97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3543

 

Introduced 2/8/2012, by Sen. Wm. Sam McCann

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.811 new
30 ILCS 105/6z-93 new
230 ILCS 10/13  from Ch. 120, par. 2413

    Amends the Riverboat Gambling Act. Provides that certain moneys under the Act that were to be paid to Chicago State University shall instead be transferred in specified amounts to the following funds: the State and County Fair Assistance Fund; the Partners for Conservation Fund, to be used for grants to soil and water conservation districts; the State Cooperative Service Trust Fund, to be used for grants to the State's cooperative extensions; the Illinois Thoroughbred Breeders Fund; and the Colt Stakes Purse Distribution Fund. Amends the State Finance Act to create the State and County Fair Assistance Fund as a special fund in the State treasury. Provides that the Fund shall be administered by the Department of Agriculture, and that the Department of Agriculture shall award grants from moneys appropriated from the State and County Fair Assistance Fund for the development, expansion, or support of county fairs that showcase Illinois agriculture products or byproducts. Effective immediately.


LRB097 19902 AMC 65189 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3543LRB097 19902 AMC 65189 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Sections 5.811 and 6z-93 as follows:
 
6    (30 ILCS 105/5.811 new)
7    Sec. 5.811. The State and County Fair Assistance Fund.
 
8    (30 ILCS 105/6z-93 new)
9    Sec. 6z-93. The State and County Fair Assistance Fund.
10The State and County Fair Assistance Fund is created as a
11special fund in the State treasury. The Fund shall be
12administered by the Department of Agriculture. No moneys shall
13be expended from the State and County Fair Assistance Fund
14except as appropriated by the General Assembly.
15    The Department of Agriculture shall award grants from
16moneys appropriated from the State and County Fair Assistance
17Fund for the development, expansion, or support of county fairs
18that showcase Illinois agriculture products or byproducts. No
19grant may exceed $20,000. Not more than one grant under this
20Section may be made to any one county fair board. Additionally,
21grants under this Section shall be available to the Illinois
22State Fair and the DuQuoin State Fair.
 

 

 

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1    Section 10. The Riverboat Gambling Act is amended by
2changing Section 13 as follows:
 
3    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
4    Sec. 13. Wagering tax; rate; distribution.
5    (a) Until January 1, 1998, a tax is imposed on the adjusted
6gross receipts received from gambling games authorized under
7this Act at the rate of 20%.
8    (a-1) From January 1, 1998 until July 1, 2002, a privilege
9tax is imposed on persons engaged in the business of conducting
10riverboat gambling operations, based on the adjusted gross
11receipts received by a licensed owner from gambling games
12authorized under this Act at the following rates:
13        15% of annual adjusted gross receipts up to and
14    including $25,000,000;
15        20% of annual adjusted gross receipts in excess of
16    $25,000,000 but not exceeding $50,000,000;
17        25% of annual adjusted gross receipts in excess of
18    $50,000,000 but not exceeding $75,000,000;
19        30% of annual adjusted gross receipts in excess of
20    $75,000,000 but not exceeding $100,000,000;
21        35% of annual adjusted gross receipts in excess of
22    $100,000,000.
23    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
24is imposed on persons engaged in the business of conducting

 

 

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1riverboat gambling operations, other than licensed managers
2conducting riverboat gambling operations on behalf of the
3State, based on the adjusted gross receipts received by a
4licensed owner from gambling games authorized under this Act at
5the following rates:
6        15% of annual adjusted gross receipts up to and
7    including $25,000,000;
8        22.5% of annual adjusted gross receipts in excess of
9    $25,000,000 but not exceeding $50,000,000;
10        27.5% of annual adjusted gross receipts in excess of
11    $50,000,000 but not exceeding $75,000,000;
12        32.5% of annual adjusted gross receipts in excess of
13    $75,000,000 but not exceeding $100,000,000;
14        37.5% of annual adjusted gross receipts in excess of
15    $100,000,000 but not exceeding $150,000,000;
16        45% of annual adjusted gross receipts in excess of
17    $150,000,000 but not exceeding $200,000,000;
18        50% of annual adjusted gross receipts in excess of
19    $200,000,000.
20    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
21persons engaged in the business of conducting riverboat
22gambling operations, other than licensed managers conducting
23riverboat gambling operations on behalf of the State, based on
24the adjusted gross receipts received by a licensed owner from
25gambling games authorized under this Act at the following
26rates:

 

 

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1        15% of annual adjusted gross receipts up to and
2    including $25,000,000;
3        27.5% of annual adjusted gross receipts in excess of
4    $25,000,000 but not exceeding $37,500,000;
5        32.5% of annual adjusted gross receipts in excess of
6    $37,500,000 but not exceeding $50,000,000;
7        37.5% of annual adjusted gross receipts in excess of
8    $50,000,000 but not exceeding $75,000,000;
9        45% of annual adjusted gross receipts in excess of
10    $75,000,000 but not exceeding $100,000,000;
11        50% of annual adjusted gross receipts in excess of
12    $100,000,000 but not exceeding $250,000,000;
13        70% of annual adjusted gross receipts in excess of
14    $250,000,000.
15    An amount equal to the amount of wagering taxes collected
16under this subsection (a-3) that are in addition to the amount
17of wagering taxes that would have been collected if the
18wagering tax rates under subsection (a-2) were in effect shall
19be paid into the Common School Fund.
20    The privilege tax imposed under this subsection (a-3) shall
21no longer be imposed beginning on the earlier of (i) July 1,
222005; (ii) the first date after June 20, 2003 that riverboat
23gambling operations are conducted pursuant to a dormant
24license; or (iii) the first day that riverboat gambling
25operations are conducted under the authority of an owners
26license that is in addition to the 10 owners licenses initially

 

 

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1authorized under this Act. For the purposes of this subsection
2(a-3), the term "dormant license" means an owners license that
3is authorized by this Act under which no riverboat gambling
4operations are being conducted on June 20, 2003.
5    (a-4) Beginning on the first day on which the tax imposed
6under subsection (a-3) is no longer imposed, a privilege tax is
7imposed on persons engaged in the business of conducting
8riverboat gambling operations, other than licensed managers
9conducting riverboat gambling operations on behalf of the
10State, based on the adjusted gross receipts received by a
11licensed owner from gambling games authorized under this Act at
12the following rates:
13        15% of annual adjusted gross receipts up to and
14    including $25,000,000;
15        22.5% of annual adjusted gross receipts in excess of
16    $25,000,000 but not exceeding $50,000,000;
17        27.5% of annual adjusted gross receipts in excess of
18    $50,000,000 but not exceeding $75,000,000;
19        32.5% of annual adjusted gross receipts in excess of
20    $75,000,000 but not exceeding $100,000,000;
21        37.5% of annual adjusted gross receipts in excess of
22    $100,000,000 but not exceeding $150,000,000;
23        45% of annual adjusted gross receipts in excess of
24    $150,000,000 but not exceeding $200,000,000;
25        50% of annual adjusted gross receipts in excess of
26    $200,000,000.

 

 

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1    (a-8) Riverboat gambling operations conducted by a
2licensed manager on behalf of the State are not subject to the
3tax imposed under this Section.
4    (a-10) The taxes imposed by this Section shall be paid by
5the licensed owner to the Board not later than 5:00 o'clock
6p.m. of the day after the day when the wagers were made.
7    (a-15) If the privilege tax imposed under subsection (a-3)
8is no longer imposed pursuant to item (i) of the last paragraph
9of subsection (a-3), then by June 15 of each year, each owners
10licensee, other than an owners licensee that admitted 1,000,000
11persons or fewer in calendar year 2004, must, in addition to
12the payment of all amounts otherwise due under this Section,
13pay to the Board a reconciliation payment in the amount, if
14any, by which the licensed owner's base amount exceeds the
15amount of net privilege tax paid by the licensed owner to the
16Board in the then current State fiscal year. A licensed owner's
17net privilege tax obligation due for the balance of the State
18fiscal year shall be reduced up to the total of the amount paid
19by the licensed owner in its June 15 reconciliation payment.
20The obligation imposed by this subsection (a-15) is binding on
21any person, firm, corporation, or other entity that acquires an
22ownership interest in any such owners license. The obligation
23imposed under this subsection (a-15) terminates on the earliest
24of: (i) July 1, 2007, (ii) the first day after the effective
25date of this amendatory Act of the 94th General Assembly that
26riverboat gambling operations are conducted pursuant to a

 

 

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1dormant license, (iii) the first day that riverboat gambling
2operations are conducted under the authority of an owners
3license that is in addition to the 10 owners licenses initially
4authorized under this Act, or (iv) the first day that a
5licensee under the Illinois Horse Racing Act of 1975 conducts
6gaming operations with slot machines or other electronic gaming
7devices. The Board must reduce the obligation imposed under
8this subsection (a-15) by an amount the Board deems reasonable
9for any of the following reasons: (A) an act or acts of God,
10(B) an act of bioterrorism or terrorism or a bioterrorism or
11terrorism threat that was investigated by a law enforcement
12agency, or (C) a condition beyond the control of the owners
13licensee that does not result from any act or omission by the
14owners licensee or any of its agents and that poses a hazardous
15threat to the health and safety of patrons. If an owners
16licensee pays an amount in excess of its liability under this
17Section, the Board shall apply the overpayment to future
18payments required under this Section.
19    For purposes of this subsection (a-15):
20    "Act of God" means an incident caused by the operation of
21an extraordinary force that cannot be foreseen, that cannot be
22avoided by the exercise of due care, and for which no person
23can be held liable.
24    "Base amount" means the following:
25        For a riverboat in Alton, $31,000,000.
26        For a riverboat in East Peoria, $43,000,000.

 

 

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1        For the Empress riverboat in Joliet, $86,000,000.
2        For a riverboat in Metropolis, $45,000,000.
3        For the Harrah's riverboat in Joliet, $114,000,000.
4        For a riverboat in Aurora, $86,000,000.
5        For a riverboat in East St. Louis, $48,500,000.
6        For a riverboat in Elgin, $198,000,000.
7    "Dormant license" has the meaning ascribed to it in
8subsection (a-3).
9    "Net privilege tax" means all privilege taxes paid by a
10licensed owner to the Board under this Section, less all
11payments made from the State Gaming Fund pursuant to subsection
12(b) of this Section.
13    The changes made to this subsection (a-15) by Public Act
1494-839 are intended to restate and clarify the intent of Public
15Act 94-673 with respect to the amount of the payments required
16to be made under this subsection by an owners licensee to the
17Board.
18    (b) Until January 1, 1998, 25% of the tax revenue deposited
19in the State Gaming Fund under this Section shall be paid,
20subject to appropriation by the General Assembly, to the unit
21of local government which is designated as the home dock of the
22riverboat. Beginning January 1, 1998, from the tax revenue
23deposited in the State Gaming Fund under this Section, an
24amount equal to 5% of adjusted gross receipts generated by a
25riverboat shall be paid monthly, subject to appropriation by
26the General Assembly, to the unit of local government that is

 

 

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1designated as the home dock of the riverboat. From the tax
2revenue deposited in the State Gaming Fund pursuant to
3riverboat gambling operations conducted by a licensed manager
4on behalf of the State, an amount equal to 5% of adjusted gross
5receipts generated pursuant to those riverboat gambling
6operations shall be paid monthly, subject to appropriation by
7the General Assembly, to the unit of local government that is
8designated as the home dock of the riverboat upon which those
9riverboat gambling operations are conducted.
10    (c) Appropriations, as approved by the General Assembly,
11may be made from the State Gaming Fund to the Board (i) for the
12administration and enforcement of this Act and the Video Gaming
13Act, (ii) for distribution to the Department of State Police
14and to the Department of Revenue for the enforcement of this
15Act, and (iii) to the Department of Human Services for the
16administration of programs to treat problem gambling.
17    (c-5) Before May 26, 2006 (the effective date of Public Act
1894-804) and beginning on the effective date of this amendatory
19Act of the 95th General Assembly, unless any organization
20licensee under the Illinois Horse Racing Act of 1975 begins to
21operate a slot machine or video game of chance under the
22Illinois Horse Racing Act of 1975 or this Act, after the
23payments required under subsections (b) and (c) have been made,
24an amount equal to 15% of the adjusted gross receipts of (1) an
25owners licensee that relocates pursuant to Section 11.2, (2) an
26owners licensee conducting riverboat gambling operations

 

 

SB3543- 10 -LRB097 19902 AMC 65189 b

1pursuant to an owners license that is initially issued after
2June 25, 1999, or (3) the first riverboat gambling operations
3conducted by a licensed manager on behalf of the State under
4Section 7.3, whichever comes first, shall be paid from the
5State Gaming Fund into the Horse Racing Equity Fund.
6    (c-10) Each year the General Assembly shall appropriate
7from the General Revenue Fund to the Education Assistance Fund
8an amount equal to the amount paid into the Horse Racing Equity
9Fund pursuant to subsection (c-5) in the prior calendar year.
10    (c-15) After the payments required under subsections (b),
11(c), and (c-5) have been made, an amount equal to 2% of the
12adjusted gross receipts of (1) an owners licensee that
13relocates pursuant to Section 11.2, (2) an owners licensee
14conducting riverboat gambling operations pursuant to an owners
15license that is initially issued after June 25, 1999, or (3)
16the first riverboat gambling operations conducted by a licensed
17manager on behalf of the State under Section 7.3, whichever
18comes first, shall be paid, subject to appropriation from the
19General Assembly, from the State Gaming Fund to each home rule
20county with a population of over 3,000,000 inhabitants for the
21purpose of enhancing the county's criminal justice system.
22    (c-20) Each year the General Assembly shall appropriate
23from the General Revenue Fund to the Education Assistance Fund
24an amount equal to the amount paid to each home rule county
25with a population of over 3,000,000 inhabitants pursuant to
26subsection (c-15) in the prior calendar year.

 

 

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1    (c-25) After the payments required under subsections (b),
2(c), (c-5) and (c-15) have been made, an amount equal to 2% of
3the adjusted gross receipts of (1) an owners licensee that
4relocates pursuant to Section 11.2, (2) an owners licensee
5conducting riverboat gambling operations pursuant to an owners
6license that is initially issued after June 25, 1999, or (3)
7the first riverboat gambling operations conducted by a licensed
8manager on behalf of the State under Section 7.3, whichever
9comes first, shall be distributed paid from the State Gaming
10Fund as follows:
11        (A) fifty percent shall be transferred in equal amounts
12    to the State and County Fair Assistance Fund; the Partners
13    for Conservation Fund, to be used for grants to soil and
14    water conservation districts; and the State Cooperative
15    Service Trust Fund, to be used for grants to the State's
16    cooperative extensions; and
17        (B) fifty percent shall be distributed as follows: 60%
18    shall be transferred to the Illinois Thoroughbred Breeders
19    Fund and 40% shall be transferred to the Colt Stakes Purse
20    Distribution Fund.
21    Transfers made pursuant to this subsection (c-25) shall
22supplement, and not supplant, other State funding for these
23purposes. to Chicago State University.
24    (d) From time to time, the Board shall transfer the
25remainder of the funds generated by this Act into the Education
26Assistance Fund, created by Public Act 86-0018, of the State of

 

 

SB3543- 12 -LRB097 19902 AMC 65189 b

1Illinois.
2    (e) Nothing in this Act shall prohibit the unit of local
3government designated as the home dock of the riverboat from
4entering into agreements with other units of local government
5in this State or in other states to share its portion of the
6tax revenue.
7    (f) To the extent practicable, the Board shall administer
8and collect the wagering taxes imposed by this Section in a
9manner consistent with the provisions of Sections 4, 5, 5a, 5b,
105c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
11Retailers' Occupation Tax Act and Section 3-7 of the Uniform
12Penalty and Interest Act.
13(Source: P.A. 95-331, eff. 8-21-07; 95-1008, eff. 12-15-08;
1496-37, eff. 7-13-09; 96-1392, eff. 1-1-11.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.