Bill Text: IL SB1805 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Riverboat Gambling Act. Provides that, in determining whether to grant an owners license to an applicant, the Illinois Gaming Board shall consider the extent to which the ownership of the applicant includes veterans of service in the armed forces of the United States, and the good faith affirmative action plan of each applicant to recruit, train, and upgrade veterans of service in the armed forces of the United States in all employment classifications. Requires the Board, by rule, to establish goals for the award of contracts by each owners licensee to businesses owned by veterans of service in the armed forces of the United States, expressed as percentages of an owners licensee's total dollar amount of contracts awarded during each calendar year. Provides criteria for the Board to consider when setting the goals. Requires each owners licensee to file with the Board an annual report of its utilization of veteran-owned businesses during the preceding calendar year, which shall include a self-evaluation of the efforts of the owners licensee to meet the goals.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed) 2017-05-19 - Committee Deadline Extended-Rule 9(b) May 26, 2017 [SB1805 Detail]

Download: Illinois-2017-SB1805-Engrossed.html



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1 AN ACT concerning gaming.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Riverboat Gambling Act is amended by
5changing Sections 7 and 7.6 as follows:
6 (230 ILCS 10/7) (from Ch. 120, par. 2407)
7 Sec. 7. Owners Licenses.
8 (a) The Board shall issue owners licenses to persons, firms
9or corporations which apply for such licenses upon payment to
10the Board of the non-refundable license fee set by the Board,
11upon payment of a $25,000 license fee for the first year of
12operation and a $5,000 license fee for each succeeding year and
13upon a determination by the Board that the applicant is
14eligible for an owners license pursuant to this Act and the
15rules of the Board. From the effective date of this amendatory
16Act of the 95th General Assembly until (i) 3 years after the
17effective date of this amendatory Act of the 95th General
18Assembly, (ii) the date any organization licensee begins to
19operate a slot machine or video game of chance under the
20Illinois Horse Racing Act of 1975 or this Act, (iii) the date
21that payments begin under subsection (c-5) of Section 13 of the
22Act, or (iv) the wagering tax imposed under Section 13 of this
23Act is increased by law to reflect a tax rate that is at least

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1as stringent or more stringent than the tax rate contained in
2subsection (a-3) of Section 13, whichever occurs first, as a
3condition of licensure and as an alternative source of payment
4for those funds payable under subsection (c-5) of Section 13 of
5the Riverboat Gambling Act, any owners licensee that holds or
6receives its owners license on or after the effective date of
7this amendatory Act of the 94th General Assembly, other than an
8owners licensee operating a riverboat with adjusted gross
9receipts in calendar year 2004 of less than $200,000,000, must
10pay into the Horse Racing Equity Trust Fund, in addition to any
11other payments required under this Act, an amount equal to 3%
12of the adjusted gross receipts received by the owners licensee.
13The payments required under this Section shall be made by the
14owners licensee to the State Treasurer no later than 3:00
15o'clock p.m. of the day after the day when the adjusted gross
16receipts were received by the owners licensee. A person, firm
17or corporation is ineligible to receive an owners license if:
18 (1) the person has been convicted of a felony under the
19 laws of this State, any other state, or the United States;
20 (2) the person has been convicted of any violation of
21 Article 28 of the Criminal Code of 1961 or the Criminal
22 Code of 2012, or substantially similar laws of any other
23 jurisdiction;
24 (3) the person has submitted an application for a
25 license under this Act which contains false information;
26 (4) the person is a member of the Board;

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1 (5) a person defined in (1), (2), (3) or (4) is an
2 officer, director or managerial employee of the firm or
3 corporation;
4 (6) the firm or corporation employs a person defined in
5 (1), (2), (3) or (4) who participates in the management or
6 operation of gambling operations authorized under this
7 Act;
8 (7) (blank); or
9 (8) a license of the person, firm or corporation issued
10 under this Act, or a license to own or operate gambling
11 facilities in any other jurisdiction, has been revoked.
12 The Board is expressly prohibited from making changes to
13the requirement that licensees make payment into the Horse
14Racing Equity Trust Fund without the express authority of the
15Illinois General Assembly and making any other rule to
16implement or interpret this amendatory Act of the 95th General
17Assembly. For the purposes of this paragraph, "rules" is given
18the meaning given to that term in Section 1-70 of the Illinois
19Administrative Procedure Act.
20 (b) In determining whether to grant an owners license to an
21applicant, the Board shall consider:
22 (1) the character, reputation, experience and
23 financial integrity of the applicants and of any other or
24 separate person that either:
25 (A) controls, directly or indirectly, such
26 applicant, or

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1 (B) is controlled, directly or indirectly, by such
2 applicant or by a person which controls, directly or
3 indirectly, such applicant;
4 (2) the facilities or proposed facilities for the
5 conduct of riverboat gambling;
6 (3) the highest prospective total revenue to be derived
7 by the State from the conduct of riverboat gambling;
8 (4) the extent to which the ownership of the applicant
9 reflects the diversity of the State by including minority
10 persons, females, and persons with a disability and the
11 good faith affirmative action plan of each applicant to
12 recruit, train and upgrade minority persons, females, and
13 persons with a disability in all employment
14 classifications;
15 (4.5) the extent to which the ownership of the
16 applicant includes veterans of service in the armed forces
17 of the United States, and the good faith affirmative action
18 plan of each applicant to recruit, train, and upgrade
19 veterans of service in the armed forces of the United
20 States in all employment classifications;
21 (5) the financial ability of the applicant to purchase
22 and maintain adequate liability and casualty insurance;
23 (6) whether the applicant has adequate capitalization
24 to provide and maintain, for the duration of a license, a
25 riverboat;
26 (7) the extent to which the applicant exceeds or meets

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1 other standards for the issuance of an owners license which
2 the Board may adopt by rule; and
3 (8) The amount of the applicant's license bid.
4 (c) Each owners license shall specify the place where
5riverboats shall operate and dock.
6 (d) Each applicant shall submit with his application, on
7forms provided by the Board, 2 sets of his fingerprints.
8 (e) The Board may issue up to 10 licenses authorizing the
9holders of such licenses to own riverboats. In the application
10for an owners license, the applicant shall state the dock at
11which the riverboat is based and the water on which the
12riverboat will be located. The Board shall issue 5 licenses to
13become effective not earlier than January 1, 1991. Three of
14such licenses shall authorize riverboat gambling on the
15Mississippi River, or, with approval by the municipality in
16which the riverboat was docked on August 7, 2003 and with Board
17approval, be authorized to relocate to a new location, in a
18municipality that (1) borders on the Mississippi River or is
19within 5 miles of the city limits of a municipality that
20borders on the Mississippi River and (2), on August 7, 2003,
21had a riverboat conducting riverboat gambling operations
22pursuant to a license issued under this Act; one of which shall
23authorize riverboat gambling from a home dock in the city of
24East St. Louis. One other license shall authorize riverboat
25gambling on the Illinois River south of Marshall County. The
26Board shall issue one additional license to become effective

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1not earlier than March 1, 1992, which shall authorize riverboat
2gambling on the Des Plaines River in Will County. The Board may
3issue 4 additional licenses to become effective not earlier
4than March 1, 1992. In determining the water upon which
5riverboats will operate, the Board shall consider the economic
6benefit which riverboat gambling confers on the State, and
7shall seek to assure that all regions of the State share in the
8economic benefits of riverboat gambling.
9 In granting all licenses, the Board may give favorable
10consideration to economically depressed areas of the State, to
11applicants presenting plans which provide for significant
12economic development over a large geographic area, and to
13applicants who currently operate non-gambling riverboats in
14Illinois. The Board shall review all applications for owners
15licenses, and shall inform each applicant of the Board's
16decision. The Board may grant an owners license to an applicant
17that has not submitted the highest license bid, but if it does
18not select the highest bidder, the Board shall issue a written
19decision explaining why another applicant was selected and
20identifying the factors set forth in this Section that favored
21the winning bidder.
22 In addition to any other revocation powers granted to the
23Board under this Act, the Board may revoke the owners license
24of a licensee which fails to begin conducting gambling within
2515 months of receipt of the Board's approval of the application
26if the Board determines that license revocation is in the best

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1interests of the State.
2 (f) The first 10 owners licenses issued under this Act
3shall permit the holder to own up to 2 riverboats and equipment
4thereon for a period of 3 years after the effective date of the
5license. Holders of the first 10 owners licenses must pay the
6annual license fee for each of the 3 years during which they
7are authorized to own riverboats.
8 (g) Upon the termination, expiration, or revocation of each
9of the first 10 licenses, which shall be issued for a 3 year
10period, all licenses are renewable annually upon payment of the
11fee and a determination by the Board that the licensee
12continues to meet all of the requirements of this Act and the
13Board's rules. However, for licenses renewed on or after May 1,
141998, renewal shall be for a period of 4 years, unless the
15Board sets a shorter period.
16 (h) An owners license shall entitle the licensee to own up
17to 2 riverboats. A licensee shall limit the number of gambling
18participants to 1,200 for any such owners license. A licensee
19may operate both of its riverboats concurrently, provided that
20the total number of gambling participants on both riverboats
21does not exceed 1,200. Riverboats licensed to operate on the
22Mississippi River and the Illinois River south of Marshall
23County shall have an authorized capacity of at least 500
24persons. Any other riverboat licensed under this Act shall have
25an authorized capacity of at least 400 persons.
26 (i) A licensed owner is authorized to apply to the Board

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1for and, if approved therefor, to receive all licenses from the
2Board necessary for the operation of a riverboat, including a
3liquor license, a license to prepare and serve food for human
4consumption, and other necessary licenses. All use, occupation
5and excise taxes which apply to the sale of food and beverages
6in this State and all taxes imposed on the sale or use of
7tangible personal property apply to such sales aboard the
8riverboat.
9 (j) The Board may issue or re-issue a license authorizing a
10riverboat to dock in a municipality or approve a relocation
11under Section 11.2 only if, prior to the issuance or
12re-issuance of the license or approval, the governing body of
13the municipality in which the riverboat will dock has by a
14majority vote approved the docking of riverboats in the
15municipality. The Board may issue or re-issue a license
16authorizing a riverboat to dock in areas of a county outside
17any municipality or approve a relocation under Section 11.2
18only if, prior to the issuance or re-issuance of the license or
19approval, the governing body of the county has by a majority
20vote approved of the docking of riverboats within such areas.
21(Source: P.A. 96-1392, eff. 1-1-11; 97-1150, eff. 1-25-13.)
22 (230 ILCS 10/7.6)
23 Sec. 7.6. Business enterprise program.
24 (a) For the purposes of this Section, the terms "minority",
25"minority owned business", "female", "female owned business",

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1"person with a disability", and "business owned by a person
2with a disability" have the meanings ascribed to them in the
3Business Enterprise for Minorities, Females, and Persons with
4Disabilities Act.
5 (b) The Board shall, by rule, establish goals for the award
6of contracts by each owners licensee to businesses owned by
7minorities, females, and persons with disabilities, expressed
8as percentages of an owners licensee's total dollar amount of
9contracts awarded during each calendar year. Each owners
10licensee must make every effort to meet the goals established
11by the Board pursuant to this Section. When setting the goals
12for the award of contracts, the Board shall not include
13contracts where: (1) any purchasing mandates would be dependent
14upon the availability of minority owned businesses, female
15owned businesses, and businesses owned by persons with
16disabilities ready, willing, and able with capacity to provide
17quality goods and services to a gaming operation at reasonable
18prices; (2) there are no or a limited number of licensed
19suppliers as defined by this Act for the goods or services
20provided to the licensee; (3) the licensee or its parent
21company owns a company that provides the goods or services; or
22(4) the goods or services are provided to the licensee by a
23publicly traded company.
24 (c) Each owners licensee shall file with the Board an
25annual report of its utilization of minority owned businesses,
26female owned businesses, and businesses owned by persons with

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1disabilities during the preceding calendar year. The reports
2shall include a self-evaluation of the efforts of the owners
3licensee to meet its goals under this Section.
4 (c-5) The Board shall, by rule, establish goals for the
5award of contracts by each owners licensee to businesses owned
6by veterans of service in the armed forces of the United
7States, expressed as percentages of an owners licensee's total
8dollar amount of contracts awarded during each calendar year.
9When setting the goals for the award of contracts, the Board
10shall not include contracts where: (1) any purchasing mandates
11would be dependent upon the availability of veteran-owned
12businesses ready, willing, and able with capacity to provide
13quality goods and services to a gaming operation at reasonable
14prices; (2) there are no or a limited number of licensed
15suppliers as defined in this Act for the goods or services
16provided to the licensee: (3) the licensee or its parent
17company owns a company that provides the goods or services; or
18(4) the goods or services are provided to the licensee by a
19publicly traded company.
20 Each owners licensee shall file with the Board an annual
21report of its utilization of veteran-owned businesses during
22the preceding calendar year. The reports shall include a
23self-evaluation of the efforts of the owners licensee to meet
24its goals under this Section.
25 (d) The owners licensee shall have the right to request a
26waiver from the requirements of this Section. The Board shall

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1grant the waiver where the owners licensee demonstrates that
2there has been made a good faith effort to comply with the
3goals for participation by minority owned businesses, female
4owned businesses, and businesses owned by persons with
5disabilities, and veteran-owned businesses.
6 (e) If the Board determines that its goals and policies are
7not being met by any owners licensee, then the Board may:
8 (1) adopt remedies for such violations; and
9 (2) recommend that the owners licensee provide
10 additional opportunities for participation by minority
11 owned businesses, female owned businesses, and businesses
12 owned by persons with disabilities, and veteran-owned
13 businesses; such recommendations may include, but shall
14 not be limited to:
15 (A) assurances of stronger and better focused
16 solicitation efforts to obtain more minority owned
17 businesses, female owned businesses, and businesses
18 owned by persons with disabilities, and veteran-owned
19 businesses as potential sources of supply;
20 (B) division of job or project requirements, when
21 economically feasible, into tasks or quantities to
22 permit participation of minority owned businesses,
23 female owned businesses, and businesses owned by
24 persons with disabilities, and veteran-owned
25 businesses;
26 (C) elimination of extended experience or

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1 capitalization requirements, when programmatically
2 feasible, to permit participation of minority owned
3 businesses, female owned businesses, and businesses
4 owned by persons with disabilities, and veteran-owned
5 businesses;
6 (D) identification of specific proposed contracts
7 as particularly attractive or appropriate for
8 participation by minority owned businesses, female
9 owned businesses, and businesses owned by persons with
10 disabilities, and veteran-owned businesses, such
11 identification to result from and be coupled with the
12 efforts of items (A) through (C); and
13 (E) implementation of regulations established for
14 the use of the sheltered market process.
15 (f) The Board shall file, no later than May 31 March 1 of
16each year, an annual report that shall detail the level of
17achievement toward the goals specified in this Section over the
183 most recent fiscal years. The annual report shall include,
19but need not be limited to:
20 (1) a summary detailing expenditures subject to the
21 goals, the actual goals specified, and the goals attained
22 by each owners licensee; and
23 (2) an analysis of the level of overall goal
24 achievement concerning purchases from minority owned
25 businesses, female owned businesses, and businesses owned
26 by persons with disabilities, and veteran-owned

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1 businesses.
2(Source: P.A. 98-490, eff. 8-16-13; 99-78, eff. 7-20-15.)
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