093_SB1607enr

 
SB1607 Enrolled                      LRB093 02991 LRD 03007 b

 1        AN ACT in relation to gaming.

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

 4        Section  10.  The  Riverboat  Gambling  Act is amended by
 5    changing Sections 2, 4, 6, 7, 10, 11, 11.1, 12, 13,  15,  and
 6    23 and adding Sections 7.1, 7.2, and 7.3 as follows:

 7        (230 ILCS 10/2) (from Ch. 120, par. 2402)
 8        Sec. 2.  Legislative Intent.  (a) This Act is intended to
 9    benefit  the  people  of  the  State of Illinois by assisting
10    economic development and promoting Illinois  tourism  and  by
11    increasing  the  amount of revenues available to the State to
12    assist and support education.
13        (b)  While  authorization  of  riverboat  gambling   will
14    enhance  investment,  development and tourism in Illinois, it
15    is recognized that it will do so successfully only if  public
16    confidence  and trust in the credibility and integrity of the
17    gambling operations and the regulatory process is maintained.
18    Therefore, regulatory provisions of this Act are designed  to
19    strictly  regulate  the facilities, persons, associations and
20    practices related to  gambling  operations  pursuant  to  the
21    police  powers  of  the  State,  including  comprehensive law
22    enforcement supervision.
23        (c)  The Illinois Gaming Board established under this Act
24    should, as soon as possible, inform  each  applicant  for  an
25    owners  license  of  the  Board's  intent  to grant or deny a
26    license.
27    (Source: P.A. 86-1029.)

28        (230 ILCS 10/4) (from Ch. 120, par. 2404)
29        Sec. 4.  Definitions. As used in this Act:
30        (a)  "Board" means the Illinois Gaming Board.
 
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 1        (b)  "Occupational license" means a license issued by the
 2    Board to a person or entity to perform  an  occupation  which
 3    the  Board has identified as requiring a license to engage in
 4    riverboat gambling in Illinois.
 5        (c)  "Gambling game" includes, but  is  not  limited  to,
 6    baccarat,  twenty-one, poker, craps, slot machine, video game
 7    of chance, roulette wheel, klondike table,  punchboard,  faro
 8    layout,  keno  layout, numbers ticket, push card, jar ticket,
 9    or pull tab which is authorized by the Board  as  a  wagering
10    device under this Act.
11        (d)  "Riverboat" means a self-propelled excursion boat, a
12    permanently  moored  barge, or permanently moored barges that
13    are permanently fixed together to operate as one  vessel,  on
14    which  lawful gambling is authorized and licensed as provided
15    in this Act.
16        (e)  "Managers license" means a  license  issued  by  the
17    Board  to  a  person  or entity to manage gambling operations
18    conducted by the State pursuant to Section 7.2 (Blank).
19        (f)  "Dock" means the location where  a  riverboat  moors
20    for  the purpose of embarking passengers for and disembarking
21    passengers from the riverboat.
22        (g)  "Gross receipts" means the  total  amount  of  money
23    exchanged  for  the  purchase  of chips, tokens or electronic
24    cards by riverboat patrons.
25        (h)  "Adjusted gross receipts" means the  gross  receipts
26    less winnings paid to wagerers.
27        (i)  "Cheat"  means  to  alter  the selection of criteria
28    which determine the result of a gambling game or  the  amount
29    or frequency of payment in a gambling game.
30        (j)  "Department" means the Department of Revenue.
31        (k)  "Gambling operation" means the conduct of authorized
32    gambling games upon a riverboat.
33        (l)  "License  bid"  means  the  lump sum amount of money
34    that an applicant bids and agrees to pay the State in  return
 
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 1    for  an  owners license that is re-issued on or after July 1,
 2    2003.
 3        (m)  The terms "minority person" and "female" shall  have
 4    the  same  meaning  as  defined  in Section 2 of the Business
 5    Enterprise  for  Minorities,  Females,   and   Persons   with
 6    Disabilities Act.
 7    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

 8        (230 ILCS 10/6) (from Ch. 120, par. 2406)
 9        Sec. 6.  Application for Owners License.
10        (a)  A  qualified  person  may  apply to the Board for an
11    owners license to conduct a riverboat gambling  operation  as
12    provided in this Act.  The application shall be made on forms
13    provided  by  the Board and shall contain such information as
14    the Board  prescribes,  including  but  not  limited  to  the
15    identity of the riverboat on which such gambling operation is
16    to  be  conducted and the exact location where such riverboat
17    will be docked, a certification that the  riverboat  will  be
18    registered  under this Act at all times during which gambling
19    operations  are  conducted  on  board,  detailed  information
20    regarding the ownership and management of the applicant,  and
21    detailed  personal  information  regarding the applicant. Any
22    application for an owners license to be re-issued on or after
23    June 1, 2003 shall also include the applicant's  license  bid
24    in  a  form  prescribed by the Board. Information provided on
25    the application shall be used  as  a  basis  for  a  thorough
26    background  investigation  which the Board shall conduct with
27    respect to each applicant.  An incomplete  application  shall
28    be cause for denial of a license by the Board.
29        (b)  Applicants  shall  submit with their application all
30    documents, resolutions,  and  letters  of  support  from  the
31    governing  body  that  represents  the municipality or county
32    wherein the licensee will dock.
33        (c)  Each applicant shall disclose the identity of  every
 
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 1    person,  association,  trust  or corporation having a greater
 2    than  1%  direct  or  indirect  pecuniary  interest  in   the
 3    riverboat  gambling  operation  with  respect  to  which  the
 4    license  is  sought.  If the disclosed entity is a trust, the
 5    application shall disclose the names  and  addresses  of  the
 6    beneficiaries;  if  a corporation, the names and addresses of
 7    all stockholders and directors; if a partnership,  the  names
 8    and addresses of all partners, both general and limited.
 9        (d)  An  application  shall  be  filed  with the Board by
10    January 1 of the year preceding any calendar year  for  which
11    an  applicant  seeks an owners license; however, applications
12    for an owners license permitting  operations  on  January  1,
13    1991  shall  be filed by July 1, 1990.  An application fee of
14    $50,000 shall be paid at the time of  filing  to  defray  the
15    costs  associated with the background investigation conducted
16    by the Board.  If  the  costs  of  the  investigation  exceed
17    $50,000, the applicant shall pay the additional amount to the
18    Board.   If  the  costs  of  the  investigation are less than
19    $50,000,  the  applicant  shall  receive  a  refund  of   the
20    remaining  amount.   All  information,  records,  interviews,
21    reports,  statements,  memoranda or other data supplied to or
22    used  by  the  Board  in  the  course  of   its   review   or
23    investigation  of an application for a license under this Act
24    shall be privileged, strictly confidential and shall be  used
25    only  for  the  purpose  of  evaluating  an  applicant.  Such
26    information,  records,   interviews,   reports,   statements,
27    memoranda  or other data shall not be admissible as evidence,
28    nor discoverable in any action of any kind in  any  court  or
29    before  any tribunal, board, agency or person, except for any
30    action deemed necessary by the Board.
31        (e)  The Board shall charge each applicant a fee  set  by
32    the Department of State Police to defray the costs associated
33    with  the  search and classification of fingerprints obtained
34    by the Board with respect  to  the  applicant's  application.
 
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 1    These fees shall be paid into the State Police Services Fund.
 2        (f)  The  licensed  owner  shall  be the person primarily
 3    responsible for the boat itself.  Only one riverboat gambling
 4    operation may be authorized by the Board  on  any  riverboat.
 5    The  applicant must identify each riverboat it intends to use
 6    and certify  that  the  riverboat:  (1)  has  the  authorized
 7    capacity  required in this Act; (2) is accessible to disabled
 8    persons;  and  (3)  is  fully  registered  and  licensed   in
 9    accordance with any applicable laws.
10        (g)  A person who knowingly makes a false statement on an
11    application is guilty of a Class A misdemeanor.
12    (Source: P.A. 91-40, eff. 6-25-99.)

13        (230 ILCS 10/7) (from Ch. 120, par. 2407)
14        Sec. 7.  Owners Licenses.
15        (a)  The  Board  shall  issue owners licenses to persons,
16    firms or corporations which  apply  for  such  licenses  upon
17    payment to the Board of the non-refundable license fee set by
18    the  Board,  upon  payment  of  a $25,000 license fee for the
19    first year of operation and a $5,000  license  fee  for  each
20    succeeding  year  and  upon a determination by the Board that
21    the applicant is eligible for an owners  license pursuant  to
22    this  Act  and  the  rules  of  the Board.  A person, firm or
23    corporation is ineligible to receive an 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;
32             (4)  the person is a member of the Board;
33             (5)  a person defined in (1), (2), (3) or (4) is  an
 
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 1        officer,  director  or managerial employee of the firm or
 2        corporation;
 3             (6)  the  firm  or  corporation  employs  a   person
 4        defined  in  (1), (2), (3) or (4) who participates in the
 5        management or operation of gambling operations authorized
 6        under this Act;
 7             (7)  (blank); or
 8             (8)  a license of the person,  firm  or  corporation
 9        issued  under  this  Act,  or a license to own or operate
10        gambling facilities in any other jurisdiction,  has  been
11        revoked.
12        (b)  In determining whether to grant an owners license to
13    an applicant, the Board shall consider:
14             (1)  the   character,  reputation,  experience   and
15        financial integrity of the applicants and of any other or
16        separate person that either:
17                  (A)  controls,  directly  or  indirectly,  such
18             applicant, or
19                  (B)  is controlled, directly or indirectly,  by
20             such  applicant  or  by  a  person  which  controls,
21             directly or indirectly, such applicant;
22             (2)  the  facilities  or proposed facilities for the
23        conduct of riverboat gambling;
24             (3)  the highest prospective  total  revenue  to  be
25        derived  by  the  State  from  the  conduct  of riverboat
26        gambling;
27             (4)  the  extent  to  which  the  ownership  of  the
28        applicant  reflects  the  diversity  of  the   State   by
29        including minority persons and females and the good faith
30        affirmative  action  plan  of  each applicant to recruit,
31        train and upgrade minority persons and females minorities
32        in all employment classifications;
33             (5)  the  financial  ability  of  the  applicant  to
34        purchase and maintain  adequate  liability  and  casualty
 
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 1        insurance;
 2             (6)  whether     the    applicant    has    adequate
 3        capitalization to provide and maintain, for the  duration
 4        of a license, a riverboat; and
 5             (7)  the  extent  to  which the applicant exceeds or
 6        meets other standards  for  the  issuance  of  an  owners
 7        license which the Board may adopt by rule; and
 8             (8)  The amount of the applicant's license bid.
 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)  The Board may issue up to  10  licenses  authorizing
14    the  holders  of  such  licenses  to  own  riverboats. In the
15    application for an owners license, the applicant shall  state
16    the  dock  at  which  the riverboat is based and the water on
17    which the riverboat will be located.  The Board shall issue 5
18    licenses to become effective  not  earlier  than  January  1,
19    1991.   Three  of  such  licenses  shall  authorize riverboat
20    gambling on the Mississippi River, or in a municipality  that
21    (1)  borders on the Mississippi River or is within 5 miles of
22    the city  limits  of  a  municipality  that  borders  on  the
23    Mississippi  River  and  (2),  on  the effective date of this
24    amendatory Act of the 93rd General Assembly, has a  riverboat
25    conducting   riverboat  gambling  operations  pursuant  to  a
26    license issued under this Act,  one of which shall  authorize
27    riverboat  gambling  from a home dock in the city of East St.
28    Louis, and one of which shall authorize riverboat gambling on
29    the Mississippi River or in a municipality that  (1)  borders
30    on  the  Mississippi  River  or is within 5 miles of the city
31    limits of a municipality  that  borders  on  the  Mississippi
32    River and (2) on the effective date of this amendatory Act of
33    the   92nd   General  Assembly  has  a  riverboat  conducting
34    riverboat gambling operations pursuant to  a  license  issued
 
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 1    under  this  Act. One other license shall authorize riverboat
 2    gambling on the Illinois River south of Marshall County.  The
 3    Board shall issue one additional license to become  effective
 4    not  earlier  than  March  1,  1992,  which  shall  authorize
 5    riverboat  gambling  on the Des Plaines River in Will County.
 6    The Board may issue 4 additional licenses to become effective
 7    not earlier than March 1, 1992.   In  determining  the  water
 8    upon  which riverboats will operate, the Board shall consider
 9    the economic benefit which riverboat gambling confers on  the
10    State, and shall seek to assure that all regions of the State
11    share in the economic benefits of riverboat gambling.
12        In  granting  all  licenses, the Board may give favorable
13    consideration to economically depressed areas of  the  State,
14    to  applicants presenting plans which provide for significant
15    economic development over a large  geographic  area,  and  to
16    applicants  who  currently operate non-gambling riverboats in
17    Illinois. The Board shall review all applications for  owners
18    licenses,  and  shall  inform  each  applicant of the Board's
19    decision. The  Board  may  grant  an  owners  license  to  an
20    applicant that has not submitted the highest license bid, but
21    if  it  does  not  select the highest bidder, the Board shall
22    issue a written decision explaining why another applicant was
23    selected and  identifying  the  factors  set  forth  in  this
24    Section that favored the winning bidder.
25        In addition to any other revocation powers granted to the
26    Board under this Act, the Board may revoke the owners license
27    of a licensee which fails to begin conducting gambling within
28    15   months  of  receipt  of  the  Board's  approval  of  the
29    application if the Board determines that  license  revocation
30    is in the best interests of the State.
31        (f)  The  first  10 owners licenses issued under this Act
32    shall permit the  holder  to  own  up  to  2  riverboats  and
33    equipment thereon for a period of 3 years after the effective
34    date  of the license. Holders of the first 10 owners licenses
 
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 1    must pay the annual license fee  for  each  of  the  3  years
 2    during which they are authorized to own riverboats.
 3        (g)  Upon  the  termination, expiration, or revocation of
 4    each of the first 10 licenses, which shall be issued for a  3
 5    year period, all licenses are renewable annually upon payment
 6    of the fee and a determination by the Board that the licensee
 7    continues to meet all of the requirements of this Act and the
 8    Board's rules.  However, for licenses renewed on or after May
 9    1, 1998, renewal shall be for a period of 4 years, unless the
10    Board sets a shorter period.
11        (h)  An  owners license shall entitle the licensee to own
12    up to 2 riverboats.  A licensee shall  limit  the  number  of
13    gambling participants to 1,200 for any such owners license. A
14    licensee  may  operate  both  of its riverboats concurrently,
15    provided that the total number of  gambling  participants  on
16    both riverboats does not exceed 1,200. Riverboats licensed to
17    operate on the Mississippi River and the Illinois River south
18    of  Marshall  County  shall have an authorized capacity of at
19    least 500 persons.  Any other riverboat licensed  under  this
20    Act  shall  have  an  authorized  capacity  of  at  least 400
21    persons.
22        (i)  A licensed owner is authorized to apply to the Board
23    for and, if approved therefor, to receive all  licenses  from
24    the  Board  necessary  for  the  operation  of  a  riverboat,
25    including  a  liquor  license, a license to prepare and serve
26    food for human consumption,  and  other  necessary  licenses.
27    All  use, occupation and excise taxes which apply to the sale
28    of food and beverages in this State and all taxes imposed  on
29    the  sale  or use of tangible personal property apply to such
30    sales aboard the riverboat.
31        (j)  The  Board  may  issue   or   re-issue   a   license
32    authorizing  a riverboat to dock in a municipality or approve
33    a relocation  under  Section  11.2  only  if,  prior  to  the
34    issuance  or  re-issuance  of  the  license  or approval, the
 
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 1    governing body of the municipality  in  which  the  riverboat
 2    will  dock  has  by  a  majority vote approved the docking of
 3    riverboats in the  municipality.   The  Board  may  issue  or
 4    re-issue  a  license authorizing a riverboat to dock in areas
 5    of a county outside any municipality or approve a  relocation
 6    under  Section  11.2  only  if,  prior  to  the  issuance  or
 7    re-issuance of the license or approval, the governing body of
 8    the  county has by a majority vote approved of the docking of
 9    riverboats within such areas.
10    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

11        (230 ILCS 10/7.1 new)
12        Sec. 7.1.  Re-issuance of revoked or  non-renewed  owners
13    licenses.
14        (a)  If  an  owners license terminates or expires without
15    renewal or the Board revokes or determines not  to  renew  an
16    owners  license  (including,  without  limitation,  an owners
17    license for a licensee  that  was  not  conducting  riverboat
18    gambling  operations  on January 1, 1998) and that revocation
19    or determination  is  final,  the  Board  may  re-issue  such
20    license  to  a  qualified  applicant  pursuant to an open and
21    competitive bidding process, as set forth in Section 7.5, and
22    subject to the maximum  number  of  authorized  licenses  set
23    forth in Section 7(e).
24        (b)  To  be  a  qualified  applicant,  a person, firm, or
25    corporation cannot be ineligible to receive an owners license
26    under Section 7(a) and must  submit  an  application  for  an
27    owners  license  that  complies  with  Section  6.  Each such
28    applicant  must  also  submit  evidence  to  the  Board  that
29    minority persons and females hold ownership interests in  the
30    applicant of at least 16% and 4% respectively.
31        (c)  Notwithstanding  anything to the contrary in Section
32    7(e), an applicant may apply to the  Board  for  approval  of
33    relocation of a re-issued license to a new home dock location
 
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 1    authorized  under  Section  3(c) upon receipt of the approval
 2    from the municipality or county, as the case may be, pursuant
 3    to Section 7(j).
 4        (d) In determining whether to grant  a  re-issued  owners
 5    license  to an applicant, the Board shall consider all of the
 6    factors set forth in Sections 7(b) and (e)  as  well  as  the
 7    amount  of  the  applicant's license bid. The Board may grant
 8    the re-issued owners license to an  applicant  that  has  not
 9    submitted  the highest license bid, but if it does not select
10    the highest bidder, the Board shall issue a written  decision
11    explaining why another applicant was selected and identifying
12    the  factors  set forth in Sections 7(b) and (e) that favored
13    the winning bidder.
14        (e) Re-issued owners licenses shall be subject to  annual
15    license  fees  as  provided  for in Section 7(a) and shall be
16    governed by the provisions of Sections 7(f),  (g),  (h),  and
17    (i).

18        (230 ILCS 10/7.2 new)
19        Sec.   7.2.  Temporary   operating  permits.  Any  person
20    operating under a temporary operating permit issued  pursuant
21    to  86  Ill.  Admin.  Code  3000.230  shall  be  deemed to be
22    operating under the  authority  of  an  owner's  license  for
23    purposes  of  Section  13 of this Act. This Section shall not
24    affect in any way the licensure requirements of this Act.

25        (230 ILCS 10/7.3 new)
26        Sec. 7.3.  State conduct of gambling operations.
27        (a)  If, after reviewing each application for a re-issued
28    license, the Board determines that  the  highest  prospective
29    total  revenue  to  the  State  would  be  derived from State
30    conduct of the gambling operation in lieu of  re-issuing  the
31    license,  the  Board  shall  inform  each  applicant  of  its
32    decision.   The  Board  shall  thereafter have the authority,
 
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 1    without obtaining an owners  license,  to  conduct  riverboat
 2    gambling   operations   as   previously   authorized  by  the
 3    terminated, expired, revoked, or nonrenewed license through a
 4    licensed manager selected pursuant to an open and competitive
 5    bidding process as set forth in Section 7.5 and  as  provided
 6    in Section 7.4.
 7        (b)  The  Board  may  locate  any  riverboat  on  which a
 8    gambling operation is conducted by the State in any home dock
 9    location authorized by Section 3(c) upon receipt of  approval
10    from   a   majority   vote  of  the  governing  body  of  the
11    municipality or county, as the case  may  be,  in  which  the
12    riverboat will dock.
13        (c)  The  Board  shall  have  jurisdiction over and shall
14    supervise all gambling  operations  conducted  by  the  State
15    provided  for in this Act and shall have all powers necessary
16    and proper to fully and effectively execute the provisions of
17    this Act relating to gambling  operations  conducted  by  the
18    State.
19        (d)  The  maximum  number  of  owners licenses authorized
20    under Section 7(e) shall be reduced by one for each  instance
21    in  which  the  Board  authorizes  the  State  to  conduct  a
22    riverboat  gambling operation under subsection (a) in lieu of
23    re-issuing a license to an applicant under Section 7.1.

24        (230 ILCS 10/7.4 new)
25        Sec. 7.4.  Managers licenses.
26        (a) A qualified person may  apply  to  the  Board  for  a
27    managers license to operate and manage any gambling operation
28    conducted  by  the  State.  The  application shall be made on
29    forms  provided  by  the  Board  and   shall   contain   such
30    information  as  the  Board  prescribes,  including  but  not
31    limited  to  information  required in Sections 6(a), (b), and
32    (c) and information  relating  to  the  applicant's  proposed
33    price  to manage State gambling operations and to provide the
 
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 1    riverboat, gambling  equipment,  and  supplies  necessary  to
 2    conduct State gambling operations.
 3        (b)  Each  applicant  must  submit  evidence to the Board
 4    that minority persons and females hold ownership interests in
 5    the applicant of at least 16% and 4%, respectively.
 6        (c) A person,  firm,  or  corporation  is  ineligible  to
 7    receive a managers license if:
 8             (1)  the person has been convicted of a felony under
 9        the laws of this State, any other state,  or  the  United
10        States;
11             (2)  the  person has been convicted of any violation
12        of  Article  28  of  the  Criminal  Code  of   1961,   or
13        substantially similar laws of any other jurisdiction;
14             (3)  the  person  has submitted an application for a
15        license under this Act which contains false information;
16             (4) the person is a member of the Board;
17             (5) a person defined in (1), (2), (3), or (4) is  an
18        officer,  director, or managerial employee of the firm or
19        corporation;
20             (6) the firm or corporation employs a person defined
21        in  (1),  (2),  (3),  or  (4)  who  participates  in  the
22        management or operation of gambling operations authorized
23        under this Act; or
24             (7) a license of the person,  firm,  or  corporation
25        issued  under  this  Act,  or a license to own or operate
26        gambling facilities in any other jurisdiction,  has  been
27        revoked.
28        (d)   Each   applicant  shall  submit  with  his  or  her
29    application, on forms prescribed by the Board, 2 sets of  his
30    or her fingerprints.
31        (e)  The  Board shall charge each applicant a fee, set by
32    the Board, to defray the costs associated with the background
33    investigation conducted by the Board.
34        (f) A person who knowingly makes a false statement on  an
 
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 1    application is guilty of a Class A misdemeanor.
 2        (g)  The  managers  license  shall  be  for a term not to
 3    exceed 10 years, shall be renewable at  the  Board's  option,
 4    and  shall  contain  such  terms  and provisions as the Board
 5    deems necessary to protect or  enhance  the  credibility  and
 6    integrity  of  State gambling operations, achieve the highest
 7    prospective total revenue to the State, and  otherwise  serve
 8    the interests of the citizens of Illinois.
 9        (h) Issuance of a managers license shall be subject to an
10    open and competitive bidding process. The Board may select an
11    applicant  other  than the lowest bidder by price. If it does
12    not select the lowest bidder, the Board shall issue a  notice
13    of who the lowest bidder was and a written decision as to why
14    another bidder was selected.

15        (230 ILCS 10/7.5 new)
16        Sec. 7.5.  Competitive Bidding. When the Board determines
17    that  it  will re-issue an owners license pursuant to an open
18    and competitive bidding process, as set forth in Section 7.1,
19    or that it will issue a managers license pursuant to an  open
20    and competitive bidding process, as set forth in Section 7.4,
21    the  open and competitive bidding process shall adhere to the
22    following procedures:
23        (1)  The Board shall make  applications  for  owners  and
24    managers  licenses  available  to  the  public  and  allow  a
25    reasonable  time for applicants to submit applications to the
26    Board.
27        (2)  During the filing  period  for  owners  or  managers
28    license applications, the Board may retain the services of an
29    investment banking firm to assist the Board in conducting the
30    open and competitive bidding process.
31        (3)  After  receiving all of the bid proposals, the Board
32    shall open all  of  the  proposals  in  a  public  forum  and
33    disclose  the  prospective  owners or managers names, venture
 
SB1607 Enrolled            -15-      LRB093 02991 LRD 03007 b
 1    partners, if any, and, in the case of applicants  for  owners
 2    licenses, the locations of the proposed development sites.
 3        (4)  The Board shall summarize the terms of the proposals
 4    and may make this summary available to the public.
 5        (5)  The  Board  shall  evaluate  the  proposals within a
 6    reasonable time and select no more than 3 final applicants to
 7    make presentations of their proposals to the Board.
 8        (6)  The final applicants shall make their  presentations
 9    to  the  Board  on the same day during an open session of the
10    Board.
11        (7)  As   soon   as   practicable   after   the    public
12    presentations  by  the  final  applicants,  the Board, in its
13    discretion, may conduct  further  negotiations  among  the  3
14    final   applicants.  During  such  negotiations,  each  final
15    applicant may increase its license bid or  otherwise  enhance
16    its bid proposal. At the conclusion of such negotiations, the
17    Board  shall  select  the  winning  proposal.  In the case of
18    negotiations for an owners license, the  Board  may,  at  the
19    conclusion  of  such  negotiations,  make  the  determination
20    allowed under Section 7.3(a).
21        (8)  Upon  selection  of  a  winning bid, the Board shall
22    evaluate the winning bid within a reasonable period  of  time
23    for  licensee  suitability  in accordance with all applicable
24    statutory and regulatory criteria.
25        (9)  If the winning bidder is unable or  otherwise  fails
26    to  consummate  the  transaction,  (including  if  the  Board
27    determines  that  the  winning  bidder  does  not satisfy the
28    suitability  requirements),  the  Board  may,  on  the   same
29    criteria,  select  from  the  remaining  bidders  or make the
30    determination allowed under Section 7.3(a).

31        (230 ILCS 10/10) (from Ch. 120, par. 2410)
32        Sec. 10.  Bond of licensee.  Before an owners license  is
33    issued  or  re-issued  or  a  managers license is issued, the
 
SB1607 Enrolled            -16-      LRB093 02991 LRD 03007 b
 1    licensee shall post a bond in the  sum  of  $200,000  to  the
 2    State  of  Illinois. The bond shall be used to guarantee that
 3    the licensee faithfully makes the payments, keeps  his  books
 4    and  records  and  makes  reports,  and conducts his games of
 5    chance in conformity with this Act and the rules  adopted  by
 6    the  Board.   The  bond  shall not be canceled by a surety on
 7    less than 30 days notice in writing to the Board. If  a  bond
 8    is  canceled  and  the licensee fails to file a new bond with
 9    the Board in the required amount on or before  the  effective
10    date   of  cancellation,  the  licensee's  license  shall  be
11    revoked.  The total and aggregate liability of the surety  on
12    the bond is limited to the amount specified in the bond.
13    (Source: P.A. 86-1029.)

14        (230 ILCS 10/11) (from Ch. 120, par. 2411)
15        Sec.  11.  Conduct of gambling. Gambling may be conducted
16    by licensed owners or licensed  managers  on  behalf  of  the
17    State aboard riverboats, subject to the following standards:
18             (1)  A   licensee  may  conduct  riverboat  gambling
19        authorized  under  this  Act  regardless  of  whether  it
20        conducts excursion cruises.  A licensee  may  permit  the
21        continuous  ingress  and  egress  of  passengers  for the
22        purpose of gambling.
23             (2)  (Blank).
24             (3)  Minimum and maximum wagers on  games  shall  be
25        set by the licensee.
26             (4)  Agents of the Board and the Department of State
27        Police  may  board  and inspect any riverboat at any time
28        for the purpose of determining whether this Act is  being
29        complied  with.   Every riverboat, if under way and being
30        hailed by a law  enforcement  officer  or  agent  of  the
31        Board, must stop immediately and lay to.
32             (5)  Employees  of the Board shall have the right to
33        be present on the riverboat  or  on  adjacent  facilities
 
SB1607 Enrolled            -17-      LRB093 02991 LRD 03007 b
 1        under the control of the licensee.
 2             (6)  Gambling  equipment  and  supplies  customarily
 3        used  in  conducting riverboat gambling must be purchased
 4        or leased only from suppliers licensed for  such  purpose
 5        under this Act.
 6             (7)  Persons licensed under this Act shall permit no
 7        form of wagering on gambling games except as permitted by
 8        this Act.
 9             (8)  Wagers  may  be  received  only  from  a person
10        present on a licensed riverboat.  No person present on  a
11        licensed  riverboat  shall  place  or  attempt to place a
12        wager on behalf of another person who is not  present  on
13        the riverboat.
14             (9)  Wagering  shall  not be conducted with money or
15        other negotiable currency.
16             (10)  A person under age 21 shall not  be  permitted
17        on  an  area  of  a  riverboat  where  gambling  is being
18        conducted, except for a person at least 18 years  of  age
19        who  is  an employee of the riverboat gambling operation.
20        No employee under  age  21  shall  perform  any  function
21        involved  in gambling by the patrons. No person under age
22        21 shall be permitted to make a wager under this Act.
23             (11)  Gambling excursion cruises are permitted  only
24        when  the waterway for which the riverboat is licensed is
25        navigable, as determined by  the  Board  in  consultation
26        with  the  U.S.  Army  Corps of Engineers. This paragraph
27        (11) does not limit the ability of a licensee to  conduct
28        gambling   authorized   under   this  Act  when  gambling
29        excursion cruises are not permitted.
30             (12)  All tokens, chips or electronic cards used  to
31        make  wagers  must  be purchased from a licensed owner or
32        manager either  aboard  a  riverboat  or  at  an  onshore
33        facility  which  has been approved by the Board and which
34        is located where the riverboat docks. The  tokens,  chips
 
SB1607 Enrolled            -18-      LRB093 02991 LRD 03007 b
 1        or  electronic  cards  may  be  purchased  by means of an
 2        agreement under which the owner or manager extends credit
 3        to the patron.  Such tokens, chips  or  electronic  cards
 4        may  be  used  while  aboard  the  riverboat only for the
 5        purpose of making wagers on gambling games.
 6             (13)  Notwithstanding any other Section of this Act,
 7        in addition to the other licenses authorized  under  this
 8        Act,  the Board may issue special event licenses allowing
 9        persons  who  are  not  otherwise  licensed  to   conduct
10        riverboat   gambling   to  conduct  such  gambling  on  a
11        specified date or series of  dates.   Riverboat  gambling
12        under  such  a  license may take place on a riverboat not
13        normally used for riverboat gambling.   The  Board  shall
14        establish  standards, fees and fines for, and limitations
15        upon, such licenses, which may differ from the standards,
16        fees, fines and limitations  otherwise  applicable  under
17        this  Act.   All  such  fees  shall be deposited into the
18        State Gaming Fund.  All such  fines  shall  be  deposited
19        into the Education Assistance Fund, created by Public Act
20        86-0018, of the State of Illinois.
21             (14)  In  addition  to  the  above, gambling must be
22        conducted in accordance with all  rules  adopted  by  the
23        Board.
24    (Source: P.A. 91-40, eff. 6-25-99.)

25        (230 ILCS 10/11.1) (from Ch. 120, par. 2411.1)
26        Sec.  11.1.   Collection  of  amounts  owing under credit
27    agreements.    Notwithstanding   any   applicable   statutory
28    provision  to  the  contrary, a licensed owner or manager who
29    extends credit to a riverboat  gambling  patron  pursuant  to
30    Section  11  (a)  (12) of this Act is expressly authorized to
31    institute a cause of action to collect any  amounts  due  and
32    owing  under  the extension of credit, as well as the owner's
33    or manager's costs, expenses and reasonable  attorney's  fees
 
SB1607 Enrolled            -19-      LRB093 02991 LRD 03007 b
 1    incurred in collection.
 2    (Source: P.A. 86-1029; 86-1389; 87-826.)

 3        (230 ILCS 10/12) (from Ch. 120, par. 2412)
 4        Sec. 12. Admission tax; fees.
 5        (a)  A   tax   is   hereby  imposed  upon  admissions  to
 6    riverboats operated by licensed owners authorized pursuant to
 7    this Act.  Until July 1, 2002, the  rate  is  $2  per  person
 8    admitted.   From  Beginning  July 1, 2002 until July 1, 2003,
 9    the rate is $3 per person admitted. Beginning July  1,  2003,
10    for  a  licensee  that admitted 1,000,000 persons or fewer in
11    the previous  calendar  year,  the  rate  is  $3  per  person
12    admitted;  for  a  licensee that admitted more than 1,000,000
13    but no more than 2,300,000 persons in the  previous  calendar
14    year,  the rate is $4 per person admitted; and for a licensee
15    that admitted more than 2,300,000  persons  in  the  previous
16    calendar  year,  the  rate  is  $5  per person admitted. This
17    admission tax is imposed upon the licensed  owner  conducting
18    gambling.
19             (1)  The  admission  tax  shall  be  paid  for  each
20        admission.
21             (2)  (Blank).
22             (3)  The   riverboat  licensee  may  issue  tax-free
23        passes to actual and necessary officials and employees of
24        the licensee or other persons  actually  working  on  the
25        riverboat.
26             (4)  The  number  and issuance of tax-free passes is
27        subject to the rules of the Board,  and  a  list  of  all
28        persons  to  whom the tax-free passes are issued shall be
29        filed with the Board.
30        (a-5)  A fee is hereby imposed upon  admissions  operated
31    by  licensed  managers  on  behalf  of  the State pursuant to
32    Section 7.3 at the rates provided in this  subsection  (a-5).
33    For  a  licensee  that admitted 1,000,000 persons or fewer in
 
SB1607 Enrolled            -20-      LRB093 02991 LRD 03007 b
 1    the previous  calendar  year,  the  rate  is  $3  per  person
 2    admitted;  for  a  licensee that admitted more than 1,000,000
 3    but no more than 2,300,000 persons in the  previous  calendar
 4    year,  the rate is $4 per person admitted; and for a licensee
 5    that admitted more than 2,300,000  persons  in  the  previous
 6    calendar year, the rate is $5 per person admitted.
 7             (1)  The  admission  fee  shall  be  paid  for  each
 8        admission.
 9             (2)  (Blank).
10             (3)  The  licensed manager may issue fee-free passes
11        to actual and necessary officials and  employees  of  the
12        manager   or   other  persons  actually  working  on  the
13        riverboat.
14             (4)  The number and issuance of fee-free  passes  is
15        subject  to  the  rules  of  the Board, and a list of all
16        persons to whom the fee-free passes are issued  shall  be
17        filed with the Board.
18        (b)  From  the  tax  imposed under subsection (a) and the
19    fee imposed under  subsection  (a-5),  a  municipality  shall
20    receive  from  the  State  $1  for each person embarking on a
21    riverboat docked within the municipality, and a county  shall
22    receive  $1  for  each person embarking on a riverboat docked
23    within  the  county  but  outside  the  boundaries   of   any
24    municipality.   The municipality's or county's share shall be
25    collected by the Board on behalf of the  State  and  remitted
26    quarterly  by  the  State,  subject  to appropriation, to the
27    treasurer of the unit of local government for deposit in  the
28    general fund.
29        (c)  The  licensed  owner  shall pay the entire admission
30    tax to the Board and  the  licensed  manager  shall  pay  the
31    entire  admission  fee  to  the Board. Such payments shall be
32    made daily. Accompanying each payment shall be  a  return  on
33    forms  provided  by  the  Board  which  shall  include  other
34    information  regarding  admissions  as the Board may require.
 
SB1607 Enrolled            -21-      LRB093 02991 LRD 03007 b
 1    Failure to submit either the payment or the return within the
 2    specified time may result in suspension or revocation of  the
 3    owners or managers license.
 4        (d)  The Board shall administer and collect the admission
 5    tax  imposed by this Section, to the extent practicable, in a
 6    manner consistent with the provisions of Sections 4,  5,  5a,
 7    5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of
 8    the  Retailers'  Occupation  Tax  Act  and Section 3-7 of the
 9    Uniform Penalty and Interest Act.
10    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)

11        (230 ILCS 10/13) (from Ch. 120, par. 2413)
12        Sec. 13.  Wagering tax; rate; distribution.
13        (a)  Until January 1, 1998,  a  tax  is  imposed  on  the
14    adjusted   gross   receipts   received  from  gambling  games
15    authorized under this Act at the rate of 20%.
16        From January 1, 1998 until July 1, 2002, a privilege  tax
17    is  imposed  on persons engaged in the business of conducting
18    riverboat gambling operations, based on  the  adjusted  gross
19    receipts  received  by  a  licensed owner from gambling games
20    authorized under this Act at the following rates:
21             15% of annual adjusted  gross  receipts  up  to  and
22        including $25,000,000;
23             20%  of  annual adjusted gross receipts in excess of
24        $25,000,000 but not exceeding $50,000,000;
25             25% of annual adjusted gross receipts in  excess  of
26        $50,000,000 but not exceeding $75,000,000;
27             30%  of  annual adjusted gross receipts in excess of
28        $75,000,000 but not exceeding $100,000,000;
29             35% of annual adjusted gross receipts in  excess  of
30        $100,000,000.
31        Beginning  July  1,  2002,  a privilege tax is imposed on
32    persons engaged  in  the  business  of  conducting  riverboat
33    gambling  operations, other than licensed managers conducting
 
SB1607 Enrolled            -22-      LRB093 02991 LRD 03007 b
 1    riverboat gambling operations on behalf of the State,   based
 2    on  the  adjusted gross receipts received by a licensed owner
 3    from  gambling  games  authorized  under  this  Act  at   the
 4    following rates:
 5             15%  of  annual  adjusted  gross  receipts up to and
 6        including $25,000,000;
 7             22.5% of annual adjusted gross receipts in excess of
 8        $25,000,000 but not exceeding $50,000,000;
 9             27.5% of annual adjusted gross receipts in excess of
10        $50,000,000 but not exceeding $75,000,000;
11             32.5% of annual adjusted gross receipts in excess of
12        $75,000,000 but not exceeding $100,000,000;
13             37.5% of annual adjusted gross receipts in excess of
14        $100,000,000 but not exceeding $150,000,000;
15             45% of annual adjusted gross receipts in  excess  of
16        $150,000,000 but not exceeding $200,000,000;
17             50%  of  annual adjusted gross receipts in excess of
18        $200,000,000.
19    Riverboat gambling operations conducted by a licensed manager
20    on behalf of the State are not subject  to  the  tax  imposed
21    under this Section.
22        The  taxes  imposed  by this Section shall be paid by the
23    licensed owner to the Board not later than 3:00 o'clock  p.m.
24    of the day after the day when the wagers were made.
25        (b)  Until  January  1,  1998,  25%  of  the  tax revenue
26    deposited in the State Gaming Fund under this  Section  shall
27    be paid, subject to appropriation by the General Assembly, to
28    the  unit of local government which is designated as the home
29    dock of the riverboat. Beginning January 1,  1998,  from  the
30    tax  revenue  deposited  in  the State Gaming Fund under this
31    Section, an amount equal to 5%  of  adjusted  gross  receipts
32    generated  by  a  riverboat shall be paid monthly, subject to
33    appropriation by the General Assembly, to the unit  of  local
34    government  that  is  designated  as  the  home  dock  of the
 
SB1607 Enrolled            -23-      LRB093 02991 LRD 03007 b
 1    riverboat. From the tax revenue deposited in the State Gaming
 2    Fund pursuant to riverboat gambling operations conducted by a
 3    licensed manager on behalf of the State, an amount  equal  to
 4    5%  of  adjusted  gross  receipts generated pursuant to those
 5    riverboat gambling operations shall be paid monthly,  subject
 6    to  appropriation  by  the  General  Assembly, to the unit of
 7    local government that is designated as the home dock  of  the
 8    riverboat  upon which those riverboat gambling operations are
 9    conducted.
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 (1) an owners licensee a riverboat
17    (1) that relocates pursuant to Section 11.2, or (2) an owners
18    license conducting riverboat gambling operations pursuant  to
19    for  which  an  owners license that is initially issued after
20    June 25, the effective date of this amendatory Act  of  1999,
21    or (3) the first riverboat gambling operations conducted by a
22    licensed  manager  on  behalf of the State under Section 7.2,
23    whichever comes first, shall be paid from  the  State  Gaming
24    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  (1)  an owners licensee a
33    riverboat (1) that relocates pursuant to Section 11.2, or (2)
34    an owners licensee conducting riverboat  gambling  operations
 
SB1607 Enrolled            -24-      LRB093 02991 LRD 03007 b
 1    pursuant  to  for  which  an owners license that is initially
 2    issued after June 25, the effective date of  this  amendatory
 3    Act  of  1999, or (3) the first riverboat gambling operations
 4    conducted by a licensed manager on behalf of the State  under
 5    Section 7.2, whichever comes first, shall be paid, subject to
 6    appropriation  from  the  General  Assembly,  from  the State
 7    Gaming Fund to each home rule county  with  a  population  of
 8    over  3,000,000  inhabitants for the purpose of enhancing the
 9    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 (1) an owners license  a
18    riverboat (1) that relocates pursuant to Section 11.2, or (2)
19    an  owners  license  conducting riverboat gambling operations
20    pursuant to for which an owners  license  that  is  initially
21    issued  after  June 25, the effective date of this amendatory
22    Act of 1999, or (3) the first riverboat  gambling  operations
23    conducted  by a licensed manager on behalf of the State under
24    Section 7.2, whichever comes first, shall be  paid  from  the
25    State  Gaming Fund to Chicago State University into the State
26    Universities Athletic Capital Improvement Fund.
27        (d)  From time to time,  the  Board  shall  transfer  the
28    remainder  of  the  funds  generated  by  this  Act  into the
29    Education Assistance Fund, created by Public Act 86-0018,  of
30    the State of Illinois.
31        (e)  Nothing in this Act shall prohibit the unit of local
32    government  designated as the home dock of the riverboat from
33    entering into agreements with other units of local government
34    in this State or in other states to share its portion of  the
 
SB1607 Enrolled            -25-      LRB093 02991 LRD 03007 b
 1    tax revenue.
 2        (f)  To   the   extent   practicable,   the  Board  shall
 3    administer and collect the wagering  taxes  imposed  by  this
 4    Section  in  a  manner  consistent  with  the  provisions  of
 5    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
 6    6c,  8,  9,  and  10 of the Retailers' Occupation Tax Act and
 7    Section 3-7 of the Uniform Penalty and Interest Act.
 8    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)

 9        (230 ILCS 10/15) (from Ch. 120, par. 2415)
10        Sec. 15.  Audit of Licensee Operations.  Within  90  days
11    after  the  end  of  each  quarter  of  each fiscal year, the
12    licensed owner or manager shall  transmit  to  the  Board  an
13    audit  of  the  financial  transactions  and condition of the
14    licensee's total operations.  All audits shall  be  conducted
15    by  certified public accountants selected by the Board.  Each
16    certified public accountant must be registered in  the  State
17    of  Illinois  under  the  Illinois Public Accounting Act. The
18    compensation for each certified public  accountant  shall  be
19    paid  directly  by  the  licensed  owner  or  manager  to the
20    certified public accountant.
21    (Source: P.A. 86-1029; 86-1389.)

22        (230 ILCS 10/23) (from Ch. 120, par. 2423)
23        Sec. 23.   The  State  Gaming  Fund.   On  or  after  the
24    effective  date  of  this  Act,  all  of  the  fees and taxes
25    collected pursuant  to  subsections  of  this  Act  shall  be
26    deposited  into  the State Gaming Fund, a special fund in the
27    State Treasury, which is hereby created. The  adjusted  gross
28    receipts  of any riverboat gambling operations conducted by a
29    licensed manager on behalf of the State remaining  after  the
30    payment  of  the  fees  and  expenses of the licensed manager
31    shall be deposited into the State  Gaming  Fund.   Fines  and
32    penalties  collected  pursuant to this Act shall be deposited
 
SB1607 Enrolled            -26-      LRB093 02991 LRD 03007 b
 1    into the Education Assistance Fund,  created  by  Public  Act
 2    86-0018, of the State of Illinois.
 3    (Source: P.A. 86-1029.)

 4        Section  15.  "An  Act  in relation to gambling, amending
 5    named Acts", approved June 25, 1999,  Public  Act  91-40,  is
 6    amended by changing Section 30 as follows:

 7        (P.A. 91-40, Sec. 30)
 8        Sec.  30.  Severability.   If  any  provision of this Act
 9    (Public Act 91-40) or the application thereof to  any  person
10    or  circumstance  is  held  invalid, that invalidity does not
11    affect the other provisions or applications of the Act  which
12    can  be  given  effect  without  the  invalid  application or
13    provision, and to this end the provisions  of  this  Act  are
14    severable.   This  severability  applies  without  regard  to
15    whether  the  action  challenging  the  validity  was brought
16    before the effective date of this amendatory Act of the  93rd
17    General Assembly.
18        Inseverability.   The provisions of this Act are mutually
19    dependent and inseverable.  If any provision is held  invalid
20    other than as applied to a particular person or circumstance,
21    then this entire Act is invalid.
22    (Source: P.A. 91-40, eff. 6-25-99.)

23        Section  97.   Severability.   In accordance with Section
24    1.31 of the Statute on Statutes, the provisions of  this  Act
25    are  severable.   If any provision of this amendatory Act, or
26    the application of any provision of this  amendatory  Act  to
27    any  person or circumstance, is held invalid, such invalidity
28    shall not affect other provisions  or  applications  of  this
29    amendatory  Act which can be given effect without the invalid
30    provision  or  application,  and  the  application  of   this
31    amendatory  Act  to persons or circumstances other than those
 
SB1607 Enrolled            -27-      LRB093 02991 LRD 03007 b
 1    as to which it is held invalid shall not be affected thereby.

 2        Section 99.  Effective date.  This Act takes effect  upon
 3    becoming law.