State of Illinois
92nd General Assembly
Legislation

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92_SB2288ham001











                                             LRB9215655LDtmam

 1                    AMENDMENT TO SENATE BILL 2288

 2        AMENDMENT NO.     .  Amend Senate Bill 2288 by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  1.  Short  title.  This Act may be cited as the
 5    FY2003 Budget Implementation (Gaming) Act.

 6        Section 5.  Purpose.  It is the purpose of  this  Act  to
 7    make  the  changes  in State programs relating to gaming that
 8    are necessary to implement the State's FY2003 budget.

 9        Section 10.  The Riverboat Gambling  Act  is  amended  by
10    adding Sections 11.3, 11.4, and 13.2 and changing Sections 4,
11    7, and 13 as follows:

12        (230 ILCS 10/4) (from Ch. 120, par. 2404)
13        Sec. 4.  Definitions. As used in this Act:
14        (a)  "Board" means the Illinois Gaming Board.
15        (b)  "Occupational license" means a license issued by the
16    Board  to  a  person or entity to perform an occupation which
17    the Board has identified as requiring a license to engage  in
18    riverboat gambling in Illinois.
19        (c)  "Gambling  game"  includes,  but  is not limited to,
20    baccarat, twenty-one, poker, craps, slot machine, video  game
 
                            -2-              LRB9215655LDtmam
 1    of  chance,  roulette wheel, klondike table, punchboard, faro
 2    layout, keno layout, numbers ticket, push card,  jar  ticket,
 3    or  pull  tab  which is authorized by the Board as a wagering
 4    device under this Act.
 5        (d)  "Riverboat" means a self-propelled  excursion  boat,
 6    or  a  permanently moored barge, or permanently moored barges
 7    that are permanently fixed together on which lawful  gambling
 8    is authorized and licensed as provided in this Act.
 9        (e)  (Blank).
10        (f)  "Dock"  means  the  location where a riverboat moors
11    for the purpose of embarking passengers for and  disembarking
12    passengers from the riverboat.
13        (g)  "Gross  receipts"  means  the  total amount of money
14    exchanged for the purchase of  chips,  tokens  or  electronic
15    cards by riverboat patrons.
16        (h)  "Adjusted  gross  receipts" means the gross receipts
17    less winnings paid to wagerers.
18        (i)  "Cheat" means to alter  the  selection  of  criteria
19    which  determine  the result of a gambling game or the amount
20    or frequency of payment in a gambling game.
21        (j)  "Department" means the Department of Revenue.
22        (k)  "Gambling operation" means the conduct of authorized
23    gambling games upon a riverboat.
24    (Source: P.A. 91-40, eff. 6-25-99.)

25        (230 ILCS 10/7) (from Ch. 120, par. 2407)
26        Sec. 7.  Owners Licenses.
27        (a)  The Board shall issue owners  licenses  to  persons,
28    firms  or  corporations  which  apply  for such licenses upon
29    payment to the Board of the non-refundable license fee set by
30    the Board, upon payment of a  $25,000  license  fee  for  the
31    first  year of operation and a $50,000 $5,000 license fee for
32    each succeeding year and upon a determination  by  the  Board
33    that  the  applicant  is  eligible  for  an  owners   license
 
                            -3-              LRB9215655LDtmam
 1    pursuant  to  this Act and the rules of the Board.  A person,
 2    firm or  corporation  is  ineligible  to  receive  an  owners
 3    license if:
 4             (1)  the person has been convicted of a felony under
 5        the  laws  of  this State, any other state, or the United
 6        States;
 7             (2)  the person has been convicted of any  violation
 8        of   Article   28  of  the  Criminal  Code  of  1961,  or
 9        substantially similar laws of any other jurisdiction;
10             (3)  the person has submitted an application  for  a
11        license under this Act which contains false information;
12             (4)  the person is a member of the Board;
13             (5)  a  person defined in (1), (2), (3) or (4) is an
14        officer, director or managerial employee of the  firm  or
15        corporation;
16             (6)  the   firm  or  corporation  employs  a  person
17        defined in (1), (2), (3) or (4) who participates  in  the
18        management or operation of gambling operations authorized
19        under this Act;
20             (7)  (blank); or
21             (8)  a  license  of  the person, firm or corporation
22        issued under this Act, or a license  to  own  or  operate
23        gambling  facilities  in any other jurisdiction, has been
24        revoked.
25        (b)  In determining whether to grant an owners license to
26    an applicant, the Board shall consider:
27             (1)  the  character,  reputation,  experience    and
28        financial integrity of the applicants and of any other or
29        separate person that either:
30                  (A)  controls,  directly  or  indirectly,  such
31             applicant, or
32                  (B)  is  controlled, directly or indirectly, by
33             such  applicant  or  by  a  person  which  controls,
34             directly or indirectly, such applicant;
 
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 1             (2)  the facilities or proposed facilities  for  the
 2        conduct of riverboat gambling;
 3             (3)  the  highest  prospective  total  revenue to be
 4        derived by  the  State  from  the  conduct  of  riverboat
 5        gambling;
 6             (4)  the  good faith affirmative action plan of each
 7        applicant to recruit, train and upgrade minorities in all
 8        employment classifications;
 9             (5)  the  financial  ability  of  the  applicant  to
10        purchase and maintain  adequate  liability  and  casualty
11        insurance;
12             (6)  whether     the    applicant    has    adequate
13        capitalization to provide and maintain, for the  duration
14        of a license, a riverboat; and
15             (7)  the  extent  to  which the applicant exceeds or
16        meets other standards  for  the  issuance  of  an  owners
17        license which the Board may adopt by rule.
18        (c)  Each  owners  license  shall specify the place where
19    riverboats shall operate and dock.
20        (d)  Each applicant shall submit with his application, on
21    forms provided by the Board, 2 sets of his fingerprints.
22        (e)  The  Board  shall  may  issue  up  to  10   licenses
23    authorizing  the  holders of such licenses to own riverboats.
24    In the application for an owners license, the applicant shall
25    state the dock at which the riverboat is based and the  water
26    on  which  the  riverboat  will  be located.  The Board shall
27    issue 5 licenses to become effective not earlier than January
28    1, 1991.  Three of such licenses  shall  authorize  riverboat
29    gambling  on the Mississippi River, or in a municipality that
30    (1) borders on the Mississippi River or is within 5 miles  of
31    the  city  limits  of  a  municipality  that  borders  on the
32    Mississippi River and (2), on  the  effective  date  of  this
33    amendatory  Act of the 92nd General Assembly, has a riverboat
34    conducting  riverboat  gambling  operations  pursuant  to   a
 
                            -5-              LRB9215655LDtmam
 1    license  issued  under this Act; one of which shall authorize
 2    riverboat gambling from a home dock in the city of  East  St.
 3    Louis.  One  other license shall authorize riverboat gambling
 4    on the Illinois River south of  Marshall  County.  The  Board
 5    shall  issue  1  additional  license  to become effective not
 6    earlier than March 1, 1992, which shall  authorize  riverboat
 7    gambling  on  the Des Plaines River in Will County. The Board
 8    may issue 4  additional  licenses  to  become  effective  not
 9    earlier  than  March  1, 1992.  In determining the water upon
10    which riverboats will operate, the Board shall  consider  the
11    economic  benefit  which  riverboat  gambling  confers on the
12    State, and shall seek to assure that all regions of the State
13    share in the economic benefits of riverboat gambling.
14        In granting all licenses, the Board  may  give  favorable
15    consideration  to  economically depressed areas of the State,
16    to applicants presenting plans which provide for  significant
17    economic  development  over  a  large geographic area, and to
18    applicants who currently operate non-gambling  riverboats  in
19    Illinois.  The Board shall review all applications for owners
20    licenses,  and  shall  inform  each  applicant of the Board's
21    decision.
22        An  owners  licensee  that  receives  an  owners  license
23    authorizing  it  to  begin  conducting   riverboat   gambling
24    operations  on or after the effective date of this amendatory
25    Act of the 92nd General Assembly shall attain a level  of  at
26    least  20% minority person and female ownership, at least 16%
27    and 4% respectively, within a time period prescribed  by  the
28    Board, but not to exceed 12 months from the date the licensee
29    begins   conducting   riverboat   gambling  operations.   The
30    12-month period shall be  extended  by  the  amount  of  time
31    necessary  to  conduct a background investigation pursuant to
32    Section 6. For  the  purposes  of  this  Section,  the  terms
33    "female"  and "minority person" have the meanings provided in
34    Section 2 of the Business Enterprise for Minorities, Females,
 
                            -6-              LRB9215655LDtmam
 1    and Persons with Disabilities Act.
 2        The Board may revoke the owners  license  of  a  licensee
 3    which  fails to begin conducting gambling within 15 months of
 4    receipt of the Board's approval of  the  application  if  the
 5    Board  determines  that  license  revocation  is  in the best
 6    interests of the State.
 7        (f)  The first 10 owners licenses issued under  this  Act
 8    shall  permit  the  holder  to  own  up  to  2 riverboats and
 9    equipment thereon for a period of 3 years after the effective
10    date of the license. Holders of the first 10 owners  licenses
11    must  pay  the  annual  license  fee  for each of the 3 years
12    during which they are authorized to own riverboats.
13        (g)  Upon the termination, expiration, or  revocation  of
14    each  of the first 10 licenses, which shall be issued for a 3
15    year period, all licenses are renewable annually upon payment
16    of the fee and a determination by the Board that the licensee
17    continues to meet all of the requirements of this Act and the
18    Board's rules.  However, for licenses renewed on or after May
19    1, 1998, renewal shall be for a period of 4 years, unless the
20    Board sets a shorter period.
21        (h)  An owners license shall entitle the licensee to  own
22    up  to  2  riverboats.   A licensee shall limit the number of
23    gambling participants to 1,200 for any such owners license. A
24    licensee may operate both  of  its  riverboats  concurrently,
25    provided  that  the  total number of gambling participants on
26    both riverboats does not exceed 1,200. Riverboats licensed to
27    operate on the Mississippi River and the Illinois River south
28    of Marshall County shall have an authorized  capacity  of  at
29    least  500  persons.  Any other riverboat licensed under this
30    Act shall  have  an  authorized  capacity  of  at  least  400
31    persons.
32        (i)  A licensed owner is authorized to apply to the Board
33    for  and,  if approved therefor, to receive all licenses from
34    the  Board  necessary  for  the  operation  of  a  riverboat,
 
                            -7-              LRB9215655LDtmam
 1    including a liquor license, a license to  prepare  and  serve
 2    food  for  human  consumption,  and other necessary licenses.
 3    All use, occupation and excise taxes which apply to the  sale
 4    of  food and beverages in this State and all taxes imposed on
 5    the sale or use of tangible personal property apply  to  such
 6    sales aboard the riverboat.
 7        (j)    The  Board  may  issue  a  license  authorizing  a
 8    riverboat  to  dock in a municipality or approve a relocation
 9    under Section 11.2 only if, prior  to  the  issuance  of  the
10    license  or  approval, the governing body of the municipality
11    in which the riverboat will  dock  has  by  a  majority  vote
12    approved  the docking of riverboats in the municipality.  The
13    Board may issue a license authorizing a riverboat to dock  in
14    areas  of  a  county  outside  any  municipality or approve a
15    relocation under Section 11.2 only if, prior to the  issuance
16    of  the license or approval, the governing body of the county
17    has by a majority vote approved of the docking of  riverboats
18    within such areas.
19    (Source: P.A. 91-40, eff. 6-25-99.)

20        (230 ILCS 10/11.3 new)
21        Sec.  11.3. Unused gaming positions of a dormant license.
22    The  Board  shall  reallocate  unused  gaming  positions   as
23    provided in this Section within 30 days of the effective date
24    of  this  amendatory  Act  of the 92nd General Assembly.  The
25    reallocation of gaming positions authorized by  this  Section
26    shall  be  made  by  the  Board  prior to the reallocation of
27    gaming positions under Section 11.4.   The  gaming  positions
28    authorized  by  a  dormant  license  shall be divided equally
29    among all  eligible  licensees  and  may  be  used  by  those
30    eligible  licensees  as  part  of  their  riverboat  gambling
31    operations.  If an eligible licensee does not elect to obtain
32    some  or all of the additional gaming positions authorized to
33    it under this  Section,  all  other  eligible  licensees  may
 
                            -8-              LRB9215655LDtmam
 1    divide those positions equally.
 2        As soon as an owners licensee begins conducting riverboat
 3    gambling  operations  authorized by a dormant license, but in
 4    no event later than 18 months after  the  effective  date  of
 5    this  amendatory  Act  of the 92nd General Assembly, eligible
 6    licensees using gaming positions authorized pursuant to  this
 7    Section shall no longer use those gaming positions.
 8        For the purposes of this Section 11.3, the term "eligible
 9    licensee"  means  an owners licensee that was in the top 4 in
10    adjusted gross receipts in calendar year 2001  as  determined
11    by  the  Board and the term "dormant license" means an owners
12    license that  is  authorized  by  this  Act  under  which  no
13    riverboat  gambling  operations  are  being  conducted on the
14    effective date of this amendatory Act  of  the  92nd  General
15    Assembly.

16        (230 ILCS 10/11.4 new)
17        Sec.   11.4.   Rock   Island   licensee's  unused  gaming
18    positions.   The  Board  shall   reallocate   unused   gaming
19    positions  as  provided  in this Section within 30 days after
20    all of the gaming positions  subject  to  reallocation  under
21    Section  11.3  have  been  reallocated.   Four hundred gaming
22    positions of  an  owners  licensee  that  conducts  riverboat
23    gambling  operations  from  a home dock in Rock Island County
24    shall be divided equally among all eligible licensees and may
25    be used by those eligible licensees as part of the  riverboat
26    gambling operations.
27        If  an  eligible owners licensee does not elect to obtain
28    some or all of the additional gaming positions authorized  to
29    it  under  this  Section,  all  other  eligible licensees may
30    divide those positions equally.
31        Eligible  licensees  that   receive   additional   gaming
32    positions  pursuant  to  this Section may use those positions
33    for a period of at least one year.
 
                            -9-              LRB9215655LDtmam
 1        As soon as the one-year period is over or as soon  as  an
 2    owners  licensee whose gaming positions have been reallocated
 3    pursuant to this Section begins conducting riverboat gambling
 4    operations from a home dock location that is  different  from
 5    the  home  dock  location  from  which it conducted riverboat
 6    gambling operations on the effective date of this  amendatory
 7    Act  of the 92nd General Assembly, whichever is later, but in
 8    no event later than 18 months after  the  effective  date  of
 9    this  amendatory  Act  of  the  92nd  General Assembly, those
10    reallocated gaming positions shall be automatically reclaimed
11    by the owners licensee that was originally entitled to them.
12        At any time after the one-year  period  is  over,  if  an
13    owners licensee whose gaming positions were reallocated under
14    this   Section  has  not  relocated  its  riverboat  gambling
15    operations to a new home dock location, it may  reclaim  some
16    or  all  of  those gaming positions by notifying all eligible
17    licensees in writing.  If a licensee reclaims less  than  all
18    of  its  reallocated gaming positions, all eligible licensees
19    that received those positions shall return them on a pro rata
20    basis.  If a licensee reclaims some but less than all of  its
21    gaming  positions,  it  may  later reclaim any portion of the
22    remainder of those positions.
23        An eligible licensee  that  receives  a  reallocation  of
24    gaming positions under this Section shall no longer use those
25    positions after they have been reclaimed.
26        For  purposes  of  this  Section 11.4, the term "eligible
27    licensee" means an owners license that was in the  top  4  in
28    adjusted  gross  receipts in calendar year 2001 as determined
29    by the Board.

30        (230 ILCS 10/13.2 new)
31        Sec. 13.2. Supplemental wagering tax.
32        (a)  Beginning on July 1, 2002 and ending as provided  in
33    subsection (d) but in no event later than 18 months after the
 
                            -10-             LRB9215655LDtmam
 1    effective  date  of  this  amendatory Act of the 92nd General
 2    Assembly, a privilege tax is imposed on  persons  engaged  in
 3    the  business  of  conducting  riverboat gambling operations,
 4    based on the adjusted gross receipts received by  a  licensed
 5    owner  from  gambling games authorized under this Act, at the
 6    rate of 10% of annual adjusted gross receipts  in  excess  of
 7    $200,000,000.  For the purpose of determining annual adjusted
 8    gross  receipts  in calendar year 2002, annual adjusted gross
 9    receipts shall be measured beginning January 1,  2002.  In  a
10    subsequent  year,  annual  adjusted  gross  receipts shall be
11    measured beginning on January 1 of that year. The tax imposed
12    pursuant to this Section is in  addition  to  any  other  tax
13    imposed pursuant to this Act.
14        (b)  The  taxes  imposed by this Section shall be paid by
15    the licensed owner to the Board no later  than  3:00  o'clock
16    p.m.  of the day after the day when the wagers were made. The
17    Board shall pay all moneys received pursuant to this  Section
18    into the Education Assistance Fund at least monthly.
19        (c)  To   the   extent   practicable,   the  Board  shall
20    administer and collect the wagering  taxes  imposed  by  this
21    Section  in  a  manner  consistent  with  the  provisions  of
22    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
23    6c,  8,  9,  and  10 of the Retailers' Occupation Tax Act and
24    Section 3-7 of the Uniform Penalty and Interest Act.
25        (d)  The provisions of this Section shall be  inoperative
26    and  of no force and effect beginning on the first date after
27    the effective date of  this  amendatory  Act  that  riverboat
28    gambling  operations  are  conducted  pursuant  to  a dormant
29    license, but in no event  later  than  18  months  after  the
30    effective  date  of  this  amendatory Act of the 92nd General
31    Assembly.
32        (e)  For the purposes of  this  Section  13.2,  the  term
33    "dormant  license" means an owners license that is authorized
34    by this Act under which no riverboat gambling operations  are
 
                            -11-             LRB9215655LDtmam
 1    being  conducted on the effective date of this amendatory Act
 2    of the 92nd General Assembly.

 3        Section 10.  "An Act in relation  to  gambling,  amending
 4    named  Acts",  approved  June  25, 1999, Public Act 91-40, is
 5    amended by changing Section 30 as follows:

 6        (P.A. 91-40, Sec. 30)
 7        Sec. 30. Severability.  If  any  provision  of  this  Act
 8    (Public  Act  91-40) or the application thereof to any person
 9    or circumstance is held invalid,  that  invalidity  does  not
10    affect  the other provisions or applications of the Act which
11    can be  given  effect  without  the  invalid  application  or
12    provision,  and  to  this  end the provisions of this Act are
13    severable.   This  severability  applies  without  regard  to
14    whether the  action  challenging  the  validity  was  brought
15    before  the effective date of this amendatory Act of the 92nd
16    General Assembly.
17        Inseverability.  The provisions of this Act are  mutually
18    dependent  and inseverable.  If any provision is held invalid
19    other than as applied to a particular person or circumstance,
20    then this entire Act is invalid.
21    (Source:  P.A. 91-40, eff. 6-25-99.)

22        Section 99.  Effective date.  This Act takes effect  upon
23    becoming law.".

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