HB1918 Enrolled LRB094 02935 LRD 32936 b 1 AN ACT concerning gaming. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Findings. The legislature makes all of the 5 following findings: 6 (1) That riverboat gaming has had a negative impact on 7 horse racing. From 1992, the first full year of riverboat 8 operations, through 2005, Illinois on-track wagering has 9 decreased by 42% from $835 million to $482 million. 10 (2) That this decrease in wagering has negatively 11 impacted purses for Illinois racing, which has hurt the 12 State's breeding industry. Between 1991 and 2004 the number 13 of foals registered with the Department of Agriculture has 14 decreased by more then 46% from 3,529 to 1,891. 15 (3) That the decline of the Illinois horseracing and 16 breeding program, a $2.5 billion industry, would be 17 reversed if this amendatory Act of the 94th General 18 Assembly was enacted. By requiring that riverboats agree to 19 pay 3% of their gross revenue into the Horse Racing Equity 20 Trust Fund, total purses in the State may increase by 50%, 21 helping Illinois tracks to better compete with those in 22 other states. Illinois currently ranks thirteenth 23 nationally in terms of its purse size; the change would 24 propel the State to second or third. 25 (4) That Illinois agriculture and other businesses 26 that support and supply the horse racing industry, already 27 a sector that employs over 37,000 Illinoisans, also stand 28 to substantially benefit and would be much more likely to 29 create additional jobs should Illinois horse racing once 30 again become competitive with other states. 31 (5) That the 3% of gross revenues this amendatory Act 32 of the 94th General Assembly will contribute to the horse 33 racing industry will benefit that important industry for HB1918 Enrolled - 2 - LRB094 02935 LRD 32936 b 1 Illinois farmers, breeders, and fans of horseracing and 2 will begin to address the negative impact riverboat gaming 3 has had on Illinois horseracing. 4 Section 5. The State Finance Act is amended by changing 5 Section 8h as follows: 6 (30 ILCS 105/8h) 7 Sec. 8h. Transfers to General Revenue Fund. 8 (a) Except as provided in subsection (b), notwithstanding 9 any other State law to the contrary, the Governor may, through 10 June 30, 2007, from time to time direct the State Treasurer and 11 Comptroller to transfer a specified sum from any fund held by 12 the State Treasurer to the General Revenue Fund in order to 13 help defray the State's operating costs for the fiscal year. 14 The total transfer under this Section from any fund in any 15 fiscal year shall not exceed the lesser of (i) 8% of the 16 revenues to be deposited into the fund during that fiscal year 17 or (ii) an amount that leaves a remaining fund balance of 25% 18 of the July 1 fund balance of that fiscal year. In fiscal year 19 2005 only, prior to calculating the July 1, 2004 final 20 balances, the Governor may calculate and direct the State 21 Treasurer with the Comptroller to transfer additional amounts 22 determined by applying the formula authorized in Public Act 23 93-839 to the funds balances on July 1, 2003. No transfer may 24 be made from a fund under this Section that would have the 25 effect of reducing the available balance in the fund to an 26 amount less than the amount remaining unexpended and unreserved 27 from the total appropriation from that fund estimated to be 28 expended for that fiscal year. This Section does not apply to 29 any funds that are restricted by federal law to a specific use, 30 to any funds in the Motor Fuel Tax Fund, the Intercity 31 Passenger Rail Fund, the Hospital Provider Fund, the Medicaid 32 Provider Relief Fund, the Teacher Health Insurance Security 33 Fund, the Reviewing Court Alternative Dispute Resolution Fund, 34 or the Voters' Guide Fund, the Foreign Language Interpreter HB1918 Enrolled - 3 - LRB094 02935 LRD 32936 b 1 Fund, the Lawyers' Assistance Program Fund, the Supreme Court 2 Federal Projects Fund, the Supreme Court Special State Projects 3 Fund, or the Low-Level Radioactive Waste Facility Development 4 and Operation Fund, the Horse Racing Equity Trust Fund, or the 5 Hospital Basic Services Preservation Fund, or to any funds to 6 which subsection (f) of Section 20-40 of the Nursing and 7 Advanced Practice Nursing Act applies. No transfers may be made 8 under this Section from the Pet Population Control Fund. 9 Notwithstanding any other provision of this Section, for fiscal 10 year 2004, the total transfer under this Section from the Road 11 Fund or the State Construction Account Fund shall not exceed 12 the lesser of (i) 5% of the revenues to be deposited into the 13 fund during that fiscal year or (ii) 25% of the beginning 14 balance in the fund. For fiscal year 2005 through fiscal year 15 2007, no amounts may be transferred under this Section from the 16 Road Fund, the State Construction Account Fund, the Criminal 17 Justice Information Systems Trust Fund, the Wireless Service 18 Emergency Fund, or the Mandatory Arbitration Fund. 19 In determining the available balance in a fund, the 20 Governor may include receipts, transfers into the fund, and 21 other resources anticipated to be available in the fund in that 22 fiscal year. 23 The State Treasurer and Comptroller shall transfer the 24 amounts designated under this Section as soon as may be 25 practicable after receiving the direction to transfer from the 26 Governor. 27 (b) This Section does not apply to: (i) the Ticket For The 28 Cure Fund; (ii) or to any fund established under the Community 29 Senior Services and Resources Act; or (iii) (ii) on or after 30 January 1, 2006 (the effective date of Public Act 94-511) this 31 amendatory Act of the 94th General Assembly, the Child Labor 32 and Day and Temporary Labor Enforcement Fund. 33 (c) This Section does not apply to the Demutualization 34 Trust Fund established under the Uniform Disposition of 35 Unclaimed Property Act. 36 (d) (c) This Section does not apply to moneys set aside in HB1918 Enrolled - 4 - LRB094 02935 LRD 32936 b 1 the Illinois State Podiatric Disciplinary Fund for podiatric 2 scholarships and residency programs under the Podiatric 3 Scholarship and Residency Act. 4 (Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04; 93-674, 5 eff. 6-10-04; 93-714, eff. 7-12-04; 93-801, eff. 7-22-04; 6 93-839, eff. 7-30-04; 93-1054, eff. 11-18-04; 93-1067, eff. 7 1-15-05; 94-91, eff. 7-1-05; 94-120, eff. 7-6-05; 94-511, eff. 8 1-1-06; 94-535, eff. 8-10-05; 94-639, eff. 8-22-05; 94-645, 9 eff. 8-22-05; 94-648, eff. 1-1-06; 94-686, eff. 11-2-05; 10 94-691, eff. 11-2-05; 94-726, eff. 1-20-06; revised 1-23-06.) 11 Section 10. The Illinois Horse Racing Act of 1975 is 12 amended by adding Section 54.5 as follows: 13 (230 ILCS 5/54.5 new) 14 Sec. 54.5. Horse Racing Equity Trust Fund. 15 (a) There is created a Fund to be known as the Horse Racing 16 Equity Trust Fund, which is a non-appropriated trust fund held 17 separate and apart from State moneys. The Fund shall consist of 18 moneys paid into it by owners licensees under the Riverboat 19 Gambling Act for the purposes described in this Section. The 20 Fund shall be administered by the Board. Moneys in the Fund 21 shall be distributed as directed and certified by the Board in 22 accordance with the provisions of subsection (b). 23 (b) The moneys deposited into the Fund, plus any accrued 24 interest on those moneys, shall be distributed within 10 days 25 after those moneys are deposited into the Fund as follows: 26 (1) Sixty percent of all moneys distributed under this 27 subsection shall be distributed to organization licensees 28 to be distributed at their race meetings as purses. 29 Fifty-seven percent of the amount distributed under this 30 paragraph (1) shall be distributed for thoroughbred race 31 meetings and 43% shall be distributed for standardbred race 32 meetings. Within each breed, moneys shall be allocated to 33 each organization licensee's purse fund in accordance with 34 the ratio between the purses generated for that breed by HB1918 Enrolled - 5 - LRB094 02935 LRD 32936 b 1 that licensee during the prior calendar year and the total 2 purses generated throughout the State for that breed during 3 the prior calendar year by licensees in the current 4 calendar year. 5 (2) The remaining 40% of the moneys distributed under 6 this subsection (b) shall be distributed as follows: 7 (A) 11% shall be distributed to any person (or its 8 successors or assigns) who had operating control of a 9 racetrack that conducted live racing in 2002 at a 10 racetrack in a county with at least 230,000 inhabitants 11 that borders the Mississippi River and is a licensee in 12 the current year; and 13 (B) the remaining 89% shall be distributed pro rata 14 according to the aggregate proportion of total handle 15 from wagering on live races conducted in Illinois 16 (irrespective of where the wagers are placed) for 17 calendar years 2004 and 2005 to any person (or its 18 successors or assigns) who (i) had majority operating 19 control of a racing facility at which live racing was 20 conducted in calendar year 2002, (ii) is a licensee in 21 the current year, and (iii) is not eligible to receive 22 moneys under subparagraph (A) of this paragraph (2). 23 The moneys received by an organization licensee 24 under this paragraph (2) shall be used by each 25 organization licensee to improve, maintain, market, 26 and otherwise operate its racing facilities to conduct 27 live racing, which shall include backstretch services 28 and capital improvements related to live racing and the 29 backstretch. Any organization licensees sharing common 30 ownership may pool the moneys received and spent at all 31 racing facilities commonly owned in order to meet these 32 requirements. 33 If any person identified in this paragraph (2) becomes 34 ineligible to receive moneys from the Fund, such amount 35 shall be redistributed among the remaining persons in 36 proportion to their percentages otherwise calculated. HB1918 Enrolled - 6 - LRB094 02935 LRD 32936 b 1 (c) The Board shall monitor organization licensees to 2 ensure that moneys paid to organization licensees under this 3 Section are distributed by the organization licensees as 4 provided in subsection (b). 5 (d) This Section is repealed 2 years after the effective 6 date of this amendatory Act of the 94th General Assembly. 7 Section 15. The Riverboat Gambling Act is amended by 8 changing Sections 7, 13, and 23 as follows: 9 (230 ILCS 10/7) (from Ch. 120, par. 2407) 10 Sec. 7. Owners Licenses. 11 (a) The Board shall issue owners licenses to persons, firms 12 or corporations which apply for such licenses upon payment to 13 the Board of the non-refundable license fee set by the Board, 14 upon payment of a $25,000 license fee for the first year of 15 operation and a $5,000 license fee for each succeeding year and 16 upon a determination by the Board that the applicant is 17 eligible for an owners license pursuant to this Act and the 18 rules of the Board. For a period of 2 years beginning on the 19 effective date of this amendatory Act of the 94th General 20 Assembly, as a condition of licensure and as an alternative 21 source of payment for those funds payable under subsection 22 (c-5) of Section 13 of the Riverboat Gambling Act, any owners 23 licensee that holds or receives its owners license on or after 24 the effective date of this amendatory Act of the 94th General 25 Assembly, other than an owners licensee operating a riverboat 26 with adjusted gross receipts in calendar year 2004 of less than 27 $200,000,000, must pay into the Horse Racing Equity Trust Fund, 28 in addition to any other payments required under this Act, an 29 amount equal to 3% of the adjusted gross receipts received by 30 the owners licensee. The payments required under this Section 31 shall be made by the owners licensee to the State Treasurer no 32 later than 3:00 o'clock p.m. of the day after the day when the 33 adjusted gross receipts were received by the owners licensee. A 34 person, firm or corporation is ineligible to receive an owners HB1918 Enrolled - 7 - LRB094 02935 LRD 32936 b 1 license if: 2 (1) the person has been convicted of a felony under the 3 laws of this State, any other state, or the United States; 4 (2) the person has been convicted of any violation of 5 Article 28 of the Criminal Code of 1961, or substantially 6 similar laws of any other jurisdiction; 7 (3) the person has submitted an application for a 8 license under this Act which contains false information; 9 (4) the person is a member of the Board; 10 (5) a person defined in (1), (2), (3) or (4) is an 11 officer, director or managerial employee of the firm or 12 corporation; 13 (6) the firm or corporation employs a person defined in 14 (1), (2), (3) or (4) who participates in the management or 15 operation of gambling operations authorized under this 16 Act; 17 (7) (blank); or 18 (8) a license of the person, firm or corporation issued 19 under this Act, or a license to own or operate gambling 20 facilities in any other jurisdiction, has been revoked. 21 (b) In determining whether to grant an owners license to an 22 applicant, the Board shall consider: 23 (1) the character, reputation, experience and 24 financial integrity of the applicants and of any other or 25 separate person that either: 26 (A) controls, directly or indirectly, such 27 applicant, or 28 (B) is controlled, directly or indirectly, by such 29 applicant or by a person which controls, directly or 30 indirectly, such applicant; 31 (2) the facilities or proposed facilities for the 32 conduct of riverboat gambling; 33 (3) the highest prospective total revenue to be derived 34 by the State from the conduct of riverboat gambling; 35 (4) the extent to which the ownership of the applicant 36 reflects the diversity of the State by including minority HB1918 Enrolled - 8 - LRB094 02935 LRD 32936 b 1 persons and females and the good faith affirmative action 2 plan of each applicant to recruit, train and upgrade 3 minority persons and females in all employment 4 classifications; 5 (5) the financial ability of the applicant to purchase 6 and maintain adequate liability and casualty insurance; 7 (6) whether the applicant has adequate capitalization 8 to provide and maintain, for the duration of a license, a 9 riverboat; 10 (7) the extent to which the applicant exceeds or meets 11 other standards for the issuance of an owners license which 12 the Board may adopt by rule; and 13 (8) The amount of the applicant's license bid. 14 (c) Each owners license shall specify the place where 15 riverboats shall operate and dock. 16 (d) Each applicant shall submit with his application, on 17 forms provided by the Board, 2 sets of his fingerprints. 18 (e) The Board may issue up to 10 licenses authorizing the 19 holders of such licenses to own riverboats. In the application 20 for an owners license, the applicant shall state the dock at 21 which the riverboat is based and the water on which the 22 riverboat will be located. The Board shall issue 5 licenses to 23 become effective not earlier than January 1, 1991. Three of 24 such licenses shall authorize riverboat gambling on the 25 Mississippi River, or, with approval by the municipality in 26 which the riverboat was docked on August 7, 2003 and with Board 27 approval, be authorized to relocate to a new location, in a 28 municipality that (1) borders on the Mississippi River or is 29 within 5 miles of the city limits of a municipality that 30 borders on the Mississippi River and (2), on August 7, 2003, 31 had a riverboat conducting riverboat gambling operations 32 pursuant to a license issued under this Act; one of which shall 33 authorize riverboat gambling from a home dock in the city of 34 East St. Louis. One other license shall authorize riverboat 35 gambling on the Illinois River south of Marshall County. The 36 Board shall issue one additional license to become effective HB1918 Enrolled - 9 - LRB094 02935 LRD 32936 b 1 not earlier than March 1, 1992, which shall authorize riverboat 2 gambling on the Des Plaines River in Will County. The Board may 3 issue 4 additional licenses to become effective not earlier 4 than March 1, 1992. In determining the water upon which 5 riverboats will operate, the Board shall consider the economic 6 benefit which riverboat gambling confers on the State, and 7 shall seek to assure that all regions of the State share in the 8 economic benefits of riverboat gambling. 9 In granting all licenses, the Board may give favorable 10 consideration to economically depressed areas of the State, to 11 applicants presenting plans which provide for significant 12 economic development over a large geographic area, and to 13 applicants who currently operate non-gambling riverboats in 14 Illinois. The Board shall review all applications for owners 15 licenses, and shall inform each applicant of the Board's 16 decision. The Board may grant an owners license to an applicant 17 that has not submitted the highest license bid, but if it does 18 not select the highest bidder, the Board shall issue a written 19 decision explaining why another applicant was selected and 20 identifying the factors set forth in this Section that favored 21 the winning bidder. 22 In addition to any other revocation powers granted to the 23 Board under this Act, the Board may revoke the owners license 24 of a licensee which fails to begin conducting gambling within 25 15 months of receipt of the Board's approval of the application 26 if the Board determines that license revocation is in the best 27 interests of the State. 28 (f) The first 10 owners licenses issued under this Act 29 shall permit the holder to own up to 2 riverboats and equipment 30 thereon for a period of 3 years after the effective date of the 31 license. Holders of the first 10 owners licenses must pay the 32 annual license fee for each of the 3 years during which they 33 are authorized to own riverboats. 34 (g) Upon the termination, expiration, or revocation of each 35 of the first 10 licenses, which shall be issued for a 3 year 36 period, all licenses are renewable annually upon payment of the HB1918 Enrolled - 10 - LRB094 02935 LRD 32936 b 1 fee and a determination by the Board that the licensee 2 continues to meet all of the requirements of this Act and the 3 Board's rules. However, for licenses renewed on or after May 1, 4 1998, renewal shall be for a period of 4 years, unless the 5 Board sets a shorter period. 6 (h) An owners license shall entitle the licensee to own up 7 to 2 riverboats. A licensee shall limit the number of gambling 8 participants to 1,200 for any such owners license. A licensee 9 may operate both of its riverboats concurrently, provided that 10 the total number of gambling participants on both riverboats 11 does not exceed 1,200. Riverboats licensed to operate on the 12 Mississippi River and the Illinois River south of Marshall 13 County shall have an authorized capacity of at least 500 14 persons. Any other riverboat licensed under this Act shall have 15 an authorized capacity of at least 400 persons. 16 (i) A licensed owner is authorized to apply to the Board 17 for and, if approved therefor, to receive all licenses from the 18 Board necessary for the operation of a riverboat, including a 19 liquor license, a license to prepare and serve food for human 20 consumption, and other necessary licenses. All use, occupation 21 and excise taxes which apply to the sale of food and beverages 22 in this State and all taxes imposed on the sale or use of 23 tangible personal property apply to such sales aboard the 24 riverboat. 25 (j) The Board may issue or re-issue a license authorizing a 26 riverboat to dock in a municipality or approve a relocation 27 under Section 11.2 only if, prior to the issuance or 28 re-issuance of the license or approval, the governing body of 29 the municipality in which the riverboat will dock has by a 30 majority vote approved the docking of riverboats in the 31 municipality. The Board may issue or re-issue a license 32 authorizing a riverboat to dock in areas of a county outside 33 any municipality or approve a relocation under Section 11.2 34 only if, prior to the issuance or re-issuance of the license or 35 approval, the governing body of the county has by a majority 36 vote approved of the docking of riverboats within such areas. HB1918 Enrolled - 11 - LRB094 02935 LRD 32936 b 1 (Source: P.A. 93-28, eff. 6-20-03; 93-453, eff. 8-7-03; 94-667, 2 eff. 8-23-05.) 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 6 gross receipts received from gambling games authorized under 7 this Act at the rate of 20%. 8 (a-1) From January 1, 1998 until July 1, 2002, a privilege 9 tax is imposed on persons engaged in the business of conducting 10 riverboat gambling operations, based on the adjusted gross 11 receipts received by a licensed owner from gambling games 12 authorized 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 24 is imposed on persons engaged in the business of conducting 25 riverboat gambling operations, other than licensed managers 26 conducting riverboat gambling operations on behalf of the 27 State, based on the adjusted gross receipts received by a 28 licensed owner from gambling games authorized under this Act at 29 the following rates: 30 15% of annual adjusted gross receipts up to and 31 including $25,000,000; 32 22.5% of annual adjusted gross receipts in excess of 33 $25,000,000 but not exceeding $50,000,000; 34 27.5% of annual adjusted gross receipts in excess of 35 $50,000,000 but not exceeding $75,000,000; HB1918 Enrolled - 12 - LRB094 02935 LRD 32936 b 1 32.5% of annual adjusted gross receipts in excess of 2 $75,000,000 but not exceeding $100,000,000; 3 37.5% of annual adjusted gross receipts in excess of 4 $100,000,000 but not exceeding $150,000,000; 5 45% of annual adjusted gross receipts in excess of 6 $150,000,000 but not exceeding $200,000,000; 7 50% of annual adjusted gross receipts in excess of 8 $200,000,000. 9 (a-3) Beginning July 1, 2003, a privilege tax is imposed on 10 persons engaged in the business of conducting riverboat 11 gambling operations, other than licensed managers conducting 12 riverboat gambling operations on behalf of the State, based on 13 the adjusted gross receipts received by a licensed owner from 14 gambling games authorized under this Act at the following 15 rates: 16 15% of annual adjusted gross receipts up to and 17 including $25,000,000; 18 27.5% of annual adjusted gross receipts in excess of 19 $25,000,000 but not exceeding $37,500,000; 20 32.5% of annual adjusted gross receipts in excess of 21 $37,500,000 but not exceeding $50,000,000; 22 37.5% of annual adjusted gross receipts in excess of 23 $50,000,000 but not exceeding $75,000,000; 24 45% of annual adjusted gross receipts in excess of 25 $75,000,000 but not exceeding $100,000,000; 26 50% of annual adjusted gross receipts in excess of 27 $100,000,000 but not exceeding $250,000,000; 28 70% of annual adjusted gross receipts in excess of 29 $250,000,000. 30 An amount equal to the amount of wagering taxes collected 31 under this subsection (a-3) that are in addition to the amount 32 of wagering taxes that would have been collected if the 33 wagering tax rates under subsection (a-2) were in effect shall 34 be paid into the Common School Fund. 35 The privilege tax imposed under this subsection (a-3) shall 36 no longer be imposed beginning on the earlier of (i) July 1, HB1918 Enrolled - 13 - LRB094 02935 LRD 32936 b 1 2005; (ii) the first date after June 20, 2003 that riverboat 2 gambling operations are conducted pursuant to a dormant 3 license; or (iii) the first day that riverboat gambling 4 operations are conducted under the authority of an owners 5 license that is in addition to the 10 owners licenses initially 6 authorized under this Act. For the purposes of this subsection 7 (a-3), the term "dormant license" means an owners license that 8 is authorized by this Act under which no riverboat gambling 9 operations are being conducted on June 20, 2003. 10 (a-4) Beginning on the first day on which the tax imposed 11 under subsection (a-3) is no longer imposed, a privilege tax is 12 imposed on persons engaged in the business of conducting 13 riverboat gambling operations, other than licensed managers 14 conducting riverboat gambling operations on behalf of the 15 State, based on the adjusted gross receipts received by a 16 licensed owner from gambling games authorized under this Act at 17 the following rates: 18 15% of annual adjusted gross receipts up to and 19 including $25,000,000; 20 22.5% of annual adjusted gross receipts in excess of 21 $25,000,000 but not exceeding $50,000,000; 22 27.5% of annual adjusted gross receipts in excess of 23 $50,000,000 but not exceeding $75,000,000; 24 32.5% of annual adjusted gross receipts in excess of 25 $75,000,000 but not exceeding $100,000,000; 26 37.5% of annual adjusted gross receipts in excess of 27 $100,000,000 but not exceeding $150,000,000; 28 45% of annual adjusted gross receipts in excess of 29 $150,000,000 but not exceeding $200,000,000; 30 50% of annual adjusted gross receipts in excess of 31 $200,000,000. 32 (a-8) Riverboat gambling operations conducted by a 33 licensed manager on behalf of the State are not subject to the 34 tax imposed under this Section. 35 (a-10) The taxes imposed by this Section shall be paid by 36 the licensed owner to the Board not later than 3:00 o'clock HB1918 Enrolled - 14 - LRB094 02935 LRD 32936 b 1 p.m. of the day after the day when the wagers were made. 2 (a-15) If the privilege tax imposed under subsection (a-3) 3 is no longer imposed pursuant to item (i) of the last paragraph 4 of subsection (a-3), then by June 15 of each year, each owners 5 licensee, other than an owners licensee that admitted 1,000,000 6 persons or fewer in calendar year 2004, must, in addition to 7 the payment of all amounts otherwise due under this Section, 8 pay to the Board the amount, if any, by which the base amount 9 for the licensed owner exceeds the amount of tax paid under 10 this Section by the licensed owner in the then current State 11 fiscal year. The obligation imposed by this subsection (a-15) 12 is binding on any person, firm, corporation, or other entity 13 that acquires an ownership interest in any such owners license. 14 The obligation imposed under this subsection (a-15) terminates 15 on the earliest of: (i) July 1, 2007, (ii) the first day after 16 the effective date of this amendatory Act of the 94th General 17 Assembly that riverboat gambling operations are conducted 18 pursuant to a dormant license, (iii) the first day that 19 riverboat gambling operations are conducted under the 20 authority of an owners license that is in addition to the 10 21 owners licenses initially authorized under this Act, or (iv) 22 the first day that a licensee under the Illinois Horse Racing 23 Act of 1975 conducts gaming operations with slot machines or 24 other electronic gaming devices. The Board must reduce the 25 obligation imposed under this subsection (a-15) by an amount 26 the Board deems reasonable for any of the following reasons: 27 (A) an act or acts of God, (B) an act of bioterrorism or 28 terrorism or a bioterrorism or terrorism threat that was 29 investigated by a law enforcement agency, or (C) a condition 30 beyond the control of the owners licensee that does not result 31 from any act or omission by the owners licensee or any of its 32 agents and that poses a hazardous threat to the health and 33 safety of patrons. If an owners licensee pays an amount in 34 excess of its liability under this Section, the Board shall 35 apply the overpayment to future payments required under this 36 Section. HB1918 Enrolled - 15 - LRB094 02935 LRD 32936 b 1 For purposes of this subsection (a-15): 2 "Act of God" means an incident caused by the operation of 3 an extraordinary force that cannot be foreseen, that cannot be 4 avoided by the exercise of due care, and for which no person 5 can be held liable. 6 "Base amount" means the following: 7 For a riverboat in Alton, $31,000,000. 8 For a riverboat in East Peoria, $43,000,000. 9 For the Empress riverboat in Joliet, $86,000,000. 10 For a riverboat in Metropolis, $45,000,000. 11 For the Harrah's riverboat in Joliet, $114,000,000. 12 For a riverboat in Aurora, $86,000,000. 13 For a riverboat in East St. Louis, $48,500,000. 14 For a riverboat in Elgin, $198,000,000. 15 "Dormant license" has the meaning ascribed to it in 16 subsection (a-3). 17 (b) Until January 1, 1998, 25% of the tax revenue deposited 18 in the State Gaming Fund under this Section shall be paid, 19 subject to appropriation by the General Assembly, to the unit 20 of local government which is designated as the home dock of the 21 riverboat. Beginning January 1, 1998, from the tax revenue 22 deposited in the State Gaming Fund under this Section, an 23 amount equal to 5% of adjusted gross receipts generated by a 24 riverboat shall be paid monthly, subject to appropriation by 25 the General Assembly, to the unit of local government that is 26 designated as the home dock of the riverboat. From the tax 27 revenue deposited in the State Gaming Fund pursuant to 28 riverboat gambling operations conducted by a licensed manager 29 on behalf of the State, an amount equal to 5% of adjusted gross 30 receipts generated pursuant to those riverboat gambling 31 operations shall be paid monthly, subject to appropriation by 32 the General Assembly, to the unit of local government that is 33 designated as the home dock of the riverboat upon which those 34 riverboat gambling operations are conducted. 35 (c) Appropriations, as approved by the General Assembly, 36 may be made from the State Gaming Fund to the Department of HB1918 Enrolled - 16 - LRB094 02935 LRD 32936 b 1 Revenue and the Department of State Police for the 2 administration and enforcement of this Act, or to the 3 Department of Human Services for the administration of programs 4 to treat problem gambling. 5 (c-5) Before the effective date of this amendatory Act of 6 the 94th General Assembly and beginning 2 years after the 7 effective date of this amendatory Act of the 94th General 8 Assembly, after After the payments required under subsections 9 (b) and (c) have been made, an amount equal to 15% of the 10 adjusted gross receipts of (1) an owners licensee that 11 relocates pursuant to Section 11.2, (2) an owners licensee 12 conducting riverboat gambling operations pursuant to an owners 13 license that is initially issued after June 25, 1999, or (3) 14 the first riverboat gambling operations conducted by a licensed 15 manager on behalf of the State under Section 7.3, whichever 16 comes first, shall be paid from the State Gaming Fund into the 17 Horse Racing Equity Fund. 18 (c-10) Each year the General Assembly shall appropriate 19 from the General Revenue Fund to the Education Assistance Fund 20 an amount equal to the amount paid into the Horse Racing Equity 21 Fund pursuant to subsection (c-5) in the prior calendar year. 22 (c-15) After the payments required under subsections (b), 23 (c), and (c-5) have been made, an amount equal to 2% of the 24 adjusted gross receipts of (1) an owners licensee that 25 relocates pursuant to Section 11.2, (2) an owners licensee 26 conducting riverboat gambling operations pursuant to an owners 27 license that is initially issued after June 25, 1999, or (3) 28 the first riverboat gambling operations conducted by a licensed 29 manager on behalf of the State under Section 7.3, whichever 30 comes first, shall be paid, subject to appropriation from the 31 General Assembly, from the State Gaming Fund to each home rule 32 county with a population of over 3,000,000 inhabitants for the 33 purpose of enhancing the county's criminal justice system. 34 (c-20) Each year the General Assembly shall appropriate 35 from the General Revenue Fund to the Education Assistance Fund 36 an amount equal to the amount paid to each home rule county HB1918 Enrolled - 17 - LRB094 02935 LRD 32936 b 1 with a population of over 3,000,000 inhabitants pursuant to 2 subsection (c-15) in the prior calendar year. 3 (c-25) After the payments required under subsections (b), 4 (c), (c-5) and (c-15) have been made, an amount equal to 2% of 5 the adjusted gross receipts of (1) an owners licensee that 6 relocates pursuant to Section 11.2, (2) an owners licensee 7 conducting riverboat gambling operations pursuant to an owners 8 license that is initially issued after June 25, 1999, or (3) 9 the first riverboat gambling operations conducted by a licensed 10 manager on behalf of the State under Section 7.3, whichever 11 comes first, shall be paid from the State Gaming Fund to 12 Chicago State University. 13 (d) From time to time, the Board shall transfer the 14 remainder of the funds generated by this Act into the Education 15 Assistance Fund, created by Public Act 86-0018, of the State of 16 Illinois. 17 (e) Nothing in this Act shall prohibit the unit of local 18 government designated as the home dock of the riverboat from 19 entering into agreements with other units of local government 20 in this State or in other states to share its portion of the 21 tax revenue. 22 (f) To the extent practicable, the Board shall administer 23 and collect the wagering taxes imposed by this Section in a 24 manner consistent with the provisions of Sections 4, 5, 5a, 5b, 25 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the 26 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 27 Penalty and Interest Act. 28 (Source: P.A. 93-27, eff. 6-20-03; 93-28, eff. 6-20-03; 94-673, 29 eff. 8-23-05.) 30 (230 ILCS 10/23) (from Ch. 120, par. 2423) 31 Sec. 23. The State Gaming Fund. On or after the effective 32 date of this Act, except as provided for payments into the 33 Horse Racing Equity Trust Fund under subsection (a) of Section 34 7, all of the fees and taxes collected pursuant to subsections 35 of this Act shall be deposited into the State Gaming Fund, a HB1918 Enrolled - 18 - LRB094 02935 LRD 32936 b 1 special fund in the State Treasury, which is hereby created. 2 The adjusted gross receipts of any riverboat gambling 3 operations conducted by a licensed manager on behalf of the 4 State remaining after the payment of the fees and expenses of 5 the licensed manager shall be deposited into the State Gaming 6 Fund. Fines and penalties collected pursuant to this Act shall 7 be deposited into the Education Assistance Fund, created by 8 Public Act 86-0018, of the State of Illinois. 9 (Source: P.A. 93-28, eff. 6-20-03.) 10 Section 97. Inseverability. The changes made to existing 11 statutory law by this amendatory Act of the 94th General 12 Assembly are mutually dependent and inseverable. If any change 13 made to existing statutory law by this amendatory Act of the 14 94th General Assembly is held invalid, then all changes made to 15 existing statutory law by this amendatory Act of the 94th 16 General Assembly are invalid in their entirety. 17 Section 99. Effective date. This Act takes effect upon 18 becoming law.