093_HB2314

 
                                     LRB093 06599 LRD 11167 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, 12, 13, and 23 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 $50,000 $5,000 license fee for
13    each succeeding year and upon a determination  by  the  Board
14    that  the  applicant  is  eligible  for  an  owners   license
15    pursuant  to  this  Act  and the rules of the Board.  Of each
16    $50,000 license fee  for  a  second  or  subsequent  year  of
17    operation of a riverboat, $45,000 shall be transferred to the
18    General  Revenue  Fund  and appropriated to the Department of
19    Human Services to be used for  the  treatment  of  compulsive
20    gambling pursuant to Section 5-20 of the Alcoholism and Other
21    Drug Abuse and Dependency Act.
22        A person, firm or corporation is ineligible to receive an
23    owners license if:
24             (1)  the person has been convicted of a felony under
25        the  laws  of  this State, any other state, or the United
26        States;
27             (2)  the person has been convicted of any  violation
28        of   Article   28  of  the  Criminal  Code  of  1961,  or
29        substantially similar laws of any other jurisdiction;
30             (3)  the person has submitted an application  for  a
31        license under this Act which contains false information;
 
                            -2-      LRB093 06599 LRD 11167 b
 1             (4)  the person is a member of the Board;
 2             (5)  a  person defined in (1), (2), (3) or (4) is an
 3        officer, director or managerial employee of the  firm  or
 4        corporation;
 5             (6)  the   firm  or  corporation  employs  a  person
 6        defined in (1), (2), (3) or (4) who participates  in  the
 7        management or operation of gambling operations authorized
 8        under this Act;
 9             (7)  (blank); or
10             (8)  a  license  of  the person, firm or corporation
11        issued under this Act, or a license  to  own  or  operate
12        gambling  facilities  in any other jurisdiction, has been
13        revoked.
14        (b)  In determining whether to grant an owners license to
15    an applicant, the Board shall consider:
16             (1)  the  character,  reputation,  experience    and
17        financial integrity of the applicants and of any other or
18        separate person that either:
19                  (A)  controls,  directly  or  indirectly,  such
20             applicant, or
21                  (B)  is  controlled, directly or indirectly, by
22             such  applicant  or  by  a  person  which  controls,
23             directly or indirectly, such applicant;
24             (2)  the facilities or proposed facilities  for  the
25        conduct of riverboat gambling;
26             (3)  the  highest  prospective  total  revenue to be
27        derived by  the  State  from  the  conduct  of  riverboat
28        gambling;
29             (4)  the  good faith affirmative action plan of each
30        applicant to recruit, train and upgrade minorities in all
31        employment classifications;
32             (5)  the  financial  ability  of  the  applicant  to
33        purchase and maintain  adequate  liability  and  casualty
34        insurance;
 
                            -3-      LRB093 06599 LRD 11167 b
 1             (6)  whether     the    applicant    has    adequate
 2        capitalization to provide and maintain, for the  duration
 3        of a license, a riverboat; and
 4             (7)  the  extent  to  which the applicant exceeds or
 5        meets other standards  for  the  issuance  of  an  owners
 6        license which the Board may adopt by rule.
 7        (c)  Each  owners  license  shall specify the place where
 8    riverboats shall operate and dock.
 9        (d)  Each applicant shall submit with his application, on
10    forms provided by the Board, 2 sets of his fingerprints.
11        (e)  The  Board  shall  may  issue  up  to  10   licenses
12    authorizing  the  holders of such licenses to own riverboats.
13    In the application for an owners license, the applicant shall
14    state the dock at which the riverboat is based and the  water
15    on  which  the  riverboat  will  be located.  The Board shall
16    issue 5 licenses to become effective not earlier than January
17    1, 1991.  Three of such licenses  shall  authorize  riverboat
18    gambling  on the Mississippi River, or in a municipality that
19    (1) borders on the Mississippi River or is within 5 miles  of
20    the  city  limits  of  a  municipality  that  borders  on the
21    Mississippi River and (2), on  the  effective  date  of  this
22    amendatory  Act of the 93rd General Assembly, has a riverboat
23    conducting  riverboat  gambling  operations  pursuant  to   a
24    license  issued under this Act,  one of which shall authorize
25    riverboat gambling from a home dock in the city of  East  St.
26    Louis, and one of which shall authorize riverboat gambling on
27    the  Mississippi  River or in a municipality that (1) borders
28    on the Mississippi River or is within 5  miles  of  the  city
29    limits  of  a  municipality  that  borders on the Mississippi
30    River and (2) on the effective date of this amendatory Act of
31    the  92nd  General  Assembly  has  a   riverboat   conducting
32    riverboat  gambling  operations  pursuant to a license issued
33    under this Act.  One other license shall authorize  riverboat
34    gambling on the Illinois River south of Marshall County.  The
 
                            -4-      LRB093 06599 LRD 11167 b
 1    Board  shall issue one additional license to become effective
 2    not  earlier  than  March  1,  1992,  which  shall  authorize
 3    riverboat gambling on the Des Plaines River in  Will  County.
 4    The Board may issue 4 additional licenses to become effective
 5    not  earlier  than  March  1, 1992.  In determining the water
 6    upon which riverboats will operate, the Board shall  consider
 7    the  economic benefit which riverboat gambling confers on the
 8    State, and shall seek to assure that all regions of the State
 9    share in the economic benefits of riverboat gambling.
10        In granting all licenses, the Board  may  give  favorable
11    consideration  to  economically depressed areas of the State,
12    to applicants presenting plans which provide for  significant
13    economic  development  over  a  large geographic area, and to
14    applicants who currently operate non-gambling  riverboats  in
15    Illinois.  The Board shall review all applications for owners
16    licenses,  and  shall  inform  each  applicant of the Board's
17    decision.
18        An  owners  licensee  that  receives  an  owners  license
19    authorizing  it  to  begin  conducting   riverboat   gambling
20    operations  pursuant  to  a  dormant license, as that term is
21    defined in Section 13,  shall attain a level of at least  20%
22    minority  person  and  female  ownership, at least 16% and 4%
23    respectively, within a time period prescribed by  the  Board,
24    but not to exceed 12 months from the date the licensee begins
25    conducting   riverboat  gambling  operations.   The  12-month
26    period shall be extended by the amount of time  necessary  to
27    conduct a background investigation pursuant to Section 6. For
28    the   purposes  of  this  Section,  the  terms  "female"  and
29    "minority person" have the meanings provided in Section 2  of
30    the  Business Enterprise for Minorities, Females, and Persons
31    with Disabilities Act.
32        The Board may revoke the owners  license  of  a  licensee
33    which  fails to begin conducting gambling within 15 months of
34    receipt of the Board's approval of  the  application  if  the
 
                            -5-      LRB093 06599 LRD 11167 b
 1    Board  determines  that  license  revocation  is  in the best
 2    interests of the State.
 3        (f)  The first 10 owners licenses issued under  this  Act
 4    shall  permit  the  holder  to  own  up  to  2 riverboats and
 5    equipment thereon for a period of 3 years after the effective
 6    date of the license. Holders of the first 10 owners  licenses
 7    must  pay  the  annual  license  fee  for each of the 3 years
 8    during which they are authorized to own riverboats.
 9        (g)  Upon the termination, expiration, or  revocation  of
10    each  of the first 10 licenses, which shall be issued for a 3
11    year period, all licenses are renewable annually upon payment
12    of the fee and a determination by the Board that the licensee
13    continues to meet all of the requirements of this Act and the
14    Board's rules.  However, for licenses renewed on or after May
15    1, 1998, renewal shall be for a period of 4 years, unless the
16    Board sets a shorter period.
17        (h)  An owners license shall entitle the licensee to  own
18    up  to  2  riverboats.   Except  as otherwise provided by any
19    applicable safety law,  a  licensee  may  have  an  unlimited
20    number of gambling participants on its riverboats. A licensee
21    shall  limit the number of gambling participants to 1,200 for
22    any such owners license. A licensee may operate both  of  its
23    riverboats  concurrently,  provided  that the total number of
24    gambling participants on  both  riverboats  does  not  exceed
25    1,200.  Riverboats  licensed  to  operate  on the Mississippi
26    River and the Illinois River south of Marshall  County  shall
27    have  an  authorized  capacity  of at least 500 persons.  Any
28    other  riverboat  licensed  under  this  Act  shall  have  an
29    authorized capacity of at least 400 persons.
30        (i)  A licensed owner is authorized to apply to the Board
31    for and, if approved therefor, to receive all  licenses  from
32    the  Board  necessary  for  the  operation  of  a  riverboat,
33    including  a  liquor  license, a license to prepare and serve
34    food for human consumption,  and  other  necessary  licenses.
 
                            -6-      LRB093 06599 LRD 11167 b
 1    All  use, occupation and excise taxes which apply to the sale
 2    of food and beverages in this State and all taxes imposed  on
 3    the  sale  or use of tangible personal property apply to such
 4    sales aboard the riverboat.
 5        (j)  The  Board  may  issue  a  license   authorizing   a
 6    riverboat  to  dock in a municipality or approve a relocation
 7    under Section 11.2 only if, prior  to  the  issuance  of  the
 8    license  or  approval, the governing body of the municipality
 9    in which the riverboat will  dock  has  by  a  majority  vote
10    approved  the docking of riverboats in the municipality.  The
11    Board may issue a license authorizing a riverboat to dock  in
12    areas  of  a  county  outside  any  municipality or approve a
13    relocation under Section 11.2 only if, prior to the  issuance
14    of  the license or approval, the governing body of the county
15    has by a majority vote approved of the docking of  riverboats
16    within such areas.
17    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

18        (230 ILCS 10/12) (from Ch. 120, par. 2412)
19        Sec. 12.  Admission tax; fees.
20        (a)  A  tax  is hereby imposed upon admissions authorized
21    pursuant to this Act.  Until July 1, 2002, the rate is $2 per
22    person admitted.  Beginning July 1, 2002, and until the first
23    date after the effective date of this amendatory Act on which
24    riverboat gambling operations are  conducted  pursuant  to  a
25    dormant  license as defined in Section 13, the rate is $3 per
26    person admitted.  Beginning  on  the  first  date  after  the
27    effective  date  of  this  amendatory  Act on which riverboat
28    gambling operations  are  conducted  pursuant  to  a  dormant
29    license  as  defined in Section 13, the rate is $2 per person
30    admitted.  This admission tax is imposed  upon  the  licensed
31    owner conducting gambling.
32             (1)  The  admission  tax  shall  be  paid  for  each
33        admission.
 
                            -7-      LRB093 06599 LRD 11167 b
 1             (2)  (Blank).
 2             (3)  The   riverboat  licensee  may  issue  tax-free
 3        passes to actual and necessary officials and employees of
 4        the licensee or other persons  actually  working  on  the
 5        riverboat.
 6             (4)  The  number  and issuance of tax-free passes is
 7        subject to the rules of the Board,  and  a  list  of  all
 8        persons  to  whom the tax-free passes are issued shall be
 9        filed with the Board.
10        (b)  From  the  tax  imposed  under  subsection  (a),   a
11    municipality  shall receive from the State $1 for each person
12    embarking on a riverboat docked within the municipality,  and
13    a  county  shall  receive  $1  for each person embarking on a
14    riverboat docked within the county but outside the boundaries
15    of any municipality.  The municipality's  or  county's  share
16    shall  be  collected  by the Board on behalf of the State and
17    remitted quarterly by the State, subject to appropriation, to
18    the treasurer of the unit of local government for deposit  in
19    the general fund.
20        (c)  The  licensed  owner  shall pay the entire admission
21    tax  to  the  Board.  Such  payments  shall  be  made  daily.
22    Accompanying each payment shall be a return on forms provided
23    by the Board which shall include other information  regarding
24    admissions  as  the  Board  may  require.   Failure to submit
25    either the payment or the return within  the  specified  time
26    may result in suspension or revocation of the owners license.
27        (d)  The Board shall administer and collect the admission
28    tax  imposed by this Section, to the extent practicable, in a
29    manner consistent with the provisions of Sections 4,  5,  5a,
30    5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of
31    the  Retailers'  Occupation  Tax  Act  and Section 3-7 of the
32    Uniform Penalty and Interest Act.
33    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)
 
                            -8-      LRB093 06599 LRD 11167 b
 1        (230 ILCS 10/13) (from Ch. 120, par. 2413)
 2        Sec. 13.  Wagering tax; rate; distribution.
 3        (a)  Until January 1, 1998,  a  tax  is  imposed  on  the
 4    adjusted   gross   receipts   received  from  gambling  games
 5    authorized under this Act at the rate of 20%.
 6        (a-1)  From  January  1,  1998  until  July  1,  2002,  a
 7    privilege tax is imposed on persons engaged in  the  business
 8    of  conducting  riverboat  gambling  operations, based on the
 9    adjusted gross receipts received by  a  licensed  owner  from
10    gambling  games  authorized  under  this Act at the following
11    rates:
12             15% of annual adjusted  gross  receipts  up  to  and
13        including $25,000,000;
14             20%  of  annual adjusted gross receipts in excess of
15        $25,000,000 but not exceeding $50,000,000;
16             25% of annual adjusted gross receipts in  excess  of
17        $50,000,000 but not exceeding $75,000,000;
18             30%  of  annual adjusted gross receipts in excess of
19        $75,000,000 but not exceeding $100,000,000;
20             35% of annual adjusted gross receipts in  excess  of
21        $100,000,000.
22        (a-2)  Beginning July 1, 2002, a privilege tax is imposed
23    on  persons  engaged  in the business of conducting riverboat
24    gambling operations, based on  the  adjusted  gross  receipts
25    received  by  a licensed owner from gambling games authorized
26    under this Act at the following rates:
27             15% of annual adjusted  gross  receipts  up  to  and
28        including $25,000,000;
29             22.5% of annual adjusted gross receipts in excess of
30        $25,000,000 but not exceeding $50,000,000;
31             27.5% of annual adjusted gross receipts in excess of
32        $50,000,000 but not exceeding $75,000,000;
33             32.5% of annual adjusted gross receipts in excess of
34        $75,000,000 but not exceeding $100,000,000;
 
                            -9-      LRB093 06599 LRD 11167 b
 1             37.5% of annual adjusted gross receipts in excess of
 2        $100,000,000 but not exceeding $150,000,000;
 3             45%  of  annual adjusted gross receipts in excess of
 4        $150,000,000 but not exceeding $200,000,000;
 5             50% of annual adjusted gross receipts in  excess  of
 6        $200,000,000.
 7        The  privilege  tax  imposed  under this subsection (a-2)
 8    shall no longer be imposed  or  collected  beginning  on  the
 9    first  date  after  the effective date of this amendatory Act
10    that riverboat gambling operations are conducted pursuant  to
11    a  dormant  license.   For  the  purposes  of this subsection
12    (a-2), the term "dormant license"  means  an  owners  license
13    that  is  authorized  by  this  Act  under which no riverboat
14    gambling operations are being conducted on the effective date
15    of this amendatory Act of the 93rd General Assembly.
16        (a-3)  Beginning on  the  first  day  on  which  the  tax
17    imposed  under  subsection  (a-2)  is  no  longer  imposed, a
18    privilege tax is imposed on persons engaged in  the  business
19    of  conducting  riverboat  gambling  operations, based on the
20    adjusted gross receipts received by  a  licensed  owner  from
21    gambling  games  authorized  under  this Act at the following
22    rates:
23             15% of annual adjusted  gross  receipts  up  to  and
24        including $25,000,000;
25             20%  of  annual adjusted gross receipts in excess of
26        $25,000,000 but not exceeding $50,000,000;
27             25% of annual adjusted gross receipts in  excess  of
28        $50,000,000 but not exceeding $75,000,000;
29             30%  of  annual adjusted gross receipts in excess of
30        $75,000,000 but not exceeding $100,000,000;
31             35% of annual adjusted gross receipts in  excess  of
32        $100,000,000.
33        (a-10)  The  taxes  imposed by this Section shall be paid
34    by the licensed owner  to  the  Board  not  later  than  3:00
 
                            -10-     LRB093 06599 LRD 11167 b
 1    o'clock  p.m.  of  the day after the day when the wagers were
 2    made.
 3        (b)  Until January  1,  1998,  25%  of  the  tax  revenue
 4    deposited  in  the State Gaming Fund under this Section shall
 5    be paid, subject to appropriation by the General Assembly, to
 6    the unit of local government which is designated as the  home
 7    dock  of  the riverboat.  Beginning January 1, 1998, from the
 8    tax revenue deposited in the State  Gaming  Fund  under  this
 9    Section,  an  amount  equal  to 5% of adjusted gross receipts
10    generated by a riverboat shall be paid  monthly,  subject  to
11    appropriation  by  the General Assembly, to the unit of local
12    government that  is  designated  as  the  home  dock  of  the
13    riverboat.
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 riverboat (1) that relocates
21    pursuant to Section 11.2, or (2) for which an owners  license
22    is   initially  issued  after  the  effective  date  of  this
23    amendatory Act of 1999, whichever comes first, shall be  paid
24    from the State Gaming Fund into the Horse Racing Equity Fund.
25        (c-10)  Each  year the General Assembly shall appropriate
26    from the General Revenue Fund  to  the  Education  Assistance
27    Fund an amount equal to the amount paid into the Horse Racing
28    Equity  Fund  pursuant  to  subsection  (c-5)  in  the  prior
29    calendar year.
30        (c-15)  After  the  payments  required  under subsections
31    (b), (c), and (c-5) have been made, an amount equal to 2%  of
32    the adjusted gross receipts of a riverboat (1) that relocates
33    pursuant  to Section 11.2, or (2) for which an owners license
34    is  initially  issued  after  the  effective  date  of   this
 
                            -11-     LRB093 06599 LRD 11167 b
 1    amendatory Act of 1999, whichever comes first, shall be paid,
 2    subject  to appropriation from the General Assembly, from the
 3    State Gaming Fund to each home rule county with a  population
 4    of  over  3,000,000  inhabitants for the purpose of enhancing
 5    the county's criminal justice system.
 6        (c-20)  Each year the General Assembly shall  appropriate
 7    from  the  General  Revenue  Fund to the Education Assistance
 8    Fund an amount equal to the amount paid  to  each  home  rule
 9    county  with  a  population  of  over  3,000,000  inhabitants
10    pursuant to subsection (c-15) in the prior calendar year.
11        (c-25)  After  the  payments  required  under subsections
12    (b), (c), (c-5) and (c-15) have been made, an amount equal to
13    2% of the adjusted gross receipts of  a  riverboat  (1)  that
14    relocates  pursuant  to  Section  11.2,  or  (2) for which an
15    owners license is initially issued after the  effective  date
16    of  this amendatory Act of 1999, whichever comes first, shall
17    be  paid  from  the  State  Gaming  Fund   into   the   State
18    Universities Athletic Capital Improvement Fund.
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.
 
                            -12-     LRB093 06599 LRD 11167 b
 1    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)

 2        (230 ILCS 10/23) (from Ch. 120, par. 2423)
 3        Sec.  23.   The  State  Gaming  Fund.  On  or  after  the
 4    effective  date  of  this  Act,  all  of  the  fees and taxes
 5    collected pursuant  to  subsections  of  this  Act  shall  be
 6    deposited  into  the State Gaming Fund, a special fund in the
 7    State Treasury, which is hereby created.  Beginning  July  1,
 8    2003,  the  first  $500,000  in fines and penalties collected
 9    pursuant to this Act in  each  State  fiscal  year  shall  be
10    deposited  into  the General Revenue Fund and appropriated to
11    the Department of Human Services to be used for the treatment
12    of compulsive  gambling  pursuant  to  Section  5-20  of  the
13    Alcoholism and other Drug Abuse and Dependency Act. Fines and
14    penalties  collected  in  a fiscal year in excess of $500,000
15    shall be  deposited  into   the  Education  Assistance  Fund,
16    created by Public Act 86-0018, of the State of Illinois.
17    (Source:  P.A. 86-1029.)

18        Section  10.  "An  Act  in relation to gambling, amending
19    named Acts", approved June 25, 1999,  Public  Act  91-40,  is
20    amended by changing Section 30 as follows:

21        (P.A. 91-40, Sec. 30)
22        Sec.  30.  Severability.   If  any  provision of this Act
23    (Public Act 91-40) or the application thereof to  any  person
24    or  circumstance  is  held  invalid, that invalidity does not
25    affect the other provisions or applications of the Act  which
26    can  be  given  effect  without  the  invalid  application or
27    provision, and to this end the provisions  of  this  Act  are
28    severable.   This  severability  applies  without  regard  to
29    whether  the  action  challenging  the  validity  was brought
30    before the effective date of this amendatory Act of the  93rd
31    General Assembly.
 
                            -13-     LRB093 06599 LRD 11167 b
 1        Inseverability.   The provisions of this Act are mutually
 2    dependent and inseverable.  If any provision is held  invalid
 3    other than as applied to a particular person or circumstance,
 4    then this entire Act is invalid.
 5    (Source: P.A. 91-40, eff. 6-25-99.)

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