HB5840 97TH GENERAL ASSEMBLY

LRB097 18731 DRJ 63966 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5840

Introduced 2/16/2012, by Rep. David Harris

SYNOPSIS AS INTRODUCED:

230 ILCS 5/27.2 new
230 ILCS 10/7	from Ch. 120, par. 2407
230 ILCS 10/13.05 new
750 ILCS 28/56 new

Amends the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, and the Income Withholding for Support Act. Provides that an organization licensee under the Illinois Horse Racing Act of 1975 shall withhold moneys from winning wagers and winnings from wagers placed upon races conducted by that organization licensee as provided in the Income Withholding for Support Act; imposes a similar duty on a licensed owner under the Riverboat Gambling Act with respect to winnings on games. Provides that if a licensed owner fails to withhold, from winnings otherwise payable to an individual, an amount representing delinquent child support as required under the Income Withholding for Support Act, the owner's license is not renewable upon its expiration, but the owner must instead apply for a new license. Provides that the Department of Healthcare and Family Services shall provide to each organization licensee under the Illinois Horse Racing Act of 1975 and each licensed owner under the Riverboat Gambling Act information concerning all individuals who are identified in the State Case Registry of child support orders and who have been determined to be delinquent in child support. Provides for: the obligations of an organization licensee or licensed owner; notice to the obligor; priority of claims; administrative appeals; enforcement; and immunity.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Horse Racing Act of 1975 is amended by adding Section 27.2 as follows:

(230 ILCS 5/27.2 new)

Sec. 27.2. Withholding for support from winning wagers or winnings from wagers. An organization licensee shall withhold moneys from winning wagers and winnings from wagers placed upon races conducted by that organization licensee as provided in Section 56 of the Income Withholding for Support Act.

Section 10. The Riverboat Gambling Act is amended by changing Section 7 and by adding Section 13.05 as follows:

(230 ILCS 10/7) (from Ch. 120, par. 2407)

Sec. 7. Owners Licenses.

(a) The Board shall issue owners licenses to persons, firms or corporations which apply for such licenses upon payment to the Board of the non-refundable license fee set by the Board, upon payment of a $25,000 license fee for the first year of operation and a $5,000 license fee for each succeeding year and upon a determination by the Board that the applicant is eligible for an owners license pursuant to this Act and the rules of the Board. From the effective date of this amendatory Act of the 95th General Assembly until (i) 3 years after the effective date of this amendatory Act of the 95th General Assembly, (ii) the date any organization licensee begins to operate a slot machine or video game of chance under the Illinois Horse Racing Act of 1975 or this Act, (iii) the date that payments begin under subsection (c-5) of Section 13 of the Act, or (iv) the wagering tax imposed under Section 13 of this Act is increased by law to reflect a tax rate that is at least as stringent or more stringent than the tax rate contained in subsection (a-3) of Section 13, whichever occurs first, as a condition of licensure and as an alternative source of payment for those funds payable under subsection (c-5) of Section 13 of the Riverboat Gambling Act, any owners licensee that holds or receives its owners license on or after the effective date of this amendatory Act of the 94th General Assembly, other than an owners licensee operating a riverboat with adjusted gross receipts in calendar year 2004 of less than $200,000,000, must pay into the Horse Racing Equity Trust Fund, in addition to any other payments required under this Act, an amount equal to 3% of the adjusted gross receipts received by the owners licensee. The payments required under this Section shall be made by the owners licensee to the State Treasurer no later than 3:00 o'clock p.m. of the day after the day when the adjusted gross receipts were received by the owners licensee. A person, firm or corporation is ineligible to receive an owners license if:

(1) the person has been convicted of a felony under the laws of this State, any other state, or the United States;

(2) the person has been convicted of any violation of Article 28 of the Criminal Code of 1961, or substantially similar laws of any other jurisdiction;

(3) the person has submitted an application for a license under this Act which contains false information;

(4) the person is a member of the Board;

(5) a person defined in (1), (2), (3) or (4) is an officer, director or managerial employee of the firm or corporation;

(6) the firm or corporation employs a person defined in (1), (2), (3) or (4) who participates in the management or operation of gambling operations authorized under this Act;

(7) (blank); or

(8) a license of the person, firm or corporation issued under this Act, or a license to own or operate gambling facilities in any other jurisdiction, has been revoked.

The Board is expressly prohibited from making changes to the requirement that licensees make payment into the Horse Racing Equity Trust Fund without the express authority of the Illinois General Assembly and making any other rule to implement or interpret this amendatory Act of the 95th General Assembly. For the purposes of this paragraph, "rules" is given the meaning given to that term in Section 1-70 of the Illinois Administrative Procedure Act.

(b) In determining whether to grant an owners license to an applicant, the Board shall consider:

(1) the character, reputation, experience and financial integrity of the applicants and of any other or separate person that either:

(A) controls, directly or indirectly, such applicant, or

(B) is controlled, directly or indirectly, by such applicant or by a person which controls, directly or indirectly, such applicant;

(2) the facilities or proposed facilities for the conduct of riverboat gambling;

(3) the highest prospective total revenue to be derived by the State from the conduct of riverboat gambling;

(4) the extent to which the ownership of the applicant reflects the diversity of the State by including minority persons, females, and persons with a disability and the good faith affirmative action plan of each applicant to recruit, train and upgrade minority persons, females, and persons with a disability in all employment classifications;

(5) the financial ability of the applicant to purchase and maintain adequate liability and casualty insurance;

(6) whether the applicant has adequate capitalization to provide and maintain, for the duration of a license, a riverboat;

(7) the extent to which the applicant exceeds or meets other standards for the issuance of an owners license which the Board may adopt by rule; and

(8) The amount of the applicant's license bid.

(c) Each owners license shall specify the place where riverboats shall operate and dock.

(d) Each applicant shall submit with his application, on forms provided by the Board, 2 sets of his fingerprints.

(e) The Board may issue up to 10 licenses authorizing the holders of such licenses to own riverboats. In the application for an owners license, the applicant shall state the dock at which the riverboat is based and the water on which the riverboat will be located. The Board shall issue 5 licenses to become effective not earlier than January 1, 1991. Three of such licenses shall authorize riverboat gambling on the Mississippi River, or, with approval by the municipality in which the riverboat was docked on August 7, 2003 and with Board approval, be authorized to relocate to a new location, in a municipality that (1) borders on the Mississippi River or is within 5 miles of the city limits of a municipality that borders on the Mississippi River and (2), on August 7, 2003, had a riverboat conducting riverboat gambling operations pursuant to a license issued under this Act; one of which shall authorize riverboat gambling from a home dock in the city of East St. Louis. One other license shall authorize riverboat gambling on the Illinois River south of Marshall County. The Board shall issue one additional license to become effective not earlier than March 1, 1992, which shall authorize riverboat gambling on the Des Plaines River in Will County. The Board may issue 4 additional licenses to become effective not earlier than March 1, 1992. In determining the water upon which riverboats will operate, the Board shall consider the economic benefit which riverboat gambling confers on the State, and shall seek to assure that all regions of the State share in the economic benefits of riverboat gambling.

In granting all licenses, the Board may give favorable consideration to economically depressed areas of the State, to applicants presenting plans which provide for significant economic development over a large geographic area, and to applicants who currently operate non-gambling riverboats in Illinois. The Board shall review all applications for owners licenses, and shall inform each applicant of the Board's decision. The Board may grant an owners license to an applicant that has not submitted the highest license bid, but if it does not select the highest bidder, the Board shall issue a written decision explaining why another applicant was selected and identifying the factors set forth in this Section that favored the winning bidder.

In addition to any other revocation powers granted to the Board under this Act, the Board may revoke the owners license of a licensee which fails to begin conducting gambling within 15 months of receipt of the Board's approval of the application if the Board determines that license revocation is in the best interests of the State.

(f) The first 10 owners licenses issued under this Act shall permit the holder to own up to 2 riverboats and equipment thereon for a period of 3 years after the effective date of the license. Holders of the first 10 owners licenses must pay the annual license fee for each of the 3 years during which they are authorized to own riverboats.

(g) Except as provided in Section 13.05, upon Upon the termination, expiration, or revocation of each of the first 10 licenses, which shall be issued for a 3 year period, all licenses are renewable annually upon payment of the fee and a determination by the Board that the licensee continues to meet all of the requirements of this Act and the Board's rules. However, for licenses renewed on or after May 1, 1998, renewal shall be for a period of 4 years, unless the Board sets a shorter period.

(h) An owners license shall entitle the licensee to own up to 2 riverboats. A licensee shall limit the number of gambling participants to 1,200 for any such owners license. A licensee may operate both of its riverboats concurrently, provided that the total number of gambling participants on both riverboats does not exceed 1,200. Riverboats licensed to operate on the Mississippi River and the Illinois River south of Marshall County shall have an authorized capacity of at least 500 persons. Any other riverboat licensed under this Act shall have an authorized capacity of at least 400 persons.

(i) A licensed owner is authorized to apply to the Board for and, if approved therefor, to receive all licenses from the Board necessary for the operation of a riverboat, including a liquor license, a license to prepare and serve food for human consumption, and other necessary licenses. All use, occupation and excise taxes which apply to the sale of food and beverages in this State and all taxes imposed on the sale or use of tangible personal property apply to such sales aboard the riverboat.

(j) The Board may issue or re-issue a license authorizing a riverboat to dock in a municipality or approve a relocation under Section 11.2 only if, prior to the issuance or re-issuance of the license or approval, the governing body of the municipality in which the riverboat will dock has by a majority vote approved the docking of riverboats in the municipality. The Board may issue or re-issue a license authorizing a riverboat to dock in areas of a county outside any municipality or approve a relocation under Section 11.2 only if, prior to the issuance or re-issuance of the license or approval, the governing body of the county has by a majority vote approved of the docking of riverboats within such areas.

(Source: P.A. 95-1008, eff. 12-15-08; 96-1392, eff. 1-1-11.)

(230 ILCS 10/13.05 new)

Sec. 13.05. Withholding for support from gaming winnings; penalty for failure.

(a) A licensed owner shall withhold moneys from winnings on games as provided in Section 56 of the Income Withholding for Support Act.

(b) If a licensed owner, or an employee, agent, or representative of a licensed owner acting on the licensed owner's behalf, fails to withhold, from winnings otherwise payable to an individual, an amount representing delinquent child support as required under Section 56 of the Income Withholding for Support Act, the owner's license is not renewable under subsection (g) of Section 7 upon its expiration, but the owner must instead apply for a new license as provided in Sections 6 and 7.

Section 15. The Income Withholding for Support Act is amended by adding Section 56 as follows:

(750 ILCS 28/56 new)

Sec. 56. Withholding from gaming winnings.

(a) Delinquency information. The Department of Healthcare and Family Services shall provide to each organization licensee under the Illinois Horse Racing Act of 1975 and each licensed owner under the Riverboat Gambling Act information concerning all individuals who are identified in the State Case Registry established pursuant to Section 10-27 of the Illinois Public Aid Code and who have been determined to be delinquent in the payment of child support. The information made available to a licensee under this Section about each individual obligor who has been determined to be delinquent in the payment of child support shall include appropriate information to identify the individual, the amount of the delinquency, and other information necessary for the organization licensee or licensed owner to remit payment of withheld amounts to the Department of Healthcare and Family Services as provided in this Section.

(b) Licensee's withholding obligations. If an organization licensee or an employee of an organization licensee under the Illinois Horse Racing Act of 1975, or a licensed owner or an employee of a licensed owner under the Riverboat Gambling Act, disburses winnings from wagers or a jackpot, exchange chips, tokens, or vouchers (hereinafter, collectively, "cash winnings") in the amount of $1,200 or more to a person identified pursuant to this Section in the State Case Registry as being delinquent in child support, the organization licensee, licensed owner, or employee:

(1) may deduct and retain an administrative fee in the amount of 5% of the amount of delinquent child support withheld under this Section or $250, whichever is less;

(2) shall withhold the amount of delinquent child support owed or so much of the delinquent child support owed that is collectible from the winnings;

(3) shall transmit to the Department of Healthcare and Family Services, within 7 business days after the date the cash winnings were paid or claimed: the amount withheld under this Section; identifying information, including the full name, address, and social security number of the obligor and the child support case identifier; the date and amount of the cash winnings and the amount withheld; and the name, location, and contact information of the licensee; and

(4) shall issue to the obligor a receipt, in a form prescribed by the Department of Healthcare and Family Services, stating the total amount withheld from the cash winnings for delinquent child support and the administrative fee.

(c) Notice to obligor. The Department of Healthcare and Family Services shall provide written notice to the obligor, at the address provided by the organization licensee or licensed owner, that the Department intends to offset the obligor's delinquent child support with some or all of his or her cash winnings. The Department shall hold the amount withheld from the obligor's cash winnings for 10 business days after sending the written notice to the obligor before applying the amount as payment toward the obligor's delinquent child support.

(d) The delinquent child support required to be withheld under this Section and the administrative fee authorized under this Section have priority over any secured or unsecured claim on cash winnings, except claims for federal or State taxes that are required to be withheld under federal or State law.

(e) Administrative appeal. The obligor may dispute the notice in subsection (c), as provided in Sections 10-12, 10-13, and 10-14 of the Illinois Public Aid Code and Sections 160.60 and 160.61 of Title 89 of the Illinois Administrative Code.

(f) Enforcement. The Department of Healthcare and Family Services and the Illinois Gaming Board shall provide for enforcement of this Section by rule.

(g) Immunity. An organization licensee or licensed owner is immune from civil or criminal liability for acting in conformity with this Section or the rules applicable to a licensee under this Section.