Bill Amendment: IL HB3564 | 2019-2020 | 101st General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: IL GAMING BOARD-VARIOUS

Status: 2019-05-31 - House Committee Amendment No. 2 Rule 19(c) / Re-referred to Rules Committee [HB3564 Detail]

Download: Illinois-2019-HB3564-House_Amendment_002.html

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Rep. William Davis

Filed: 3/27/2019

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AMENDMENT TO HOUSE BILL 3564
AMENDMENT NO. ______. Amend House Bill 3564 by replacing
everything after the enacting clause with the following:
"Section 5. The Riverboat Gambling Act is amended by
changing Section 5 as follows:
(230 ILCS 10/5) (from Ch. 120, par. 2405)
Sec. 5. Gaming Board.
(a) (1) There is hereby established the Illinois Gaming
Board, which shall have the powers and duties specified in this
Act, and all other powers necessary and proper to fully and
effectively execute this Act for the purpose of administering,
regulating, and enforcing the system of riverboat gambling
established by this Act. Its jurisdiction shall extend under
this Act to every person, association, corporation,
partnership and trust involved in riverboat gambling
operations in the State of Illinois.

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(2) The Board shall consist of 5 members to be appointed by
the Governor with the advice and consent of the Senate, one of
whom shall be designated by the Governor to be chairman. Each
member shall have a reasonable knowledge of the practice,
procedure and principles of gambling operations. Each member
shall either be a resident of Illinois or shall certify that he
will become a resident of Illinois before taking office. At
least one member shall be experienced in law enforcement and
criminal investigation, at least one member shall be a
certified public accountant experienced in accounting and
auditing, and at least one member shall be a lawyer licensed to
practice law in Illinois.
(3) The terms of office of the Board members shall be 3
years, except that the terms of office of the initial Board
members appointed pursuant to this Act will commence from the
effective date of this Act and run as follows: one for a term
ending July 1, 1991, 2 for a term ending July 1, 1992, and 2 for
a term ending July 1, 1993. Upon the expiration of the
foregoing terms, the successors of such members shall serve a
term for 3 years and until their successors are appointed and
qualified for like terms. Vacancies in the Board shall be
filled for the unexpired term in like manner as original
appointments. Each member of the Board shall be eligible for
reappointment at the discretion of the Governor with the advice
and consent of the Senate.
(4) Each member of the Board shall receive $300 for each

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day the Board meets and for each day the member conducts any
hearing pursuant to this Act. Each member of the Board shall
also be reimbursed for all actual and necessary expenses and
disbursements incurred in the execution of official duties.
(5) No person shall be appointed a member of the Board or
continue to be a member of the Board who is, or whose spouse,
child or parent is, a member of the board of directors of, or a
person financially interested in, any gambling operation
subject to the jurisdiction of this Board, or any race track,
race meeting, racing association or the operations thereof
subject to the jurisdiction of the Illinois Racing Board. No
Board member shall hold any other public office. No person
shall be a member of the Board who is not of good moral
character or who has been convicted of, or is under indictment
for, a felony under the laws of Illinois or any other state, or
the United States.
(5.5) No member of the Board shall engage in any political
activity. For the purposes of this Section, "political" means
any activity in support of or in connection with any campaign
for federal, State, or local elective office or any political
organization, but does not include activities (i) relating to
the support or opposition of any executive, legislative, or
administrative action (as those terms are defined in Section 2
of the Lobbyist Registration Act), (ii) relating to collective
bargaining, or (iii) that are otherwise in furtherance of the
person's official State duties or governmental and public

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service functions.
(6) Any member of the Board may be removed by the Governor
for neglect of duty, misfeasance, malfeasance, or nonfeasance
in office or for engaging in any political activity.
(7) Before entering upon the discharge of the duties of his
office, each member of the Board shall take an oath that he
will faithfully execute the duties of his office according to
the laws of the State and the rules and regulations adopted
therewith and shall give bond to the State of Illinois,
approved by the Governor, in the sum of $25,000. Every such
bond, when duly executed and approved, shall be recorded in the
office of the Secretary of State. Whenever the Governor
determines that the bond of any member of the Board has become
or is likely to become invalid or insufficient, he shall
require such member forthwith to renew his bond, which is to be
approved by the Governor. Any member of the Board who fails to
take oath and give bond within 30 days from the date of his
appointment, or who fails to renew his bond within 30 days
after it is demanded by the Governor, shall be guilty of
neglect of duty and may be removed by the Governor. The cost of
any bond given by any member of the Board under this Section
shall be taken to be a part of the necessary expenses of the
Board.
(7.5) For the examination of all mechanical,
electromechanical, or electronic table games, slot machines,
slot accounting systems, sports betting systems, and other

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electronic gaming equipment, and the field inspection of such
systems, games, and machines, for compliance with this Act, the
Board shall may utilize the services of one or more independent
outside testing laboratories that have been accredited in
accordance with ISO/IEC 17025 by an accreditation body that is
a signatory to the International Laboratory Accreditation
Cooperation Mutual Recognition Agreement signifying they are
qualified to by a national accreditation body and that, in the
judgment of the Board, are qualified to perform such
examinations. Notwithstanding any law to the contrary, the
Board shall consider the licensing of independent outside
testing laboratory applicants in accordance with procedures
established by the Board by rule. The Board shall not withhold
its approval of an independent outside testing laboratory
license applicant that has been accredited as required under
this paragraph (7.5) and is licensed in gaming jurisdictions
comparable to Illinois. Upon the finalization of required
rules, the Board shall license independent testing
laboratories and accept the test reports of any licensed
testing laboratory of the system's, game's, or machine
manufacturer's choice, notwithstanding the existence of
contracts between the Board and any independent testing
laboratory.
(8) The Board shall employ such personnel as may be
necessary to carry out its functions and shall determine the
salaries of all personnel, except those personnel whose

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salaries are determined under the terms of a collective
bargaining agreement. No person shall be employed to serve the
Board who is, or whose spouse, parent or child is, an official
of, or has a financial interest in or financial relation with,
any operator engaged in gambling operations within this State
or any organization engaged in conducting horse racing within
this State. Any employee violating these prohibitions shall be
subject to termination of employment.
(9) An Administrator shall perform any and all duties that
the Board shall assign him. The salary of the Administrator
shall be determined by the Board and, in addition, he shall be
reimbursed for all actual and necessary expenses incurred by
him in discharge of his official duties. The Administrator
shall keep records of all proceedings of the Board and shall
preserve all records, books, documents and other papers
belonging to the Board or entrusted to its care. The
Administrator shall devote his full time to the duties of the
office and shall not hold any other office or employment.
(b) The Board shall have general responsibility for the
implementation of this Act. Its duties include, without
limitation, the following:
(1) To decide promptly and in reasonable order all
license applications. Any party aggrieved by an action of
the Board denying, suspending, revoking, restricting or
refusing to renew a license may request a hearing before
the Board. A request for a hearing must be made to the

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Board in writing within 5 days after service of notice of
the action of the Board. Notice of the action of the Board
shall be served either by personal delivery or by certified
mail, postage prepaid, to the aggrieved party. Notice
served by certified mail shall be deemed complete on the
business day following the date of such mailing. The Board
shall conduct all requested hearings promptly and in
reasonable order;
(2) To conduct all hearings pertaining to civil
violations of this Act or rules and regulations promulgated
hereunder;
(3) To promulgate such rules and regulations as in its
judgment may be necessary to protect or enhance the
credibility and integrity of gambling operations
authorized by this Act and the regulatory process
hereunder;
(4) To provide for the establishment and collection of
all license and registration fees and taxes imposed by this
Act and the rules and regulations issued pursuant hereto.
All such fees and taxes shall be deposited into the State
Gaming Fund;
(5) To provide for the levy and collection of penalties
and fines for the violation of provisions of this Act and
the rules and regulations promulgated hereunder. All such
fines and penalties shall be deposited into the Education
Assistance Fund, created by Public Act 86-0018, of the

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State of Illinois;
(6) To be present through its inspectors and agents any
time gambling operations are conducted on any riverboat for
the purpose of certifying the revenue thereof, receiving
complaints from the public, and conducting such other
investigations into the conduct of the gambling games and
the maintenance of the equipment as from time to time the
Board may deem necessary and proper;
(7) To review and rule upon any complaint by a licensee
regarding any investigative procedures of the State which
are unnecessarily disruptive of gambling operations. The
need to inspect and investigate shall be presumed at all
times. The disruption of a licensee's operations shall be
proved by clear and convincing evidence, and establish
that: (A) the procedures had no reasonable law enforcement
purposes, and (B) the procedures were so disruptive as to
unreasonably inhibit gambling operations;
(8) To hold at least one meeting each quarter of the
fiscal year. In addition, special meetings may be called by
the Chairman or any 2 Board members upon 72 hours written
notice to each member. All Board meetings shall be subject
to the Open Meetings Act. Three members of the Board shall
constitute a quorum, and 3 votes shall be required for any
final determination by the Board. The Board shall keep a
complete and accurate record of all its meetings. A
majority of the members of the Board shall constitute a

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quorum for the transaction of any business, for the
performance of any duty, or for the exercise of any power
which this Act requires the Board members to transact,
perform or exercise en banc, except that, upon order of the
Board, one of the Board members or an administrative law
judge designated by the Board may conduct any hearing
provided for under this Act or by Board rule and may
recommend findings and decisions to the Board. The Board
member or administrative law judge conducting such hearing
shall have all powers and rights granted to the Board in
this Act. The record made at the time of the hearing shall
be reviewed by the Board, or a majority thereof, and the
findings and decision of the majority of the Board shall
constitute the order of the Board in such case;
(9) To maintain records which are separate and distinct
from the records of any other State board or commission.
Such records shall be available for public inspection and
shall accurately reflect all Board proceedings;
(10) To file a written annual report with the Governor
on or before July 1 each year and such additional reports
as the Governor may request. The annual report shall
include a statement of receipts and disbursements by the
Board, actions taken by the Board, and any additional
information and recommendations which the Board may deem
valuable or which the Governor may request;
(11) (Blank);

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(12) (Blank);
(13) To assume responsibility for administration and
enforcement of the Video Gaming Act; and
(14) To adopt, by rule, a code of conduct governing
Board members and employees that ensure, to the maximum
extent possible, that persons subject to this Code avoid
situations, relationships, or associations that may
represent or lead to a conflict of interest.
(c) The Board shall have jurisdiction over and shall
supervise all gambling operations governed by this Act. The
Board shall have all powers necessary and proper to fully and
effectively execute the provisions of this Act, including, but
not limited to, the following:
(1) To investigate applicants and determine the
eligibility of applicants for licenses and to select among
competing applicants the applicants which best serve the
interests of the citizens of Illinois.
(2) To have jurisdiction and supervision over all
riverboat gambling operations in this State and all persons
on riverboats where gambling operations are conducted.
(3) To promulgate rules and regulations for the purpose
of administering the provisions of this Act and to
prescribe rules, regulations and conditions under which
all riverboat gambling in the State shall be conducted.
Such rules and regulations are to provide for the
prevention of practices detrimental to the public interest

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and for the best interests of riverboat gambling, including
rules and regulations regarding the inspection of such
riverboats and the review of any permits or licenses
necessary to operate a riverboat under any laws or
regulations applicable to riverboats, and to impose
penalties for violations thereof.
(4) To enter the office, riverboats, facilities, or
other places of business of a licensee, where evidence of
the compliance or noncompliance with the provisions of this
Act is likely to be found.
(5) To investigate alleged violations of this Act or
the rules of the Board and to take appropriate disciplinary
action against a licensee or a holder of an occupational
license for a violation, or institute appropriate legal
action for enforcement, or both.
(6) To adopt standards for the licensing of all persons
under this Act, as well as for electronic or mechanical
gambling games, and to establish fees for such licenses.
(7) To adopt appropriate standards for all riverboats
and facilities.
(8) To require that the records, including financial or
other statements of any licensee under this Act, shall be
kept in such manner as prescribed by the Board and that any
such licensee involved in the ownership or management of
gambling operations submit to the Board an annual balance
sheet and profit and loss statement, list of the

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stockholders or other persons having a 1% or greater
beneficial interest in the gambling activities of each
licensee, and any other information the Board deems
necessary in order to effectively administer this Act and
all rules, regulations, orders and final decisions
promulgated under this Act.
(9) To conduct hearings, issue subpoenas for the
attendance of witnesses and subpoenas duces tecum for the
production of books, records and other pertinent documents
in accordance with the Illinois Administrative Procedure
Act, and to administer oaths and affirmations to the
witnesses, when, in the judgment of the Board, it is
necessary to administer or enforce this Act or the Board
rules.
(10) To prescribe a form to be used by any licensee
involved in the ownership or management of gambling
operations as an application for employment for their
employees.
(11) To revoke or suspend licenses, as the Board may
see fit and in compliance with applicable laws of the State
regarding administrative procedures, and to review
applications for the renewal of licenses. The Board may
suspend an owners license, without notice or hearing upon a
determination that the safety or health of patrons or
employees is jeopardized by continuing a riverboat's
operation. The suspension may remain in effect until the

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Board determines that the cause for suspension has been
abated. The Board may revoke the owners license upon a
determination that the owner has not made satisfactory
progress toward abating the hazard.
(12) To eject or exclude or authorize the ejection or
exclusion of, any person from riverboat gambling
facilities where such person is in violation of this Act,
rules and regulations thereunder, or final orders of the
Board, or where such person's conduct or reputation is such
that his presence within the riverboat gambling facilities
may, in the opinion of the Board, call into question the
honesty and integrity of the gambling operations or
interfere with orderly conduct thereof; provided that the
propriety of such ejection or exclusion is subject to
subsequent hearing by the Board.
(13) To require all licensees of gambling operations to
utilize a cashless wagering system whereby all players'
money is converted to tokens, electronic cards, or chips
which shall be used only for wagering in the gambling
establishment.
(14) (Blank).
(15) To suspend, revoke or restrict licenses, to
require the removal of a licensee or an employee of a
licensee for a violation of this Act or a Board rule or for
engaging in a fraudulent practice, and to impose civil
penalties of up to $5,000 against individuals and up to

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$10,000 or an amount equal to the daily gross receipts,
whichever is larger, against licensees for each violation
of any provision of the Act, any rules adopted by the
Board, any order of the Board or any other action which, in
the Board's discretion, is a detriment or impediment to
riverboat gambling operations.
(16) To hire employees to gather information, conduct
investigations and carry out any other tasks contemplated
under this Act.
(17) To establish minimum levels of insurance to be
maintained by licensees.
(18) To authorize a licensee to sell or serve alcoholic
liquors, wine or beer as defined in the Liquor Control Act
of 1934 on board a riverboat and to have exclusive
authority to establish the hours for sale and consumption
of alcoholic liquor on board a riverboat, notwithstanding
any provision of the Liquor Control Act of 1934 or any
local ordinance, and regardless of whether the riverboat
makes excursions. The establishment of the hours for sale
and consumption of alcoholic liquor on board a riverboat is
an exclusive power and function of the State. A home rule
unit may not establish the hours for sale and consumption
of alcoholic liquor on board a riverboat. This amendatory
Act of 1991 is a denial and limitation of home rule powers
and functions under subsection (h) of Section 6 of Article
VII of the Illinois Constitution.

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(19) After consultation with the U.S. Army Corps of
Engineers, to establish binding emergency orders upon the
concurrence of a majority of the members of the Board
regarding the navigability of water, relative to
excursions, in the event of extreme weather conditions,
acts of God or other extreme circumstances.
(20) To delegate the execution of any of its powers
under this Act for the purpose of administering and
enforcing this Act and its rules and regulations hereunder.
(20.5) To approve any contract entered into on its
behalf.
(20.6) To appoint investigators to conduct
investigations, searches, seizures, arrests, and other
duties imposed under this Act, as deemed necessary by the
Board. These investigators have and may exercise all of the
rights and powers of peace officers, provided that these
powers shall be limited to offenses or violations occurring
or committed on a riverboat or dock, as defined in
subsections (d) and (f) of Section 4, or as otherwise
provided by this Act or any other law.
(20.7) To contract with the Department of State Police
for the use of trained and qualified State police officers
and with the Department of Revenue for the use of trained
and qualified Department of Revenue investigators to
conduct investigations, searches, seizures, arrests, and
other duties imposed under this Act and to exercise all of

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the rights and powers of peace officers, provided that the
powers of Department of Revenue investigators under this
subdivision (20.7) shall be limited to offenses or
violations occurring or committed on a riverboat or dock,
as defined in subsections (d) and (f) of Section 4, or as
otherwise provided by this Act or any other law. In the
event the Department of State Police or the Department of
Revenue is unable to fill contracted police or
investigative positions, the Board may appoint
investigators to fill those positions pursuant to
subdivision (20.6).
(21) To take any other action as may be reasonable or
appropriate to enforce this Act and rules and regulations
hereunder.
(d) The Board may seek and shall receive the cooperation of
the Department of State Police in conducting background
investigations of applicants and in fulfilling its
responsibilities under this Section. Costs incurred by the
Department of State Police as a result of such cooperation
shall be paid by the Board in conformance with the requirements
of Section 2605-400 of the Department of State Police Law (20
ILCS 2605/2605-400).
(e) The Board must authorize to each investigator and to
any other employee of the Board exercising the powers of a
peace officer a distinct badge that, on its face, (i) clearly
states that the badge is authorized by the Board and (ii)

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contains a unique identifying number. No other badge shall be
authorized by the Board.
(Source: P.A. 100-1152, eff. 12-14-18.)
Section 10. The Video Gaming Act is amended by changing
Section 15 as follows:
(230 ILCS 40/15)
Sec. 15. Minimum requirements for licensing and
registration. Every video gaming terminal offered for play
shall first be tested and approved pursuant to the rules of the
Board, and each video gaming terminal offered in this State for
play shall conform to an approved model. For the examination of
video gaming machines and associated equipment as required by
this Section, the Board shall may utilize the services of one
or more independent outside testing laboratories that have been
accredited in accordance with ISO/IEC 17025 by an accreditation
body that is a signatory to the International Laboratory
Accreditation Cooperation Mutual Recognition Agreement
signifying they are qualified to by a national accreditation
body and that, in the judgment of the Board, are qualified to
perform such examinations. Notwithstanding any law to the
contrary, the Board shall consider the licensing of independent
outside testing laboratory applicants in accordance with
procedures established by the Board by rule. The Board shall
not withhold its approval of an independent outside testing

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laboratory license applicant that has been accredited as
required by this Section and is licensed in gaming
jurisdictions comparable to Illinois. Upon the finalization of
required rules, the Board shall license independent testing
laboratories and accept the test reports of any licensed
testing laboratory of the video gaming machine's or associated
equipment manufacturer's choice, notwithstanding the existence
of contracts between the Board and any independent testing
laboratory. Every video gaming terminal offered in this State
for play must meet minimum standards set by an independent
outside testing laboratory approved by the Board. Each approved
model shall, at a minimum, meet the following criteria:
(1) It must conform to all requirements of federal law
and regulations, including FCC Class A Emissions
Standards.
(2) It must theoretically pay out a mathematically
demonstrable percentage during the expected lifetime of
the machine of all amounts played, which must not be less
than 80%. The Board shall establish a maximum payout
percentage for approved models by rule. Video gaming
terminals that may be affected by skill must meet this
standard when using a method of play that will provide the
greatest return to the player over a period of continuous
play.
(3) It must use a random selection process to determine
the outcome of each play of a game. The random selection

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process must meet 99% confidence limits using a standard
chi-squared test for (randomness) goodness of fit.
(4) It must display an accurate representation of the
game outcome.
(5) It must not automatically alter pay tables or any
function of the video gaming terminal based on internal
computation of hold percentage or have any means of
manipulation that affects the random selection process or
probabilities of winning a game.
(6) It must not be adversely affected by static
discharge or other electromagnetic interference.
(7) It must be capable of detecting and displaying the
following conditions during idle states or on demand: power
reset; door open; and door just closed.
(8) It must have the capacity to display complete play
history (outcome, intermediate play steps, credits
available, bets placed, credits paid, and credits cashed
out) for the most recent game played and 10 games prior
thereto.
(9) The theoretical payback percentage of a video
gaming terminal must not be capable of being changed
without making a hardware or software change in the video
gaming terminal, either on site or via the central
communications system.
(10) Video gaming terminals must be designed so that
replacement of parts or modules required for normal

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maintenance does not necessitate replacement of the
electromechanical meters.
(11) It must have nonresettable meters housed in a
locked area of the terminal that keep a permanent record of
all cash inserted into the machine, all winnings made by
the terminal printer, credits played in for video gaming
terminals, and credits won by video gaming players. The
video gaming terminal must provide the means for on-demand
display of stored information as determined by the Board.
(12) Electronically stored meter information required
by this Section must be preserved for a minimum of 180 days
after a power loss to the service.
(13) It must have one or more mechanisms that accept
cash in the form of bills. The mechanisms shall be designed
to prevent obtaining credits without paying by stringing,
slamming, drilling, or other means. If such attempts at
physical tampering are made, the video gaming terminal
shall suspend itself from operating until reset.
(14) It shall have accounting software that keeps an
electronic record which includes, but is not limited to,
the following: total cash inserted into the video gaming
terminal; the value of winning tickets claimed by players;
the total credits played; the total credits awarded by a
video gaming terminal; and pay back percentage credited to
players of each video game.
(15) It shall be linked by a central communications

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system to provide auditing program information as approved
by the Board. The central communications system shall use a
standard industry protocol, as defined by the Gaming
Standards Association, and shall have the functionality to
enable the Board or its designee to activate or deactivate
individual gaming devices from the central communications
system. In no event may the communications system approved
by the Board limit participation to only one manufacturer
of video gaming terminals by either the cost in
implementing the necessary program modifications to
communicate or the inability to communicate with the
central communications system.
(16) The Board, in its discretion, may require video
gaming terminals to display Amber Alert messages if the
Board makes a finding that it would be economically and
technically feasible and pose no risk to the integrity and
security of the central communications system and video
gaming terminals.
The Board may adopt rules to establish additional criteria
to preserve the integrity and security of video gaming in this
State. The central communications system vendor may be licensed
as a video gaming terminal manufacturer or a video gaming
terminal distributor, or both, but in no event shall the
central communications system vendor be licensed as a video
gaming terminal operator.
The Board shall not permit the development of information

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or the use by any licensee of gaming device or individual game
performance data. Nothing in this Act shall inhibit or prohibit
the Board from the use of gaming device or individual game
performance data in its regulatory duties. The Board shall
adopt rules to ensure that all licensees are treated and all
licensees act in a non-discriminatory manner and develop
processes and penalties to enforce those rules.
(Source: P.A. 98-31, eff. 6-24-13; 98-377, eff. 1-1-14; 98-582,
eff. 8-27-13; 98-756, eff. 7-16-14.)".