State of Illinois
90th General Assembly
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90_SB0808

      230 ILCS 10/5             from Ch. 120, par. 2405
      230 ILCS 10/5.2 new
      230 ILCS 10/6             from Ch. 120, par. 2406
      230 ILCS 10/7             from Ch. 120, par. 2407
      230 ILCS 10/7.1 new
      230 ILCS 10/8             from Ch. 120, par. 2408
      230 ILCS 10/9             from Ch. 120, par. 2409
      230 ILCS 10/11            from Ch. 120, par. 2411
      230 ILCS 10/11.2 new
      230 ILCS 10/13            from Ch. 120, par. 2413
      230 ILCS 10/18            from Ch. 120, par. 2418
          Amends the Riverboat Gambling  Act.   Provides  that  the
      Board  shall  have  the power to determine which entities and
      persons shall be subject to Board approval for involvement in
      the ownership or operation of riverboat gambling in  Illinois
      and  to  approve  the  participation  of  those  entities and
      persons.  Gives the Board the power to require the removal of
      an officer, director, or shareholder  of  a  licensee  or  to
      require  the  termination  of  a  business relationship for a
      violation of the Act or of a Board rule or for engaging in  a
      fraudulent  practice.   Gives the Board the power to petition
      the circuit court of Sangamon County  for  appointment  of  a
      receiver  for  a  riverboat  gambling  operation  if  certain
      conditions  exist.  Creates a code of conduct for members and
      employees  of  the  Board.   Removes   certain   restrictions
      concerning  where  licensees  shall  be  required  to conduct
      riverboat gambling, but  requires  that  at  least  6  owners
      licenses  shall  specify  that  riverboats  dock  and operate
      outside of the counties of Cook, DuPage, Kane, Lake, McHenry,
      and Will.  Provides that upon the  expiration  of  an  owners
      license  the  Board may renew that license for up to 4 years.
      Provides that the Board shall establish requirements for  the
      times  and  conditions  under which riverboat gambling may be
      conducted.  Provides that it is a petty offense for a  person
      under  the  age of 21 years to enter upon a riverboat, except
      as authorized by the Act.  Effective immediately.
                                                     LRB9002182LDdv
                                               LRB9002182LDdv
 1        AN ACT to amend the Riverboat Gambling  Act  by  changing
 2    Sections  5,  6,  7, 8, 9, 11, 13, and 18 and adding Sections
 3    5.2, 7.1, and 11.2.
 4        Be it enacted by the People of  the  State  of  Illinois,
 5    represented in the General Assembly:
 6        Section  5.   The  Riverboat  Gambling  Act is amended by
 7    changing Sections 5, 6, 7, 8, 9, 11, 13, and  18  and  adding
 8    Section 5.2, 7.1, and 11.2 as follows:
 9        (230 ILCS 10/5) (from Ch. 120, par. 2405)
10        Sec. 5.  Gaming Board.
11        (a)  (1)  There   is   hereby   established   within  the
12    Department of Revenue an Illinois Gaming  Board  which  shall
13    have  the  powers  and  duties specified in this Act, and all
14    other powers necessary and proper to  fully  and  effectively
15    execute   this   Act   for   the  purpose  of  administering,
16    regulating, and enforcing the system  of  riverboat  gambling
17    established  by this Act. Its jurisdiction shall extend under
18    this  Act  to   every   person,   association,   corporation,
19    partnership   and   trust   involved  in  riverboat  gambling
20    operations in the State of Illinois.
21        (2)  The Board shall consist of 5 members to be appointed
22    by the Governor with the advice and consent  of  the  Senate,
23    one  of  whom  shall  be  designated  by  the  Governor to be
24    chairman.  Each member shall have a reasonable  knowledge  of
25    the   practice,   procedure   and   principles   of  gambling
26    operations.  Each  member  shall  either  be  a  resident  of
27    Illinois or shall certify that he will become a  resident  of
28    Illinois  before  taking office. At least one member shall be
29    experienced in law enforcement and criminal investigation, at
30    least one member  shall  be  a  certified  public  accountant
31    experienced  in  accounting  and  auditing,  and at least one
                            -2-                LRB9002182LDdv
 1    member  shall  be  a  lawyer  licensed  to  practice  law  in
 2    Illinois.
 3        (3)  The terms of office of the Board members shall be  3
 4    years,  except  that the terms of office of the initial Board
 5    members appointed pursuant to this Act will commence from the
 6    effective date of this Act and run  as  follows:  one  for  a
 7    term  ending  July 1, 1991, 2 for a term ending July 1, 1992,
 8    and 2 for a term ending July 1, 1993.  Upon the expiration of
 9    the foregoing terms, the successors  of  such  members  shall
10    serve  a  term  for  3  years  and until their successors are
11    appointed and qualified for  like  terms.  Vacancies  in  the
12    Board  shall  be filled for the unexpired term in like manner
13    as original appointments.  Each member of the Board shall  be
14    eligible  for reappointment at the discretion of the Governor
15    with the advice and consent of the Senate.
16        (4)  Each member of the Board shall receive $300 for each
17    day the Board meets and for each day the member conducts  any
18    hearing pursuant to this Act.  Each member of the Board shall
19    also  be reimbursed for all actual and necessary expenses and
20    disbursements incurred in the execution of official duties.
21        (5)  No person shall be appointed a member of  the  Board
22    or  continue  to  be  a  member of the Board who is, or whose
23    spouse, child  or  parent  is,  a  member  of  the  board  of
24    directors  of,  or  a  person  financially interested in, any
25    gambling operation subject to the jurisdiction of this Board,
26    or any race track, race meeting, racing  association  or  the
27    operations   thereof  subject  to  the  jurisdiction  of  the
28    Illinois Racing Board.  No Board member shall hold any  other
29    public  office  for which he shall receive compensation other
30    than necessary  travel  or  other  incidental  expenses.   No
31    person  shall  be  a  member  of the Board who is not of good
32    moral character or who has been convicted  of,  or  is  under
33    indictment  for,  a  felony under the laws of Illinois or any
34    other state, or the United States.
                            -3-                LRB9002182LDdv
 1        (6)  Any member of  the  Board  may  be  removed  by  the
 2    Governor  for  neglect  of duty, misfeasance, malfeasance, or
 3    nonfeasance in office.
 4        (7)  Before entering upon the discharge of the duties  of
 5    his  office, each member of the Board shall take an oath that
 6    he will faithfully execute the duties of his office according
 7    to the laws of  the  State  and  the  rules  and  regulations
 8    adopted  therewith  and  shall  give  bond  to  the  State of
 9    Illinois, approved by the Governor, in the  sum  of  $25,000.
10    Every  such  bond,  when duly executed and approved, shall be
11    recorded in the office of the Secretary of  State.   Whenever
12    the  Governor  determines  that the bond of any member of the
13    Board  has  become  or  is  likely  to  become   invalid   or
14    insufficient, he shall require such member forthwith to renew
15    his  bond,  which  is  to  be  approved by the Governor.  Any
16    member of the Board who fails to  take  oath  and  give  bond
17    within 30 days from the date of his appointment, or who fails
18    to  renew his bond within 30 days after it is demanded by the
19    Governor, shall be guilty of  neglect  of  duty  and  may  be
20    removed  by  the Governor.  The cost of any bond given by any
21    member of the Board under this Section shall be taken to be a
22    part of the necessary expenses of the Board.
23        (8)  Upon the request of the Board, the Department  shall
24    employ  such  personnel  as may be necessary to carry out the
25    functions of the Board.  No person shall be employed to serve
26    the Board who is, or whose spouse, parent  or  child  is,  an
27    official  of,  or  has  a  financial interest in or financial
28    relation with, any operator engaged  in  gambling  operations
29    within  this  State or any organization engaged in conducting
30    horse racing within this State.  Any employee violating these
31    prohibitions shall be subject to termination of employment.
32        (9)  An Administrator shall perform any  and  all  duties
33    that   the  Board  shall  assign  him.   The  salary  of  the
34    Administrator shall be determined by the Board  and  approved
                            -4-                LRB9002182LDdv
 1    by  the Director of the Department and, in addition, he shall
 2    be reimbursed for all actual and necessary expenses  incurred
 3    by   him   in   discharge   of   his  official  duties.   The
 4    Administrator shall keep records of all  proceedings  of  the
 5    Board  and  shall  preserve all records, books, documents and
 6    other papers belonging to the Board or entrusted to its care.
 7    The Administrator shall devote his full time to the duties of
 8    the office and shall not hold any other office or employment.
 9        (b)  The Board shall have general responsibility for  the
10    implementation  of  this  Act.   Its  duties include, without
11    limitation, the following:
12             (1)  To decide promptly and in reasonable order  all
13        license applications. Any party aggrieved by an action of
14        the  Board  denying, suspending, revoking, restricting or
15        refusing to renew a license may request a hearing  before
16        the  Board.   A request for a hearing must be made to the
17        Board in writing within 5 days after service of notice of
18        the action of the Board.  Notice of  the  action  of  the
19        Board  shall  be served either by personal delivery or by
20        certified mail, postage prepaid, to the aggrieved  party.
21        Notice  served by certified mail shall be deemed complete
22        on the business day following the date of  such  mailing.
23        The  Board  shall conduct all requested hearings promptly
24        and in reasonable order;
25             (2)  To conduct all  hearings  pertaining  to  civil
26        violations   of   this   Act  or  rules  and  regulations
27        promulgated hereunder;
28             (3)  To promulgate such rules and regulations as  in
29        its  judgment  may be necessary to protect or enhance the
30        credibility  and   integrity   of   gambling   operations
31        authorized   by  this  Act  and  the  regulatory  process
32        hereunder;
33             (4)  To provide for the establishment and collection
34        of all license and registration fees and taxes imposed by
                            -5-                LRB9002182LDdv
 1        this Act and the rules and  regulations  issued  pursuant
 2        hereto.   All such fees and taxes shall be deposited into
 3        the State Gaming Fund;
 4             (5)  To provide  for  the  levy  and  collection  of
 5        penalties  and  fines  for the violation of provisions of
 6        this  Act  and  the  rules  and  regulations  promulgated
 7        hereunder.   All  such  fines  and  penalties  shall   be
 8        deposited  into the Education Assistance Fund, created by
 9        Public Act 86-0018, of the State of Illinois;
10             (6)  To be present through its inspectors and agents
11        any  time  gambling  operations  are  conducted  on   any
12        riverboat  for  the  purpose  of  certifying  the revenue
13        thereof,  receiving  complaints  from  the  public,   and
14        conducting  such other investigations into the conduct of
15        the gambling games and the maintenance of  the  equipment
16        as  from  time  to  time the Board may deem necessary and
17        proper;
18             (7)  To review and rule  upon  any  complaint  by  a
19        licensee  regarding  any  investigative procedures of the
20        State which  are  unnecessarily  disruptive  of  gambling
21        operations.  The need to inspect and investigate shall be
22        presumed  at  all  times.  The disruption of a licensee's
23        operations  shall  be  proved  by  clear  and  convincing
24        evidence, and establish that:  (A) the procedures had  no
25        reasonable   law   enforcement   purposes,  and  (B)  the
26        procedures were so disruptive as to unreasonably  inhibit
27        gambling operations;
28             (8)  To  hold  at  least one meeting each quarter of
29        the fiscal year.  In addition, special  meetings  may  be
30        called  by  the  Chairman  or any 2 Board members upon 72
31        hours written notice to each member.  All Board  meetings
32        shall  be subject to the Open Meetings Act. Three members
33        of the Board shall constitute a quorum, and 3 votes shall
34        be required for any final  determination  by  the  Board.
                            -6-                LRB9002182LDdv
 1        The  Board  shall  keep a complete and accurate record of
 2        all its meetings. A majority of the members of the  Board
 3        shall  constitute  a  quorum  for  the transaction of any
 4        business, for the performance of any  duty,  or  for  the
 5        exercise  of  any power which this Act requires the Board
 6        members to transact, perform or exercise en banc,  except
 7        that,  upon  order of the Board, one of the Board members
 8        or an administrative law judge designated  by  the  Board
 9        may conduct any hearing provided for under this Act or by
10        Board  rule  and  may recommend findings and decisions to
11        the Board.  The Board member or administrative law  judge
12        conducting  such hearing shall have all powers and rights
13        granted to the Board in this Act. The record made at  the
14        time  of the hearing shall be reviewed by the Board, or a
15        majority thereof, and the findings and  decision  of  the
16        majority  of  the Board shall constitute the order of the
17        Board in such case;
18             (9)  To maintain  records  which  are  separate  and
19        distinct  from  the  records  of any other State board or
20        commission.  Such records shall be available  for  public
21        inspection   and   shall  accurately  reflect  all  Board
22        proceedings;
23             (10)  To file  a  written  annual  report  with  the
24        Governor  on  or  before  March  1  each  year  and  such
25        additional  reports  as  the  Governor  may  request. The
26        annual report shall include a statement of  receipts  and
27        disbursements  by  the Board, actions taken by the Board,
28        and any additional information and recommendations  which
29        the  Board  may  deem  valuable or which the Governor may
30        request;
31             (11)  To review the patterns of  wagering  and  wins
32        and  losses  by  persons on riverboat gambling operations
33        under this Act, and make recommendation to  the  Governor
34        and  the  General  Assembly,  by  January 31, 1992, as to
                            -7-                LRB9002182LDdv
 1        whether limits on wagering losses should be imposed; and
 2             (12)  To    assume    responsibility     for     the
 3        administration  and  enforcement of the Bingo License and
 4        Tax Act, the Charitable Games Act, and the Pull Tabs  and
 5        Jar  Games  Act if such responsibility is delegated to it
 6        by the Director of Revenue.
 7        (c)  The Board shall have  jurisdiction  over  and  shall
 8    supervise  all gambling operations governed by this Act.  The
 9    Board shall have all powers necessary and proper to fully and
10    effectively execute the provisions of  this  Act,  including,
11    but not limited to, the following:
12             (1)  To  investigate  applicants  and  determine the
13        eligibility of applicants  for  licenses  and  to  select
14        among  competing  applicants  the  applicants  which best
15        serve the interests of the citizens of Illinois.
16             (2)  To have jurisdiction and supervision  over  all
17        riverboat  gambling  operations  in  this  State  and all
18        persons  on  riverboats  where  gambling  operations  are
19        conducted.
20             (3)  To promulgate rules  and  regulations  for  the
21        purpose  of  administering the provisions of this Act and
22        to prescribe  rules,  regulations  and  conditions  under
23        which  all  riverboat  gambling  in  the  State  shall be
24        conducted.  Such rules and regulations are to provide for
25        the prevention of practices  detrimental  to  the  public
26        interest   and   for  the  best  interests  of  riverboat
27        gambling, including rules and regulations  regarding  the
28        inspection  of  such  riverboats  and  the  review of any
29        permits or licenses  necessary  to  operate  a  riverboat
30        under  any  laws or regulations applicable to riverboats,
31        and to impose penalties for violations thereof.
32             (4)  To enter the office, riverboats, facilities, or
33        other places of business of a licensee, where evidence of
34        the compliance or noncompliance with  the  provisions  of
                            -8-                LRB9002182LDdv
 1        this Act is likely to be found.
 2             (5)  To  investigate  alleged violations of this Act
 3        or the  rules  of  the  Board  and  to  take  appropriate
 4        disciplinary  action against a licensee or a holder of an
 5        occupational  license  for  a  violation,  or   institute
 6        appropriate legal action for enforcement, or both.
 7             (6)  To  adopt  standards  for  the licensing of all
 8        persons under this Act, as  well  as  for  electronic  or
 9        mechanical gambling games, and to establish fees for such
10        licenses.
11             (7)  To   adopt   appropriate   standards   for  all
12        riverboats and facilities.
13             (8)  To  require   that   the   records,   including
14        financial  or other statements of any licensee under this
15        Act, shall be kept in such manner as  prescribed  by  the
16        Board   and  that  any  such  licensee  involved  in  the
17        ownership or management of gambling operations submit  to
18        the  Board  an  annual  balance sheet and profit and loss
19        statement, list of  the  stockholders  or  other  persons
20        having  a  1%  or  greater  beneficial  interest  in  the
21        gambling  activities  of  each  licensee,   and any other
22        information  the  Board  deems  necessary  in  order   to
23        effectively   administer   this   Act   and   all  rules,
24        regulations, orders and final decisions promulgated under
25        this Act.
26             (8.1)  To determine which entities and persons shall
27        be subject to  Board  approval  for  involvement  in  the
28        ownership or operations of riverboat gambling in Illinois
29        and  to  approve  the  participation of such entities and
30        persons,  including  approvals  related  to  parent   and
31        subsidiary entities.
32             (9)  To  conduct  hearings,  issue subpoenas for the
33        attendance of witnesses and subpoenas duces tecum for the
34        production  of  books,  records   and   other   pertinent
                            -9-                LRB9002182LDdv
 1        documents  in accordance with the Illinois Administrative
 2        Procedure Act, and to administer oaths  and  affirmations
 3        to  the witnesses, when, in the judgment of the Board, it
 4        is necessary to administer or enforce  this  Act  or  the
 5        Board rules.
 6             (10)  To prescribe a form to be used by any licensee
 7        involved  in  the  ownership  or  management  of gambling
 8        operations as an application  for  employment  for  their
 9        employees.
10             (11)  To  revoke  or  suspend licenses, as the Board
11        may see fit and in compliance with applicable laws of the
12        State regarding administrative procedures, and to  review
13        applications  for the renewal of licenses.  The Board may
14        suspend an owners license, without notice or hearing upon
15        a determination that the safety or health of  patrons  or
16        employees  is  jeopardized  by  continuing  a riverboat's
17        operation.  The suspension may remain in effect until the
18        Board determines that the cause for suspension  has  been
19        abated.   The  Board may revoke the owners license upon a
20        determination that the owner has  not  made  satisfactory
21        progress toward abating the hazard.
22             (12)  To  eject or exclude or authorize the ejection
23        or exclusion  of,  any  person  from  riverboat  gambling
24        facilities where such person is in violation of this Act,
25        rules  and regulations thereunder, or final orders of the
26        Board, or where such person's conduct  or  reputation  is
27        such  that  his  presence  within  the riverboat gambling
28        facilities may, in the opinion of the  Board,  call  into
29        question  the  honesty  and  integrity  of  the  gambling
30        operations  or  interfere  with  orderly conduct thereof;
31        provided that the propriety of such ejection or exclusion
32        is subject to subsequent hearing by the Board.
33             (13)  To   require   all   licensees   of   gambling
34        operations to utilize a cashless wagering system  whereby
                            -10-               LRB9002182LDdv
 1        all  players'  money  is  converted to tokens, electronic
 2        cards, or chips which shall be used only for wagering  in
 3        the gambling establishment.
 4             (14)  To authorize the routes of a riverboat and the
 5        stops which a riverboat may make.
 6             (15)  To  suspend,  revoke  or restrict licenses, to
 7        require  the  removal  of  a  licensee  or  an  employee,
 8        officer, director, or shareholder of a  licensee,  or  to
 9        require the termination of a business relationship, for a
10        violation  of this Act or a Board rule or for engaging in
11        a fraudulent practice, and to impose civil  penalties  of
12        up  to $5,000 against individuals and up to $10,000 or an
13        amount equal to the daily gross  receipts,  whichever  is
14        larger,  against  licensees  for  each  violation  of any
15        provision of the Act, any rules adopted by the Board, any
16        order of the Board or any  other  action  which,  in  the
17        Board's  discretion,  is  a  detriment  or  impediment to
18        riverboat gambling operations.
19             (16)  To  hire  employees  to  gather   information,
20        conduct  investigations  and  carry  out  any other tasks
21        contemplated under this Act.
22             (17)  To establish minimum levels of insurance to be
23        maintained by licensees.
24             (18)  To authorize  a  licensee  to  sell  or  serve
25        alcoholic  liquors, wine or beer as defined in the Liquor
26        Control Act of 1934 on board  a  riverboat  and  to  have
27        exclusive  authority  to establish the hours for sale and
28        consumption of alcoholic liquor  on  board  a  riverboat,
29        notwithstanding  any  provision of the Liquor Control Act
30        of 1934 or any local ordinance.  The establishment of the
31        hours for sale and consumption  of  alcoholic  liquor  on
32        board  a  riverboat is an exclusive power and function of
33        the State.  A home rule unit may not establish the  hours
34        for  sale  and consumption of alcoholic liquor on board a
                            -11-               LRB9002182LDdv
 1        riverboat.  This amendatory Act of 1991 is a  denial  and
 2        limitation  of  home  rule  powers  and  functions  under
 3        subsection  (h)  of  Section  6  of  Article  VII  of the
 4        Illinois Constitution.
 5             (19)  After consultation with the U.S. Army Corps of
 6        Engineers, to establish binding emergency orders upon the
 7        concurrence of a majority of the  members  of  the  Board
 8        regarding  the  navigability  of  rivers  in the event of
 9        extreme weather conditions, acts of God or other  extreme
10        circumstances.
11             (20)  To  adopt rules governing the requirements for
12        disclosure and approval  of  contracts  entered  into  by
13        licensees.
14             (21)  To  petition  the  circuit  court  of Sangamon
15        County for appointment of  a  receiver  for  a  riverboat
16        gambling  operation  when any of the following conditions
17        exist: (A) the Board has suspended, revoked or refused to
18        renew  the  license  of  the  owner;  (B)  the  riverboat
19        gambling  operation  is  closing   and   the   owner   is
20        voluntarily  surrendering  the owner's license; or (C) an
21        investigation  is  pending  that  may   result   in   the
22        revocation  or  nonrenewal  of  an  owners  license.  The
23        receiver appointed by the court shall be an individual or
24        entity  selected  from  among  3  nominees  for  receiver
25        submitted to the court by  the  Board.   A  copy  of  the
26        petition  and  notice  of  a hearing, to be held within 5
27        days of the filing of the petition, shall  be  served  on
28        the  owner  of  the  license  as provided under the Civil
29        Practice Law.  The Board shall determine  the  amount  of
30        reasonable   compensation,   fees,  and  expenses  to  be
31        assessed and retained by the receiver from  the  adjusted
32        gross receipts of the riverboat gambling operation, after
33        the  payment  of  wagering  and  admission taxes, for the
34        services, costs, and expenses of the receiver and for any
                            -12-               LRB9002182LDdv
 1        other persons whom the receiver may engage to assist  him
 2        or   her   in   performing   his   or  her  duties.   The
 3        compensation, fees, and expenses authorized by the  Board
 4        shall   have   the  same  priority  as  the  payment  and
 5        collection of taxes and fees to the State required  under
 6        this Act.  The powers and duties of the receiver shall be
 7        requested  in  the  petition and determined by the court,
 8        but in no event shall the duration of the receiver exceed
 9        one year.
10             (22) (20)  To delegate the execution of any  of  its
11        powers  under  this  Act for the purpose of administering
12        and enforcing this Act  and  its  rules  and  regulations
13        hereunder.
14             (23)  (21)  To  take  any  other  action  as  may be
15        reasonable or appropriate to enforce this Act  and  rules
16        and regulations hereunder.
17        (d)  The Board may seek and shall receive the cooperation
18    of  the  Department  of State Police in conducting background
19    investigations  of   applicants   and   in   fulfilling   its
20    responsibilities  under  this Section.  Costs incurred by the
21    Department of State Police as a result  of  such  cooperation
22    shall   be   paid  by  the  Board  in  conformance  with  the
23    requirements of subsection 22 of Section  55a  of  The  Civil
24    Administrative Code of Illinois.
25    (Source: P.A. 86-1029; 86-1389; 87-826.)
26        (230 ILCS 10/5.2 new)
27        Sec. 5.2.  Code of conduct.
28        (a)  Members  and employees of the Board are to discharge
29    their duties and responsibilities with undivided  loyalty  to
30    the  Board  and  in  such a manner as to promote and preserve
31    public trust and confidence in the integrity of  the  conduct
32    of gaming and in the integrity and impartiality of the Board.
33    No  Board  member or employee shall use or attempt to use his
                            -13-               LRB9002182LDdv
 1    or her official position to secure any privilege or advantage
 2    for himself, herself, or others.  Members  and  employees  of
 3    the  Board  shall  bear  responsibility for adherence to this
 4    general policy and to the following  specific  components  of
 5    this code of conduct.
 6             (1)  Except  as  may  be  required in the conduct of
 7        official duties, members and employees of the Board shall
 8        not engage in gambling on a riverboat casino licensed  by
 9        the  Board, nor engage in legalized gambling in any other
10        establishment, in Illinois or  elsewhere,  identified  by
11        Board  action  that,  in the judgment of the Board, could
12        represent a potential for a conflict of interest.
13             (2)  Members and employees of the  Board  shall  not
14        hold or pursue employment, office, position, business, or
15        an  occupation that may conflict with the official duties
16        of that member or employee.  Members  and  employees  may
17        engage   in   other  gainful  employment  that  does  not
18        interfere or conflict with their  duties,  provided  that
19        such employment is disclosed to the Administrator and the
20        Board  and approved by the Board or, as delegated, by the
21        Administrator.
22             (3)  Members and employees of the  Board  and  their
23        spouses,  children,  and  parents  may not accept a gift,
24        gratuity, service,  or  thing  of  value  of  other  than
25        incidental  nature from an applicant for or the holder of
26        a license issued by the Board.
27             (4)  Neither Board  members  nor  employees  of  the
28        Board  nor  their spouses, children, or parents may hold,
29        acquire, or  cause  or  encourage  any  other  person  to
30        acquire  the  stock,  other  actual or contingent form of
31        ownership interest, the debt  instruments  of,  or  other
32        financial interest in an applicant for or the holder of a
33        license  issued by the Board.  The holding or acquisition
34        of an interest in such entities through  indirect  means,
                            -14-               LRB9002182LDdv
 1        such  as  through a mutual fund, shall not be prohibited,
 2        except that the Board may identify  specific  investments
 3        or  funds  that,  in  its  judgment, are so influenced by
 4        gaming holdings as  to  represent  the  potential  for  a
 5        conflict of interest.
 6             Members   of  the  Board  upon  leaving  office  and
 7        employees of the Board upon termination  from  employment
 8        with  the  Board  are  precluded for a period of one year
 9        from the acquisition of  $20,000  or  more  in  ownership
10        interest  in  an  applicant  for  or  holder of a license
11        issued by the Board.
12             (5)  Employees  of  the  Board  and  their  spouses,
13        children or parents shall not be employed by, directly or
14        indirectly under contract  with,  or  have  any  economic
15        association  with  an  applicant  for  or the holder of a
16        license issued by the Board.
17             If the spouse, child, or parent of  an  employee  of
18        the  Board  has an employment or contractual relationship
19        or economic association with the  applicant  for  or  the
20        holder  of  a  license issued by the Board, that employee
21        shall  immediately  disclose  this  relationship  to  the
22        Administrator and may seek a waiver of  this  prohibition
23        from the Board.
24             (6)  Members   of   the  Board  and  their  spouses,
25        children, or parents may not be in the employ or directly
26        under contract with an  applicant  for  or  holder  of  a
27        license issued by the Board, nor any entity or individual
28        identified  by  Board action that, in the judgment of the
29        Board, could represent the potential for  a  conflict  of
30        interest.
31             (7)  Each  member  of  the  Board  that  owns  or is
32        employed by a firm or business entity shall, to the  best
33        of  his  or  her  ability,  identify any current economic
34        relationship,  direct  or  indirect,   representing   the
                            -15-               LRB9002182LDdv
 1        potential  for  a  conflict  of  interest  that may exist
 2        between the Board member's firm or business entity and an
 3        applicant for or holder of a license issued by the Board.
 4        The Board member shall declare his or  her  intention  to
 5        refrain   from  deliberations  and  voting  on  questions
 6        related to the gaming entity in that relationship.
 7             (8)  Members of the Board, upon leaving office,  and
 8        the  executive  staff  in  the service of the Board, upon
 9        termination from employment  with  the  Board,  shall  be
10        precluded,  for  a  period  of  one  year, from accepting
11        employment with an applicant for or a holder of a license
12        issued by the Board and shall be similarly precluded from
13        representing  before  the  Board  the  interests  of   an
14        applicant  for  or  the holder of a license issued by the
15        Board.  For purposes of this Section, "executive staff in
16        the   service   of   the   Board"   shall   include   the
17        Administrator,   all   personnel   supervised   by    the
18        Administrator,   and   all  personnel  supervised  by  an
19        individual who is supervised by the Administrator.
20             (9)  Professional service agents of the Board may be
21        subject to terms and conditions relating  to  limitations
22        or   prohibitions   in  representation,  employment,  and
23        contracting with entities or individuals licensed by  the
24        Board  or applying for Board licensure.  Such limitations
25        and prohibitions shall be contained in  the  professional
26        service  contracts  of  the  Board.  For purposes of this
27        Section, "professional service agents of the Board" shall
28        include  any   person,   corporation,   or   organization
29        providing legal, accounting, financial, public relations,
30        auditing,  architectural,  data processing, or management
31        consulting services.
32             (10)  Members of the Board and all employees of  the
33        Board may not solicit political contributions from others
34        for any political purpose, including, but not limited to,
                            -16-               LRB9002182LDdv
 1        candidates  for  elective  office or any political cause.
 2        Nothing in this paragraph (10) precludes a  Board  member
 3        or  any  employee of the Board from making a contribution
 4        for a political purpose.
 5             (11)  No member of the  Board  or  employee  of  the
 6        Board  shall  use  his  or  her  capacity or authority to
 7        influence an election.
 8             (12)  No member of the  Board  or  employee  of  the
 9        Board  shall  act  in an official capacity where a family
10        member has a direct or indirect financial interest.
11             (13)  No Board member or employee of the  Board  may
12        hold  an  elective  office of the State or of any unit of
13        local government, school  district,  or  political  party
14        that conflicts with his or her official duties as a Board
15        member   or  employee  of  the  Board.   Any  current  or
16        prospective Board member or employee  of  the  Board  may
17        request  an  opinion  of  the  Attorney  General  on  the
18        question  of  whether  the  holding  of a specific office
19        would conflict with the  duties  of  a  Board  member  or
20        employee of the Board.
21             (14)  Members  of the Board and all employees of the
22        Board shall be required to complete and file on a  timely
23        basis with the Board of Ethics, the Statement of Economic
24        Interest  required  pursuant  to  Executive Order 77-3 as
25        issued or amended.  A copy of the Statement  of  Economic
26        Interest shall be provided to the Administrator.
27        (b)  The  purpose  of  this  amendatory Act of 1997 is to
28    assure, to the maximum extent possible, that persons  subject
29    to  this  Section  avoid situations or relationships that may
30    lead to or represent a conflict of interest.  If an  employee
31    of   the   Board   has  a  question  or  concern  as  to  the
32    applicability of this Section to  a  current  or  prospective
33    situation or relationship, that matter should be presented to
34    the   Chairman   of   the  Board  or  the  Administrator  for
                            -17-               LRB9002182LDdv
 1    clarification or guidance.
 2        Certain of the prohibitions in this Section apply to  the
 3    parents and children of the Board members and employees.  For
 4    purposes  of  this  Section, these represent the blood lineal
 5    relations of employees or Board members and, in the  case  of
 6    children, legally adopted children.  It is recognized that in
 7    some  cases, members and employees may have limited influence
 8    over  the  decisions  of  these  relatives.    This   limited
 9    influence shall be taken into consideration in evaluating the
10    circumstances of a violation or a potential violation of this
11    Section  that involves the lineal relatives of a Board member
12    or employee.
13        (c)  A violation of subsection (a) by a Board  member  or
14    employee  of  the Board constitutes a Class A misdemeanor for
15    which a fine of up to $10,000 may be imposed.  Each violation
16    of subsection (a) constitutes a separate offense.
17        (d)  A violation of subsection  (a)  by  a  Board  member
18    constitutes  grounds for removal from office by the Governor.
19    A violation of subsection (a) by an employee  of  the  Board,
20    established either by a conviction under subsection (c) or by
21    the  Board  or  the  Administrator  after  investigation  and
22    hearing, constitutes grounds for termination of employment by
23    the Board.
24        (e)  A  person  who  is an applicant for or a holder of a
25    license issued under this Act, and an agent or representative
26    of such a person, shall not do  or  attempt  to  do  any  act
27    constituting  or encouraging the violation of this Section by
28    a Board member or person in the service of the  Board  or  by
29    their  respective spouses, children, or parents.  A violation
30    of this subsection (e) is a Class A misdemeanor for  which  a
31    fine of up to $10,000 may be imposed.  Each violation of this
32    subsection (e) constitutes a separate offense.
33        (f)  The provisions of this Section are not in derogation
34    of any civil, administrative, or criminal penalty existing in
                            -18-               LRB9002182LDdv
 1    any other law.
 2        (230 ILCS 10/6) (from Ch. 120, par. 2406)
 3        Sec. 6.  Application for Owners License.
 4        (a)  A  qualified  person  may  apply to the Board for an
 5    owners license to conduct a riverboat gambling  operation  as
 6    provided in this Act.  The application shall be made on forms
 7    provided  by  the Board and shall contain such information as
 8    the Board  prescribes,  including  but  not  limited  to  the
 9    identity of the riverboat on which such gambling operation is
10    to  be  conducted and the exact location where such riverboat
11    will be docked, a certification that the  riverboat  will  be
12    registered  under this Act at all times during which gambling
13    operations  are  conducted  on  board,  detailed  information
14    regarding the ownership and management of the applicant,  and
15    detailed   personal   information  regarding  the  applicant.
16    Information provided on the application shall be  used  as  a
17    basis for a thorough background investigation which the Board
18    shall  conduct with respect to each applicant.  An incomplete
19    application shall be cause for denial of  a  license  by  the
20    Board.
21        (b)  Applicants  shall  submit with their application all
22    documents, resolutions,  and  letters  of  support  from  the
23    governing  body  that  represents  the municipality or county
24    wherein the licensee will dock.
25        (c)  Each applicant shall disclose the identity of  every
26    person,  association,  trust  or corporation having a greater
27    than  1%  direct  or  indirect  pecuniary  interest  in   the
28    riverboat  gambling  operation  with  respect  to  which  the
29    license  is  sought.  If the disclosed entity is a trust, the
30    application shall disclose the names  and  addresses  of  the
31    beneficiaries;  if  a corporation, the names and addresses of
32    all stockholders and directors; if a partnership,  the  names
33    and addresses of all partners, both general and limited.
                            -19-               LRB9002182LDdv
 1        (d)  An   application   shall  be  filed  and  considered
 2    pursuant to the rules of with the Board by January 1  of  the
 3    year preceding any calendar year for which an applicant seeks
 4    an  owners  license;  however,  applications  for  an  owners
 5    license  permitting  operations  on  January 1, 1991 shall be
 6    filed by July 1, 1990.  An application fee of  $50,000  shall
 7    be  paid at the time of filing to defray the costs associated
 8    with the background investigation conducted by the Board.  If
 9    the costs of the investigation exceed $50,000, the  applicant
10    shall  pay  the additional amount to the Board.  If the costs
11    of the investigation are less  than  $50,000,  the  applicant
12    shall   receive  a  refund  of  the  remaining  amount.   All
13    information,  records,   interviews,   reports,   statements,
14    memoranda  or  other data supplied to or used by the Board in
15    the course of its review or investigation of  an  application
16    for  a  license  under this Act shall be privileged, strictly
17    confidential and shall  be  used  only  for  the  purpose  of
18    evaluating   an   applicant.    Such   information,  records,
19    interviews, reports,  statements,  memoranda  or  other  data
20    shall  not be admissible as evidence, nor discoverable in any
21    action of any kind in  any  court  or  before  any  tribunal,
22    board,  agency  or  person,  except  for  any  action  deemed
23    necessary by the Board.
24        (e)  The  Board  shall charge each applicant a fee set by
25    the Department of State Police to defray the costs associated
26    with the search and classification of  fingerprints  obtained
27    by  the  Board  with  respect to the applicant's application.
28    These fees shall be paid into the State Police Services Fund.
29        (f)  The licensed owner shall  be  the  person  primarily
30    responsible for the boat itself.  Only one riverboat gambling
31    operation  may  be  authorized by the Board on any riverboat.
32    The applicant must identify each riverboat it intends to  use
33    and  certify  that  the  riverboat:  (1)  has  the authorized
34    capacity required in this Act; (2) is accessible to  disabled
                            -20-               LRB9002182LDdv
 1    persons;  (3)  is either a replica of a 19th century Illinois
 2    riverboat or of a casino cruise ship design; and (4) is fully
 3    registered and licensed in  accordance  with  any  applicable
 4    laws.
 5        (g)  The  requirements of this Section shall apply to the
 6    issuance of any owners license under this Act  and,  pursuant
 7    to  the  rules  of  the Board, shall apply to the transfer of
 8    ownership interests in a license.
 9        (h) (g)  A person who knowingly makes a  false  statement
10    on an application is guilty of a Class A misdemeanor.
11    (Source: P.A. 86-1029; 86-1389.)
12        (230 ILCS 10/7) (from Ch. 120, par. 2407)
13        Sec. 7.  Owners Licenses.
14        (a)  The  Board  shall  issue owners licenses to persons,
15    firms or corporations which  apply  for  such  licenses  upon
16    payment to the Board of the non-refundable license fee set by
17    the  Board,  upon  payment  of  a $25,000 license fee for the
18    first year of operation and a $5,000  license  fee  for  each
19    succeeding  year  and  upon a determination by the Board that
20    the applicant is eligible for an owners  license pursuant  to
21    this  Act  and  the  rules  of  the Board.  A person, firm or
22    corporation is ineligible to receive an owners license if:
23             (1)  the person has been convicted of a felony under
24        the laws of this State, any other state,  or  the  United
25        States;
26             (2)  the  person has been convicted of any violation
27        of  Article  28  of  the  Criminal  Code  of   1961,   or
28        substantially similar laws of any other jurisdiction;
29             (3)  the  person  has submitted an application for a
30        license under this Act which contains false information;
31             (4)  the person is a member of the Board;
32             (5)  a person defined in (1), (2), (3) or (4) is  an
33        officer,  director  or managerial employee of the firm or
                            -21-               LRB9002182LDdv
 1        corporation;
 2             (6)  the  firm  or  corporation  employs  a   person
 3        defined  in  (1), (2), (3) or (4) who participates in the
 4        management or operation of gambling operations authorized
 5        under this Act;
 6             (7)  the person, firm or corporation  owns more than
 7        a 10% ownership interest in any entity holding an  owners
 8        license issued under this Act; or
 9             (8)  a  license  of  the person, firm or corporation
10        issued under this Act, or a license  to  own  or  operate
11        gambling  facilities  in any other jurisdiction, has been
12        revoked.
13        (b)  In determining whether to grant an owners license to
14    an applicant, the Board shall consider:
15             (1)  the character, reputation, experience, business
16        history, business practices  and financial  integrity  of
17        the  applicants  and of any other or separate person that
18        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;
                            -22-               LRB9002182LDdv
 1             (6)  whether the applicant  has  adequate  financial
 2        means and capitalization to provide and maintain, for the
 3        duration 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   the   his
10    application, on forms provided by the Board, 2  sets  of  all
11    his fingerprints required by the Board.
12        (e)  The  Board  may  issue up to 10 licenses authorizing
13    the holders of such  licenses  to  own  riverboats.   In  the
14    application  for an owners license, the applicant shall state
15    the dock at which the riverboat is based  and  the  navigable
16    stream  on which the riverboat will operate.  At all times at
17    least 6  of  the  owners  licenses  shall  specify  that  the
18    riverboats  shall  dock  and  operate outside the counties of
19    Cook, DuPage, Kane, Lake, McHenry and Will.  The Board  shall
20    issue 5 licenses to become effective not earlier than January
21    1,  1991.  Four  of  such  licenses shall authorize riverboat
22    gambling  on  the  Mississippi  River,  one  of  which  shall
23    authorize riverboat gambling from a home dock in the city  of
24    East  St.  Louis. The other license shall authorize riverboat
25    gambling on the Illinois River south of Marshall County.  The
26    Board  shall  issue  1 additional license to become effective
27    not  earlier  than  March  1,  1992,  which  shall  authorize
28    riverboat gambling on the Des Plaines River in  Will  County.
29    The Board may issue 4 additional licenses to become effective
30    not  earlier than March 1, 1992. In determining the navigable
31    streams upon which  riverboats  will  operate  with  licenses
32    effective  on  or after March 1, 1992, the Board in selecting
33    from among competing applications shall consider the economic
34    benefit which riverboat gambling confers on the State and the
                            -23-               LRB9002182LDdv
 1    local area where riverboats operate, and shall seek to assure
 2    that all regions of the State share in the economic  benefits
 3    of riverboat gambling.
 4        In  granting  all  licenses, the Board may give favorable
 5    consideration to economically depressed areas of  the  State,
 6    to  applicants presenting plans which provide for significant
 7    economic development over a large  geographic  area,  and  to
 8    applicants  who  currently operate non-gambling riverboats in
 9    Illinois.  The Board shall review all applications for owners
10    licenses, and shall inform  each  applicant  of  the  Board's
11    decision.
12        The  Board  may  revoke  the owners license of a licensee
13    which fails to begin  regular  riverboat  cruises  within  12
14    months  of receipt of the Board's approval of the application
15    if the Board determines that license  revocation  is  in  the
16    best interests of the State.
17        (f)  The  first  10 owners licenses issued under this Act
18    shall permit the  holder  to  own  up  to  2  riverboats  and
19    equipment  thereon  for  an initial a period of 3 years after
20    the effective date of the license. Holders of  the  first  10
21    owners  licenses  must pay the annual license fee for each of
22    the  3  years  during  which  they  are  authorized  to   own
23    riverboats.
24        (g)  Upon  the  termination,  expiration or revocation of
25    owners each of the first 10 licenses, which shall  be  issued
26    initially  for a 3 year period, all licenses are renewable as
27    provided under  Section  7.1  and  the  rules  of  the  Board
28    annually  upon  payment  of  the  annual  license  fee  and a
29    determination by the Board that  the  licensee  continues  to
30    meet  all  of  the  requirements  of this Act and the Board's
31    rules. If any owners license is not renewed  upon  expiration
32    of  the  initial  3  year  licensing  period or any licensing
33    period thereafter, or if a license is revoked  or  terminated
34    for  any  reason  prior  to  the  expiration of the licensing
                            -24-               LRB9002182LDdv
 1    period, in accordance with its rules the Board shall  solicit
 2    and  review applications for the owners license and issue the
 3    license to an applicant based upon the Board's  consideration
 4    of  all  relevant  factors  used  in  granting  other  owners
 5    licenses.
 6        (h)  An  owners license shall entitle the licensee to own
 7    up to 2 riverboats.  A licensee shall  limit  the  number  of
 8    gambling  participants  to 1,200 for any such owners license.
 9    Riverboats licensed to operate on the Mississippi  River  and
10    the  Illinois  River  south  of Marshall County shall have an
11    authorized capacity of  at  least  500  persons.   Any  other
12    riverboat  licensed  under  this Act shall have an authorized
13    capacity of at least 400 persons.
14        (i)  A licensed owner is authorized to apply to the Board
15    for and, if approved therefor, to receive all  licenses  from
16    the  Board  necessary  for  the  operation  of  a  riverboat,
17    including  a  liquor  license, a license to prepare and serve
18    food for human consumption,  and  other  necessary  licenses.
19    All  use, occupation and excise taxes which apply to the sale
20    of food and beverages in this State and all taxes imposed  on
21    the  sale  or use of tangible personal property apply to such
22    sales aboard the riverboat.
23        (j)  None of the first 5 licenses issued by the Board  to
24    become  effective  not  earlier  than  January  1, 1991 shall
25    authorize a riverboat  to  dock  in  a  municipality  with  a
26    population of under 2,000; however, this restriction does not
27    apply  to  any  additional  licenses  issued  by the Board to
28    become effective not earlier than March 1, 1992.   The  Board
29    may  issue  a  license  authorizing  a riverboat to dock in a
30    municipality only if, prior to the issuance of  the  license,
31    the governing body of the municipality has by a majority vote
32    approved  the docking of riverboats in the municipality.  The
33    Board may issue a license authorizing a riverboat to dock  in
34    areas  of a county outside any municipality only if, prior to
                            -25-               LRB9002182LDdv
 1    the issuance of the license, the governing body of the county
 2    has by a majority vote approved of the docking of  riverboats
 3    within such areas.
 4        (k)  Nothing in this Act shall be interpreted to prohibit
 5    a  licensed owner from operating a school for the training of
 6    any occupational licensee.
 7    (Source: P.A. 86-1029; 86-1389; 86-1475; 87-826.)
 8        (230 ILCS 10/7.1 new)
 9        Sec. 7.1.  Additional requirements.
10        (a)  The Board may authorize renewal of an owners license
11    for a period up to 4 years  when,  in  the  judgment  of  the
12    Board,  such renewal is in the best interests of this Act and
13    in the best interests of the conduct of gaming.
14        (b)  Upon renewal of an owners license, or at such  other
15    time  as  may be required during the term of the license, the
16    Board may impose such restrictions and  conditions  upon  the
17    holder  of  the  owners  license  as,  in the judgment of the
18    Board, are necessary and appropriate to:
19             (1)  Promote and maintain the legislative intent  of
20        this Act;
21             (2)  Improve the conduct and integrity of gaming and
22        gaming operations; and
23             (3)  Maintain  the financial viability of the gaming
24        operation.
25        (c)  The Board may adopt rules and regulations  regarding
26        changes in the ownership interest of an owners license as
27        may be required to:
28             (1)  Promote  and maintain the legislative intent of
29        this Act;
30             (2)  Promote and maintain the integrity and  conduct
31        of gaming and gaming operations;
32             (3)  Assure  that  ownership  interest  is  held  by
33        persons or entities with appropriate levels of management
                            -26-               LRB9002182LDdv
 1        and gaming acumen and experience;
 2             (4)  Promote and maintain the financial viability of
 3        the gaming operation; and
 4             (5)  Assure  the  additional standards for ownership
 5        approval prescribed in other Sections  of  this  Act  are
 6        met.
 7        (d)  The   Board   shall   adopt  rules  and  regulations
 8    concerning the  contractual  and  financial  transactions  of
 9    licensed    gaming    operations,   including   payments   or
10    distributions to related parties, as are necessary to:
11             (1)  Assure  that  all  consideration  included   in
12        contracts,  written  or  oral,  is based upon fair market
13        value;
14             (2)  Assure such transactions  do  not  infringe  or
15        tend  to  infringe  upon  the  integrity of gaming or the
16        legislative intent of the Act;
17             (3)  Preserve  the   equity   base   and   financial
18        viability of a licensed gaming operation; and
19             (4)  Prevent unauthorized payment or distribution of
20        the   benefits  of  ownership  interest  in  an  Illinois
21        riverboat gambling operation.
22        (230 ILCS 10/8) (from Ch. 120, par. 2408)
23        Sec. 8.  Suppliers licenses.
24        (a)  The Board may issue  a  suppliers  license  to  such
25    persons,  firms or corporations which apply therefor upon the
26    payment of a non-refundable application fee set by the Board,
27    upon a determination by  the  Board  that  the  applicant  is
28    eligible for a suppliers license and upon payment of a $5,000
29    annual  license  fee.  The  Board  may by rule provide for an
30    annual supplier license fee graduated on  the  basis  of  the
31    amount of business transacted in Illinois, but in no case may
32    such graduated fees exceed $5,000 per year.
33        (b)  The  holder  of a suppliers license is authorized to
                            -27-               LRB9002182LDdv
 1    sell or lease, and to contract to  sell  or  lease,  gambling
 2    equipment  and  supplies  to  any  licensee  involved  in the
 3    ownership or management of gambling operations.
 4        (c)  Gambling  supplies  and   equipment   may   not   be
 5    distributed   unless   supplies   and  equipment  conform  to
 6    standards adopted by rules of the Board.
 7        (d)  A person,  firm  or  corporation  is  ineligible  to
 8    receive a suppliers license if:
 9             (1)  the person has been convicted of a felony under
10        the  laws  of  this State, any other state, or the United
11        States;
12             (2)  the person has been convicted of any  violation
13        of   Article   28  of  the  Criminal  Code  of  1961,  or
14        substantially similar laws of any other jurisdiction;
15             (3)  the person has submitted an application  for  a
16        license under this Act which contains false information;
17             (4)  the person is a member of the Board;
18             (5)  the  firm  or  corporation  is  one  in which a
19        person defined in (1), (2), (3) or (4),  is  an  officer,
20        director or managerial employee;
21             (6)  the  firm  or corporation  employs a person who
22        participates in the management or operation of  riverboat
23        gambling authorized under this Act; or
24             (7)  the  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        (e)  Any person that supplies any equipment, devices,  or
29    supplies  to  a  licensed  riverboat  gambling operation must
30    first obtain a suppliers license.  A supplier  shall  furnish
31    to  the  Board  a list of all equipment, devices and supplies
32    offered for sale or lease in connection with  gambling  games
33    authorized  under  this  Act. A supplier shall keep books and
34    records for the furnishing of equipment, devices and supplies
                            -28-               LRB9002182LDdv
 1    to gambling operations separate and distinct from  any  other
 2    business  that  the supplier might operate.  A supplier shall
 3    file a quarterly return with the Board listing all sales  and
 4    leases.  A  supplier  shall permanently affix its name to all
 5    its equipment, devices, and supplies for gambling operations.
 6    Any supplier's equipment, devices or supplies which are  used
 7    by  any person in an unauthorized gambling operation shall be
 8    forfeited to the State.  A licensed owner  may  own  its  own
 9    equipment,  devices  and  supplies.  Each holder of an owners
10    license under the Act shall file an annual report listing its
11    inventories of gambling equipment, devices and supplies.
12        (f)  Any person who knowingly makes a false statement  on
13    an application is guilty of a Class A misdemeanor.
14        (g)  Any   gambling   equipment,   devices  and  supplies
15    provided by any licensed supplier may either be  repaired  on
16    the  riverboat  or  removed from the riverboat to an on-shore
17    facility owned by the holder of an owners license for repair.
18    (Source: P.A. 86-1029; 87-826.)
19        (230 ILCS 10/9) (from Ch. 120, par. 2409)
20        Sec. 9.  Occupational licenses.
21        (a)  The Board may issue an occupational  license  to  an
22    applicant upon the payment of a non-refundable fee set by the
23    Board,  upon  a determination by the Board that the applicant
24    is eligible for an occupational license and upon  payment  of
25    an  annual license fee in an amount to be established.  To be
26    eligible for an occupational license, an applicant must:
27             (1)  be at least 21 years of age  if  the  applicant
28        will  perform any function involved in gaming by patrons.
29        Any applicant  seeking  an  occupational  license  for  a
30        non-gaming function shall be at least 18 years of age;
31             (2)  not  have been convicted of a felony offense, a
32        violation of Article 28 of the Criminal Code of 1961,  or
33        a  similar  statute of any other jurisdiction, or a crime
                            -29-               LRB9002182LDdv
 1        involving dishonesty or moral turpitude;
 2             (3)  have demonstrated a level of skill or knowledge
 3        which the Board determines to be necessary  in  order  to
 4        operate gambling aboard a riverboat; and
 5             (4)  have  met  standards  for  the  holding  of  an
 6        occupational  license  as  adopted by rules of the Board.
 7        Such rules  shall  provide  that  any  person  or  entity
 8        seeking   an  occupational  license  to  manage  gambling
 9        operations  hereunder  shall  be  subject  to  background
10        inquiries  and  further  requirements  similar  to  those
11        required   of   applicants   for   an   owners   license.
12        Furthermore, such rules  shall  provide  that  each  such
13        entity  shall  be permitted to manage gambling operations
14        for only one licensed owner.
15        (b)  Each application for an occupational  license  shall
16    be  on  forms  prescribed  by the Board and shall contain all
17    information required by the Board.  The applicant  shall  set
18    forth  in  the application:  whether he has been issued prior
19    gambling related licenses; whether he has  been  licensed  in
20    any  other  state under any other name, and, if so, such name
21    and his age; and whether or not a permit or license issued to
22    him in any other state  has  been  suspended,  restricted  or
23    revoked, and, if so, for what period of time.
24        (c)  Each applicant shall submit with his application, on
25    forms  provided by the Board, 2 sets of his fingerprints. The
26    Board shall charge each applicant a fee set by the Department
27    of State Police to  defray  the  costs  associated  with  the
28    search  and  classification  of  fingerprints obtained by the
29    Board with respect to  the  applicant's  application.   These
30    fees shall be paid into the State Police Services Fund.
31        (d)  The   Board   may   in   its  discretion  refuse  an
32    occupational license to any person: (1) who is unqualified to
33    perform the duties required of such applicant; (2) who  fails
34    to  disclose  or states falsely any information called for in
                            -30-               LRB9002182LDdv
 1    the application; (3) who has been found guilty of a violation
 2    of this Act  or  whose  prior  gambling  related  license  or
 3    application  therefor has been suspended, restricted, revoked
 4    or denied for just cause in any other state; or (4)  for  any
 5    other just cause.
 6        (e)  The  Board  may  suspend,  revoke  or  restrict  any
 7    occupational  licensee: (1) for violation of any provision of
 8    this  Act;  (2)  for  violation  of  any  of  the  rules  and
 9    regulations of the Board; (3) for any cause which,  if  known
10    to  the  Board,  would  have  disqualified the applicant from
11    receiving such license; or (4) for default in the payment  of
12    any  obligation  or debt due to the State of Illinois; or (5)
13    for any other just cause.
14        (f)  A person who knowingly makes a false statement on an
15    application is guilty of a Class A misdemeanor.
16        (g)  Any license issued pursuant to this Section shall be
17    valid for a period of one year from the date of issuance.
18        (h)  Nothing in this Act shall be interpreted to prohibit
19    a licensed owner from  entering  into  an  agreement  with  a
20    public  community  college  or  a  school  approved under the
21    Private Business and Vocational Schools Act for the  training
22    of any occupational licensee.  Any training offered by such a
23    school  shall  be  in  accordance  with  a  written agreement
24    between the licensed owner and the school.
25        (i)  Any training provided for occupational licensees may
26    be conducted either on the riverboat  or  at  a  school  with
27    which a licensed owner has entered into an agreement pursuant
28    to subsection (h).
29    (Source: P.A. 86-1029; 87-826.)
30        (230 ILCS 10/11) (from Ch. 120, par. 2411)
31        Sec. 11.  Conduct of gambling.
32        (a)  Gambling  may be conducted by licensed owners aboard
33    riverboats, subject to the following standards:
                            -31-               LRB9002182LDdv
 1             (1)  Except as authorized by this Act,  no  gambling
 2        may be conducted while a riverboat is docked.
 3             (2)  Riverboat  cruises may not exceed 4 hours for a
 4        round trip, with the exception of any  extended  cruises,
 5        each of which shall be expressly approved by the Board.
 6             (3)  Minimum  and  maximum  wagers on games shall be
 7        set by the licensee.
 8             (4)  Agents of the Board and the Department of State
 9        Police may board and inspect any riverboat  at  any  time
10        for  the purpose of determining whether this Act is being
11        complied with.  Every riverboat, if under way  and  being
12        hailed  by  a  law  enforcement  officer  or agent of the
13        Board, must stop immediately and lay to.
14             (5)  Employees of the Board shall have the right  to
15        be  present  on  the  riverboat or on adjacent facilities
16        under the control of the licensee.
17             (6)  Gambling  equipment  and  supplies  customarily
18        used in conducting riverboat gambling must  be  purchased
19        or  leased  only from suppliers licensed for such purpose
20        under this Act. However, the Board may approve  the  sale
21        or lease of gambling equipment and supplies by a licensed
22        owner.  A licensed owner may bring gambling equipment and
23        supplies that it has legally acquired into this State for
24        use in Illinois, subject to approval of the Board.
25             (7)  Persons licensed under this Act shall permit no
26        form of wagering on gambling games except as permitted by
27        this Act.
28             (8)  Wagers  may  be  received  only  from  a person
29        present on a licensed riverboat.  No person present on  a
30        licensed  riverboat  shall  place  or  attempt to place a
31        wager on behalf of another person who is not  present  on
32        the riverboat.
33             (9)  Wagering  shall  not be conducted with money or
34        other negotiable currency.
                            -32-               LRB9002182LDdv
 1             (10)  A person under age 21 shall not  be  permitted
 2        on  an  area  of  a  riverboat  where  gambling  is being
 3        conducted, except for a person at least 18 years  of  age
 4        who  is  an employee of the riverboat gambling operation.
 5        No employee under  age  21  shall  perform  any  function
 6        involved  in gambling by the patrons. No person under age
 7        21 shall be permitted to make a wager under this Act, and
 8        any winnings that are the result of such an illegal wager
 9        by a person under age 21, whether  or  not  paid  by  the
10        gambling  operation,  shall  be  treated  as winnings for
11        wagering tax purposes, confiscated, and forfeited to  the
12        State and deposited in the Education Assistance Fund.
13             (11)  Gambling  excursion cruises are permitted only
14        when the navigable stream  for  which  the  riverboat  is
15        licensed  is  navigable,  as  determined  by the Board in
16        consultation with the U.S. Army Corps of Engineers.
17             (12)  All tokens, chips or electronic cards used  to
18        make  wagers  must  be  purchased  from  a licensed owner
19        either aboard a riverboat or at an onshore facility which
20        has been approved by the Board and which is located where
21        the riverboat docks.  The  tokens,  chips  or  electronic
22        cards  may  be  purchased  by means of an agreement under
23        which the owner  extends  credit  to  the  patron.   Such
24        tokens,  chips  or  electronic  cards  may  be used while
25        aboard the riverboat  only  for  the  purpose  of  making
26        wagers on gambling games.
27             (13)  Notwithstanding any other Section of this Act,
28        in  addition  to the other licenses authorized under this
29        Act, the Board may issue special event licenses  allowing
30        persons   who  are  not  otherwise  licensed  to  conduct
31        riverboat  gambling  to  conduct  such  gambling   on   a
32        specified  date  or  series of dates.  Riverboat gambling
33        under such a license may take place on  a  riverboat  not
34        normally  used  for  riverboat gambling.  The Board shall
                            -33-               LRB9002182LDdv
 1        establish standards, fees and fines for, and  limitations
 2        upon, such licenses, which may differ from the standards,
 3        fees,  fines  and  limitations otherwise applicable under
 4        this Act.  All such fees  shall  be  deposited  into  the
 5        State  Gaming  Fund.   All  such fines shall be deposited
 6        into the Education Assistance Fund, created by Public Act
 7        86-0018, of the State of Illinois.
 8             (14)  In addition to the  above,  gambling  must  be
 9        conducted  in  accordance  with  all rules adopted by the
10        Board.
11    (Source: P.A. 86-1029; 86-1389; 87-826.)
12        (230 ILCS 10/11.2 new)
13        Sec. 11.2.  Riverboat cruises and gambling excursions.
14        (a)  The Board shall establish all requirements  for  the
15    times  and  conditions under which a riverboat licensed under
16    this Act shall cruise while gaming is conducted.   The  Board
17    shall  assure  that  each  riverboat  licensed under this Act
18    conducts gaming cruises to  the  maximum  extent  practicable
19    given concerns for vessel and passenger safety.
20        (B)  The  Board  shall establish the requirements for the
21    conduct of gaming excursions, including the  length  of  time
22    for  gaming  excursions and the conditions under which gaming
23    may be conducted while passenger ingress  and  egress  is  in
24    progress.
25        (230 ILCS 10/13) (from Ch. 120, par. 2413)
26        Sec. 13.  Wagering tax; Rate; Distribution.
27        (a)  A  tax  is  imposed  on  the adjusted gross receipts
28    received from gambling games authorized under this Act at the
29    rate of 20%.  The taxes imposed by this Section shall be paid
30    by the licensed owner to the Board after the close of the day
31    when the wagers were made but not later than the  time  fixed
32    by the Board.
                            -34-               LRB9002182LDdv
 1        (b)  Twenty-five   percent   (25%)  of  the  tax  revenue
 2    deposited in the State Gaming Fund under this  Section  shall
 3    be paid, subject to appropriation by the General Assembly, to
 4    the  unit of local government which is designated as the home
 5    dock of the riverboat.
 6        (c)  Appropriations, as approved by the General Assembly,
 7    may  be  made  from  the  State  Gaming  Fund  to  the  Board
 8    Department of Revenue and the Department of State Police  for
 9    the administration and enforcement of this Act.
10        (d)  From  time  to  time,  the  Board shall transfer the
11    remainder of  the  funds  generated  by  this  Act  into  the
12    Education  Assistance Fund, created by Public Act 86-0018, of
13    the State of Illinois.
14        (e)  Nothing in this Act shall prohibit the unit of local
15    government designated as the home dock of the riverboat  from
16    entering into agreements with other units of local government
17    in  this State or in other states to share its portion of the
18    tax revenue.
19        (f)  The Board shall administer and collect the  wagering
20    taxes imposed by this Section to the extent practicable, in a
21    manner  consistent  with the provisions of Sections 4, 5, 5a,
22    5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9,  and  10
23    of  the  Retailers' Occupation Tax Act and Section 3-7 of the
24    Uniform Penalty and Interest Act.
25    (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 7-1-95.)
26        (230 ILCS 10/18) (from Ch. 120, par. 2418)
27        Sec. 18.  Prohibited Activities - Penalty.
28        (a)  A person is guilty of  a  Class  A  misdemeanor  for
29    doing any of the following:
30             (1)  Operating  a  gambling excursion where wagering
31        is used or to be used without a  license  issued  by  the
32        Board.
33             (2)  Operating  a  gambling excursion where wagering
                            -35-               LRB9002182LDdv
 1        is permitted  other  than  in  the  manner  specified  by
 2        Section 11.
 3        (b)  A  person  is  guilty  of  a Class B misdemeanor for
 4    doing any of the following:
 5             (1)  permitting a person under 21 years  to  make  a
 6        wager; or
 7             (2)  violating  paragraph  (12) of subsection (a) of
 8        Section 11 of this Act.
 9        (c)  A person  wagering  or  accepting  a  wager  at  any
10    location outside the riverboat is subject to the penalties in
11    paragraphs  (1)  or  (2) of subsection (a) of Section 28-1 of
12    the Criminal Code of 1961.
13        (d)  A person commits a Class 4 felony and, in  addition,
14    shall   be   barred   for  life  from  riverboats  under  the
15    jurisdiction of the Board, if the  person  does  any  of  the
16    following:
17             (1)  Offers, promises, or gives anything of value or
18        benefit  to  a  person  who is connected with a riverboat
19        owner including,  but  not  limited  to,  an  officer  or
20        employee of a licensed owner or holder of an occupational
21        license  pursuant  to an agreement or arrangement or with
22        the intent that the promise or thing of value or  benefit
23        will  influence  the  actions  of  the person to whom the
24        offer, promise, or gift was made in order  to  affect  or
25        attempt  to  affect the outcome of a gambling game, or to
26        influence official action of a member of the Board.
27             (2)  Solicits or knowingly  accepts  or  receives  a
28        promise  of anything of value or benefit while the person
29        is connected with a riverboat including, but not  limited
30        to, an officer or employee of a licensed owner, or holder
31        of  an occupational license, pursuant to an understanding
32        or arrangement or with the intent  that  the  promise  or
33        thing  of  value or benefit will influence the actions of
34        the person to affect or attempt to affect the outcome  of
                            -36-               LRB9002182LDdv
 1        a  gambling  game,  or  to influence official action of a
 2        member of the Board.
 3             (3)  Uses or possesses with  the  intent  to  use  a
 4        device to assist:
 5                  (i)  In projecting the outcome of the game.
 6                  (ii)  In keeping track of the cards played.
 7                  (iii)  In  analyzing  the  probability  of  the
 8             occurrence  of  an  event  relating  to the gambling
 9             game.
10                  (iv)  In analyzing the strategy for playing  or
11             betting  to  be used in the game except as permitted
12             by the Board.
13             (4)  Cheats at a gambling game.
14             (5)  Manufactures, sells, or distributes any  cards,
15        chips,  dice, game or device which is intended to be used
16        to violate any provision of this Act.
17             (6)  Alters  or  misrepresents  the  outcome  of   a
18        gambling  game  on  which wagers have been made after the
19        outcome is made sure but before it  is  revealed  to  the
20        players.
21             (7)  Places  a  bet  after  acquiring knowledge, not
22        available to all players, of the outcome of the  gambling
23        game  which  is  subject of the bet or to aid a person in
24        acquiring the knowledge for the purpose of placing a  bet
25        contingent on that outcome.
26             (8)  Claims,  collects,  or  takes,  or  attempts to
27        claim, collect, or take, money or anything of value in or
28        from the gambling games, with intent to defraud,  without
29        having  made  a  wager  contingent  on winning a gambling
30        game, or claims, collects, or takes an amount of money or
31        thing of value of greater value than the amount won.
32             (9)  Uses counterfeit chips or tokens in a  gambling
33        game.
34             (10)  Possesses  any  key or device designed for the
                            -37-               LRB9002182LDdv
 1        purpose of opening, entering, or affecting the  operation
 2        of  a  gambling  game,  drop  box,  or  an  electronic or
 3        mechanical device connected with the gambling game or for
 4        removing coins, tokens,  chips or  other  contents  of  a
 5        gambling  game.   This paragraph (10) does not apply to a
 6        gambling licensee or  employee  of  a  gambling  licensee
 7        acting in furtherance of the employee's employment.
 8             (11)  Agrees  to share, receive or transfer a direct
 9        or indirect financial or ownership interest in an  owners
10        license  in  violation  of  the  disclosure  and approval
11        requirements of this Act and the rules of the Board.
12        (e)  The possession of  more  than  one  of  the  devices
13    described  in  subsection  (d),  paragraphs  (3), (5) or (10)
14    permits a rebuttable presumption that the possessor  intended
15    to use the devices for cheating.
16        (f)  A  person  under  the age of 21 years who, except as
17    authorized under subdivision (a)(10) of  Section  11,  enters
18    upon  a  riverboat commits a petty offense.  The fine for the
19    first offense shall be not less than $100 nor more than $250.
20    The fine for a second or subsequent offense shall be not less
21    than $200 nor more than $500.
22        (g)  An action to prosecute any crime occurring during  a
23    gambling  excursion  shall  be  tried  in Sangamon County the
24    county of the dock at which the riverboat is based.
25    (Source: P.A. 86-1029; 87-826.)
26        Section 99.  Effective date.  This Act takes effect  upon
27    becoming law.

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