HB2380ham001 93RD GENERAL ASSEMBLY

Rep. Charles G. Morrow III

Filed: 3/23/2004

09300HB2380ham001 LRB093 09192 LRD 48855 a

AMENDMENT TO HOUSE BILL 2380

AMENDMENT NO. ______. Amend House Bill 2380 by replacing everything after the enacting clause with the following:

"Section 5. The State Finance Act is amended by adding Section 5.625 as follows:

(30 ILCS 105/5.625 new)

Sec. 5.625. The Universal Service Surcharge Fund.

Section 10. The Public Utilities Act is amended by adding Sections 8-207.5 and 9-222.4 as follows:

(220 ILCS 5/8-207.5 new)

Sec. 8-207.5. Percentage of Income Payment Plan.

(a) An electric or gas public utility that provides service to consumers in Illinois shall participate in the Percentage of Income Payment Plan established under the Energy Assistance Act of 1989.

(b) As a part of the percentage of income payment plan, an electric or gas public utility shall establish and implement an arrearage forgiveness program for consumers who are participating in the plan. The arrearage forgiveness program shall provide that one-twelfth of a participant's arrearage shall be forgiven for every 3 months of participation in the plan.

(c) Notwithstanding any other provision of this Act, an electric or gas public utility may not disconnect service to any residential customer who is a participant in the Percentage of Income Payment Plan.

(220 ILCS 5/9-222.4 new)

Sec. 9-222.4. Universal Service Fund Surcharge.

(a) The Commission shall establish a surcharge (universal service rider) to be imposed by a public utility upon gas and electricity service provided to consumers in this State. The amount that may be recovered under the universal service rider for a given year shall be limited to the amount by which the cost of gas or electricity provided to consumers participating in the Percentage of Income Payment Plan exceeds the amount paid by those consumers for gas or electricity. The amount of the surcharge shall be adjusted each year to reflect the actual costs incurred during the previous year.

(b) Moneys received under the universal service rider shall be paid to the Commission and deposited into the Universal Service Surcharge Fund, a special fund hereby created in the State Treasury. Subject to appropriation, the moneys in the Universal Service Surcharge Fund shall be used to pay providers of gas or electricity the amount by which the cost of gas or electricity provided to consumers participating in the Percentage of Income Payment Plan exceeded the amount paid by those consumers to the provider for that gas or electricity.

Section 13. The Riverboat Gambling Act is amended by changing Section 13 as follows:

(230 ILCS 10/13) (from Ch. 120, par. 2413)

Sec. 13. Wagering tax; rate; distribution.

(a) Until January 1, 1998, a tax is imposed on the adjusted gross receipts received from gambling games authorized under this Act at the rate of 20%.

(a-1) From January 1, 1998 until July 1, 2002, a privilege tax is imposed on persons engaged in the business of conducting riverboat gambling operations, based on the adjusted gross receipts received by a licensed owner from gambling games authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and including $25,000,000;

20% of annual adjusted gross receipts in excess of $25,000,000 but not exceeding $50,000,000;

25% of annual adjusted gross receipts in excess of $50,000,000 but not exceeding $75,000,000;

30% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000;

35% of annual adjusted gross receipts in excess of $100,000,000.

(a-2) From July 1, 2002 until July 1, 2003, a privilege tax is imposed on persons engaged in the business of conducting riverboat gambling operations, other than licensed managers conducting riverboat gambling operations on behalf of the State, based on the adjusted gross receipts received by a licensed owner from gambling games authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and including $25,000,000;

22.5% of annual adjusted gross receipts in excess of $25,000,000 but not exceeding $50,000,000;

27.5% of annual adjusted gross receipts in excess of $50,000,000 but not exceeding $75,000,000;

32.5% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000;

37.5% of annual adjusted gross receipts in excess of $100,000,000 but not exceeding $150,000,000;

45% of annual adjusted gross receipts in excess of $150,000,000 but not exceeding $200,000,000;

50% of annual adjusted gross receipts in excess of $200,000,000.

(a-3) Beginning July 1, 2003, a privilege tax is imposed on persons engaged in the business of conducting riverboat gambling operations, other than licensed managers conducting riverboat gambling operations on behalf of the State, based on the adjusted gross receipts received by a licensed owner from gambling games authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and including $25,000,000;

27.5% of annual adjusted gross receipts in excess of $25,000,000 but not exceeding $37,500,000;

32.5% of annual adjusted gross receipts in excess of $37,500,000 but not exceeding $50,000,000;

37.5% of annual adjusted gross receipts in excess of $50,000,000 but not exceeding $75,000,000;

45% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000;

50% of annual adjusted gross receipts in excess of $100,000,000 but not exceeding $250,000,000;

70% of annual adjusted gross receipts in excess of $250,000,000.

An amount equal to the amount of wagering taxes collected under this subsection (a-3) that are in addition to the amount of wagering taxes that would have been collected if the wagering tax rates under subsection (a-2) were in effect shall be paid into the Common School Fund.

The privilege tax imposed under this subsection (a-3) shall no longer be imposed beginning on the earlier of (i) July 1, 2005; (ii) the first date after June 20, 2003 the effective date of this amendatory Act of the 93rd General Assembly that riverboat gambling operations are conducted pursuant to a dormant license; or (iii) the first day that riverboat gambling operations are conducted under the authority of an owners license that is in addition to the 10 owners licenses initially authorized under this Act. For the purposes of this subsection (a-3), the term "dormant license" means an owners license that is authorized by this Act under which no riverboat gambling operations are being conducted on June 20, 2003 the effective date of this amendatory Act of the 93rd General Assembly.

(a-4) Beginning on the first day on which the tax imposed under subsection (a-3) is no longer imposed, a privilege tax is imposed on persons engaged in the business of conducting riverboat gambling operations, other than licensed managers conducting riverboat gambling operations on behalf of the State, based on the adjusted gross receipts received by a licensed owner from gambling games authorized under this Act at the following rates:

15% of annual adjusted gross receipts up to and including $25,000,000;

22.5% of annual adjusted gross receipts in excess of $25,000,000 but not exceeding $50,000,000;

27.5% of annual adjusted gross receipts in excess of $50,000,000 but not exceeding $75,000,000;

32.5% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000;

37.5% of annual adjusted gross receipts in excess of $100,000,000 but not exceeding $150,000,000;

45% of annual adjusted gross receipts in excess of $150,000,000 but not exceeding $200,000,000;

50% of annual adjusted gross receipts in excess of $200,000,000.

(a-8) Riverboat gambling operations conducted by a licensed manager on behalf of the State are not subject to the tax imposed under this Section.

(a-10) The taxes imposed by this Section shall be paid by the licensed owner to the Board not later than 3:00 o'clock p.m. of the day after the day when the wagers were made.

(b) Until January 1, 1998, 25% of the tax revenue deposited in the State Gaming Fund under this Section shall be paid, subject to appropriation by the General Assembly, to the unit of local government which is designated as the home dock of the riverboat. Beginning January 1, 1998, from the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to 5% of adjusted gross receipts generated by a riverboat shall be paid monthly, subject to appropriation by the General Assembly, to the unit of local government that is designated as the home dock of the riverboat. From the tax revenue deposited in the State Gaming Fund pursuant to riverboat gambling operations conducted by a licensed manager on behalf of the State, an amount equal to 5% of adjusted gross receipts generated pursuant to those riverboat gambling operations shall be paid monthly, subject to appropriation by the General Assembly, to the unit of local government that is designated as the home dock of the riverboat upon which those riverboat gambling operations are conducted.

(c) Appropriations, as approved by the General Assembly, may be made from the State Gaming Fund to the Department of Revenue and the Department of State Police for the administration and enforcement of this Act, or to the Department of Human Services for the administration of programs to treat problem gambling.

(c-5) After the payments required under subsections (b) and (c) have been made, an amount equal to 15% of the adjusted gross receipts of (1) an owners licensee that relocates pursuant to Section 11.2, (2) an owners licensee license conducting riverboat gambling operations pursuant to an owners license that is initially issued after June 25, 1999, or (3) the first riverboat gambling operations conducted by a licensed manager on behalf of the State under Section 7.3 7.2, whichever comes first, shall be paid from the State Gaming Fund into the Horse Racing Equity Fund.

(c-10) Each year the General Assembly shall appropriate from the General Revenue Fund to the Education Assistance Fund an amount equal to the amount paid into the Horse Racing Equity Fund pursuant to subsection (c-5) in the prior calendar year.

(c-15) After the payments required under subsections (b), (c), and (c-5) have been made, an amount equal to 2% of the adjusted gross receipts of (1) an owners licensee that relocates pursuant to Section 11.2, (2) an owners licensee conducting riverboat gambling operations pursuant to an owners license that is initially issued after June 25, 1999, or (3) the first riverboat gambling operations conducted by a licensed manager on behalf of the State under Section 7.3 7.2, whichever comes first, shall be paid, subject to appropriation from the General Assembly, from the State Gaming Fund to each home rule county with a population of over 3,000,000 inhabitants for the purpose of enhancing the county's criminal justice system.

(c-20) Each year the General Assembly shall appropriate from the General Revenue Fund to the Education Assistance Fund an amount equal to the amount paid to each home rule county with a population of over 3,000,000 inhabitants pursuant to subsection (c-15) in the prior calendar year.

(c-25) After the payments required under subsections (b), (c), (c-5), and (c-15) have been made, an amount equal to 2% of the adjusted gross receipts of (1) an owners licensee license that relocates pursuant to Section 11.2, (2) an owners licensee license conducting riverboat gambling operations pursuant to an owners license that is initially issued after June 25, 1999, or (3) the first riverboat gambling operations conducted by a licensed manager on behalf of the State under Section 7.3 7.2, whichever comes first, shall be paid from the State Gaming Fund to Chicago State University.

(c-30) After the payments required under subsections (b), (c), (c-5), (c-15), and (c-25) have been made, an amount equal to 1% of the adjusted gross receipts of each riverboat shall be paid from the State Gaming Fund to the Supplemental Low-Income Energy Assistance Fund.

(c-35) Each year the General Assembly shall appropriate from the General Revenue Fund to the Education Assistance Fund an amount equal to the amount paid into the Supplemental Low-Income Energy Assistance Fund pursuant to subsection (c-30) in the prior calendar year.

(d) From time to time, the Board shall transfer the remainder of the funds generated by this Act into the Education Assistance Fund, created by Public Act 86-0018, of the State of Illinois.

(e) Nothing in this Act shall prohibit the unit of local government designated as the home dock of the riverboat from entering into agreements with other units of local government in this State or in other states to share its portion of the tax revenue.

(f) To the extent practicable, the Board shall administer and collect the wagering taxes imposed by this Section in a manner consistent with the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty and Interest Act.

(Source: P.A. 92-595, eff. 6-28-02; 93-27, eff. 6-20-03; 93-28, eff. 6-20-03; revised 1-28-04.)

Section 15. The Energy Assistance Act of 1989 is amended by adding Section 4.5 as follows:

(305 ILCS 20/4.5 new)

Sec. 4.5. Percentage of Income Payment Plan.

(a) In addition to the energy assistance program established under Section 4, the Department shall institute a Percentage of Income Payment Plan to further ensure the availability of heating and electric service to low income citizens. The Department shall implement the plan by rule. The plan shall be consistent with the objectives of this Section. The Department shall ensure that the plan is in operation by November 1, 2004, and may enter into such contracts and other agreements with local agencies as may be necessary for the purpose of administering the plan.

(b) The plan shall be coordinated with the energy assistance program. Application for benefits shall be made jointly for both the Percentage of Income Payment Plan and the energy assistance program. An applicant for the Percentage of Income Payment Plan must also apply for the energy assistance program. In determining benefit distribution under the energy assistance program and the Percentage of Income Payment Plan, the Department shall consider utility prices, household size, income, and geographic location. The amounts distributed under the energy assistance program shall not exceed 40% of energy costs for the lowest income level of eligible households nor 15% of energy costs for the highest income level of eligible households.

(c) In order to be eligible for the Percentage of Income Payment Plan, an applicant must have a household income that is at or below 150% of the federal poverty level. A resident eligible to participate in the plan shall be required to pay no more than 6% of his or her annual income for gas and electric service. A resident whose household income is at or below 50% of the federal poverty level shall be required to pay no more than 3% of his or her annual income for gas and electric service. For purposes of this subsection, a consumer's annual gas and electric costs shall be determined after deducting any amounts the consumer receives under the energy assistance program and all other energy assistance programs.".