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1 | AN ACT concerning gaming.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Riverboat Gambling Act is amended by | ||||||||||||||||||||||||||
5 | changing Sections 7 and 7.5 as follows:
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6 | (230 ILCS 10/7) (from Ch. 120, par. 2407)
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7 | Sec. 7. Owners Licenses.
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8 | (a) The Board shall issue owners licenses to persons, firms | ||||||||||||||||||||||||||
9 | or
corporations which apply for such licenses upon payment to | ||||||||||||||||||||||||||
10 | the Board of the
non-refundable license fee set by the Board, | ||||||||||||||||||||||||||
11 | upon payment of a $25,000
license fee for the first year of | ||||||||||||||||||||||||||
12 | operation and a $5,000 license fee for
each succeeding year and | ||||||||||||||||||||||||||
13 | upon a determination by the Board that the
applicant is | ||||||||||||||||||||||||||
14 | eligible for an owners license pursuant to this Act and the
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15 | rules of the Board. For a period of 2 years beginning on the | ||||||||||||||||||||||||||
16 | effective date of this amendatory Act of the 94th General | ||||||||||||||||||||||||||
17 | Assembly, as a condition of licensure and as an alternative | ||||||||||||||||||||||||||
18 | source of payment for those funds payable under subsection | ||||||||||||||||||||||||||
19 | (c-5) of Section 13 of the Riverboat Gambling Act, any owners | ||||||||||||||||||||||||||
20 | licensee that holds or receives its owners license on or after | ||||||||||||||||||||||||||
21 | the effective date of this amendatory Act of the 94th General | ||||||||||||||||||||||||||
22 | Assembly, other than an owners licensee operating a riverboat | ||||||||||||||||||||||||||
23 | with adjusted gross receipts in calendar year 2004 of less than |
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1 | $200,000,000, must pay into the Horse Racing Equity Trust Fund, | ||||||
2 | in addition to any other payments required under this Act, an | ||||||
3 | amount equal to 3% of the adjusted gross receipts received by | ||||||
4 | the owners licensee. The payments required under this Section | ||||||
5 | shall be made by the owners licensee to the State Treasurer no | ||||||
6 | later than 3:00 o'clock p.m. of the day after the day when the | ||||||
7 | adjusted gross receipts were received by the owners licensee. A | ||||||
8 | person, firm or corporation is ineligible to receive
an owners | ||||||
9 | license if:
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10 | (1) the person has been convicted of a felony under the | ||||||
11 | laws of this
State, any other state, or the United States;
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12 | (2) the person has been convicted of any violation of | ||||||
13 | Article 28 of the
Criminal Code of 1961, or substantially | ||||||
14 | similar laws of any other jurisdiction;
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15 | (3) the person has submitted an application for a | ||||||
16 | license under this
Act which contains false information;
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17 | (4) the person is
a member of the Board;
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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;
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21 | (6) the firm or corporation employs a person defined in | ||||||
22 | (1), (2), (3) or
(4) who participates in the management or | ||||||
23 | operation of gambling operations
authorized under this | ||||||
24 | Act;
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25 | (7) (blank); or
| ||||||
26 | (8) a license of the person, firm or corporation issued |
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1 | under
this Act, or a license to own or operate gambling | ||||||
2 | facilities
in any other jurisdiction, has been revoked.
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3 | (b) In determining whether to grant an owners license to an | ||||||
4 | applicant, the
Board shall consider:
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5 | (1) the character, reputation, experience and | ||||||
6 | financial integrity of the
applicants and of any other or | ||||||
7 | separate person that either:
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8 | (A) controls, directly or indirectly, such | ||||||
9 | applicant, or
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10 | (B) is controlled, directly or indirectly, by such | ||||||
11 | applicant or by a
person which controls, directly or | ||||||
12 | indirectly, such applicant;
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13 | (2) the facilities or proposed facilities for the | ||||||
14 | conduct of riverboat
gambling;
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15 | (3) the highest prospective total revenue to be derived | ||||||
16 | by the State
from the conduct of riverboat gambling;
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17 | (4) the extent to which the ownership of the applicant | ||||||
18 | reflects the
diversity of the State by including minority | ||||||
19 | persons and females
and the good faith affirmative action | ||||||
20 | plan of
each applicant to recruit, train and upgrade | ||||||
21 | minority persons and females in all employment | ||||||
22 | classifications;
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23 | (5) the financial ability of the applicant to purchase | ||||||
24 | and maintain
adequate liability and casualty insurance;
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25 | (6) whether the applicant has adequate capitalization | ||||||
26 | to provide and
maintain, for the duration of a license, a |
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1 | riverboat;
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2 | (7) the extent to which the applicant exceeds or meets | ||||||
3 | other standards
for the issuance of an owners license which | ||||||
4 | the Board may adopt by rule;
and
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5 | (8) The amount of the applicant's license bid.
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6 | (c) Each owners license shall specify the place where | ||||||
7 | riverboats shall
operate and dock.
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8 | (d) Each applicant shall submit with his application, on | ||||||
9 | forms
provided by the Board, 2 sets of his fingerprints.
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10 | (e) The Board may issue up to 10 licenses authorizing the | ||||||
11 | holders of such
licenses to own riverboats. In the application | ||||||
12 | for an owners license, the
applicant shall state the dock at | ||||||
13 | which the riverboat is based and the water
on which the | ||||||
14 | riverboat will be located. The Board shall issue 5 licenses to
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15 | become effective not earlier than January 1, 1991. Three of | ||||||
16 | such licenses
shall authorize riverboat gambling on the | ||||||
17 | Mississippi River, or, with approval
by the municipality in | ||||||
18 | which the
riverboat was docked on August 7, 2003 and with Board | ||||||
19 | approval, be authorized to relocate to a new location,
in a
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20 | municipality that (1) borders on the Mississippi River or is | ||||||
21 | within 5
miles of the city limits of a municipality that | ||||||
22 | borders on the Mississippi
River and (2), on August 7, 2003, | ||||||
23 | had a riverboat conducting riverboat gambling operations | ||||||
24 | pursuant to
a license issued under this Act; one of which shall | ||||||
25 | authorize riverboat
gambling from a home dock in the city of | ||||||
26 | East St. Louis. One other license
shall
authorize riverboat |
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1 | gambling on
the Illinois River south of Marshall County. The | ||||||
2 | Board shall issue one
additional license to become effective | ||||||
3 | not earlier than March 1, 1992, which
shall authorize riverboat | ||||||
4 | gambling on the Des Plaines River in Will County.
The Board may | ||||||
5 | issue 4 additional licenses to become effective not
earlier | ||||||
6 | than
March 1, 1992. In determining the water upon which | ||||||
7 | riverboats will operate,
the Board shall consider the economic | ||||||
8 | benefit which riverboat gambling confers
on the State, and | ||||||
9 | shall seek to assure that all regions of the State share
in the | ||||||
10 | economic benefits of riverboat gambling.
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11 | In granting all licenses, the Board may give favorable | ||||||
12 | consideration to
economically depressed areas of the State, to | ||||||
13 | applicants presenting plans
which provide for significant | ||||||
14 | economic development over a large geographic
area, and to | ||||||
15 | applicants who currently operate non-gambling riverboats in
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16 | Illinois.
The Board shall review all applications for owners | ||||||
17 | licenses,
and shall inform each applicant of the Board's | ||||||
18 | decision.
The Board may grant an owners license to an
applicant | ||||||
19 | that has not submitted the highest license bid, but if it does | ||||||
20 | not
select the highest bidder, the Board shall issue a written | ||||||
21 | decision explaining
why another
applicant was selected and | ||||||
22 | identifying the factors set forth in this Section
that favored | ||||||
23 | the winning bidder.
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24 | In addition to any other revocation powers granted to the | ||||||
25 | Board under this
Act,
the Board may revoke the owners license | ||||||
26 | of a licensee which fails
to begin conducting gambling within |
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1 | 15 months
of receipt of the
Board's approval of the application | ||||||
2 | if the Board determines that license
revocation is in the best | ||||||
3 | interests of the State.
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4 | (e-5) Any license authorizing the conduct of gambling under | ||||||
5 | this Act issued by the Board after the effective date of this | ||||||
6 | amendatory Act of the 95th General Assembly must be issued | ||||||
7 | pursuant to the competitive bidding process contained in | ||||||
8 | Section 7.5 of this Act.
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9 | (f) The first 10 owners licenses issued under this Act | ||||||
10 | shall permit the
holder to own up to 2 riverboats and equipment | ||||||
11 | thereon
for a period of 3 years after the effective date of the | ||||||
12 | license. Holders of
the first 10 owners licenses must pay the | ||||||
13 | annual license fee for each of
the 3
years during which they | ||||||
14 | are authorized to own riverboats.
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15 | (g) Upon the termination, expiration, or revocation of each | ||||||
16 | of the first
10 licenses, which shall be issued for a 3 year | ||||||
17 | period, all licenses are
renewable annually upon payment of the | ||||||
18 | fee and a determination by the Board
that the licensee | ||||||
19 | continues to meet all of the requirements of this Act and the
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20 | Board's rules.
However, for licenses renewed on or after May 1, | ||||||
21 | 1998, renewal shall be
for a period of 4 years, unless the | ||||||
22 | Board sets a shorter period.
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23 | (h) An owners license shall entitle the licensee to own up | ||||||
24 | to 2
riverboats. A licensee shall limit the number of gambling | ||||||
25 | participants to
1,200 for any such owners license.
A licensee | ||||||
26 | may operate both of its riverboats concurrently, provided that |
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1 | the
total number of gambling participants on both riverboats | ||||||
2 | does not exceed
1,200. Riverboats licensed to operate on the
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3 | Mississippi River and the Illinois River south of Marshall | ||||||
4 | County shall
have an authorized capacity of at least 500 | ||||||
5 | persons. Any other riverboat
licensed under this Act shall have | ||||||
6 | an authorized capacity of at least 400
persons.
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7 | (i) A licensed owner is authorized to apply to the Board | ||||||
8 | for and, if
approved therefor, to receive all licenses from the | ||||||
9 | Board necessary for the
operation of a riverboat, including a | ||||||
10 | liquor license, a license
to prepare and serve food for human | ||||||
11 | consumption, and other necessary
licenses. All use, occupation | ||||||
12 | and excise taxes which apply to the sale of
food and beverages | ||||||
13 | in this State and all taxes imposed on the sale or use
of | ||||||
14 | tangible personal property apply to such sales aboard the | ||||||
15 | riverboat.
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16 | (j) The Board may issue or re-issue a license authorizing a | ||||||
17 | riverboat to
dock
in a municipality or approve a relocation | ||||||
18 | under Section 11.2 only if, prior
to the issuance or | ||||||
19 | re-issuance of
the license or approval, the governing body of | ||||||
20 | the municipality in which
the riverboat will dock has by a | ||||||
21 | majority vote approved the docking of
riverboats in the | ||||||
22 | municipality. The Board may issue or re-issue a license
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23 | authorizing a
riverboat to dock in areas of a county outside | ||||||
24 | any municipality or approve a
relocation under Section 11.2 | ||||||
25 | only if, prior to the issuance or re-issuance
of the license
or | ||||||
26 | approval, the
governing body of the county has by a majority |
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1 | vote approved of the docking of
riverboats within such areas.
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2 | (Source: P.A. 93-28, eff. 6-20-03; 93-453, eff. 8-7-03; 94-667, | ||||||
3 | eff. 8-23-05; 94-804, eff. 5-26-06.)
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4 | (230 ILCS 10/7.5)
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5 | Sec. 7.5. Competitive Bidding. When the Board (i) re-issues
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6 | determines that it will re-issue an owners license pursuant to
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7 | an
open and competitive bidding process, as set forth in | ||||||
8 | Section 7.1, (ii) issues
or that it
will issue a managers | ||||||
9 | license pursuant to an open and competitive bidding
process, as | ||||||
10 | set forth in Section 7.4, or (iii) issues a license authorizing | ||||||
11 | the conduct of gambling under this Act after the effective date | ||||||
12 | of this amendatory Act of the 95th General Assembly pursuant to
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13 | an
open and competitive bidding process, as provided in | ||||||
14 | subsection (e-5) of Section 7, the open and competitive bidding | ||||||
15 | process
shall adhere to the following procedures:
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16 | (1) The Board shall make applications for owners and | ||||||
17 | managers
licenses available to the public and allow a | ||||||
18 | reasonable time for applicants to
submit applications to the | ||||||
19 | Board.
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20 | (2) During the filing period for owners or managers license | ||||||
21 | applications,
the
Board may retain the services of an | ||||||
22 | investment banking firm to assist the Board
in conducting the | ||||||
23 | open and competitive bidding process.
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24 | (3) After receiving all of the bid proposals, the Board | ||||||
25 | shall open all of
the
proposals in a public forum and disclose |
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1 | the prospective owners or managers
names, venture partners, if | ||||||
2 | any, and, in the case of applicants for owners
licenses, the | ||||||
3 | locations of the proposed development sites.
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4 | (4) The Board shall summarize the terms of the proposals | ||||||
5 | and may make this
summary available to the public.
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6 | (5) The Board shall evaluate the proposals within a | ||||||
7 | reasonable time and
select no
more than 3 final applicants to | ||||||
8 | make presentations of their
proposals to the Board.
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9 | (6) The final applicants shall make their presentations to | ||||||
10 | the
Board on
the same day during an open session of the Board.
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11 | (7) As soon as practicable after the public presentations | ||||||
12 | by the final
applicants,
the Board, in its
discretion, may | ||||||
13 | conduct further negotiations among the 3 final applicants.
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14 | During such negotiations, each final applicant may increase its | ||||||
15 | license bid or
otherwise enhance its bid proposal. At the | ||||||
16 | conclusion of such
negotiations, the Board shall
select the | ||||||
17 | winning proposal. In the case of negotiations for
an owners | ||||||
18 | license, the Board may, at the conclusion of such negotiations,
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19 | make the determination allowed under Section 7.3(a).
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20 | (8) Upon selection of a winning bid, the Board shall | ||||||
21 | evaluate the winning
bid
within a reasonable period of time for | ||||||
22 | licensee suitability in accordance with
all applicable | ||||||
23 | statutory and regulatory criteria.
| ||||||
24 | (9) If the winning bidder is unable or otherwise fails to
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25 | consummate the transaction, (including if the Board determines | ||||||
26 | that the winning
bidder does not satisfy the suitability |
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1 | requirements), the Board may, on the
same criteria, select from | ||||||
2 | the remaining bidders or make the determination
allowed under | ||||||
3 | Section 7.3(a).
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4 | (Source: P.A. 93-28, eff. 6-20-03.)
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5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law.
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