093_HB0144ham002











                                     LRB093 02214 LRD 16515 a

 1                     AMENDMENT TO HOUSE BILL 144

 2        AMENDMENT NO.     .  Amend House Bill 144, AS AMENDED, by
 3    replacing everything  after  the  enacting  clause  with  the
 4    following:

 5        "Section  5.  The  Riverboat  Gambling  Act is amended by
 6    changing Sections 7 and 13 as follows:

 7        (230 ILCS 10/7) (from Ch. 120, par. 2407)
 8        Sec. 7.  Owners Licenses.
 9        (a)  The Board shall issue owners  licenses  to  persons,
10    firms  or  corporations  which  apply  for such licenses upon
11    payment to the Board of the non-refundable license fee set by
12    the Board, upon payment of a  $25,000  license  fee  for  the
13    first  year  of  operation  and a $5,000 license fee for each
14    succeeding year and upon a determination by  the  Board  that
15    the  applicant is eligible for an owners  license pursuant to
16    this Act and the rules of  the  Board.   A  person,  firm  or
17    corporation is ineligible to receive an owners license if:
18             (1)  the person has been convicted of a felony under
19        the  laws  of  this State, any other state, or the United
20        States;
21             (2)  the person has been convicted of any  violation
22        of   Article   28  of  the  Criminal  Code  of  1961,  or
 
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 1        substantially similar laws of any other jurisdiction;
 2             (3)  the person has submitted an application  for  a
 3        license under this Act which contains false information;
 4             (4)  the person is a member of the Board;
 5             (5)  a  person defined in (1), (2), (3) or (4) is an
 6        officer, director or managerial employee of the  firm  or
 7        corporation;
 8             (6)  the   firm  or  corporation  employs  a  person
 9        defined in (1), (2), (3) or (4) who participates  in  the
10        management or operation of gambling operations authorized
11        under this Act;
12             (7)  (blank); or
13             (8)  a  license  of  the person, firm or corporation
14        issued under this Act, or a license  to  own  or  operate
15        gambling  facilities  in any other jurisdiction, has been
16        revoked.
17        (b)  In determining whether to grant an owners license to
18    an applicant, the Board shall consider:
19             (1)  the  character,  reputation,  experience    and
20        financial integrity of the applicants and of any other or
21        separate person that either:
22                  (A)  controls,  directly  or  indirectly,  such
23             applicant, or
24                  (B)  is  controlled, directly or indirectly, by
25             such  applicant  or  by  a  person  which  controls,
26             directly or indirectly, such applicant;
27             (2)  the facilities or proposed facilities  for  the
28        conduct of riverboat gambling;
29             (3)  the  highest  prospective  total  revenue to be
30        derived by  the  State  from  the  conduct  of  riverboat
31        gambling;
32             (4)  the  good faith affirmative action plan of each
33        applicant to recruit, train and upgrade minorities in all
34        employment classifications;
 
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 1             (5)  the  financial  ability  of  the  applicant  to
 2        purchase and maintain  adequate  liability  and  casualty
 3        insurance;
 4             (6)  whether     the    applicant    has    adequate
 5        capitalization to provide and maintain, for the  duration
 6        of a license, a riverboat; and
 7             (7)  the  extent  to  which the applicant exceeds or
 8        meets other standards  for  the  issuance  of  an  owners
 9        license which the Board may adopt by rule.
10        (c)  Each  owners  license  shall specify the place where
11    riverboats shall operate and dock.
12        (d)  Each applicant shall submit with his application, on
13    forms provided by the Board, 2 sets of his fingerprints.
14        (e)  In  addition  to  any  licenses   authorized   under
15    subsections  (e-5)  and  (e-10), the Board may issue up to 10
16    licenses authorizing the holders  of  such  licenses  to  own
17    riverboats.   In  the  application for an owners license, the
18    applicant shall state the dock  at  which  the  riverboat  is
19    based  and  the water on which the riverboat will be located.
20    The Board shall issue 5  licenses  to  become  effective  not
21    earlier  than  January 1, 1991.  Three of such licenses shall
22    authorize riverboat gambling on the Mississippi River, one of
23    which shall authorize riverboat gambling from a home dock  in
24    the  city of East St. Louis, and one of which shall authorize
25    riverboat  gambling  on  the  Mississippi  River  or   in   a
26    municipality  that (1) borders on the Mississippi River or is
27    within 5 miles of the city  limits  of  a  municipality  that
28    borders  on  the  Mississippi  River and (2) on the effective
29    date of this amendatory Act of the 92nd General Assembly  has
30    a riverboat conducting riverboat gambling operations pursuant
31    to  a license issued under this Act.  One other license shall
32    authorize riverboat gambling on the Illinois River  south  of
33    Marshall  County.   The  Board  shall  issue  one  additional
34    license  to  become effective not earlier than March 1, 1992,
 
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 1    which shall authorize riverboat gambling on the  Des  Plaines
 2    River  in  Will  County.   The  Board  may issue 4 additional
 3    licenses to become effective not earlier than March 1,  1992.
 4    In  determining the water upon which riverboats will operate,
 5    the Board shall consider the economic benefit which riverboat
 6    gambling confers on the State, and shall seek to assure  that
 7    all  regions  of  the State share in the economic benefits of
 8    riverboat gambling.
 9        In granting all licenses, the Board  may  give  favorable
10    consideration  to  economically depressed areas of the State,
11    to applicants presenting plans which provide for  significant
12    economic  development  over  a  large geographic area, and to
13    applicants who currently operate non-gambling  riverboats  in
14    Illinois.  The Board shall review all applications for owners
15    licenses,  and  shall  inform  each  applicant of the Board's
16    decision.
17        (e-5)  In   addition   to   licenses   authorized   under
18    subsections (e) and (e-10), the Board may  issue  one  owners
19    license   authorizing   the  conduct  of  riverboat  gambling
20    operations  from  a  home  dock  in  a  municipality  with  a
21    population of  more  than  500,000  inhabitants.   An  owners
22    license  issued  under  this subsection (e-5) shall be issued
23    only to the governing board of the municipality in which  its
24    home  dock  is located. No such license may be awarded to any
25    other person or  entity.  If  a  license  is  issued  to  the
26    governing board of a municipality pursuant to this subsection
27    (e-5),  that  governing  board  shall  conduct an auction and
28    grant  the  opportunity  to  manage  the  riverboat  gambling
29    operations  authorized  by  that  license  to   the   highest
30    qualified bidder.
31        (e-10)  In   addition   to   licenses   authorized  under
32    subsections (e) and (e-5), the Board  may  issue  one  owners
33    license   authorizing   the  conduct  of  riverboat  gambling
34    operations from a home dock located outside of  the  City  of
 
                            -5-      LRB093 02214 LRD 16515 a
 1    Chicago,  but  in  Cook  County  and  in one of the following
 2    townships: Bloom, Thornton,  Rich,  Orland,  Calumet,  Worth,
 3    Palos, Bremen, or Lemont Township.
 4        (e-15)  The  Board  may  revoke  the  owners license of a
 5    licensee which fails to begin conducting gambling  within  15
 6    months  of receipt of the Board's approval of the application
 7    if the Board determines that license  revocation  is  in  the
 8    best interests of the State.
 9        (f)  The  first  10 Owners licenses issued under this Act
10    shall permit the  holder  to  own  up  to  2  riverboats  and
11    equipment thereon for a period of 3 years after the effective
12    date  of the license. Holders of the first 10 owners licenses
13    must pay the annual license fee  for  each  of  the  3  years
14    during which they are authorized to own riverboats.
15        (g)  Upon  the  termination, expiration, or revocation of
16    each owners license of the first 10 licenses, which shall  be
17    issued  for  a  3  year  period,  all  licenses are renewable
18    annually upon payment of the fee and a determination  by  the
19    Board  that  the  licensee  continues  to  meet  all  of  the
20    requirements of this Act and the Board's rules.  However, for
21    licenses  renewed  on  or after May 1, 1998, renewal shall be
22    for a period of 4 years, unless  the  Board  sets  a  shorter
23    period.
24        (h)  An  owners license shall entitle the licensee to own
25    up to 2 riverboats. A licensee, other than  a  licensee  that
26    receives  its  owners  license  under subsection (e-5), shall
27    limit the number of gambling participants to 2,000 1,200  for
28    any such owners license.  A licensee that receives its owners
29    license  under  subsection  (e-5)  shall  limit the number of
30    gambling participants to the number set by the  Board,  which
31    may  not  exceed  4,000 participants at one time.  In setting
32    the number of participants that a licensee that receives  its
33    license  under  subsection  (e-5)  may admit, the Board shall
34    consider  the  best  interests  of  the  riverboat   gambling
 
                            -6-      LRB093 02214 LRD 16515 a
 1    industry.   A  licensee  may  operate  both of its riverboats
 2    concurrently, provided that  the  total  number  of  gambling
 3    participants  on  both  riverboats  does  not  exceed  1,200.
 4    Riverboats  licensed  to operate on the Mississippi River and
 5    the Illinois River south of Marshall  County  shall  have  an
 6    authorized  capacity  of  at  least  500  persons.  Any other
 7    riverboat licensed under this Act shall  have  an  authorized
 8    capacity of at least 400 persons.
 9        (i)  A licensed owner is authorized to apply to the Board
10    for  and,  if approved therefor, to receive all licenses from
11    the  Board  necessary  for  the  operation  of  a  riverboat,
12    including a liquor license, a license to  prepare  and  serve
13    food  for  human  consumption,  and other necessary licenses.
14    All use, occupation and excise taxes which apply to the  sale
15    of  food and beverages in this State and all taxes imposed on
16    the sale or use of tangible personal property apply  to  such
17    sales aboard the riverboat.
18        (j)  The   Board   may  issue  a  license  authorizing  a
19    riverboat to dock in a municipality or approve  a  relocation
20    under  Section  11.2  only  if,  prior to the issuance of the
21    license or approval, the governing body of  the  municipality
22    in  which  the  riverboat  will  dock  has by a majority vote
23    approved the docking of riverboats in the municipality.   The
24    Board  may issue a license authorizing a riverboat to dock in
25    areas of a county  outside  any  municipality  or  approve  a
26    relocation  under Section 11.2 only if, prior to the issuance
27    of the license or approval, the governing body of the  county
28    has  by a majority vote approved of the docking of riverboats
29    within such areas.
30    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

31        (230 ILCS 10/13) (from Ch. 120, par. 2413)
32        Sec. 13.  Wagering tax; rate; distribution.
33        (a)  Until January 1, 1998,  a  tax  is  imposed  on  the
 
                            -7-      LRB093 02214 LRD 16515 a
 1    adjusted   gross   receipts   received  from  gambling  games
 2    authorized under this Act at the rate of 20%.
 3        From January 1, 1998 until July 1, 2002, a privilege  tax
 4    is  imposed  on persons engaged in the business of conducting
 5    riverboat gambling operations, based on  the  adjusted  gross
 6    receipts  received  by  a  licensed owner from gambling games
 7    authorized under this Act at the following rates:
 8             15% of annual adjusted  gross  receipts  up  to  and
 9        including $25,000,000;
10             20%  of  annual adjusted gross receipts in excess of
11        $25,000,000 but not exceeding $50,000,000;
12             25% of annual adjusted gross receipts in  excess  of
13        $50,000,000 but not exceeding $75,000,000;
14             30%  of  annual adjusted gross receipts in excess of
15        $75,000,000 but not exceeding $100,000,000;
16             35% of annual adjusted gross receipts in  excess  of
17        $100,000,000.
18        Beginning  July  1,  2002,  a privilege tax is imposed on
19    persons engaged  in  the  business  of  conducting  riverboat
20    gambling  operations,  based  on  the adjusted gross receipts
21    received by a licensed owner from gambling  games  authorized
22    under this Act at the following rates:
23             15%  of  annual  adjusted  gross  receipts up to and
24        including $25,000,000;
25             22.5% of annual adjusted gross receipts in excess of
26        $25,000,000 but not exceeding $50,000,000;
27             27.5% of annual adjusted gross receipts in excess of
28        $50,000,000 but not exceeding $75,000,000;
29             32.5% of annual adjusted gross receipts in excess of
30        $75,000,000 but not exceeding $100,000,000;
31             37.5% of annual adjusted gross receipts in excess of
32        $100,000,000 but not exceeding $150,000,000;
33             45% of annual adjusted gross receipts in  excess  of
34        $150,000,000 but not exceeding $200,000,000;
 
                            -8-      LRB093 02214 LRD 16515 a
 1             50%  of  annual adjusted gross receipts in excess of
 2        $200,000,000.
 3        The taxes imposed by this Section shall be  paid  by  the
 4    licensed  owner to the Board not later than 3:00 o'clock p.m.
 5    of the day after the day when the wagers were made.
 6        (b)  Until January  1,  1998,  25%  of  the  tax  revenue
 7    deposited  in  the State Gaming Fund under this Section shall
 8    be paid, subject to appropriation by the General Assembly, to
 9    the unit of local government which is designated as the  home
10    dock  of  the riverboat.  Beginning January 1, 1998, from the
11    tax revenue deposited in the State  Gaming  Fund  under  this
12    Section,  an  amount  equal  to 5% of adjusted gross receipts
13    generated by a riverboat, other than a  riverboat  authorized
14    under  subsection (e-10) of Section 7, shall be paid monthly,
15    subject to appropriation by the General Assembly, to the unit
16    of local government that is designated as the  home  dock  of
17    the riverboat.
18        (b-5)  From  the  tax  revenue  deposited  into the State
19    Gaming Fund under  this  Section,  payments  shall  be  made,
20    subject to appropriation by the General Assembly, as provided
21    in this subsection (b-5).
22        An  amount  equal  to  3%  of the adjusted gross receipts
23    generated by a riverboat authorized under  subsection  (e-10)
24    of  Section  7 shall be paid to the municipality in which the
25    riverboat docks and to any other municipalities or  townships
26    that  enter  into  an  intergovernmental  agreement  with the
27    municipality in which  the  riverboat  docks  to  share  that
28    revenue  and  shall be divided according to the terms of that
29    intergovernmental agreement.
30        An amount equal to 0.5% of the  adjusted  gross  receipts
31    generated  by  a riverboat authorized under subsection (e-10)
32    of Section 7  shall  be  divided  equally  and  paid  to  the
33    townships enumerated in subsection (e-10) of Section 7.
34        An  amount  equal  to  1%  of the adjusted gross receipts
 
                            -9-      LRB093 02214 LRD 16515 a
 1    generated by a riverboat authorized under  subsection  (e-10)
 2    of  Section  7 shall be divided among the school districts in
 3    the townships enumerated in subsection (e-10) of Section 7 in
 4    inverse proportion to the per-student expenditures of each of
 5    those school districts.
 6        An amount equal to 0.5% of the  adjusted  gross  receipts
 7    generated  by  a riverboat authorized under subsection (e-10)
 8    of Section 7 shall be paid into the South Suburban Assistance
 9    Fund, which is hereby created in  the  State  Treasury.   The
10    South  Suburban  Assistance Fund shall be administered by the
11    Department  of  Commerce  and  Community  affairs,   or   its
12    successor agency, and moneys in the Fund shall be used to aid
13    economically   distressed   communities   in   the  townships
14    enumerated in subsection (e-10) of Section 7.
15        (c)  Appropriations, as approved by the General Assembly,
16    may be made from the State Gaming Fund to the  Department  of
17    Revenue   and   the   Department  of  State  Police  for  the
18    administration and enforcement of this Act.
19        (c-5)  (Blank).  After  the   payments   required   under
20    subsections  (b)  and  (c) have been made, an amount equal to
21    15% of the adjusted gross receipts of a  riverboat  (1)  that
22    relocates  pursuant  to  Section  11.2,  or  (2) for which an
23    owners license is initially issued after the  effective  date
24    of  this amendatory Act of 1999, whichever comes first, shall
25    be paid from the State Gaming  Fund  into  the  Horse  Racing
26    Equity Fund.
27        (c-10)  (Blank).  Each  year  the  General Assembly shall
28    appropriate from the General Revenue Fund  to  the  Education
29    Assistance  Fund  an amount equal to the amount paid into the
30    Horse Racing Equity Fund pursuant to subsection (c-5) in  the
31    prior calendar year.
32        (c-15)  After  the  payments  required  under subsections
33    (b), (c), and (c-5) have been made, an amount equal to 2%  of
34    the  adjusted  gross  receipts  of  a  licensee, other than a
 
                            -10-     LRB093 02214 LRD 16515 a
 1    licensee that receives an  owners  license  under  subsection
 2    (e-5)  or  (e-10)  of Section 7, riverboat (1) that relocates
 3    pursuant to Section 11.2, or (2) for which an owners  license
 4    is   initially  issued  after  the  effective  date  of  this
 5    amendatory Act of 1999, whichever comes first, shall be paid,
 6    subject to appropriation from the General Assembly, from  the
 7    State  Gaming Fund to each home rule county with a population
 8    of over 3,000,000 inhabitants for the  purpose  of  enhancing
 9    the county's criminal justice system.
10        (c-20)  Each  year the General Assembly shall appropriate
11    from the General Revenue Fund  to  the  Education  Assistance
12    Fund  an  amount  equal  to the amount paid to each home rule
13    county  with  a  population  of  over  3,000,000  inhabitants
14    pursuant to subsection (c-15) in the prior calendar year.
15        (c-25)  After the  payments  required  under  subsections
16    (b), (c), (c-5) and (c-15) have been made, an amount equal to
17    2% of the adjusted gross receipts of a licensee, other than a
18    licensee  that  receives  an  owners license under subsection
19    (e-5) or (e-10) of Section 7, riverboat  (1)  that  relocates
20    pursuant  to Section 11.2, or (2) for which an owners license
21    is  initially  issued  after  the  effective  date  of   this
22    amendatory  Act of 1999, whichever comes first, shall be paid
23    from the  State  Gaming  Fund  into  the  State  Universities
24    Athletic Capital Improvement Fund.
25        (d)  From  time  to  time,  the  Board shall transfer the
26    remainder of  the  funds  generated  by  this  Act  into  the
27    Education  Assistance Fund, created by Public Act 86-0018, of
28    the State of Illinois.
29        (e)  Nothing in this Act shall prohibit the unit of local
30    government designated as the home dock of the riverboat  from
31    entering into agreements with other units of local government
32    in  this State or in other states to share its portion of the
33    tax revenue.
34        (f)  To  the  extent   practicable,   the   Board   shall
 
                            -11-     LRB093 02214 LRD 16515 a
 1    administer  and  collect  the  wagering taxes imposed by this
 2    Section  in  a  manner  consistent  with  the  provisions  of
 3    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
 4    6c, 8, 9, and 10 of the Retailers'  Occupation  Tax  Act  and
 5    Section 3-7 of the Uniform Penalty and Interest Act.
 6    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)

 7        Section   95.  The State Finance Act is amended by adding
 8    Section 5.595 as follows:

 9        (30 ILCS 105/5.595 new)
10        Sec. 5.595.  The South Suburban Assistance Fund.

11        Section 99.  Effective date.  This Act takes effect  upon
12    becoming law.".