he will faithfully execute the duties of his office according
16 to the laws of the State and the rules and regulations
17 adopted therewith and shall give bond to the State of
18 Illinois, approved by the Governor, in the sum of $25,000.
19 Every such bond, when duly executed and approved, shall be
20 recorded in the office of the Secretary of State. Whenever
21 the Governor determines that the bond of any member of the
22 Board has become or is likely to become invalid or
23 insufficient, he shall require such member forthwith to renew
24 his bond, which is to be approved by the Governor. Any
25 member of the Board who fails to take oath and give bond
26 within 30 days from the date of his appointment, or who fails
27 to renew his bond within 30 days after it is demanded by the
28 Governor, shall be guilty of neglect of duty and may be
29 removed by the Governor. The cost of any bond given by any
30 member of the Board under this Section shall be taken to be a
31 part of the necessary expenses of the Board.
32 (8) Upon the request of the Board, the Department shall
33 employ such personnel as may be necessary to carry out the
34 functions of the Board. No person shall be employed to serve
-4- LRB9004595LDdvA
1 the Board who is, or whose spouse, parent or child is, an
2 official of, or has a financial interest in or financial
3 relation with, any operator engaged in gambling operations
4 within this State or any organization engaged in conducting
5 horse racing within this State. Any employee violating these
6 prohibitions shall be subject to termination of employment.
7 (9) An Administrator shall perform any and all duties
8 that the Board shall assign him. The salary of the
9 Administrator shall be determined by the Board and approved
10 by the Director of the Department and, in addition, he shall
11 be reimbursed for all actual and necessary expenses incurred
12 by him in discharge of his official duties. The
13 Administrator shall keep records of all proceedings of the
14 Board and shall preserve all records, books, documents and
15 other papers belonging to the Board or entrusted to its care.
16 The Administrator shall devote his full time to the duties of
17 the office and shall not hold any other office or employment.
18 (b) The Board shall have general responsibility for the
19 implementation of this Act. Its duties include, without
20 limitation, the following:
21 (1) To decide promptly and in reasonable order all
22 license applications. Any party aggrieved by an action of
23 the Board denying, suspending, revoking, restricting or
24 refusing to renew a license may request a hearing before
25 the Board. A request for a hearing must be made to the
26 Board in writing within 5 days after service of notice of
27 the action of the Board. Notice of the action of the
28 Board shall be served either by personal delivery or by
29 certified mail, postage prepaid, to the aggrieved party.
30 Notice served by certified mail shall be deemed complete
31 on the business day following the date of such mailing.
32 The Board shall conduct all requested hearings promptly
33 and in reasonable order;
34 (2) To conduct all hearings pertaining to civil
-5- LRB9004595LDdvA
1 violations of this Act or rules and regulations
2 promulgated hereunder;
3 (3) To promulgate such rules and regulations as in
4 its judgment may be necessary to protect or enhance the
5 credibility and integrity of gambling operations
6 authorized by this Act and the regulatory process
7 hereunder;
8 (4) To provide for the establishment and collection
9 of all license and registration fees and taxes imposed by
10 this Act and the rules and regulations issued pursuant
11 hereto. All such fees and taxes shall be deposited into
12 the State Gaming Fund;
13 (5) To provide for the levy and collection of
14 penalties and fines for the violation of provisions of
15 this Act and the rules and regulations promulgated
16 hereunder. All such fines and penalties shall be
17 deposited into the Education Assistance Fund, created by
18 Public Act 86-0018, of the State of Illinois;
19 (6) To be present through its inspectors and agents
20 any time gambling operations are conducted on any
21 riverboat for the purpose of certifying the revenue
22 thereof, receiving complaints from the public, and
23 conducting such other investigations into the conduct of
24 the gambling games and the maintenance of the equipment
25 as from time to time the Board may deem necessary and
26 proper;
27 (7) To review and rule upon any complaint by a
28 licensee regarding any investigative procedures of the
29 State which are unnecessarily disruptive of gambling
30 operations. The need to inspect and investigate shall be
31 presumed at all times. The disruption of a licensee's
32 operations shall be proved by clear and convincing
33 evidence, and establish that: (A) the procedures had no
34 reasonable law enforcement purposes, and (B) the
-6- LRB9004595LDdvA
1 procedures were so disruptive as to unreasonably inhibit
2 gambling operations;
3 (8) To hold at least one meeting each quarter of
4 the fiscal year. In addition, special meetings may be
5 called by the Chairman or any 2 Board members upon 72
6 hours written notice to each member. All Board meetings
7 shall be subject to the Open Meetings Act. Three members
8 of the Board shall constitute a quorum, and 3 votes shall
9 be required for any final determination by the Board.
10 The Board shall keep a complete and accurate record of
11 all its meetings. A majority of the members of the Board
12 shall constitute a quorum for the transaction of any
13 business, for the performance of any duty, or for the
14 exercise of any power which this Act requires the Board
15 members to transact, perform or exercise en banc, except
16 that, upon order of the Board, one of the Board members
17 or an administrative law judge designated by the Board
18 may conduct any hearing provided for under this Act or by
19 Board rule and may recommend findings and decisions to
20 the Board. The Board member or administrative law judge
21 conducting such hearing shall have all powers and rights
22 granted to the Board in this Act. The record made at the
23 time of the hearing shall be reviewed by the Board, or a
24 majority thereof, and the findings and decision of the
25 majority of the Board shall constitute the order of the
26 Board in such case;
27 (9) To maintain records which are separate and
28 distinct from the records of any other State board or
29 commission. Such records shall be available for public
30 inspection and shall accurately reflect all Board
31 proceedings;
32 (10) To file a written annual report with the
33 Governor on or before March 1 each year and such
34 additional reports as the Governor may request. The
-7- LRB9004595LDdvA
1 annual report shall include a statement of receipts and
2 disbursements by the Board, actions taken by the Board,
3 and any additional information and recommendations which
4 the Board may deem valuable or which the Governor may
5 request;
6 (11) To review the patterns of wagering and wins
7 and losses by persons on riverboat gambling operations
8 under this Act, and make recommendation to the Governor
9 and the General Assembly, by January 31, 1992, as to
10 whether limits on wagering losses should be imposed; and
11 (12) To assume responsibility for the
12 administration and enforcement of the Bingo License and
13 Tax Act, the Charitable Games Act, and the Pull Tabs and
14 Jar Games Act if such responsibility is delegated to it
15 by the Director of Revenue.
16 (13) To require each licensee under this Act to
17 file a quarterly report with the Board of its profits and
18 losses, which shall be a public document.
19 (c) The Board shall have jurisdiction over and shall
20 supervise all gambling operations governed by this Act. The
21 Board shall have all powers necessary and proper to fully and
22 effectively execute the provisions of this Act, including,
23 but not limited to, the following:
24 (1) To investigate applicants and determine the
25 eligibility of applicants for licenses and to select
26 among competing applicants the applicants which best
27 serve the interests of the citizens of Illinois.
28 (2) To have jurisdiction and supervision over all
29 riverboat gambling operations in this State and all
30 persons on riverboats where gambling operations are
31 conducted.
32 (3) To promulgate rules and regulations for the
33 purpose of administering the provisions of this Act and
34 to prescribe rules, regulations and conditions under
-8- LRB9004595LDdvA
1 which all riverboat gambling in the State shall be
2 conducted. Such rules and regulations are to provide for
3 the prevention of practices detrimental to the public
4 interest and for the best interests of riverboat
5 gambling, including rules and regulations regarding the
6 inspection of such riverboats and the review of any
7 permits or licenses necessary to operate a riverboat
8 under any laws or regulations applicable to riverboats,
9 and to impose penalties for violations thereof.
10 (4) To enter the office, riverboats, facilities, or
11 other places of business of a licensee, where evidence of
12 the compliance or noncompliance with the provisions of
13 this Act is likely to be found.
14 (5) To investigate alleged violations of this Act
15 or the rules of the Board and to take appropriate
16 disciplinary action against a licensee or a holder of an
17 occupational license for a violation, or institute
18 appropriate legal action for enforcement, or both.
19 (6) To adopt standards for the licensing of all
20 persons under this Act, as well as for electronic or
21 mechanical gambling games, and to establish fees for such
22 licenses.
23 (7) To adopt appropriate standards for all
24 riverboats and facilities.
25 (8) To require that the records, including
26 financial or other statements of any licensee under this
27 Act, shall be kept in such manner as prescribed by the
28 Board and that any such licensee involved in the
29 ownership or management of gambling operations submit to
30 the Board an annual balance sheet and profit and loss
31 statement, list of the stockholders or other persons
32 having a 1% or greater beneficial interest in the
33 gambling activities of each licensee, and any other
34 information the Board deems necessary in order to
-9- LRB9004595LDdvA
1 effectively administer this Act and all rules,
2 regulations, orders and final decisions promulgated under
3 this Act.
4 (9) To conduct hearings, issue subpoenas for the
5 attendance of witnesses and subpoenas duces tecum for the
6 production of books, records and other pertinent
7 documents in accordance with the Illinois Administrative
8 Procedure Act, and to administer oaths and affirmations
9 to the witnesses, when, in the judgment of the Board, it
10 is necessary to administer or enforce this Act or the
11 Board rules.
12 (10) To prescribe a form to be used by any licensee
13 involved in the ownership or management of gambling
14 operations as an application for employment for their
15 employees.
16 (11) To revoke or suspend licenses, as the Board
17 may see fit and in compliance with applicable laws of the
18 State regarding administrative procedures, and to review
19 applications for the renewal of licenses. The Board may
20 suspend an owners license, without notice or hearing upon
21 a determination that the safety or health of patrons or
22 employees is jeopardized by continuing a riverboat's
23 operation. The suspension may remain in effect until the
24 Board determines that the cause for suspension has been
25 abated. The Board may revoke the owners license upon a
26 determination that the owner has not made satisfactory
27 progress toward abating the hazard.
28 (12) To eject or exclude or authorize the ejection
29 or exclusion of, any person from riverboat gambling
30 facilities where such person is in violation of this Act,
31 rules and regulations thereunder, or final orders of the
32 Board, or where such person's conduct or reputation is
33 such that his presence within the riverboat gambling
34 facilities may, in the opinion of the Board, call into
-10- LRB9004595LDdvA
1 question the honesty and integrity of the gambling
2 operations or interfere with orderly conduct thereof;
3 provided that the propriety of such ejection or exclusion
4 is subject to subsequent hearing by the Board.
5 (13) To require all licensees of gambling
6 operations to utilize a cashless wagering system whereby
7 all players' money is converted to tokens, electronic
8 cards, or chips which shall be used only for wagering in
9 the gambling establishment.
10 (14) To authorize the routes of a riverboat and the
11 stops which a riverboat may make.
12 (15) To suspend, revoke or restrict licenses, to
13 require the removal of a licensee or an employee of a
14 licensee for a violation of this Act or a Board rule or
15 for engaging in a fraudulent practice, and to impose
16 civil penalties of up to $5,000 against individuals and
17 up to $10,000 or an amount equal to the daily gross
18 receipts, whichever is larger, against licensees for each
19 violation of any provision of the Act, any rules adopted
20 by the Board, any order of the Board or any other action
21 which, in the Board's discretion, is a detriment or
22 impediment to riverboat gambling operations.
23 (16) To hire employees to gather information,
24 conduct investigations and carry out any other tasks
25 contemplated under this Act.
26 (17) To establish minimum levels of insurance to be
27 maintained by licensees.
28 (18) To authorize a licensee to sell or serve
29 alcoholic liquors, wine or beer as defined in the Liquor
30 Control Act of 1934 on board a riverboat and to have
31 exclusive authority to establish the hours for sale and
32 consumption of alcoholic liquor on board a riverboat,
33 notwithstanding any provision of the Liquor Control Act
34 of 1934 or any local ordinance. The establishment of the
-11- LRB9004595LDdvA
1 hours for sale and consumption of alcoholic liquor on
2 board a riverboat is an exclusive power and function of
3 the State. A home rule unit may not establish the hours
4 for sale and consumption of alcoholic liquor on board a
5 riverboat. This amendatory Act of 1991 is a denial and
6 limitation of home rule powers and functions under
7 subsection (h) of Section 6 of Article VII of the
8 Illinois Constitution.
9 (19) After consultation with the U.S. Army Corps of
10 Engineers, to establish binding emergency orders upon the
11 concurrence of a majority of the members of the Board
12 regarding the navigability of rivers in the event of
13 extreme weather conditions, acts of God or other extreme
14 circumstances.
15 (20) To delegate the execution of any of its powers
16 under this Act for the purpose of administering and
17 enforcing this Act and its rules and regulations
18 hereunder.
19 (21) To take any other action as may be reasonable
20 or appropriate to enforce this Act and rules and
21 regulations hereunder.
22 (d) The Board may seek and shall receive the cooperation
23 of the Department of State Police in conducting background
24 investigations of applicants and in fulfilling its
25 responsibilities under this Section. Costs incurred by the
26 Department of State Police as a result of such cooperation
27 shall be paid by the Board in conformance with the
28 requirements of subsection 22 of Section 55a of The Civil
29 Administrative Code of Illinois.
30 (Source: P.A. 86-1029; 86-1389; 87-826.)
31 (230 ILCS 10/6) (from Ch. 120, par. 2406)
32 Sec. 6. Application for Owners License.
33 (a) A qualified person may apply to the Board for an
-12- LRB9004595LDdvA
1 owners license to conduct a riverboat gambling operation as
2 provided in this Act. The application shall be made on forms
3 provided by the Board and shall contain such information as
4 the Board prescribes, including but not limited to the
5 identity of the riverboat on which such gambling operation is
6 to be conducted and the exact location where such riverboat
7 will be docked, a certification that the riverboat will be
8 registered under this Act at all times during which gambling
9 operations are conducted on board, detailed information
10 regarding the ownership and management of the applicant, and
11 detailed personal information regarding the applicant.
12 Information provided on the application shall be used as a
13 basis for a thorough background investigation which the Board
14 shall conduct with respect to each applicant. Beginning on
15 the effective date of this amendatory Act of 1997, for a
16 newly authorized owners license, all applicants shall bid
17 competitively for a new license. The Board shall grant new
18 licenses based, in addition to the factors in Section 7, on
19 what percentage of adjusted gross receipts the applicant bids
20 to pay to the State as a wagering tax. The qualified
21 applicant that bids to pay the highest wagering tax shall be
22 awarded the license. An incomplete application shall be
23 cause for denial of a license by the Board.
24 (b) Each applicant Applicants shall submit with its
25 their application all documents, resolutions, and letters of
26 support from the governing body that represents the
27 municipality or county wherein the licensee will dock.
28 (c) Each applicant shall disclose the identity of every
29 person, association, trust, or corporation having a greater
30 than 1% direct or indirect pecuniary interest in the
31 riverboat gambling operation with respect to which the
32 license is sought. If the disclosed entity is a trust, the
33 application shall disclose the names and addresses of the
34 beneficiaries; if a corporation, the names and addresses of
-13- LRB9004595LDdvA
1 all stockholders and directors; if a partnership, the names
2 and addresses of all partners, both general and limited.
3 (d) An application shall be filed with the Board by
4 January 1 of the year preceding any calendar year for which
5 an applicant seeks an owners license; however, applications
6 for an owners license permitting operations on January 1,
7 1991 shall be filed by July 1, 1990. An application fee of
8 $50,000 shall be paid at the time of filing to defray the
9 costs associated with the background investigation conducted
10 by the Board. If the costs of the investigation exceed
11 $50,000, the applicant shall pay the additional amount to the
12 Board. If the costs of the investigation are less than
13 $50,000, the applicant shall receive a refund of the
14 remaining amount. All information, records, interviews,
15 reports, statements, memoranda or other data supplied to or
16 used by the Board in the course of its review or
17 investigation of an application for a license under this Act
18 shall be privileged, strictly confidential and shall be used
19 only for the purpose of evaluating an applicant. Such
20 information, records, interviews, reports, statements,
21 memoranda or other data shall not be admissible as evidence,
22 nor discoverable in any action of any kind in any court or
23 before any tribunal, board, agency, or person, except for any
24 action deemed necessary by the Board.
25 (e) The Board shall charge each applicant a fee set by
26 the Department of State Police to defray the costs associated
27 with the search and classification of fingerprints obtained
28 by the Board with respect to the applicant's application.
29 These fees shall be paid into the State Police Services Fund.
30 (f) The licensed owner shall be the person primarily
31 responsible for the boat itself. Only one riverboat gambling
32 operation may be authorized by the Board on any riverboat.
33 The applicant must identify each riverboat it intends to use
34 and certify that the riverboat: (1) has the authorized
-14- LRB9004595LDdvA
1 capacity required in this Act; (2) is accessible to disabled
2 persons; (3) is either a replica of a 19th century Illinois
3 riverboat or of a casino cruise ship design; and (4) is fully
4 registered and licensed in accordance with any applicable
5 laws.
6 (g) A person who knowingly makes a false statement on an
7 application is guilty of a Class A misdemeanor.
8 (Source: P.A. 86-1029; 86-1389.)
9 (230 ILCS 10/13) (from Ch. 120, par. 2413)
10 Sec. 13. Wagering tax; Rate; Distribution.
11 (a) For licenses issued before the effective date of
12 this amendatory Act of 1997 a tax is imposed on the adjusted
13 gross receipts received from gambling games authorized under
14 this Act at the rate of 20%. For licenses issued on or after
15 the effective date of this amendatory Act of 1997, a tax is
16 imposed on the adjusted gross receipts received from gambling
17 games authorized under this Act at the rate set in the
18 applicant's bid for its license, but in no case less than
19 20%. The taxes imposed by this Section shall be paid by the
20 licensed owner to the Board after the close of the day when
21 the wagers were made.
22 (b) Twenty-five percent (25%) of the tax revenue
23 deposited in the State Gaming Fund under this Section shall
24 be paid, subject to appropriation by the General Assembly, to
25 the unit of local government which is designated as the home
26 dock of the riverboat.
27 (c) Appropriations, as approved by the General Assembly,
28 may be made from the State Gaming Fund to the Department of
29 Revenue and the Department of State Police for the
30 administration and enforcement of this Act.
31 (d) From time to time, the Board shall transfer the
32 remainder of the funds generated by this Act into the
33 Education Assistance Fund, created by Public Act 86-0018, of
-15- LRB9004595LDdvA
1 the State of Illinois.
2 (e) Nothing in this Act shall prohibit the unit of local
3 government designated as the home dock of the riverboat from
4 entering into agreements with other units of local government
5 in this State or in other states to share its portion of the
6 tax revenue.
7 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 7-1-95.)
8 (230 ILCS 10/14.1 new)
9 Sec. 14.1. Prohibition against political contributions.
10 No licensee under this Act shall make any contribution to any
11 political entity, including but not limited to, any political
12 organization, political party, political candidate, or
13 political campaign.