Full Text of HB1545 95th General Assembly
HB1545 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB1545
Introduced 2/22/2007, by Rep. Dave Winters SYNOPSIS AS INTRODUCED: |
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230 ILCS 10/7 |
from Ch. 120, par. 2407 |
230 ILCS 10/7.5 |
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Amends the Riverboat Gambling Act. Requires that any license authorizing the conduct of gambling under the Act issued by the Illinois Gaming Board after the effective date must be issued pursuant to the competitive bidding process contained in the Act. Effective immediately.
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A BILL FOR
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HB1545 |
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LRB095 10018 AMC 30232 b |
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| AN ACT concerning gaming.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Riverboat Gambling Act is amended by | 5 |
| changing Sections 7 and 7.5 as follows:
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| (230 ILCS 10/7) (from Ch. 120, par. 2407)
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| Sec. 7. Owners Licenses.
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| (a) The Board shall issue owners licenses to persons, firms | 9 |
| or
corporations which apply for such licenses upon payment to | 10 |
| the Board of the
non-refundable license fee set by the Board, | 11 |
| upon payment of a $25,000
license fee for the first year of | 12 |
| operation and a $5,000 license fee for
each succeeding year and | 13 |
| upon a determination by the Board that the
applicant is | 14 |
| eligible for an owners license pursuant to this Act and the
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| rules of the Board. For a period of 2 years beginning on the | 16 |
| effective date of this amendatory Act of the 94th General | 17 |
| Assembly, as a condition of licensure and as an alternative | 18 |
| source of payment for those funds payable under subsection | 19 |
| (c-5) of Section 13 of the Riverboat Gambling Act, any owners | 20 |
| licensee that holds or receives its owners license on or after | 21 |
| the effective date of this amendatory Act of the 94th General | 22 |
| Assembly, other than an owners licensee operating a riverboat | 23 |
| with adjusted gross receipts in calendar year 2004 of less than |
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| $200,000,000, must pay into the Horse Racing Equity Trust Fund, | 2 |
| in addition to any other payments required under this Act, an | 3 |
| amount equal to 3% of the adjusted gross receipts received by | 4 |
| the owners licensee. The payments required under this Section | 5 |
| shall be made by the owners licensee to the State Treasurer no | 6 |
| later than 3:00 o'clock p.m. of the day after the day when the | 7 |
| adjusted gross receipts were received by the owners licensee. A | 8 |
| person, firm or corporation is ineligible to receive
an owners | 9 |
| license if:
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| (1) the person has been convicted of a felony under the | 11 |
| laws of this
State, any other state, or the United States;
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| (2) the person has been convicted of any violation of | 13 |
| Article 28 of the
Criminal Code of 1961, or substantially | 14 |
| similar laws of any other jurisdiction;
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| (3) the person has submitted an application for a | 16 |
| license under this
Act which contains false information;
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| (4) the person is
a member of the Board;
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| (5) a person defined in (1), (2), (3) or (4) is an | 19 |
| officer, director or
managerial employee of the firm or | 20 |
| corporation;
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| (6) the firm or corporation employs a person defined in | 22 |
| (1), (2), (3) or
(4) who participates in the management or | 23 |
| operation of gambling operations
authorized under this | 24 |
| Act;
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| (7) (blank); or
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| (8) a license of the person, firm or corporation issued |
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| under
this Act, or a license to own or operate gambling | 2 |
| facilities
in any other jurisdiction, has been revoked.
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| (b) In determining whether to grant an owners license to an | 4 |
| applicant, the
Board shall consider:
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| (1) the character, reputation, experience and | 6 |
| financial integrity of the
applicants and of any other or | 7 |
| separate person that either:
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| (A) controls, directly or indirectly, such | 9 |
| applicant, or
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| (B) is controlled, directly or indirectly, by such | 11 |
| applicant or by a
person which controls, directly or | 12 |
| indirectly, such applicant;
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| (2) the facilities or proposed facilities for the | 14 |
| conduct of riverboat
gambling;
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| (3) the highest prospective total revenue to be derived | 16 |
| by the State
from the conduct of riverboat gambling;
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| (4) the extent to which the ownership of the applicant | 18 |
| reflects the
diversity of the State by including minority | 19 |
| persons and females
and the good faith affirmative action | 20 |
| plan of
each applicant to recruit, train and upgrade | 21 |
| minority persons and females in all employment | 22 |
| classifications;
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| (5) the financial ability of the applicant to purchase | 24 |
| and maintain
adequate liability and casualty insurance;
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| (6) whether the applicant has adequate capitalization | 26 |
| to provide and
maintain, for the duration of a license, a |
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| riverboat;
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| (7) the extent to which the applicant exceeds or meets | 3 |
| other standards
for the issuance of an owners license which | 4 |
| the Board may adopt by rule;
and
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| (8) The amount of the applicant's license bid.
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| (c) Each owners license shall specify the place where | 7 |
| riverboats shall
operate and dock.
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| (d) Each applicant shall submit with his application, on | 9 |
| forms
provided by the Board, 2 sets of his fingerprints.
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| (e) The Board may issue up to 10 licenses authorizing the | 11 |
| holders of such
licenses to own riverboats. In the application | 12 |
| for an owners license, the
applicant shall state the dock at | 13 |
| which the riverboat is based and the water
on which the | 14 |
| riverboat will be located. The Board shall issue 5 licenses to
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| become effective not earlier than January 1, 1991. Three of | 16 |
| such licenses
shall authorize riverboat gambling on the | 17 |
| Mississippi River, or, with approval
by the municipality in | 18 |
| which the
riverboat was docked on August 7, 2003 and with Board | 19 |
| approval, be authorized to relocate to a new location,
in a
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| municipality that (1) borders on the Mississippi River or is | 21 |
| within 5
miles of the city limits of a municipality that | 22 |
| borders on the Mississippi
River and (2), on August 7, 2003, | 23 |
| had a riverboat conducting riverboat gambling operations | 24 |
| pursuant to
a license issued under this Act; one of which shall | 25 |
| authorize riverboat
gambling from a home dock in the city of | 26 |
| East St. Louis. One other license
shall
authorize riverboat |
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| gambling on
the Illinois River south of Marshall County. The | 2 |
| Board shall issue one
additional license to become effective | 3 |
| not earlier than March 1, 1992, which
shall authorize riverboat | 4 |
| gambling on the Des Plaines River in Will County.
The Board may | 5 |
| issue 4 additional licenses to become effective not
earlier | 6 |
| than
March 1, 1992. In determining the water upon which | 7 |
| riverboats will operate,
the Board shall consider the economic | 8 |
| benefit which riverboat gambling confers
on the State, and | 9 |
| shall seek to assure that all regions of the State share
in the | 10 |
| economic benefits of riverboat gambling.
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| In granting all licenses, the Board may give favorable | 12 |
| consideration to
economically depressed areas of the State, to | 13 |
| applicants presenting plans
which provide for significant | 14 |
| economic development over a large geographic
area, and to | 15 |
| applicants who currently operate non-gambling riverboats in
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| Illinois.
The Board shall review all applications for owners | 17 |
| licenses,
and shall inform each applicant of the Board's | 18 |
| decision.
The Board may grant an owners license to an
applicant | 19 |
| that has not submitted the highest license bid, but if it does | 20 |
| not
select the highest bidder, the Board shall issue a written | 21 |
| decision explaining
why another
applicant was selected and | 22 |
| identifying the factors set forth in this Section
that favored | 23 |
| the winning bidder.
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| In addition to any other revocation powers granted to the | 25 |
| Board under this
Act,
the Board may revoke the owners license | 26 |
| of a licensee which fails
to begin conducting gambling within |
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| 15 months
of receipt of the
Board's approval of the application | 2 |
| if the Board determines that license
revocation is in the best | 3 |
| interests of the State.
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| (e-5) Any license authorizing the conduct of gambling under | 5 |
| this Act issued by the Board after the effective date of this | 6 |
| amendatory Act of the 95th General Assembly must be issued | 7 |
| pursuant to the competitive bidding process contained in | 8 |
| Section 7.5 of this Act.
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| (f) The first 10 owners licenses issued under this Act | 10 |
| shall permit the
holder to own up to 2 riverboats and equipment | 11 |
| thereon
for a period of 3 years after the effective date of the | 12 |
| license. Holders of
the first 10 owners licenses must pay the | 13 |
| annual license fee for each of
the 3
years during which they | 14 |
| are authorized to own riverboats.
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| (g) Upon the termination, expiration, or revocation of each | 16 |
| of the first
10 licenses, which shall be issued for a 3 year | 17 |
| period, all licenses are
renewable annually upon payment of the | 18 |
| fee and a determination by the Board
that the licensee | 19 |
| continues to meet all of the requirements of this Act and the
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| Board's rules.
However, for licenses renewed on or after May 1, | 21 |
| 1998, renewal shall be
for a period of 4 years, unless the | 22 |
| Board sets a shorter period.
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| (h) An owners license shall entitle the licensee to own up | 24 |
| to 2
riverboats. A licensee shall limit the number of gambling | 25 |
| participants to
1,200 for any such owners license.
A licensee | 26 |
| may operate both of its riverboats concurrently, provided that |
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| the
total number of gambling participants on both riverboats | 2 |
| does not exceed
1,200. Riverboats licensed to operate on the
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| Mississippi River and the Illinois River south of Marshall | 4 |
| County shall
have an authorized capacity of at least 500 | 5 |
| persons. Any other riverboat
licensed under this Act shall have | 6 |
| an authorized capacity of at least 400
persons.
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| (i) A licensed owner is authorized to apply to the Board | 8 |
| for and, if
approved therefor, to receive all licenses from the | 9 |
| Board necessary for the
operation of a riverboat, including a | 10 |
| liquor license, a license
to prepare and serve food for human | 11 |
| consumption, and other necessary
licenses. All use, occupation | 12 |
| and excise taxes which apply to the sale of
food and beverages | 13 |
| in this State and all taxes imposed on the sale or use
of | 14 |
| tangible personal property apply to such sales aboard the | 15 |
| riverboat.
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| (j) The Board may issue or re-issue a license authorizing a | 17 |
| riverboat to
dock
in a municipality or approve a relocation | 18 |
| under Section 11.2 only if, prior
to the issuance or | 19 |
| re-issuance of
the license or approval, the governing body of | 20 |
| the municipality in which
the riverboat will dock has by a | 21 |
| majority vote approved the docking of
riverboats in the | 22 |
| municipality. The Board may issue or re-issue a license
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| authorizing a
riverboat to dock in areas of a county outside | 24 |
| any municipality or approve a
relocation under Section 11.2 | 25 |
| only if, prior to the issuance or re-issuance
of the license
or | 26 |
| approval, the
governing body of the county has by a majority |
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| vote approved of the docking of
riverboats within such areas.
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| (Source: P.A. 93-28, eff. 6-20-03; 93-453, eff. 8-7-03; 94-667, | 3 |
| eff. 8-23-05; 94-804, eff. 5-26-06.)
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| (230 ILCS 10/7.5)
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| Sec. 7.5. Competitive Bidding. When the Board (i) re-issues
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| determines that it will re-issue an owners license pursuant to
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| an
open and competitive bidding process, as set forth in | 8 |
| Section 7.1, (ii) issues
or that it
will issue a managers | 9 |
| license pursuant to an open and competitive bidding
process, as | 10 |
| set forth in Section 7.4, or (iii) issues a license authorizing | 11 |
| the conduct of gambling under this Act after the effective date | 12 |
| of this amendatory Act of the 95th General Assembly pursuant to
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| an
open and competitive bidding process, as provided in | 14 |
| subsection (e-5) of Section 7, the open and competitive bidding | 15 |
| process
shall adhere to the following procedures:
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| (1) The Board shall make applications for owners and | 17 |
| managers
licenses available to the public and allow a | 18 |
| reasonable time for applicants to
submit applications to the | 19 |
| Board.
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| (2) During the filing period for owners or managers license | 21 |
| applications,
the
Board may retain the services of an | 22 |
| investment banking firm to assist the Board
in conducting the | 23 |
| open and competitive bidding process.
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| (3) After receiving all of the bid proposals, the Board | 25 |
| shall open all of
the
proposals in a public forum and disclose |
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| the prospective owners or managers
names, venture partners, if | 2 |
| any, and, in the case of applicants for owners
licenses, the | 3 |
| locations of the proposed development sites.
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| (4) The Board shall summarize the terms of the proposals | 5 |
| and may make this
summary available to the public.
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| (5) The Board shall evaluate the proposals within a | 7 |
| reasonable time and
select no
more than 3 final applicants to | 8 |
| make presentations of their
proposals to the Board.
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| (6) The final applicants shall make their presentations to | 10 |
| the
Board on
the same day during an open session of the Board.
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| (7) As soon as practicable after the public presentations | 12 |
| by the final
applicants,
the Board, in its
discretion, may | 13 |
| conduct further negotiations among the 3 final applicants.
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| During such negotiations, each final applicant may increase its | 15 |
| license bid or
otherwise enhance its bid proposal. At the | 16 |
| conclusion of such
negotiations, the Board shall
select the | 17 |
| winning proposal. In the case of negotiations for
an owners | 18 |
| license, the Board may, at the conclusion of such negotiations,
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| make the determination allowed under Section 7.3(a).
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| (8) Upon selection of a winning bid, the Board shall | 21 |
| evaluate the winning
bid
within a reasonable period of time for | 22 |
| licensee suitability in accordance with
all applicable | 23 |
| statutory and regulatory criteria.
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| (9) If the winning bidder is unable or otherwise fails to
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| consummate the transaction, (including if the Board determines | 26 |
| that the winning
bidder does not satisfy the suitability |
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| requirements), the Board may, on the
same criteria, select from | 2 |
| the remaining bidders or make the determination
allowed under | 3 |
| Section 7.3(a).
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| (Source: P.A. 93-28, eff. 6-20-03.)
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| Section 99. Effective date. This Act takes effect upon | 6 |
| becoming law.
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