093_SB1607ham003











                                     LRB093 02991 LRD 17339 a

 1                    AMENDMENT TO SENATE BILL 1607

 2        AMENDMENT NO.     .  Amend Senate Bill 1607, AS  AMENDED,
 3    by replacing the title with the following:

 4        "AN ACT in relation to gaming."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 10.  The Riverboat Gambling Act  is  amended  by
 8    changing  Sections  2, 4, 6, 7, 10, 11, 11.1, 12, 13, 15, and
 9    23 and adding Sections 7.1, 7.2, and 7.3 as follows:

10        (230 ILCS 10/2) (from Ch. 120, par. 2402)
11        Sec. 2.  Legislative Intent.  (a) This Act is intended to
12    benefit the people of the  State  of  Illinois  by  assisting
13    economic  development  and  promoting Illinois tourism and by
14    increasing the amount of revenues available to the  State  to
15    assist and support education.
16        (b)  While   authorization  of  riverboat  gambling  will
17    enhance investment, development and tourism in  Illinois,  it
18    is  recognized that it will do so successfully only if public
19    confidence and trust in the credibility and integrity of  the
20    gambling operations and the regulatory process is maintained.
21    Therefore,  regulatory provisions of this Act are designed to
 
                            -2-      LRB093 02991 LRD 17339 a
 1    strictly regulate the facilities, persons,  associations  and
 2    practices  related  to  gambling  operations  pursuant to the
 3    police powers  of  the  State,  including  comprehensive  law
 4    enforcement supervision.
 5        (c)  The Illinois Gaming Board established under this Act
 6    should,  as  soon  as  possible, inform each applicant for an
 7    owners license of the Board's  intent  to  grant  or  deny  a
 8    license.
 9    (Source: P.A. 86-1029.)

10        (230 ILCS 10/4) (from Ch. 120, par. 2404)
11        Sec. 4.  Definitions. As used in this Act:
12        (a)  "Board" means the Illinois Gaming Board.
13        (b)  "Occupational license" means a license issued by the
14    Board  to  a  person or entity to perform an occupation which
15    the Board has identified as requiring a license to engage  in
16    riverboat gambling in Illinois.
17        (c)  "Gambling  game"  includes,  but  is not limited to,
18    baccarat, twenty-one, poker, craps, slot machine, video  game
19    of  chance,  roulette wheel, klondike table, punchboard, faro
20    layout, keno layout, numbers ticket, push card,  jar  ticket,
21    or  pull  tab  which is authorized by the Board as a wagering
22    device under this Act.
23        (d)  "Riverboat" means a self-propelled excursion boat, a
24    permanently moored barge, or permanently moored  barges  that
25    are  permanently  fixed together to operate as one vessel, on
26    which lawful gambling is authorized and licensed as  provided
27    in this Act.
28        (e)  "Managers  license"  means  a  license issued by the
29    Board to a person or entity  to  manage  gambling  operations
30    conducted by the State pursuant to Section 7.2 (Blank).
31        (f)  "Dock"  means  the  location where a riverboat moors
32    for the purpose of embarking passengers for and  disembarking
33    passengers from the riverboat.
 
                            -3-      LRB093 02991 LRD 17339 a
 1        (g)  "Gross  receipts"  means  the  total amount of money
 2    exchanged for the purchase of  chips,  tokens  or  electronic
 3    cards by riverboat patrons.
 4        (h)  "Adjusted  gross  receipts" means the gross receipts
 5    less winnings paid to wagerers.
 6        (i)  "Cheat" means to alter  the  selection  of  criteria
 7    which  determine  the result of a gambling game or the amount
 8    or frequency of payment in a gambling game.
 9        (j)  "Department" means the Department of Revenue.
10        (k)  "Gambling operation" means the conduct of authorized
11    gambling games upon a riverboat.
12        (l)  "License bid" means the lump  sum  amount  of  money
13    that  an applicant bids and agrees to pay the State in return
14    for an owners license that is re-issued on or after  July  1,
15    2003.
16        (m)  The  terms "minority person" and "female" shall have
17    the same meaning as defined in  Section  2  of  the  Business
18    Enterprise   for   Minorities,   Females,  and  Persons  with
19    Disabilities Act.
20    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

21        (230 ILCS 10/6) (from Ch. 120, par. 2406)
22        Sec. 6.  Application for Owners License.
23        (a)  A qualified person may apply to  the  Board  for  an
24    owners  license  to conduct a riverboat gambling operation as
25    provided in this Act.  The application shall be made on forms
26    provided by the Board and shall contain such  information  as
27    the  Board  prescribes,  including  but  not  limited  to the
28    identity of the riverboat on which such gambling operation is
29    to be conducted and the exact location where  such  riverboat
30    will  be  docked,  a certification that the riverboat will be
31    registered under this Act at all times during which  gambling
32    operations  are  conducted  on  board,  detailed  information
33    regarding  the ownership and management of the applicant, and
 
                            -4-      LRB093 02991 LRD 17339 a
 1    detailed personal information regarding  the  applicant.  Any
 2    application for an owners license to be re-issued on or after
 3    June  1,  2003 shall also include the applicant's license bid
 4    in a form prescribed by the Board.  Information  provided  on
 5    the  application  shall  be  used  as  a basis for a thorough
 6    background investigation which the Board shall  conduct  with
 7    respect  to  each applicant.  An incomplete application shall
 8    be cause for denial of a license by the Board.
 9        (b)  Applicants shall submit with their  application  all
10    documents,  resolutions,  and  letters  of  support  from the
11    governing body that represents  the  municipality  or  county
12    wherein the licensee will dock.
13        (c)  Each  applicant shall disclose the identity of every
14    person, association, trust or corporation  having  a  greater
15    than   1%  direct  or  indirect  pecuniary  interest  in  the
16    riverboat  gambling  operation  with  respect  to  which  the
17    license is sought.  If the disclosed entity is a  trust,  the
18    application  shall  disclose  the  names and addresses of the
19    beneficiaries; if a corporation, the names and  addresses  of
20    all  stockholders  and directors; if a partnership, the names
21    and addresses of all partners, both general and limited.
22        (d)  An application shall be  filed  with  the  Board  by
23    January  1  of the year preceding any calendar year for which
24    an applicant seeks an owners license;  however,  applications
25    for  an  owners  license  permitting operations on January 1,
26    1991 shall be filed by July 1, 1990.  An application  fee  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
30    $50,000, the applicant shall pay the additional amount to the
31    Board.  If the costs  of  the  investigation  are  less  than
32    $50,000,   the  applicant  shall  receive  a  refund  of  the
33    remaining  amount.   All  information,  records,  interviews,
34    reports, statements, memoranda or other data supplied  to  or
 
                            -5-      LRB093 02991 LRD 17339 a
 1    used   by   the   Board  in  the  course  of  its  review  or
 2    investigation of an application for a license under this  Act
 3    shall  be privileged, strictly confidential and shall be used
 4    only for  the  purpose  of  evaluating  an  applicant.   Such
 5    information,   records,   interviews,   reports,  statements,
 6    memoranda or other data shall not be admissible as  evidence,
 7    nor  discoverable  in  any action of any kind in any court or
 8    before any tribunal, board, agency or person, except for  any
 9    action deemed necessary by the Board.
10        (e)  The  Board  shall charge each applicant a fee set by
11    the Department of State Police to defray the costs associated
12    with the search and classification of  fingerprints  obtained
13    by  the  Board  with  respect to the applicant's application.
14    These fees shall be paid into the State Police Services Fund.
15        (f)  The licensed owner shall  be  the  person  primarily
16    responsible for the boat itself.  Only one riverboat gambling
17    operation  may  be  authorized by the Board on any riverboat.
18    The applicant must identify each riverboat it intends to  use
19    and  certify  that  the  riverboat:  (1)  has  the authorized
20    capacity required in this Act; (2) is accessible to  disabled
21    persons;   and  (3)  is  fully  registered  and  licensed  in
22    accordance with any applicable laws.
23        (g)  A person who knowingly makes a false statement on an
24    application is guilty of a Class A misdemeanor.
25    (Source: P.A. 91-40, eff. 6-25-99.)

26        (230 ILCS 10/7) (from Ch. 120, par. 2407)
27        Sec. 7.  Owners Licenses.
28        (a)  The Board shall issue owners  licenses  to  persons,
29    firms  or  corporations  which  apply  for such licenses upon
30    payment to the Board of the non-refundable license fee set by
31    the Board, upon payment of a  $25,000  license  fee  for  the
32    first  year  of  operation  and a $5,000 license fee for each
33    succeeding year and upon a determination by  the  Board  that
 
                            -6-      LRB093 02991 LRD 17339 a
 1    the  applicant is eligible for an owners  license pursuant to
 2    this Act and the rules of  the  Board.   A  person,  firm  or
 3    corporation is ineligible to receive an owners 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;
 
                            -7-      LRB093 02991 LRD 17339 a
 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  extent  to  which  the  ownership  of  the
 7        applicant   reflects   the  diversity  of  the  State  by
 8        including minority persons and females and the good faith
 9        affirmative action plan of  each  applicant  to  recruit,
10        train and upgrade minority persons and females minorities
11        in all employment classifications;
12             (5)  the  financial  ability  of  the  applicant  to
13        purchase  and  maintain  adequate  liability and casualty
14        insurance;
15             (6)  whether    the    applicant    has     adequate
16        capitalization  to provide and maintain, for the duration
17        of a license, a riverboat; and
18             (7)  the extent to which the  applicant  exceeds  or
19        meets  other  standards  for  the  issuance  of an owners
20        license which the Board may adopt by rule; and
21             (8)  The amount of the applicant's license bid.
22        (c)  Each owners license shall specify  the  place  where
23    riverboats shall operate and dock.
24        (d)  Each applicant shall submit with his application, on
25    forms provided by the Board, 2 sets of his fingerprints.
26        (e)  The  Board  may  issue up to 10 licenses authorizing
27    the holders of  such  licenses  to  own  riverboats.  In  the
28    application  for an owners license, the applicant shall state
29    the dock at which the riverboat is based  and  the  water  on
30    which the riverboat will be located.  The Board shall issue 5
31    licenses  to  become  effective  not  earlier than January 1,
32    1991.  Three  of  such  licenses  shall  authorize  riverboat
33    gambling  on the Mississippi River, or in a municipality that
34    (1) borders on the Mississippi River or is within 5 miles  of
 
                            -8-      LRB093 02991 LRD 17339 a
 1    the  city  limits  of  a  municipality  that  borders  on the
 2    Mississippi River and (2), on  the  effective  date  of  this
 3    amendatory  Act of the 93rd General Assembly, has a riverboat
 4    conducting  riverboat  gambling  operations  pursuant  to   a
 5    license  issued under this Act,  one of which shall authorize
 6    riverboat gambling from a home dock in the city of  East  St.
 7    Louis, and one of which shall authorize riverboat gambling on
 8    the  Mississippi  River or in a municipality that (1) borders
 9    on the Mississippi River or is within 5  miles  of  the  city
10    limits  of  a  municipality  that  borders on the Mississippi
11    River and (2) on the effective date of this amendatory Act of
12    the  92nd  General  Assembly  has  a   riverboat   conducting
13    riverboat  gambling  operations  pursuant to a license issued
14    under this Act. One other license shall  authorize  riverboat
15    gambling on the Illinois River south of Marshall County.  The
16    Board  shall issue one additional license to become effective
17    not  earlier  than  March  1,  1992,  which  shall  authorize
18    riverboat gambling on the Des Plaines River in  Will  County.
19    The Board may issue 4 additional licenses to become effective
20    not  earlier  than  March  1, 1992.  In determining the water
21    upon which riverboats will operate, the Board shall  consider
22    the  economic benefit which riverboat gambling confers on the
23    State, and shall seek to assure that all regions of the State
24    share in the economic benefits of riverboat gambling.
25        In granting all licenses, the Board  may  give  favorable
26    consideration  to  economically depressed areas of the State,
27    to applicants presenting plans which provide for  significant
28    economic  development  over  a  large geographic area, and to
29    applicants who currently operate non-gambling  riverboats  in
30    Illinois.  The Board shall review all applications for owners
31    licenses, and shall inform  each  applicant  of  the  Board's
32    decision.  The  Board  may  grant  an  owners  license  to an
33    applicant that has not submitted the highest license bid, but
34    if it does not select the highest  bidder,  the  Board  shall
 
                            -9-      LRB093 02991 LRD 17339 a
 1    issue a written decision explaining why another applicant was
 2    selected  and  identifying  the  factors  set  forth  in this
 3    Section that favored the winning bidder.
 4        In addition to any other revocation powers granted to the
 5    Board under this Act, the Board may revoke the owners license
 6    of a licensee which fails to begin conducting gambling within
 7    15  months  of  receipt  of  the  Board's  approval  of   the
 8    application  if  the Board determines that license revocation
 9    is in the best interests of the State.
10        (f)  The first 10 owners licenses issued under  this  Act
11    shall  permit  the  holder  to  own  up  to  2 riverboats and
12    equipment thereon for a period of 3 years after the effective
13    date of the license. Holders of the first 10 owners  licenses
14    must  pay  the  annual  license  fee  for each of the 3 years
15    during which they are authorized to own riverboats.
16        (g)  Upon the termination, expiration, or  revocation  of
17    each  of the first 10 licenses, which shall be issued for a 3
18    year period, all licenses are renewable annually upon payment
19    of the fee and a determination by the Board that the licensee
20    continues to meet all of the requirements of this Act and the
21    Board's rules.  However, for licenses renewed on or after May
22    1, 1998, renewal shall be for a period of 4 years, unless the
23    Board sets a shorter period.
24        (h)  An owners license shall entitle the licensee to  own
25    up  to  2  riverboats.   A licensee shall limit the number of
26    gambling participants to 1,200 for any such owners license. A
27    licensee may operate both  of  its  riverboats  concurrently,
28    provided  that  the  total number of gambling participants on
29    both riverboats does not exceed 1,200. Riverboats licensed to
30    operate on the Mississippi River and the Illinois River south
31    of Marshall County shall have an authorized  capacity  of  at
32    least  500  persons.  Any other riverboat licensed under this
33    Act shall  have  an  authorized  capacity  of  at  least  400
34    persons.
 
                            -10-     LRB093 02991 LRD 17339 a
 1        (i)  A licensed owner is authorized to apply to the Board
 2    for  and,  if approved therefor, to receive all licenses from
 3    the  Board  necessary  for  the  operation  of  a  riverboat,
 4    including a liquor license, a license to  prepare  and  serve
 5    food  for  human  consumption,  and other necessary licenses.
 6    All use, occupation and excise taxes which apply to the  sale
 7    of  food and beverages in this State and all taxes imposed on
 8    the sale or use of tangible personal property apply  to  such
 9    sales aboard the riverboat.
10        (j)  The   Board   may   issue   or  re-issue  a  license
11    authorizing a riverboat to dock in a municipality or  approve
12    a  relocation  under  Section  11.2  only  if,  prior  to the
13    issuance or re-issuance  of  the  license  or  approval,  the
14    governing  body  of  the  municipality in which the riverboat
15    will dock has by a majority  vote  approved  the  docking  of
16    riverboats  in  the  municipality.   The  Board  may issue or
17    re-issue a license authorizing a riverboat to dock  in  areas
18    of  a county outside any municipality or approve a relocation
19    under  Section  11.2  only  if,  prior  to  the  issuance  or
20    re-issuance of the license or approval, the governing body of
21    the county has by a majority vote approved of the docking  of
22    riverboats within such areas.
23    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

24        (230 ILCS 10/7.1 new)
25        Sec.  7.1.  Re-issuance  of revoked or non-renewed owners
26    licenses.
27        (a) If an owners license terminates  or  expires  without
28    renewal  or  the  Board revokes or determines not to renew an
29    owners license  (including,  without  limitation,  an  owners
30    license  for  a  licensee  that  was not conducting riverboat
31    gambling operations  on  January  1,  1998),  the  Board  may
32    re-issue such license to a qualified applicant pursuant to an
33    open and competitive bidding process, as set forth in Section
 
                            -11-     LRB093 02991 LRD 17339 a
 1    7.5, and subject to the maximum number of authorized licenses
 2    set forth in Section 7(e).
 3        (b)  To  be  a  qualified  applicant,  a person, firm, or
 4    corporation cannot be ineligible to receive an owners license
 5    under Section 7(a) and must  submit  an  application  for  an
 6    owners  license  that  complies  with  Section  6.  Each such
 7    applicant  must  also  submit  evidence  to  the  Board  that
 8    minority persons and females hold ownership interests in  the
 9    applicant of at least 16% and 4% respectively.
10        (c)  Notwithstanding  anything to the contrary in Section
11    7(e), an applicant may apply to the  Board  for  approval  of
12    relocation of a re-issued license to a new home dock location
13    authorized  under  Section  3(c) upon receipt of the approval
14    from the municipality or county, as the case may be, pursuant
15    to Section 7(j).
16        (d) In determining whether to grant  a  re-issued  owners
17    license  to an applicant, the Board shall consider all of the
18    factors set forth in Sections 7(b) and (e)  as  well  as  the
19    amount  of  the  applicant's license bid. The Board may grant
20    the re-issued owners license to an  applicant  that  has  not
21    submitted  the highest license bid, but if it does not select
22    the highest bidder, the Board shall issue a written  decision
23    explaining why another applicant was selected and identifying
24    the  factors  set forth in Sections 7(b) and (e) that favored
25    the winning bidder.
26        (e) Re-issued owners licenses shall be subject to  annual
27    license  fees  as  provided  for in Section 7(a) and shall be
28    governed by the provisions of Sections 7(f),  (g),  (h),  and
29    (i).

30        (230 ILCS 10/7.2 new)
31        Sec.   7.2.  Temporary   operating  permits.  Any  person
32    operating under a temporary operating permit issued  pursuant
33    to  86  Ill.  Admin.  Code  3000.230  shall  be  deemed to be
 
                            -12-     LRB093 02991 LRD 17339 a
 1    operating under the  authority  of  an  owner's  license  for
 2    purposes  of  Section  13 of this Act. This Section shall not
 3    affect in any way the licensure requirements of this Act.

 4        (230 ILCS 10/7.3 new)
 5        Sec. 7.3.  State conduct of gambling operations.
 6        (a)  If, after reviewing each application for a re-issued
 7    license, the Board determines that  the  highest  prospective
 8    total  revenue  to  the  State  would  be  derived from State
 9    conduct of the gambling operation in lieu of  re-issuing  the
10    license,  the  Board  shall  inform  each  applicant  of  its
11    decision.   The  Board  shall  thereafter have the authority,
12    without obtaining an owners  license,  to  conduct  riverboat
13    gambling   operations   as   previously   authorized  by  the
14    terminated, expired, revoked, or nonrenewed license through a
15    licensed manager selected pursuant to an open and competitive
16    bidding process as set forth in Section 7.5 and  as  provided
17    in Section 7.4.
18        (b)  The  Board  may  locate  any  riverboat  on  which a
19    gambling operation is conducted by the State in any home dock
20    location authorized by Section 3(c) upon receipt of  approval
21    from   a   majority   vote  of  the  governing  body  of  the
22    municipality or county, as the case  may  be,  in  which  the
23    riverboat will dock.
24        (c)  The  Board  shall  have  jurisdiction over and shall
25    supervise all gambling  operations  conducted  by  the  State
26    provided  for in this Act and shall have all powers necessary
27    and proper to fully and effectively execute the provisions of
28    this Act relating to gambling  operations  conducted  by  the
29    State.
30        (d)  The  maximum  number  of  owners licenses authorized
31    under Section 7(e) shall be reduced by one for each  instance
32    in  which  the  Board  authorizes  the  State  to  conduct  a
33    riverboat  gambling operation under subsection (a) in lieu of
 
                            -13-     LRB093 02991 LRD 17339 a
 1    re-issuing a license to an applicant under Section 7.1.

 2        (230 ILCS 10/7.4 new)
 3        Sec. 7.4.  Managers licenses.
 4        (a) A qualified person may  apply  to  the  Board  for  a
 5    managers license to operate and manage any gambling operation
 6    conducted  by  the  State.  The  application shall be made on
 7    forms  provided  by  the  Board  and   shall   contain   such
 8    information  as  the  Board  prescribes,  including  but  not
 9    limited  to  information  required in Sections 6(a), (b), and
10    (c) and information  relating  to  the  applicant's  proposed
11    price  to manage State gambling operations and to provide the
12    riverboat, gambling  equipment,  and  supplies  necessary  to
13    conduct State gambling operations.
14        (b)  Each  applicant  must  submit  evidence to the Board
15    that minority persons and females hold ownership interests in
16    the applicant of at least 16% and 4%, respectively.
17        (c) A person,  firm,  or  corporation  is  ineligible  to
18    receive a manager's license if:
19             (1)  the person has been convicted of a felony under
20        the laws of this State, any other state,  or  the  United
21        States;
22             (2)  the  person has been convicted of any violation
23        of  Article  28  of  the  Criminal  Code  of   1961,   or
24        substantially similar laws of any other jurisdiction;
25             (3)  the  person  has submitted an application for a
26        license under this Act which contains false information;
27             (4) the person is a member of the Board;
28             (5) a person defined in (1), (2), (3), or (4) is  an
29        officer,  director, or managerial employee of the firm or
30        corporation;
31             (6) the firm or corporation employs a person defined
32        in  (1),  (2),  (3),  or  (4)  who  participates  in  the
33        management or operation of gambling operations authorized
 
                            -14-     LRB093 02991 LRD 17339 a
 1        under this Act; or
 2             (7) a license of the person,  firm,  or  corporation
 3        issued  under  this  Act,  or a license to own or operate
 4        gambling facilities in any other jurisdiction,  has  been
 5        revoked.
 6        (d)   Each   applicant  shall  submit  with  his  or  her
 7    application, on forms prescribed by the Board, 2 sets of  his
 8    or her fingerprints.
 9        (e)  The  Board shall charge each applicant a fee, set by
10    the Board, to defray the costs associated with the background
11    investigation conducted by the Board.
12        (f) A person who knowingly makes a false statement on  an
13    application is guilty of a Class A misdemeanor.
14        (g)  The  managers  license  shall  be  for a term not to
15    exceed 10 years, shall be renewable at  the  Board's  option,
16    and  shall  contain  such  terms  and provisions as the Board
17    deems necessary to protect or  enhance  the  credibility  and
18    integrity  of  State gambling operations, achieve the highest
19    prospective total revenue to the State, and  otherwise  serve
20    the interests of the citizens of Illinois.
21        (h) Issuance of a managers license shall be subject to an
22    open and competitive bidding process. The Board may select an
23    applicant  other  than the lowest bidder by price. If it does
24    not select the lowest bidder, the Board shall issue a  notice
25    of who the lowest bidder was and a written decision as to why
26    another bidder was selected.

27        (230 ILCS 10/7.5 new)
28        Sec.  7.5  Competitive Bidding. When the Board determines
29    that it will re-issue an owners license pursuant to  an  open
30    and competitive bidding process, as set forth in Section 7.1,
31    or  that it will issue a managers license pursuant to an open
32    and competitive bidding process, as set forth in Section 7.4,
33    the open and competitive bidding process shall adhere to  the
 
                            -15-     LRB093 02991 LRD 17339 a
 1    following procedures:
 2        (1)  The  Board  shall  make  applications for owners and
 3    managers  licenses  available  to  the  public  and  allow  a
 4    reasonable time for applicants to submit applications to  the
 5    Board.
 6        (2)  During  the  filing  period  for  owners or managers
 7    license applications, the Board may retain the services of an
 8    investment banking firm to assist the Board in conducting the
 9    open and competitive bidding process.
10        (3)  After receiving all of the bid proposals, the  Board
11    shall  open  all  of  the  proposals  in  a  public forum and
12    disclose the prospective owners or  managers  names,  venture
13    partners,  if  any, and, in the case of applicants for owners
14    licenses, the locations of the proposed development sites.
15        (4)  The Board shall summarize the terms of the proposals
16    and may make this summary available to the public.
17        (5)  The Board shall  evaluate  the  proposals  within  a
18    reasonable time and select no more than 3 final applicants to
19    make presentations of their proposals to the Board.
20        (6)  The  final applicants shall make their presentations
21    to the Board on the same day during an open  session  of  the
22    Board.
23        (7)  As    soon   as   practicable   after   the   public
24    presentations by the final  applicants,  the  Board,  in  its
25    discretion,  may  conduct  further  negotiations  among the 3
26    final  applicants.  During  such  negotiations,  each   final
27    applicant  may  increase its license bid or otherwise enhance
28    its bid proposal. At the conclusion of such negotiations, the
29    Board shall select the  winning  proposal.  In  the  case  of
30    negotiations  for  an  owners  license, the Board may, at the
31    conclusion  of  such  negotiations,  make  the  determination
32    allowed under Section 7.3(a).
33        (8)  Upon selection of a winning  bid,  the  Board  shall
34    evaluate  the  winning bid within a reasonable period of time
 
                            -16-     LRB093 02991 LRD 17339 a
 1    for licensee suitability in accordance  with  all  applicable
 2    statutory and regulatory criteria.
 3        (9)  If  the  winning bidder is unable or otherwise fails
 4    to  consummate  the  transaction,  (including  if  the  Board
 5    determines that the  winning  bidder  does  not  satisfy  the
 6    suitability   requirements),  the  Board  may,  on  the  same
 7    criteria, select from  the  remaining  bidders  or  make  the
 8    determination allowed under Section 7.3(a).

 9        (230 ILCS 10/10) (from Ch. 120, par. 2410)
10        Sec.  10.  Bond of licensee.  Before an owners license is
11    issued or re-issued or a  managers  license  is  issued,  the
12    licensee  shall  post  a  bond  in the sum of $200,000 to the
13    State of Illinois. The bond shall be used to  guarantee  that
14    the  licensee  faithfully makes the payments, keeps his books
15    and records and makes reports,  and  conducts  his  games  of
16    chance  in  conformity with this Act and the rules adopted by
17    the Board.  The bond shall not be canceled  by  a  surety  on
18    less  than  30 days notice in writing to the Board. If a bond
19    is canceled and the licensee fails to file a  new  bond  with
20    the  Board  in the required amount on or before the effective
21    date  of  cancellation,  the  licensee's  license  shall   be
22    revoked.   The total and aggregate liability of the surety on
23    the bond is limited to the amount specified in the bond.
24    (Source: P.A. 86-1029.)

25        (230 ILCS 10/11) (from Ch. 120, par. 2411)
26        Sec. 11.  Conduct of gambling. Gambling may be  conducted
27    by  licensed  owners  or  licensed  managers on behalf of the
28    State aboard riverboats, subject to the following standards:
29             (1)  A  licensee  may  conduct  riverboat   gambling
30        authorized  under  this  Act  regardless  of  whether  it
31        conducts  excursion  cruises.   A licensee may permit the
32        continuous ingress  and  egress  of  passengers  for  the
 
                            -17-     LRB093 02991 LRD 17339 a
 1        purpose of gambling.
 2             (2)  (Blank).
 3             (3)  Minimum  and  maximum  wagers on games shall be
 4        set by the licensee.
 5             (4)  Agents of the Board and the Department of State
 6        Police may board and inspect any riverboat  at  any  time
 7        for  the purpose of determining whether this Act is being
 8        complied with.  Every riverboat, if under way  and  being
 9        hailed  by  a  law  enforcement  officer  or agent of the
10        Board, must stop immediately and lay to.
11             (5)  Employees of the Board shall have the right  to
12        be  present  on  the  riverboat or on adjacent facilities
13        under the control of the licensee.
14             (6)  Gambling  equipment  and  supplies  customarily
15        used in conducting riverboat gambling must  be  purchased
16        or  leased  only from suppliers licensed for such purpose
17        under this Act.
18             (7)  Persons licensed under this Act shall permit no
19        form of wagering on gambling games except as permitted by
20        this Act.
21             (8)  Wagers may  be  received  only  from  a  person
22        present  on a licensed riverboat.  No person present on a
23        licensed riverboat shall place  or  attempt  to  place  a
24        wager  on  behalf of another person who is not present on
25        the riverboat.
26             (9)  Wagering shall not be conducted with  money  or
27        other negotiable currency.
28             (10)  A  person  under age 21 shall not be permitted
29        on an  area  of  a  riverboat  where  gambling  is  being
30        conducted,  except  for a person at least 18 years of age
31        who is an employee of the riverboat  gambling  operation.
32        No  employee  under  age  21  shall  perform any function
33        involved in gambling by the patrons. No person under  age
34        21 shall be permitted to make a wager under this Act.
 
                            -18-     LRB093 02991 LRD 17339 a
 1             (11)  Gambling  excursion cruises are permitted only
 2        when the waterway for which the riverboat is licensed  is
 3        navigable,  as  determined  by  the Board in consultation
 4        with the U.S. Army Corps  of  Engineers.  This  paragraph
 5        (11)  does not limit the ability of a licensee to conduct
 6        gambling  authorized  under  this   Act   when   gambling
 7        excursion cruises are not permitted.
 8             (12)  All  tokens, chips or electronic cards used to
 9        make wagers must be purchased from a  licensed  owner  or
10        manager  either  aboard  a  riverboat  or  at  an onshore
11        facility which has been approved by the Board  and  which
12        is  located  where the riverboat docks. The tokens, chips
13        or electronic cards may  be  purchased  by  means  of  an
14        agreement under which the owner or manager extends credit
15        to  the  patron.   Such tokens, chips or electronic cards
16        may be used while  aboard  the  riverboat  only  for  the
17        purpose of making wagers on gambling games.
18             (13)  Notwithstanding any other Section of this Act,
19        in  addition  to the other licenses authorized under this
20        Act, the Board may issue special event licenses  allowing
21        persons   who  are  not  otherwise  licensed  to  conduct
22        riverboat  gambling  to  conduct  such  gambling   on   a
23        specified  date  or  series of dates.  Riverboat gambling
24        under such a license may take place on  a  riverboat  not
25        normally  used  for  riverboat gambling.  The Board shall
26        establish standards, fees and fines for, and  limitations
27        upon, such licenses, which may differ from the standards,
28        fees,  fines  and  limitations otherwise applicable under
29        this Act.  All such fees  shall  be  deposited  into  the
30        State  Gaming  Fund.   All  such fines shall be deposited
31        into the Education Assistance Fund, created by Public Act
32        86-0018, of the State of Illinois.
33             (14)  In addition to the  above,  gambling  must  be
34        conducted  in  accordance  with  all rules adopted by the
 
                            -19-     LRB093 02991 LRD 17339 a
 1        Board.
 2    (Source: P.A. 91-40, eff. 6-25-99.)

 3        (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
 4        Sec. 11.1.  Collection  of  amounts  owing  under  credit
 5    agreements.      Notwithstanding   any  applicable  statutory
 6    provision to the contrary, a licensed owner  or  manager  who
 7    extends  credit  to  a  riverboat gambling patron pursuant to
 8    Section 11 (a) (12) of this Act is  expressly  authorized  to
 9    institute  a  cause  of action to collect any amounts due and
10    owing under the extension of credit, as well as  the  owner's
11    or  manager's  costs, expenses and reasonable attorney's fees
12    incurred in collection.
13    (Source: P.A. 86-1029; 86-1389; 87-826.)

14        (230 ILCS 10/12) (from Ch. 120, par. 2412)
15        Sec. 12. Admission tax; fees.
16        (a)  A  tax  is  hereby  imposed   upon   admissions   to
17    riverboats operated by licensed owners authorized pursuant to
18    this  Act.   Until  July  1,  2002, the rate is $2 per person
19    admitted.  From Beginning July 1, 2002 until  July  1,  2003,
20    the  rate  is $3 per person admitted. Beginning July 1, 2003,
21    for a licensee that admitted 1,000,000 persons  or  fewer  in
22    the  previous  calendar  year,  the  rate  is  $3  per person
23    admitted; for a licensee that admitted  more  than  1,000,000
24    but  no  more than 2,300,000 persons in the previous calendar
25    year, the rate is $4 per person admitted; and for a  licensee
26    that  admitted  more  than  2,300,000 persons in the previous
27    calendar year, the rate  is  $5  per  person  admitted.  This
28    admission  tax  is imposed upon the licensed owner conducting
29    gambling.
30             (1)  The  admission  tax  shall  be  paid  for  each
31        admission.
32             (2)  (Blank).
 
                            -20-     LRB093 02991 LRD 17339 a
 1             (3)  The  riverboat  licensee  may  issue   tax-free
 2        passes to actual and necessary officials and employees of
 3        the  licensee  or  other  persons actually working on the
 4        riverboat.
 5             (4)  The number and issuance of tax-free  passes  is
 6        subject  to  the  rules  of  the Board, and a list of all
 7        persons to whom the tax-free passes are issued  shall  be
 8        filed with the Board.
 9        (a-5)  A  fee  is hereby imposed upon admissions operated
10    by licensed managers on  behalf  of  the  State  pursuant  to
11    Section  7.3  at the rates provided in this subsection (a-5).
12    For a licensee that admitted 1,000,000 persons  or  fewer  in
13    the  previous  calendar  year,  the  rate  is  $3  per person
14    admitted; for a licensee that admitted  more  than  1,000,000
15    but  no  more than 2,300,000 persons in the previous calendar
16    year, the rate is $4 per person admitted; and for a  licensee
17    that  admitted  more  than  2,300,000 persons in the previous
18    calendar year, the rate is $5 per person admitted.
19             (1)  The  admission  fee  shall  be  paid  for  each
20        admission.
21             (2)  (Blank).
22             (3)  The licensed manager may issue fee-free  passes
23        to  actual  and  necessary officials and employees of the
24        manager  or  other  persons  actually  working   on   the
25        riverboat.
26             (4)  The  number  and issuance of fee-free passes is
27        subject to the rules of the Board,  and  a  list  of  all
28        persons  to  whom the fee-free passes are issued shall be
29        filed with the Board.
30        (b)  From the tax imposed under subsection  (a)  and  the
31    fee  imposed  under  subsection  (a-5),  a municipality shall
32    receive from the State $1 for  each  person  embarking  on  a
33    riverboat  docked within the municipality, and a county shall
34    receive $1 for each person embarking on  a  riverboat  docked
 
                            -21-     LRB093 02991 LRD 17339 a
 1    within   the   county  but  outside  the  boundaries  of  any
 2    municipality.  The municipality's or county's share shall  be
 3    collected  by  the  Board on behalf of the State and remitted
 4    quarterly by the State,  subject  to  appropriation,  to  the
 5    treasurer  of the unit of local government for deposit in the
 6    general fund.
 7        (c)  The licensed owner shall pay  the  entire  admission
 8    tax  to  the  Board  and  the  licensed manager shall pay the
 9    entire admission fee to the Board.  Such  payments  shall  be
10    made  daily.  Accompanying  each payment shall be a return on
11    forms  provided  by  the  Board  which  shall  include  other
12    information regarding admissions as the  Board  may  require.
13    Failure to submit either the payment or the return within the
14    specified  time may result in suspension or revocation of the
15    owners or managers license.
16        (d)  The Board shall administer and collect the admission
17    tax imposed by this Section, to the extent practicable, in  a
18    manner  consistent  with the provisions of Sections 4, 5, 5a,
19    5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of
20    the Retailers' Occupation Tax Act  and  Section  3-7  of  the
21    Uniform Penalty and Interest Act.
22    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)

23        (230 ILCS 10/13) (from Ch. 120, par. 2413)
24        Sec. 13.  Wagering tax; rate; distribution.
25        (a)  Until  January  1,  1998,  a  tax  is imposed on the
26    adjusted  gross  receipts  received   from   gambling   games
27    authorized under this Act at the rate of 20%.
28        From  January 1, 1998 until July 1, 2002, a privilege tax
29    is imposed on persons engaged in the business  of  conducting
30    riverboat  gambling  operations,  based on the adjusted gross
31    receipts received by a licensed  owner  from  gambling  games
32    authorized under this Act at the following rates:
33             15%  of  annual  adjusted  gross  receipts up to and
 
                            -22-     LRB093 02991 LRD 17339 a
 1        including $25,000,000;
 2             20% of annual adjusted gross receipts in  excess  of
 3        $25,000,000 but not exceeding $50,000,000;
 4             25%  of  annual adjusted gross receipts in excess of
 5        $50,000,000 but not exceeding $75,000,000;
 6             30% of annual adjusted gross receipts in  excess  of
 7        $75,000,000 but not exceeding $100,000,000;
 8             35%  of  annual adjusted gross receipts in excess of
 9        $100,000,000.
10        Beginning July 1, 2002, a privilege  tax  is  imposed  on
11    persons  engaged  in  the  business  of  conducting riverboat
12    gambling operations, other than licensed managers  conducting
13    riverboat  gambling operations on behalf of the State,  based
14    on the adjusted gross receipts received by a  licensed  owner
15    from   gambling  games  authorized  under  this  Act  at  the
16    following rates:
17             15% of annual adjusted  gross  receipts  up  to  and
18        including $25,000,000;
19             22.5% of annual adjusted gross receipts in excess of
20        $25,000,000 but not exceeding $50,000,000;
21             27.5% of annual adjusted gross receipts in excess of
22        $50,000,000 but not exceeding $75,000,000;
23             32.5% of annual adjusted gross receipts in excess of
24        $75,000,000 but not exceeding $100,000,000;
25             37.5% of annual adjusted gross receipts in excess of
26        $100,000,000 but not exceeding $150,000,000;
27             45%  of  annual adjusted gross receipts in excess of
28        $150,000,000 but not exceeding $200,000,000;
29             50% of annual adjusted gross receipts in  excess  of
30        $200,000,000.
31    Riverboat gambling operations conducted by a licensed manager
32    on  behalf  of  the  State are not subject to the tax imposed
33    under this Section.
34        The taxes imposed by this Section shall be  paid  by  the
 
                            -23-     LRB093 02991 LRD 17339 a
 1    licensed  owner to the Board not later than 3:00 o'clock p.m.
 2    of the day after the day when the wagers were made.
 3        (b)  Until January  1,  1998,  25%  of  the  tax  revenue
 4    deposited  in  the State Gaming Fund under this Section shall
 5    be paid, subject to appropriation by the General Assembly, to
 6    the unit of local government which is designated as the  home
 7    dock  of  the  riverboat. Beginning January 1, 1998, from the
 8    tax revenue deposited in the State  Gaming  Fund  under  this
 9    Section,  an  amount  equal  to 5% of adjusted gross receipts
10    generated by a riverboat shall be paid  monthly,  subject  to
11    appropriation  by  the General Assembly, to the unit of local
12    government that  is  designated  as  the  home  dock  of  the
13    riverboat. From the tax revenue deposited in the State Gaming
14    Fund pursuant to riverboat gambling operations conducted by a
15    licensed  manager  on behalf of the State, an amount equal to
16    5% of adjusted gross receipts  generated  pursuant  to  those
17    riverboat  gambling operations shall be paid monthly, subject
18    to appropriation by the General  Assembly,  to  the  unit  of
19    local  government  that is designated as the home dock of the
20    riverboat upon which those riverboat gambling operations  are
21    conducted.
22        (c)  Appropriations, as approved by the General Assembly,
23    may  be  made from the State Gaming Fund to the Department of
24    Revenue  and  the  Department  of  State   Police   for   the
25    administration and enforcement of this Act.
26        (c-5)  After  the payments required under subsections (b)
27    and (c) have been  made,  an  amount  equal  to  15%  of  the
28    adjusted gross receipts of (1) an owners licensee a riverboat
29    (1) that relocates pursuant to Section 11.2, or (2) an owners
30    license  conducting riverboat gambling operations pursuant to
31    for which an owners license that is  initially  issued  after
32    June  25,  the effective date of this amendatory Act of 1999,
33    or (3) the first riverboat gambling operations conducted by a
34    licensed manager on behalf of the State  under  Section  7.2,
 
                            -24-     LRB093 02991 LRD 17339 a
 1    whichever  comes  first,  shall be paid from the State Gaming
 2    Fund into the Horse Racing Equity Fund.
 3        (c-10)  Each year the General Assembly shall  appropriate
 4    from  the  General  Revenue  Fund to the Education Assistance
 5    Fund an amount equal to the amount paid into the Horse Racing
 6    Equity  Fund  pursuant  to  subsection  (c-5)  in  the  prior
 7    calendar year.
 8        (c-15)  After the  payments  required  under  subsections
 9    (b),  (c), and (c-5) have been made, an amount equal to 2% of
10    the adjusted gross receipts  of  (1)  an  owners  licensee  a
11    riverboat (1) that relocates pursuant to Section 11.2, or (2)
12    an  owners  licensee conducting riverboat gambling operations
13    pursuant to for which an owners  license  that  is  initially
14    issued  after  June 25, the effective date of this amendatory
15    Act of 1999, or (3) the first riverboat  gambling  operations
16    conducted  by a licensed manager on behalf of the State under
17    Section 7.2, whichever comes first, shall be paid, subject to
18    appropriation from  the  General  Assembly,  from  the  State
19    Gaming  Fund  to  each  home rule county with a population of
20    over 3,000,000 inhabitants for the purpose of  enhancing  the
21    county's criminal justice system.
22        (c-20)  Each  year the General Assembly shall appropriate
23    from the General Revenue Fund  to  the  Education  Assistance
24    Fund  an  amount  equal  to the amount paid to each home rule
25    county  with  a  population  of  over  3,000,000  inhabitants
26    pursuant to subsection (c-15) in the prior calendar year.
27        (c-25)  After the  payments  required  under  subsections
28    (b), (c), (c-5) and (c-15) have been made, an amount equal to
29    2%  of the adjusted gross receipts of (1) an owners license a
30    riverboat (1) that relocates pursuant to Section 11.2, or (2)
31    an owners license conducting  riverboat  gambling  operations
32    pursuant  to  for  which  an owners license that is initially
33    issued after June 25, the effective date of  this  amendatory
34    Act  of  1999, or (3) the first riverboat gambling operations
 
                            -25-     LRB093 02991 LRD 17339 a
 1    conducted by a licensed manager on behalf of the State  under
 2    Section  7.2,  whichever  comes first, shall be paid from the
 3    State Gaming Fund to Chicago State University into the  State
 4    Universities Athletic Capital Improvement Fund.
 5        (d)  From  time  to  time,  the  Board shall transfer the
 6    remainder of  the  funds  generated  by  this  Act  into  the
 7    Education  Assistance Fund, created by Public Act 86-0018, of
 8    the State of Illinois.
 9        (e)  Nothing in this Act shall prohibit the unit of local
10    government designated as the home dock of the riverboat  from
11    entering into agreements with other units of local government
12    in  this State or in other states to share its portion of the
13    tax revenue.
14        (f)  To  the  extent   practicable,   the   Board   shall
15    administer  and  collect  the  wagering taxes imposed by this
16    Section  in  a  manner  consistent  with  the  provisions  of
17    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
18    6c, 8, 9, and 10 of the Retailers'  Occupation  Tax  Act  and
19    Section 3-7 of the Uniform Penalty and Interest Act.
20    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)

21        (230 ILCS 10/15) (from Ch. 120, par. 2415)
22        Sec.  15.   Audit of Licensee Operations.  Within 90 days
23    after the end of  each  quarter  of  each  fiscal  year,  the
24    licensed  owner  or  manager  shall  transmit to the Board an
25    audit of the financial transactions   and  condition  of  the
26    licensee's  total  operations.  All audits shall be conducted
27    by certified public accountants selected by the Board.   Each
28    certified  public  accountant must be registered in the State
29    of Illinois under the Illinois  Public  Accounting  Act.  The
30    compensation  for  each  certified public accountant shall be
31    paid directly  by  the  licensed  owner  or  manager  to  the
32    certified public accountant.
33    (Source: P.A. 86-1029; 86-1389.)
 
                            -26-     LRB093 02991 LRD 17339 a
 1        (230 ILCS 10/23) (from Ch. 120, par. 2423)
 2        Sec.  23.   The  State  Gaming  Fund.   On  or  after the
 3    effective date of  this  Act,  all  of  the  fees  and  taxes
 4    collected  pursuant  to  subsections  of  this  Act  shall be
 5    deposited into the State Gaming Fund, a special fund  in  the
 6    State  Treasury,  which is hereby created. The adjusted gross
 7    receipts of any riverboat gambling operations conducted by  a
 8    licensed  manager  on behalf of the State remaining after the
 9    payment of the fees and  expenses  of  the  licensed  manager
10    shall  be  deposited  into  the State Gaming Fund.  Fines and
11    penalties collected pursuant to this Act shall  be  deposited
12    into  the  Education  Assistance  Fund, created by Public Act
13    86-0018, of the State of Illinois.
14    (Source: P.A. 86-1029.)

15        Section 97.  Severability.  In  accordance  with  Section
16    1.31  of  the Statute on Statutes, the provisions of this Act
17    are severable.  If any provision of this amendatory  Act,  or
18    the  application  of  any provision of this amendatory Act to
19    any person or circumstance, is held invalid, such  invalidity
20    shall  not  affect  other  provisions or applications of this
21    amendatory Act which can be given effect without the  invalid
22    provision   or  application,  and  the  application  of  this
23    amendatory Act to persons or circumstances other  than  those
24    as to which it is held invalid shall not be affected thereby.

25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.".