093_SB1478

 
                                     LRB093 10716 LRD 11103 b

 1        AN ACT in relation to gambling.

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

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

 6        (230 ILCS 10/7) (from Ch. 120, par. 2407)
 7        Sec. 7.  Owners Licenses.
 8        (a)  The Board shall issue owners  licenses  to  persons,
 9    firms  or  corporations  which  apply  for such licenses upon
10    payment to the Board of the non-refundable license fee set by
11    the Board, upon payment of a  $25,000  license  fee  for  the
12    first  year  of  operation  and a $5,000 license fee for each
13    succeeding year and upon a determination by  the  Board  that
14    the  applicant is eligible for an owners  license pursuant to
15    this Act and the rules of  the  Board.   A  person,  firm  or
16    corporation is ineligible to receive an owners license if:
17             (1)  the person has been convicted of a felony under
18        the  laws  of  this State, any other state, or the United
19        States;
20             (2)  the person has been convicted of any  violation
21        of   Article   28  of  the  Criminal  Code  of  1961,  or
22        substantially similar laws of any other jurisdiction;
23             (3)  the person has submitted an application  for  a
24        license under this Act which contains false information;
25             (4)  the person is a member of the Board;
26             (5)  a  person defined in (1), (2), (3) or (4) is an
27        officer, director or managerial employee of the  firm  or
28        corporation;
29             (6)  the   firm  or  corporation  employs  a  person
30        defined in (1), (2), (3) or (4) who participates  in  the
31        management or operation of gambling operations authorized
 
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 1        under this Act;
 2             (7)  (blank); or
 3             (8)  a  license  of  the person, firm or corporation
 4        issued under this Act, or a license  to  own  or  operate
 5        gambling  facilities  in any other jurisdiction, has been
 6        revoked.
 7        (b)  In determining whether to grant an owners license to
 8    an applicant, the Board shall consider:
 9             (1)  the  character,  reputation,  experience    and
10        financial integrity of the applicants and of any other or
11        separate person that either:
12                  (A)  controls,  directly  or  indirectly,  such
13             applicant, or
14                  (B)  is  controlled, directly or indirectly, by
15             such  applicant  or  by  a  person  which  controls,
16             directly or indirectly, such applicant;
17             (2)  the facilities or proposed facilities  for  the
18        conduct of riverboat gambling;
19             (3)  the  highest  prospective  total  revenue to be
20        derived by  the  State  from  the  conduct  of  riverboat
21        gambling;
22             (4)  the  good faith affirmative action plan of each
23        applicant to recruit, train and upgrade minorities in all
24        employment classifications;
25             (5)  the  financial  ability  of  the  applicant  to
26        purchase and maintain  adequate  liability  and  casualty
27        insurance;
28             (6)  whether     the    applicant    has    adequate
29        capitalization to provide and maintain, for the  duration
30        of a license, a riverboat; and
31             (7)  the  extent  to  which the applicant exceeds or
32        meets other standards  for  the  issuance  of  an  owners
33        license which the Board may adopt by rule.
34        (c)  Each  owners  license  shall specify the place where
 
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 1    riverboats shall operate and dock.
 2        (d)  Each applicant shall submit with his application, on
 3    forms provided by the Board, 2 sets of his fingerprints.
 4        (e)  The Board may issue up to  10  licenses  authorizing
 5    the  holders  of  such  licenses  to  own riverboats.  In the
 6    application for an owners license, the applicant shall  state
 7    the  dock  at  which  the riverboat is based and the water on
 8    which the riverboat will be located.  The Board shall issue 5
 9    licenses to become effective  not  earlier  than  January  1,
10    1991.   Three  of  such  licenses  shall  authorize riverboat
11    gambling  on  the  Mississippi  River,  one  of  which  shall
12    authorize riverboat gambling from a home dock in the city  of
13    East  St.  Louis,  and one of which shall authorize riverboat
14    gambling on the Mississippi River or in a  municipality  that
15    (1)  borders on the Mississippi River or is within 5 miles of
16    the city  limits  of  a  municipality  that  borders  on  the
17    Mississippi  River  and  (2)  on  the  effective date of this
18    amendatory Act of the 92nd General Assembly has  a  riverboat
19    conducting   riverboat  gambling  operations  pursuant  to  a
20    license issued under this  Act.    One  other  license  shall
21    authorize  riverboat  gambling on the Illinois River south of
22    Marshall  County.   The  Board  shall  issue  one  additional
23    license to become effective not earlier than March  1,  1992,
24    which  shall  authorize riverboat gambling on the Des Plaines
25    River in Will County.   The  Board  may  issue  4  additional
26    licenses  to become effective not earlier than March 1, 1992.
27    In determining the water upon which riverboats will  operate,
28    the Board shall consider the economic benefit which riverboat
29    gambling  confers on the State, and shall seek to assure that
30    all regions of the State share in the  economic  benefits  of
31    riverboat gambling.
32        In  granting  all  licenses, the Board may give favorable
33    consideration to economically depressed areas of  the  State,
34    to  applicants presenting plans which provide for significant
 
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 1    economic development over a large  geographic  area,  and  to
 2    applicants  who  currently operate non-gambling riverboats in
 3    Illinois.  The Board shall review all applications for owners
 4    licenses, and shall inform  each  applicant  of  the  Board's
 5    decision.
 6        The  Board  may  revoke  the owners license of a licensee
 7    which fails to begin conducting gambling within 15 months  of
 8    receipt  of  the  Board's  approval of the application if the
 9    Board determines that  license  revocation  is  in  the  best
10    interests of the State.
11        (f)  The  first  10 owners licenses issued under this Act
12    shall permit the  holder  to  own  up  to  2  riverboats  and
13    equipment thereon for a period of 3 years after the effective
14    date  of the license. Holders of the first 10 owners licenses
15    must pay the annual license fee  for  each  of  the  3  years
16    during which they are authorized to own riverboats.
17        (g)  Upon  the  termination, expiration, or revocation of
18    each of the first 10 licenses, which shall be issued for a  3
19    year period, all licenses are renewable annually upon payment
20    of the fee and a determination by the Board that the licensee
21    continues to meet all of the requirements of this Act and the
22    Board's rules.  However, for licenses renewed on or after May
23    1, 1998, renewal shall be for a period of 4 years, unless the
24    Board sets a shorter period.
25        (h)  An  owners license shall entitle the licensee to own
26    up to 2 riverboats.  A licensee shall  limit  the  number  of
27    gambling  participants  to  2,000  1,200  for any such owners
28    license. A  licensee  may  operate  both  of  its  riverboats
29    concurrently,  provided  that  the  total  number of gambling
30    participants on both riverboats does not exceed 2,000  1,200.
31    Riverboats  licensed  to operate on the Mississippi River and
32    the Illinois River south of Marshall  County  shall  have  an
33    authorized  capacity  of  at  least  500  persons.  Any other
34    riverboat licensed under this Act shall  have  an  authorized
 
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 1    capacity of at least 400 persons.
 2        (i)  A licensed owner is authorized to apply to the Board
 3    for  and,  if approved therefor, to receive all licenses from
 4    the  Board  necessary  for  the  operation  of  a  riverboat,
 5    including a liquor license, a license to  prepare  and  serve
 6    food  for  human  consumption,  and other necessary licenses.
 7    All use, occupation and excise taxes which apply to the  sale
 8    of  food and beverages in this State and all taxes imposed on
 9    the sale or use of tangible personal property apply  to  such
10    sales aboard the riverboat.
11        (j)  The   Board   may  issue  a  license  authorizing  a
12    riverboat to dock in a municipality or approve  a  relocation
13    under  Section  11.2  only  if,  prior to the issuance of the
14    license or approval, the governing body of  the  municipality
15    in  which  the  riverboat  will  dock  has by a majority vote
16    approved the docking of riverboats in the municipality.   The
17    Board  may issue a license authorizing a riverboat to dock in
18    areas of a county  outside  any  municipality  or  approve  a
19    relocation  under Section 11.2 only if, prior to the issuance
20    of the license or approval, the governing body of the  county
21    has  by a majority vote approved of the docking of riverboats
22    within such areas.
23    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

24        (230 ILCS 10/13) (from Ch. 120, par. 2413)
25        Sec. 13.  Wagering tax; rate; distribution.
26        (a)  Until January 1, 1998,  a  tax  is  imposed  on  the
27    adjusted   gross   receipts   received  from  gambling  games
28    authorized under this Act at the rate of 20%.
29        From January 1, 1998 until July 1, 2002, a privilege  tax
30    is  imposed  on persons engaged in the business of conducting
31    riverboat gambling operations, based on  the  adjusted  gross
32    receipts  received  by  a  licensed owner from gambling games
33    authorized under this Act at the following rates:
 
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 1             15% of annual adjusted  gross  receipts  up  to  and
 2        including $25,000,000;
 3             20%  of  annual adjusted gross receipts in excess of
 4        $25,000,000 but not exceeding $50,000,000;
 5             25% of annual adjusted gross receipts in  excess  of
 6        $50,000,000 but not exceeding $75,000,000;
 7             30%  of  annual adjusted gross receipts in excess of
 8        $75,000,000 but not exceeding $100,000,000;
 9             35% of annual adjusted gross receipts in  excess  of
10        $100,000,000.
11        Beginning  July  1,  2002,  a privilege tax is imposed on
12    persons engaged  in  the  business  of  conducting  riverboat
13    gambling  operations,  based  on  the adjusted gross receipts
14    received by a licensed owner from gambling  games  authorized
15    under this Act at the following rates:
16             15%  of  annual  adjusted  gross  receipts up to and
17        including $25,000,000;
18             22.5% of annual adjusted gross receipts in excess of
19        $25,000,000 but not exceeding $50,000,000;
20             27.5% of annual adjusted gross receipts in excess of
21        $50,000,000 but not exceeding $75,000,000;
22             32.5% of annual adjusted gross receipts in excess of
23        $75,000,000 but not exceeding $100,000,000;
24             37.5% of annual adjusted gross receipts in excess of
25        $100,000,000 but not exceeding $150,000,000;
26             45% of annual adjusted gross receipts in  excess  of
27        $150,000,000 but not exceeding $200,000,000;
28             50%  of  annual adjusted gross receipts in excess of
29        $200,000,000.
30        The taxes imposed by this Section shall be  paid  by  the
31    licensed  owner to the Board not later than 3:00 o'clock p.m.
32    of the day after the day when the wagers were made.
33        (b)  Until January  1,  1998,  25%  of  the  tax  revenue
34    deposited  in  the State Gaming Fund under this Section shall
 
                            -7-      LRB093 10716 LRD 11103 b
 1    be paid, subject to appropriation by the General Assembly, to
 2    the unit of local government which is designated as the  home
 3    dock  of  the riverboat.  Beginning January 1, 1998, from the
 4    tax revenue deposited in the State  Gaming  Fund  under  this
 5    Section,  an  amount  equal  to 5% of adjusted gross receipts
 6    generated by a riverboat shall be paid  monthly,  subject  to
 7    appropriation  by  the General Assembly, to the unit of local
 8    government that  is  designated  as  the  home  dock  of  the
 9    riverboat.
10        (c)  Appropriations, as approved by the General Assembly,
11    may  be  made from the State Gaming Fund to the Department of
12    Revenue  and  the  Department  of  State   Police   for   the
13    administration and enforcement of this Act.
14        (c-5)  After  the payments required under subsections (b)
15    and (c) have been  made,  an  amount  equal  to  15%  of  the
16    adjusted  gross  receipts  of  a riverboat (1) that relocates
17    pursuant to Section 11.2, or (2) for which an owners  license
18    is   initially  issued  after  the  effective  date  of  this
19    amendatory Act of 1999, whichever comes first, shall be  paid
20    from the State Gaming Fund into the Horse Racing Equity Fund.
21        (c-10)  Each  year the General Assembly shall appropriate
22    from the General Revenue Fund  to  the  Education  Assistance
23    Fund an amount equal to the amount paid into the Horse Racing
24    Equity  Fund  pursuant  to  subsection  (c-5)  in  the  prior
25    calendar year.
26        (c-15)  After  the  payments  required  under subsections
27    (b), (c), and (c-5) have been made, an amount equal to 2%  of
28    the adjusted gross receipts of a riverboat (1) that relocates
29    pursuant  to Section 11.2, or (2) for which an owners license
30    is  initially  issued  after  the  effective  date  of   this
31    amendatory Act of 1999, whichever comes first, shall be paid,
32    subject  to appropriation from the General Assembly, from the
33    State Gaming Fund to each home rule county with a  population
34    of  over  3,000,000  inhabitants for the purpose of enhancing
 
                            -8-      LRB093 10716 LRD 11103 b
 1    the county's criminal justice system.
 2        (c-20)  Each year the General Assembly shall  appropriate
 3    from  the  General  Revenue  Fund to the Education Assistance
 4    Fund an amount equal to the amount paid  to  each  home  rule
 5    county  with  a  population  of  over  3,000,000  inhabitants
 6    pursuant to subsection (c-15) in the prior calendar year.
 7        (c-25)  After  the  payments  required  under subsections
 8    (b), (c), (c-5) and (c-15) have been made, an amount equal to
 9    2% of the adjusted gross receipts of  a  riverboat  (1)  that
10    relocates  pursuant  to  Section  11.2,  or  (2) for which an
11    owners license is initially issued after the  effective  date
12    of  this amendatory Act of 1999, whichever comes first, shall
13    be  paid  from  the  State  Gaming  Fund   into   the   State
14    Universities Athletic Capital Improvement Fund.
15        (c-30) After the payments required under subsections (b),
16    (c),  (c-5),  (c-15), and (c-25) have been made, an aggregate
17    amount equal to 1%  of  the  adjusted  gross  receipts  of  a
18    riverboat less an amount equal to the amount paid to the unit
19    of  local  government  that is designated as the home dock of
20    the riverboat pursuant  to  subsection  (b),  shall  be  paid
21    monthly,  subject  to  appropriation by the General Assembly,
22    from the State Gaming Fund to blighted  municipalities  other
23    than  the  municipality  in which the riverboat docks, if the
24    riverboat docks within the boundaries of a municipality, that
25    are located in the county in which the riverboat docks  based
26    on  the  proportion  that  the  population  of  each of those
27    blighted municipalities bears  to  the  total  population  of
28    blighted  municipalities  in  the county, other than the home
29    dock municipality. For the purpose of this subsection (c-30),
30    the term "blighted municipality" means a municipality that is
31    in the bottom 10% of all the municipalities in the county  in
32    average median income or employment rate.
33        (d)  From  time  to  time,  the  Board shall transfer the
34    remainder of  the  funds  generated  by  this  Act  into  the
 
                            -9-      LRB093 10716 LRD 11103 b
 1    Education  Assistance Fund, created by Public Act 86-0018, of
 2    the State of Illinois.
 3        (e)  Nothing in this Act shall prohibit the unit of local
 4    government designated as the home dock of the riverboat  from
 5    entering into agreements with other units of local government
 6    in  this State or in other states to share its portion of the
 7    tax revenue.
 8        (f)  To  the  extent   practicable,   the   Board   shall
 9    administer  and  collect  the  wagering taxes imposed by this
10    Section  in  a  manner  consistent  with  the  provisions  of
11    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
12    6c, 8, 9, and 10 of the Retailers'  Occupation  Tax  Act  and
13    Section 3-7 of the Uniform Penalty and Interest Act.
14    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)