State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Engrossed ][ Senate Amendment 002 ]
[ Senate Amendment 003 ]


92_HB0822sam001

 










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 1                     AMENDMENT TO HOUSE BILL 822

 2        AMENDMENT NO.     .  Amend House Bill  822  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Riverboat  Gambling Act is amended by
 5    adding Sections 11.3, 11.4, and 13.2 and changing Sections 3,
 6    4, 7, and 13 as follows:

 7        (230 ILCS 10/3) (from Ch. 120, par. 2403)
 8        Sec. 3.  Riverboat Gambling Authorized.
 9        (a)  Riverboat gambling  operations  and  the  system  of
10    wagering  incorporated  therein,  as defined in this Act, are
11    hereby authorized to the extent that they are carried out  in
12    accordance with the provisions of this Act.
13        (b)  This Act does not apply to the pari-mutuel system of
14    wagering  used  or intended to be used in connection with the
15    horse-race meetings as authorized under  the  Illinois  Horse
16    Racing  Act  of  1975,  lottery  games  authorized  under the
17    Illinois  Lottery  Law,  bingo  authorized  under  the  Bingo
18    License and Tax Act, charitable games  authorized  under  the
19    Charitable  Games  Act  or  pull tabs and jar games conducted
20    under the Illinois Pull Tabs and Jar Games Act.
21        (c)  Riverboat gambling conducted pursuant  to  this  Act
22    may be authorized upon any water within the State of Illinois
 
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 1    or  any  water  other  than Lake Michigan which constitutes a
 2    boundary of the State of Illinois. An  owners  licensee  that
 3    utilizes  gaming  positions  that have been reallocated to it
 4    pursuant to  Section  11.3  or  11.4  may  conduct  riverboat
 5    gambling  operations  using those reallocated positions in an
 6    area of a building that is on land if that  building  is  the
 7    same   building   in   which  its  other  riverboat  gambling
 8    operations are conducted. A licensee  may  conduct  riverboat
 9    gambling  authorized  under this Act regardless of whether it
10    conducts  excursion  cruises.   A  licensee  may  permit  the
11    continuous ingress and egress of passengers for  the  purpose
12    of gambling.
13    (Source: P.A. 91-40, eff. 6-25-99.)

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

14        (230 ILCS 10/7) (from Ch. 120, par. 2407)
15        Sec. 7.  Owners Licenses.
16        (a)  The Board shall issue owners  licenses  to  persons,
17    firms  or  corporations  which  apply  for such licenses upon
18    payment to the Board of the non-refundable license fee set by
19    the Board, upon payment of a  $25,000  license  fee  for  the
20    first  year of operation and a $50,000 $5,000 license fee for
21    each succeeding year and upon a determination  by  the  Board
22    that  the  applicant  is  eligible  for  an  owners   license
23    pursuant  to  this Act and the rules of the Board.  A person,
24    firm or  corporation  is  ineligible  to  receive  an  owners
25    license if:
26             (1)  the person has been convicted of a felony under
27        the  laws  of  this State, any other state, or the United
28        States;
29             (2)  the person has been convicted of any  violation
30        of   Article   28  of  the  Criminal  Code  of  1961,  or
31        substantially similar laws of any other jurisdiction;
32             (3)  the person has submitted an application  for  a
33        license under this Act which contains false information;
 
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 1             (4)  the person is a member of the Board;
 2             (5)  a  person defined in (1), (2), (3) or (4) is an
 3        officer, director or managerial employee of the  firm  or
 4        corporation;
 5             (6)  the   firm  or  corporation  employs  a  person
 6        defined in (1), (2), (3) or (4) who participates  in  the
 7        management or operation of gambling operations authorized
 8        under this Act;
 9             (7)  (blank); or
10             (8)  a  license  of  the person, firm or corporation
11        issued under this Act, or a license  to  own  or  operate
12        gambling  facilities  in any other jurisdiction, has been
13        revoked.
14        (b)  In determining whether to grant an owners license to
15    an applicant, the Board shall consider:
16             (1)  the  character,  reputation,  experience    and
17        financial integrity of the applicants and of any other or
18        separate person that either:
19                  (A)  controls,  directly  or  indirectly,  such
20             applicant, or
21                  (B)  is  controlled, directly or indirectly, by
22             such  applicant  or  by  a  person  which  controls,
23             directly or indirectly, such applicant;
24             (2)  the facilities or proposed facilities  for  the
25        conduct of riverboat gambling;
26             (3)  the  highest  prospective  total  revenue to be
27        derived by  the  State  from  the  conduct  of  riverboat
28        gambling;
29             (4)  the  good faith affirmative action plan of each
30        applicant to recruit, train and upgrade minorities in all
31        employment classifications;
32             (5)  the  financial  ability  of  the  applicant  to
33        purchase and maintain  adequate  liability  and  casualty
34        insurance;
 
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 1             (6)  whether     the    applicant    has    adequate
 2        capitalization to provide and maintain, for the  duration
 3        of a license, a riverboat; and
 4             (7)  the  extent  to  which the applicant exceeds or
 5        meets other standards  for  the  issuance  of  an  owners
 6        license which the Board may adopt by rule.
 7        (c)  Each  owners  license  shall specify the place where
 8    riverboats shall operate and dock.
 9        (d)  Each applicant shall submit with his application, on
10    forms provided by the Board, 2 sets of his fingerprints.
11        (e)  The Board may issue up to  10  licenses  authorizing
12    the  holders  of  such  licenses  to  own riverboats.  In the
13    application for an owners license, the applicant shall  state
14    the  dock  at  which  the riverboat is based and the water on
15    which the riverboat will be located. The Board shall issue  5
16    licenses  to  become  effective  not  earlier than January 1,
17    1991.  Three  of  such  licenses  shall  authorize  riverboat
18    gambling  on the Mississippi River, or in a municipality that
19    (1) borders on the Mississippi River or is within 5 miles  of
20    the  city  limits  of  a  municipality  that  borders  on the
21    Mississippi River and (2), on  the  effective  date  of  this
22    amendatory  Act of the 92nd General Assembly, has a riverboat
23    conducting  riverboat  gambling  operations  pursuant  to   a
24    license  issued  under this Act; one of which shall authorize
25    riverboat gambling from a home dock in the city of  East  St.
26    Louis.  One  other license shall authorize riverboat gambling
27    on the Illinois River south of  Marshall  County.  The  Board
28    shall  issue  1  additional  license  to become effective not
29    earlier than March 1, 1992, which shall  authorize  riverboat
30    gambling  on  the Des Plaines River in Will County. The Board
31    may issue 4  additional  licenses  to  become  effective  not
32    earlier  than  March  1, 1992.  In determining the water upon
33    which riverboats will operate, the Board shall  consider  the
34    economic  benefit  which  riverboat  gambling  confers on the
 
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 1    State, and shall seek to assure that all regions of the State
 2    share in the economic benefits of riverboat gambling.
 3        In granting all licenses, the Board  may  give  favorable
 4    consideration  to  economically depressed areas of the State,
 5    to applicants presenting plans which provide for  significant
 6    economic  development  over  a  large geographic area, and to
 7    applicants who currently operate non-gambling  riverboats  in
 8    Illinois.  The Board shall review all applications for owners
 9    licenses,  and  shall  inform  each  applicant of the Board's
10    decision.
11        The Board may revoke the owners  license  of  a  licensee
12    which  fails to begin conducting gambling within 15 months of
13    receipt of the Board's approval of  the  application  if  the
14    Board  determines  that  license  revocation  is  in the best
15    interests of the State.
16        (f)  The first 10 owners licenses issued under  this  Act
17    shall  permit  the  holder  to  own  up  to  2 riverboats and
18    equipment thereon for a period of 3 years after the effective
19    date of the license. Holders of the first 10 owners  licenses
20    must  pay  the  annual  license  fee  for each of the 3 years
21    during which they are authorized to own riverboats.
22        (g)  Upon the termination, expiration, or  revocation  of
23    each  of the first 10 licenses, which shall be issued for a 3
24    year period, all licenses are renewable annually upon payment
25    of the fee and a determination by the Board that the licensee
26    continues to meet all of the requirements of this Act and the
27    Board's rules.  However, for licenses renewed on or after May
28    1, 1998, renewal shall be for a period of 4 years, unless the
29    Board sets a shorter period.
30        (h)  An owners license shall entitle the licensee to  own
31    up  to  2  riverboats.   A licensee shall limit the number of
32    gambling participants to 1,200 for any such owners license. A
33    licensee may operate both  of  its  riverboats  concurrently,
34    provided  that  the  total number of gambling participants on
 
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 1    both riverboats does not exceed 1,200. Riverboats licensed to
 2    operate on the Mississippi River and the Illinois River south
 3    of Marshall County shall have an authorized  capacity  of  at
 4    least  500  persons.  Any other riverboat licensed under this
 5    Act shall  have  an  authorized  capacity  of  at  least  400
 6    persons.
 7        (i)  A licensed owner is authorized to apply to the Board
 8    for  and,  if approved therefor, to receive all licenses from
 9    the  Board  necessary  for  the  operation  of  a  riverboat,
10    including a liquor license, a license to  prepare  and  serve
11    food  for  human  consumption,  and other necessary licenses.
12    All use, occupation and excise taxes which apply to the  sale
13    of  food and beverages in this State and all taxes imposed on
14    the sale or use of tangible personal property apply  to  such
15    sales aboard the riverboat.
16        (j)    The  Board  may  issue  a  license  authorizing  a
17    riverboat  to  dock in a municipality or approve a relocation
18    under Section 11.2 only if, prior  to  the  issuance  of  the
19    license  or  approval, the governing body of the municipality
20    in which the riverboat will  dock  has  by  a  majority  vote
21    approved  the docking of riverboats in the municipality.  The
22    Board may issue a license authorizing a riverboat to dock  in
23    areas  of  a  county  outside  any  municipality or approve a
24    relocation under Section 11.2 only if, prior to the  issuance
25    of  the license or approval, the governing body of the county
26    has by a majority vote approved of the docking of  riverboats
27    within such areas.
28    (Source: P.A. 91-40, eff. 6-25-99.)

29        (230 ILCS 10/11.3 new)
30        Sec.  11.3. Unused gaming positions of a dormant license.
31    The  Board  shall  reallocate  unused  gaming  positions   as
32    provided in this Section within 30 days of the effective date
33    of  this  amendatory  Act  of the 92nd General Assembly.  The
 
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 1    reallocation of gaming positions authorized by  this  Section
 2    shall  be  made  by  the  Board  prior to the reallocation of
 3    gaming positions under Section 11.4.   The  gaming  positions
 4    authorized  by  a  dormant  license  shall be divided equally
 5    among all  eligible  licensees  and  may  be  used  by  those
 6    eligible  licensees  as  part  of  their  riverboat  gambling
 7    operations.  If an eligible licensee does not elect to obtain
 8    some or all of the additional gaming positions authorized  to
 9    it  under  this  Section,  all  other  eligible licensees may
10    divide those positions equally.
11        As soon as an owners licensee begins conducting riverboat
12    gambling operations authorized by a dormant license, eligible
13    licensees using gaming positions authorized pursuant to  this
14    Section shall no longer use those gaming positions.
15        For the purposes of this Section 11.3, the term "eligible
16    licensee"  means  an owners licensee that was in the top 4 in
17    adjusted gross receipts in calendar year 2001  as  determined
18    by  the  Board and the term "dormant license" means an owners
19    license that  is  authorized  by  this  Act  under  which  no
20    riverboat  gambling  operations  are  being conducting on the
21    effective date of this amendatory Act  of  the  92nd  General
22    Assembly.

23        (230 ILCS 10/11.4 new)
24        Sec.   11.4.   Rock   Island   licensee's  unused  gaming
25    positions. The Board shall reallocate unused gaming positions
26    as provided in this Section within 30 days after all  of  the
27    gaming  positions  subject to reallocation under Section 11.3
28    have been reallocated. Four hundred gaming  positions  of  an
29    owners  licensee  that conducts riverboat gambling operations
30    from a home dock in  Rock  Island  County  shall  be  divided
31    equally among all eligible licensees and may be used by those
32    eligible   licensees   as  part  of  the  riverboat  gambling
33    operations.
 
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 1        If an eligible owners licensee does not elect  to  obtain
 2    some  or all of the additional gaming positions authorized to
 3    it under this  Section,  all  other  eligible  licensees  may
 4    divide those positions equally.
 5        Eligible   licensees   that   receive  additional  gaming
 6    positions pursuant to this Section may  use  those  positions
 7    for a period of one year.
 8        As  soon  as the one-year period is over or as soon as an
 9    owners licensee whose gaming positions have been  reallocated
10    pursuant to this Section begins conducting riverboat gambling
11    operations  from  a home dock location that is different from
12    the home dock location  from  which  it  conducted  riverboat
13    gambling  operations on the effective date of this amendatory
14    Act of the 92nd General Assembly, whichever is  later,  those
15    reallocated gaming positions shall be automatically reclaimed
16    by the owners licensee that was originally entitled to them.
17        At  any  time  after  the  one-year period is over, if an
18    owners licensee whose gaming positions were reallocated under
19    this  Section  has  not  relocated  its  riverboat   gambling
20    operations  to  a new home dock location, it may reclaim some
21    or all of those gaming positions by  notifying  all  eligible
22    licensees  in  writing.  If a licensee reclaims less than all
23    of its reallocated gaming positions, all  eligible  licensees
24    that received those positions shall return them on a pro rata
25    basis.   If a licensee reclaims some but less than all of its
26    gaming positions, it may later reclaim  any  portion  of  the
27    remainder of those positions.
28        An  eligible  licensee  that  receives  a reallocation of
29    gaming positions under this Section shall no longer use those
30    positions after they have been reclaimed.
31        For purposes of this Section  11.4,  the  term  "eligible
32    licensee"  means  an  owners license that was in the top 4 in
33    adjusted gross receipts in calendar year 2001  as  determined
34    by the Board.
 
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 1        (230 ILCS 10/13.2 new)
 2        Sec. 13.2. Supplemental wagering tax.
 3        (a)  Beginning  on  July  1,  2002,  a  privilege  tax is
 4    imposed on persons engaged  in  the  business  of  conducting
 5    riverboat  gambling  operations,  based on the adjusted gross
 6    receipts received by a licensed  owner  from  gambling  games
 7    authorized  under  this  Act,  at  the  rate of 10% of annual
 8    adjusted gross receipts in excess of  $200,000,000.  For  the
 9    purpose  of  determining  annual  adjusted  gross receipts in
10    calendar year 2002, annual adjusted gross receipts  shall  be
11    measured  beginning  January  1,  2002. In a subsequent year,
12    annual adjusted gross receipts shall be measured beginning on
13    January 1 of that year. The  tax  imposed  pursuant  to  this
14    Section  is  in addition to any other tax imposed pursuant to
15    this Act.
16        (b)  The taxes imposed by this Section shall be  paid  by
17    the  licensed  owner  to the Board no later than 3:00 o'clock
18    p.m. of the day after the day when the wagers were made.  The
19    Board  shall pay all moneys received pursuant to this Section
20    into the Education Assistance Fund at least monthly.
21        (c)  To  the  extent   practicable,   the   Board   shall
22    administer  and  collect  the  wagering taxes imposed by this
23    Section  in  a  manner  consistent  with  the  provisions  of
24    Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
25    6c, 8, 9, and 10 of the Retailers'  Occupation  Tax  Act  and
26    Section 3-7 of the Uniform Penalty and Interest Act.
27        (d)  The  provisions of this Section shall be inoperative
28    and of no force and effect beginning on the first date  after
29    the  effective  date  of  this  amendatory Act that riverboat
30    gambling operations  are  conducted  pursuant  to  a  dormant
31    license.
32        (e)  For  the  purposes  of  this  Section 13.2, the term
33    "dormant license" means an owners license that is  authorized
34    by  this Act under which no riverboat gambling operations are
 
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 1    being conducted on the effective date of this amendatory  Act
 2    of the 92nd General Assembly.

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

 6        (P.A. 91-40, Sec. 30)
 7        Sec.  30.  Severability.   If  any  provision of this Act
 8    (Public Act 91-40) or the application thereof to  any  person
 9    or  circumstance  is  held  invalid, that invalidity does not
10    affect the other provisions or applications of the Act  which
11    can  be  given  effect  without  the  invalid  application or
12    provision, and to this end the provisions  of  this  Act  are
13    severable.   This  severability  applies  without  regard  to
14    whether  the  action  challenging  the  validity  was brought
15    before the effective date of this amendatory Act of the  92nd
16    General Assembly.
17        Inseverability.   The provisions of this Act are mutually
18    dependent and inseverable.  If any provision is held  invalid
19    other than as applied to a particular person or circumstance,
20    then this entire Act is invalid.
21    (Source:  P.A. 91-40, eff. 6-25-99.)

22        Section  99.  Effective date.  This Act takes effect upon
23    becoming law.".

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