093_HB0148ham001

 










                                     LRB093 02205 LRD 16690 a

 1                     AMENDMENT TO HOUSE BILL 148

 2        AMENDMENT NO.     .  Amend House Bill  148  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  The  Riverboat  Gambling  Act is amended by
 5    changing Sections 7 and 13 as follows:

 6        (230 ILCS 10/7) (from Ch. 120, par. 2407)
 7        Sec. 7.  Owners Licenses.
 8        (a)  The Board shall issue owners  licenses  to  persons,
 9    firms  or  corporations  which  apply  for such licenses upon
10    payment to the Board of the non-refundable license fee set by
11    the Board, upon payment of a  $25,000  license  fee  for  the
12    first  year  of  operation  and a $5,000 license fee for each
13    succeeding year and upon a determination by  the  Board  that
14    the  applicant is eligible for an owners  license pursuant to
15    this Act and the rules of  the  Board.   A  person,  firm  or
16    corporation is ineligible to receive an owners license if:
17             (1)  the person has been convicted of a felony under
18        the  laws  of  this State, any other state, or the United
19        States;
20             (2)  the person has been convicted of any  violation
21        of   Article   28  of  the  Criminal  Code  of  1961,  or
22        substantially similar laws of any other jurisdiction;
 
                            -2-      LRB093 02205 LRD 16690 a
 1             (3)  the person has submitted an application  for  a
 2        license under this Act which contains false information;
 3             (4)  the person is a member of the Board;
 4             (5)  a  person defined in (1), (2), (3) or (4) is an
 5        officer, director or managerial employee of the  firm  or
 6        corporation;
 7             (6)  the   firm  or  corporation  employs  a  person
 8        defined in (1), (2), (3) or (4) who participates  in  the
 9        management or operation of gambling operations authorized
10        under this Act;
11             (7)  (blank); or
12             (8)  a  license  of  the person, firm or corporation
13        issued under this Act, or a license  to  own  or  operate
14        gambling  facilities  in any other jurisdiction, has been
15        revoked.
16        (b)  In determining whether to grant an owners license to
17    an applicant, the Board shall consider:
18             (1)  the  character,  reputation,  experience    and
19        financial integrity of the applicants and of any other or
20        separate person that either:
21                  (A)  controls,  directly  or  indirectly,  such
22             applicant, or
23                  (B)  is  controlled, directly or indirectly, by
24             such  applicant  or  by  a  person  which  controls,
25             directly or indirectly, such applicant;
26             (2)  the facilities or proposed facilities  for  the
27        conduct of riverboat gambling;
28             (3)  the  highest  prospective  total  revenue to be
29        derived by  the  State  from  the  conduct  of  riverboat
30        gambling;
31             (4)  the  good faith affirmative action plan of each
32        applicant to recruit, train and upgrade minorities in all
33        employment classifications;
34             (5)  the  financial  ability  of  the  applicant  to
 
                            -3-      LRB093 02205 LRD 16690 a
 1        purchase and maintain  adequate  liability  and  casualty
 2        insurance;
 3             (6)  whether     the    applicant    has    adequate
 4        capitalization to provide and maintain, for the  duration
 5        of a license, a riverboat; and
 6             (7)  the  extent  to  which the applicant exceeds or
 7        meets other standards  for  the  issuance  of  an  owners
 8        license which the Board may adopt by rule.
 9        (c)  Each  owners  license  shall specify the place where
10    riverboats shall operate and dock.
11        (d)  Each applicant shall submit with his application, on
12    forms provided by the Board, 2 sets of his fingerprints.
13        (e)  In  addition  to  any  licenses   authorized   under
14    subsections  (e-5)  and  (e-10), the Board may issue up to 10
15    licenses authorizing the holders  of  such  licenses  to  own
16    riverboats.   In  the  application for an owners license, the
17    applicant shall state the dock  at  which  the  riverboat  is
18    based  and  the water on which the riverboat will be located.
19    The Board shall issue 5  licenses  to  become  effective  not
20    earlier  than  January 1, 1991.  Three of such licenses shall
21    authorize riverboat gambling on the Mississippi River, one of
22    which shall authorize riverboat gambling from a home dock  in
23    the  city of East St. Louis, and one of which shall authorize
24    riverboat  gambling  on  the  Mississippi  River  or   in   a
25    municipality  that (1) borders on the Mississippi River or is
26    within 5 miles of the city  limits  of  a  municipality  that
27    borders  on  the  Mississippi  River and (2) on the effective
28    date of this amendatory Act of the 92nd General Assembly  has
29    a riverboat conducting riverboat gambling operations pursuant
30    to  a license issued under this Act.  One other license shall
31    authorize riverboat gambling on the Illinois River  south  of
32    Marshall  County.   The  Board  shall  issue  one  additional
33    license  to  become effective not earlier than March 1, 1992,
34    which shall authorize riverboat gambling on the  Des  Plaines
 
                            -4-      LRB093 02205 LRD 16690 a
 1    River  in  Will  County.   The  Board  may issue 4 additional
 2    licenses to become effective not earlier than March 1,  1992.
 3    In  determining the water upon which riverboats will operate,
 4    the Board shall consider the economic benefit which riverboat
 5    gambling confers on the State, and shall seek to assure  that
 6    all  regions  of  the State share in the economic benefits of
 7    riverboat gambling.
 8        In granting all licenses, the Board  may  give  favorable
 9    consideration  to  economically depressed areas of the State,
10    to applicants presenting plans which provide for  significant
11    economic  development  over  a  large geographic area, and to
12    applicants who currently operate non-gambling  riverboats  in
13    Illinois.  The Board shall review all applications for owners
14    licenses,  and  shall  inform  each  applicant of the Board's
15    decision.
16        (e-5)  In   addition   to   licenses   authorized   under
17    subsections (e) and (e-10), the Board may  issue  one  owners
18    license   authorizing   the  conduct  of  riverboat  gambling
19    operations  from  a  home  dock  in  a  municipality  with  a
20    population of  more  than  500,000  inhabitants.   An  owners
21    license  issued  under  this subsection (e-5) shall be issued
22    only to the governing board of the municipality in which  its
23    home  dock  is located. No such license may be awarded to any
24    other person or  entity.  If  a  license  is  issued  to  the
25    governing board of a municipality pursuant to this subsection
26    (e-5),  that  governing  board  shall  conduct an auction and
27    grant  the  opportunity  to  manage  the  riverboat  gambling
28    operations  authorized  by  that  license  to   the   highest
29    qualified bidder.
30        (e-10)  In   addition   to   licenses   authorized  under
31    subsections (e) and (e-5), the Board  may  issue  one  owners
32    license   authorizing   the  conduct  of  riverboat  gambling
33    operations from a home dock located outside of  the  City  of
34    Chicago,  but  in  Cook  County  and  in one of the following
 
                            -5-      LRB093 02205 LRD 16690 a
 1    townships: Bloom, Thornton,  Rich,  Orland,  Calumet,  Worth,
 2    Palos, Bremen, or Lemont Township.
 3        (e-15)  The  Board  may  revoke  the  owners license of a
 4    licensee which fails to begin conducting gambling  within  15
 5    months  of receipt of the Board's approval of the application
 6    if the Board determines that license  revocation  is  in  the
 7    best interests of the State.
 8        (f)  The  first  10 Owners licenses issued under this Act
 9    shall permit the  holder  to  own  up  to  2  riverboats  and
10    equipment thereon for a period of 3 years after the effective
11    date  of the license. Holders of the first 10 owners licenses
12    must pay the annual license fee  for  each  of  the  3  years
13    during which they are authorized to own riverboats.
14        (g)  Upon  the  termination, expiration, or revocation of
15    each owners license of the first 10 licenses, which shall  be
16    issued  for  a  3  year  period,  all  licenses are renewable
17    annually upon payment of the fee and a determination  by  the
18    Board  that  the  licensee  continues  to  meet  all  of  the
19    requirements of this Act and the Board's rules.  However, for
20    licenses  renewed  on  or after May 1, 1998, renewal shall be
21    for a period of 4 years, unless  the  Board  sets  a  shorter
22    period.
23        (h)  An  owners license shall entitle the licensee to own
24    up to 2 riverboats. A licensee, other than  a  licensee  that
25    receives  its  owners  license  under subsection (e-5), shall
26    limit the number of gambling participants to 2,000 1,200  for
27    any such owners license.  A licensee that receives its owners
28    license  under  subsection  (e-5)  shall  limit the number of
29    gambling participants to the number set by the  Board,  which
30    may  not  exceed  4,000 participants at one time.  In setting
31    the number of participants that a licensee that receives  its
32    license  under  subsection  (e-5)  may admit, the Board shall
33    consider  the  best  interests  of  the  riverboat   gambling
34    industry.   A  licensee  may  operate  both of its riverboats
 
                            -6-      LRB093 02205 LRD 16690 a
 1    concurrently, provided that  the  total  number  of  gambling
 2    participants  on  both  riverboats  does  not  exceed  1,200.
 3    Riverboats  licensed  to operate on the Mississippi River and
 4    the Illinois River south of Marshall  County  shall  have  an
 5    authorized  capacity  of  at  least  500  persons.  Any other
 6    riverboat licensed under this Act shall  have  an  authorized
 7    capacity of at least 400 persons.
 8        (i)  A licensed owner is authorized to apply to the Board
 9    for  and,  if approved therefor, to receive all licenses from
10    the  Board  necessary  for  the  operation  of  a  riverboat,
11    including a liquor license, a license to  prepare  and  serve
12    food  for  human  consumption,  and other necessary licenses.
13    All use, occupation and excise taxes which apply to the  sale
14    of  food and beverages in this State and all taxes imposed on
15    the sale or use of tangible personal property apply  to  such
16    sales aboard the riverboat.
17        (j)  The   Board   may  issue  a  license  authorizing  a
18    riverboat to dock in a municipality or approve  a  relocation
19    under  Section  11.2  only  if,  prior to the issuance of the
20    license or approval, the governing body of  the  municipality
21    in  which  the  riverboat  will  dock  has by a majority vote
22    approved the docking of riverboats in the municipality.   The
23    Board  may issue a license authorizing a riverboat to dock in
24    areas of a county  outside  any  municipality  or  approve  a
25    relocation  under Section 11.2 only if, prior to the issuance
26    of the license or approval, the governing body of the  county
27    has  by a majority vote approved of the docking of riverboats
28    within such areas.
29    (Source: P.A. 91-40, eff. 6-25-99; 92-600, eff. 6-28-02.)

30        (230 ILCS 10/13) (from Ch. 120, par. 2413)
31        Sec. 13.  Wagering tax; rate; distribution.
32        (a)  Until January 1, 1998,  a  tax  is  imposed  on  the
33    adjusted   gross   receipts   received  from  gambling  games
 
                            -7-      LRB093 02205 LRD 16690 a
 1    authorized under this Act at the rate of 20%.
 2        From January 1, 1998 until July 1, 2002, a privilege  tax
 3    is  imposed  on persons engaged in the business of conducting
 4    riverboat gambling operations, based on  the  adjusted  gross
 5    receipts  received  by  a  licensed owner from gambling games
 6    authorized under this Act at the following rates:
 7             15% of annual adjusted  gross  receipts  up  to  and
 8        including $25,000,000;
 9             20%  of  annual adjusted gross receipts in excess of
10        $25,000,000 but not exceeding $50,000,000;
11             25% of annual adjusted gross receipts in  excess  of
12        $50,000,000 but not exceeding $75,000,000;
13             30%  of  annual adjusted gross receipts in excess of
14        $75,000,000 but not exceeding $100,000,000;
15             35% of annual adjusted gross receipts in  excess  of
16        $100,000,000.
17        Beginning  July  1,  2002,  a privilege tax is imposed on
18    persons engaged  in  the  business  of  conducting  riverboat
19    gambling  operations,  based  on  the adjusted gross receipts
20    received by a licensed owner from gambling  games  authorized
21    under this Act at the following rates:
22             15%  of  annual  adjusted  gross  receipts up to and
23        including $25,000,000;
24             22.5% of annual adjusted gross receipts in excess of
25        $25,000,000 but not exceeding $50,000,000;
26             27.5% of annual adjusted gross receipts in excess of
27        $50,000,000 but not exceeding $75,000,000;
28             32.5% of annual adjusted gross receipts in excess of
29        $75,000,000 but not exceeding $100,000,000;
30             37.5% of annual adjusted gross receipts in excess of
31        $100,000,000 but not exceeding $150,000,000;
32             45% of annual adjusted gross receipts in  excess  of
33        $150,000,000 but not exceeding $200,000,000;
34             50%  of  annual adjusted gross receipts in excess of
 
                            -8-      LRB093 02205 LRD 16690 a
 1        $200,000,000.
 2        The taxes imposed by this Section shall be  paid  by  the
 3    licensed  owner to the Board not later than 3:00 o'clock p.m.
 4    of the day after the day when the wagers were made.
 5        (b)  Until January  1,  1998,  25%  of  the  tax  revenue
 6    deposited  in  the State Gaming Fund under this Section shall
 7    be paid, subject to appropriation by the General Assembly, to
 8    the unit of local government which is designated as the  home
 9    dock  of  the riverboat.  Beginning January 1, 1998, from the
10    tax revenue deposited in the State  Gaming  Fund  under  this
11    Section,  an  amount  equal  to 5% of adjusted gross receipts
12    generated by a riverboat, other than a  riverboat  authorized
13    under  subsection (e-10) of Section 7, shall be paid monthly,
14    subject to appropriation by the General Assembly, to the unit
15    of local government that is designated as the  home  dock  of
16    the riverboat.
17        (b-5)  From  the  tax  revenue  deposited  into the State
18    Gaming Fund under  this  Section,  payments  shall  be  made,
19    subject to appropriation by the General Assembly, as provided
20    in this subsection (b-5).
21        An  amount  equal  to  3%  of the adjusted gross receipts
22    generated by a riverboat authorized under  subsection  (e-10)
23    of  Section  7 shall be paid to the municipality in which the
24    riverboat docks and to any other municipalities or  townships
25    that  enter  into  an  intergovernmental  agreement  with the
26    municipality in which  the  riverboat  docks  to  share  that
27    revenue  and  shall be divided according to the terms of that
28    intergovernmental agreement.
29        An amount equal to 0.5% of the  adjusted  gross  receipts
30    generated  by  a riverboat authorized under subsection (e-10)
31    of Section 7  shall  be  divided  equally  and  paid  to  the
32    townships enumerated in subsection (e-10) of Section 7.
33        An  amount  equal  to  1%  of the adjusted gross receipts
34    generated by a riverboat authorized under  subsection  (e-10)
 
                            -9-      LRB093 02205 LRD 16690 a
 1    of  Section  7 shall be divided among the school districts in
 2    the townships enumerated in subsection (e-10) of Section 7 in
 3    inverse proportion to the per-student expenditures of each of
 4    those school districts.
 5        An amount equal to 0.5% of the  adjusted  gross  receipts
 6    generated  by  a riverboat authorized under subsection (e-10)
 7    of Section 7 shall be paid into the South Suburban Assistance
 8    Fund, which is hereby created in  the  State  Treasury.   The
 9    South  Suburban  Assistance Fund shall be administered by the
10    Department  of  Commerce  and  Community  affairs,   or   its
11    successor agency, and moneys in the Fund shall be used to aid
12    economically   distressed   communities   in   the  townships
13    enumerated in subsection (e-10) of Section 7.
14        (c)  Appropriations, as approved by the General Assembly,
15    may be made from the State Gaming Fund to the  Department  of
16    Revenue   and   the   Department  of  State  Police  for  the
17    administration and enforcement of this Act.
18        (c-5)  (Blank).  After  the   payments   required   under
19    subsections  (b)  and  (c) have been made, an amount equal to
20    15% of the adjusted gross receipts of a  riverboat  (1)  that
21    relocates  pursuant  to  Section  11.2,  or  (2) for which an
22    owners license is initially issued after the  effective  date
23    of  this amendatory Act of 1999, whichever comes first, shall
24    be paid from the State Gaming  Fund  into  the  Horse  Racing
25    Equity Fund.
26        (c-10)  (Blank).  Each  year  the  General Assembly shall
27    appropriate from the General Revenue Fund  to  the  Education
28    Assistance  Fund  an amount equal to the amount paid into the
29    Horse Racing Equity Fund pursuant to subsection (c-5) in  the
30    prior calendar year.
31        (c-15)  After  the  payments  required  under subsections
32    (b), (c), and (c-5) have been made, an amount equal to 2%  of
33    the  adjusted  gross  receipts  of  a  licensee, other than a
34    licensee that receives an  owners  license  under  subsection
 
                            -10-     LRB093 02205 LRD 16690 a
 1    (e-5)  or  (e-10)  of Section 7, riverboat (1) that relocates
 2    pursuant to Section 11.2, or (2) for which an owners  license
 3    is   initially  issued  after  the  effective  date  of  this
 4    amendatory Act of 1999, whichever comes first, shall be paid,
 5    subject to appropriation from the General Assembly, from  the
 6    State  Gaming Fund to each home rule county with a population
 7    of over 3,000,000 inhabitants for the  purpose  of  enhancing
 8    the county's criminal justice system.
 9        (c-20)  Each  year the General Assembly shall appropriate
10    from the General Revenue Fund  to  the  Education  Assistance
11    Fund  an  amount  equal  to the amount paid to each home rule
12    county  with  a  population  of  over  3,000,000  inhabitants
13    pursuant to subsection (c-15) in the prior calendar year.
14        (c-25)  After the  payments  required  under  subsections
15    (b), (c), (c-5) and (c-15) have been made, an amount equal to
16    2% of the adjusted gross receipts of a licensee, other than a
17    licensee  that  receives  an  owners license under subsection
18    (e-5) or (e-10) of Section 7, riverboat  (1)  that  relocates
19    pursuant  to Section 11.2, or (2) for which an owners license
20    is  initially  issued  after  the  effective  date  of   this
21    amendatory  Act of 1999, whichever comes first, shall be paid
22    from the  State  Gaming  Fund  into  the  State  Universities
23    Athletic Capital Improvement Fund.
24        (d)  From  time  to  time,  the  Board shall transfer the
25    remainder of  the  funds  generated  by  this  Act  into  the
26    Education  Assistance Fund, created by Public Act 86-0018, of
27    the State of Illinois.
28        (e)  Nothing in this Act shall prohibit the unit of local
29    government designated as the home dock of the riverboat  from
30    entering into agreements with other units of local government
31    in  this State or in other states to share its portion of the
32    tax revenue.
33        (f)  To  the  extent   practicable,   the   Board   shall
34    administer  and  collect  the  wagering taxes imposed by this
 
                            -11-     LRB093 02205 LRD 16690 a
 1    Section  in  a  manner  consistent  with  the  provisions  of
 2    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
 3    6c, 8, 9, and 10 of the Retailers'  Occupation  Tax  Act  and
 4    Section 3-7 of the Uniform Penalty and Interest Act.
 5    (Source: P.A. 91-40, eff. 6-25-99; 92-595, eff. 6-28-02.)

 6        Section   95.  The State Finance Act is amended by adding
 7    Section 5.595 as follows:

 8        (30 ILCS 105/5.595 new)
 9        Sec. 5.595.  The South Suburban Assistance Fund.

10        Section 99.  Effective date.  This Act takes effect  upon
11    becoming law.".