State of Illinois
92nd General Assembly
Legislation

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92_SB2288ham003











                                           LRB9215655LDmbam01

 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    changing Sections 4, 7, and 13 as follows:

11        (230 ILCS 10/4) (from Ch. 120, par. 2404)
12        Sec. 4.  Definitions. As used in this Act:
13        (a)  "Board" means the Illinois Gaming Board.
14        (b)  "Occupational license" means a license issued by the
15    Board  to  a  person or entity to perform an occupation which
16    the Board has identified as requiring a license to engage  in
17    riverboat gambling in Illinois.
18        (c)  "Gambling  game"  includes,  but  is not limited to,
19    baccarat, twenty-one, poker, craps, slot machine, video  game
20    of  chance,  roulette wheel, klondike table, punchboard, faro
 
                            -2-            LRB9215655LDmbam01
 1    layout, keno layout, numbers ticket, push card,  jar  ticket,
 2    or  pull  tab  which is authorized by the Board as a wagering
 3    device under this Act.
 4        (d)  "Riverboat" means a self-propelled  excursion  boat,
 5    or  a  permanently moored barge, or permanently moored barges
 6    that are permanently fixed together on which lawful  gambling
 7    is authorized and licensed as provided in this Act.
 8        (e)  (Blank).
 9        (f)  "Dock"  means  the  location where a riverboat moors
10    for the purpose of embarking passengers for and  disembarking
11    passengers from the riverboat.
12        (g)  "Gross  receipts"  means  the  total amount of money
13    exchanged for the purchase of  chips,  tokens  or  electronic
14    cards by riverboat patrons.
15        (h)  "Adjusted  gross  receipts" means the gross receipts
16    less winnings paid to wagerers.
17        (i)  "Cheat" means to alter  the  selection  of  criteria
18    which  determine  the result of a gambling game or the amount
19    or frequency of payment in a gambling game.
20        (j)  "Department" means the Department of Revenue.
21        (k)  "Gambling operation" means the conduct of authorized
22    gambling games upon a riverboat.
23    (Source: P.A. 91-40, eff. 6-25-99.)

24        (230 ILCS 10/7) (from Ch. 120, par. 2407)
25        Sec. 7.  Owners Licenses.
26        (a)  The Board shall issue owners  licenses  to  persons,
27    firms  or  corporations  which  apply  for such licenses upon
28    payment to the Board of the non-refundable license fee set by
29    the Board, upon payment of a  $25,000  license  fee  for  the
30    first  year of operation and a $50,000 $5,000 license fee for
31    each succeeding year and upon a determination  by  the  Board
32    that  the  applicant  is  eligible  for  an  owners   license
33    pursuant  to  this Act and the rules of the Board.  A person,
 
                            -3-            LRB9215655LDmbam01
 1    firm or  corporation  is  ineligible  to  receive  an  owners
 2    license if:
 3             (1)  the person has been convicted of a felony under
 4        the  laws  of  this State, any other state, or the United
 5        States;
 6             (2)  the person has been convicted of any  violation
 7        of   Article   28  of  the  Criminal  Code  of  1961,  or
 8        substantially similar laws of any other jurisdiction;
 9             (3)  the person has submitted an application  for  a
10        license under this Act which contains false information;
11             (4)  the person is a member of the Board;
12             (5)  a  person defined in (1), (2), (3) or (4) is an
13        officer, director or managerial employee of the  firm  or
14        corporation;
15             (6)  the   firm  or  corporation  employs  a  person
16        defined in (1), (2), (3) or (4) who participates  in  the
17        management or operation of gambling operations authorized
18        under this Act;
19             (7)  (blank); or
20             (8)  a  license  of  the person, firm or corporation
21        issued under this Act, or a license  to  own  or  operate
22        gambling  facilities  in any other jurisdiction, has been
23        revoked.
24        (b)  In determining whether to grant an owners license to
25    an applicant, the Board shall consider:
26             (1)  the  character,  reputation,  experience    and
27        financial integrity of the applicants and of any other or
28        separate person that either:
29                  (A)  controls,  directly  or  indirectly,  such
30             applicant, or
31                  (B)  is  controlled, directly or indirectly, by
32             such  applicant  or  by  a  person  which  controls,
33             directly or indirectly, such applicant;
34             (2)  the facilities or proposed facilities  for  the
 
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 1        conduct of riverboat gambling;
 2             (3)  the  highest  prospective  total  revenue to be
 3        derived by  the  State  from  the  conduct  of  riverboat
 4        gambling;
 5             (4)  the  good faith affirmative action plan of each
 6        applicant to recruit, train and upgrade minorities in all
 7        employment classifications;
 8             (5)  the  financial  ability  of  the  applicant  to
 9        purchase and maintain  adequate  liability  and  casualty
10        insurance;
11             (6)  whether     the    applicant    has    adequate
12        capitalization to provide and maintain, for the  duration
13        of a license, a riverboat; and
14             (7)  the  extent  to  which the applicant exceeds or
15        meets other standards  for  the  issuance  of  an  owners
16        license which the Board may adopt by rule.
17        (c)  Each  owners  license  shall specify the place where
18    riverboats shall operate and dock.
19        (d)  Each applicant shall submit with his application, on
20    forms provided by the Board, 2 sets of his fingerprints.
21        (e)  The  Board  shall  may  issue  up  to  10   licenses
22    authorizing  the  holders of such licenses to own riverboats.
23    In the application for an owners license, the applicant shall
24    state the dock at which the riverboat is based and the  water
25    on  which  the  riverboat  will  be located.  The Board shall
26    issue 5 licenses to become effective not earlier than January
27    1, 1991.  Three of such licenses  shall  authorize  riverboat
28    gambling  on the Mississippi River, or in a municipality that
29    (1) borders on the Mississippi River or is within 5 miles  of
30    the  city  limits  of  a  municipality  that  borders  on the
31    Mississippi River and (2), on  the  effective  date  of  this
32    amendatory  Act of the 92nd General Assembly, has a riverboat
33    conducting  riverboat  gambling  operations  pursuant  to   a
34    license  issued  under this Act; one of which shall authorize
 
                            -5-            LRB9215655LDmbam01
 1    riverboat gambling from a home dock in the city of  East  St.
 2    Louis.  One  other license shall authorize riverboat gambling
 3    on the Illinois River south of  Marshall  County.  The  Board
 4    shall  issue  1  additional  license  to become effective not
 5    earlier than March 1, 1992, which shall  authorize  riverboat
 6    gambling  on  the Des Plaines River in Will County. The Board
 7    may issue 4  additional  licenses  to  become  effective  not
 8    earlier  than  March  1, 1992.  In determining the water upon
 9    which riverboats will operate, the Board shall  consider  the
10    economic  benefit  which  riverboat  gambling  confers on the
11    State, and shall seek to assure that all regions of the State
12    share in the economic benefits of riverboat gambling.
13        In granting all licenses, the Board  may  give  favorable
14    consideration  to  economically depressed areas of the State,
15    to applicants presenting plans which provide for  significant
16    economic  development  over  a  large geographic area, and to
17    applicants who currently operate non-gambling  riverboats  in
18    Illinois.  The Board shall review all applications for owners
19    licenses,  and  shall  inform  each  applicant of the Board's
20    decision.
21        An  owners  licensee  that  receives  an  owners  license
22    authorizing  it  to  begin  conducting   riverboat   gambling
23    operations  on or after the effective date of this amendatory
24    Act of the 92nd General Assembly shall attain a level  of  at
25    least  20% minority person and female ownership, at least 16%
26    and 4% respectively, within a time period prescribed  by  the
27    Board, but not to exceed 12 months from the date the licensee
28    begins   conducting   riverboat   gambling  operations.   The
29    12-month period shall be  extended  by  the  amount  of  time
30    necessary  to  conduct a background investigation pursuant to
31    Section 6. For  the  purposes  of  this  Section,  the  terms
32    "female"  and "minority person" have the meanings provided in
33    Section 2 of the Business Enterprise for Minorities, Females,
34    and Persons with Disabilities Act.
 
                            -6-            LRB9215655LDmbam01
 1        The Board may revoke the owners  license  of  a  licensee
 2    which  fails to begin conducting gambling within 15 months of
 3    receipt of the Board's approval of  the  application  if  the
 4    Board  determines  that  license  revocation  is  in the best
 5    interests of the State.
 6        (f)  The first 10 owners licenses issued under  this  Act
 7    shall  permit  the  holder  to  own  up  to  2 riverboats and
 8    equipment thereon for a period of 3 years after the effective
 9    date of the license. Holders of the first 10 owners  licenses
10    must  pay  the  annual  license  fee  for each of the 3 years
11    during which they are authorized to own riverboats.
12        (g)  Upon the termination, expiration, or  revocation  of
13    each  of the first 10 licenses, which shall be issued for a 3
14    year period, all licenses are renewable annually upon payment
15    of the fee and a determination by the Board that the licensee
16    continues to meet all of the requirements of this Act and the
17    Board's rules.  However, for licenses renewed on or after May
18    1, 1998, renewal shall be for a period of 4 years, unless the
19    Board sets a shorter period.
20        (h)  An owners license shall entitle the licensee to  own
21    up  to  2  riverboats.   A licensee shall limit the number of
22    gambling participants to 1,200 for any such owners license. A
23    licensee may operate both  of  its  riverboats  concurrently,
24    provided  that  the  total number of gambling participants on
25    both riverboats does not exceed 1,200. Riverboats licensed to
26    operate on the Mississippi River and the Illinois River south
27    of Marshall County shall have an authorized  capacity  of  at
28    least  500  persons.  Any other riverboat licensed under this
29    Act shall  have  an  authorized  capacity  of  at  least  400
30    persons.
31        (i)  A licensed owner is authorized to apply to the Board
32    for  and,  if approved therefor, to receive all licenses from
33    the  Board  necessary  for  the  operation  of  a  riverboat,
34    including a liquor license, a license to  prepare  and  serve
 
                            -7-            LRB9215655LDmbam01
 1    food  for  human  consumption,  and other necessary licenses.
 2    All use, occupation and excise taxes which apply to the  sale
 3    of  food and beverages in this State and all taxes imposed on
 4    the sale or use of tangible personal property apply  to  such
 5    sales aboard the riverboat.
 6        (j)    The  Board  may  issue  a  license  authorizing  a
 7    riverboat  to  dock in a municipality or approve a relocation
 8    under Section 11.2 only if, prior  to  the  issuance  of  the
 9    license  or  approval, the governing body of the municipality
10    in which the riverboat will  dock  has  by  a  majority  vote
11    approved  the docking of riverboats in the municipality.  The
12    Board may issue a license authorizing a riverboat to dock  in
13    areas  of  a  county  outside  any  municipality or approve a
14    relocation under Section 11.2 only if, prior to the  issuance
15    of  the license or approval, the governing body of the county
16    has by a majority vote approved of the docking of  riverboats
17    within such areas.
18    (Source: P.A. 91-40, eff. 6-25-99.)

19        (230 ILCS 10/13) (from Ch. 120, par. 2413)
20        Sec. 13.  Wagering tax; rate; distribution.
21        (a)  Until  January  1,  1998,  a  tax  is imposed on the
22    adjusted  gross  receipts  received   from   gambling   games
23    authorized under this Act at the rate of 20%.
24        From  Beginning  January  1,  1998  until July 1, 2002, a
25    privilege tax is imposed on persons engaged in  the  business
26    of  conducting  riverboat  gambling  operations, based on the
27    adjusted gross receipts received by  a  licensed  owner  from
28    gambling  games  authorized  under  this Act at the following
29    rates:
30             15% of annual adjusted  gross  receipts  up  to  and
31        including $25,000,000;
32             20%  of  annual adjusted gross receipts in excess of
33        $25,000,000 but not exceeding $50,000,000;
 
                            -8-            LRB9215655LDmbam01
 1             25% of annual adjusted gross receipts in  excess  of
 2        $50,000,000 but not exceeding $75,000,000;
 3             30%  of  annual adjusted gross receipts in excess of
 4        $75,000,000 but not exceeding $100,000,000;
 5             35% of annual adjusted gross receipts in  excess  of
 6        $100,000,000.
 7        Beginning  July  1,  2002,  a privilege tax is imposed on
 8    persons engaged  in  the  business  of  conducting  riverboat
 9    gambling  operations,  based  on  the adjusted gross receipts
10    received by a licensed owner from gambling  games  authorized
11    under this Act at the following rates:
12             15%  of  annual  adjusted  gross  receipts up to and
13        including $25,000,000;
14             22.5% of annual adjusted gross receipts in excess of
15        $25,000,000 but not exceeding $50,000,000;
16             27.5% of annual adjusted gross receipts in excess of
17        $50,000,000 but not exceeding $75,000,000;
18             32.5% of annual adjusted gross receipts in excess of
19        $75,000,000 but not exceeding $100,000,000;
20             37.5% of annual adjusted gross receipts in excess of
21        $100,000,000 but not exceeding $150,000,000;
22             45% of annual adjusted gross receipts in  excess  of
23        $150,000,000 but not exceeding $200,000,000;
24             50%  of  annual adjusted gross receipts in excess of
25        $200,000,000.
26        The taxes imposed by this Section shall be  paid  by  the
27    licensed  owner to the Board not later than 3:00 o'clock p.m.
28    of the day after the day when the wagers were made.
29        (b)  Until January  1,  1998,  25%  of  the  tax  revenue
30    deposited  in  the State Gaming Fund under this Section shall
31    be paid, subject to appropriation by the General Assembly, to
32    the unit of local government which is designated as the  home
33    dock  of  the riverboat.  Beginning January 1, 1998, from the
34    tax revenue deposited in the State  Gaming  Fund  under  this
 
                            -9-            LRB9215655LDmbam01
 1    Section,  an  amount  equal  to 5% of adjusted gross receipts
 2    generated by a riverboat shall be paid  monthly,  subject  to
 3    appropriation  by  the General Assembly, to the unit of local
 4    government that  is  designated  as  the  home  dock  of  the
 5    riverboat.
 6        (c)  Appropriations, as approved by the General Assembly,
 7    may  be  made from the State Gaming Fund to the Department of
 8    Revenue  and  the  Department  of  State   Police   for   the
 9    administration and enforcement of this Act.
10        (c-5)  After  the payments required under subsections (b)
11    and (c) have been  made,  an  amount  equal  to  15%  of  the
12    adjusted  gross  receipts  of  a riverboat (1) that relocates
13    pursuant to Section 11.2, or (2) for which an owners  license
14    is   initially  issued  after  the  effective  date  of  this
15    amendatory Act of 1999, whichever comes first, shall be  paid
16    from the State Gaming Fund into the Horse Racing Equity Fund.
17        (c-10)  Each  year the General Assembly shall appropriate
18    from the General Revenue Fund  to  the  Education  Assistance
19    Fund an amount equal to the amount paid into the Horse Racing
20    Equity  Fund  pursuant  to  subsection  (c-5)  in  the  prior
21    calendar year.
22        (c-15)  After  the  payments  required  under subsections
23    (b), (c), and (c-5) have been made, an amount equal to 2%  of
24    the adjusted gross receipts of a riverboat (1) that relocates
25    pursuant  to Section 11.2, or (2) for which an owners license
26    is  initially  issued  after  the  effective  date  of   this
27    amendatory Act of 1999, whichever comes first, shall be paid,
28    subject  to appropriation from the General Assembly, from the
29    State Gaming Fund to each home rule county with a  population
30    of  over  3,000,000  inhabitants for the purpose of enhancing
31    the county's criminal justice system.
32        (c-20)  Each year the General Assembly shall  appropriate
33    from  the  General  Revenue  Fund to the Education Assistance
34    Fund an amount equal to the amount paid  to  each  home  rule
 
                            -10-           LRB9215655LDmbam01
 1    county  with  a  population  of  over  3,000,000  inhabitants
 2    pursuant to subsection (c-15) in the prior calendar year.
 3        (c-25)  After  the  payments  required  under subsections
 4    (b), (c), (c-5) and (c-15) have been made, an amount equal to
 5    2% of the adjusted gross receipts of  a  riverboat  (1)  that
 6    relocates  pursuant  to  Section  11.2,  or  (2) for which an
 7    owners license is initially issued after the  effective  date
 8    of  this amendatory Act of 1999, whichever comes first, shall
 9    be  paid  from  the  State  Gaming  Fund   into   the   State
10    Universities Athletic Capital Improvement Fund.
11        (d)  From  time  to  time,  the  Board shall transfer the
12    remainder of  the  funds  generated  by  this  Act  into  the
13    Education  Assistance Fund, created by Public Act 86-0018, of
14    the State of Illinois.
15        (e)  Nothing in this Act shall prohibit the unit of local
16    government designated as the home dock of the riverboat  from
17    entering into agreements with other units of local government
18    in  this State or in other states to share its portion of the
19    tax revenue.
20        (f)  To  the  extent   practicable,   the   Board   shall
21    administer  and  collect  the  wagering taxes imposed by this
22    Section  in  a  manner  consistent  with  the  provisions  of
23    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
24    6c, 8, 9, and 10 of the Retailers'  Occupation  Tax  Act  and
25    Section 3-7 of the Uniform Penalty and Interest Act.
26    (Source: P.A. 90-548, eff. 12-4-97; 91-40, eff. 6-25-99.)

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

30        (P.A. 91-40, Sec. 30)
31        Sec.  30.  Severability.   If  any  provision of this Act
32    (Public Act 91-40) or the application thereof to  any  person
 
                            -11-           LRB9215655LDmbam01
 1    or  circumstance  is  held  invalid, that invalidity does not
 2    affect the other provisions or applications of the Act  which
 3    can  be  given  effect  without  the  invalid  application or
 4    provision, and to this end the provisions  of  this  Act  are
 5    severable.   This  severability  applies  without  regard  to
 6    whether  the  action  challenging  the  validity  was brought
 7    before the effective date of this amendatory Act of the  92nd
 8    General Assembly.
 9        Inseverability.   The provisions of this Act are mutually
10    dependent and inseverable.  If any provision is held  invalid
11    other than as applied to a particular person or circumstance,
12    then this entire Act is invalid.
13    (Source:  P.A. 91-40, eff. 6-25-99.)

14        Section  99.  Effective  date. This Act takes effect upon
15    becoming law.".

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