SB3925 97TH GENERAL ASSEMBLY

LRB097 21816 AMC 70438 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3925

Introduced 5/31/2012, by Sen. Terry Link

SYNOPSIS AS INTRODUCED:

See Index

If and only if Senate Bill 1849 of the 97th General Assembly becomes law as amended by House Amendments No. 2 and 3: amends the Chicago Casino Development Authority Act with respect to removal of members from the Board of the Authority, powers of the Authority, casino management contracts, local regulation, and contracts with the Authority or casino operator license; amends the Election Code to prohibit political contributions from licensees or applicants under various gaming statutes and from casino managers; amends the State Finance Act to provide for a transfer of moneys to the Fund for the Advancement of Education from the State Gaming Fund; amends the Illinois Municipal Code to provide that any municipality in Lake County that utilizes the police, fire, ambulance, or other emergency services of another unit of local government in providing services to a riverboat or casino shall provide adequate compensation for such services; amends the Illinois Horse Racing Act of 1975 to require the Illinois Racing Board to submit a report to the General Assembly on or before December 31, 2013 that examines the feasibility of conducting electronic gaming at a race track located in Rock Island County; and amends the Illinois Gambling Act to make changes in provisions concerning the Illinois Gaming Board application for and issuance of owners licenses, electronic gaming, and distribution of admission and wagering taxes. Effective immediately or on the effective date of Senate Bill 1849 of the 97th General Assembly, whichever is later.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning gaming.

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

Section 5. If and only if Senate Bill 1849 of the 97th General Assembly becomes law as amended by House Amendments No. 2 and 3, then the Chicago Casino Development Authority Act is amended by changing Sections 1-20, 1-31, 1-45, 1-70, and 1-112 as follows:

(09700SB1849ham002, Sec. 1-20)

Sec. 1-20. Terms of appointments; resignation and removal.

(a) The Mayor shall appoint 2 members of the Board for an initial term expiring July 1 of the year following approval by the Gaming Board, 2 members for an initial term expiring July 1 three years following approval by the Gaming Board, and one member for an initial term expiring July 1 five years following approval by the Gaming Board.

(b) All successors shall hold office for a term of 5 years from the first day of July of the year in which they are appointed, except in the case of an appointment to fill a vacancy. Each member, including the chairperson, shall hold office until the expiration of his or her term and until his or her successor is appointed and qualified. Nothing shall preclude a member from serving consecutive terms. Any member may resign from office, to take effect when a successor has been appointed and qualified. A vacancy in office shall occur in the case of a member's death or indictment, conviction, or plea of guilty to a felony. A vacancy shall be filled for the unexpired term by the Mayor with the approval of the Gaming Board.

(c) Members of the Board shall serve at the pleasure of the Mayor. The Mayor or the Gaming Board may remove any member of the Board upon a finding of incompetence, neglect of duty, or misfeasance or malfeasance in office or for a violation of this Act. The Gaming Board may remove any member of the Board for any violation of the Illinois Gambling Act or the rules and regulations of the Gaming Board or other just cause.

(Source: 09700SB1849ham002.)

(09700SB1849ham002, Sec. 1-31)

Sec. 1-31. General rights and powers of the Authority. In addition to the duties and powers set forth in this Act, the Authority shall have the following rights and powers:

(1) Adopt and alter an official seal.

(2) Establish and change its fiscal year.

(3) Sue and be sued, plead and be impleaded, all in its own name, and agree to binding arbitration of any dispute to which it is a party.

(4) Adopt, amend, and repeal bylaws, rules, and regulations consistent with the furtherance of the powers and duties provided for.

(5) Maintain its principal office within the City and such other offices as the Board may designate.

(6) Select locations in the City for a temporary and a permanent casino, subject to final approval by the Gaming Board, but in no event shall any location be in or at an airport.

(7) Utilize the Illinois Gaming Board to conduct Conduct background investigations of potential casino operator licensees, including their its principals or shareholders, all other persons subject to licensure under the Illinois Gambling Act, any third parties hired to develop the casino or its master plan, and Authority staff.

(8) Employ, either as regular employees or independent contractors, consultants, engineers, architects, accountants, attorneys, financial experts, construction experts and personnel, superintendents, managers and other professional personnel, and such other personnel as may be necessary in the judgment of the Board, and fix their compensation.

(9) Own, acquire, construct, equip, lease, operate, and maintain grounds, buildings, and facilities to carry out its corporate purposes and duties.

(10) Enter into, revoke, and modify contracts in accordance with the rules and procedures of the Gaming Board.

(11) Enter into a casino management contract subject to the prior final approval of the Gaming Board.

(12) Develop, or cause to be developed by a third party, a master plan for the design, planning, and development of a casino, subject to approval of the Gaming Board.

(13) Negotiate and enter into intergovernmental agreements with the State and its agencies, the City, and other units of local government, in furtherance of the powers and duties of the Board.

(14) Receive and disburse funds for its own corporate purposes or as otherwise specified in this Act.

(15) Borrow money from any source, public or private, for any corporate purpose, including, without limitation, working capital for its operations, reserve funds, or payment of interest, and to mortgage, pledge, or otherwise encumber the property or funds of the Authority and to contract with or engage the services of any person in connection with any financing, including financial institutions, issuers of letters of credit, or insurers and enter into reimbursement agreements with this person or entity which may be secured as if money were borrowed from the person or entity.

(16) Issue bonds as provided for under this Act.

(17) Receive and accept from any source, private or public, contributions, gifts, or grants of money or property to the Authority.

(18) Provide for the insurance of any property, operations, officers, members, agents, or employees of the Authority against any risk or hazard, to self-insure or participate in joint self-insurance pools or entities to insure against such risk or hazard, and to provide for the indemnification of its officers, members, employees, contractors, or agents against any and all risks.

(19) Exercise all the corporate powers granted Illinois corporations under the Business Corporation Act of 1983, except to the extent that powers are inconsistent with those of a body politic and corporate of the State.

(20) Do all things necessary or convenient to carry out the powers granted by this Act.

(Source: 09700SB1849ham002.)

(09700SB1849ham002, Sec. 1-45)

Sec. 1-45. Casino management contracts.

(a) Subject to the prior approval of the Gaming Board, the The Board shall develop and administer a competitive sealed bidding process for the selection of a potential casino operator licensee to develop or operate a casino within the City. The Board shall issue one or more requests for proposals. The Board may establish minimum financial and investment requirements to determine the eligibility of persons to respond to the Board's requests for proposal, and may establish and consider such other criteria as it deems appropriate. The Board may impose a fee upon persons who respond to requests for proposal, in order to reimburse the Board for its costs in preparing and issuing the requests and reviewing the proposals.

(b) Within 5 days after the time limit for submitting bids and proposals has passed, the Board shall make all bids and proposals public, provided, however, the Board shall not be required to disclose any information which would be exempt from disclosure under Section 7 of the Freedom of Information Act. Thereafter, the Board shall evaluate the responses to its requests for proposal and the ability of all persons or entities responding to its requests for proposal to meet the requirements of this Act and to undertake and perform the obligations set forth in its requests for proposal.

(c) After reviewing proposals and subject to Gaming Board approval, the Board shall enter into a casino management contract authorizing the development, construction, or operation of a casino. Validity of the casino management contract is contingent upon the issuance of a casino operator license to the successful bidder. If the Gaming Board approves the contract and grants a casino operator license, the Board shall transmit a copy of the executed casino management contract to the Gaming Board.

(d) After the Authority has been issued a casino license, the Gaming Board has issued a casino operator license, and the Gaming Board has approved the location of a temporary facility, the Authority may conduct gaming operations at a temporary facility for no longer than 24 months after gaming operations begin. The Gaming Board may, after holding a public hearing, grant an extension so long as a permanent facility is not operational and the Authority is working in good faith to complete the permanent facility. The Gaming Board may grant additional extensions following a public hearing. Each extension may be for a period of no longer than 6 months.

(e) Fifty percent of any initial consideration received by the Authority that was paid as an inducement pursuant to a bid for a casino management contract or an executed casino management contract must be transmitted to the State and deposited into the Gaming Facilities Fee Revenue Fund. The initial consideration shall not include any amounts paid by an entity on behalf of the Authority for any license or per position fees imposed pursuant to the Illinois Gambling Act or any other financial obligation of the Authority.

(Source: 09700SB1849ham002.)

(09700SB1849ham002, Sec. 1-70)

Sec. 1-70. Local regulation. The casino facilities and operations therein shall be subject to all ordinances and regulations of the City. The construction, development, and operation of the casino shall comply with all ordinances, regulations, rules, and controls of the City, including but not limited to those relating to zoning and planned development, building, fire prevention, and land use. However, the regulation of gaming operations is subject to the Illinois Gambling Act and the exclusive jurisdiction of the Gaming Board. The Gaming Board shall be responsible for the investigation and licensure of all licenses required by the Illinois Gambling Act.

(Source: 09700SB1849ham002.)

(09700SB1849ham002, Sec. 1-112)

Sec. 1-112. Contracts with the Authority or casino operator licensee; disclosure requirements.

(a) A bidder, respondent, offeror, or contractor for contracts with the Authority or casino operator licensee shall disclose the identity of all officers and directors and every owner, beneficiary, or person with beneficial interest of more than 1% or shareholder entitled to receive more than 1% of the total distributable income of any corporation having any interest in the contract or in the bidder, respondent, offeror, or contractor. The disclosure shall be in writing and attested to by an owner, trustee, corporate official, or agent. If stock in a corporation is publicly traded and there is no readily known individual having greater than a 1% interest, then a statement to that effect attested to by an officer or agent of the corporation shall fulfill the disclosure statement requirement of this Section. A bidder, respondent, offeror, or contractor shall notify the Authority of any changes in officers, directors, ownership, or individuals having a beneficial interest of more than 1%.

(b) A bidder, respondent, offeror, or contractor for contracts with an annual value of $10,000 or more or for a period to exceed one year shall disclose all political contributions of the bidder, respondent, offeror, or contractor and any affiliated person or entity. Disclosure shall include at least the names and addresses of the contributors and the dollar amounts of any contributions to any political committee made within the previous 2 years. The disclosure must be submitted to the Gaming Board with a copy of the proposed contract.

(c) As used in this Section:

"Contribution" means contribution as defined in Section 9-1.4 of the Election Code.

"Affiliated person" means (i) any person with any ownership interest or distributive share of the bidding, responding, or contracting entity in excess of 1%, (ii) executive employees of the bidding, responding, or contracting entity, and (iii) the spouse and minor children of any such persons.

"Affiliated entity" means (i) any parent or subsidiary of the bidding or contracting entity, (ii) any member of the same unitary business group, or (iii) any political committee for which the bidding, responding, or contracting entity is the sponsoring entity.

(d) The Gaming Board may direct the Authority or a casino operator licensee to void a contract if a violation of this Section occurs. The Authority may direct a casino operator licensee to void a contract if a violation of this Section occurs.

(e) All contracts pertaining to the actual operation of the casino and related gaming activities shall be entered into by the casino operator licensee and not the Authority.

(Source: 09700SB1849ham002.)

Section 10. If and only if Senate Bill 1849 of the 97th General Assembly becomes law as amended by House Amendments No. 2 and 3, then the Election Code is amended by changing the heading of Article 9 and by adding Sections 9-8.7 and 9-8.8 as follows:

(10 ILCS 5/Art. 9 heading)

ARTICLE 9. DISCLOSURE , PROHIBITION, AND REGULATION

OF CAMPAIGN CONTRIBUTIONS AND EXPENDITURES

(Source: P.A. 96-832, eff. 1-1-11.)

(10 ILCS 5/9-8.7 new)

Sec. 9-8.7. Prohibition of political contributions from certain licensees and applicants.

(a) Any person or business entity that holds a license or is an applicant for a license in the categories listed in this subsection (a) under the Illinois Gambling Act, the Illinois Horse Racing Act of 1975, the Video Gaming Act, the Illinois Pull Tabs and Jar Games Act, the Charitable Games Act, the Bingo License and Tax Act, the Raffles Act, or the Illinois Lottery Law, and any affiliated entity or affiliated person of such business entity or any association or organization representing such entity, entities, or persons, are prohibited from making any monetary or in-kind contributions to any political committees or campaigns established to promote the candidacy of any officeholders or any other declared candidate for any office in Illinois. Prohibited persons or entities shall include any affiliated entity or person who has been designated as a Key Person under the Illinois Gambling Act and associated rules or designated as a Person of Significant Influence and Control under the Video Gaming Act and associated rules or who is an officer, director or holder or controller of 5% or more legal or beneficial interest in such business entity under the Illinois Horse Racing Act of 1975 and associated rules. Prohibited person or entity includes those holding the following licenses under the Illinois Gambling Act: owner; manager; and supplier. Prohibited persons or entities shall include those holding the following licenses under the Video Gaming Act: manufacturer; distributor; supplier; terminal operator; licensed establishment; licensed fraternal establishment; licensed veterans establishment; licensed truck stop establishment. Prohibited person or entity includes any horsemen association representing the largest number of owners, trainers, jockeys, or standardbred drivers who race horses at an organization licensee's racing meeting under the Illinois Horse Racing Act of 1975, and any horsemen association representing thoroughbred, standardbred, or quarter horse breeders and owners under the Illinois Horse Racing Act of 1975, and any affiliated entity or person who is an officer, director, employee, or member of such organization.

(b) For licensees, this prohibition shall be effective for a period of 2 years following the expiration, termination, or revocation of a license. For applicants who do not receive a license, this prohibition shall be in place from the time applications are solicited until the application has been denied or the license at issue have been awarded and any related protests or legal actions have been completed. For purposes of this Section, the definitions of "business entity", "affiliated person", and "affiliated entity" set forth in Section 50-37 of the Illinois Procurement Code shall apply.

(c) Any person or entity that makes a prohibited political contribution is subject to a fine of up to $200,000 per violation and any other action deemed appropriate by the applicable regulatory and licensing authority.

(10 ILCS 5/9-8.8 new)

Sec. 9-8.8. Prohibition of political contributions from Chicago casino managers.

(a) Any casino management company or affiliated entity that has a contract or a pending bid or proposal with the Chicago Casino Development Authority or the Chicago Casino Operator or Developer is prohibited from making any monetary or in-kind contributions to any political committees or campaigns established to promote the candidacy of any officeholder or any other declared candidates for any office in Illinois. This prohibition shall be effective for a period of 2 years following the expiration or termination of the contracts. For such companies that have pending bids or proposals, the contribution ban shall begin on the date the invitation for bids or request for proposals is issued.

(b) All contracts between the Chicago Casino Development Authority or the Chicago Casino Operator or Developer and a business entity that violates this Section shall be voidable. If this provision is violated more than 3 times in a 36-month period, then all such contracts shall be void. Furthermore, that business entity will be prohibited from doing any business with the Illinois Gaming Board, the Illinois Racing Board, the Chicago Casino Development Authority, or the Chicago Casino Operator or Developer for 3 years from the date of the last violation. A notice of each violation and corresponding penalty shall be published in the Illinois Register and the Procurement Bulletin.

(c) Any person or entity that makes a prohibited political contribution is subject to a fine of up to $200,000 per violation and any other action deemed appropriate by the applicable regulatory and licensing authority.

Section 15. If and only if Senate Bill 1849 of the 97th General Assembly becomes law as amended by House Amendments No. 2 and 3, then the State Finance Act is amended by changing Section 6z-85 as follows:

(30 ILCS 105/6z-85)

Sec. 6z-85. The Fund for the Advancement of Education; creation. The Fund for the Advancement of Education is hereby created as a special fund in the State treasury. All moneys deposited into the fund shall be appropriated to provide financial assistance for education programs. Moneys appropriated from the Fund shall supplement and not supplant the current level of education funding.

In addition to any other transfers that may be provided for by law, on the effective date of this amendatory Act of the 97th General Assembly, or as soon thereafter as practical, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $75,000,000 from the State Gaming Fund to the Fund for the Advancement of Education for the purpose of providing resources to the Monetary Award Program.

(Source: P.A. 96-1496, eff. 1-13-11.)

Section 20. If and only if Senate Bill 1849 of the 97th General Assembly becomes law as amended by House Amendments No. 2 and 3, then the Illinois Municipal Code is amended by adding Section 11-1-12 as follows:

(65 ILCS 5/11-1-12 new)

Sec. 11-1-12. Emergency services. Any municipality in Lake County that utilizes the police, fire, ambulance, or other emergency services of another unit of local government in providing services to a riverboat or casino shall provide adequate compensation for such services.

Section 25. If and only if Senate Bill 1849 of the 97th General Assembly becomes law as amended by House Amendments No. 2 and 3, then the Illinois Horse Racing Act of 1975 is amended by changing Section 56 as follows:

(230 ILCS 5/56)

Sec. 56. Electronic gaming.

(a) A person, firm, or corporation having operating control of a race track may apply to the Gaming Board for an electronic gaming license. An electronic gaming license shall authorize its holder to conduct electronic gaming on the grounds of the race track controlled by the licensee's race track. Only one electronic gaming license may be awarded for any race track. Each license shall specify the number of gaming positions that its holder may operate.

An electronic gaming licensee may not permit persons under 21 years of age to be present in its electronic gaming facility, but the licensee may accept wagers on live racing and inter-track wagers at its electronic gaming facility.

(b) For purposes of this subsection, "adjusted gross receipts" means an electronic gaming licensee's gross receipts less winnings paid to wagerers and shall also include any amounts that would otherwise be deducted pursuant to subsection (a-9) of Section 13 of the Illinois Gambling Act. The adjusted gross receipts by an electronic gaming licensee from electronic gaming remaining after the payment of taxes under Section 13 of the Illinois Gambling Act shall be distributed as follows:

(1) Amounts shall be paid to the purse account at the track at which the organization licensee is conducting racing equal to the following:

12.75% of annual adjusted gross receipts up to and including $75,000,000;

20% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000;

26.5% of annual adjusted gross receipts in excess of $100,000,000 but not exceeding $125,000,000; and

20.5% of annual adjusted gross receipts in excess of $125,000,000.

(2) The remainder shall be retained by the electronic gaming licensee.

(c) Electronic gaming receipts placed into the purse account of an organization licensee racing thoroughbred horses shall be used for purses, for health care services or worker's compensation for racing industry workers, for equine research, for programs to care for and transition injured and retired thoroughbred horses that race at the race track, or for horse ownership promotion, in accordance with the agreement of the horsemen's association representing the largest number of owners and trainers who race at that organization licensee's race meetings.

Annually, from the purse account of an organization licensee racing thoroughbred horses in the State, except for in Madison County, an amount equal to 12% of the electronic gaming receipts placed into the purse accounts shall be paid to the Illinois Thoroughbred Breeders Fund and shall be used for owner awards; a stallion program pursuant to paragraph (3) of subsection (g) of Section 30 of this Act; and Illinois conceived and foaled stakes races pursuant to paragraph (2) of subsection (g) of Section 30 of this Act, as specifically designated by the horsemen's association representing the largest number of owners and trainers who race at the organization licensee's race meetings.

Annually, from the purse account of an organization licensee racing thoroughbred horses in Madison County, an amount equal to 10% of the electronic gaming receipts placed into the purse accounts shall be paid to the Illinois Thoroughbred Breeders Fund and shall be used for owner awards; a stallion program pursuant to paragraph (3) of subsection (g) of Section 30 of this Act; and Illinois conceived and foaled stakes races pursuant to paragraph (2) of subsection (g) of Section 30 of this Act, as specifically designated by the horsemen's association representing the largest number of owners and trainers who race at the organization licensee's race meetings.

Annually, from the purse account of an organization licensee conducting thoroughbred races at a race track in Madison County, an amount equal to 1% of the electronic gaming receipts distributed to purses per subsection (b) of this Section 56 shall be paid as follows: 0.33 1/3% to Southern Illinois University Department of Animal Sciences for equine research and education, an amount equal to 0.33 1/3% of the electronic gaming receipts shall be used to operate laundry facilities for backstretch workers at that race track, and an amount equal to 0.33 1/3% of the electronic gaming receipts shall be paid to programs to care for injured and unwanted horses that race at that race track.

Annually, from the purse account of organization licensees conducting thoroughbred races at race tracks in Cook County, $100,000 shall be paid for division and equal distribution to the animal sciences department of each Illinois public university system engaged in equine research and education on or before the effective date of this amendatory Act of the 97th General Assembly for equine research and education.

(d) Annually, from the purse account of an organization licensee racing standardbred horses, an amount equal to 15% of the electronic gaming receipts placed into that purse account shall be paid to the Illinois Colt Stakes Purse Distribution Fund. Moneys deposited into the Illinois Colt Stakes Purse Distribution Fund shall be used for standardbred racing as authorized in paragraphs 1, 2, 3, 8, 9, 10, and 11 of subsection (g) of Section 31 of this Act and for bonus awards as authorized under paragraph 6 of subsection (j) of Section 31 of this Act.

(e) As a requirement for continued eligibility to conduct electronic gaming, each organization licensee must promote live racing and horse ownership through marketing and promotional efforts. To meet this requirement, all organization licensees operating at each race track facility must collectively expend the amount of the pari-mutuel tax credit that was certified by the Illinois Racing Board in the prior calendar year pursuant to Section 32.1 of this Act for that race track facility, in addition to the amount that was expended by each organizational licensee for such efforts in calendar year 2009. Such incremental expenditures must be directed to assure that all marketing expenditures, including those for the organization licensee's electronic gaming facility, advertise, market, and promote horse racing or horse ownership. The amount spent by the organization licensee for such marketing and promotional efforts in 2009 shall be certified by the Board no later than 90 days after the effective date of this Section.

The Board shall review any amounts expended pursuant to this subsection (e) and shall also include an itemized description of the amount that was expended by each organization licensee pursuant to this subsection (e) in the annual report that the Board is required to submit pursuant to subsection (d) of Section 14 of the Illinois Horse Racing Act of 1975.

(f) The Board shall submit a report to the General Assembly on or before December 31, 2013 that examines the feasibility of conducting electronic gaming at a race track located in Rock Island County. At a minimum, this report shall analyze the projected revenues that may be generated, the potential for cannibalization of existing riverboats, casinos, or other electronic gaming facilities, and the potential detriment to the surrounding area and its population. The report shall include the Board's findings together with appropriate recommendations.

(Source: 09700SB1849ham002 and ham003.)

Section 30. If and only if Senate Bill 1849 of the 97th General Assembly becomes law as amended by House Amendments No. 2 and 3, then the Illinois Gambling Act is amended by changing Sections 5, 6, 7, 7.6, 12, and 13 as follows:

(230 ILCS 10/5) (from Ch. 120, par. 2405)

Sec. 5. Gaming Board.

(a) (1) There is hereby established the Illinois Gaming Board, which shall have the powers and duties specified in this Act, and all other powers necessary and proper to fully and effectively execute this Act for the purpose of administering, regulating, and enforcing the system of riverboat and casino gambling and electronic gaming established by this Act. Its jurisdiction shall extend under this Act to every person, association, corporation, partnership and trust involved in riverboat and casino gambling operations and electronic gaming in the State of Illinois.

(2) The Board shall consist of 5 members to be appointed by the Governor with the advice and consent of the Senate, one of whom shall be designated by the Governor to be chairperson. Each member shall have a reasonable knowledge of the practice, procedure and principles of gambling operations. Each member shall either be a resident of Illinois or shall certify that he or she will become a resident of Illinois before taking office.

The Board must include the following:

(A) One member who has received, at a minimum, a bachelor's degree from an accredited school and at least 10 years of verifiable training and experience in the fields of investigation and law enforcement.

(B) One member who is a certified public accountant with experience in auditing and with knowledge of complex corporate structures and transactions.

(C) One member who has 5 years' experience as a principal, senior officer, or director of a company or business with either material responsibility for the daily operations and management of the overall company or business or material responsibility for the policy making of the company or business.

(D) One member who is a lawyer licensed to practice law in Illinois.

No more than 3 members of the Board may be from the same political party. The Board should reflect the ethnic, cultural, and geographic diversity of the State. No Board member shall, within a period of one year immediately preceding nomination, have been employed or received compensation or fees for services from a person or entity, or its parent or affiliate, that has engaged in business with the Board, a licensee, or a licensee under the Illinois Horse Racing Act of 1975. Board members must publicly disclose all prior affiliations with gaming interests, including any compensation, fees, bonuses, salaries, and other reimbursement received from a person or entity, or its parent or affiliate, that has engaged in business with the Board, a licensee, or a licensee under the Illinois Horse Racing Act of 1975. This disclosure must be made within 30 days after nomination but prior to confirmation by the Senate and must be made available to the members of the Senate.

(3) The terms of office of the Board members shall be 3 years, except that the terms of office of the initial Board members appointed pursuant to this Act will commence from the effective date of this Act and run as follows: one for a term ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for a term ending July 1, 1993. Upon the expiration of the foregoing terms, the successors of such members shall serve a term for 3 years and until their successors are appointed and qualified for like terms. Vacancies in the Board shall be filled for the unexpired term in like manner as original appointments. Each member of the Board shall be eligible for reappointment at the discretion of the Governor with the advice and consent of the Senate.

(4) Each member of the Board shall receive $300 for each day the Board meets and for each day the member conducts any hearing pursuant to this Act. Each member of the Board shall also be reimbursed for all actual and necessary expenses and disbursements incurred in the execution of official duties.

(5) No person shall be appointed a member of the Board or continue to be a member of the Board who is, or whose spouse, child or parent is, a member of the board of directors of, or a person financially interested in, any gambling operation subject to the jurisdiction of this Board, or any race track, race meeting, racing association or the operations thereof subject to the jurisdiction of the Illinois Racing Board. No Board member shall hold any other public office. No person shall be a member of the Board who is not of good moral character or who has been convicted of, or is under indictment for, a felony under the laws of Illinois or any other state, or the United States.

(5.5) No member of the Board shall engage in any political activity. For the purposes of this Section, "political" means any activity in support of or in connection with any campaign for federal, State, or local elective office or any political organization, but does not include activities (i) relating to the support or opposition of any executive, legislative, or administrative action (as those terms are defined in Section 2 of the Lobbyist Registration Act), (ii) relating to collective bargaining, or (iii) that are otherwise in furtherance of the person's official State duties or governmental and public service functions.

(6) Any member of the Board may be removed by the Governor for neglect of duty, misfeasance, malfeasance, or nonfeasance in office or for engaging in any political activity.

(7) Before entering upon the discharge of the duties of his office, each member of the Board shall take an oath that he will faithfully execute the duties of his office according to the laws of the State and the rules and regulations adopted therewith and shall give bond to the State of Illinois, approved by the Governor, in the sum of $25,000. Every such bond, when duly executed and approved, shall be recorded in the office of the Secretary of State. Whenever the Governor determines that the bond of any member of the Board has become or is likely to become invalid or insufficient, he shall require such member forthwith to renew his bond, which is to be approved by the Governor. Any member of the Board who fails to take oath and give bond within 30 days from the date of his appointment, or who fails to renew his bond within 30 days after it is demanded by the Governor, shall be guilty of neglect of duty and may be removed by the Governor. The cost of any bond given by any member of the Board under this Section shall be taken to be a part of the necessary expenses of the Board.

(8) The Board shall employ such personnel as may be necessary to carry out its functions and shall determine the salaries of all personnel, except those personnel whose salaries are determined under the terms of a collective bargaining agreement. No person shall be employed to serve the Board who is, or whose spouse, parent or child is, an official of, or has a financial interest in or financial relation with, any operator engaged in gambling operations within this State or any organization engaged in conducting horse racing within this State. For the one year immediately preceding employment, an employee shall not have been employed or received compensation or fees for services from a person or entity, or its parent or affiliate, that has engaged in business with the Board, a licensee, or a licensee under the Illinois Horse Racing Act of 1975. Any employee violating these prohibitions shall be subject to termination of employment. In addition, all Board members and employees are subject to the restrictions set forth in Section 5-45 of the State Officials and Employees Ethics Act.

(9) An Administrator shall perform any and all duties that the Board shall assign him. The salary of the Administrator shall be determined by the Board and, in addition, he shall be reimbursed for all actual and necessary expenses incurred by him in discharge of his official duties. The Administrator shall keep records of all proceedings of the Board and shall preserve all records, books, documents and other papers belonging to the Board or entrusted to its care. The Administrator shall devote his full time to the duties of the office and shall not hold any other office or employment. In addition to other prescribed duties, the Administrator shall establish a system by which personnel assisting the Board regarding the issuance of owners licenses, whether it be relocation, re-issuance, or the initial issuance, shall be assigned specific duties in each instance, thereby preventing a conflict of interest in regards to the decision-making process. A conflict of interest exists if a situation influences or creates the appearance that it may influence judgment or performance of duties or responsibilities.

(b) The Board shall have general responsibility for the implementation of this Act. Its duties include, without limitation, the following:

(1) To decide promptly and in reasonable order all license applications. Any party aggrieved by an action of the Board denying, suspending, revoking, restricting or refusing to renew a license may request a hearing before the Board. A request for a hearing must be made to the Board in writing within 5 days after service of notice of the action of the Board. Notice of the action of the Board shall be served either by personal delivery or by certified mail, postage prepaid, to the aggrieved party. Notice served by certified mail shall be deemed complete on the business day following the date of such mailing. The Board shall conduct all requested hearings promptly and in reasonable order;

(2) To conduct all hearings pertaining to civil violations of this Act or rules and regulations promulgated hereunder;

(3) To promulgate such rules and regulations as in its judgment may be necessary to protect or enhance the credibility and integrity of gambling operations authorized by this Act and the regulatory process hereunder;

(4) To provide for the establishment and collection of all license and registration fees and taxes imposed by this Act and the rules and regulations issued pursuant hereto. All such fees and taxes shall be deposited into the State Gaming Fund;

(5) To provide for the levy and collection of penalties and fines for the violation of provisions of this Act and the rules and regulations promulgated hereunder. All such fines and penalties shall be deposited into the Education Assistance Fund, created by Public Act 86-0018, of the State of Illinois;

(6) To be present through its inspectors and agents any time gambling operations are conducted on any riverboat, in any casino, or at any electronic gaming facility for the purpose of certifying the revenue thereof, receiving complaints from the public, and conducting such other investigations into the conduct of the gambling games and the maintenance of the equipment as from time to time the Board may deem necessary and proper;

(7) To review and rule upon any complaint by a licensee regarding any investigative procedures of the State which are unnecessarily disruptive of gambling operations. The need to inspect and investigate shall be presumed at all times. The disruption of a licensee's operations shall be proved by clear and convincing evidence, and establish that: (A) the procedures had no reasonable law enforcement purposes, and (B) the procedures were so disruptive as to unreasonably inhibit gambling operations;

(8) To hold at least one meeting each quarter of the fiscal year. In addition, special meetings may be called by the Chairman or any 2 Board members upon 72 hours written notice to each member. All Board meetings shall be subject to the Open Meetings Act. Three members of the Board shall constitute a quorum, and 3 votes shall be required for any final determination by the Board. The Board shall keep a complete and accurate record of all its meetings. A majority of the members of the Board shall constitute a quorum for the transaction of any business, for the performance of any duty, or for the exercise of any power which this Act requires the Board members to transact, perform or exercise en banc, except that, upon order of the Board, one of the Board members or an administrative law judge designated by the Board may conduct any hearing provided for under this Act or by Board rule and may recommend findings and decisions to the Board. The Board member or administrative law judge conducting such hearing shall have all powers and rights granted to the Board in this Act. The record made at the time of the hearing shall be reviewed by the Board, or a majority thereof, and the findings and decision of the majority of the Board shall constitute the order of the Board in such case;

(9) To maintain records which are separate and distinct from the records of any other State board or commission. Such records shall be available for public inspection and shall accurately reflect all Board proceedings;

(10) To file a written annual report with the Governor on or before March 1 each year and such additional reports as the Governor may request. The annual report shall include a statement of receipts and disbursements by the Board, actions taken by the Board, and any additional information and recommendations which the Board may deem valuable or which the Governor may request;

(11) (Blank);

(12) (Blank);

(13) To assume responsibility for administration and enforcement of the Video Gaming Act;

(13.5) To assume responsibility for the administration and enforcement of operations at electronic gaming facilities pursuant to this Act and the Illinois Horse Racing Act of 1975; and

(14) To adopt, by rule, a code of conduct governing Board members and employees that ensure, to the maximum extent possible, that persons subject to this Code avoid situations, relationships, or associations that may represent or lead to a conflict of interest.

Any action by the Board or staff of the Board, including, but not limited to, denying a renewal, approving procedures (including internal controls), levying a fine or penalty, promotions, or other activities affecting an applicant for licensure or a licensee, may at the discretion of the applicant or licensee be appealed to an administrative law judge in accordance with subsection (b) of Section 17.1.

Internal controls and changes submitted by licensees must be reviewed and either approved or denied with cause within a reasonable time 60 days after receipt of a complete package and all necessary information by the Illinois Gaming Board. In the event an internal control submission or change does not meet the standards set by the Board, staff of the Board must provide technical assistance to the licensee to rectify such deficiencies within a reasonable time 60 days after the initial submission and the revised submission must be reviewed and approved or denied with cause within a reasonable time 60 days. For the purposes of this paragraph, "with cause" means that the approval of the submission would jeopardize the integrity of gaming. In the event the Board staff has not acted within the timeframe, the submission shall be deemed approved.

(c) The Board shall have jurisdiction over and shall supervise all gambling operations governed by this Act and the Chicago Casino Development Authority Act. The Board shall have all powers necessary and proper to fully and effectively execute the provisions of this Act, including, but not limited to, the following:

(1) To investigate applicants and determine the eligibility of applicants for licenses and to select among competing applicants the applicants which best serve the interests of the citizens of Illinois.

(2) To have jurisdiction and supervision over all gambling operations authorized under this Act and all persons in places where gambling operations are conducted.

(3) To promulgate rules and regulations for the purpose of administering the provisions of this Act and to prescribe rules, regulations and conditions under which all gambling operations subject to this Act shall be conducted. Such rules and regulations are to provide for the prevention of practices detrimental to the public interest and for the best interests of gambling, including rules and regulations regarding the inspection of electronic gaming facilities, casinos, and riverboats and the review of any permits or licenses necessary to operate a riverboat, casino, or electronic gaming facilities under any laws or regulations applicable to riverboats, casinos, or electronic gaming facilities and to impose penalties for violations thereof.

(4) To enter the office, riverboats, casinos, electronic gaming facilities, and other facilities, or other places of business of a licensee, where evidence of the compliance or noncompliance with the provisions of this Act is likely to be found.

(5) To investigate alleged violations of this Act or the rules of the Board and to take appropriate disciplinary action against a licensee or a holder of an occupational license for a violation, or institute appropriate legal action for enforcement, or both.

(6) To adopt standards for the licensing of all persons under this Act, as well as for electronic or mechanical gambling games, and to establish fees for such licenses.

(7) To adopt appropriate standards for all electronic gaming facilities, riverboats, casinos, and other facilities authorized under this Act.

(8) To require that the records, including financial or other statements of any licensee under this Act, shall be kept in such manner as prescribed by the Board and that any such licensee involved in the ownership or management of gambling operations submit to the Board an annual balance sheet and profit and loss statement, list of the stockholders or other persons having a 1% or greater beneficial interest in the gambling activities of each licensee, and any other information the Board deems necessary in order to effectively administer this Act and all rules, regulations, orders and final decisions promulgated under this Act.

(9) To conduct hearings, issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records and other pertinent documents in accordance with the Illinois Administrative Procedure Act, and to administer oaths and affirmations to the witnesses, when, in the judgment of the Board, it is necessary to administer or enforce this Act or the Board rules.

(10) To prescribe a form to be used by any licensee involved in the ownership or management of gambling operations as an application for employment for their employees.

(11) To revoke or suspend licenses, as the Board may see fit and in compliance with applicable laws of the State regarding administrative procedures, and to review applications for the renewal of licenses. The Board may suspend an owners license, electronic gaming license, or casino operator license, without notice or hearing upon a determination that the safety or health of patrons or employees is jeopardized by continuing a gambling operation conducted under that license. The suspension may remain in effect until the Board determines that the cause for suspension has been abated. The Board may revoke the owners license, electronic gaming license, or casino operator license upon a determination that the licensee has not made satisfactory progress toward abating the hazard.

(12) To eject or exclude or authorize the ejection or exclusion of, any person from gambling facilities where that person is in violation of this Act, rules and regulations thereunder, or final orders of the Board, or where such person's conduct or reputation is such that his or her presence within the gambling facilities may, in the opinion of the Board, call into question the honesty and integrity of the gambling operations or interfere with the orderly conduct thereof; provided that the propriety of such ejection or exclusion is subject to subsequent hearing by the Board.

(13) To require all licensees of gambling operations to utilize a cashless wagering system whereby all players' money is converted to tokens, electronic cards, or chips which shall be used only for wagering in the gambling establishment.

(14) (Blank).

(15) To suspend, revoke or restrict licenses, to require the removal of a licensee or an employee of a licensee for a violation of this Act or a Board rule or for engaging in a fraudulent practice, and to impose civil penalties of up to $5,000 against individuals and up to $10,000 or an amount equal to the daily gross receipts, whichever is larger, against licensees for each violation of any provision of the Act, any rules adopted by the Board, any order of the Board or any other action which, in the Board's discretion, is a detriment or impediment to gambling operations.

(16) To hire employees to gather information, conduct investigations and carry out any other tasks contemplated under this Act.

(17) To establish minimum levels of insurance to be maintained by licensees.

(18) To authorize a licensee to sell or serve alcoholic liquors, wine or beer as defined in the Liquor Control Act of 1934 on board a riverboat or in a casino and to have exclusive authority to establish the hours for sale and consumption of alcoholic liquor on board a riverboat or in a casino, notwithstanding any provision of the Liquor Control Act of 1934 or any local ordinance, and regardless of whether the riverboat makes excursions. The establishment of the hours for sale and consumption of alcoholic liquor on board a riverboat or in a casino is an exclusive power and function of the State. A home rule unit may not establish the hours for sale and consumption of alcoholic liquor on board a riverboat or in a casino. This subdivision (18) is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

(19) After consultation with the U.S. Army Corps of Engineers, to establish binding emergency orders upon the concurrence of a majority of the members of the Board regarding the navigability of water, relative to excursions, in the event of extreme weather conditions, acts of God or other extreme circumstances.

(20) To delegate the execution of any of its powers under this Act for the purpose of administering and enforcing this Act and its rules and regulations hereunder.

(20.5) To approve any contract entered into on its behalf.

(20.6) To appoint investigators to conduct investigations, searches, seizures, arrests, and other duties imposed under this Act, as deemed necessary by the Board. These investigators have and may exercise all of the rights and powers of peace officers, provided that these powers shall be limited to offenses or violations occurring or committed on a riverboat or dock, as defined in subsections (d) and (f) of Section 4, or as otherwise provided by this Act or any other law.

(20.7) To contract with the Department of State Police for the use of trained and qualified State police officers and with the Department of Revenue for the use of trained and qualified Department of Revenue investigators to conduct investigations, searches, seizures, arrests, and other duties imposed under this Act and to exercise all of the rights and powers of peace officers, provided that the powers of Department of Revenue investigators under this subdivision (20.7) shall be limited to offenses or violations occurring or committed on a riverboat or dock, as defined in subsections (d) and (f) of Section 4, or as otherwise provided by this Act or any other law. In the event the Department of State Police or the Department of Revenue is unable to fill contracted police or investigative positions, the Board may appoint investigators to fill those positions pursuant to subdivision (20.6).

(21) To make rules concerning the conduct of electronic gaming.

(22) To have the same jurisdiction and supervision over casinos and electronic gaming facilities as the Board has over riverboats, including, but not limited to, the power to (i) investigate, review, and approve contracts as that power is applied to riverboats, (ii) promulgate rules and regulations for administering the provisions of this Act, (iii) adopt standards for the licensing of all persons involved with a casino or electronic gaming facility, (iv) investigate alleged violations of this Act by any person involved with a casino or electronic gaming facility, and (v) require that records, including financial or other statements of any casino or electronic gaming facility, shall be kept in such manner as prescribed by the Board.

(23) To supervise and regulate the Chicago Casino Development Authority in accordance with the Chicago Casino Development Authority Act and the provisions of this Act.

(24) To take any other action as may be reasonable or appropriate to enforce this Act and rules and regulations hereunder.

(d) The Board may seek and shall receive the cooperation of the Department of State Police in conducting background investigations of applicants and in fulfilling its responsibilities under this Section. Costs incurred by the Department of State Police as a result of such cooperation shall be paid by the Board in conformance with the requirements of Section 2605-400 of the Department of State Police Law (20 ILCS 2605/2605-400).

(e) The Board must authorize to each investigator and to any other employee of the Board exercising the powers of a peace officer a distinct badge that, on its face, (i) clearly states that the badge is authorized by the Board and (ii) contains a unique identifying number. No other badge shall be authorized by the Board.

(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1392, eff. 1-1-11; 09700SB1849ham002.)

(230 ILCS 10/6) (from Ch. 120, par. 2406)

Sec. 6. Application for Owners License.

(a) A qualified person may apply to the Board for an owners license to conduct a riverboat gambling operation as provided in this Act. The application shall be made on forms provided by the Board and shall contain such information as the Board prescribes, including but not limited to the identity of the riverboat on which such gambling operation is to be conducted, if applicable, and the exact location where such riverboat or casino will be located, a certification that the riverboat will be registered under this Act at all times during which gambling operations are conducted on board, detailed information regarding the ownership and management of the applicant, and detailed personal information regarding the applicant. Any application for an owners license to be re-issued on or after June 1, 2003 shall also include the applicant's license bid in a form prescribed by the Board. Information provided on the application shall be used as a basis for a thorough background investigation which the Board shall conduct with respect to each applicant. An incomplete application shall be cause for denial of a license by the Board.

(a-5) In addition to any other information required under this Section, each application for an owners license or license for a casino management contract pursuant to the Authority must include the following information:

(1) The history and success of the applicant and each person and entity disclosed under subsection (c) of this Section in developing tourism facilities ancillary to gaming, if applicable.

(2) The likelihood that granting a license to the applicant will lead to the creation of quality, living wage jobs and permanent, full-time jobs for residents of the State and residents of the unit of local government that is designated as the home dock of the proposed facility where gambling is to be conducted by the applicant.

(3) The projected number of jobs that would be created if the license is granted and the projected number of new employees at the proposed facility where gambling is to be conducted by the applicant.

(4) The record of the applicant and its developer in meeting commitments to local agencies, community-based organizations, and employees at other locations where the applicant or its developer has performed similar functions as they would perform if the applicant were granted a license.

(5) Identification of adverse effects that might be caused by the proposed facility where gambling is to be conducted by the applicant, including the costs of meeting increased demand for public health care, child care, public transportation, affordable housing, and social services, and a plan to mitigate those adverse effects.

(6) The record of the applicant and its developer regarding compliance with:

(A) federal, state, and local discrimination, wage and hour, disability, and occupational and environmental health and safety laws; and

(B) state and local labor relations and employment laws.

(7) The applicant's record in dealing with its employees and their representatives at other locations.

(8) A plan concerning the utilization of minority-owned and female-owned businesses and concerning the hiring of minorities and females.

(9) Evidence the applicant used its best efforts to reach a goal of 25% ownership representation by minority persons and 5% ownership representation by females.

(b) Applicants shall submit with their application all documents, resolutions, and letters of support from the governing body that represents the municipality or county wherein the licensee will be located.

(c) Each applicant shall disclose the identity of every person, association, trust or corporation having a greater than 1% direct or indirect pecuniary interest in the gambling operation with respect to which the license is sought. If the disclosed entity is a trust, the application shall disclose the names and addresses of the beneficiaries; if a corporation, the names and addresses of all stockholders and directors; if a partnership, the names and addresses of all partners, both general and limited.

(d) An application shall be filed and considered in accordance with the rules of the Board. An application fee of $50,000 shall be paid at the time of filing to defray the costs associated with the background investigation conducted by the Board. If the costs of the investigation exceed $50,000, the applicant shall pay the additional amount to the Board. If the costs of the investigation are less than $50,000, the applicant shall receive a refund of the remaining amount. All information, records, interviews, reports, statements, memoranda or other data supplied to or used by the Board in the course of its review or investigation of an application for a license or a renewal under this Act shall be privileged, strictly confidential and shall be used only for the purpose of evaluating an applicant for a license or a renewal. Such information, records, interviews, reports, statements, memoranda or other data shall not be admissible as evidence, nor discoverable in any action of any kind in any court or before any tribunal, board, agency or person, except for any action deemed necessary by the Board.

(e) The Board shall charge each applicant a fee set by the Department of State Police to defray the costs associated with the search and classification of fingerprints obtained by the Board with respect to the applicant's application. These fees shall be paid into the State Police Services Fund.

(f) The licensed owner shall be the person primarily responsible for the boat or casino itself. Only one gambling operation may be authorized by the Board on any riverboat or in any casino. The applicant must identify the riverboat or premises it intends to use and certify that the riverboat or premises: (1) has the authorized capacity required in this Act; (2) is accessible to disabled persons; and (3) is fully registered and licensed in accordance with any applicable laws.

(g) A person who knowingly makes a false statement on an application is guilty of a Class A misdemeanor.

(Source: P.A. 96-1392, eff. 1-1-11; 09700SB1849ham002.)

(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, (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, or (v) when an owners licensee holding a license issued pursuant to Section 7.1 of this Act begins conducting gaming, 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 this 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 gambling;

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

(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;

(8) the amount of the applicant's license bid;

(9) the extent to which the applicant or the proposed host municipality plans to enter into revenue sharing agreements with communities other than the host municipality and the terms of those agreements; and

(10) the extent to which the ownership of an applicant includes the most qualified number of minority persons, females, and persons with a disability.

(c) Each owners license shall specify the place where the casino shall operate or the riverboat shall operate and dock.

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

(e) In addition to any licenses authorized under subsection (e-5) of this Section, 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 in Tazewell County or, with approval by a municipality in which such riverboat was docked on January 1, 2010 and with Board approval, shall authorize the riverboat to relocate to a new location that is no more than 10 miles away from its original location, in a municipality that (1) borders on the Illinois River or is within 5 miles of the city limits of a municipality that borders on the Illinois River and (2) on January 1, 2010, had a riverboat conducting riverboat gambling operations pursuant to a license issued under this Act. 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.

(e-5) In addition to licenses authorized under subsection (e) of this Section, the Board may issue the following licenses:

(1) One owners license authorizing the conduct of casino gambling in the City of Chicago.

(2) One owners license authorizing the conduct of riverboat gambling in the City of Danville.

(3) One owners license authorizing the conduct of riverboat gambling located in the City of Park City.

(4) One owners license authorizing the conduct of riverboat gambling in the City of Rockford.

(5) One owners license authorizing the conduct of riverboat gambling in a municipality that is located in one of the following townships of Cook County: Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township.

(e-6) The Board shall consider issuing a license pursuant to subsection (e-5) only after the corporate authority of the municipality in which the casino or riverboat shall be located has certified to the Board the following:

(1) that the applicant was chosen through a competitive selection process that was open to the public;

(2) (1) that the applicant has negotiated with the corporate authority in good faith;

(3) (2) that the applicant and the corporate authority have mutually agreed on the permanent location of the casino or riverboat;

(4) (3) that the applicant and the corporate authority have mutually agreed on the temporary location of the casino or riverboat;

(5) (4) that the applicant and the corporate authority have mutually agreed on the percentage of revenues that will be shared with the municipality, if any; and

(6) (5) that the applicant and the corporate authority have mutually agreed on any zoning, licensing, public health, or other issues that are within the jurisdiction of the municipality.

At least 7 days before the corporate authority of a municipality submits a certification to the Board concerning items (1) through (6) of this subsection, it shall hold a public hearing to discuss items (1) through (6), as well as any other details concerning the proposed riverboat or casino in the municipality. The corporate authority must subsequently memorialize the details concerning the proposed riverboat or casino in a resolution that must be adopted by a majority of the corporate authority before any certification is sent to the Board. The Board shall not alter, amend, change, or otherwise interfere with any agreement between the applicant and the corporate authority of the municipality regarding the location of any temporary or permanent facility.

(e-10) The licenses authorized under subsection (e-5) of this Section shall be issued within a reasonable time 12 months after the date the license application is submitted. If the Board does not issue the licenses within that time period, then the Board shall give a written explanation to the applicant as to why it has not reached a determination. The Board shall issue the license within 6 months after giving the written explanation to the applicant. The fee for the issuance or renewal of a license issued pursuant to this subsection (e-10) shall be $100,000. Additionally, a licensee located outside of Cook County shall pay a minimum initial fee of $12,500 per gaming position, and a licensee located in Cook County shall pay a minimum initial fee of $25,000 per gaming position. The initial fees payable under this subsection (e-10) shall be deposited into the Gaming Facilities Fee Revenue Fund.

(e-15) Each licensee of a license authorized under subsection (e-5) of this Section shall make a reconciliation payment 4 years after the date the licensee begins operating in an amount equal to 75% of the adjusted gross receipts for the most lucrative 12-month period of operations, minus an amount equal to the initial $12,500, $25,000, or any higher initial payment per gaming position, whichever was the initial amount paid by the specific licensee. If this calculation results in a negative amount, then the licensee is not entitled to any reimbursement of fees previously paid. This reconciliation payment may be made in installments over a period of no more than 2 years, subject to Board approval. Any installment payments shall include an annual market interest rate as determined by the Board. All payments by licensees under this subsection (e-15) shall be deposited into the Gaming Facilities Fee Revenue Fund.

(e-20) 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.

(e-25) The provisions of this subsection (e-25) apply only to an owners licensee of a license issued or re-issued pursuant to Section 7.1 of this Act. The owners licensee shall pay (i) a $100,000 fee for the issuance or renewal of its license and (ii) an initial fee of $25,000 per gaming position in place of, and not in addition to, the initial fee required under subsection (h) of this Section. Additionally, the owners licensee shall make a reconciliation payment on July 1, 2016 in an amount equal to 75% of the average annual adjusted gross receipts, minus an amount equal to the $25,000 initial payment per gaming position. If this calculation results in a negative amount, then the owners licensee is not entitled to any reimbursement of fees previously paid. This reconciliation payment may be made in installments over a period of no more than 2 years, subject to Board approval. Any installment payments shall include an annual market interest rate as determined by the Board. All payments by licensees under this subsection (e-25) shall be deposited into the Gaming Facilities Fee Revenue Fund. For any payments required under this Section 7, the owners licensee shall receive (i) a credit for any amounts that the owners licensee has paid to the State or the Board or their agents prior to November 1, 2010 for consultants, licensing fees, up-front fees, or other items and (ii) a credit for the payments that the unit of local government has pledged to remit to the State, which shall be equal to the present value of such payments as determined by the Board in its decision dated January 14, 2009. An owners licensee subject to this subsection (e-25) shall only pay the initial fees required pursuant to this subsection and shall not have to pay any initial fees or payments that were ordered by the Board prior to November 1, 2010. However, any payments that have been made by an owners licensee subject to this subsection (e-25) to the State or to the Board or their agents shall remain with the State and the owners licensee shall receive a credit as specified in this subsection (e-25).

In the event the owners licensee has made payments on or after November 1, 2010 but prior to the effective date of this amendatory Act of the 97th General Assembly to the State or the Board or their agents towards the amount it bid during the selection process to receive its owners license, then such payments shall be refunded to the owners licensee. The refund shall be in the form of a credit, which shall offset taxes due under Section 12 and Section 13 in the amount of such prior payments to the State or the Board or their agents as such taxes under Section 12 and Section 13 become due, and which credit shall be in addition to any other credit granted in this subsection (e-25) and elsewhere in the Illinois Gambling Act. If any credit granted in this subsection (e-25) is not fully utilized in any given year, then the remainder shall be carried forward to subsequent years until such credit has been fully utilized. Consistent with the provisions contained in this subsection (e-25), the owners licensee shall be treated as having paid the amount of taxes due under Sections 12 and 13 without reduction for the credit granted in this subsection (e-25), and the amount of such credit shall be considered a refund of the owners licensee bid amount as such credit is utilized.

(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) 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, including casino operator licenses, renewal shall be for a period of 4 years, unless the Board sets a shorter period. Notwithstanding any provision in this subsection (g) to the contrary, any license that is awarded to the Chicago Casino Development Authority shall not expire, but it shall be subject to the provisions of this Act and the rules of the Board, provided, however, that nothing in this Act or in the Chicago Casino Development Authority Act shall limit the authority of the Board granted to it by Section 5 of this Act to take any action necessary to protect the credibility and integrity of gambling operations in this State, including, but not limited to, the authority to revoke any license, including that awarded to the Chicago Casino Development Authority, and to suspend any license, including that awarded to the Chicago Casino Development Authority, for just cause and until such time as the event or events that precipitated the Board's action have been addressed to the satisfaction of the Board.

(h) An owners license, except for an owners license issued under subsection (e-5) of this Section, shall entitle the licensee to own up to 2 riverboats.

An owners licensee of a casino or riverboat that is located in the City of Chicago pursuant to subsection (e-5) of this Section shall limit the number of gaming positions to 4,000 for such owners. All other owners licensees shall limit the number of gaming positions to 1,600 for any such owners license, except as further provided in subsection (h-10) of this Section. The initial fee for each gaming position obtained on or after the effective date of this amendatory Act of the 97th General Assembly shall be a minimum of $12,500 for licensees not located in Cook County and a minimum of $25,000 for licensees located in Cook County, in addition to the reconciliation payment, as set forth in subsections (e-15), (e-25), or (h-5) of this Section.

A licensee may operate both of its riverboats concurrently, provided that the total number of gaming positions on both riverboats does not exceed the limit established pursuant to this subsection and subsection (h-10) of this Section . 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.

(h-5) An owners licensee who conducted gambling operations prior to January 1, 2011 and purchases positions under subsection (h) of this Section on or after the effective date of this amendatory Act of the 97th General Assembly must pay an initial fee of $12,500 per gaming position if the licensee is located outside Cook County and an initial fee of $25,000 per gaming position if the licensee is located in Cook County, as stated in subsection (h) of this Section. These initial fees shall be deposited into the Gaming Facilities Fee Revenue Fund. Additionally, that owners licensee shall make a reconciliation payment 4 years after any additional gaming positions authorized by subsection (h) begin operating in an amount equal to 75% of the owners licensee's average gross receipts for the most lucrative 12-month period of operations minus an amount equal to $12,500 or $25,000 that the owners licensee paid per additional gaming position. For purposes of this subsection (h-5), "average gross receipts" means (i) the increase in adjusted gross receipts for the most lucrative 12-month period of operations over the adjusted gross receipts for 2011, multiplied by (ii) the percentage derived by dividing the number of additional gaming positions that an owners licensee had purchased pursuant to subsection (h) by the total number of gaming positions operated by the owners licensee. If this calculation results in a negative amount, then the owners licensee is not entitled to any reimbursement of fees previously paid. This reconciliation payment may be made in installments over a period of no more than 2 years, subject to Board approval. Any installment payments shall include an annual market interest rate as determined by the Board. These reconciliation payments shall be deposited into the Gaming Facilities Fee Revenue Fund.

(h-10) All owners licensees in operation prior to the effective date of this amendatory Act of the 97th General Assembly shall have 90 days after such effective date to reserve up to 1,600 gaming positions, including gaming positions in operation prior to such effective date. Any positions that are not reserved by a licensed owner within 90 days after such effective date shall be forfeited and retained by the Board. The initial fee for each gaming position imposed by subsection (h) of this Section shall be payable within 90 days after the Board publishes the number of gaming positions reserved by each existing owners licensee and the total unreserved gaming positions. Any positions that have been reserved, but for which payment has not been received, shall be forfeited and retained by the Board. Nothing in this paragraph shall prevent an owners licensee from immediately having up to 1,600 gaming positions in operation on the effective date of this amendatory Act of the 97th General Assembly upon receipt of the required payment for the gaming positions.

Thereafter, the Board shall publish the number of gaming positions reserved and unreserved by each owners licensee, shall accept requests for additional gaming positions from any owners licensee which initially reserved 1,600 gaming positions, and shall allocate expeditiously the unreserved gaming positions to such requesting owners licensees in a manner to maximize revenue to the State. All positions obtained pursuant to this process must be in operation within 18 months after they were obtained or the owners licensee forfeits the right to operate those positions, but is not entitled to a refund of any fees paid. The Board may, after holding a public hearing, grant extensions so long as a licensed owner is working in good faith to make the positions operational. The extension may be for a period of 6 months. If, after the period of the extension, a licensed owner has not made the positions operational, then another public hearing must be held by the Board before it may grant another extension.

For owners licensees not in operation prior to the effective date of this amendatory Act of the 97th General Assembly, and authorized under subsections (e-5)(2) through (e-5)(5) of this Section, the application for such new owners licenses shall ask the applicants to stipulate in their applications the number of gaming positions each applicant would like to reserve, up to 1,600 gaming positions. Once the last winning applicant for each of these owners licenses has been selected by the Board, the Board shall publish the number of gaming positions reserved and unreserved by each winning applicant, shall accept requests for additional gaming positions from any applicant which initially reserved 1,600 gaming positions, and shall allocate expeditiously the unreserved gaming positions to such requesting applicants in a manner to maximize revenue to the State.

In the event that not all of the unreserved gaming positions described in the first and second paragraphs of this subsection (h-10) were requested by owners licensees and applicants, then until there are no longer unreserved gaming positions, the Board periodically shall govern a process to allocate the unreserved gaming positions in a manner to maximize revenue to the State.

Unreserved gaming positions retained from and allocated to owners licensees by the Board pursuant to this subsection (h-10) shall not be allocated to electronic gaming licensees pursuant to subsection (e) of Section 7.6 of this Act.

For the purpose of this subsection (h-10), the unreserved gaming positions for each existing owners licensee shall be 1,600 less the greater of (i) 1,200; or (ii) the number of reserved gaming positions by such owners licensee, and the total unreserved gaming positions shall be the aggregate of the unreserved gaming positions for all existing owners licensees.

(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 or a casino, 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 or in the casino.

(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.

(k) An owners licensee may conduct land-based gambling operations upon approval by the Board.

(l) An owners licensee may, upon approval by the Board, conduct gaming at a temporary facility pending the construction of a permanent facility or the remodeling or relocation of an existing facility to accommodate gaming participants for up to 24 months after the temporary facility begins to conduct gaming. Upon request by an owners licensee and upon a showing of good cause by the owners licensee, the Board shall extend the period during which the licensee may conduct gaming at a temporary facility by up to 12 months. The Board shall make rules concerning the conduct of gaming from temporary facilities.

(Source: P.A. 95-1008, eff. 12-15-08; 96-1392, eff. 1-1-11; 09700SB1849ham002 and ham003.)

(230 ILCS 10/7.6)

Sec. 7.6. Electronic gaming.

(a) The General Assembly finds that the horse racing and riverboat gambling industries share many similarities and collectively comprise the bulk of the State's gaming industry. One feature common to both industries is that each is highly regulated by the State of Illinois. The General Assembly further finds, however, that despite their shared features each industry is distinct from the other in that horse racing is and continues to be intimately tied to Illinois' agricultural economy and is, at its core, a spectator sport. This distinction requires the General Assembly to utilize different methods to regulate and promote the horse racing industry throughout the State. The General Assembly finds that in order to promote live horse racing as a spectator sport in Illinois and the agricultural economy of this State, it is necessary to allow electronic gaming at Illinois race tracks as an ancillary use given the success of other states in increasing live racing purse accounts and improving the quality of horses participating in horse race meetings.

(b) The Illinois Gaming Board shall award one electronic gaming license to each person, firm, or corporation having operating control of a race track that applies under Section 56 of the Illinois Horse Racing Act of 1975, subject to the application and eligibility requirements of this Section. Within 60 days after the effective date of this amendatory Act of the 97th General Assembly, a person, firm, or corporation having operating control of a race track may submit an application for an electronic gaming license. The application shall specify the number of gaming positions the applicant intends to use and the place where the electronic gaming facility will operate.

The Board shall determine within 120 days after receiving an application for an electronic gaming license, whether to grant an electronic gaming license to the applicant within a reasonable time. If the Board does not make a determination within that time period, then the Board shall give a written explanation to the applicant as to why it has not reached a determination and when it reasonably expects to make a determination.

The electronic gaming licensee shall purchase up to the amount of electronic gaming positions authorized under this Act within 120 days after receiving its electronic gaming license. If an electronic gaming licensee is prepared to purchase the electronic gaming positions, but is temporarily prohibited from doing so by order of a court of competent jurisdiction or the Board, then the 120-day period is tolled until a resolution is reached.

An electronic gaming license shall authorize its holder to conduct electronic gaming at its race track at the following times:

(1) On days when it conducts live racing at the track where its electronic gaming facility is located, from 8:00 a.m. until 3:00 a.m. on the following day.

(2) On days when it is scheduled to conduct simulcast wagering on races run in the United States, from 8:00 a.m. until 3:00 a.m. on the following day.

Additionally, the Board may extend these days of operation and hours upon request by an organization licensee as the Board sees fit.

A license to conduct electronic gaming and any renewal of an electronic gaming license shall authorize electronic gaming for a period of 4 years. The fee for the issuance or renewal of an electronic gaming license shall be $100,000.

(c) To be eligible to conduct electronic gaming, a person, firm, or corporation having operating control of a race track must (i) obtain an electronic gaming license, (ii) hold an organization license under the Illinois Horse Racing Act of 1975, (iii) hold an inter-track wagering license, (iv) pay an initial fee of $25,000 per gaming position from electronic gaming licensees where electronic gaming is conducted in Cook County and $12,500 for electronic gaming licensees where electronic gaming is located outside of Cook County before beginning to conduct electronic gaming plus make the reconciliation payment required under subsection (i), (v) conduct at least 240 live races at each track per year or for a licensee that is only authorized 350 gaming positions pursuant to subsection (d) of Section 7.6 of this Act, 96 live races per year until such time as the total number of gaming positions is increased to 900, (vi) meet the requirements of subsection (a) of Section 56 of the Illinois Horse Racing Act of 1975, (vii) for organization licensees conducting standardbred race meetings that had an open backstretch in 2009, keep backstretch barns and dormitories open and operational year-round unless a lesser schedule is mutually agreed to by the organization licensee and the horsemen's association racing at that organization licensee's race meeting, (viii) for organization licensees conducting thoroughbred race meetings, the organization licensee must maintain accident medical expense liability insurance coverage of $1,000,000 for jockeys, and (ix) meet all other requirements of this Act that apply to owners licensees. Only those persons, firms, or corporations (or its successors or assigns) that had operating control of a race track and held an inter-track wagering license authorized by the Illinois Racing Board in 2009 are eligible.

An electronic gaming licensee may enter into a joint venture with a licensed owner to own, manage, conduct, or otherwise operate the electronic gaming licensee's electronic gaming facilities, unless the electronic gaming licensee has a parent company or other affiliated company that is, directly or indirectly, wholly owned by a parent company that is also licensed to conduct electronic gaming, casino gaming, or their equivalent in another state.

All payments by licensees under this subsection (c) shall be deposited into the Gaming Facilities Fee Revenue Fund.

(d) The Board may approve electronic gaming positions statewide as provided in this Section. The authority to operate electronic gaming positions under this Section shall be allocated as follows: up to 1,200 gaming positions for any electronic gaming licensee in Cook County whose electronic gaming license originates with an organization licensee that conducted live racing in calendar year 2010; up to 900 gaming positions for any electronic gaming licensee outside of Cook County whose electronic gaming license originates with an organization licensee that conducted live racing in calendar year 2010; and, beginning on January 1, 2015, up to 350 gaming positions for any electronic gaming licensee whose electronic gaming license originates with an organization licensee that did not conduct live racing in calendar year 2010, which shall increase to 900 gaming positions (i) if the electronic gaming licensee conducted 96 live races in the previous calendar year or (ii) beginning on January 1, 2017 2015, whichever occurs first, provided that the Board issues a report that recommends conducting electronic gaming at a race track in Rock Island County.

(e) Each applicant for an electronic gaming license shall specify in its application for licensure the number of gaming positions it will operate, up to the applicable limitation set forth in subsection (d) of this Section. Any unreserved gaming positions that are not specified shall be forfeited and retained by the Board. For the purposes of this subsection (e), an electronic gaming licensee that did not conduct live racing in 2010 may reserve up to 900 positions and shall not be penalized under this Section for not operating those positions until it meets the requirements of subsection (d) of this Section, but such licensee shall not request unreserved gaming positions under this subsection (e) until its 900 positions are all operational.

Thereafter, the Board shall offer any unreserved gaming positions in equal amounts to electronic gaming licensees, or applicants therefor, that have purchased all of the positions that were offered. This process shall continue until all unreserved gaming positions have been purchased. All positions obtained pursuant to this process and all positions the electronic gaming licensee specified it would operate in its application must be in operation within 18 months after they were obtained or the electronic gaming licensee forfeits the right to operate those positions, but is not entitled to a refund of any fees paid. The Board may, after holding a public hearing, grant extensions so long as the electronic gaming licensee is working in good faith to make the positions operational. The extension may be for a period of 6 months. If, after the period of the extension, the electronic gaming licensee has not made the positions operational, then another public hearing must be held by the Board before it may grant another extension.

Unreserved gaming positions retained from and allocated to electronic gaming licensees by the Board pursuant to this subsection (e) shall not be allocated to owners licensees pursuant to subsection (h-10) of Section 7 of this Act.

For the purpose of this subsection (e), the unreserved gaming positions for each electronic gaming licensee shall be the applicable limitation set forth in subsection (d) of this Section, less the number of reserved gaming positions by such electronic gaming licensee, and the total unreserved gaming positions shall be the aggregate of the unreserved gaming positions for all electronic gaming licensees.

(f) Subject to the approval of the Illinois Gaming Board, an electronic gaming licensee may make modification or additions to any existing buildings and structures to comply with the requirements of this Act. The Illinois Gaming Board shall make its decision after consulting with the Illinois Racing Board. In no case, however, shall the Illinois Gaming Board approve any modification or addition that alters the grounds of the organizational licensee such that the act of live racing is an ancillary activity to electronic gaming. Electronic gaming may take place in existing structures where inter-track wagering is conducted at the race track or a facility within 300 yards of the race track in accordance with the provisions of this Act and the Illinois Horse Racing Act of 1975.

(g) With prior approval of the Illinois Gaming Board, an An electronic gaming licensee may conduct electronic gaming at a temporary facility pending the construction of a permanent facility or the remodeling or relocation of an existing facility to accommodate electronic gaming participants for up to 24 months after the temporary facility begins to conduct electronic gaming. Upon request by an electronic gaming licensee and upon a showing of good cause by the electronic gaming licensee, the Board shall extend the period during which the licensee may conduct electronic gaming at a temporary facility by up to 12 months. The Board shall make rules concerning the conduct of electronic gaming from temporary facilities.

Electronic gaming may take place in existing structures where inter-track wagering is conducted at the race track or a facility within 300 yards of the race track in accordance with the provisions of this Act and the Illinois Horse Racing Act of 1975. Any electronic gaming conducted at a permanent facility within 300 yards of the race track in accordance with this Act and the Illinois Horse Racing Act of 1975 shall have an all-weather egress connecting the electronic gaming facility and the race track facility or, on days and hours of live racing, a complimentary shuttle service between the permanent electronic gaming facility and the race track facility and shall not charge electronic gaming participants an additional admission fee to the race track facility.

(h) The Illinois Gaming Board must adopt emergency rules in accordance with Section 5-45 of the Illinois Administrative Procedure Act as necessary to ensure compliance with the provisions of this amendatory Act of the 97th General Assembly concerning electronic gaming. The adoption of emergency rules authorized by this subsection (h) shall be deemed to be necessary for the public interest, safety, and welfare.

(i) Each electronic gaming licensee who obtains electronic gaming positions must make a reconciliation payment 4 years after the date the electronic gaming licensee begins operating the positions in an amount equal to 75% of the difference between its adjusted gross receipts from electronic gaming and amounts paid to its purse accounts pursuant to item (1) of subsection (b) of Section 56 of the Illinois House Racing Act of 1975 for the 12-month period for which such difference was the largest, minus an amount equal to the initial $25,000 or $12,500 per electronic gaming position initial payment. If this calculation results in a negative amount, then the electronic gaming licensee is not entitled to any reimbursement of fees previously paid. This reconciliation payment may be made in installments over a period of no more than 2 years, subject to Board approval. Any installment payments shall include an annual market interest rate as determined by the Board.

All payments by licensees under this subsection (i) shall be deposited into the Gaming Facilities Fee Revenue Fund.

(j) As soon as practical after a request is made by the Illinois Gaming Board, to minimize duplicate submissions by the applicant, the Illinois Racing Board must provide information on an applicant for an electronic gaming license to the Illinois Gaming Board.

(k) Subject to the approval of the Illinois Gaming Board, an organization licensee that has received an electronic gaming license under this Act and has operating control of a race track facility located in Cook County may relocate its race track facility as follows:

(1) the organization licensee may relocate within a 3-mile radius of its existing race track facility so long as the organization licensee remains in Cook County and submits its plan to construct a new structure to conduct electronic gaming operations; and

(2) the organization licensee may not relocate within a 5-mile radius of a riverboat if the owners license was issued prior to December 31, 2011. The relocation must include the race track facility, including the race track operations used to conduct live racing and the electronic gaming facility in its entirety. For the purposes of this subsection (k), "race track facility" means all operations conducted on the race track property for which it was awarded a license for pari-mutuel wagering and live racing in the year 2010, except for the real estate itself. The Illinois Gaming Board shall make its decision after consulting with the Illinois Racing Board, and any relocation application shall be subject to all of the provisions of this Act and the Illinois Horse Racing Act of 1975.

(Source: 09700SB1849ham002 and ham003.)

(230 ILCS 10/12) (from Ch. 120, par. 2412)

Sec. 12. Admission tax; fees.

(a) A tax is hereby imposed upon admissions to riverboat and casino gambling facilities operated by licensed owners authorized pursuant to this Act. Until July 1, 2002, the rate is $2 per person admitted. From July 1, 2002 until July 1, 2003, the rate is $3 per person admitted. From July 1, 2003 until August 23, 2005 (the effective date of Public Act 94-673), for a licensee that admitted 1,000,000 persons or fewer in the previous calendar year, the rate is $3 per person admitted; for a licensee that admitted more than 1,000,000 but no more than 2,300,000 persons in the previous calendar year, the rate is $4 per person admitted; and for a licensee that admitted more than 2,300,000 persons in the previous calendar year, the rate is $5 per person admitted. Beginning on August 23, 2005 (the effective date of Public Act 94-673), for a licensee that admitted 1,000,000 persons or fewer in calendar year 2004, the rate is $2 per person admitted, and for all other licensees, including licensees that were not conducting gambling operations in 2004, the rate is $3 per person admitted. This admission tax is imposed upon the licensed owner conducting gambling.

(1) The admission tax shall be paid for each admission, except that a person who exits a riverboat gambling facility and reenters that riverboat gambling facility within the same gaming day shall be subject only to the initial admission tax.

(2) (Blank).

(3) The riverboat licensee may issue tax-free passes to actual and necessary officials and employees of the licensee or other persons actually working on the riverboat.

(4) The number and issuance of tax-free passes is subject to the rules of the Board, and a list of all persons to whom the tax-free passes are issued shall be filed with the Board.

(a-5) A fee is hereby imposed upon admissions operated by licensed managers on behalf of the State pursuant to Section 7.3 at the rates provided in this subsection (a-5). For a licensee that admitted 1,000,000 persons or fewer in the previous calendar year, the rate is $3 per person admitted; for a licensee that admitted more than 1,000,000 but no more than 2,300,000 persons in the previous calendar year, the rate is $4 per person admitted; and for a licensee that admitted more than 2,300,000 persons in the previous calendar year, the rate is $5 per person admitted.

(1) The admission fee shall be paid for each admission.

(2) (Blank).

(3) The licensed manager may issue fee-free passes to actual and necessary officials and employees of the manager or other persons actually working on the riverboat.

(4) The number and issuance of fee-free passes is subject to the rules of the Board, and a list of all persons to whom the fee-free passes are issued shall be filed with the Board.

(b) From the tax imposed under subsection (a) and the fee imposed under subsection (a-5), a municipality that is not located in Lake County shall receive from the State $1 for each person embarking on a riverboat docked within the municipality or entering a casino located within the municipality, and a county shall receive $1 for each person entering a casino or embarking on a riverboat docked within the county but outside the boundaries of any municipality. From the tax imposed under subsection (a) and the fee imposed under subsection (a-5), a municipality located in Lake County shall receive from the State $0.50 for each person embarking on a riverboat docked within the municipality or entering a casino located within the municipality and the City of Waukegan shall receive from the State $0.50 for each person embarking on a riverboat docked within a municipality in Lake County or entering a casino located within a municipality in Lake County. The municipality's or county's share shall be collected by the Board on behalf of the State and remitted quarterly by the State, subject to appropriation, to the treasurer of the unit of local government for deposit in the general fund.

(c) The licensed owner shall pay the entire admission tax to the Board and the licensed manager or the casino operator licensee shall pay the entire admission fee to the Board. Such payments shall be made daily. Accompanying each payment shall be a return on forms provided by the Board which shall include other information regarding admissions as the Board may require. Failure to submit either the payment or the return within the specified time may result in suspension or revocation of the owners or managers license.

(c-5) A tax is imposed on admissions to electronic gaming facilities at the rate of $3 per person admitted by an electronic gaming licensee. The tax is imposed upon the electronic gaming licensee.

(1) The admission tax shall be paid for each admission, except that a person who exits an electronic gaming facility and reenters that electronic gaming facility within the same gaming day, as the term "gaming day" is defined by the Board by rule, shall be subject only to the initial admission tax. The Board shall establish, by rule, a procedure to determine whether a person admitted to an electronic gaming facility has paid the admission tax.

(2) An electronic gaming licensee may issue tax-free passes to actual and necessary officials and employees of the licensee and other persons associated with electronic gaming operations.

(3) The number and issuance of tax-free passes is subject to the rules of the Board, and a list of all persons to whom the tax-free passes are issued shall be filed with the Board.

(4) The electronic gaming licensee shall pay the entire admission tax to the Board.

Such payments shall be made daily. Accompanying each payment shall be a return on forms provided by the Board, which shall include other information regarding admission as the Board may require. Failure to submit either the payment or the return within the specified time may result in suspension or revocation of the electronic gaming license.

From the tax imposed under this subsection (c-5), a municipality other than the Village of Stickney or the City of Collinsville in which an electronic gaming facility is located, or if the electronic gaming facility is not located within a municipality, then the county in which the electronic gaming facility is located, except as otherwise provided in this Section, shall receive, subject to appropriation, $1 for each person who enters the electronic gaming facility. For each admission to the electronic gaming facility in excess of 1,500,000 in a year, from the tax imposed under this subsection (c-5), the county in which the electronic gaming facility is located shall receive, subject to appropriation, $0.30, which shall be in addition to any other moneys paid to the county under this Section.

From the tax imposed under this subsection (c-5) on an electronic gaming facility located in the Village of Stickney, $1 for each person who enters the electronic gaming facility shall be distributed as follows, subject to appropriation: $0.25 to the Village of Stickney, $.50 to the Town of Cicero, $0.05 to the City of Berwyn, and $0.20 to the Stickney Public Health District.

From the tax imposed under this subsection (c-5) on an electronic gaming facility located in the City of Collinsville, $1 for each person who enters the electronic gaming facility shall be distributed as follows, subject to appropriation: $0.45 to the City of Alton, $0.45 to the City of East St. Louis, and $0.10 to the City of Collinsville.

From the tax imposed under this subsection (c-5) on an electronic gaming facility that is located in an unincorporated area of Cook County and has been awarded standardbred racing dates during 2011 by the Illinois Racing Board, $1 for each person who enters the electronic gaming facility shall be divided equally and distributed, subject to appropriation, to the Village of Melrose Park, the Village of Maywood, and Cook County.

After payments required under this subsection (c-5) have been made, all remaining amounts shall be deposited into the Capital Projects Fund.

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

(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11; 09700SB1849ham002.)

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

Sec. 13. Wagering tax; rate; distribution.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(a-4) Beginning on the first day on which the tax imposed under subsection (a-3) is no longer imposed and ending on December 31, 2014 or when the Chicago casino begins operations, whichever is earlier upon the imposition of the privilege tax under subsection (a-5) of this Section, a privilege tax is imposed on persons engaged in the business of conducting riverboat or casino gambling or electronic gaming operations, other than licensed managers conducting riverboat gambling operations on behalf of the State, based on the adjusted gross receipts received by a licensed owner from gambling games authorized under this Act at the following rates:

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

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

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

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

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

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

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

For the imposition of the privilege tax in this subsection (a-4), amounts paid pursuant to item (1) of subsection (b) of Section 56 of the Illinois Horse Racing Act of 1975 shall not be included in the determination of adjusted gross receipts.

(a-5) Beginning on January 1, 2015 or when the Chicago casino begins operations, whichever is earlier the date when at least 500 additional gaming positions authorized by this amendatory Act of the 97th General Assembly are being used to conduct gambling operations, a privilege tax is imposed on persons engaged in the business of conducting riverboat or casino gambling or electronic gaming operations, other than licensed managers conducting riverboat gambling operations on behalf of the State, based on the adjusted gross receipts received by such licensee from the gambling games authorized under this Act. The privilege tax for all gambling games other than table games, including, but not limited to, slot machines, video game of chance gambling, and electronic gambling games shall be at the following rates:

10% of annual adjusted gross receipts up to and including $25,000,000;

17.5% of annual adjusted gross receipts in excess of $25,000,000 but not exceeding $50,000,000;

22.5% of annual adjusted gross receipts in excess of $50,000,000 but not exceeding $75,000,000;

27.5% of annual adjusted gross receipts in excess of $75,000,000 but not exceeding $100,000,000;

32.5% of annual adjusted gross receipts in excess of $100,000,000 but not exceeding $150,000,000;

35% of annual adjusted gross receipts in excess of $150,000,000 but not exceeding $200,000,000;

40% of annual adjusted gross receipts in excess of $200,000,000 but not exceeding $300,000,000;

30% of annual adjusted gross receipts in excess of $300,000,000 but not exceeding $350,000,000;

20% of annual adjusted gross receipts in excess of $350,000,000.

The privilege tax for table games shall be at the following rates:

10% of annual adjusted gross receipts up to and including $25,000,000;

17.5% of annual adjusted gross receipts in excess of $25,000,000 but not exceeding $50,000,000;

22.5% of annual adjusted gross receipts in excess of $50,000,000 but not exceeding $70,000,000;

16% of annual adjusted gross receipts in excess of $70,000,000.

For the imposition of the privilege tax in this subsection (a-5), amounts paid pursuant to item (1) of subsection (b) of Section 56 of the Illinois Horse Racing Act of 1975 shall not be included in the determination of adjusted gross receipts.

(a-6) From the effective date of this amendatory Act of the 97th General Assembly until June 30, 2015, an owners licensee that conducted gambling operations prior to January 1, 2011 shall receive a dollar-for-dollar credit against the tax imposed under this Section for any renovation or construction costs paid by the owners licensee, but in no event shall the credit exceed $2,000,000.

Additionally, from the effective date of this amendatory Act of the 97th General Assembly until December 31, 2014, an owners licensee that (i) is located within 15 miles of the Missouri border, and (ii) has at least 3 riverboats, casinos, or their equivalent within a 45-mile radius, may be authorized to relocate to a new location with the approval of both the unit of local government designated as the home dock and the Board, so long as the new location is within the same unit of local government and no more than 3 miles away from its original location. Such owners licensee shall receive a credit against the tax imposed under this Section equal to 8% of the total project costs, as approved by the Board, for any renovation or construction costs paid by the owners licensee for the construction of the new facility, provided that the new facility is operational by July 1, 2014. In determining whether or not to approve a relocation, the Board must consider the extent to which the relocation will diminish the gaming revenues received by other Illinois gaming facilities.

(a-7) From January 1, 2013 until December 31, 2022, if the total obligation imposed pursuant to subsections (a-4) and (a-5) will result in an owners licensee receiving less after-tax adjusted gross receipts than it received in calendar year 2012, then the total amount of privilege taxes that such owners licensee is required to pay for that calendar year shall be reduced to the extent necessary, not to exceed 5% of adjusted gross receipts in that calendar year, so that the after-tax adjusted gross receipts in that calendar year equals the after-tax adjusted gross receipts in calendar year 2012. If pursuant to this subsection (a-7), the total obligation imposed pursuant to subsections (a-4) and (a-5) shall be reduced, then the owners licensee shall not receive a refund from the State at the end of the subject calendar year but instead shall be able to apply that amount as a credit against any payments it owes to the State in the following calendar year to satisfy its total obligation under subsection (a-5).

For purposes of this subsection (a-7), "after-tax adjusted gross receipts" means, for calendar year 2012, the adjusted gross receipts less privilege taxes paid to the State and for subsequent calendar years, the adjusted gross receipts less privilege taxes paid to the State, then divided by the owners licensee's average number of gaming positions operating in that calendar year and then multiplied by the owners licensee's average number of gaming positions operating in calendar year 2012. This subsection (a-7) does not apply to any owners licensees authorized pursuant to subsection (e-5) of Section 7 of this Act.

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

(a-9) Beginning on January 1, 2012, the calculation of gross receipts or adjusted gross receipts, for the purposes of this Section, for a riverboat, casino, or electronic gaming facility shall not include the dollar amount of non-cashable vouchers, coupons, and electronic promotions redeemed by wagerers upon the riverboat, in the casino, or in the electronic gaming facility up to and including an amount not to exceed 30% of a riverboat casino or electronic gaming facility's adjusted gross receipts.

The Illinois Gaming Board shall submit to the General Assembly a comprehensive report no later than March 31, 2015 detailing, at a minimum, the effect of removing non-cashable vouchers, coupons, and electronic promotions from this calculation on net gaming revenues to the State in calendar years 2012 through 2014, the increase or reduction in wagerers as a result of removing non-cashable vouchers, coupons, and electronic promotions from this calculation, the effect of the tax rates in subsection (a-5) on net gaming revenues to the State, and proposed modifications to the calculation.

(a-10) The taxes imposed by this Section shall be paid by the licensed owner or the electronic gaming licensee to the Board not later than 5:00 o'clock p.m. of the day after the day when the wagers were made.

(a-15) If the privilege tax imposed under subsection (a-3) is no longer imposed pursuant to item (i) of the last paragraph of subsection (a-3), then by June 15 of each year, each owners licensee, other than an owners licensee that admitted 1,000,000 persons or fewer in calendar year 2004, must, in addition to the payment of all amounts otherwise due under this Section, pay to the Board a reconciliation payment in the amount, if any, by which the licensed owner's base amount exceeds the amount of net privilege tax paid by the licensed owner to the Board in the then current State fiscal year. A licensed owner's net privilege tax obligation due for the balance of the State fiscal year shall be reduced up to the total of the amount paid by the licensed owner in its June 15 reconciliation payment. The obligation imposed by this subsection (a-15) is binding on any person, firm, corporation, or other entity that acquires an ownership interest in any such owners license. The obligation imposed under this subsection (a-15) terminates on the earliest of: (i) July 1, 2007, (ii) the first day after the effective date of this amendatory Act of the 94th General Assembly that riverboat gambling operations are conducted pursuant to a dormant license, (iii) the first day that riverboat gambling operations are conducted under the authority of an owners license that is in addition to the 10 owners licenses initially authorized under this Act, or (iv) the first day that a licensee under the Illinois Horse Racing Act of 1975 conducts gaming operations with slot machines or other electronic gaming devices. The Board must reduce the obligation imposed under this subsection (a-15) by an amount the Board deems reasonable for any of the following reasons: (A) an act or acts of God, (B) an act of bioterrorism or terrorism or a bioterrorism or terrorism threat that was investigated by a law enforcement agency, or (C) a condition beyond the control of the owners licensee that does not result from any act or omission by the owners licensee or any of its agents and that poses a hazardous threat to the health and safety of patrons. If an owners licensee pays an amount in excess of its liability under this Section, the Board shall apply the overpayment to future payments required under this Section.

For purposes of this subsection (a-15):

"Act of God" means an incident caused by the operation of an extraordinary force that cannot be foreseen, that cannot be avoided by the exercise of due care, and for which no person can be held liable.

"Base amount" means the following:

For a riverboat in Alton, $31,000,000.

For a riverboat in East Peoria, $43,000,000.

For the Empress riverboat in Joliet, $86,000,000.

For a riverboat in Metropolis, $45,000,000.

For the Harrah's riverboat in Joliet, $114,000,000.

For a riverboat in Aurora, $86,000,000.

For a riverboat in East St. Louis, $48,500,000.

For a riverboat in Elgin, $198,000,000.

"Dormant license" has the meaning ascribed to it in subsection (a-3).

"Net privilege tax" means all privilege taxes paid by a licensed owner to the Board under this Section, less all payments made from the State Gaming Fund pursuant to subsection (b) of this Section.

The changes made to this subsection (a-15) by Public Act 94-839 are intended to restate and clarify the intent of Public Act 94-673 with respect to the amount of the payments required to be made under this subsection by an owners licensee to the Board.

(b) Until January 1, 1998, 25% of the tax revenue deposited in the State Gaming Fund under this Section shall be paid, subject to appropriation by the General Assembly, to the unit of local government which is designated as the home dock of the riverboat. Beginning January 1, 1998, from the tax revenue from riverboat or casino gambling deposited in the State Gaming Fund under this Section, an amount equal to 5% of adjusted gross receipts generated by a riverboat or a casino shall be paid monthly, subject to appropriation by the General Assembly, to the unit of local government that is designated as the home dock of the riverboat, so long as the unit of local government is not located in Lake County. From the tax revenue from riverboat or casino gambling that is conducted in Lake County and deposited in the State Gaming Fund under this Section, an amount equal to 5% of the adjusted gross receipts generated by a riverboat or a casino shall be paid monthly, subject to appropriation by the General Assembly, as follows: 25% to the City of Park City, 50% to the City of Waukegan, and 25% to the City of North Chicago. From the tax revenue deposited in the State Gaming Fund pursuant to riverboat or casino gambling operations conducted by a licensed manager on behalf of the State, an amount equal to 5% of adjusted gross receipts generated pursuant to those riverboat or casino gambling operations shall be paid monthly, subject to appropriation by the General Assembly, to the unit of local government that is designated as the home dock of the riverboat upon which those riverboat gambling operations are conducted or in which the casino is located. Units of local government may refund any portion of the payment that they receive pursuant to this subsection (b) to the riverboat or casino.

(b-1) Beginning on the effective date of this amendatory Act of the 97th General Assembly, from the tax revenue deposited in the State Gaming Fund under this Section, $75,000,000 shall be deposited annually into the Fund for the Advancement of Education for the purpose of providing resources to the Monetary Award Program. Notwithstanding any other provision of this Act to the contrary, the deposits under this subparagraph (b-1) shall be made before any other deposits referenced in subparagraphs (b) and (c) of this Section 13.

(b-2) Beginning on the effective date of this amendatory Act of the 97th General Assembly, from the tax revenue deposited in the State Gaming Fund under this Section, $750,000 shall be paid annually, subject to appropriation, to Lake County.

(b-4) Beginning on August 1, 2011 and ending on July 31, 2042, from the tax revenue deposited in the State Gaming Fund under this Section, $4,000,000 shall be paid annually, subject to appropriation, to the host municipality of an owners licensee of a license issued or re-issued pursuant to Section 7.1 of this Act before January 1, 2012. Payments received by the host municipality pursuant to this subsection (b-4) may not be shared with any other unit of local government.

(b-5) Beginning on the effective date of this amendatory Act of the 97th General Assembly, from the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to 3% of adjusted gross receipts generated by each electronic gaming facility located outside Madison County shall be paid monthly, subject to appropriation by the General Assembly, to a municipality other than the Village of Stickney in which each electronic gaming facility is located or, if the electronic gaming facility is not located within a municipality, to the county in which the electronic gaming facility is located, except as otherwise provided in this Section. From the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to 3% of adjusted gross receipts generated by each electronic gaming facility that is located in an unincorporated area of Cook County and has been awarded standardbred racing dates during 2011 by the Illinois Racing Board shall be divided equally and distributed, subject to appropriation, to the Village of Melrose Park, the Village of Maywood, and Cook County. From the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to 3% of adjusted gross receipts generated by an electronic gaming facility located in the Village of Stickney shall be paid monthly, subject to appropriation by the General Assembly, as follows: 25% to the Village of Stickney, 5% to the City of Berwyn, 50% to the Town of Cicero, and 20% to the Stickney Public Health District.

From the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to 3% of adjusted gross receipts generated by an electronic gaming facility located in the City of Collinsville shall be paid monthly, subject to appropriation by the General Assembly, as follows: 45% to the City of Alton, 45% to the City of East St. Louis, and 10% to the City of Collinsville.

Beginning on the effective date of this amendatory Act of the 97th General Assembly, from the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to (i) 1% of adjusted gross receipts generated by an electronic gaming facility located in Madison County shall be paid monthly, subject to appropriation by the General Assembly, to Madison County for the purposes of infrastructure improvements, and (ii) 1% of adjusted gross receipts generated by an electronic gaming facility located in Madison County shall be paid monthly, subject to appropriation by the General Assembly, to St. Clair County for the purposes of infrastructure improvements.

Municipalities and counties may refund any portion of the payment that they receive pursuant to this subsection (b-5) to the electronic gaming facility.

(b-6) Beginning on the effective date of this amendatory Act of the 97th General Assembly, from the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to 2% of adjusted gross receipts generated by an electronic gaming facility located outside Madison County shall be paid monthly, subject to appropriation by the General Assembly, to the county in which the electronic gaming facility is located for the purposes of its criminal justice system or health care system.

Counties may refund any portion of the payment that they receive pursuant to this subsection (b-6) to the electronic gaming facility.

(b-7) The State and County Fair Assistance Fund is created as a special fund in the State treasury. The Fund shall be administered by the Department of Agriculture. Beginning on the effective date of this amendatory Act of the 97th General Assembly, from the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to 2% of adjusted gross receipts, not to exceed $6,000,000, shall be paid into the State and County Fair Assistance Fund annually. No moneys shall be expended from the State and County Fair Assistance Fund except as appropriated by the General Assembly. Deposits made pursuant to this subsection (b-7) shall supplement, and not supplant, other State funding for these purposes.

The Department of Agriculture shall award grants from moneys appropriated from the State and County Fair Assistance Fund for the development, expansion, or support of county fairs that showcase Illinois agriculture products or byproducts. No grant may exceed $100,000, except for an annual grant of $1,000,000 that shall be made to the Illinois Standardbred Breeders Fund and used for Illinois-bred harness racing purses and the Illinois State Fair race track. Not more than one grant under this Section may be made to any one county fair board. Additionally, grants under this subsection (b-7) shall be available to the Illinois State Fair and the DuQuoin State Fair.

(b-8) Beginning on the effective date of this amendatory Act of the 97th General Assembly, from the tax revenue deposited in the State Gaming Fund under this Section, $250,000 shall be deposited annually into the Illinois Racing Quarter Horse Breeders Fund.

(b-10) Beginning on the effective date of this amendatory Act of the 97th General Assembly, from the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to 10% of the wagering taxes paid by the riverboats and casino created pursuant to subsection (e-5) of Section 7 shall be paid into the Depressed Communities Economic Development Fund annually.

(b-11) Beginning on the effective date of this amendatory Act of the 97th General Assembly, from the tax revenue deposited in the State Gaming Fund under this Section, $150,000 shall be paid annually to a county forest preserve district for the maintenance of a botanic garden that was created by Section 43 of the Cook County Forest Preserve District Act.

(b-12) Beginning on the effective date of this amendatory Act of the 97th General Assembly, from the tax revenue deposited in the State Gaming Fund from electronic gaming under this Section, (i) $12,500,000 shall be deposited annually into the Partners for Conservation Fund for grants to soil and water conservation districts, (ii) $1,500,000 shall be deposited annually into the Illinois Forestry Fund for costs associated with the CREP Forestry Assistance Program, (iii) $3,000,000 shall be deposited annually into the Illinois Historic Sites Fund for costs associated with the State's historic sites, (iv) $3,000,000 shall be deposited annually into the Parks and Conservation Fund for costs associated with the State's state parks, (v) $5,000,000 shall be deposited annually into the State Cooperative Service Trust Fund for grants to the State's cooperative extensions, and (vi) $6,000,000 shall be deposited annually into the Future of Agriculture Fund. Deposits made pursuant to this subsection (b-12) shall supplement, and not supplant, other State funding for these purposes.

(b-15) Beginning on the effective date of this amendatory Act of the 97th General Assembly and ending July 1, 2014, from the tax revenue deposited in the State Gaming Fund under this Section, $2,000,000 shall be deposited annually into the Foreclosure Prevention Program Fund.

(b-20) From January 1, 2013 until December 31, 2015, if the total amount paid to the Education Assistance Fund annually pursuant to this Act will result in the Education Assistance Fund receiving less revenue from the State Gaming Fund than it received in calendar year 2011, an amount equal to that shortfall shall be transferred from the Capital Projects Fund to the Education Assistance Fund, except that no such transfer shall exceed the amount deposited into the Capital Projects Fund pursuant to subsection (c-4) of this Section.

(c) Appropriations, as approved by the General Assembly, may be made from the State Gaming Fund to the Board (i) for the administration and enforcement of this Act and the Video Gaming Act, (ii) for distribution to the Department of State Police and to the Department of Revenue for the enforcement of this Act, and (iii) to the Department of Human Services for the administration of programs to treat problem gambling. From the tax revenue deposited in the State Gaming Fund under this Section, $10,000,000 shall be paid annually to the Department of Human Services for the administration of programs to treat problem gambling. The Board's annual appropriations request must separately state its funding needs for the regulation of electronic gaming, riverboat gaming, casino gaming within the City of Chicago, and video gaming. From the tax revenue deposited in the Gaming Facilities Fee Revenue Fund, the first $50,000,000 shall be paid to the Board, subject to appropriation, for the administration and enforcement of the provisions of this amendatory Act of the 97th General Assembly.

(c-3) Appropriations, as approved by the General Assembly, may be made from the tax revenue deposited into the State Gaming Fund from electronic gaming pursuant to this Section for the administration and enforcement of this Act.

(c-4) After payments required under subsection (b-5), (b-6), (b-7), (b-8), (b-10), (b-11), (b-12), (c), and (c-3) have been made from the tax revenue from electronic gaming deposited into the State Gaming Fund under this Section, all remaining amounts from electronic gaming shall be deposited into the Capital Projects Fund.

(c-5) (Blank).

(c-10) (Blank).

(c-15) After the payments required under subsections (b), (b-5), (b-6), (b-7), (b-8), (b-10), (b-11), (b-12), and (c) have been made, an amount equal to 2% of the adjusted gross receipts of (1) an owners licensee that relocates pursuant to Section 11.2, (2) an owners licensee conducting riverboat gambling operations pursuant to an owners license that is initially issued after June 25, 1999 and before December 31, 2011, or (3) the first riverboat gambling operations conducted by a licensed manager on behalf of the State under Section 7.3, whichever comes first, shall be paid, subject to appropriation from the General Assembly, from the State Gaming Fund to each home rule county with a population of over 3,000,000 inhabitants for the purpose of enhancing the county's criminal justice system.

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

(c-25) After the payments required under subsections (b), (b-5), (b-6), (b-7), (b-8), (b-10), (b-11), (b-12), (c), and (c-15) have been made, an amount equal to 2% of the adjusted gross receipts of (1) an owners licensee that relocates pursuant to Section 11.2, (2) an owners licensee conducting riverboat gambling operations pursuant to an owners license that is initially issued after June 25, 1999 and before December 31, 2011, or (3) the first riverboat gambling operations conducted by a licensed manager on behalf of the State under Section 7.3, whichever comes first, shall be paid from the State Gaming Fund to Chicago State University.

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

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

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

(Source: P.A. 95-331, eff. 8-21-07; 95-1008, eff. 12-15-08; 96-37, eff. 7-13-09; 96-1392, eff. 1-1-11; 09700SB1849ham002 and ham003.)

Section 99. Effective date. This Act takes effect upon becoming law or on the effective date of Senate Bill 1849 of the 97th General Assembly, whichever is later.