99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4374
 
Introduced , by Rep. Rita Mayfield
 
SYNOPSIS AS INTRODUCED:



  
20 ILCS 605/605-530 new
30 ILCS 105/5.875 new
230 ILCS 10/13 from Ch. 120, par. 2413

 Creates the Commission on the Future of Economic Development of the African American Community within the Department of Commerce and Economic Opportunity. Provides that the Commission's purpose is to maintain and develop the economy within the African American community and to provide opportunities for this community that will enhance and expand the quality of their lives. Requires that the Commission consult with appropriate legislative committees about the State's economic development needs and opportunities in the African American community. Requires that the Commission submit to the Governor and General Assembly a comprehensive statewide economic development strategy for the African American community with a report on progress from the previous comprehensive strategy by October 1 of each even-numbered year. Provides that the Commission shall consist of 12 voting members appointed by the Governor, with representatives from production agriculture; transportation, construction, and logistics; travel and tourism; financial services and insurance; information technology and communications; and biotechnology, as well as manufacturing and small business. Provides that the Commission meet at least 4 times a year. Provides that the Commission make recommendations to the Department of Commerce and Economic Opportunity concerning the award of grants from amounts appropriated to the Department from the African American Community Economic Development Fund. Creates the African American Community Economic Development Fund. Amends the Riverboat Gambling Act. Provides that $20,000,000 be transferred annually from the State Gaming Fund into the African American Community Economic Development Fund.



LRB099 15586 MLM 39877 b


FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


HB4374LRB099 15586 MLM 39877 b



1 AN ACT concerning State government.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Department of Commerce and Economic 
5Opportunity Law of the
Civil Administrative Code of Illinois is 
6amended by adding Section 605-530 as follows:

7 (20 ILCS 605/605-530 new)
8 Sec. 605-530. The Commission on the Future of Economic 
9Development of the African American
Community.
10 (a) There is hereby created the Commission on the Future of 
11Economic Development of the
African American Community within 
12the Department. The purpose of the Commission shall be to 
13maintain and
develop the economy within the African American 
14community and to provide opportunities for this community that 
15will enhance
and expand the quality of their lives.
16 The Commission must concentrate its major efforts on 
17strategic planning, policy research and analysis, advocacy, 
18evaluation, and promoting coordination and collaboration.
19 During each regular legislative session, the Commission 
20must consult with appropriate legislative committees about the 
21State's economic development needs and opportunities in the 
22African American community.
23 By October 1st of each even-numbered year, the Commission 
 
 
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1must submit to the Governor and General Assembly a biennial 
2comprehensive statewide economic development strategy for the 
3African American community with a report on progress from the 
4previous comprehensive strategy.
5 The comprehensive statewide economic development strategy 
6may include:
7  (1) an assessment of the community's economic 
8 vitality;
9  (2) recommended goals, objectives, and priorities for 
10 the next biennium and the future;
11  (3) a common set of outcomes and benchmarks for the 
12 economic development system as a whole for the African 
13 American community;
14  (4) recommendations for removing barriers for African 
15 Americans in employment;
16  (5) an inventory of existing relevant programs 
17 compiled by the Commission from materials submitted by 
18 agencies;
19  (6) recommendations for expanding, discontinuing, or 
20 redirecting existing programs or adding new programs to 
21 better serve the African American community; and
22  (7) recommendations of best practices and public and 
23 private sector roles in implementing the comprehensive 
24 statewide economic development strategy.
25 In developing the biennial statewide economic development 
26strategy, plans, inventories, assessments, and policy 
 
 
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1research, the Commission must consult, collaborate, and 
2coordinate with relevant State agencies, private sector 
3businesses, nonprofit organizations involved in economic 
4development, trade associations, associate development 
5organizations, and relevant local organizations in order to 
6avoid duplication of effort.
7 State agencies must cooperate with the Commission and 
8provide information as the Commission may reasonably request.
9 The Commission shall review and make budget 
10recommendations to the Governor's Office of Management and 
11Budget and the General Assembly in areas relating to the 
12economic development in the State's African American 
13community.
14 The Commission must evaluate its own performance on a 
15regular basis.
16 The Commission may accept gifts, grants, donations, 
17sponsorships, or contributions from any federal, State, or 
18local governmental agency or program or any private source and 
19expend the same for any purpose consistent with this Act.
20 (b) The Commission shall consist of 12 voting members 
21appointed by the Governor. The
chairperson of the Commission 
22shall be one of the appointed members and shall be chosen by 
23the
Commission. The members of the Commission shall be 
24representative, to the extent possible, of the
various 
25geographic areas of the State. The Director shall serve as an 
26ad hoc nonvoting member of the
Commission. In appointing the 
 
 
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1members, the Governor shall appoint individuals representing 
2the following
private industry sectors:
3  (1) production agriculture;
4  (2) transportation, construction and logistics;
5  (3) travel and tourism;
6  (4) financial services and insurance;
7  (5) information technology and communications; and
8  (6) biotechnology.
9In addition, the Governor shall appoint at least 2 individuals 
10representing manufacturing, one such individual shall 
11represent a
company with no more than 75 employees. 
12 Members appointed by the Governor serve for not more than 2 
13consecutive 3-year terms, except that, as determined by the 
14Governor, of the initial appointees of the Commission, the 
15terms of 4 members shall expire on October 1, 2017, the terms 
16of 4 shall expire on October 1, 2018, and the terms of 4 
17members shall expire on October 1, 2019. Thereafter, all terms 
18are for 3 years. Vacancies must be filled in the same manner as 
19the original appointments. The members of the Commission shall 
20serve without compensation.
21 (c) The Commission shall meet at least 4 times a year, with 
22at least one meeting each calendar
quarter, at the call of the 
23Director or 4 voting members of the Commission. The staff and 
24support for the
Commission shall be provided by the Department.
25 (d) The Commission and Department are encouraged to involve 
26other essential groups in the
work of the Commission, 
 
 
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1including, but not limited to, (1) public universities, (2) 
2community
colleges, (3) other educational institutions, and 
3(4) the Illinois Department of Labor.
4 (e) The Commission shall make recommendations, which must 
5be approved by a majority of the
Commission, to the Department 
6concerning the award of grants from amounts appropriated to the

7Department from the African American Community Economic 
8Development Fund, a special fund created in the State
treasury. 
9The Department must make grants to public or private entities 
10submitting proposals to
the Commission to assist in the 
11economic development of the African American community. Grants

12may be used by these entities only for those purposes specified 
13in the grant. The Commission shall
coordinate with the 
14Department to develop grant criteria.
15 (f) For purposes of this Section, "educational 
16institutions" means nonprofit public and private colleges,

17community colleges, State colleges, and universities in the 
18State.


19 Section 10. The State Finance Act is amended by adding 
20Section 5.875 as follows:

21 (30 ILCS 105/5.875 new)
22 Sec. 5.875. The African American Community Economic 
23Development Fund.

 
 
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1 Section 15. The Riverboat Gambling Act is amended by 
2changing Section 13 as follows:




3 (230 ILCS 10/13) (from Ch. 120, par. 2413)


4 Sec. 13. Wagering tax; rate; distribution. 

5 (a) Until January 1, 1998, a tax is imposed on the adjusted 
6gross
receipts received from gambling games authorized under 
7this Act at the rate of
20%.

8 (a-1) From January 1, 1998 until July 1, 2002, a privilege 
9tax is
imposed on persons engaged in the business of conducting 
10riverboat gambling
operations, based on the adjusted gross 
11receipts received by a licensed owner
from gambling games 
12authorized under this Act at the following rates:


13  15% of annual adjusted gross receipts up to and 
14 including $25,000,000;


15  20% of annual adjusted gross receipts in excess of 
16 $25,000,000 but not
exceeding $50,000,000;


17  25% of annual adjusted gross receipts in excess of 
18 $50,000,000 but not
exceeding $75,000,000;


19  30% of annual adjusted gross receipts in excess of 
20 $75,000,000 but not
exceeding $100,000,000;


21  35% of annual adjusted gross receipts in excess of 
22 $100,000,000.

23 (a-2) From July 1, 2002 until July 1, 2003, a privilege tax 
24is imposed on
persons engaged in the business of conducting 
25riverboat gambling operations,
other than licensed managers 
 
 
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1conducting riverboat gambling operations on behalf
of the 
2State, based on the adjusted gross receipts received by a 
3licensed
owner from gambling games authorized under this Act at 
4the following rates:


5  15% of annual adjusted gross receipts up to and 
6 including $25,000,000;


7  22.5% of annual adjusted gross receipts in excess of 
8 $25,000,000 but not
exceeding $50,000,000;


9  27.5% of annual adjusted gross receipts in excess of 
10 $50,000,000 but not
exceeding $75,000,000;


11  32.5% of annual adjusted gross receipts in excess of 
12 $75,000,000 but not
exceeding $100,000,000;


13  37.5% of annual adjusted gross receipts in excess of 
14 $100,000,000 but not
exceeding $150,000,000;


15  45% of annual adjusted gross receipts in excess of 
16 $150,000,000 but not
exceeding $200,000,000;


17  50% of annual adjusted gross receipts in excess of 
18 $200,000,000.

19 (a-3) Beginning July 1, 2003, a privilege tax is imposed on 
20persons engaged
in the business of conducting riverboat 
21gambling operations, other than
licensed managers conducting 
22riverboat gambling operations on behalf of the
State, based on 
23the adjusted gross receipts received by a licensed owner from

24gambling games authorized under this Act at the following 
25rates:


26  15% of annual adjusted gross receipts up to and 
 
 
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1 including $25,000,000;


2  27.5% of annual adjusted gross receipts in excess of 
3 $25,000,000 but not
exceeding $37,500,000;


4  32.5% of annual adjusted gross receipts in excess of 
5 $37,500,000 but not
exceeding $50,000,000;


6  37.5% of annual adjusted gross receipts in excess of 
7 $50,000,000 but not
exceeding $75,000,000;


8  45% of annual adjusted gross receipts in excess of 
9 $75,000,000 but not
exceeding $100,000,000;


10  50% of annual adjusted gross receipts in excess of 
11 $100,000,000 but not
exceeding $250,000,000;


12  70% of annual adjusted gross receipts in excess of 
13 $250,000,000.

14 An amount equal to the amount of wagering taxes collected 
15under this
subsection (a-3) that are in addition to the amount 
16of wagering taxes that
would have been collected if the 
17wagering tax rates under subsection (a-2)
were in effect shall 
18be paid into the Common School Fund.

19 The privilege tax imposed under this subsection (a-3) shall 
20no longer be
imposed beginning on the earlier of (i) July 1, 
212005; (ii) the first date
after June 20, 2003 that riverboat 
22gambling operations are conducted
pursuant to a dormant 
23license; or (iii) the first day that riverboat gambling

24operations are conducted under the authority of an owners 
25license that is in
addition to the 10 owners licenses initially 
26authorized under this Act.
For the purposes of this subsection 
 
 
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1(a-3), the term "dormant license"
means an owners license that 
2is authorized by this Act under which no
riverboat gambling 
3operations are being conducted on June 20, 2003.

4 (a-4) Beginning on the first day on which the tax imposed 
5under
subsection (a-3) is no longer imposed, a privilege tax is 
6imposed on persons
engaged in the business of conducting 
7riverboat gambling operations, other
than licensed managers 
8conducting riverboat gambling operations on behalf of
the 
9State, based on the adjusted gross receipts received by a 
10licensed owner
from gambling games authorized under this Act at 
11the following rates:


12  15% of annual adjusted gross receipts up to and 
13 including $25,000,000;


14  22.5% of annual adjusted gross receipts in excess of 
15 $25,000,000 but not
exceeding $50,000,000;


16  27.5% of annual adjusted gross receipts in excess of 
17 $50,000,000 but not
exceeding $75,000,000;


18  32.5% of annual adjusted gross receipts in excess of 
19 $75,000,000 but not
exceeding $100,000,000;


20  37.5% of annual adjusted gross receipts in excess of 
21 $100,000,000 but not
exceeding $150,000,000;


22  45% of annual adjusted gross receipts in excess of 
23 $150,000,000 but not
exceeding $200,000,000;


24  50% of annual adjusted gross receipts in excess of 
25 $200,000,000.

26 (a-8) Riverboat gambling operations conducted by a 
 
 
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1licensed manager on
behalf of the State are not subject to the 
2tax imposed under this Section.

3 (a-10) The taxes imposed by this Section shall be paid by 
4the licensed
owner to the Board not later than 5:00 o'clock 
5p.m. of the day after the day
when the wagers were made.

6 (a-15) If the privilege tax imposed under subsection (a-3) 
7is no longer imposed pursuant to item (i) of the last paragraph 
8of subsection (a-3), then by June 15 of each year, each owners 
9licensee, other than an owners licensee that admitted 1,000,000 
10persons or
fewer in calendar year 2004, must, in addition to 
11the payment of all amounts otherwise due under this Section, 
12pay to the Board a reconciliation payment in the amount, if 
13any, by which the licensed owner's base amount exceeds the 
14amount of net privilege tax paid by the licensed owner to the 
15Board in the then current State fiscal year. A licensed owner's 
16net privilege tax obligation due for the balance of the State 
17fiscal year shall be reduced up to the total of the amount paid 
18by the licensed owner in its June 15 reconciliation payment. 
19The obligation imposed by this subsection (a-15) is binding on 
20any person, firm, corporation, or other entity that acquires an 
21ownership interest in any such owners license. The obligation 
22imposed under this subsection (a-15) terminates on the earliest 
23of: (i) July 1, 2007, (ii) the first day after the effective 
24date of this amendatory Act of the 94th General Assembly that 
25riverboat gambling operations are conducted pursuant to a 
26dormant license, (iii) the first day that riverboat gambling 
 
 
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1operations are conducted under the authority of an owners 
2license that is in addition to the 10 owners licenses initially 
3authorized under this Act, or (iv) the first day that a 
4licensee under the Illinois Horse Racing Act of 1975 conducts 
5gaming operations with slot machines or other electronic gaming 
6devices. The Board must reduce the obligation imposed under 
7this subsection (a-15) by an amount the Board deems reasonable 
8for any of the following reasons: (A) an act or acts of God, 
9(B) an act of bioterrorism or terrorism or a bioterrorism or 
10terrorism threat that was investigated by a law enforcement 
11agency, or (C) a condition beyond the control of the owners 
12licensee that does not result from any act or omission by the 
13owners licensee or any of its agents and that poses a hazardous 
14threat to the health and safety of patrons. If an owners 
15licensee pays an amount in excess of its liability under this 
16Section, the Board shall apply the overpayment to future 
17payments required under this Section.
18 For purposes of this subsection (a-15):
19 "Act of God" means an incident caused by the operation of 
20an extraordinary force that cannot be foreseen, that cannot be 
21avoided by the exercise of due care, and for which no person 
22can be held liable.

23 "Base amount" means the following:
24  For a riverboat in Alton, $31,000,000.

25  For a riverboat in East Peoria, $43,000,000.

26  For the Empress riverboat in Joliet, $86,000,000.

 
 
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1  For a riverboat in Metropolis, $45,000,000.

2  For the Harrah's riverboat in Joliet, $114,000,000.

3  For a riverboat in Aurora, $86,000,000.

4  For a riverboat in East St. Louis, $48,500,000.

5  For a riverboat in Elgin, $198,000,000.

6 "Dormant license" has the meaning ascribed to it in 
7subsection (a-3).

8 "Net privilege tax" means all privilege taxes paid by a 
9licensed owner to the Board under this Section, less all 
10payments made from the State Gaming Fund pursuant to subsection 
11(b) of this Section.
12 The changes made to this subsection (a-15) by Public Act 
1394-839 are intended to restate and clarify the intent of Public 
14Act 94-673 with respect to the amount of the payments required 
15to be made under this subsection by an owners licensee to the 
16Board.

17 (b) Until January 1, 1998, 25% of the tax revenue deposited 
18in the State
Gaming Fund under this Section shall be paid, 
19subject to appropriation by the
General Assembly, to the unit 
20of local government which is designated as the
home dock of the 
21riverboat. Beginning January 1, 1998, from the tax revenue

22deposited in the State Gaming Fund under this Section, an 
23amount equal to 5% of
adjusted gross receipts generated by a 
24riverboat shall be paid monthly, subject
to appropriation by 
25the General Assembly, to the unit of local government that
is 
26designated as the home dock of the riverboat. From the tax 
 
 
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1revenue
deposited in the State Gaming Fund pursuant to 
2riverboat gambling operations
conducted by a licensed manager 
3on behalf of the State, an amount equal to 5%
of adjusted gross 
4receipts generated pursuant to those riverboat gambling

5operations shall be paid monthly,
subject to appropriation by 
6the General Assembly, to the unit of local
government that is 
7designated as the home dock of the riverboat upon which
those 
8riverboat gambling operations are conducted.

9 (c) Appropriations, as approved by the General Assembly, 
10may be made
from the State Gaming Fund to the Board (i) for the 
11administration and enforcement of this Act and the Video Gaming 
12Act, (ii) for distribution to the Department of State Police 
13and to the Department of Revenue for the enforcement of this 
14Act, and (iii) to the
Department of Human Services for the 
15administration of programs to treat
problem gambling.

16 (c-5) Before May 26, 2006 (the effective date of Public Act 
1794-804) and beginning on the effective date of this amendatory 
18Act of the 95th General Assembly, unless any organization 
19licensee under the Illinois Horse Racing Act of 1975 begins to 
20operate a slot machine or video game of chance under the 
21Illinois Horse Racing Act of 1975 or this Act, after the 
22payments required under subsections (b) and (c) have been
made, 
23an amount equal to 15% of the adjusted gross receipts of (1) an 
24owners
licensee that relocates pursuant to Section 11.2,
(2) an 
25owners licensee
conducting riverboat gambling operations

26pursuant to an
owners license that is initially issued after 
 
 
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1June
25, 1999,
or (3) the first
riverboat gambling operations 
2conducted by a licensed manager on behalf of the
State under 
3Section 7.3,
whichever comes first, shall be paid from the 
4State
Gaming Fund into the Horse Racing Equity Fund.

5 (c-10) Each year the General Assembly shall appropriate 
6from the General
Revenue Fund to the Education Assistance Fund 
7an amount equal to the amount
paid into the Horse Racing Equity 
8Fund pursuant to subsection (c-5) in the
prior calendar year.

9 (c-15) After the payments required under subsections (b), 
10(c), and (c-5)
have been made, an amount equal to 2% of the 
11adjusted gross receipts of (1)
an owners licensee that 
12relocates pursuant to Section 11.2, (2) an owners
licensee 
13conducting riverboat gambling operations pursuant to
an
owners 
14license that is initially issued after June 25, 1999,
or (3) 
15the first
riverboat gambling operations conducted by a licensed 
16manager on behalf of the
State under Section 7.3,
whichever 
17comes first, shall be paid, subject to appropriation
from the 
18General Assembly, from the State Gaming Fund to each home rule

19county with a population of over 3,000,000 inhabitants for the 
20purpose of
enhancing the county's criminal justice system.

21 (c-20) Each year the General Assembly shall appropriate 
22from the General
Revenue Fund to the Education Assistance Fund 
23an amount equal to the amount
paid to each home rule county 
24with a population of over 3,000,000 inhabitants
pursuant to 
25subsection (c-15) in the prior calendar year.

26 (c-25) On July 1, 2013 and each July 1 thereafter, 
 
 
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1$1,600,000 shall be transferred from the State Gaming Fund to 
2the Chicago State University Education Improvement Fund.

3 (c-30) On July 1, 2013 or as soon as possible thereafter, 
4$92,000,000 shall be transferred from the State Gaming Fund to 
5the School Infrastructure Fund and $23,000,000 shall be 
6transferred from the State Gaming Fund to the Horse Racing 
7Equity Fund. 
8 (c-35) Beginning on July 1, 2013, in addition to any amount 
9transferred under subsection (c-30) of this Section, 
10$5,530,000 shall be transferred monthly from the State Gaming 
11Fund to the School Infrastructure Fund. 
12 (c-40) After the payments required under subsections (b), 
13(c), (c-5),
(c-15), and (c-25) have been made, $20,000,000 
14shall be transferred annually from the State
Gaming Fund into 
15the African American Community Economic Development Fund. 
16 (d) From time to time, the
Board shall transfer the 
17remainder of the funds
generated by this Act into the Education

18Assistance Fund, created by Public Act 86-0018, of the State of 
19Illinois.

20 (e) Nothing in this Act shall prohibit the unit of local 
21government
designated as the home dock of the riverboat from 
22entering into agreements
with other units of local government 
23in this State or in other states to
share its portion of the 
24tax revenue.

25 (f) To the extent practicable, the Board shall administer 
26and collect the
wagering taxes imposed by this Section in a 
 
 
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1manner consistent with the
provisions of Sections 4, 5, 5a, 5b, 
25c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c, 8, 9, and 10 of the 
3Retailers' Occupation Tax Act and Section 3-7 of the
Uniform 
4Penalty and Interest Act.

5(Source: P.A. 98-18, eff. 6-7-13.)