Full Text of SB0584 103rd General Assembly
SB0584sam002 103RD GENERAL ASSEMBLY | Sen. Bill Cunningham Filed: 10/24/2023 | | 10300SB0584sam002 | | LRB103 03056 MXP 64942 a |
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| 1 | | AMENDMENT TO SENATE BILL 584
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 584, AS AMENDED, | 3 | | with reference to page and line numbers of Senate Amendment | 4 | | No. 1, by replacing line 3 on page 3 through line 14 on page 14 | 5 | | with the following: | 6 | | "(230 ILCS 10/7) (from Ch. 120, par. 2407) | 7 | | Sec. 7. Owners licenses. (a) The Board shall issue | 8 | | owners licenses to persons or entities that apply for such | 9 | | licenses upon payment to the Board of the non-refundable | 10 | | license fee as provided in subsection (e) or (e-5) and upon a | 11 | | determination by the Board that the applicant is eligible for | 12 | | an owners license pursuant to this Act and the rules of the | 13 | | Board. From December 15, 2008 (the effective date of Public | 14 | | Act 95-1008) until (i) 3 years after December 15, 2008 (the | 15 | | effective date of Public Act 95-1008), (ii) the date any | 16 | | organization licensee begins to operate a slot machine or | 17 | | video game of chance under the Illinois Horse Racing Act of |
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| 1 | | 1975 or this Act, (iii) the date that payments begin under | 2 | | subsection (c-5) of Section 13 of this Act, (iv) the wagering | 3 | | tax imposed under Section 13 of this Act is increased by law to | 4 | | reflect a tax rate that is at least as stringent or more | 5 | | stringent than the tax rate contained in subsection (a-3) of | 6 | | Section 13, or (v) when an owners licensee holding a license | 7 | | issued pursuant to Section 7.1 of this Act begins conducting | 8 | | gaming, whichever occurs first, as a condition of licensure | 9 | | and as an alternative source of payment for those funds | 10 | | payable under subsection (c-5) of Section 13 of this Act, any | 11 | | owners licensee that holds or receives its owners license on | 12 | | or after May 26, 2006 (the effective date of Public Act | 13 | | 94-804), other than an owners licensee operating a riverboat | 14 | | with adjusted gross receipts in calendar year 2004 of less | 15 | | than $200,000,000, must pay into the Horse Racing Equity Trust | 16 | | Fund, in addition to any other payments required under this | 17 | | Act, an amount equal to 3% of the adjusted gross receipts | 18 | | received by the owners licensee. The payments required under | 19 | | this Section shall be made by the owners licensee to the State | 20 | | Treasurer no later than 3:00 o'clock p.m. of the day after the | 21 | | day when the adjusted gross receipts were received by the | 22 | | owners licensee. A person or entity is ineligible to receive | 23 | | an owners license if: | 24 | | (1) the person has been convicted of a felony under | 25 | | the laws of this State, any other state, or the United | 26 | | States; |
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| 1 | | (2) the person has been convicted of any violation of | 2 | | Article 28 of the Criminal Code of 1961 or the Criminal | 3 | | Code of 2012, or substantially similar laws of any other | 4 | | jurisdiction; | 5 | | (3) the person has submitted an application for a | 6 | | license under this Act which contains false information; | 7 | | (4) the person is a member of the Board; | 8 | | (5) a person defined in (1), (2), (3), or (4) is an | 9 | | officer, director, or managerial employee of the entity; | 10 | | (6) the entity employs a person defined in (1), (2), | 11 | | (3), or (4) who participates in the management or | 12 | | operation of gambling operations authorized under this | 13 | | Act; | 14 | | (7) (blank); or | 15 | | (8) a license of the person or entity issued under | 16 | | this Act, or a license to own or operate gambling | 17 | | facilities in any other jurisdiction, has been revoked. | 18 | | The Board is expressly prohibited from making changes to | 19 | | the requirement that licensees make payment into the Horse | 20 | | Racing Equity Trust Fund without the express authority of the | 21 | | Illinois General Assembly and making any other rule to | 22 | | implement or interpret Public Act 95-1008. For the purposes of | 23 | | this paragraph, "rules" is given the meaning given to that | 24 | | term in Section 1-70 of the Illinois Administrative Procedure | 25 | | Act. | 26 | | (b) In determining whether to grant an owners license to |
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| 1 | | an applicant, the Board shall consider: | 2 | | (1) the character, reputation, experience, and | 3 | | financial integrity of the applicants and of any other or | 4 | | separate person that either: | 5 | | (A) controls, directly or indirectly, such | 6 | | applicant; or | 7 | | (B) is controlled, directly or indirectly, by such | 8 | | applicant or by a person which controls, directly or | 9 | | indirectly, such applicant; | 10 | | (2) the facilities or proposed facilities for the | 11 | | conduct of gambling; | 12 | | (3) the highest prospective total revenue to be | 13 | | derived by the State from the conduct of gambling; | 14 | | (4) the extent to which the ownership of the applicant | 15 | | reflects the diversity of the State by including minority | 16 | | persons, women, and persons with a disability and the good | 17 | | faith affirmative action plan of each applicant to | 18 | | recruit, train and upgrade minority persons, women, and | 19 | | persons with a disability in all employment | 20 | | classifications; the Board shall further consider granting | 21 | | an owners license and giving preference to an applicant | 22 | | under this Section to applicants in which minority persons | 23 | | and women hold ownership interest of at least 16% and 4%, | 24 | | respectively; | 25 | | (4.5) the extent to which the ownership of the | 26 | | applicant includes veterans of service in the armed forces |
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| 1 | | of the United States, and the good faith affirmative | 2 | | action plan of each applicant to recruit, train, and | 3 | | upgrade veterans of service in the armed forces of the | 4 | | United States in all employment classifications; | 5 | | (5) the financial ability of the applicant to purchase | 6 | | and maintain adequate liability and casualty insurance; | 7 | | (6) whether the applicant has adequate capitalization | 8 | | to provide and maintain, for the duration of a license, a | 9 | | riverboat or casino; | 10 | | (7) the extent to which the applicant exceeds or meets | 11 | | other standards for the issuance of an owners license | 12 | | which the Board may adopt by rule; | 13 | | (8) the amount of the applicant's license bid; | 14 | | (9) the extent to which the applicant or the proposed | 15 | | host municipality plans to enter into revenue sharing | 16 | | agreements with communities other than the host | 17 | | municipality; | 18 | | (10) the extent to which the ownership of an applicant | 19 | | includes the most qualified number of minority persons, | 20 | | women, and persons with a disability; and | 21 | | (11) whether the applicant has entered into a fully | 22 | | executed construction project labor agreement with the | 23 | | applicable local building trades council. | 24 | | (c) Each owners license shall specify the place where the | 25 | | casino shall operate or the riverboat shall operate and dock. | 26 | | (d) Each applicant shall submit with his or her |
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| 1 | | application, on forms provided by the Board, 2 sets of his or | 2 | | her fingerprints. | 3 | | (e) In addition to any licenses authorized under | 4 | | subsection (e-5) of this Section, the Board may issue up to 10 | 5 | | licenses authorizing the holders of such licenses to own | 6 | | riverboats. In the application for an owners license, the | 7 | | applicant shall state the dock at which the riverboat is based | 8 | | and the water on which the riverboat will be located. The Board | 9 | | shall issue 5 licenses to become effective not earlier than | 10 | | January 1, 1991. Three of such licenses shall authorize | 11 | | riverboat gambling on the Mississippi River, or, with approval | 12 | | by the municipality in which the riverboat was docked on | 13 | | August 7, 2003 and with Board approval, be authorized to | 14 | | relocate to a new location, in a municipality that (1) borders | 15 | | on the Mississippi River or is within 5 miles of the city | 16 | | limits of a municipality that borders on the Mississippi River | 17 | | and (2) on August 7, 2003, had a riverboat conducting | 18 | | riverboat gambling operations pursuant to a license issued | 19 | | under this Act; one of which shall authorize riverboat | 20 | | gambling from a home dock in the city of East St. Louis; and | 21 | | one of which shall authorize riverboat gambling from a home | 22 | | dock in the City of Alton. One other license shall authorize | 23 | | riverboat gambling on the Illinois River in the City of East | 24 | | Peoria or, with Board approval, shall authorize land-based | 25 | | gambling operations anywhere within the corporate limits of | 26 | | the City of Peoria. The Board shall issue one additional |
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| 1 | | license to become effective not earlier than March 1, 1992, | 2 | | which shall authorize riverboat gambling on the Des Plaines | 3 | | River in Will County. The Board may issue 4 additional | 4 | | licenses to become effective not earlier than March 1, 1992. | 5 | | In determining the water upon which riverboats will operate, | 6 | | the Board shall consider the economic benefit which riverboat | 7 | | gambling confers on the State, and shall seek to assure that | 8 | | all regions of the State share in the economic benefits of | 9 | | riverboat gambling. | 10 | | In granting all licenses, the Board may give favorable | 11 | | consideration to economically depressed areas of the State, to | 12 | | applicants presenting plans which provide for significant | 13 | | economic development over a large geographic area, and to | 14 | | applicants who currently operate non-gambling riverboats in | 15 | | Illinois. The Board shall review all applications for owners | 16 | | licenses, and shall inform each applicant of the Board's | 17 | | decision. The Board may grant an owners license to an | 18 | | applicant that has not submitted the highest license bid, but | 19 | | if it does not select the highest bidder, the Board shall issue | 20 | | a written decision explaining why another applicant was | 21 | | selected and identifying the factors set forth in this Section | 22 | | that favored the winning bidder. The fee for issuance or | 23 | | renewal of a license pursuant to this subsection (e) shall be | 24 | | $250,000. | 25 | | (e-5) In addition to licenses authorized under subsection | 26 | | (e) of this Section: |
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| 1 | | (1) the Board may issue one owners license authorizing | 2 | | the conduct of casino gambling in the City of Chicago; | 3 | | (2) the Board may issue one owners license authorizing | 4 | | the conduct of riverboat gambling in the City of Danville; | 5 | | (3) the Board may issue one owners license authorizing | 6 | | the conduct of riverboat gambling in the City of Waukegan; | 7 | | (4) the Board may issue one owners license authorizing | 8 | | the conduct of riverboat gambling in the City of Rockford; | 9 | | (5) the Board may issue one owners license authorizing | 10 | | the conduct of riverboat gambling in a municipality that | 11 | | is wholly or partially located in one of the following | 12 | | townships of Cook County: Bloom, Bremen, Calumet, Rich, | 13 | | Thornton, or Worth Township; and | 14 | | (6) the Board may issue one owners license authorizing | 15 | | the conduct of riverboat gambling in the unincorporated | 16 | | area of Williamson County adjacent to the Big Muddy River. | 17 | | Except for the license authorized under paragraph (1), | 18 | | each application for a license pursuant to this subsection | 19 | | (e-5) shall be submitted to the Board no later than 120 days | 20 | | after June 28, 2019 (the effective date of Public Act 101-31). | 21 | | All applications for a license under this subsection (e-5) | 22 | | shall include the nonrefundable application fee and the | 23 | | nonrefundable background investigation fee as provided in | 24 | | subsection (d) of Section 6 of this Act. In the event that an | 25 | | applicant submits an application for a license pursuant to | 26 | | this subsection (e-5) prior to June 28, 2019 (the effective |
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| 1 | | date of Public Act 101-31), such applicant shall submit the | 2 | | nonrefundable application fee and background investigation fee | 3 | | as provided in subsection (d) of Section 6 of this Act no later | 4 | | than 6 months after June 28, 2019 (the effective date of Public | 5 | | Act 101-31). | 6 | | The Board shall consider issuing a license pursuant to | 7 | | paragraphs (1) through (6) of this subsection only after the | 8 | | corporate authority of the municipality or the county board of | 9 | | the county in which the riverboat or casino shall be located | 10 | | has certified to the Board the following: | 11 | | (i) that the applicant has negotiated with the | 12 | | corporate authority or county board in good faith; | 13 | | (ii) that the applicant and the corporate authority or | 14 | | county board have mutually agreed on the permanent | 15 | | location of the riverboat or casino; | 16 | | (iii) that the applicant and the corporate authority | 17 | | or county board have mutually agreed on the temporary | 18 | | location of the riverboat or casino; | 19 | | (iv) that the applicant and the corporate authority or | 20 | | the county board have mutually agreed on the percentage of | 21 | | revenues that will be shared with the municipality or | 22 | | county, if any; | 23 | | (v) that the applicant and the corporate authority or | 24 | | county board have mutually agreed on any zoning, | 25 | | licensing, public health, or other issues that are within | 26 | | the jurisdiction of the municipality or county; |
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| 1 | | (vi) that the corporate authority or county board has | 2 | | passed a resolution or ordinance in support of the | 3 | | riverboat or casino in the municipality or county; | 4 | | (vii) the applicant for a license under paragraph (1) | 5 | | has made a public presentation concerning its casino | 6 | | proposal; and | 7 | | (viii) the applicant for a license under paragraph (1) | 8 | | has prepared a summary of its casino proposal and such | 9 | | summary has been posted on a public website of the | 10 | | municipality or the county. | 11 | | At least 7 days before the corporate authority of a | 12 | | municipality or county board of the county submits a | 13 | | certification to the Board concerning items (i) through (viii) | 14 | | of this subsection, it shall hold a public hearing to discuss | 15 | | items (i) through (viii), as well as any other details | 16 | | concerning the proposed riverboat or casino in the | 17 | | municipality or county. The corporate authority or county | 18 | | board must subsequently memorialize the details concerning the | 19 | | proposed riverboat or casino in a resolution that must be | 20 | | adopted by a majority of the corporate authority or county | 21 | | board before any certification is sent to the Board. The Board | 22 | | shall not alter, amend, change, or otherwise interfere with | 23 | | any agreement between the applicant and the corporate | 24 | | authority of the municipality or county board of the county | 25 | | regarding the location of any temporary or permanent facility. | 26 | | In addition, within 10 days after June 28, 2019 (the |
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| 1 | | effective date of Public Act 101-31), the Board, with consent | 2 | | and at the expense of the City of Chicago, shall select and | 3 | | retain the services of a nationally recognized casino gaming | 4 | | feasibility consultant. Within 45 days after June 28, 2019 | 5 | | (the effective date of Public Act 101-31), the consultant | 6 | | shall prepare and deliver to the Board a study concerning the | 7 | | feasibility of, and the ability to finance, a casino in the | 8 | | City of Chicago. The feasibility study shall be delivered to | 9 | | the Mayor of the City of Chicago, the Governor, the President | 10 | | of the Senate, and the Speaker of the House of | 11 | | Representatives. Ninety days after receipt of the feasibility | 12 | | study, the Board shall make a determination, based on the | 13 | | results of the feasibility study, whether to recommend to the | 14 | | General Assembly that the terms of the license under paragraph | 15 | | (1) of this subsection (e-5) should be modified. The Board may | 16 | | begin accepting applications for the owners license under | 17 | | paragraph (1) of this subsection (e-5) upon the determination | 18 | | to issue such an owners license. | 19 | | In addition, prior to the Board issuing the owners license | 20 | | authorized under paragraph (4) of subsection (e-5), an impact | 21 | | study shall be completed to determine what location in the | 22 | | city will provide the greater impact to the region, including | 23 | | the creation of jobs and the generation of tax revenue. | 24 | | (e-10) The licenses authorized under subsection (e-5) of | 25 | | this Section shall be issued within 12 months after the date | 26 | | the license application is submitted. If the Board does not |
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| 1 | | issue the licenses within that time period, then the Board | 2 | | shall give a written explanation to the applicant as to why it | 3 | | has not reached a determination and when it reasonably expects | 4 | | to make a determination. The fee for the issuance or renewal of | 5 | | a license issued pursuant to this subsection (e-10) shall be | 6 | | $250,000. Additionally, a licensee located outside of Cook | 7 | | County shall pay a minimum initial fee of $17,500 per gaming | 8 | | position, and a licensee located in Cook County shall pay a | 9 | | minimum initial fee of $30,000 per gaming position. The | 10 | | initial fees payable under this subsection (e-10) shall be | 11 | | deposited into the Rebuild Illinois Projects Fund. If at any | 12 | | point after June 1, 2020 there are no pending applications for | 13 | | a license under subsection (e-5) and not all licenses | 14 | | authorized under subsection (e-5) have been issued, then the | 15 | | Board shall reopen the license application process for those | 16 | | licenses authorized under subsection (e-5) that have not been | 17 | | issued. The Board shall follow the licensing process provided | 18 | | in subsection (e-5) with all time frames tied to the last date | 19 | | of a final order issued by the Board under subsection (e-5) | 20 | | rather than the effective date of the amendatory Act. | 21 | | (e-15) Each licensee of a license authorized under | 22 | | subsection (e-5) of this Section shall make a reconciliation | 23 | | payment 3 years after the date the licensee begins operating | 24 | | in an amount equal to 75% of the adjusted gross receipts for | 25 | | the most lucrative 12-month period of operations, minus an | 26 | | amount equal to the initial payment per gaming position paid |
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| 1 | | by the specific licensee. Each licensee shall pay a | 2 | | $15,000,000 reconciliation fee upon issuance of an owners | 3 | | license. If this calculation results in a negative amount, | 4 | | then the licensee is not entitled to any reimbursement of fees | 5 | | previously paid. This reconciliation payment may be made in | 6 | | installments over a period of no more than 6 years. | 7 | | All payments by licensees under this subsection (e-15) | 8 | | shall be deposited into the Rebuild Illinois Projects Fund. | 9 | | (e-20) In addition to any other revocation powers granted | 10 | | to the Board under this Act, the Board may revoke the owners | 11 | | license of a licensee which fails to begin conducting gambling | 12 | | within 15 months of receipt of the Board's approval of the | 13 | | application if the Board determines that license revocation is | 14 | | in the best interests of the State. | 15 | | (f) The first 10 owners licenses issued under this Act | 16 | | shall permit the holder to own up to 2 riverboats and equipment | 17 | | thereon for a period of 3 years after the effective date of the | 18 | | license. Holders of the first 10 owners licenses must pay the | 19 | | annual license fee for each of the 3 years during which they | 20 | | are authorized to own riverboats. | 21 | | (g) Upon the termination, expiration, or revocation of | 22 | | each of the first 10 licenses, which shall be issued for a | 23 | | 3-year period, all licenses are renewable annually upon | 24 | | payment of the fee and a determination by the Board that the | 25 | | licensee continues to meet all of the requirements of this Act | 26 | | and the Board's rules. However, for licenses renewed on or |
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| 1 | | after the effective date of this amendatory Act of the 102nd | 2 | | General Assembly, renewal shall be for a period of 4 years. | 3 | | (h) An owners license, except for an owners license issued | 4 | | under subsection (e-5) of this Section, shall entitle the | 5 | | licensee to own up to 2 riverboats. | 6 | | An owners licensee of a casino or riverboat that is | 7 | | located in the City of Chicago pursuant to paragraph (1) of | 8 | | subsection (e-5) of this Section shall limit the number of | 9 | | gaming positions to 4,000 for such owner. An owners licensee | 10 | | authorized under subsection (e) or paragraph (2), (3), (4), or | 11 | | (5) of subsection (e-5) of this Section shall limit the number | 12 | | of gaming positions to 2,000 for any such owners license. An | 13 | | owners licensee authorized under paragraph (6) of subsection | 14 | | (e-5) of this Section shall limit the number of gaming | 15 | | positions to 1,200 for such owner. The initial fee for each | 16 | | gaming position obtained on or after June 28, 2019 (the | 17 | | effective date of Public Act 101-31) shall be a minimum of | 18 | | $17,500 for licensees not located in Cook County and a minimum | 19 | | of $30,000 for licensees located in Cook County, in addition | 20 | | to the reconciliation payment, as set forth in subsection | 21 | | (e-15) of this Section. The fees under this subsection (h) | 22 | | shall be deposited into the Rebuild Illinois Projects Fund. | 23 | | The fees under this subsection (h) that are paid by an owners | 24 | | licensee authorized under subsection (e) shall be paid by July | 25 | | 1, 2021. | 26 | | Each owners licensee under subsection (e) of this Section |
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| 1 | | shall reserve its gaming positions within 30 days after June | 2 | | 28, 2019 (the effective date of Public Act 101-31). The Board | 3 | | may grant an extension to this 30-day period, provided that | 4 | | the owners licensee submits a written request and explanation | 5 | | as to why it is unable to reserve its positions within the | 6 | | 30-day period. | 7 | | Each owners licensee under subsection (e-5) of this | 8 | | Section shall reserve its gaming positions within 30 days | 9 | | after issuance of its owners license. The Board may grant an | 10 | | extension to this 30-day period, provided that the owners | 11 | | licensee submits a written request and explanation as to why | 12 | | it is unable to reserve its positions within the 30-day | 13 | | period. | 14 | | A licensee may operate both of its riverboats | 15 | | concurrently, provided that the total number of gaming | 16 | | positions on both riverboats does not exceed the limit | 17 | | established pursuant to this subsection. Riverboats licensed | 18 | | to operate on the Mississippi River and the Illinois River | 19 | | south of Marshall County shall have an authorized capacity of | 20 | | at least 500 persons. Any other riverboat licensed under this | 21 | | Act shall have an authorized capacity of at least 400 persons. | 22 | | (h-5) An owners licensee who conducted gambling operations | 23 | | prior to January 1, 2012 and obtains positions pursuant to | 24 | | Public Act 101-31 shall make a reconciliation payment 3 years | 25 | | after any additional gaming positions begin operating in an | 26 | | amount equal to 75% of the owners licensee's average gross |
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| 1 | | receipts for the most lucrative 12-month period of operations | 2 | | minus an amount equal to the initial fee that the owners | 3 | | licensee paid per additional gaming position. For purposes of | 4 | | this subsection (h-5), "average gross receipts" means (i) the | 5 | | increase in adjusted gross receipts for the most lucrative | 6 | | 12-month period of operations over the adjusted gross receipts | 7 | | for 2019, multiplied by (ii) the percentage derived by | 8 | | dividing the number of additional gaming positions that an | 9 | | owners licensee had obtained by the total number of gaming | 10 | | positions operated by the owners licensee. If this calculation | 11 | | results in a negative amount, then the owners licensee is not | 12 | | entitled to any reimbursement of fees previously paid. This | 13 | | reconciliation payment may be made in installments over a | 14 | | period of no more than 6 years. These reconciliation payments | 15 | | shall be deposited into the Rebuild Illinois Projects Fund. | 16 | | (i) A licensed owner is authorized to apply to the Board | 17 | | for and, if approved therefor, to receive all licenses from | 18 | | the Board necessary for the operation of a riverboat or | 19 | | casino, including a liquor license, a license to prepare and | 20 | | serve food for human consumption, and other necessary | 21 | | licenses. All use, occupation, and excise taxes which apply to | 22 | | the sale of food and beverages in this State and all taxes | 23 | | imposed on the sale or use of tangible personal property apply | 24 | | to such sales aboard the riverboat or in the casino. | 25 | | (j) The Board may issue or re-issue a license authorizing | 26 | | a riverboat to dock in a municipality or approve a relocation |
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| 1 | | under Section 11.2 only if, prior to the issuance or | 2 | | re-issuance of the license or approval, the governing body of | 3 | | the municipality in which the riverboat will dock has by a | 4 | | majority vote approved the docking of riverboats in the | 5 | | municipality. The Board may issue or re-issue a license | 6 | | authorizing a riverboat to dock in areas of a county outside | 7 | | any municipality or approve a relocation under Section 11.2 | 8 | | only if, prior to the issuance or re-issuance of the license or | 9 | | approval, the governing body of the county has by a majority | 10 | | vote approved of the docking of riverboats within such areas. | 11 | | (k) An owners licensee may conduct land-based gambling | 12 | | operations upon approval by the Board and payment of a fee of | 13 | | $250,000, which shall be deposited into the State Gaming Fund. | 14 | | (l) An owners licensee may conduct gaming at a temporary | 15 | | facility pending the construction of a permanent facility or | 16 | | the remodeling or relocation of an existing facility to | 17 | | accommodate gaming participants for up to 24 months after the | 18 | | temporary facility begins to conduct gaming. Upon request by | 19 | | an owners licensee and upon a showing of good cause by the | 20 | | owners licensee, the Board shall extend the period during | 21 | | which the licensee may conduct gaming at a temporary facility | 22 | | by up to 12 months or another period of time deemed necessary | 23 | | or appropriate by the Board . The Board shall make rules | 24 | | concerning the conduct of gaming from temporary facilities. | 25 | | (Source: P.A. 101-31, eff. 6-28-19; 101-648, eff. 6-30-20; | 26 | | 102-13, eff. 6-10-21; 102-558, eff. 8-20-21.)". |
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