SB0737ham001 96TH GENERAL ASSEMBLY

Executive Committee

Filed: 1/5/2011

09600SB0737ham001 LRB096 06805 ASK 44729 a

AMENDMENT TO SENATE BILL 737

AMENDMENT NO. ______. Amend Senate Bill 737 on page 16, by replacing lines 17 and 18 with "schools, parks, cultural institution facilities, museums within the municipality, and facilities at Navy Pier that are owned by the Metropolitan Pier and Exposition Authority."; and

on page 15, line 16, by replacing "Capital Projects" with "Gaming Facilities Fee Revenue"; and

on page 19, by replacing lines 3 through 8 with the following:

"The Committee shall consist of 11 members as provided in this Section. Four members shall be selected by the Governor, 3 members shall be selected by the Mayor of the City of Chicago; one member shall be selected by the President of the Illinois Senate; one member shall be selected by the Speaker of the House of Representatives; one member shall be selected by the Minority Leader of the Senate; and one member"; and

on page 20, immediately below line 4, by inserting the following:

"Section 1-67. Limitations on gaming at Chicago airports. Gaming in any Chicago airport must be (1) conducted beyond the Transportation Security Administration security checkpoints and (2) limited to slot machines, as defined in Section 4 of the Illinois Gambling Act."; and

on page 37, line 5, after "IV of", by inserting "Chapter"; and

on page 37, line 9, by replacing "2-92-420" with "Section 2-92-420"; and

on page 40, line 2, by replacing "(8)" with "(9)"; and

on page 40, line 8, by replacing "(9)" with "(10)"; and

on page 40, line 11, by replacing "(10)" with "(11)"; and

on page 40, immediately below line 17, by inserting the following:

"Section 90-3. The State Officials and Employees Ethics Act is amended by changing Section 5-45 as follows:

(5 ILCS 430/5-45)

Sec. 5-45. Procurement; revolving door prohibition.

(a) No former officer, member, or State employee, or spouse or immediate family member living with such person, shall, within a period of one year immediately after termination of State employment, knowingly accept employment or receive compensation or fees for services from a person or entity if the officer, member, or State employee, during the year immediately preceding termination of State employment, participated personally and substantially in the award of State contracts, or the issuance of State contract change orders, with a cumulative value of $25,000 or more to the person or entity, or its parent or subsidiary.

(b) No former officer of the executive branch or State employee of the executive branch with regulatory or licensing authority, or spouse or immediate family member living with such person, shall, within a period of one year immediately after termination of State employment, knowingly accept employment or receive compensation or fees for services from a person or entity if the officer or State employee, during the year immediately preceding termination of State employment, participated personally and substantially in making a regulatory or licensing decision that directly applied to the person or entity, or its parent or subsidiary.

(c) Within 6 months after the effective date of this amendatory Act of the 96th General Assembly, each executive branch constitutional officer and legislative leader, the Auditor General, and the Joint Committee on Legislative Support Services shall adopt a policy delineating which State positions under his or her jurisdiction and control, by the nature of their duties, may have the authority to participate personally and substantially in the award of State contracts or in regulatory or licensing decisions. The Governor shall adopt such a policy for all State employees of the executive branch not under the jurisdiction and control of any other executive branch constitutional officer.

The policies required under subsection (c) of this Section shall be filed with the appropriate ethics commission established under this Act or, for the Auditor General, with the Office of the Auditor General.

(d) Each Inspector General shall have the authority to determine that additional State positions under his or her jurisdiction, not otherwise subject to the policies required by subsection (c) of this Section, are nonetheless subject to the notification requirement of subsection (f) below due to their involvement in the award of State contracts or in regulatory or licensing decisions.

(e) The Joint Committee on Legislative Support Services, the Auditor General, and each of the executive branch constitutional officers and legislative leaders subject to subsection (c) of this Section shall provide written notification to all employees in positions subject to the policies required by subsection (c) or a determination made under subsection (d): (1) upon hiring, promotion, or transfer into the relevant position; and (2) at the time the employee's duties are changed in such a way as to qualify that employee. An employee receiving notification must certify in writing that the person was advised of the prohibition and the requirement to notify the appropriate Inspector General in subsection (f).

(f) Any State employee in a position subject to the policies required by subsection (c) or to a determination under subsection (d), but who does not fall within the prohibition of subsection (h) below, who is offered non-State employment during State employment or within a period of one year immediately after termination of State employment shall, prior to accepting such non-State employment, notify the appropriate Inspector General. Within 10 calendar days after receiving notification from an employee in a position subject to the policies required by subsection (c), such Inspector General shall make a determination as to whether the State employee is restricted from accepting such employment by subsection (a) or (b). In making a determination, in addition to any other relevant information, an Inspector General shall assess the effect of the prospective employment or relationship upon decisions referred to in subsections (a) and (b), based on the totality of the participation by the former officer, member, or State employee in those decisions. A determination by an Inspector General must be in writing, signed and dated by the Inspector General, and delivered to the subject of the determination within 10 calendar days or the person is deemed eligible for the employment opportunity. For purposes of this subsection, "appropriate Inspector General" means (i) for members and employees of the legislative branch, the Legislative Inspector General; (ii) for the Auditor General and employees of the Office of the Auditor General, the Inspector General provided for in Section 30-5 of this Act; and (iii) for executive branch officers and employees, the Inspector General having jurisdiction over the officer or employee. Notice of any determination of an Inspector General and of any such appeal shall be given to the ultimate jurisdictional authority, the Attorney General, and the Executive Ethics Commission.

(g) An Inspector General's determination regarding restrictions under subsection (a) or (b) may be appealed to the appropriate Ethics Commission by the person subject to the decision or the Attorney General no later than the 10th calendar day after the date of the determination.

On appeal, the Ethics Commission or Auditor General shall seek, accept, and consider written public comments regarding a determination. In deciding whether to uphold an Inspector General's determination, the appropriate Ethics Commission or Auditor General shall assess, in addition to any other relevant information, the effect of the prospective employment or relationship upon the decisions referred to in subsections (a) and (b), based on the totality of the participation by the former officer, member, or State employee in those decisions. The Ethics Commission shall decide whether to uphold an Inspector General's determination within 10 calendar days or the person is deemed eligible for the employment opportunity.

(h) The following officers, members, or State employees shall not, within a period of one year immediately after termination of office or State employment, knowingly accept employment or receive compensation or fees for services from a person or entity if the person or entity or its parent or subsidiary, during the year immediately preceding termination of State employment, was a party to a State contract or contracts with a cumulative value of $25,000 or more involving the officer, member, or State employee's State agency, or was the subject of a regulatory or licensing decision involving the officer, member, or State employee's State agency, regardless of whether he or she participated personally and substantially in the award of the State contract or contracts or the making of the regulatory or licensing decision in question:

(1) members or officers;

(2) members of a commission or board created by the Illinois Constitution;

(3) persons whose appointment to office is subject to the advice and consent of the Senate;

(4) the head of a department, commission, board, division, bureau, authority, or other administrative unit within the government of this State;

(5) chief procurement officers, State purchasing officers, and their designees whose duties are directly related to State procurement; and

(6) chiefs of staff, deputy chiefs of staff, associate chiefs of staff, assistant chiefs of staff, and deputy governors; .

(7) employees of the Illinois Racing Board; and

(8) employees of the Illinois Gaming Board.

(Source: P.A. 96-555, eff. 8-18-09.)"; and

by replacing line 15 on page 42 through line 12 on page 43 with the following: "8 members as follows:

(1) One member appointed by the President of the Senate to serve an initial term of 2 years.

(2) One member appointed by the Minority Leader of the Senate to serve an initial term of one year.

(3) One member appointed by the Speaker of the House of Representatives to serve an initial term of 2 years.

(4) One member appointed by the Minority Leader of the House of Representatives to serve an initial term of one year.

(5) Four members appointed by the Governor, 2 of whom are appointed to serve an initial term of one year and 2 of whom are appointed to serve an initial term of 2 years with one being designated as chair of the Board at the time of appointment."; and

on page 43, line 17, after "appointment.", by inserting "No member of the Board shall, at the time of his or her appointment or within 2 years before the appointment, hold elected office or be appointed to a State board, commission, or agency. All Board members are subject to the State Officials and Employees Ethics Act."; and

on page 43, line 23, after "recommendations", by inserting ", which must be approved by a majority of the Board,"; and

on page 51, line 21, by replacing "Fifty" with "Twenty-five"; and

on page 51, line 23, by replacing "fifty percent" with "75%"; and

on page 54, line 10, before "gaming", by inserting "electronic"; and

on page 54, line 16, by deleting "an owners licensee or"; and

on page 54, line 21, by deleting "owners license"; and

on page 55, line 17, by replacing "; or" with "."; and

on page 55, line 18, by deleting "owners license,"; and

on page 55, by deleting lines 25 through 26; and

on page 56, by deleting lines 1 through 5; and

on page 93, line 8, by deleting "any licensee or other person in"; and

on page 95, by replacing lines 9 through 12 with the following: "Illinois Gambling Act. In addition, all Board members and employees are subject to the restrictions set forth in Section 5-45 of the State Officials and Employees Ethics Act."; and

on page 197, line 6, after "to", by inserting "the animal sciences department of"; and

on page 204, by replacing lines 21 through 25 with the following:

"(b) Beginning on January 1 following the calendar yar during which an organization licensee begins conducting electronic gaming operations pursuant to Section 56 of this Act, the maximum credit amount an organization licensee shall be eligible to receive pursuant to this Section shall be equal to 50% of the credit awarded to the organization licensee in calendar year 2010."; and

on page 211, line 16, after "to", by inserting "the animal sciences department of"; and

on page 212, by deleting lines 23 through 26; and

on page 213, by deleting line 1; and

on page 213, line 3, by deleting "7.1,"; and

on page 213, by replacing line 5 with "5.3, 7.6, 7.7, 7.8, 7.9, 7.10, and 7.11 as follows:"; and

on page 217, by replacing lines 4 through 7 with the following:

""Slot machine" does not include table games authorized by the Board as a wagering device under this Act."; and

on page 217, by replacing line 16 with "cards by gaming riverboat patrons, excluding the total dollar amount of non-cashable vouchers, coupons, and electronic promotions redeemed by patrons upon a riverboat, in a casino, or at an electronic gaming facility."; and

on page 217, by replacing line 18 with "winnings paid to wagerers. "Adjusted gross receipts" shall not include the total dollar amount of non-cashable vouchers, coupons, and electronic promotions redeemed by wagerers upon a riverboat, in a casino, or at an electronic gaming facility."; and

on page 218, line 4, after "means" by inserting "a live gaming apparatus upon which gaming is conducted or that determines the outcome that is the object of a wager, including, but not limited to,"; and

on page 221, line 14, before "Horse Racing Act of 1975", by inserting "Illinois"; and

on page 225, by replacing lines 2 through 5 with "shall be subject to termination of employment. In addition, all Board members and employees are subject to the restrictions set forth in Section 5-45 of the State Officials and Employees Ethics Act."; and

on page 242, immediately below line 5, by inserting the following:

"(230 ILCS 10/5.3 new)

Sec. 5.3. Prioritization of video gaming operations.

(a) The General Assembly finds that the implementation of the Video Gaming Act and the commencement of video gaming operations authorized pursuant to that Act are no less important than the activities and operations authorized by this amendatory Act of the 96th General Assembly. It is the intent of the General Assembly that the implementation of operations authorized by the Video Gaming Act must not be delayed as a result of this amendatory Act of the 96th General Assembly.

(b) No licenses or additional gaming positions authorized in this amendatory Act of the 96th General Assembly shall be awarded or issued before the video gaming implementation date. For the purposes of this Section and this Act, "video gaming implementation date" means the date when at least 2,000 video gaming terminals authorized pursuant to the Video Gaming Act are operational and are being used to conduct video gaming with at least 1,000 video gaming terminals operating in Cook, Lake, McHenry, Kane, DuPage, and Will Counties, and at least 1,000 video gaming terminals operating in the remaining counties."; and

on page 242, lines 14 and 15, by deleting "or casino or electronic gaming operation"; and

on page 246, lines 4 and 5, by deleting "or casino or electronic gaming operation"; and

on page 246, lines 6 and 7, by deleting "or in any casino or electronic gaming operation"; and

on page 247, by replacing lines 10 and 11 with "subsection (a-3) of Section 13, or (v) when an owners licensee holding a license issued pursuant to Section 7.1 of this Act begins conducting gaming"; and

on page 250, lines 11 and 12, by replacing "a riverboat authorized in item (3) of subsection (e-10)" with "the ownership of the applicant"; and

on page 251, line 15, after "location", by inserting "that is no more than 10 miles away from its original location"; and

on page 252, line 18, by deleting "owners"; and

on page 253, by replacing lines 4 and 5 with "issued within 6 months after the video gaming implementation date, as defined in Section 5.3 of this Act. The fee for the"; and

on page 254, by replacing lines 3 and 4 with "be issued within 6 months after the video gaming implementation date, as defined in Section 5.3 of this Act. The fee for the"; and

on page 254, lines 12, 14, and 20, by deleting "owners" each time it appears; and

on page 255, by replacing lines 7 through 16 with the following:

"(e-16) The provisions of this subsection (e-16) apply only to an owners licensee of a license issued or re-issued pursuant to Section 7.1 of this Act and if the owners licensee was found preliminarily suitable or suitable by the Board prior to the effective date of this amendatory Act of the 96th General Assembly. The owners licensee shall pay (i) a $100,000 fee for the issuance or renewal of its license and (ii) an initial fee of $25,000 per gaming position in place of, and not in addition to, the initial fee under subsection (h) of this Section 7. Additionally, the owners licensee shall make a reconciliation payment on July 1, 2016 in an amount equal to 75% of the average annual adjusted gross receipts, minus"; and

on page 255, line 26, by replacing "subsection" with "Section"; and

on page 256, line 2, after "Board", by inserting "or their agents"; and

on page 256, line 11, by replacing "(e)" with "(e-16)"; and

on page 256, line 15, by replacing "subject to this subsection (e)" with "to the State or the Board or to their agents for consultants, licensing fees, up front fees, or other items"; and

on page 256, line 24, before "owners", by inserting "of an"; and

on page 257, line 11, by replacing "participants" with "positions"; and

on page 257, line 13, by replacing "participants" with "positions participants"; and

on page 257, line 15, by replacing "participants" with "positions"; and

on page 257, line 24, by replacing "participants" with "positions participants"; and

on page 258, line 15, by replacing "owner" with "owners"; and

on page 258, by replacing lines 20 through 25 with "receipts" means (i) the increase in adjusted gross receipts for the most lucrative 12-month period of operations over the adjusted gross receipts for 2012, multiplied by (ii) the percentage derived by dividing the number of additional gaming positions that an owners licensee had purchased pursuant to subsection (h) by the total number of gaming positions operated by the owners licensee. If"; and

on page 260, immediately below line 20, by inserting the following:

"(l) An owners licensee may conduct gaming at a temporary facility pending the construction of a permanent facility or the remodeling or relocation of an existing facility to accommodate gaming participants for up to 24 months after the temporary facility begins to conduct gaming. Upon request by an owners licensee and upon a showing of good cause by the owners licensee, the Board shall extend the period during which the licensee may conduct gaming at a temporary facility by up to 12 months. The Board shall make rules concerning the conduct of gaming from temporary facilities.

(m) All casinos, riverboats, and electronic gaming facilities shall consist of buildings that are certified as meeting the U.S. Green Building Council's Leadership in Energy and Environmental Design standards. The provisions of this subsection (m) apply to a holder of an owners license, casino operator license, or electronic gaming license that (i) begins operations on or after January 1, 2012 or (ii) relocates its facilities."; and

on page 260, by deleting lines 22 through 25; and

by deleting page 261; and

on page 262, by deleting lines 1 through 13; and

on page 264, line 26, by replacing "receiving" with "the video gaming implementation date, as defined in Section 5.3 of this Act, whether to"; and

on page 265, by deleting line 1; and

on page 265, line 3, by replacing "120 days" with "that time period"; and

on page 269, by replacing lines 12 through 16 with "1975. Any electronic gaming conducted at a permanent facility within 300 yards of the race track in accordance with this Act and the Illinois Horse Racing Act of 1975 shall have either an all-weather egress connecting the electronic gaming facility to the race track facility or, on days and hours of live racing, a complimentary shuttle service between the permanent electronic gaming facility and the race track facility and shall not charge electronic gaming participants an additional admission fee to the race track facility."; and

on page 270, by replacing lines 1 through 4 with the following: "the positions in an amount equal to 75% of the difference between its adjusted gross receipts from electronic gaming and amounts paid to its purse accounts pursuant to item (1) of subsection (b) of Section 56 of the Illinois Horse Racing Act of 1975 for the 12-month period of operations over which such difference was the largest, minus an amount equal to the initial"; and

on page 270, by replacing lines 20 through 26 with the following:

"(k) Subject to the approval of the Illinois Gaming Board, an organization licensee that has received an electronic gaming license under this Act and has operating control of a race track facility located in Cook County may relocate its race track facility as follows:

(1) the organization licensee may relocate within a 3-mile radius of its existing race track facility so long as the organization licensee remains in Cook County and submits its plan to construct a new structure to conduct electronic gaming operations; and

(2) the organization licensee may not relocate within a 5-mile radius of a riverboat if the owners license was issued prior to December 31, 2011.

The relocation must include the race track facility, including the race track operations used to conduct live racing and the electronic gaming facility in its entirety. For the purposes of this subsection (k), "race track facility" means all operations conducted on the race track property for which it was awarded a license for pari-mutuel wagering and live racing in the year 2010, except for the real estate itself. The Illinois Gaming Board shall make its decision after consulting with the Illinois Racing Board, and any relocation application shall be subject to all of the provisions of this Act and the Illinois Horse Racing Act of 1975."; and

on page 271, by deleting lines 1 through 16; and

on page 272, line 5, by replacing "an" with "the"; and

on page 277, immediately below line 17, by inserting the following:

"(230 ILCS 10/7.11 new)

Sec. 7.11. Issuance of new owners licenses.

(a) Owners licenses newly authorized pursuant to this amendatory Act of the 96th General Assembly may be issued by the Board to a qualified applicant pursuant to an open and competitive bidding process, as set forth in Section 7.5, and subject to the maximum number of authorized licenses set forth in subsection (e-10) of Section 7 of this Act.

(b) To be a qualified applicant, a person, firm, or corporation cannot be ineligible to receive an owners license under subsection (a) of Section 7 of this Act and must submit an application for an owners license that complies with Section 6.

(c) In determining whether to grant an owners license to an applicant, the Board shall consider all of the factors set forth in subsections (b) and (e-10) of Section 7 of this Act, as well as the amount of the applicant's license bid. The Board may grant the owners license to an applicant that has not submitted the highest license bid, but if it does not select the highest bidder, the Board shall issue a written decision explaining why another applicant was selected and identifying the factors set forth in subsections (b) and (e-10) of Section 7 of this Act that favored the winning bidder."; and

on page 292, line 8, after "Collinsville", by inserting "or the Village of Arlington Heights"; and

on page 292, line 11, after "located,", by inserting "except as otherwise provided in this Section,"; and

on page 292, line 17, by replacing "$.50" with "$0.50"; and

on page 293, immediately below line 4, by inserting the following:

"From the tax imposed under this subsection (c-5) from an electronic gaming facility located in the Village of Arlington Heights, $1 for each person who enters the electronic gaming facility shall be distributed as follows, subject to appropriation: $0.67 to the Village of Arlington Heights and $0.33 to the City of Des Plaines, except that the combined amount paid to the City of Des Plaines under this subsection (c-5) and subsection (b-5) of Section 13 of this Act shall not exceed $3,000,000 in a calendar year."; and

on page 296, line 24, after "imposed", by inserting "and ending on December 31, 2011"; and

on page 297, line 19, after "2012", by inserting "and ending on June 30, 2013"; and

on page 297, line 24, by replacing "a licensed owner" with "such licensee"; and

on page 298, line 24, by replacing "$75,000,000" with "$70,000,000"; and

on page 298, by deleting lines 25 and 26; and

on page 299, by replacing lines 1 through 2 with the following:

"16% of annual adjusted gross receipts in excess of $70,000,000."; and

on page 299, by replacing lines 8 through 14 with "General Assembly until June 30, 2015, an owners licensee shall receive a"; and

on page 299, line 17, after "$2,000,000.", by inserting "In determining whether or not to approve a relocation, the Board must consider the extent to which the relocation will diminish the gaming revenues received by other Illinois gaming facilities."; and

on page 300, line 23, by replacing "$75,000,000" with "$60,000,000"; and

on page 300, by deleting lines 24 and 25; and

on page 300, line 26, by replacing "32.5%" with "16%"; and

on page 301, line 1, by replacing "$100,000,000." with "$60,000,000.";

on page 301, by replacing lines 6 through 15 with the following:

"(a-7) From January 1, 2013 until January 1, 2023, if the total obligation imposed pursuant to either subsection (a-5) or (a-6) will result in an owners licensee receiving less after-tax adjusted gross receipts than it received in calendar year 2012, then the total amount of privilege taxes that such owners licensee is required to pay for that calendar year shall be reduced to the extent necessary, not to exceed 5% of adjusted gross receipts in that calendar year, so that the after-tax adjusted gross receipts in that calendar year equal the after-tax adjusted gross receipts in calendar year 2012. If pursuant to this subsection (a-7), the total obligation imposed pursuant to either subsection (a-5) or (a-6) shall be reduced, then the owners licensee shall not receive a refund from the State at the end of the subject calendar year but instead shall be able to apply that amount as a credit against any payments it owes to the State in the following calendar year to satisfy its total obligation under either subsection (a-5) or (a-6). For purposes of this subsection, "after-tax adjusted gross receipts" means for calendar year 2012, the adjusted gross receipts less privilege taxes paid to the State, and for subsequent calendar years, the adjusted gross receipts less privilege taxes paid to the State, then divided by the owners licensee's average number of gaming positions operating in that calendar year and then multiplied by the owners licensee's average number of gaming positions operating in calendar year 2012."; and

on page 305, line 11, after "Stickney", by inserting "or the Village of Arlington Heights"; and

on page 306, immediately below line 3, by inserting the following:

"From the tax revenue deposited in the State Gaming Fund under this Section, an amount equal to 3% of adjusted gross receipts generated by each electronic gaming facility located in the Village of Arlington Heights shall be paid monthly, subject to appropriation by the General Assembly, as follows: 67% to the Village of Arlington Heights and 33% to the City of Des Plaines, except that the combined amount paid to the City of Des Plaines under this subsection (b-5) and subsection (c-5) of Section 12 of this Act shall not exceed $3,000,000 in a calendar year."; and

on page 310, by replacing lines 14 and 15 with "June 25, 1999, and before December 31, 2011, or (3) the first riverboat"; and

on page 311, by replacing lines 7 and 8 with "issued after June 25, 1999 and before December 31, 2011, or (3) the"; and

on page 316, line 9, immediately after "riverboat", by inserting ", casino, or electronic gaming facility"; and

on page 358, immediately below line 3, by inserting the following:

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