95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2899

 

Introduced 2/15/2008, by Sen. Jeffrey M. Schoenberg

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 10/5   from Ch. 120, par. 2405

    Amends the Riverboat Gambling Act. Makes a technical change in a Section concerning the Illinois Gaming Board.


LRB095 19819 AMC 46208 b

 

 

A BILL FOR

 

SB2899 LRB095 19819 AMC 46208 b

1     AN ACT concerning gaming.
 
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 Section 5 as follows:
 
6     (230 ILCS 10/5)  (from Ch. 120, par. 2405)
7     Sec. 5. Gaming Board.
8     (a) (1) There is hereby established within the the
9 Department of Revenue an Illinois Gaming Board which shall have
10 the powers and duties specified in this Act, and all other
11 powers necessary and proper to fully and effectively execute
12 this Act for the purpose of administering, regulating, and
13 enforcing the system of riverboat gambling established by this
14 Act. Its jurisdiction shall extend under this Act to every
15 person, association, corporation, partnership and trust
16 involved in riverboat gambling operations in the State of
17 Illinois.
18     (2) The Board shall consist of 5 members to be appointed by
19 the Governor with the advice and consent of the Senate, one of
20 whom shall be designated by the Governor to be chairman. Each
21 member shall have a reasonable knowledge of the practice,
22 procedure and principles of gambling operations. Each member
23 shall either be a resident of Illinois or shall certify that he

 

 

SB2899 - 2 - LRB095 19819 AMC 46208 b

1 will become a resident of Illinois before taking office. At
2 least one member shall be experienced in law enforcement and
3 criminal investigation, at least one member shall be a
4 certified public accountant experienced in accounting and
5 auditing, and at least one member shall be a lawyer licensed to
6 practice law in Illinois.
7     (3) The terms of office of the Board members shall be 3
8 years, except that the terms of office of the initial Board
9 members appointed pursuant to this Act will commence from the
10 effective date of this Act and run as follows: one for a term
11 ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
12 a term ending July 1, 1993. Upon the expiration of the
13 foregoing terms, the successors of such members shall serve a
14 term for 3 years and until their successors are appointed and
15 qualified for like terms. Vacancies in the Board shall be
16 filled for the unexpired term in like manner as original
17 appointments. Each member of the Board shall be eligible for
18 reappointment at the discretion of the Governor with the advice
19 and consent of the Senate.
20     (4) Each member of the Board shall receive $300 for each
21 day the Board meets and for each day the member conducts any
22 hearing pursuant to this Act. Each member of the Board shall
23 also be reimbursed for all actual and necessary expenses and
24 disbursements incurred in the execution of official duties.
25     (5) No person shall be appointed a member of the Board or
26 continue to be a member of the Board who is, or whose spouse,

 

 

SB2899 - 3 - LRB095 19819 AMC 46208 b

1 child or parent is, a member of the board of directors of, or a
2 person financially interested in, any gambling operation
3 subject to the jurisdiction of this Board, or any race track,
4 race meeting, racing association or the operations thereof
5 subject to the jurisdiction of the Illinois Racing Board. No
6 Board member shall hold any other public office for which he
7 shall receive compensation other than necessary travel or other
8 incidental expenses. No person shall be a member of the Board
9 who is not of good moral character or who has been convicted
10 of, or is under indictment for, a felony under the laws of
11 Illinois or any other state, or the United States.
12     (6) Any member of the Board may be removed by the Governor
13 for neglect of duty, misfeasance, malfeasance, or nonfeasance
14 in office.
15     (7) Before entering upon the discharge of the duties of his
16 office, each member of the Board shall take an oath that he
17 will faithfully execute the duties of his office according to
18 the laws of the State and the rules and regulations adopted
19 therewith and shall give bond to the State of Illinois,
20 approved by the Governor, in the sum of $25,000. Every such
21 bond, when duly executed and approved, shall be recorded in the
22 office of the Secretary of State. Whenever the Governor
23 determines that the bond of any member of the Board has become
24 or is likely to become invalid or insufficient, he shall
25 require such member forthwith to renew his bond, which is to be
26 approved by the Governor. Any member of the Board who fails to

 

 

SB2899 - 4 - LRB095 19819 AMC 46208 b

1 take oath and give bond within 30 days from the date of his
2 appointment, or who fails to renew his bond within 30 days
3 after it is demanded by the Governor, shall be guilty of
4 neglect of duty and may be removed by the Governor. The cost of
5 any bond given by any member of the Board under this Section
6 shall be taken to be a part of the necessary expenses of the
7 Board.
8     (8) Upon the request of the Board, the Department shall
9 employ such personnel as may be necessary to carry out the
10 functions of the Board. No person shall be employed to serve
11 the Board who is, or whose spouse, parent or child is, an
12 official of, or has a financial interest in or financial
13 relation with, any operator engaged in gambling operations
14 within this State or any organization engaged in conducting
15 horse racing within this State. Any employee violating these
16 prohibitions shall be subject to termination of employment.
17     (9) An Administrator shall perform any and all duties that
18 the Board shall assign him. The salary of the Administrator
19 shall be determined by the Board and approved by the Director
20 of the Department and, in addition, he shall be reimbursed for
21 all actual and necessary expenses incurred by him in discharge
22 of his official duties. The Administrator shall keep records of
23 all proceedings of the Board and shall preserve all records,
24 books, documents and other papers belonging to the Board or
25 entrusted to its care. The Administrator shall devote his full
26 time to the duties of the office and shall not hold any other

 

 

SB2899 - 5 - LRB095 19819 AMC 46208 b

1 office or employment.
2     (b) The Board shall have general responsibility for the
3 implementation of this Act. Its duties include, without
4 limitation, the following:
5         (1) To decide promptly and in reasonable order all
6     license applications. Any party aggrieved by an action of
7     the Board denying, suspending, revoking, restricting or
8     refusing to renew a license may request a hearing before
9     the Board. A request for a hearing must be made to the
10     Board in writing within 5 days after service of notice of
11     the action of the Board. Notice of the action of the Board
12     shall be served either by personal delivery or by certified
13     mail, postage prepaid, to the aggrieved party. Notice
14     served by certified mail shall be deemed complete on the
15     business day following the date of such mailing. The Board
16     shall conduct all requested hearings promptly and in
17     reasonable order;
18         (2) To conduct all hearings pertaining to civil
19     violations of this Act or rules and regulations promulgated
20     hereunder;
21         (3) To promulgate such rules and regulations as in its
22     judgment may be necessary to protect or enhance the
23     credibility and integrity of gambling operations
24     authorized by this Act and the regulatory process
25     hereunder;
26         (4) To provide for the establishment and collection of

 

 

SB2899 - 6 - LRB095 19819 AMC 46208 b

1     all license and registration fees and taxes imposed by this
2     Act and the rules and regulations issued pursuant hereto.
3     All such fees and taxes shall be deposited into the State
4     Gaming Fund;
5         (5) To provide for the levy and collection of penalties
6     and fines for the violation of provisions of this Act and
7     the rules and regulations promulgated hereunder. All such
8     fines and penalties shall be deposited into the Education
9     Assistance Fund, created by Public Act 86-0018, of the
10     State of Illinois;
11         (6) To be present through its inspectors and agents any
12     time gambling operations are conducted on any riverboat for
13     the purpose of certifying the revenue thereof, receiving
14     complaints from the public, and conducting such other
15     investigations into the conduct of the gambling games and
16     the maintenance of the equipment as from time to time the
17     Board may deem necessary and proper;
18         (7) To review and rule upon any complaint by a licensee
19     regarding any investigative procedures of the State which
20     are unnecessarily disruptive of gambling operations. The
21     need to inspect and investigate shall be presumed at all
22     times. The disruption of a licensee's operations shall be
23     proved by clear and convincing evidence, and establish
24     that: (A) the procedures had no reasonable law enforcement
25     purposes, and (B) the procedures were so disruptive as to
26     unreasonably inhibit gambling operations;

 

 

SB2899 - 7 - LRB095 19819 AMC 46208 b

1         (8) To hold at least one meeting each quarter of the
2     fiscal year. In addition, special meetings may be called by
3     the Chairman or any 2 Board members upon 72 hours written
4     notice to each member. All Board meetings shall be subject
5     to the Open Meetings Act. Three members of the Board shall
6     constitute a quorum, and 3 votes shall be required for any
7     final determination by the Board. The Board shall keep a
8     complete and accurate record of all its meetings. A
9     majority of the members of the Board shall constitute a
10     quorum for the transaction of any business, for the
11     performance of any duty, or for the exercise of any power
12     which this Act requires the Board members to transact,
13     perform or exercise en banc, except that, upon order of the
14     Board, one of the Board members or an administrative law
15     judge designated by the Board may conduct any hearing
16     provided for under this Act or by Board rule and may
17     recommend findings and decisions to the Board. The Board
18     member or administrative law judge conducting such hearing
19     shall have all powers and rights granted to the Board in
20     this Act. The record made at the time of the hearing shall
21     be reviewed by the Board, or a majority thereof, and the
22     findings and decision of the majority of the Board shall
23     constitute the order of the Board in such case;
24         (9) To maintain records which are separate and distinct
25     from the records of any other State board or commission.
26     Such records shall be available for public inspection and

 

 

SB2899 - 8 - LRB095 19819 AMC 46208 b

1     shall accurately reflect all Board proceedings;
2         (10) To file a written annual report with the Governor
3     on or before March 1 each year and such additional reports
4     as the Governor may request. The annual report shall
5     include a statement of receipts and disbursements by the
6     Board, actions taken by the Board, and any additional
7     information and recommendations which the Board may deem
8     valuable or which the Governor may request;
9         (11) (Blank); and
10         (12) To assume responsibility for the administration
11     and enforcement of the Bingo License and Tax Act, the
12     Charitable Games Act, and the Pull Tabs and Jar Games Act
13     if such responsibility is delegated to it by the Director
14     of Revenue.
15     (c) The Board shall have jurisdiction over and shall
16 supervise all gambling operations governed by this Act. The
17 Board shall have all powers necessary and proper to fully and
18 effectively execute the provisions of this Act, including, but
19 not limited to, the following:
20         (1) To investigate applicants and determine the
21     eligibility of applicants for licenses and to select among
22     competing applicants the applicants which best serve the
23     interests of the citizens of Illinois.
24         (2) To have jurisdiction and supervision over all
25     riverboat gambling operations in this State and all persons
26     on riverboats where gambling operations are conducted.

 

 

SB2899 - 9 - LRB095 19819 AMC 46208 b

1         (3) To promulgate rules and regulations for the purpose
2     of administering the provisions of this Act and to
3     prescribe rules, regulations and conditions under which
4     all riverboat gambling in the State shall be conducted.
5     Such rules and regulations are to provide for the
6     prevention of practices detrimental to the public interest
7     and for the best interests of riverboat gambling, including
8     rules and regulations regarding the inspection of such
9     riverboats and the review of any permits or licenses
10     necessary to operate a riverboat under any laws or
11     regulations applicable to riverboats, and to impose
12     penalties for violations thereof.
13         (4) To enter the office, riverboats, facilities, or
14     other places of business of a licensee, where evidence of
15     the compliance or noncompliance with the provisions of this
16     Act is likely to be found.
17         (5) To investigate alleged violations of this Act or
18     the rules of the Board and to take appropriate disciplinary
19     action against a licensee or a holder of an occupational
20     license for a violation, or institute appropriate legal
21     action for enforcement, or both.
22         (6) To adopt standards for the licensing of all persons
23     under this Act, as well as for electronic or mechanical
24     gambling games, and to establish fees for such licenses.
25         (7) To adopt appropriate standards for all riverboats
26     and facilities.

 

 

SB2899 - 10 - LRB095 19819 AMC 46208 b

1         (8) To require that the records, including financial or
2     other statements of any licensee under this Act, shall be
3     kept in such manner as prescribed by the Board and that any
4     such licensee involved in the ownership or management of
5     gambling operations submit to the Board an annual balance
6     sheet and profit and loss statement, list of the
7     stockholders or other persons having a 1% or greater
8     beneficial interest in the gambling activities of each
9     licensee, and any other information the Board deems
10     necessary in order to effectively administer this Act and
11     all rules, regulations, orders and final decisions
12     promulgated under this Act.
13         (9) To conduct hearings, issue subpoenas for the
14     attendance of witnesses and subpoenas duces tecum for the
15     production of books, records and other pertinent documents
16     in accordance with the Illinois Administrative Procedure
17     Act, and to administer oaths and affirmations to the
18     witnesses, when, in the judgment of the Board, it is
19     necessary to administer or enforce this Act or the Board
20     rules.
21         (10) To prescribe a form to be used by any licensee
22     involved in the ownership or management of gambling
23     operations as an application for employment for their
24     employees.
25         (11) To revoke or suspend licenses, as the Board may
26     see fit and in compliance with applicable laws of the State

 

 

SB2899 - 11 - LRB095 19819 AMC 46208 b

1     regarding administrative procedures, and to review
2     applications for the renewal of licenses. The Board may
3     suspend an owners license, without notice or hearing upon a
4     determination that the safety or health of patrons or
5     employees is jeopardized by continuing a riverboat's
6     operation. The suspension may remain in effect until the
7     Board determines that the cause for suspension has been
8     abated. The Board may revoke the owners license upon a
9     determination that the owner has not made satisfactory
10     progress toward abating the hazard.
11         (12) To eject or exclude or authorize the ejection or
12     exclusion of, any person from riverboat gambling
13     facilities where such person is in violation of this Act,
14     rules and regulations thereunder, or final orders of the
15     Board, or where such person's conduct or reputation is such
16     that his presence within the riverboat gambling facilities
17     may, in the opinion of the Board, call into question the
18     honesty and integrity of the gambling operations or
19     interfere with orderly conduct thereof; provided that the
20     propriety of such ejection or exclusion is subject to
21     subsequent hearing by the Board.
22         (13) To require all licensees of gambling operations to
23     utilize a cashless wagering system whereby all players'
24     money is converted to tokens, electronic cards, or chips
25     which shall be used only for wagering in the gambling
26     establishment.

 

 

SB2899 - 12 - LRB095 19819 AMC 46208 b

1         (14) (Blank).
2         (15) To suspend, revoke or restrict licenses, to
3     require the removal of a licensee or an employee of a
4     licensee for a violation of this Act or a Board rule or for
5     engaging in a fraudulent practice, and to impose civil
6     penalties of up to $5,000 against individuals and up to
7     $10,000 or an amount equal to the daily gross receipts,
8     whichever is larger, against licensees for each violation
9     of any provision of the Act, any rules adopted by the
10     Board, any order of the Board or any other action which, in
11     the Board's discretion, is a detriment or impediment to
12     riverboat gambling operations.
13         (16) To hire employees to gather information, conduct
14     investigations and carry out any other tasks contemplated
15     under this Act.
16         (17) To establish minimum levels of insurance to be
17     maintained by licensees.
18         (18) To authorize a licensee to sell or serve alcoholic
19     liquors, wine or beer as defined in the Liquor Control Act
20     of 1934 on board a riverboat and to have exclusive
21     authority to establish the hours for sale and consumption
22     of alcoholic liquor on board a riverboat, notwithstanding
23     any provision of the Liquor Control Act of 1934 or any
24     local ordinance, and regardless of whether the riverboat
25     makes excursions. The establishment of the hours for sale
26     and consumption of alcoholic liquor on board a riverboat is

 

 

SB2899 - 13 - LRB095 19819 AMC 46208 b

1     an exclusive power and function of the State. A home rule
2     unit may not establish the hours for sale and consumption
3     of alcoholic liquor on board a riverboat. This amendatory
4     Act of 1991 is a denial and limitation of home rule powers
5     and functions under subsection (h) of Section 6 of Article
6     VII of the Illinois Constitution.
7         (19) After consultation with the U.S. Army Corps of
8     Engineers, to establish binding emergency orders upon the
9     concurrence of a majority of the members of the Board
10     regarding the navigability of water, relative to
11     excursions, in the event of extreme weather conditions,
12     acts of God or other extreme circumstances.
13         (20) To delegate the execution of any of its powers
14     under this Act for the purpose of administering and
15     enforcing this Act and its rules and regulations hereunder.
16         (21) To take any other action as may be reasonable or
17     appropriate to enforce this Act and rules and regulations
18     hereunder.
19     (d) The Board may seek and shall receive the cooperation of
20 the Department of State Police in conducting background
21 investigations of applicants and in fulfilling its
22 responsibilities under this Section. Costs incurred by the
23 Department of State Police as a result of such cooperation
24 shall be paid by the Board in conformance with the requirements
25 of Section 2605-400 of the Department of State Police Law (20
26 ILCS 2605/2605-400).

 

 

SB2899 - 14 - LRB095 19819 AMC 46208 b

1     (e) The Board must authorize to each investigator and to
2 any other employee of the Board exercising the powers of a
3 peace officer a distinct badge that, on its face, (i) clearly
4 states that the badge is authorized by the Board and (ii)
5 contains a unique identifying number. No other badge shall be
6 authorized by the Board.
7 (Source: P.A. 91-40, eff. 1-1-00; 91-239, eff. 1-1-00; 91-883,
8 eff. 1-1-01.)