093_HB0144ham004

 










                                     LRB093 12018 LRD 16640 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
 
                            -2-      LRB093 12018 LRD 16640 a
 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;
 
                            -3-      LRB093 12018 LRD 16640 a
 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), (e-10), and (e-15), the Board may issue up
16    to  10  licenses  authorizing the holders of such licenses to
17    own riverboats.  In the application for  an  owners  license,
18    the  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,
 
                            -4-      LRB093 12018 LRD 16640 a
 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 12018 LRD 16640 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)  In  addition   to   licenses   authorized   under
 5    subsection  (e),  the  Board  may issue one owners license to
 6    authorizing the conduct of riverboat gambling operations from
 7    a home dock in the City of East St. Louis. The ownership of a
 8    license  issued  under  this  subsection  (e-15)   shall   be
 9    constituted  of at least 51% minority person ownership and at
10    least 25% local person ownership. For the  purposes  of  this
11    subsection (e-15), the term "minority person" has the meaning
12    provided   in  Section  2  of  the  Business  Enterprise  for
13    Minorities, Females, and Persons with  Disabilities  Act  and
14    the   term  "local  person"  means  a  person  whose  primary
15    residence is in Madison or St. Clair County or a  corporation
16    or  firm that has its primary place of business in Madison or
17    St. Clair County.
18        (e-20)  The Board may revoke  the  owners  license  of  a
19    licensee  which  fails to begin conducting gambling within 15
20    months of receipt of the Board's approval of the  application
21    if  the  Board  determines  that license revocation is in the
22    best interests of the State.
23        (f)  The first 10 Owners licenses issued under  this  Act
24    shall  permit  the  holder  to  own  up  to  2 riverboats and
25    equipment thereon for a period of 3 years after the effective
26    date of the license. Holders of the first 10 owners  licenses
27    must  pay  the  annual  license  fee  for each of the 3 years
28    during which they are authorized to own riverboats.
29        (g)  Upon the termination, expiration, or  revocation  of
30    each  owners license of the first 10 licenses, which shall be
31    issued for a  3  year  period,  all  licenses  are  renewable
32    annually  upon  payment of the fee and a determination by the
33    Board  that  the  licensee  continues  to  meet  all  of  the
34    requirements of this Act and the Board's rules.  However, for
 
                            -6-      LRB093 12018 LRD 16640 a
 1    licenses renewed on or after May 1, 1998,  renewal  shall  be
 2    for  a  period  of  4  years, unless the Board sets a shorter
 3    period.
 4        (h)  An owners license shall entitle the licensee to  own
 5    up  to  2  riverboats. A licensee, other than a licensee that
 6    receives its owners license  under  subsection  (e-5),  shall
 7    limit  the number of gambling participants to 2,000 1,200 for
 8    any such owners license.  A licensee that receives its owners
 9    license under subsection (e-5)  shall  limit  the  number  of
10    gambling  participants  to the number set by the Board, which
11    may not exceed 4,000 participants at one  time.   In  setting
12    the  number of participants that a licensee that receives its
13    license under subsection (e-5) may  admit,  the  Board  shall
14    consider   the  best  interests  of  the  riverboat  gambling
15    industry.  A licensee may  operate  both  of  its  riverboats
16    concurrently,  provided  that  the  total  number of gambling
17    participants  on  both  riverboats  does  not  exceed  1,200.
18    Riverboats licensed to operate on the Mississippi  River  and
19    the  Illinois  River  south  of Marshall County shall have an
20    authorized capacity of  at  least  500  persons.   Any  other
21    riverboat  licensed  under  this Act shall have an authorized
22    capacity of at least 400 persons.
23        (i)  A licensed owner is authorized to apply to the Board
24    for and, if approved therefor, to receive all  licenses  from
25    the  Board  necessary  for  the  operation  of  a  riverboat,
26    including  a  liquor  license, a license to prepare and serve
27    food for human consumption,  and  other  necessary  licenses.
28    All  use, occupation and excise taxes which apply to the sale
29    of food and beverages in this State and all taxes imposed  on
30    the  sale  or use of tangible personal property apply to such
31    sales aboard the riverboat.
32        (j)  The  Board  may  issue  a  license   authorizing   a
33    riverboat  to  dock in a municipality or approve a relocation
34    under Section 11.2 only if, prior  to  the  issuance  of  the
 
                            -7-      LRB093 12018 LRD 16640 a
 1    license  or  approval, the governing body of the municipality
 2    in which the riverboat will  dock  has  by  a  majority  vote
 3    approved  the docking of riverboats in the municipality.  The
 4    Board may issue a license authorizing a riverboat to dock  in
 5    areas  of  a  county  outside  any  municipality or approve a
 6    relocation under Section 11.2 only if, prior to the  issuance
 7    of  the license or approval, the governing body of the county
 8    has by a majority vote approved of the docking of  riverboats
 9    within such areas.
10    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

11        (230 ILCS 10/13) (from Ch. 120, par. 2413)
12        Sec. 13.  Wagering tax; rate; distribution.
13        (a)  Until  January  1,  1998,  a  tax  is imposed on the
14    adjusted  gross  receipts  received   from   gambling   games
15    authorized under this Act at the rate of 20%.
16        From  January 1, 1998 until July 1, 2002, a privilege tax
17    is imposed on persons engaged in the business  of  conducting
18    riverboat  gambling  operations,  based on the adjusted gross
19    receipts received by a licensed  owner  from  gambling  games
20    authorized under this Act at the following rates:
21             15%  of  annual  adjusted  gross  receipts up to and
22        including $25,000,000;
23             20% of annual adjusted gross receipts in  excess  of
24        $25,000,000 but not exceeding $50,000,000;
25             25%  of  annual adjusted gross receipts in excess of
26        $50,000,000 but not exceeding $75,000,000;
27             30% of annual adjusted gross receipts in  excess  of
28        $75,000,000 but not exceeding $100,000,000;
29             35%  of  annual adjusted gross receipts in excess of
30        $100,000,000.
31        Beginning July 1, 2002, a privilege  tax  is  imposed  on
32    persons  engaged  in  the  business  of  conducting riverboat
33    gambling operations, based on  the  adjusted  gross  receipts
 
                            -8-      LRB093 12018 LRD 16640 a
 1    received  by  a licensed owner from gambling games authorized
 2    under this Act at the following rates:
 3             15% of annual adjusted  gross  receipts  up  to  and
 4        including $25,000,000;
 5             22.5% of annual adjusted gross receipts in excess of
 6        $25,000,000 but not exceeding $50,000,000;
 7             27.5% of annual adjusted gross receipts in excess of
 8        $50,000,000 but not exceeding $75,000,000;
 9             32.5% of annual adjusted gross receipts in excess of
10        $75,000,000 but not exceeding $100,000,000;
11             37.5% of annual adjusted gross receipts in excess of
12        $100,000,000 but not exceeding $150,000,000;
13             45%  of  annual adjusted gross receipts in excess of
14        $150,000,000 but not exceeding $200,000,000;
15             50% of annual adjusted gross receipts in  excess  of
16        $200,000,000.
17        The  taxes  imposed  by this Section shall be paid by the
18    licensed owner to the Board not later than 3:00 o'clock  p.m.
19    of the day after the day when the wagers were made.
20        (b)  Until  January  1,  1998,  25%  of  the  tax revenue
21    deposited in the State Gaming Fund under this  Section  shall
22    be paid, subject to appropriation by the General Assembly, to
23    the  unit of local government which is designated as the home
24    dock of the riverboat.  Beginning January 1, 1998,  from  the
25    tax  revenue  deposited  in  the State Gaming Fund under this
26    Section, an amount equal to 5%  of  adjusted  gross  receipts
27    generated  by  a riverboat, other than a riverboat authorized
28    under subsection (e-10) of Section 7, shall be paid  monthly,
29    subject to appropriation by the General Assembly, to the unit
30    of  local  government  that is designated as the home dock of
31    the riverboat.
32        (b-5)  From the tax  revenue  deposited  into  the  State
33    Gaming  Fund  under  this  Section,  payments  shall be made,
34    subject to appropriation by the General Assembly, as provided
 
                            -9-      LRB093 12018 LRD 16640 a
 1    in this subsection (b-5).
 2        An amount equal to 3%  of  the  adjusted  gross  receipts
 3    generated  by  a riverboat authorized under subsection (e-10)
 4    of Section 7 shall be paid to the municipality in  which  the
 5    riverboat  docks and to any other municipalities or townships
 6    that enter  into  an  intergovernmental  agreement  with  the
 7    municipality  in  which  the  riverboat  docks  to share that
 8    revenue and shall be divided according to the terms  of  that
 9    intergovernmental agreement.
10        An  amount  equal  to 0.5% of the adjusted gross receipts
11    generated by a riverboat authorized under  subsection  (e-10)
12    of  Section  7  shall  be  divided  equally  and  paid to the
13    townships enumerated in subsection (e-10) of Section 7.
14        An amount equal to 1%  of  the  adjusted  gross  receipts
15    generated  by  a riverboat authorized under subsection (e-10)
16    of Section 7 shall be divided among the school  districts  in
17    the townships enumerated in subsection (e-10) of Section 7 in
18    inverse proportion to the per-student expenditures of each of
19    those school districts.
20        An  amount  equal  to 0.5% of the adjusted gross receipts
21    generated by a riverboat authorized under  subsection  (e-10)
22    of Section 7 shall be paid into the South Suburban Assistance
23    Fund,  which  is  hereby  created in the State Treasury.  The
24    South Suburban Assistance Fund shall be administered  by  the
25    Department   of   Commerce  and  Community  affairs,  or  its
26    successor agency, and moneys in the Fund shall be used to aid
27    economically  distressed   communities   in   the   townships
28    enumerated in subsection (e-10) of Section 7.
29        (c)  Appropriations, as approved by the General Assembly,
30    may  be  made from the State Gaming Fund to the Department of
31    Revenue  and  the  Department  of  State   Police   for   the
32    administration and enforcement of this Act.
33        (c-5)  (Blank).   After   the   payments  required  under
34    subsections (b) and (c) have been made, an  amount  equal  to
 
                            -10-     LRB093 12018 LRD 16640 a
 1    15%  of  the  adjusted gross receipts of a riverboat (1) that
 2    relocates pursuant to Section  11.2,  or  (2)  for  which  an
 3    owners  license  is initially issued after the effective date
 4    of this amendatory Act of 1999, whichever comes first,  shall
 5    be  paid  from  the  State  Gaming Fund into the Horse Racing
 6    Equity Fund.
 7        (c-10)  (Blank). Each year  the  General  Assembly  shall
 8    appropriate  from  the  General Revenue Fund to the Education
 9    Assistance Fund an amount equal to the amount paid  into  the
10    Horse  Racing Equity Fund pursuant to subsection (c-5) in the
11    prior calendar year.
12        (c-15)  After the  payments  required  under  subsections
13    (b),  (c), and (c-5) have been made, an amount equal to 2% of
14    the adjusted gross receipts  of  a  licensee,  other  than  a
15    licensee  that  receives  an  owners license under subsection
16    (e-5), (e-10), or (e-15) of Section  7,  riverboat  (1)  that
17    relocates  pursuant  to  Section  11.2,  or  (2) for which an
18    owners license is initially issued after the  effective  date
19    of  this amendatory Act of 1999, whichever comes first, shall
20    be paid, subject to appropriation from the General  Assembly,
21    from  the  State  Gaming Fund to each home rule county with a
22    population of over 3,000,000 inhabitants for the  purpose  of
23    enhancing the county's criminal justice system.
24        (c-20)  Each  year the General Assembly shall appropriate
25    from the General Revenue Fund  to  the  Education  Assistance
26    Fund  an  amount  equal  to the amount paid to each home rule
27    county  with  a  population  of  over  3,000,000  inhabitants
28    pursuant to subsection (c-15) in the prior calendar year.
29        (c-25)  After the  payments  required  under  subsections
30    (b), (c), (c-5) and (c-15) have been made, an amount equal to
31    2% of the adjusted gross receipts of a licensee, other than a
32    licensee  that  receives  an  owners license under subsection
33    (e-5), (e-10), or (e-15) of Section  7,  riverboat  (1)  that
34    relocates  pursuant  to  Section  11.2,  or  (2) for which an
 
                            -11-     LRB093 12018 LRD 16640 a
 1    owners license is initially issued after the  effective  date
 2    of  this amendatory Act of 1999, whichever comes first, shall
 3    be  paid  from  the  State  Gaming  Fund   into   the   State
 4    Universities Athletic Capital Improvement Fund.
 5        (c-30)  After the payments required under subsections (b)
 6    and (c) have been made, an amount equal to 1% of the adjusted
 7    gross  receipts of a licensee that receives an owners license
 8    under  subsection  (e-15)   shall   be   paid,   subject   to
 9    appropriation  by the General Assembly, from the State Gaming
10    Fund to each of the following municipalities:
11             (1)  Alorton;
12             (2)  Brooklyn;
13             (3)  Cahokia;
14             (4)  Centerville;
15             (5)  Venice; and
16             (6)  Washington Park.
17        (c-35)  Each year the General Assembly shall  appropriate
18    from  the  General  Revenue  Fund to the Education Assistance
19    Fund an amount equal to the  amount  paid  to  municipalities
20    under subsection (c-30) in the prior calendar year.
21        (d)  From  time  to  time,  the  Board shall transfer the
22    remainder of  the  funds  generated  by  this  Act  into  the
23    Education  Assistance Fund, created by Public Act 86-0018, of
24    the State of Illinois.
25        (e)  Nothing in this Act shall prohibit the unit of local
26    government designated as the home dock of the riverboat  from
27    entering into agreements with other units of local government
28    in  this State or in other states to share its portion of the
29    tax revenue.
30        (f)  To  the  extent   practicable,   the   Board   shall
31    administer  and  collect  the  wagering taxes imposed by this
32    Section  in  a  manner  consistent  with  the  provisions  of
33    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
34    6c, 8, 9, and 10 of the Retailers'  Occupation  Tax  Act  and
 
                            -12-     LRB093 12018 LRD 16640 a
 1    Section 3-7 of the Uniform Penalty and Interest Act.
 2    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)

 3        Section   95.  The State Finance Act is amended by adding
 4    Section 5.595 as follows:

 5        (30 ILCS 105/5.595 new)
 6        Sec. 5.595.  The South Suburban Assistance Fund.

 7        Section 99.  Effective date.  This Act takes effect  upon
 8    becoming law.".