093_HB0144ham001

 










                                     LRB093 02214 AMC 16320 a

 1                     AMENDMENT TO HOUSE BILL 144

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

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

30        (230 ILCS 10/13) (from Ch. 120, par. 2413)
31        Sec. 13.  Wagering tax; rate; distribution.
32        (a)  Until  January  1,  1998,  a  tax  is imposed on the
33    adjusted  gross  receipts  received   from   gambling   games
 
                            -7-      LRB093 02214 AMC 16320 a
 1    authorized under this Act at the rate of 20%.
 2        From  January 1, 1998 until July 1, 2002, a privilege tax
 3    is imposed on persons engaged in the business  of  conducting
 4    riverboat  gambling  operations,  based on the adjusted gross
 5    receipts received by a licensed  owner  from  gambling  games
 6    authorized under this Act at the following rates:
 7             15%  of  annual  adjusted  gross  receipts up to and
 8        including $25,000,000;
 9             20% of annual adjusted gross receipts in  excess  of
10        $25,000,000 but not exceeding $50,000,000;
11             25%  of  annual adjusted gross receipts in excess of
12        $50,000,000 but not exceeding $75,000,000;
13             30% of annual adjusted gross receipts in  excess  of
14        $75,000,000 but not exceeding $100,000,000;
15             35%  of  annual adjusted gross receipts in excess of
16        $100,000,000.
17        Beginning July 1, 2002, a privilege  tax  is  imposed  on
18    persons  engaged  in  the  business  of  conducting riverboat
19    gambling operations, based on  the  adjusted  gross  receipts
20    received  by  a licensed owner from gambling games authorized
21    under this Act at the following rates:
22             15% of annual adjusted  gross  receipts  up  to  and
23        including $25,000,000;
24             22.5% of annual adjusted gross receipts in excess of
25        $25,000,000 but not exceeding $50,000,000;
26             27.5% of annual adjusted gross receipts in excess of
27        $50,000,000 but not exceeding $75,000,000;
28             32.5% of annual adjusted gross receipts in excess of
29        $75,000,000 but not exceeding $100,000,000;
30             37.5% of annual adjusted gross receipts in excess of
31        $100,000,000 but not exceeding $150,000,000;
32             45%  of  annual adjusted gross receipts in excess of
33        $150,000,000 but not exceeding $200,000,000;
34             50% of annual adjusted gross receipts in  excess  of
 
                            -8-      LRB093 02214 AMC 16320 a
 1        $200,000,000.
 2        The  taxes  imposed  by this Section shall be paid by the
 3    licensed owner to the Board not later than 3:00 o'clock  p.m.
 4    of the day after the day when the wagers were made.
 5        (b)  Until  January  1,  1998,  25%  of  the  tax revenue
 6    deposited in the State Gaming Fund under this  Section  shall
 7    be paid, subject to appropriation by the General Assembly, to
 8    the  unit of local government which is designated as the home
 9    dock of the riverboat.  Beginning January 1, 1998,  from  the
10    tax  revenue  deposited  in  the State Gaming Fund under this
11    Section, an amount equal to 5%  of  adjusted  gross  receipts
12    generated  by  a riverboat, other than a riverboat authorized
13    under subsection (e-10) of Section 7, shall be paid  monthly,
14    subject to appropriation by the General Assembly, to the unit
15    of  local  government  that is designated as the home dock of
16    the riverboat.
17        (b-5)  From the tax  revenue  deposited  into  the  State
18    Gaming  Fund  under  this  Section,  payments  shall be made,
19    subject to appropriation by the General Assembly, as provided
20    in this subsection (b-5).
21        An amount equal to 3%  of  the  adjusted  gross  receipts
22    generated  by  a riverboat authorized under subsection (e-10)
23    of Section 7 shall be paid to the municipality in  which  the
24    riverboat  docks and to any other municipalities or townships
25    that enter  into  an  intergovernmental  agreement  with  the
26    municipality  in  which  the  riverboat  docks  to share that
27    revenue and shall be divided according to the terms  of  that
28    intergovernmental agreement.
29        An  amount  equal  to 0.5% of the adjusted gross receipts
30    generated by a riverboat authorized under  subsection  (e-10)
31    of  Section  7  shall  be  divided  equally  and  paid to the
32    townships enumerated in subsection (e-10) of Section 7.
33        An amount equal to 1%  of  the  adjusted  gross  receipts
34    generated  by  a riverboat authorized under subsection (e-10)
 
                            -9-      LRB093 02214 AMC 16320 a
 1    of Section 7 shall be divided among the school  districts  in
 2    the townships enumerated in subsection (e-10) of Section 7 in
 3    inverse proportion to the per-student expenditures of each of
 4    those school districts.
 5        An  amount  equal  to 0.5% of the adjusted gross receipts
 6    generated by a riverboat authorized under  subsection  (e-10)
 7    of Section 7 shall be paid into the South Suburban Assistance
 8    Fund,  which  is  hereby  created in the State Treasury.  The
 9    South Suburban Assistance Fund shall be administered  by  the
10    Department   of   Commerce  and  Community  affairs,  or  its
11    successor agency, and moneys in the Fund shall be used to aid
12    economically  distressed   communities   in   the   townships
13    enumerated in subsection (e-10) of Section 7.
14        (c)  Appropriations, as approved by the General Assembly,
15    may  be  made from the State Gaming Fund to the Department of
16    Revenue  and  the  Department  of  State   Police   for   the
17    administration and enforcement of this Act.
18        (c-5)  After  the payments required under subsections (b)
19    and (c) have been  made,  an  amount  equal  to  15%  of  the
20    adjusted  gross receipts of a licensee, other than a licensee
21    that receives an owners license  under  subsection  (e-5)  or
22    (e-10) of Section 7, riverboat (1) that relocates pursuant to
23    Section 11.2, or (2) for which an owners license is initially
24    issued  after  the  effective  date of this amendatory Act of
25    1999, whichever comes first, shall be  paid  from  the  State
26    Gaming Fund into the Horse Racing Equity Fund.
27        (c-10)  Each  year the General Assembly shall appropriate
28    from the General Revenue Fund  to  the  Education  Assistance
29    Fund an amount equal to the amount paid into the Horse Racing
30    Equity  Fund  pursuant  to  subsection  (c-5)  in  the  prior
31    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 AMC 16320 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 AMC 16320 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.".