093_HB1159
LRB093 06663 LRD 06796 b
1 AN ACT in relation to gambling.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Riverboat Gambling Act is amended by
5 changing Sections 6, 7, and 13 and adding Sections 7.1 and
6 13.2 as follows:
7 (230 ILCS 10/6) (from Ch. 120, par. 2406)
8 Sec. 6. Application for Owners License.
9 (a) A qualified person may apply to the Board for an
10 owners license to conduct a riverboat gambling operation as
11 provided in this Act. The application shall be made on forms
12 provided by the Board and shall contain such information as
13 the Board prescribes, including but not limited to the
14 identity of the riverboat on which such gambling operation is
15 to be conducted and the exact location where such riverboat
16 will be docked, a certification that the riverboat will be
17 registered under this Act at all times during which gambling
18 operations are conducted on board, detailed information
19 regarding the ownership and management of the applicant, and
20 detailed personal information regarding the applicant.
21 Information provided on the application shall be used as a
22 basis for a thorough background investigation which the Board
23 shall conduct with respect to each applicant. An incomplete
24 application shall be cause for denial of a license by the
25 Board.
26 (b) Applicants shall submit with their application all
27 documents, resolutions, and letters of support from the
28 governing body that represents the municipality or county
29 wherein the licensee will dock.
30 (c) Each applicant shall disclose the identity of every
31 person, association, trust or corporation having a greater
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1 than 1% direct or indirect pecuniary interest in the
2 riverboat gambling operation with respect to which the
3 license is sought. If the disclosed entity is a trust, the
4 application shall disclose the names and addresses of the
5 beneficiaries; if a corporation, the names and addresses of
6 all stockholders and directors; if a partnership, the names
7 and addresses of all partners, both general and limited.
8 (d) An application shall be filed with the Board by
9 January 1 of the year preceding any calendar year for which
10 an applicant seeks an owners license; however, applications
11 for an owners license permitting operations on January 1,
12 1991 shall be filed by July 1, 1990 and applications for
13 licenses authorized on or after the effective date of this
14 amendatory Act of the 93rd General Assembly shall be filed by
15 deadlines established by the Board. In the case of an owners
16 license to be awarded through the competitive bidding
17 process, the Board shall solicit applications by publishing
18 an advertisement at least 3 times, the first and last of
19 which publications shall be at least 10 days apart, in trade
20 publications, business newspapers such as the Wall Street
21 Journal, and the newspapers that are in the top 10 in
22 circulation in Illinois. The advertisement shall state the
23 procedure for applying for an owners license and shall state
24 the deadline for applications. The Board shall also notify
25 all parties who have ever applied for an owners license under
26 this Act. An application fee as set by the Board by rule of
27 $50,000 shall be paid at the time of filing to defray the
28 costs associated with the background investigation conducted
29 by the Board. If the costs of the investigation exceed the
30 fee set by the Board $50,000, the applicant shall pay the
31 additional amount to the Board. If the costs of the
32 investigation are less than the fee set by the Board $50,000,
33 the applicant shall receive a refund of the remaining amount.
34 In addition to the application fee, the Board shall set an
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1 annual license fee by rule. All information, records,
2 interviews, reports, statements, memoranda or other data
3 supplied to or used by the Board in the course of its review
4 or investigation of an application for a license under this
5 Act shall be privileged, strictly confidential and shall be
6 used only for the purpose of evaluating an applicant. Such
7 information, records, interviews, reports, statements,
8 memoranda or other data shall not be admissible as evidence,
9 nor discoverable in any action of any kind in any court or
10 before any tribunal, board, agency or person, except for any
11 action deemed necessary by the Board.
12 (e) The Board shall charge each applicant a fee set by
13 the Department of State Police to defray the costs associated
14 with the search and classification of fingerprints obtained
15 by the Board with respect to the applicant's application.
16 These fees shall be paid into the State Police Services Fund.
17 (f) The licensed owner shall be the person primarily
18 responsible for the boat itself. Only one riverboat gambling
19 operation may be authorized by the Board on any riverboat.
20 The applicant must identify each riverboat it intends to use
21 and certify that the riverboat: (1) has the authorized
22 capacity required in this Act; (2) is accessible to disabled
23 persons; and (3) is fully registered and licensed in
24 accordance with any applicable laws.
25 (g) A person who knowingly makes a false statement on an
26 application is guilty of a Class A misdemeanor.
27 (Source: P.A. 91-40, eff. 6-25-99.)
28 (230 ILCS 10/7) (from Ch. 120, par. 2407)
29 Sec. 7. Owners Licenses.
30 (a) The Board shall, upon completion of the
31 investigation required under Section 6, make a determination
32 as to whether each applicant for an owners license is
33 suitable for licensing issue owners licenses to persons,
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1 firms or corporations which apply for such licenses upon
2 payment to the Board of the non-refundable license fee set by
3 the Board, upon payment of a $25,000 license fee for the
4 first year of operation and a $5,000 license fee for each
5 succeeding year and upon a determination by the Board that
6 the applicant is eligible for an owners license pursuant to
7 this Act and the rules of the Board. A person, firm or
8 corporation is ineligible to receive an owners license if:
9 (1) the person has been convicted of a felony under
10 the laws of this State, any other state, or the United
11 States;
12 (2) the person has been convicted of any violation
13 of Article 28 of the Criminal Code of 1961, or
14 substantially similar laws of any other jurisdiction;
15 (3) the person has submitted an application for a
16 license under this Act which contains false information;
17 (4) the person is a member of the Board;
18 (5) a person defined in (1), (2), (3) or (4) is an
19 officer, director or managerial employee of the firm or
20 corporation;
21 (6) the firm or corporation employs a person
22 defined in (1), (2), (3) or (4) who participates in the
23 management or operation of gambling operations authorized
24 under this Act;
25 (7) (blank); or
26 (8) a license of the person, firm or corporation
27 issued under this Act, or a license to own or operate
28 gambling facilities in any other jurisdiction, has been
29 revoked.
30 (b) In determining the suitability of whether to grant
31 an owners license to an applicant for an owners license, the
32 Board shall consider:
33 (1) the character, reputation, experience and
34 financial integrity of the applicants and of any other or
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1 separate person that either:
2 (A) controls, directly or indirectly, such
3 applicant, or
4 (B) is controlled, directly or indirectly, by
5 such applicant or by a person which controls,
6 directly or indirectly, such applicant;
7 (2) the facilities or proposed facilities for the
8 conduct of riverboat gambling;
9 (3) the highest prospective total revenue to be
10 derived by the State from the conduct of riverboat
11 gambling;
12 (4) the good faith affirmative action plan of each
13 applicant to recruit, train and upgrade minorities in all
14 employment classifications;
15 (5) the financial ability of the applicant to
16 purchase and maintain adequate liability and casualty
17 insurance;
18 (6) whether the applicant has adequate
19 capitalization to provide and maintain, for the duration
20 of a license, a riverboat; and
21 (7) the extent to which the applicant exceeds or
22 meets other standards for the issuance of an owners
23 license which the Board may adopt by rule.
24 (c) (Blank). Each owners license shall specify the place
25 where riverboats shall operate and dock.
26 (d) Each applicant shall submit with his application, on
27 forms provided by the Board, 2 sets of his fingerprints.
28 (e) The Board may issue up to 10 licenses authorizing
29 the holders of such licenses to own riverboats. In the
30 application for an owners license, the applicant shall state
31 the dock at which the riverboat is based and the water on
32 which the riverboat will be located.
33 (e-5) After the Board makes its determination as to the
34 suitability of applicants for a license, the Board shall
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1 notify each applicant of its determination, and the Board
2 shall notify the applicants found to be suitable that they
3 may bid for the license. Bids shall be expressed as a
4 percentage of adjusted gross receipts to be paid as taxes
5 during the period of the license. Licenses shall be awarded
6 to the highest bidders. The Board shall include time limits
7 and any appropriate bid specifications. Notwithstanding the
8 other provisions of this Section, the Board may reject any
9 bid. The Board shall notify each applicant of its final
10 decision, and shall publicly disclose the amount of the
11 winning bid. The amounts paid by a successful applicant
12 under the terms of its bid shall be paid and distributed in
13 accordance with Section 13.2.
14 The Board shall adopt rules as needed to implement the
15 provisions of the competitive bidding process under this
16 Section.
17 (e-10) The Board shall issue a temporary license to any
18 licensee that loses its license under the competitive bidding
19 process established in this Section. The temporary license
20 shall be effective until the winning bidder for that license
21 begins riverboat gambling operations.
22 (e-15) Each owners license shall specify the place where
23 riverboats shall operate and dock.
24 (e-20) The Board may not issue a license to an applicant
25 for a license to conduct riverboat gambling unless, in
26 accordance with subsection (j), riverboat gambling has been
27 approved by the governing body of the appropriate unit of
28 local government. The Board shall issue 5 licenses to become
29 effective not earlier than January 1, 1991. Three of such
30 licenses shall authorize riverboat gambling on the
31 Mississippi River, one of which shall authorize riverboat
32 gambling from a home dock in the city of East St. Louis, and
33 one of which shall authorize riverboat gambling on the
34 Mississippi River or in a municipality that (1) borders on
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1 the Mississippi River or is within 5 miles of the city limits
2 of a municipality that borders on the Mississippi River and
3 (2) on the effective date of this amendatory Act of the 92nd
4 General Assembly has a riverboat conducting riverboat
5 gambling operations pursuant to a license issued under this
6 Act. One other license shall authorize riverboat gambling on
7 the Illinois River south of Marshall County. The Board shall
8 issue one additional license to become effective not earlier
9 than March 1, 1992, which shall authorize riverboat gambling
10 on the Des Plaines River in Will County. The Board may issue
11 4 additional licenses to become effective not earlier than
12 March 1, 1992. In determining the water upon which
13 riverboats will operate, the Board shall consider the
14 economic benefit which riverboat gambling confers on the
15 State, and shall seek to assure that all regions of the State
16 share in the economic benefits of riverboat gambling.
17 In granting all licenses, the Board may give favorable
18 consideration to economically depressed areas of the State,
19 to applicants presenting plans which provide for significant
20 economic development over a large geographic area, and to
21 applicants who currently operate non-gambling riverboats in
22 Illinois. The Board shall review all applications for owners
23 licenses, and shall inform each applicant of the Board's
24 decision.
25 The Board may revoke the owners license of a licensee
26 which fails to begin conducting gambling within 15 months of
27 receipt of the Board's approval of the application if the
28 Board determines that license revocation is in the best
29 interests of the State.
30 (f) The first 10 owners licenses issued under this Act
31 shall permit the holder to own up to 2 riverboats and
32 equipment thereon for a period of 3 years after the effective
33 date of the license. Holders of the first 10 owners licenses
34 must pay the annual license fee for each of the 3 years
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1 during which they are authorized to own riverboats.
2 (g) On and after the effective date of this amendatory
3 Act of the 93rd General Assembly, upon the termination,
4 expiration, or revocation of an owners license, the license
5 shall be subject to the competitive bidding process
6 established under subsection (e-5). A license that is
7 awarded pursuant to the competitive bidding process under
8 subsection (e-5) shall be valid for 4 years.
9 (g-5) Any agreement or collusion among bidders or
10 prospective bidders for owners licenses in restraint of
11 freedom of competition by agreement to bid a fixed price or
12 by any other method shall render the bids of the bidders
13 void. Each bidder for an owners license shall accompany his
14 or her bid with a sworn statement, or otherwise swear or
15 affirm, that he or she has not been a party to any such
16 agreement or collusion. A bidder found to have participated
17 in a collusive agreement under this Section shall be
18 prevented from ever owning a license to conduct riverboat
19 gambling. of each of the first 10 licenses, which shall be
20 issued for a 3 year period, all licenses are renewable
21 annually upon payment of the fee and a determination by the
22 Board that the licensee continues to meet all of the
23 requirements of this Act and the Board's rules. However, for
24 licenses renewed on or after May 1, 1998, renewal shall be
25 for a period of 4 years, unless the Board sets a shorter
26 period.
27 (h) An owners license shall entitle the licensee to own
28 up to 2 riverboats. A licensee shall limit the number of
29 gambling participants to 1,200 for any such owners license. A
30 licensee may operate both of its riverboats concurrently,
31 provided that the total number of gambling participants on
32 both riverboats does not exceed 1,200. Riverboats licensed to
33 operate on the Mississippi River and the Illinois River south
34 of Marshall County shall have an authorized capacity of at
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1 least 500 persons. Any other riverboat licensed under this
2 Act shall have an authorized capacity of at least 400
3 persons.
4 (i) A licensed owner is authorized to apply to the Board
5 for and, if approved therefor, to receive all licenses from
6 the Board necessary for the operation of a riverboat,
7 including a liquor license, a license to prepare and serve
8 food for human consumption, and other necessary licenses.
9 All use, occupation and excise taxes which apply to the sale
10 of food and beverages in this State and all taxes imposed on
11 the sale or use of tangible personal property apply to such
12 sales aboard the riverboat.
13 (j) The Board may issue a license authorizing a
14 riverboat to dock in a municipality or approve a relocation
15 under Section 11.2 only if, prior to the issuance of the
16 license or approval, the governing body of the municipality
17 in which the riverboat will dock has by a majority vote
18 approved the docking of riverboats in the municipality. The
19 Board may issue a license authorizing a riverboat to dock in
20 areas of a county outside any municipality or approve a
21 relocation under Section 11.2 only if, prior to the issuance
22 of the license or approval, the governing body of the county
23 has by a majority vote approved of the docking of riverboats
24 within such areas.
25 (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)
26 (230 ILCS 10/7.1 n32)
27 Sec. 7.1. Sale of infrastructure.
28 The Board shall adopt rules as soon as possible after the
29 effective date of this amendatory Act of the 93rd General
30 Assembly to authorize a licensee that loses its license to a
31 bidder under subsection (e-5) of Section 7 to sell its
32 riverboat gambling operation infrastructure including, but
33 not limited to, (1) its riverboats and related structures,
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1 (2) its dock, and (3) its affiliated lodging, food service,
2 and hospitality facilities to another licensee or to a
3 successful bidder. A licensee may not sell its riverboat
4 gambling operation infrastructure for a price that exceeds
5 its book value. The financial records of a sale under this
6 Section shall be public records and shall be open to
7 inspection by the Board.
8 (230 ILCS 10/13) (from Ch. 120, par. 2413)
9 Sec. 13. Wagering tax; rate; distribution.
10 (a) Until January 1, 1998, a tax is imposed on the
11 adjusted gross receipts received from gambling games
12 authorized under this Act at the rate of 20%.
13 From January 1, 1998 until July 1, 2002, a privilege tax
14 is imposed on persons engaged in the business of conducting
15 riverboat gambling operations, based on the adjusted gross
16 receipts received by a licensed owner from gambling games
17 authorized under this Act at the following rates:
18 15% of annual adjusted gross receipts up to and
19 including $25,000,000;
20 20% of annual adjusted gross receipts in excess of
21 $25,000,000 but not exceeding $50,000,000;
22 25% of annual adjusted gross receipts in excess of
23 $50,000,000 but not exceeding $75,000,000;
24 30% of annual adjusted gross receipts in excess of
25 $75,000,000 but not exceeding $100,000,000;
26 35% of annual adjusted gross receipts in excess of
27 $100,000,000.
28 Beginning July 1, 2002, a privilege tax is imposed on
29 persons engaged in the business of conducting riverboat
30 gambling operations, based on the adjusted gross receipts
31 received by a licensed owner from gambling games authorized
32 under this Act at the following rates:
33 15% of annual adjusted gross receipts up to and
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1 including $25,000,000;
2 22.5% of annual adjusted gross receipts in excess of
3 $25,000,000 but not exceeding $50,000,000;
4 27.5% of annual adjusted gross receipts in excess of
5 $50,000,000 but not exceeding $75,000,000;
6 32.5% of annual adjusted gross receipts in excess of
7 $75,000,000 but not exceeding $100,000,000;
8 37.5% of annual adjusted gross receipts in excess of
9 $100,000,000 but not exceeding $150,000,000;
10 45% of annual adjusted gross receipts in excess of
11 $150,000,000 but not exceeding $200,000,000;
12 50% of annual adjusted gross receipts in excess of
13 $200,000,000.
14 The taxes imposed by this Section shall be paid by the
15 licensed owner to the Board not later than 3:00 o'clock p.m.
16 of the day after the day when the wagers were made.
17 A licensee that obtains its license on or after the
18 effective date of this amendatory Act of the 93rd General
19 Assembly pursuant to the competitive bidding process shall
20 not be subject to taxation nor be required to make any
21 payment under this Section, but shall instead be subject to
22 taxation pursuant to Section 13.2.
23 (b) Until January 1, 1998, 25% of the tax revenue
24 deposited in the State Gaming Fund under this Section shall
25 be paid, subject to appropriation by the General Assembly, to
26 the unit of local government which is designated as the home
27 dock of the riverboat. Beginning January 1, 1998, from the
28 tax revenue deposited in the State Gaming Fund under this
29 Section, an amount equal to 5% of adjusted gross receipts
30 generated by a riverboat shall be paid monthly, subject to
31 appropriation by the General Assembly, to the unit of local
32 government that is designated as the home dock of the
33 riverboat.
34 (c) Appropriations, as approved by the General Assembly,
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1 may be made from the State Gaming Fund to the Department of
2 Revenue and the Department of State Police for the
3 administration and enforcement of this Act.
4 (c-5) (Blank). After the payments required under
5 subsections (b) and (c) have been made, an amount equal to
6 15% of the adjusted gross receipts of a riverboat (1) that
7 relocates pursuant to Section 11.2, or (2) for which an
8 owners license is initially issued after the effective date
9 of this amendatory Act of 1999, whichever comes first, shall
10 be paid from the State Gaming Fund into the Horse Racing
11 Equity Fund.
12 (c-10) (Blank). Each year the General Assembly shall
13 appropriate from the General Revenue Fund to the Education
14 Assistance Fund an amount equal to the amount paid into the
15 Horse Racing Equity Fund pursuant to subsection (c-5) in the
16 prior calendar year.
17 (c-15) (Blank). After the payments required under
18 subsections (b), (c), and (c-5) have been made, an amount
19 equal to 2% of the adjusted gross receipts of a riverboat (1)
20 that relocates pursuant to Section 11.2, or (2) for which an
21 owners license is initially issued after the effective date
22 of this amendatory Act of 1999, whichever comes first, shall
23 be paid, subject to appropriation from the General Assembly,
24 from the State Gaming Fund to each home rule county with a
25 population of over 3,000,000 inhabitants for the purpose of
26 enhancing the county's criminal justice system.
27 (c-20) (Blank). Each year the General Assembly shall
28 appropriate from the General Revenue Fund to the Education
29 Assistance Fund an amount equal to the amount paid to each
30 home rule county with a population of over 3,000,000
31 inhabitants pursuant to subsection (c-15) in the prior
32 calendar year.
33 (c-25) (Blank). After the payments required under
34 subsections (b), (c), (c-5) and (c-15) have been made, an
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1 amount equal to 2% of the adjusted gross receipts of a
2 riverboat (1) that relocates pursuant to Section 11.2, or (2)
3 for which an owners license is initially issued after the
4 effective date of this amendatory Act of 1999, whichever
5 comes first, shall be paid from the State Gaming Fund into
6 the State Universities Athletic Capital Improvement Fund.
7 (d) From time to time, the Board shall transfer the
8 remainder of the funds generated by this Act into the
9 Education Assistance Fund, created by Public Act 86-0018, of
10 the State of Illinois.
11 (e) Nothing in this Act shall prohibit the unit of local
12 government designated as the home dock of the riverboat from
13 entering into agreements with other units of local government
14 in this State or in other states to share its portion of the
15 tax revenue.
16 (f) To the extent practicable, the Board shall
17 administer and collect the wagering taxes imposed by this
18 Section in a manner consistent with the provisions of
19 Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
20 6c, 8, 9, and 10 of the Retailers' Occupation Tax Act and
21 Section 3-7 of the Uniform Penalty and Interest Act.
22 (g) This Section is repealed upon the expiration,
23 termination, or nonrenewal of all owners licenses in effect
24 on the effective date of this amendatory Act of the 93rd
25 General Assembly. (Source: P.A. 91-40, eff. 6-25-99; 92-595,
26 eff. 6-28-02.)
27 (230 ILCS 10/13.2 new)
28 Sec 13.2. Competitive bidding tax.
29 (a) For all licenses issued on or after the effective
30 date of this amendatory Act of the 93rd General Assembly
31 pursuant to the competitive bidding process under subsection
32 (e-5) of Section 7, there is imposed upon each licensee a
33 competitive bidding tax equal to the amount of its bid under
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1 subsection (e-5) of Section 7. The taxes imposed under this
2 Section shall be paid to the Board no later than 3:00 o'clock
3 p.m. of the day after the day when the wagers were made.
4 (b) Of the tax moneys collected from a licensee under
5 this Section, 25% of the tax revenue deposited in the State
6 Gaming Fund under this Section shall be paid, subject to
7 appropriation by the General Assembly, to the unit of local
8 government that is designated as the home dock of the
9 licensee's riverboat.
10 (c) Appropriations, as approved by the General Assembly,
11 may be made from the State Gaming Fund to the Department of
12 Revenue and the Department of State Police for the
13 administration and enforcement of this Act.
14 (d) From time to time, the Board shall transfer the
15 remainder of the funds generated by this Act into the
16 Education Assistance Fund, created by Public Act 86-0018, of
17 the State of Illinois.
18 (e) Nothing in this Act shall prohibit the unit of local
19 government designated as the home dock of the riverboat from
20 entering into agreements with other units of local government
21 in this State or in other states to share its portion of the
22 tax revenue.
23 (f) To the extent practicable, the Board shall
24 administer and collect the wagering taxes imposed by this
25 Section in a manner consistent with the provisions of
26 Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
27 6c, 8, 9, and 10 of the Retailers' Occupation Tax Act and
28 Section 3-7 of the Uniform Penalty and Interest Act.
29 (230 ILCS 10/11.2 rep.)
30 Section 10. The Riverboat Gambling Act is amended by
31 repealing Section 11.2.
32 (230 ILCS 5/54 rep.)
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1 Section 15. The Illinois Horse Racing Act of 1975 is
2 amended by repealing Section 54.
3 Section 99. Effective date. This Act takes effect upon
4 becoming law.