093_HB3039

 
                                     LRB093 11027 LRD 11699 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
 
                            -2-      LRB093 11027 LRD 11699 b
 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)  In   addition   to  any  licenses  authorized  under
 5    subsection (e-5), the Board  may  issue  up  to  10  licenses
 6    authorizing  the  holders of such licenses to own riverboats.
 7    In the application for an owners license, the applicant shall
 8    state the dock at which the riverboat is based and the  water
 9    on  which  the  riverboat  will  be located.  The Board shall
10    issue 5 licenses to become effective not earlier than January
11    1, 1991.  Three of such licenses  shall  authorize  riverboat
12    gambling  on  the  Mississippi  River,  one  of  which  shall
13    authorize  riverboat gambling from a home dock in the city of
14    East St. Louis, and one of which  shall  authorize  riverboat
15    gambling  on  the Mississippi River or in a municipality that
16    (1) borders on the Mississippi River or is within 5 miles  of
17    the  city  limits  of  a  municipality  that  borders  on the
18    Mississippi River and (2)  on  the  effective  date  of  this
19    amendatory  Act  of the 92nd General Assembly has a riverboat
20    conducting  riverboat  gambling  operations  pursuant  to   a
21    license  issued  under  this  Act.    One other license shall
22    authorize riverboat gambling on the Illinois River  south  of
23    Marshall  County.   The  Board  shall  issue  one  additional
24    license  to  become effective not earlier than March 1, 1992,
25    which shall authorize riverboat gambling on the  Des  Plaines
26    River  in  Will  County.   The  Board  may issue 4 additional
27    licenses to become effective not earlier than March 1,  1992.
28    In  determining the water upon which riverboats will operate,
29    the Board shall consider the economic benefit which riverboat
30    gambling confers on the State, and shall seek to assure  that
31    all  regions  of  the State share in the economic benefits of
32    riverboat gambling.
33        In granting all licenses, the Board  may  give  favorable
34    consideration  to  economically depressed areas of the State,
 
                            -4-      LRB093 11027 LRD 11699 b
 1    to applicants presenting plans which provide for  significant
 2    economic  development  over  a  large geographic area, and to
 3    applicants who currently operate non-gambling  riverboats  in
 4    Illinois.  The Board shall review all applications for owners
 5    licenses,  and  shall  inform  each  applicant of the Board's
 6    decision.
 7        (e-5)  In   addition   to   licenses   authorized   under
 8    subsection (e), the Board may issue  one  owners  license  to
 9    authorizing the conduct of riverboat gambling operations from
10    a home dock in the City of East St. Louis. The ownership of a
11    license   issued   under   this  subsection  (e-5)  shall  be
12    constituted of at least 51% minority person ownership and  at
13    least  25%  local  person ownership. For the purposes of this
14    subsection (e-5), the term "minority person" has the  meaning
15    provided   in  Section  2  of  the  Business  Enterprise  for
16    Minorities, Females, and Persons with  Disabilities  Act  and
17    the   term  "local  person"  means  a  person  whose  primary
18    residence is in Madison or St. Clair County or a  corporation
19    or  firm that has its primary place of business in Madison or
20    St. Clair County.
21        (e-10)  The Board may revoke  the  owners  license  of  a
22    licensee  which  fails to begin conducting gambling within 15
23    months of receipt of the Board's approval of the  application
24    if  the  Board  determines  that license revocation is in the
25    best interests of the State.
26        (f)  The first 10 Owners licenses issued under  this  Act
27    shall  permit  the  holder  to  own  up  to  2 riverboats and
28    equipment thereon for a period of 3 years after the effective
29    date of the license. Holders of the first 10 owners  licenses
30    must  pay  the  annual  license  fee  for each of the 3 years
31    during which they are authorized to own riverboats.
32        (g)  Upon the termination, expiration, or  revocation  of
33    each  owners license of the first 10 licenses, which shall be
34    issued for a  3  year  period,  all  licenses  are  renewable
 
                            -5-      LRB093 11027 LRD 11699 b
 1    annually  upon  payment of the fee and a determination by the
 2    Board  that  the  licensee  continues  to  meet  all  of  the
 3    requirements of this Act and the Board's rules.  However, for
 4    licenses renewed on or after May 1, 1998,  renewal  shall  be
 5    for  a  period  of  4  years, unless the Board sets a shorter
 6    period.
 7        (h)  An owners license shall entitle the licensee to  own
 8    up  to  2  riverboats.  A  licensee shall limit the number of
 9    gambling participants to 1,200 for any such owners license. A
10    licensee may operate both  of  its  riverboats  concurrently,
11    provided  that  the  total number of gambling participants on
12    both riverboats does not exceed 1,200. Riverboats licensed to
13    operate on the Mississippi River and the Illinois River south
14    of Marshall County shall have an authorized  capacity  of  at
15    least  500  persons.  Any other riverboat licensed under this
16    Act shall  have  an  authorized  capacity  of  at  least  400
17    persons.
18        (i)  A licensed owner is authorized to apply to the Board
19    for  and,  if approved therefor, to receive all licenses from
20    the  Board  necessary  for  the  operation  of  a  riverboat,
21    including a liquor license, a license to  prepare  and  serve
22    food  for  human  consumption,  and other necessary licenses.
23    All use, occupation and excise taxes which apply to the  sale
24    of  food and beverages in this State and all taxes imposed on
25    the sale or use of tangible personal property apply  to  such
26    sales aboard the riverboat.
27        (j)  The   Board   may  issue  a  license  authorizing  a
28    riverboat to dock in a municipality or approve  a  relocation
29    under  Section  11.2  only  if,  prior to the issuance of the
30    license or approval, the governing body of  the  municipality
31    in  which  the  riverboat  will  dock  has by a majority vote
32    approved the docking of riverboats in the municipality.   The
33    Board  may issue a license authorizing a riverboat to dock in
34    areas of a county  outside  any  municipality  or  approve  a
 
                            -6-      LRB093 11027 LRD 11699 b
 1    relocation  under Section 11.2 only if, prior to the issuance
 2    of the license or approval, the governing body of the  county
 3    has  by a majority vote approved of the docking of riverboats
 4    within such areas.
 5    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

 6        (230 ILCS 10/13) (from Ch. 120, par. 2413)
 7        Sec. 13.  Wagering tax; rate; distribution.
 8        (a)  Until January 1, 1998,  a  tax  is  imposed  on  the
 9    adjusted   gross   receipts   received  from  gambling  games
10    authorized under this Act at the rate of 20%.
11        From January 1, 1998 until July 1, 2002, a privilege  tax
12    is  imposed  on persons engaged in the business of conducting
13    riverboat gambling operations, based on  the  adjusted  gross
14    receipts  received  by  a  licensed owner from gambling games
15    authorized under this Act at the following rates:
16             15% of annual adjusted  gross  receipts  up  to  and
17        including $25,000,000;
18             20%  of  annual adjusted gross receipts in excess of
19        $25,000,000 but not exceeding $50,000,000;
20             25% of annual adjusted gross receipts in  excess  of
21        $50,000,000 but not exceeding $75,000,000;
22             30%  of  annual adjusted gross receipts in excess of
23        $75,000,000 but not exceeding $100,000,000;
24             35% of annual adjusted gross receipts in  excess  of
25        $100,000,000.
26        Beginning  July  1,  2002,  a privilege tax is imposed on
27    persons engaged  in  the  business  of  conducting  riverboat
28    gambling  operations,  based  on  the adjusted gross receipts
29    received by a licensed owner from gambling  games  authorized
30    under this Act at the following rates:
31             15%  of  annual  adjusted  gross  receipts up to and
32        including $25,000,000;
33             22.5% of annual adjusted gross receipts in excess of
 
                            -7-      LRB093 11027 LRD 11699 b
 1        $25,000,000 but not exceeding $50,000,000;
 2             27.5% of annual adjusted gross receipts in excess of
 3        $50,000,000 but not exceeding $75,000,000;
 4             32.5% of annual adjusted gross receipts in excess of
 5        $75,000,000 but not exceeding $100,000,000;
 6             37.5% of annual adjusted gross receipts in excess of
 7        $100,000,000 but not exceeding $150,000,000;
 8             45% of annual adjusted gross receipts in  excess  of
 9        $150,000,000 but not exceeding $200,000,000;
10             50%  of  annual adjusted gross receipts in excess of
11        $200,000,000.
12        The taxes imposed by this Section shall be  paid  by  the
13    licensed  owner to the Board not later than 3:00 o'clock p.m.
14    of the day after the day when the wagers were made.
15        (b)  Until January  1,  1998,  25%  of  the  tax  revenue
16    deposited  in  the State Gaming Fund under this Section shall
17    be paid, subject to appropriation by the General Assembly, to
18    the unit of local government which is designated as the  home
19    dock  of  the riverboat.  Beginning January 1, 1998, from the
20    tax revenue deposited in the State  Gaming  Fund  under  this
21    Section,  an  amount  equal  to 5% of adjusted gross receipts
22    generated by a riverboat shall be paid  monthly,  subject  to
23    appropriation  by  the General Assembly, to the unit of local
24    government that  is  designated  as  the  home  dock  of  the
25    riverboat.
26        (c)  Appropriations, as approved by the General Assembly,
27    may  be  made from the State Gaming Fund to the Department of
28    Revenue  and  the  Department  of  State   Police   for   the
29    administration and enforcement of this Act.
30        (c-5)  After  the payments required under subsections (b)
31    and (c) have been  made,  an  amount  equal  to  15%  of  the
32    adjusted  gross receipts of a licensee, other than a licensee
33    that receives an owners license  under  subsection  (e-5)  of
34    Section  7,  riverboat (1) that relocates pursuant to Section
 
                            -8-      LRB093 11027 LRD 11699 b
 1    11.2, or (2) for which an owners license is initially  issued
 2    after  the  effective  date  of  this amendatory Act of 1999,
 3    whichever comes first, shall be paid from  the  State  Gaming
 4    Fund into the Horse Racing Equity Fund.
 5        (c-10)  Each  year the General Assembly shall appropriate
 6    from the General Revenue Fund  to  the  Education  Assistance
 7    Fund an amount equal to the amount paid into the Horse Racing
 8    Equity  Fund  pursuant  to  subsection  (c-5)  in  the  prior
 9    calendar year.
10        (c-15)  After  the  payments  required  under subsections
11    (b), (c), and (c-5) have been made, an amount equal to 2%  of
12    the  adjusted  gross  receipts  of  a  licensee, other than a
13    licensee that receives an  owners  license  under  subsection
14    (e-5)  of Section 7, riverboat (1) that relocates pursuant to
15    Section 11.2, or (2) for which an owners license is initially
16    issued after the effective date of  this  amendatory  Act  of
17    1999,  whichever  comes  first,  shall  be  paid,  subject to
18    appropriation from  the  General  Assembly,  from  the  State
19    Gaming  Fund  to  each  home rule county with a population of
20    over 3,000,000 inhabitants for the purpose of  enhancing  the
21    county's criminal justice system.
22        (c-20)  Each  year the General Assembly shall appropriate
23    from the General Revenue Fund  to  the  Education  Assistance
24    Fund  an  amount  equal  to the amount paid to each home rule
25    county  with  a  population  of  over  3,000,000  inhabitants
26    pursuant to subsection (c-15) in the prior calendar year.
27        (c-25)  After the  payments  required  under  subsections
28    (b), (c), (c-5) and (c-15) have been made, an amount equal to
29    2% of the adjusted gross receipts of a licensee, other than a
30    licensee  that  receives  an  owners license under subsection
31    (e-5) of Section 7, riverboat (1) that relocates pursuant  to
32    Section 11.2, or (2) for which an owners license is initially
33    issued  after  the  effective  date of this amendatory Act of
34    1999, whichever comes first, shall be  paid  from  the  State
 
                            -9-      LRB093 11027 LRD 11699 b
 1    Gaming  Fund  into  the  State  Universities Athletic Capital
 2    Improvement Fund.
 3        (c-30)  After the payments required under subsections (b)
 4    and (c) have been made, an amount equal to 1% of the adjusted
 5    gross receipts of a licensee that receives an owners  license
 6    under   subsection   (e-5)   shall   be   paid,   subject  to
 7    appropriation by the General Assembly, from the State  Gaming
 8    Fund to each of the following municipalities:
 9             (1)  Alorton;
10             (2)  Brooklyn;
11             (3)  Cahokia;
12             (4)  Centerville;
13             (5)  Venice; and
14             (6)  Washington Park.
15        (c-35)  Each  year the General Assembly shall appropriate
16    from the General Revenue Fund  to  the  Education  Assistance
17    Fund  an  amount  equal  to the amount paid to municipalities
18    under subsection (c-30) in the prior calendar year.
19        (d)  From time to time,  the  Board  shall  transfer  the
20    remainder  of  the  funds  generated  by  this  Act  into the
21    Education Assistance Fund, created by Public Act 86-0018,  of
22    the State of Illinois.
23        (e)  Nothing in this Act shall prohibit the unit of local
24    government  designated as the home dock of the riverboat from
25    entering into agreements with other units of local government
26    in this State or in other states to share its portion of  the
27    tax revenue.
28        (f)  To   the   extent   practicable,   the  Board  shall
29    administer and collect the wagering  taxes  imposed  by  this
30    Section  in  a  manner  consistent  with  the  provisions  of
31    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
32    6c,  8,  9,  and  10 of the Retailers' Occupation Tax Act and
33    Section 3-7 of the Uniform Penalty and Interest Act.
34    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)
 
                            -10-     LRB093 11027 LRD 11699 b
 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.